Pro-Europe lobbyists backed by arms

THE lobby group aiming to persuade Britons to vote pro-Europe in the referendum called by Prime Minister Tony Blair is being financed by arms dealers and cigarette makers.

Britain in Europe, the proeuro, pro-European integration group led by British Airways chairman Lord Marshall, is continuing to be funded by defence group BAE Systems and British American Tobacco, despite many other major UK blue-chips withdrawing their support. According to its latest accounts, BAE donated £50,000 to BiE, taking its support up to £200,000 over the past four years.

The accounts of BAT, whose £126,000-a-year deputy chairman is pro-Europe former Chancellor Kenneth Clarke, show that it donated £25,000 to BiE last year, taking to £100,000 its support since the turn of the decade.

Major corporates such as Reuters, Unilever and Bunzl have axed their previous support for BiE. KPMG used to spend £40,000 a year on BiE but no longer while PricewaterhouseCoopers has withdrawn from its role as benefactor. Labour Minister and supermarkets heir Lord Sainsbury has previously pledged £2m to the campaign.

A BAT spokesman said: 'We do not make political donations as a point of policy but we support economic and monetary union as something that will deliver stability.'

A BAE spokesman said: 'People think we are obsessed with the US but our interests and joint ventures show the level of our commitment to Europe.'