PORTILLO PREPARED TO START DEBATE ON CANNABIS

Michael Portillo last night said that as Tory leader he would start a
debate on the legalisation of cannabis, saying the arguments for de-
criminalising the drug were "finely balanced".

In a highly risky political move that could alienate Tory members, the
shadow chancellor struck out from his four rivals for the party
leadership, saying the Conservatives should be the party of "choice
and greater freedom".

Although he stopped short of saying he favoured legalisation, he said
the Tories should be a party that was "open to new ideas".

Politicians needed to debate issues that interested voters and
legalisation of cannabis was one such issue. He added that the
arguments on both sides were "quite finely balanced".

Mr Portillo made his remarks during a BBC Question Time debate with
all five leadership hopefuls. While most accepted the case for a
debate, all the other contenders signalled their instinctive
opposition to legalisation.

His comments came as Peter Lilley, former deputy leader, became the
most senior Tory to call for legalisation. Writing in The Daily
Telegraph, he said it should be sold in small quantities in licensed
premises to over-18s. He said it should be taxed and carry a health
warning and cultivation for personal use should also be legalised, he
added.

Yesterday William Hague defended his record as Conservative leader,
saying the party was in much better shape than when he had inherited
it. In his first interview since announcing his intention to stand
down, Mr Hague said he had "laid some strong foundations for the
future for the party".

He told his local newspaper, the Darlington and Stockton Times: "The party's
chances for the next election will be much better than ever they were for the
last election, partly because the government will be much older, but also
over a
lot of things I have sorted out in the Conservative party, the way its
organisation works and its finances.

"Fours years ago, when I took over, the party (was) split down the
middle over Europe and we have pretty much resolved that and moved
on." He said the Tories' election campaign had been "much more
cohesive and united" than the 1997 one led by John Major.

Mr Hague also made clear he intended to remain in parliament and would
fight his seat at the next election. He said he was particularly keen
to campaign on rural issues and to hold the government to account over
the foot-and-mouth epidemic.

His interview coincided with the closure of nominations in the contest
to succeed him. The candidates in next Tuesday's first ballot of MPs
are Mr Portillo, Michael Ancram, Kenneth Clarke, David Davis and Iain
Duncan Smith.

The MPs' ballot will conclude by July 17 at the latest, with the top
two candidates being put to a vote of all 330,000 party members.