Further doubt on the charitable fund established after the death of the Princess of Wales last year surfaced yesterday when Diana's mother, Mrs Frances Shand Kydd, and brother, Earl Spencer, suggested it should not run indefinitely.
Also, the British press has reported that the princess's elder son, Prince William, is "angry and upset" about the continuing commercial exploitation of his mother. His irritation has moved him closer to the earl, who made no secret of his unhappiness at some of the fund-raising activities.
These include promoting lottery scratch-cards and approving the use of Diana's signature on tubs of margarine in exchange for charity money, activities described by many as "tacky" and for which the fund trustees admitted a "lapse of judgement".
As the trustees of the fund, including the princess's sister, Lady Sarah McCorquodale, indicated they would be holding a series of meetings to discuss its future, Mrs Shand Kydd and Earl Spencer spoke of their reservations about the fund's role.
Ms Shelly-Ann Claircourt, a spokeswoman for the earl, said: "They voiced their concerns and, from what I understand, the trustees had a meeting about it and discussed it . . . They feel the fund should have a very finite life, but they are going to support it however long it exists. The earl completely backs the fund. He still supports it and always has."
Speaking from her home in Scotland, Mrs Shand Kydd confirmed that a letter sent to the trustees earlier this month expressing concerns and asking questions about the fund's work was written on behalf of Earl Spencer and herself.
Refusing to elaborate on the details of the letter, however, Mrs Shand Kydd said the Spencer family continued to support her daughter, Lady Sarah. "We think she has a very hard task which she carries out with courage and integrity," she added.
Lady Sarah is reported to have told her brother the fund cannot stop when it is receiving £1 million a week.
The trustees of the fund have confirmed that they received a letter from Earl Spencer and Mrs Shand Kydd, but pointed out that they were not asked to wind up the fund immediately. One of the trustees, Mr Christopher Spence, said yesterday the letter was sent to the chairman of the fund, Diana's former divorce lawyer, Mr Anthony Julius.
The letter expressed Earl Spencer's concerns about the products authorised to raise money for the fund, Mr Spence said, but there was "no question of the fund being wound up".
Last week the trustees announced that they had temporarily suspended considering applications for funding because of the volume of requests. The fund is also facing a major review of its policy on grants this summer and, amid the speculation concerning its future, Diana's former butler, Mr Paul Burrell has said he believes the fund will not be wound up.
Mr Burrell, who is now the chief fund-raiser of the princess's fund, said he had "very strong and definite feelings" that the fund would continue "to go forward."