European diplomats based in the UK say the British government is stepping back from its threat to leave the EU without a trade deal if negotiations break down.In private, say diplomats, UK officials recognise the “havoc” that this would cause, and have come to regret the threat to turn the UK into a deregulated offshore tax haven, implicit in Theresa May’s Lancaster House speech in January, when she warned that “no deal for Britain is better than a bad deal”.They claim the conciliatory signals from UK government officials are an attempt to lower the temperature asthe prime minister prepares to send the UK’s article 50 letter on Wednesday, triggering the start of two years of intensive Brexit negotiations.(guardian)…[+]