Gore caught in row between cash cows

On the eve of the Democrats' convention, Vice-President Al Gore will be confronted tomorrow with an embarrassing conflict of interest which goes to the heart of the row over campaign financing in American politics.

Desperate efforts were being made behind the scenes last night to avoid a standoff between one of Mr Gore's main financial backers and the labour movement, whose support he also desperately needs.

On Sunday night hundreds of leading Democrats plan to demonstrate outside Loews hotel in Santa Monica, where many of their number were due to stay during the convention. They will be there in support of hotel workers who are seeking recognition of their union.

Among those due to attend the rally are the House minority leader, Richard Gephardt, who was spoken of as a possible vice-presidential candidate until Joseph Lieberman was chosen earlier this week; the Rev Jesse Jackson; and the president of the AFL-CIO union federation, John Sweeney.

The hotel has had a long-running dispute between its president and chief executive officer, Jonathan Tisch, and the union, the Hotel Employees and Restaurant Employees. This has led to a series of arrests of union activists and has turned the hotel into a rallying point for the union movement in Los Angeles.

On Thursday night, a further 58 people were arrested outside the hotel.

Mr Tisch is not only a major fundraiser for the Democrats but also a close friend and supporter of Mr Gore.

Money is essential to the Gore-Lieberman bid particularly because the George W Bush campaign is being so heavily financed by corporate interests. This means that Mr Tisch is regarded as a key figure by the Democrats' fundraising team.

In an attempt to settle the dispute before the Democrats arrive, the hotel agreed earlier this week to post notices saying that they will not "threaten our employees with harm" or "interrogate our employees about their union activities".

Then, on Thursday, Mr Tisch took out a full-page advertisement in the Los Angeles Times justifying the hotel's stance and saying that its position was "not about 'busting' unions, it is about trusting employees to make the choice".

If Mr Gore fails to back the unions, the labour movement may question his credentials and shift some of their allegiances to Green party candidate, Ralph Nader. He will also lay himself open to the accusation that he is in some way obliged to his financial backers. If he does back the union, he risks alienating an old friend and ally.

"Tisch is throwing down a gauntlet to the leadership of the Democratic party," David Koff, a union official, said last night. He suggested that Mr Tisch's position highlighted the issue of "big money" as opposed to "working class families", about whom Mr Gore and Mr Lieberman have made much in their pitch.

The demonstration at the hotel is one of many street protests planned in the city this week. In preparation for possible trouble, 3,000 National Guardsmen have been drafted in to assist the Los Angeles police department (LAPD) and concrete blocks weighing 4,500kg (almost 10,00lb) have been planted across streets around the convention centre.

The organisers of the various demonstrations stressed yesterday that they are seeking non-violent protest. They said that the difference between next week's demonstrations and those against the World Trade Organisation in Seattle earlier this year was that there was no intention of stopping the convention taking place.

The fear has been expressed that the LAPD may try to arrest some organisers for conspiracy before the protests have even started. A total of 391 people were arrested during last week's protests at the Republican convention in Philadelphia and more than 100 were still being held yesterday. Bail for John Sellers of the Ruckus Society, one of the main protest groups, was initially set at $1m.

Some of the liveliest debates are expected at the shadow conventions being held near the main convention. These events, spearheaded by the journalist and former Republican supporter Arianna Huffington, will focus on poverty, drugs policy and campaign financing.

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