serious flaws in a bid to create a new-look airport shopping area.

And he hit back at critics who said the terms offered discriminated against Bermudians and small businesses.

A row broke out after The Royal Gazette revealed that US Customs regulations banned Bermudian products from going on sale beyond the US pre-clearance barrier.

But Mr. Furbert said that pre-clearance was not only vital for the tourism industry, but a major convenience for Bermudians and could not be put at risk.

Pre-clearance allows US nationals to travel on the same terms as a domestic passenger, meaning no long waits to change from international terminals to domestic ones.

It also opens up smaller domestic airports to the Bermudian market, which generally do not have international Customs clearance. Mr. Furbert added: "The conditions the US stipulate happen all around the world -- Bermuda is not an isolated case. It's the same situation in Vancouver in Canada.'' He said he had correspondence dating back to 1991 -- before he was an MP -- stating the American case.

He added: "I was very disturbed, knowing what we were trying to do in the departure lounge.'' The Minister said he had approached US Customs in Bermuda and the US and the US Consul General on the Island, Bob Farmer, in a bid to get a concession for Bermuda.

He added: "We did all we can -- we even thought about flying to the pre-clearance headquarters in Miami but I don't think we would have come back with anything.

"To say Bermudians can do one thing and everybody else can't is unrealistic.

We have to abide by the same policies.'' Mr. Furbert was speaking just after returning from a Commonwealth conference in Malaysia.

He was reacting to bitter criticism of the management of the airport improvements by three would-be concessionaires in the new-look retail area.

Government said they wanted to give sales areas at the airport a "sense of place'' and a strong Bermudian theme.

But two business people claimed red tape was strangling bids by Bermudians to give an Island flavour to the sales area at the airport.

Bermuda Perfumery owner Colin Curtis and Windjammer Gallery owner Susan Curtis branded the US Customs rules as "an insult''.

Ms Curtis, who is considering withdrawing her already-approved application, added she thought the tendering process was weighted in favour of big business and slammed the terms of leases on offer as unfair.

And young entrepreneur Adrian Jones -- whose application to open a coffee concession at the airport was turned down -- claimed that he had been squeezed out by big business, too.

The Royal Gazette revealed in June that ex-Premier Sir John Swan's Grape Bay Ltd. planned to open a McDonald's restaurant and that the firm was the sole bidder for the new food concession at the airport.

But Mr. Jones said McDonald's was not Bermudian and that the request for proposals did not ask for applicants to consider sub-letting from another lease-holder.

Mr. Furbert yesterday declined to name any of the interested parties in advance of them being tabled in the House of Assembly.

But he said around 75 businesses had written letters of interest, although not all of them had followed their interest through.

He admitted he was disappointed with the response from small businesses -- but said he had done everything he could to encourage interest.

Airport chief Jack Gordon added: "The people I have spoken to have expressed great excitement about going into the airport.

"We hope it will make the airport a better place to travel from and make it better economically to take some of the load off the public purse, which is what we are trying to do.'' And Mr. Furbert said: "At the end of the day, once the airport is finally designed and up and running it will be very attractive.

"We hope to have an open day so people can walk about and see exactly what's available.''