UK offer of full British citizenship for the Dependent Territories -- but with strings attached.

The Royal Gazette revealed on Monday that British Foreign Secretary Robin Cook was set to offer a new deal, but with the condition that UK law on financial dealings and white collar crime should be extended to Bermuda.

That means alleged fiscal offenders may have to face trial -- even if their actions were not offences under Bermudian law.

And alleged offenders may have to be tried in Bermuda under UK legislation or possibly taken to the UK for court proceedings there.

But some experts said any changes would not affect Bermuda from a business point of view -- although they accepted any move in that direction might have political repercussions.

Chamber of Commerce International Business Division chairman David Ezekiel said: "From a purely business point of view, if one gets rid of the other issues, I wouldn't see why we would not want to hold any money launderers to the highest possible standards of law.

"The bigger issues as to how this damages sovereignty, I would have to leave to others.

"But from a practical viewpoint of a business working in a jurisdiction which wants everybody to meet the highest standards, I don't see a problem -- but some legal minds might see it differently.

"If you consider that UK standards in relation to this are high and that we are going through our rules and regulations in connection with all aspects of money laundering legislation, generally there is enough impetus to make sure all standards are high.'' And Bermuda International Business Association chairman Glenn Titterton said any proposals the UK might make would unlikely to be a threat to Bermuda's position.

He said: "Bermuda is somewhat more advanced constitutionally and as a business jurisdiction than many of the other Dependent Territories.'' Mr. Titterton added: "The partnership between Government and business is unique and a major factor in Bermuda remaining a reputable jurisdiction.'' And he said: "Clearly, we wouldn't wish to see anything which impacts negatively on Bermuda as an international business centre.'' The Island's big two banks, however, were reserving judgement until the official British line is announced at a meeting of the Dependent Territories Association today by Mr. Cook.

Bank of Butterfield chief executive officer Calum Johnston is off the Island and not available for comment.

But a bank spokesman said: "We would be reluctant to comment until a lot more details are known.'' Bank of Bermuda boss Henry Smith is at an international economic summit in Switzerland.

And a bank spokesman echoed the Bank of Butterfield position, declining comment "until we know what the deal is.'' The Island also has a reputation for clean hands in the financial world, unlike some of the Caribbean Dependent Territories.

And Island leaders are likely to be furious at the prospect of greater powers for Britain in managing its internal affairs.

Premier Pamela Gordon has already said Government would not accept an offer of full British passports if the asking price was too high.

And Labour and Home Affairs Minister Quinton Edness added that any legislation which allowed overseas authorities to go on "fishing expeditions'' among Bermuda-based firms could wreck the Island's offshore business.

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