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Britain's Queen Elizabeth stands in Buckingham Palace with Prince Philip, Spain's King Felipe and Queen Letizia as they arrive after a ceremonial welcome, in central London, Britain July 12, 2017. REUTERS/Yui Mok/Pool

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LONDON (Reuters) - Spain's King Felipe said on Wednesday he was confident that Spain and Britain could work towards an acceptable arrangement over Gibraltar, a British territory which Spain wants back.

Addressing both houses of parliament in London, Felipe said both countries had overcome "estrangements, rivalries and disputes" in the past.

"I am certain this resolve to overcome our differences will be even greater in the case of Gibraltar, and I am confident that through the necessary dialogue and effort, our two governments will be able to work towards arrangements that are acceptable to all involved," he said.

(Reporting by Kylie MacLellan, writing by Elizabeth Piper)

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