By Andrew MacAskill and Sam Tabahriti

LONDON (Reuters) -Britain delayed a decision on whether to approve China’s plans to build the largest embassy in Europe in London for a second time on Thursday, as ministers faced pressure over the collapse of a trial of men accused of spying for Beijing.

China’s plans to build a new embassy on the site of a two-century-old building near the Tower of London have stalled for the past three years because of opposition from local residents, lawmakers and Hong Kong pro-democracy campaigners in Britain.

Concerns that the new embassy could be used as a base for spying have prompted some politicians in Britain and the U.S. to urge the government to block Beijing’s plans.

The government’s Department of Housing said in a letter seen by Reuters that it would

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