TORY Party chairman Sir Norman Fowler accused Labour during the debate

of indulging in ''slur after slur after slur''.

He said: ''The Conservative Party did not, does not, and will not

accept donations from foreign governments and that also applies to royal

families and the agents of the governments and royal families.''

He said the party received a total of #440,000 from companies owned by

Asil Nadir between 1985 and 1990.

He insisted the donations were made when Polly Peck was seen as ''a

highly successful British company'', and repeated his pledge to return

any cash that proved to be stolen.

He disclosed that the party had contacted Polly Peck's administrators,

Touche Ross, in October 1991, offering information.

''I have to say that one hour before entering the Chamber I at last

received a letter -- 601 days after our first communication.''

He added: ''I hope Touche Ross will start now dealing with us and will

not seek to pursue this through the newspapers.''

Sir Norman and Labour deputy leader Margaret Beckett were involved in

an angry clash over the alleged donation from Saudi Arabia.

The clash came after a reference by Mrs Beckett to Sir Norman's

insistence -- at a select committee hearing last week -- that the Tories

did not take money from foreign governments. She asked when that rule

had come into force, to be told by a furious Sir Norman that the rule

''exists now and has always existed.''

Sir Norman demanded that Mrs Beckett dissociate herself from comments

she had made about ''this totally unsubstantiated story'' which had

''slurred the Saudi Arabian royal family.''

However, Mrs Beckett refused to withdraw her remarks. She said

allegations about the Tories taking money from agents of other foreign

governments had been made and must be discussed. ''I said they should be

denied if they were untrue. You have denied them -- what are you

complaining about?''

Sir Norman accused her of ''rumourmongering,'' but Mrs Beckett

retorted that rumours existed precisely because the Tories would not

reveal who gave them money. ''When they tell us, then there will be

presumably no further rumours,'' she said.

Sir Norman said he was committed to the notion of voluntary donations

to parties adding that in 199293, the party's estimated income was #26m,

#18m of which was raised and spent in the constituencies.

He denied donations bought influence and insisted the party did not

accept illegallyobtained cash, or donations ''with strings attached''.

Sir Norman urged Labour to return the #31,000 it received from Robert

Maxwell.

He said: ''If money received from Asil Nadir is tainted, then money

received from Robert Maxwell is frankly covered with black tar.''