Britain has sounded the warning bells to corrupt and politically backward colonies — shape up or the Governor will sort you out.

In a paper being circulated to Premiers and Chief Ministers of all the Overseas Territories, Lord Triesman, Parliamentary Under Secretary of State in the Foreign and Commonwealth Office, said some jurisdictions were better managed than Britain.

But he said others had governance issues.

The paper, an updated version of a 2003, document said: "In certain Territories there are governance issues which need to be addressed — including corruption, financial management and regulation of financial services.

"In some cases, the lack of developed civil society, strong legislature and/or vibrant press mean there are few checks on the executive;

"The geographical location and size of some of the Overseas Territories make them vulnerable to drug-trafficking and associated crime."

Lord Triesman has asked Governors to make it widely available locally and it has now been placed on the Bermuda Government House website and the website of the Foreign and Commonwealth Office.

But it was unclear last night what lay behind the reissuing of the paper which had only tiny amendments from the one issued four years ago, although it was thought allegations about the sale of Crown lands in Turks and Caicos might have been a factor.

Asked if any of the memo was a directed at Bermuda, Deputy Governor Mark Capes said: "The document reflects the reports and views of all the overseas territories."

The document says Britain's remaining territories vary considerably.

It goes on: "Many of the Overseas Territories have made great strides in their own development. In some, standards of governance and implementation of international standards are equal to, or in some cases exceed, the standards in the UK.

"In others governance and implementation issues have given rise to concern. If not addressed, as well as having serious implications for the well-being of Overseas Territories citizens, they could give rise to significant contingent liabilities for the UK."

The paper urged Governors to keep a close watch to ensure, among other things:

* good governance including the conduct of free and fair elections, transparency e.g. in the sale of Crown Lands and awarding of large government contracts

* the unimpeded use of the police and criminal justice system in the face of corruption

* sound financial management, including adherence to responsible borrowing limits and prudence in entering into public private partnership agreements

* appropriate and prompt response to audit criticism.

Lord Triesman said some territories might think those issues are beyond the bounds of Governors.

But he said: "As long as the UK bears ultimate responsibility for the territories, and has a contingent liability if things go seriously wrong, UK Ministers see an important role for Governors in monitoring developments, and reporting to them areas of concern.

"In territories which are well-managed, this may mean that Governors may simply need to sustain full and productive dialogue.

"In territories giving rise to greater concern, Governors may need to play a more proactive role in these areas than hitherto.

"The aim throughout will be to deliver high standards of governance to the benefit of all Overseas Territories citizens."

He said Governors would not be given new powers but should work with Governments to improve standards.

Glenn Jones, the Premier's press secretary said last night: "The Premier has previously seen the document you asked about, but has no comment."