The British government has announced a rescue plan for the projected high-speed rail link between London and the Channel Tunnel to continental Europe.

The eight-billion-dollar project, which ran into financial difficulties, is to be built in two stages.

Construction is to begin later this year on the first stage from the tunnel to the eastern outskirts of Greater London, which is due to be ready in the year 2003.

The rest of the link to St Pancras in central London is to be completed by 2007.

There is also to be a high speed rail service to Paris from Heathrow airport.

At present Channel Tunnel trains, which can reach speeds of three hundred kilometres per hour in France and Belgium, are forced to travel at reduced speeds on commuter lines in England.