DOWNING STREET intervened last night to try and prevent a fresh outbreak of Tory civil war over Europe. But it seemed a forlorn hope, as a junior Foreign Office minister accused the Chancellor, Mr Kenneth Clarke, of being "out of line" with government policy over the single European currency.
Sir Nicholas Bonsor, a noted Eurosceptic, said weekend remarks by Mr Clarke had undermined attempts to restore party unity in the run up to next month's party conference. The Prime Minister, Mr Major, was reported to be furious with Mr Clarke following his assertion that it would be "pathetic" were Britain to refuse to join in the first wave for a single currency, and then decide to join later.
Following the outbreak of hostilities at ministerial level, Downing Street insisted. "The government has an agreed policy on when a decision on a single currency should be taken. Many issues of importance to the UK remain to be resolved. These will affect the UK whether we are in a single currency or not and it is right that Britain should play its full role in the negotiations."
The sources added. "The Prime Minister has made it clear that all must adhere fully to the position agreed by cabinet. The Chancellor fully supports this policy and believes his views have been misrepresented."
Following Downing Street's intervention, Sir Nicholas said he had responded to newspaper reports of the Chancellor's remarks and accepted this had been mistaken.
But it seemed doubtful whether this exposure of internal government divisions could be so easily papered over. A pro Europe MP, Mr Hugh Dykes, suggested Sir Nicholas should "consider resigning".
The Home Secretary, Mr Michael Howard, meanwhile, conspicuously declined to dismiss media reports of cabinet divisions, and gave Mr Clarke a distinctly underwhelming endorsement.