THE British government said last night it would suspend at midnight the letter monopoly enjoyed by Britain's Royal Mail since it issued the world's first postage stamp in 1840, after a postal union called five new strikes.

Trade and industry secretary, Mr Ian Lang, said that for one month private companies would be able to compete with the state owned post office for mail deliveries costing under £1.

If the strikes continued, he added, he would be ready to extend the suspension for a further three months.

The government's decision followed an announcement by the Communication Workers Union that it was calling its members: out for five 24 hour strikes in the next month, the first today, in a dispute over working practices.

Towards the end of July it appeared the dispute, which had already resulted in a number of short work stoppages, had been solved. But the union's executive rejected a peace deal thrashed out with management by its negotiators.

"Today's announcement by the union that it intends to resume strike action leaves me with no alternative but to seek as far as possible to protect the interests of the business and domestic customers throughout the country," Mr Lang said.

"I have decided to suspend the monopoly for one month, and I very much hope it will prove possible to resolve the outstanding issues within that time," he added in a statement.

The Conservative government has been looking at the possibility of privatising most of the Post Office's functions, but drew back from introducing a bill this year because of opposition from some of its own members of parliament.

The suspension of the monopoly will strengthen the resolve of ministers who want a privatisation pledge included in the ruling party's manifesto for the next election, expected to be held next April or May.

Industry analysts believe private companies will be wary about offering postal services to the general public given the massive resources needed and the probability that the monopoly suspension will be brief.