BRUSSELS - The BSE crisis returned to haunt Britain's relations with Europe on Tuesday as the discovery of more illegal UK beef in Germany frustrated latest attempts to get a worldwide export ban eased. A two-day meeting of EU farm ministers had been due to focus on rural development but a discussion on BSE (bovine spongiform encephalopaty) on the second day brought Britain's Farm Minister Jack Cunningham into direct conflict with the German delegation. "There was a very strong negative reaction from Germany," he told reporters after the meeting. Cunningham was updating his European Union counterparts on efforts made by the Britain since July in clamping down on fraudulent exports of beef, in breach of an 18-month-old ban. But Tuesday's announcement that tens of tonnes of suspected British beef had been discovered in Germany brought a hostile response to his efforts. (Reuters earlier erroneously quoted a European Commission spokesman as saying "tens of thousands of tonnes" had been discovered.) French farm m

inister Louis le Pensec said the embargo on exports had to be respected and that "any decision on lifting the ban would be premature." The European Commission said it had asked German federal authorities to close down one German company by Friday and step up controls at others after its inspectors visited the sites between September 8-12 and found evidence of fraud. "There are several cases. One is closure. For the others, an imprecise number, it's to reinforce controls," a Commission spokesman said after Consumer Affairs Commissioner Emma Bonino announced the action. Bonino told Reuters it was unclear whether beef was intended for the domestic or international market, but it was clear that much of it was destined for Russia. A German health ministry spokeswoman in Bonn said it had received no specific order to close down a company but had been told that authorities might need to take "short-term" measures. Last week the European Commission decided to open legal proceedings against Britain for failing to con

trol its exports after beef, some of which had been disguised as being of Belgian origin, was found in other member states this summer. The "infringement procedure" could go as far as the European Court of Justice, but this is thought to be unlikely. In Brussels, Cunningham said he had stressed Britain's determination to stamp out fraud and called on other EU members to coordinate action on what was an international problem, and for which they had to share some of the reponsibility. "I will take tough action against illegal exports," he said. "But there are willing buyers elsewhere in Europe." The news of more illegal exports will be disappointing to Britain's livestock farmers, who last week had their hopes raised of an early easing of restrictions after a favourable scientific committee opinion. The independent, but influential, Scientific Veterinary Committee said exports of British beef could resume from the UK where there was a computerised system to trace animals and make sure none had come into any co

ntact with BSE. The opinion has been interpreted as favouring farmers in Northern Ireland -- the only place where there is such a system. It is not yet clear what tack Britain will take, and on this politically-sensitive issue -- Scottish farmers are likely to feel aggrieved by any piecemeal approach -- the question of who makes the next move was also disputed. Cunningham said the British position was unchanged and he was still seeking a solution "for the whole of the UK". But he had not ruled out a partial lifting if that turned out to be the only option. "Half a loaf is better than no bread at all," he said. He added it was up to the European Commission to take the next step and Britain would reply accordingly. But EU Farm Commissioner Franz Fischler said after the talks, he was waiting on a proposal from London.