appears to undermine Government's original plan for taking on a fifth regularly scheduled ship.

The proposed spring and fall sailings for Carnival's Tropicale would put her in head-to-head competition with Chandris Celebrity Cruises' Meridian , which berths weekly at Dockyard.

Carnival has suggested the Tropicale sail each spring and fall from Charleston, Wilmington, Norfolk, Baltimore, Philadelphia and Boston -- the same cities used at those times by Meridian .

The scheduling could undermine the Government's policy intention for a St.

George's ship -- that it not affect the business of Bermuda's existing cruise operators.

When Government announced its plan to find a St. George's ship in May, 1992, it pledged to protect the interests of the four cruise operators now serving Bermuda.

Tourism Minister the Hon. C.V. (Jim) Woolridge said at the time: "The overriding consideration ... will be to secure a ship of the correct quality in an arrangement that will have the least effect on our existing cruise ship partners, one that is prepared to work closely with the community in maintaining the per passenger expenditure that was achieved in 1991.'' Tourism sources point out that Carnival's huge marketing power could drain business from the Meridian , which has been the weakest performer of the four ships enjoying long-term contracts with Bermuda.

Carnival's proposal also addressed local concerns that any battle to fill ships with passengers would lead to a discounting war. Bermuda Tourism frowns on discounting because lower fares tend to attract people far below the higher-income travellers targetted by Bermuda.

Carnival said its marketing power was ideal because it could reach beyond the traditional east coast markets.

Carnival's latest proposal followed Mr. Woolridge's rejection last week of Tropicale as unsuitable for St. George's.

In particular, the Minister said the 1,022-passenger ship would be too much for the old town when considered with the business generated by the other three regular calling ships: Horizon , Dreamward and Song of America .

In response, Carnival has hinted it would be prepared to reduce the number of passengers its ship takes on so as not to overcrowd St. George's. One source familiar with the new proposal said passenger limits would be difficult to monitor.

Carnival also said it would anchor off St. George's in the event bad weather prevented Tropicale from entering Town Cut, and ferry her passengers into the town.

One Government source was sceptical the arrangement would work effectively and raised the spectre of inevitable passenger injury during transfers from ship to tenders.

In his statement on Wednesday, Mr. Woolridge said Government was considering the new Carnival proposal.

But he also said Government was considering another possibility involving a leased ship sailing out of Boston.

It is understood that ship was in the process of being bought by a company called Cruise Investors, which would then lease the vessel to Majesty Cruises.

Thomas Cooke, the international travel company, would be responsible for marketing the Boston-Bermuda run for six months each year.