Farmers on the North York Moors were today "holding their breath" as they faced the grim possibility of a devastating cluster of foot and mouth cases like the one in the "Settle Rectangle".

There are fears that the outbreak is marching southwards and westwards from previous cases near Yarm and Whitby, with the confirmation over the weekend of two new cases at Westerdale, in the heart of the moors.

Derek Watson, chairman of the North Yorkshire branch of the National Farmers' Union, said there were "grave concerns" among his members, particularly on the north side of Ryedale.

"It keeps getting further and further south, and ever nearer to the large pig populations of East Yorkshire and the big livestock areas of Rosedale, Bransdale and Farndale," he said.

"It would be an absolute tragedy if it reached this far, and farmers are holding their breath at the moment."

Mr Watson said the worst case scenario was a repeat of the Settle cluster, which has seen foot and mouth surge through about 70 farms in a matter of weeks.

"Everyone is hoping we won't see another Settle," he said.

"It would be devastating for agriculture and the tourism industry."

Mr Watson said the whole nature of the moors, which was adapted to sheep farming, could be in the balance if the disease continued to spread.

Alan Abrahams, partner in the Moorlands Hotel, at Castleton, only miles from the new outbreaks - at High House Farm and West House Farm - said his views on the conflict between the needs of tourism and agriculture had now changed.

"A month ago I would have said we need the footpaths open again," he said. "But now we have it here and they will have to go into close-down mode."

Mr Abrahams, who has slaughtermen and MAFF officials staying at his hotel, said he feared the moors could be shut down for months, perhaps until Christmas.

"We have had four months of restrictions, now we have our own outbreak," he said. "These are very worrying times."

Mr Abrahams is now calling for compensation for businesses linked to the tourism industry.

Speaking at the annual general meeting of the North Yorkshire Moors Association at the weekend, moors national park chief executive Andy Wilson said he was anxious to see the various interests within the park - tourist, walkers, farmers and residents - maintaining the unity which had existed between them since the outbreak started.

But he conceded that it was becoming more and more difficult. "We need local consultation with interest groups. We need to carry people with us because we are in the crisis together," he said, adding that a blanket re-opening of footpaths would be wrong.

Updated: 10:52 Monday, June 11, 2001