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SCMP Reporter

PRIME Minister John Major last night resigned as leader of the Conservative Party in a devastating move aimed at forcing a leadership contest and ending months of factional fighting which has brought his Government to its knees.

  Mr Major said he would stand again for election as leader to see off once and for all the rebels who have opposed him every step of the way over Britain's growing links with the European Union.

  'It is time to put up or shut up,' said Mr Major in a remarkable, and totally unexpected, tactical gambit.

 His astonishing move came after a Cabinet meeting, when, it is understood, each member swore not to oppose Mr Major.

 He has called the hand of the rebels who had expected to force a leadership challenge in November, constitutionally the only time they could oppose a sitting leader. And by resigning now, Mr Major has taken them unawares.

 The so-called Euro-sceptics had been expected to raise the necessary number of MPs to force him to stand down after the first round of any contest in November.

 Last night, they were still expected to oppose him. But who would lead their charge was not clear, although the name of former Chancellor of the Exchequer Norman Lamont, who has called on Britain to consider withdrawing entirely from the EU, was being widely mentioned.

 In yesterday's hurriedly called press conference, Mr Major said much had been achieved in the five years since he became Prime Minister.

 'But for the last three years I have been opposed by a small minority in our party,' he said.

 'During those three years there have been repeated threats of a leadership election. In each year they turned out to be phoney threats. Now the same thing is happening in 1995.

 'I believe it is in no one's interests that this continue until November. It undermines the Government and it damages the Conservative Party. I am not prepared to see the party I care for laid out on the rack like this any longer.'  Mr Major disclosed that he had tendered his resignation to Sir Marcus Fox, chairman of the backbench 1922 committee, yesterday afternoon and asked him to set in motion the machinery for the election.

 'I have confirmed to Sir Marcus that I shall be a candidate in that election,' he said. 'If I win I shall continue as Prime Minister and lead the party into and through the next general election.

 'Should I be defeated, which I do not expect, I shall resign as Prime Minister and offer my successor my full support.

 'The Conservative Party must make its choice. Every leader is leader only with the support of his party and that is true of me as well and that is why I am no longer prepared to tolerate the present situation.'  Mr Major looked grim faced as he spoke - few if any had expected him to take the option of forcing a challenge so soon.

 Sir Marcus said nominations for the election would close at noon next Thursday, with the ballot - confined to Conservative MPs - held the following Tuesday, July 4.

 If the opposition looked unbeatable at that point, Mr Major might be forced to stand down - as Margaret Thatcher was in 1990.

 The big guns like Michael Heseltine, President of the Board of Trade and on the party's centre-left, would be expected to come into any second round, perhaps facing a right-winger like Employment Secretary Michael Portillo.

 The election should be over by the middle of next month. If Mr Major survives, he will have enough time for a full Cabinet reshuffle before the summer recess and will be able to spend that time rebuilding party fortunes with the rebellion over at last.

 Labour leader Tony Blair said: 'The Prime Minister has now accepted that the Conservative Party is not fit to govern. This election cannot give Britain the change in direction it needs, only a general election can do that.'  Foreign Secretary Douglas Hurd backed Mr Major's 'brave step by a brave man'.

 The first Euro-rebel to comment, Teresa Gorman, said she believed the party whips had calculated no challenger would come forward. But she added: 'I hope a candidate will come forward.' 



PM stands in July poll to decide who heads Conservatives