WHILE Mr John Major rejected demands for a referendum on Britain's future role in Europe yesterday, a number of Tory backbenchers threatened to revolt if his government does not attempt to reduce the powers of Brussels.
A Downing Street spokesman said the government did "not see a case" for the poll demanded by Independent MEP Sir James Goldsmith, the anti EU millionaire, although he stressed Mr Major still supported holding a referendum before monetary union.
But many senior Tories have privately expressed fears that Sir James's Referendum Party - which plans to contest every seat at the general election unless other candidates are committed to a referendum - could jeopardise Tories in marginal constituencies by dividing the party's vote.
It is understood the Conservative Party chairman, Dr Brian Mawhinney, has suggested Cabinet colleagues adopt a policy that would appease Sir James. However, in a series of full page advertisements in several British newspapers yesterday, Sir James insisted that Mr Major's support for a referendum on a single currency was an "empty gesture" which did not go far enough.
"The referendum should allow for a full debate on the sort of Europe of which Britain wants to be part," the advertisement said.
But the president of the Board of Trade, Mr Ian Lang, insisted the British government would not change its stance simply because a "very rich businessman takes a particular view. We shall work our way towards our own policy positions and we shall lay them before the electorate in the appropriate way and at the appropriate time," he added.
Several leading Tory Eurosceptics also warned that they will vote against the government next week if the long awaited White Paper on European Strategy, which is published today, only offers a "few titbits" instead of firm proposals for reducing the EU's powers.
Mr Bill Cash MP predicted a "significant" number of backbenchers would revolt, hoping to defeat the government which has a majority of only two.