Family friction over the handling of the Diana, Princess of Wales Memorial Fund, became public at the weekend as it emerged that Lord Spencer had criticised the fund -- over which his elder sister Lady Sarah McCorquodale presides -- suggesting it was tasteless and degrading to Diana's memory.

In a letter to chairman Anthony Julius, Lord Spencer said trustees should hand out all the money collected and stop fund-raising. Shand Kydd, aged 62, said: ``The letter that my son wrote to the trustees of the Diana, Princess of Wales Memorial Fund in early April, was written on my behalf as well. It expressed concerns and asked questions.'' But a senior trustee expressed surprise at the way that Lord Spencer had voiced hisconcerns, suggesting there had been a breakdown in communications between the Spencer siblings.

Fund spokeswoman Parry said that trustees had found it strange that Lord Spencer had not spoken to his sister and that he had trusted newspaper reports about their intentions. ``We were very surprised to receive the letter. We thought that because Lady Sarah was on our fund, that would have been an obvious avenue of communication.''

Lady Sarah is understood to believe the fund should not shut down when it is raising more than pounds 1 million a week. She sees the fund as crucial to preserving the princess's memory. Responding to reports that Prince William was upset by the commercial exploitation of his mother, and echoed Lord Spencer's concerns, she revealed that trustees had wanted to involve him in key decisions. She said: ``But the answer was very clear -- that he is a schoolboy and has other things to concentrate on."