Olive branch offered to Tory euro lobby

The Conservative party leader, Mr William Hague, has offered an olive branch to his party's proEuropeans on the eve of the launch…

The Conservative party leader, Mr William Hague, has offered an olive branch to his party's proEuropeans on the eve of the launch of a cross-party group campaigning for the single currency.

In a television interview yesterday, Mr Hague called on local party activists not to deselect two prominent pro-European MPs.

He also insisted he had effectively reached a truce over Europe with former Cabinet ministers Mr Michael Heseltine and Mr Kenneth Clarke, amid fears that they are considering joining the new pressure group, Business for Europe, later in the year.

Mr Heseltine and Mr Clarke are believed to have agreed to stay loyal to Mr Hague over their support for the single currency until after the European Parliament elections in June.

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Mr Hague's remarks may be seen as an effort to keep them on board for longer. He told BBC 1's On the Record there was no "formal truce" with Mr Heseltine and Mr Clarke: "But I think there is a mutual respect.

"I say it doesn't stop people being a Conservative because they take a different view on one policy, and they recognise that I have resolved what the party policy is going to be."

Mr Hague also said he did not want local constituency parties to deselect former ministers Mr David Curry and Mr Ian Taylor, who quit his front-bench team over his stance on Europe. Mr Hague has ruled out joining the euro for the duration of this and the next Parliament. British Airways chairman Lord Marshall will today launch Britain in Europe, a group of businessmen, politicians and trade unionists which lists former Tory chancellor, Lord Howe, as an "observer" on its board.

The Tory MPs singled out by Mr Hague have all welcomed the announcement by the Prime Minister, Mr Tony Blair, of a National Changeover Plan to prepare Britain for ditching the pound.

It emerged yesterday that two breakaway Tory MPs are considering a "job share" if they manage to win one seat in the European Parliament elections.

Mr John Stevens and Mr Brendan Donnelly have set up the Pro-Euro Conservative Party and would need about 9 per cent of the vote to win one seat in the South-East region under the new proportional representation "list" system.