The former MP's long-time friend, Lord Harris, has set up an appeal for pledges to raise £150,000 to fund a libel action against Mr Fayed, Channel 4 and independent production company Fulcrum Productions.

The cash must be pledged before the writ, which has been lodged but not served, runs out of time - sometime in April, according to the founder president of free market think tank the Institute of Economic Affairs.

"We are just touching £100,000," he said.

The libel writ relates to allegations in a Channel 4 Dispatches programme last January.

Many pledges, organised by Lord Harris and Norris McWhirter of the Freedom Association but launched by a pledge from a Tatton constituent, have been promised anonymously.

But some have publicly announced their support.

Among the 250

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supporters who have joined so far include Conservative MPs Teresa Gorman, Peter Lloyd, David Prior and Lawrence Robertson and former MPs Sir Fergus Montgomery and Mark Lennox-Boyd.

Lord Harris said the fund so far was mainly made up of £500 and £1,000 pledges - but some have only been made up of £25 and £10.

The biggest donation is for £10,000.

"I don't have a battle on at the moment with Martin Bell," he said. "My foe is Fayed."

Lord Harris said yesterday (Tuesday) that there were 27 letters of support for their campaign alone - almost all hand-written.

"Every post brings pledges," he said. "But we need more."

Lord Harris said the letters of support expressed outrage at Mr Fayed's accusations, the notion that Mr Hamilton did not get a fair hearing and the fact that Mr Fayed was not directly questioned during the Standards and Privileges Committee inquiry into the cash for questions affair.

"One or two said Sir Gordon Downey's report was not enough," he said. "And I agree it was incomplete."

Michael Cole, spokesman for the Harrods' boss, said Mr Fayed's lawyers were ready to respond to the writ - but couldn't do anything until they'd heard from Mr Hamilton.

"Mr Hamilton is reasonably young, looks fit and is a barrister at law. Why does he not get a job like the rest of us?" he said.

"Seeking to make a career out of being an ex-MP is hardly in tune with his hard line Tory principles and traditional Conservatives never regarded politics as a full time career anyway, rather a public duty."

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