ERROR RG P4 30.4.1999 A Business story in Tuesday's newspaper reported that outgoing Chamber of Commerce Michael Smith said the Chamber was insolvent. Mr. Smith in fact said the Chamber was solvent for the first time in several years.

Global pressures on Bermuda's business community were no reason to consider "pushing the panic button'', Premier Jennifer Smith said yesterday.

And in her address to several hundred businesspeople at the Chamber of Commerce's annual general meeting, she hinted at possible relief on customs duty for retailers to breathe new life into sales figures.

But she also admitted there were fears in business circles about the "over-reaching nature of the new rules applicable to prevent money-laundering and the range of offences that are classified as criminal in this regard''.

Before Ms Smith's address, a new president was appointed to the Chamber, former chairman of its real estate division Cris Valdes-Dapena -- the first female president.

And in presenting the Chamber's financial report for 1998 outgoing president Michael Smith told the packed AGM that the balance sheet for 1998 showed the body was insolvent for the first time in several years.

In her address Premier Smith called on the business community to work with the Government toward "the common goal of protecting the long-term prosperity and well-being of all Bermudians''.

"It is essential for you to share with me your views on how you believe Government can help the business community. Communication, after all, is a two way street,'' she said.

"Locally, I am well aware one of the principal concerns of the Chamber's retail segment is the burden that it is forced to bear through our present heavy reliance on customs duty as the principal source of revenue collection.

"Finance Minister Mr. Cox has already met with representatives of this community and is seeking ways for Government to offer some relief.'' But the challenges Bermuda faced on a world level were more complex.

Global demands for stringent regulation of offshore centres from several global powers including the G7 group of nations, the OECD and the EU via the UK were not necessarily obstacles for Bermuda. And the Government was working to tackle the issues by opening lines of communication in what Ms Smith tagged "exciting times''.

Already she had set up a committee of Bermuda's key international businesses like ACE, XL Capital and American International to advise on issues relating to the OECD's forthcoming harmful tax jurisdiction blacklist.

The Government had also hired international public relations firm Charles Barker BSMG Worldwide to fight for Bermuda's interests in the UK and Europe, while Harry Gutman of KPMG Tax Consulting in Washington would cover the US.

Ms Smith admitted a potentially serious obstacle for Bermuda was the EU's current consideration of a directive which would require all EU states to operate a withholding tax on cross border income from savings by individuals.

But she said the Government would defend Bermuda's financial ground. "While digesting the various views and observations that Bermuda's talented businesspeople and professionals have to offer, I wish to assure you that there is no reason to contemplate pressing the panic button.

"This Government will seek to meet any legitimate demands for better financial regulation head on. We will not shirk our responsibility to maintain Bermuda's reputation as a reputable leading financial centre.

"It is of obvious concern that the UK government is insisting that Bermuda and other Overseas Territory's legislate the necessary financial regulatory standards.

"But we appreciate that the increasingly global nature of financial markets inevitably leads toward a global approach to financial regulation.

"Whether or not Bermuda is a British Overseas Territory or independent we will be compelled as a leading and reputable offshore jurisdiction to adhere to the highest possible standards of financial regulation without impeding the legitimate conduct of offshore business.''