Peter Mandelson, architect of Blair's revitalised `New Labour' party, quit as trade and industry minister last week after admitting he had taken a large loan from Geoffrey Robinson, a junior minister whose business affairs were being investigated by Mandelson's ministry.

Mandelson was also the party's chief `spin doctor', concerned with putting the best face on Labour's policies, as well as its difficulties.

Newspapers led with various aspects of the story, but agreed that Blair himself was under pressure to clean up the image of a government that came to power promising to end the `sleaze' that bedevilled the previous Consarvative administration.

The Left-leaning Guardian quoted senior ministers as saying the government wouldbe making a ``New Year resolution to tip the balance away from style and spinafter the biggest crisis since its election victory 18 months ago.''

The Centre-Left Independent agreed, saying that senior cabinet members wanting ``to get rid of the froth of the spin doctors'' are to challenge Blair over the direction he intends to take the government after Mandelson's resignation.

Other papers zeroed in on Chancellor of the Exchequer Gordon Brown, said to be not totally innocent in the affairs of both Mandelson and Robinson, who also resigned last week.

The Financial Times said that millionaire Robinson secretly financed or arranged the legal and financial preparations for the government's most important early initiatives, including its windfall tax and the overhaul of the corporate taxation system.

And The Express said Blair was under growing pressure to bring Brown and his advisers to heel in an attempt to end the bitter feuding which led to the fall of Mandelson.

The Right-wing Daily Telegraph meanwhile demanded why Blair waited six days to act afterlearning of Mandelson's conflict of interest.

``Tony Blair came under fire for his handling of the resignation of Peter Mandelson yesterday after being forced to admit that he had delayed for almost a week taking action that would cut short the ministerial career of his closest political friend and adviser,'' it said.

In an interview with the BBC broadcast on Sunday, Blair said he had been preoccupied with the US and British Air raids on Iraq when the story broke.

Meanwhile The Times said Blair had asked Mandelson to operate as his special envoy in building a strong political alliance with Germany.

Speculation has mounted that Mandelson might make a swift return to politics, either as a candidate for the new position of mayor of London, or as the chief spin doctor for a pro-euro government campaign.

But such predictions appeared premature with the rash of fresh revelations about both Mandelson and Robinson.

Several papers reported on Sunday that Mandelson had taken a free flight with anAmerican underwear millionaire and failed to declare it to parliament.

The Sunday Times said Robinson had also offered loans to three other Cabinet ministers and a senior government official.

And finally The Sunday Telegraph said Robinson had funded Brown's office to the tune of tens of thousands of pounds before the May 1, 1997, general election.