Dutch oil magnate John Deuss has personally lobbied MPs to back a foreign bid to develop a run-down hotel site, it was claimed yesterday.

In a letter to shareholders Neville Conyers, president of Bermuda Financial Centre Ltd. (BFCL), claimed Mr. Deuss had also approached the planning department about the Bermudiana Hotel site.

Mr. Conyers also criticises MPs for apparently backing a foreign bid for 100 percent ownership of the land.

And he is calling on BFCL shareholders to lobby against the foreign bid and help block the proposal.

The letter is the latest move in an increasingly bitter fight for the rights to develop the Bermudiana site.

Originally BFCL wanted to develop the site but could not meet loan repayments and Argus Insurance took control through a company called Winson Holdings.

Last year ACE Ltd and EXEL Ltd agreed to buy Winson and take control of the site -- subject to planning permission and approval of a private Bill by-passing Bermuda's 60/40 rule.

The Bill passed its first stage when it was approved by a House of Assembly committee and will go before all MPs next month.

In the meantime BFCL launched a counter-bid saying it was in negotiations with backers to raise cash to go ahead with the project.

"We were surprised to learn that ACE and EXEL had sponsored a private members Bill and that substantive lobbying of MPs was being undertaken,'' Mr. Conyers says in the letter.

"We are advised that Mr. Deuss has personally been involved in the lobbying efforts and with approaches to planning, although frankly we are still unaware of Mr. Deuss' relationship to the ACE/EXEL proposition.'' He wrote that the Bill went through the committee stage with one objection and that a plan to pass it through the House last year was thwarted at the last minute and it will now be presented next month.

"This is an extraordinary situation. Two companies, albeit important and highly reputable, but never-the-less non-Bermudian seem to be set to be given permission to own the Bermudiana site and thus defy the 60/40 rule with little apparent debate or dissension,'' he wrote.