Lloyds TSB is withdrawing sponsorship for the 2008 eisteddfod
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A high street bank has withdrawn its annual £8,500 sponsorship for the National Eisteddfod in favour of the 2012 London Olympics.
Lloyds TSB has funded the eisteddfod's singing event since 1979, but says it is now focusing on the 2012 games.
The bank said it had been involved with the eisteddfod for years, and it had not taken the decision "lightly".
Former eisteddfod archdruid Robyn Lewis said he would withdraw his custom if the decision were not reversed.
In a letter to the bank, Dr Lewis, of Nefyn near Pwllheli, said: "If the bank were to divert its sponsorship to another worthy cause, such as, for example, poverty in the Third World, then I would understand the situation, and might well sympathise with your position to some extent.
"But the London Olympic Games!" he wrote.
"There appears to be little sympathy or support for these forthcoming games in part of Wales.
"You will be aware that there is already great discontent with regard to the creation of a so-called 'British' football team," wrote Dr Lewis.
"Wales, together with Scotland and Northern Ireland, have refused to take part."
He said he would have to consider his position as a customer of many years if the bank went ahead.
Eisteddfod director Elfed Roberts said the organisation depended a great deal on donations and sponsorship to survive, and "to lose a friend like Lloyds TSB is a major blow".
An artist's illustration of the 2012 Olympics stadium in London
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He said to learn that the bank was committed to the 2012 Olympics at the expense of withdrawing other sponsorships was "quite a surprise, for it has become abundantly clear that the London-based Olympics will be of little benefit to Wales".
In February it was claimed charities and sports bodies in Wales could lose more than £24m in national lottery funding to pay for the 2012 Olympics.
Last month the Football Association of Wales (FAW) said it would fight plans to be incorporated into a GB football team in 2012.
"To learn that lottery money of benefit to Wales over the next few years will be diverted to the Olympics was bad enough, now the National Eisteddfod is suffering," Mr Roberts added.
"It's perfectly clear as far as the Olympics are concerned that Wales is losing out to London."
Lloyds TSB said in a statement it remained a "proud sponsor" of other arts events in Wales.
"As part of our London 2012 Olympic Games sponsorship we are very keen that our activity delivers a legacy for Wales and the rest of the UK," the statement said.
"As part of our programme we will be supporting a number of up-and-coming young Welsh sportspeople on their journey to the London 2012 Games."
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