Diana fund freeze affects AIDS, poverty and landmine projects

US: Hundreds of thousands of the world's most vulnerable people came under new threat yesterday as a charity set up to commemorate…

US: Hundreds of thousands of the world's most vulnerable people came under new threat yesterday as a charity set up to commemorate the late Princess Diana was forced by a US lawsuit to freeze its funds.

The decision by the Diana, Princess of Wales Memorial Fund to freeze £56 million (about €84 million) in assets including £10 million it has already pledged will hit AIDS, poverty and landmine recovery projects worldwide.

"Many hundreds of thousands of people are directly reliant on us and they could suffer as a result of this case," said the memorial fund's director, Mr Andrew Purkis.

"But indirectly, with our work in palliative care, the number runs into millions," he added, noting the charity works with projects across sub Saharan Africa, Asia and Latin America.

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The fund was set up to channel millions of pounds of gifts that poured in after Diana was killed in a Paris car crash in 1997.

The charity said it had halted grants as part of its fight over Diana memorabilia with private Pennsylvania firm Franklin Mint Co which has launched a $25 million "malicious prosecution" counter suit after the fund lost a 1998 case trying to prevent the US firm using her image.

Franklin Mint, which accuses the fund of taking the initial action to scare other legitimate businesses into paying it royalties, says its lawsuit is not a fight about money and it will give damages it collects to charity - after costs. Mr Purkis said the fund urgently had to find £4.5 million in the next six months to meet its immediate pledges.

"We are launching an appeal to other charities and grant-giving bodies working in the same area. We are asking them to come up with the money in the knowledge that once this court case is over, they will be repaid in full," Mr Purkis said.

Ms Pilar Arrango-Ribeck of the Colombian Children of the Andes landmine awareness campaign expressed dismay at the events.

"I can't even put words to my feelings. The lives of hundreds of Colombian children are being put at risk by a court case taken by a rich American company," she said. - (Reuters)