In Paris officials expressed relief that at last Britain was talking which

In Paris, officials expressed relief that, at last, Britain was talking, which was "encouraging".France and Germany proposed in November that decisions on whether groups within the EU can share powers without the rest should be taken by qualified majority vote among member states. Until now Mr Major has insisted that Britain must be able to veto any attempt by other nations to develop common policies without Britain, to ensure that it is not permanently isolated.Comments made by Mr Major in recent days, and outline proposals presented to the Dutch presidency, have given Britain's partners reason to hope that Britain may relax its stand on the use of the veto when it comes to "flexibility".The Prime Minister has not said he would relinquish the right to veto such moves. However, in recent days, he has spoken out so enthusiastically in favour of a "flexible" Europe that his partners sense a concession. There are signs that France and Germany are also willing to compromise, allowing countries to veto moves towards "flexibility" where it can be argued that their national interest is jeopardised.The Prime Minister has signalled that he is particularly open to his partners sharing greater policy-making in areas of immigration and criminal justice. His comments were enough yesterday to breathe new life into negotiations in Amsterdam on EU treaty reform.While several of Britain's partners are rejoicing at any sign of British goodwill, in other quarters Mr Major's sudden display of enthusiasm for allowing Europe to pool powers at different paces is being viewed with scepticism. Pro-European critics in Britain describe the initiative as a risky ploy to buy off Tory Euro-sceptics in the run-up to the election.Labour, which is likely to be in power when the next treaty is signed later this year, is determined to maintain Britain's veto over the rights of other countries to pool sovereignty in core groups. Such moves could leave Britain isolated without influence at Europe's "top table" Labour says.Within the European Commission the prospect of building a flexible multi- speed Europe is sparking an increasingly fierce debate.

Although flexibility could allow countries to continue to make progress towards greater integration, it could also bring about greater fragmentation of the union.Flexibility would simply be unworkable in many EU policy areas, such as transport and the environment. The commission is also afraid that the single market could be jeopardised, and countries might start asking for exemption from unpopular state-aid or competition policies.The EU has already become increasingly "flexible", as different member states - particularly Britain - have recoiled from certain policy proposals."Flexibility may be a tempting idea for Mr Major because it appears to let Britain of the hook but EU purists don't like it at all," a senior commission official said.In the new treaty negotiations, however, several states see flexibility as the key to progress.Barriers to the new multi-speed EuropeAny new EU rules on flexibility must take account of the following points:1) What areas of EU policy can the fast-stream pursue? Would areas with obvious cross-border implications, such as the single market, transport and environment be excluded?2) Who should pay for policies pursued under this arrangement? Will those left in the slow lane be liable for any costs?3) Will those left out be able to join later if they change their minds?4) Will those left out have any say over policies taken by the fast-streamers? For example, if an inner core decide to set up their common police force, would those outside have any influence over that force?5) Should there be a general clause in the treaty setting out procedures for pursuing flexibility? Or should decisions to go "multi-speed" be taken on a case by case basis?6) How will Europe's institutions respond to this multi-speed decision making. How can the European Court's jurisdiction be varied to take account of different "core groups"?7) Should it be for the commission to propose policies be shared by a particular group of countries? Or should it be for member states to make the suggestion?8) Europe is trying to get closer to the citizen. But in a multi-speed Europe, how will the citizen understand what on earth is going on?. The government of President Kim Young Sam yesterday showed signs of stepping back in a three-week-old labour dispute, but soldiers were being mobilised to run public services as South Korean workers prepared themselves for the first day of their biggest ever national strike.

Ceremonies marking the beginning of the strike were held at midnight last night in 900 firms nationwide. From 4am today, members of the officially recognised Federation of Korean Trade Unions were to embark on a range of stoppages from full strikes to work to rule. Tomorrow they will be joined by the unauthorised Korean Confederation of Trade Unions, and union leaders anticipate a turn-out of one million workers in hospitals, hotels, shipyards, television companies, public transport, taxis, telecommunications and banks. It will be the first time since 1987 that both blue- and white-collar workers have united, when widespread civil unrest forced the then military dictatorship to call democratic elections.Two and a half thousand soldiers were being prepared to run trains and telecom offices yesterday, and there were further confrontations between trade unionists and police outside Myongdong Roman Catholic cathedral in Seoul, where seven strike leaders are seeking sanctuary against arrest warrants. A few dozen banking and shipyard workers shouted anti-government slogans at riot police blocking their route to the cathedral. But the demonstration lacked the ferocity of previous encounters, and the strikers eventually dispersed of their own accord.Twenty-thousand workers in the Hyundai motor plant rallied in the city of Ulsan. Speaking in Seoul, the strike leader, Kwon Young-gil said: "President Kim must decide what is more important: saving his face or the national economy."A senior figure in the New Korea Party (NKP), Lee Hong-koo, made a highly symbolic visit to the cathedral yesterday morning, and met the Cardinal of Seoul, Stephen Kim, in an apparent attempt to soften the uncompromising image which the government has so far projected during the dispute.The argument is about two legislative revisions - to a labour act and to a national security law, which were railroaded through the National Assembly in a secret session of NKP representatives on Boxing Day.

The former gives new freedom to companies to lay off workers; the latter expands the powers of the Agency for National Security Planning, the former Korean CIA.The unions are refusing to talk to the government until the bills are scrapped, along with the warrants for the arrest of their leaders. The visit of Mr Lee, the chairman of the NKP and in the running to succeed President Kim in elections in December, may represent a first attempt by the government to find an elegant way of stepping down.Much now depends on the effectiveness of this week's general strike. Much of the action taken so far appears to be more symbolic than damaging, and while the unions put the numbers of strikers yesterday at 195,000, the government estimate was 65,000. A large turn-out today and tomorrow will put renewed pressure on President Kim, but also risks alienating the public which so far appears moderately sympathetic to the strikers.Significantly, the Seoul stock exchange has been virtually unaffected by the disturbances, and the share price of the beleaguered Hyundai Motor Corporation actually rose by 1.79 per cent yesterday.. The Dalai Lama plans to visit Taiwan in a move which is certain to infuriate Peking. Chin Hsin, head of the island nation's Chinese Buddhist Association, said yesterday: "We will arrange one or two speeches and he will visit some temples. He will have absolutely no official contacts or activities." Mr Chin said the visit could take place as soon as March.

Any such trip would be seen by Peking as a double affront to the integrity of Chinese sovereignty. China's government considers the exiled Tibetan leader to be a "splittist" while also habitually accusing Taiwan of seeking de facto independence through its diplo- matic links. However, any visit will also have to be handled carefully by Taipei which, like Peking, considers Tibet to be an inalienable part of China. The Dalai Lama will only be welcomed as a religious and not a political figure.Peking will grimace at another meeting today when Taiwan's vice-president, Lien Chan, visits the Vatican and sees the Pope. China has already criticised this meeting, saying that it would be part of Taiwan's attempts to "create two Chinas".With 1997 seeing the return of Hong Kong to the mainland, China's leaders are becoming increasingly aggressive in trying to undermine Taiwan's minimal diplomatic identity.