CAMPAIGNERS for a “yes” vote in the forthcoming European Union referendum are seeking funds from a host of leading foreign and defence companies, an internal memorandum reveals, writes David Cracknell.

The Britain in Europe (BiE) group is targeting a range of American, French and German firms to finance its campaign to sign up to the new EU constitution.

Its “potential targets” include Telecom Italia, French defence companies Thales and EADS, American defence firms Boeing and Lockheed Martin, the Swiss bank UBS and the German Deutsche Bank.

Other American or US-owned firms listed include management consultants Accenture, the pharmaceutical company Merck, and Merrill Lynch, the investment bank.

The disclosure suggests that BiE is struggling to raise financial support from British businesses. The memo reveals that the group has an income target of £600,000 next year — the last full year before the planned referendum in March 2006.

Under anti-sleaze legislation political parties or campaigners cannot take donations from foreign companies, but the practice is allowed if the firms have an operational base in Britain.

The memo from BiE, circulated to members of its board, urges them to help in the fundraising efforts, saying they “will play a vital role”. It adds: “A fundraising strategy for the campaign war chest will be launched in early 2005.”

Members of the group’s advisory board include former EU commissioners Neil Kinnock and Chris Patten, and John Monks, the former TUC leader.

Eurosceptic MPs last night expressed anger at the move even if it is perfectly legitimate. Kate Hoey, Labour MP for Vauxhall, said: “If the ‘yes’ campaign are taking cash from foreign corporations Labour voters will be outraged. It is simply not acceptable for supporters of the EU constitution to raise money in this way.”

Ian Davidson, Labour MP for Glasgow Pollok, said: “The idea that the ‘yes’ campaign will be funded by arms companies in this way seems unbelievable. Surely they don’t think they can get away with it? Having the debate manipulated won’t go down well with voters in my constituency. It calls into question the fairness of the whole referendum.”

But Lucy Powell, director of BiE, said: “The companies listed have given money to pro-European think tanks and that is why they have appeared on the list. I think you will find all of them employ British people. We haven’t pursued any of them yet.”

Yesterday Denis MacShane, the minister for Europe, sought to row back on comments that the government’s five economic tests for adopting the euro were “a bit of a red herring”.

His remarks last month to a group of university students had been interpreted as bringing him into conflict with Gordon Brown, the chancellor, but MacShane said any suggestion that he meant to question or criticise government policy was “barmy”.

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