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John Major calls the currency "hard Ecu"

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British Chancellor John Major is proposing a new European currency which would circulate alongside existing national currencies.

Mr Major's plan, to be announced in a speech to German businessmen later, is a response to European Commission President Jacques DeLores' more radical proposal for a single currency and European bank.

The Conservative Government is sceptical about full monetary union and regards this new proposal as a way of putting forward a genuine alternative.

It is envisaged that the currency, which Mr Major calls the "hard Ecu", would be used initially by businesses and tourists, and managed by a new European monetary fund.

Although the proposal does not rule out the abolition of national currencies, it represents a more cautious substitute to Mr DeLores' plan for economic unity.

"Without a doubt it's a victory for common sense."Euro-sceptic Bill Cash MP said.

Mr Major said: "What we're seeking to do is to provide a currency that those who wish to use it could use, either for business transactions or personal transactions, without going down the route of a single currency across the whole of Europe, which we think has enormous difficulties and enormous dangers too."

The announcement follows Prime Minister Margaret Thatcher's comments earlier this week that she did not believe a commitment to a single currency would be made in her lifetime.

Reaction from Conservative MPs was mixed.

From the Euro-sceptic wing of the party, Bill Cash MP said: "Without a doubt it's a victory for common sense, a victory for the prime minister and for the cabinet, and a victory for Britain."

But others were disappointed by the plan's caution, fearing that it might be perceived as another delaying tactic by Britain's European neighbours.

Hugh Dykes MP said: "It seems a pity that always when these proposals are coming forward we're always holding back".

Shell ships use water cannons against Greenpeace activists on board the rig

But the company's decision, which came just hours before the 14,500-tonne structure was due to besubmergedunder the sea off the west coast of Scotland, has left the government in an embarrassing situation.

Just yesterday in the House of Commons, Prime Minister John Major was defending the plans to dispose of the structure 6,000ft (1,828m) under the sea.

But a spokesperson for environment group Greenpeace, which has been campaigning against the proposals for several weeks, hailed Shell's decision a victory.

"It is a victory for us but more importantly it is a victory for all the people who campaigned against the dumping," she said.

Marine pollution

Greenpeace activists claim that dumping the structure under the sea would release highly toxic chemicals into the water and cause widespread marine pollution.

Its ship, the Altair, has been shadowing tugs pulling Brent Spar to its North Atlantic dumping ground since it set off last week.

Just three days ago two activists boarded the installation from a helicopter and vowed to remain "until the death" in an attempt to prevent the deep-sea disposal going ahead.

Thousands of British motorists have also boycotted the company's filling stations in protest and Shell was forced to call off its environmental awards ceremony due to be held on 21 June.

In a statement Shell UK denied that Greenpeace's actions had forced the U-turn, but conceded that the company had found itself in an "untenable position" due to widespread objections from international governments.

The statement said: "Shell UK has decided to abandon deepwater disposal and seek from the UK authorities a licence for onshore disposal.

"Shell UK Ltd still believes that deep water disposal of the Brent Spar is the best practicable environmental option, which was suported by independent studies."

Michael Heseltine, President of the Board of Trade, criticised the company for relenting.

He said: "I think they should have kept their nerve and done what they believed was right."

The fate of the concrete and steel Brent Spar rig which, for 15 years, served as a crude oil storage tank and loading buoy, is now unknown.

But energy minister Tim Eggar warned that the government would not automatically give permission for it to be broken up on land.

He said: "If Shell wishes to propose an alternative course of action the government will consider it.

"That proposal will have to contain solutions to the problems which led to the identification of deep sea disposal as the best practicable environmental option.

"Until solutions acceptable to the government departments concerned have been found, no agreement on abandonment will be available."

oil rig :（石油鉆塔）

submerge:to cover with water; inundate（浸沒；淹沒）