7 JANUARY 1860, Page 1

The operations of the Spaniards in Morocco continue to be

more interesting to the garrison of Gibraltar and the Moritos than to any one else. The occupants of the Rock ought to be thankful to that twist in Spanish policy which gave them so exciting a theme for conversation as actual war within ten miles of Europa point. As yet the Spanish army has made no progress. It is in possession of the territory demanded from the Moors, and has fortified that territory by formidable lines. The army is led to believe that it will have to march on Tetuan, and such may be the next operation, but it also may be that the Spanish Cabinet hope to finish war with the occupation of the coveted territory, and that a cession of it would be taken as a basis of peace. If so, the probability is that the hope will be disappointed, and that the arms of Spain must accomplish something with the sword as well as the spade before peace is possible. The Moors, considering their inferiority in arms and discipline, have behaved admirably, and no doubt they will inflict heavy losses on the Spanish army should it march towards Tetuan. The newest theory of the war • is that Spain, having some money in hand, thinks it a better way to retrieve character and credit to spend it in a war with the Moors than to spend it in payins her debts. This is a thoroughly Iberian determination.