Far-right activists could face prosecution, after police concerns that their election campaign leaflets are racist.
Northumbria Police today announced it is consulting with the Crown Prosecution Service over the content of the Newcastle Patriot Election Special.
The newsletter was sent out to thousands of households by the British National Party (BNP), in the run-up to the local and European elections on June 10.
Police believe claims in the leaflets about asylum seekers could be considered as inciting racial hatred.
Chief Superintendent Tim Shilston, Head of the force's community safety department said: "We are taking advice from the Crown Prosecution Service on the legality of certain BNP literature which is untruthful about the support available to asylum seekers.
"The leaflets are packed with inaccuracies, the effect of which is to raise community tensions on the back of what is a false prospectus."
He highlighted the pamphlet's claims that asylum seekers are given free mobile phones and even cheques to buy cars as prime examples of stirring up ill-feeling against ethnic communities.
"The danger is that the deliberate and cynical spreading of such myths will lead to resentment, increased community tension and possibly the criminal targeting of vulnerable groups," he said.
"It is for that reason that Northumbria Police feels the need to publicly put the record straight."
Extremist group the National Front has also been targeting areas of Tyneside, with a leaflet calling for an end to immigration for all non-whites, but police said they have so far received no complaints about the literature.
The BNP in the North-East stood by its newsletter.
Its regional spokesman, Kevin Scott, accused the police of acting as a Government mouthpiece.
He said: "It doesn't sound like a Northumbria Police statement, it seems like a Labour Party leaflet.
"I think it is scary that the police are being used like this. We are sure it is legal and stand by the comments."
The party is fielding a record number of candidates in next week's elections as it bids to win its first seat in the North-East.
A total of 57 candidates are due to contest council wards, and it has three members vying for the region's three European Parliament seats.
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