World

Blair Reshuffles British Cabinet

October 11, 1999 / 12:27 PM EDT / AP

British Prime Minister Tony Blair shuffled his Cabinet Monday, reportedly handing the job of running Northern Ireland to a controversial ally who resigned as trade secretary last year after failing to disclose a huge loan.

Peter Mandelson, 45, and Northern Ireland Secretary Mo Mowlam, 50, each entered the prime minister's 10 Downing Street office separately during the morning.

Television and radio stations, quoting official sources, said Mandelson would succeed Mowlam. Formal announcements were scheduled later Monday.

Northern Ireland's main Protestant party quickly welcomed the reported change, but the largest Catholic party said it would be sorry to see Mowlam go.

The shuffle was the first significant change in Blair's 22-member Cabinet since the Labor Party won a landslide election victory over the Conservatives in May 1997.

The urbane Mandelson epitomizes Blair's centrist New Labor policies and was key to masterminding the Labor victory.

Mandelson had a meteoric career until newspapers discovered in December that he had failed to disclose a $615,500 loan from a government official whose business affairs Mandelson's department was investigating.

Mandelson used the money to buy a house in London's fashionable Notting Hill district.

The Protestant, pro-British Ulster Unionist Party has accused Mowlam of favoring Catholic-based parties, including being too lenient with the Irish Republican Army's political ally, Sinn Fein.

Â"There will be huge relief, particularly among unionists, that there is a change in secretary of state at this stage,Â" Ken Maginnis, a senior member of Protestant Ulster Unionist Party, said of Mandelson's reported appointment.

Brid Rodgers of the moderate Catholic Social Democratic and Labor Party said Mowlam did an excellent job.

Â"She had a new, different and very effective approach and there will be disappointment she is going. She did a difficult job and tried to be fair all round,Â" Ms. Rodgers said.