Labour crows over Clarke's comments

Ministers seized on reported remarks by the new shadow business secretary at a conference last month in which he warned that new US president Barack Obama would not want to see Britain led by a "right-wing nationalist".

Speaking at Nottingham University, he suggested that Mr Obama would start to look more towards France or Germany if he thought a future Conservative government was becoming "isolationist" on Europe.

Mr Clarke, whose comments were reported on the www.publicservice.co.uk website, went on to say that the Tories remained "firmly Eurosceptic", although it was a now "harmless" brand of Euro-scepticism that was "a bit silly sometimes".

Europe Minister Caroline Flint said Mr Clarke's remarks - made before he took up his current post - exposed the contradiction at the heart of the Tories' foreign policy.

"Ken Clarke is absolutely right to warn David Cameron that his European policy would only serve to isolate Britain from the US," she said. "It's a straightforward test for David Cameron: give up your policy on Europe, as Ken Clarke says, or give up the special relationship."

On the website, Mr Clarke was quoted as saying: "A lot will depend on relations with Europe, because Obama doesn't want his strongest European ally led by a right-wing nationalist, he wants them to be a key player inside Europe, and he'll start looking at whoever is in Germany or France if we start being isolationist."

He added: "I think the need to be working with Obama will influence my party on Europe. It is still firmly Euro-sceptic but it's now moderate, harmless Euro-scepticism.

"It's a bit silly sometimes, like which group do you join in the European parliament, but full-blooded stuff like renegotiating the treaty of accession is as dead as a dodo."

Before joining the shadow cabinet, Mr Clarke - whose differences with the leadership on Europe are well known - gave Mr Cameron an assurance that he would not stir up trouble on Europe. However the disclosure of his comments at the Nottingham event, underlined the potential his return - which was highly controversial within the party - provides for the Conservatives' opponents to make mischief for them.