company owns would be calling on St. George's next year.

"She is sailing as before in the Baltic,'' Effjohn manager of corporate information Mr. Hakan Stenberg told The Royal Gazette about the Sally Albatross . "There are no plans to do otherwise.'' But a principal in the American company that has promised the ship insisted a deal would be announced this week.

"We're very busy working on the final details,'' said Mr. Arnold Mende of Boston Bermuda Cruising Ltd., adding he had just returned from negotiating for the ship in Helsinki, Finland. "We're dealing with the chairman of Effjohn.'' As for Mr. Stenberg, "I've never heard of him,'' Mr. Mende said. Government has promised a fifth cruise ship dedicated to St. George's and signed a ten-year draft contract with the American interests this year.

The ship was to be renamed Her Majesty and make weekly runs to Ordnance Island from Boston, beginning in May.

But doubts about the deal were heightened when Lloyd's List reported the Sally Albatross was to be chartered by owners of the German company DSR. The newspaper later said the report was erroneous.

Then came word the ship's prospective operators planned to increase the ship's length by 75 feet to 595 feet and add 80 cabins, bringing her passenger capacity to 1,010.

That news sparked criticism and concerns about congestion in the Old Town.

Critics noted Tourism Minister the Hon. C.V. (Jim) Woolridge had rejected Carnival Cruise Line's 670-foot and 1,022-passenger Tropicale as too large.

And it raised further doubts about when and where the required work would be completed. Questions have also been raised about preparing Ordnance Island to receive a cruise ship.

In an interview from Stockholm yesterday, Mr. Stenberg said "there have been a number of investors and interests concerning this ship,'' and "many delegations have been here,'' but there were "no further plans to take her out of the Baltic.'' That could change, but not quickly, he said.

Mr. Mende said he just returned from negotiations with Effjohn directors and lawyers in Finland. And Mr. James Bell of Florida's Cruise Investments -- the company that was to buy the ship -- was still in Helsinki, he said.

"We're about to have a major release at the end of the week announcing all of the details,'' Mr. Mende said.

Mr. Bell's office confirmed he was in Finland, and Mr. Stenberg confirmed that Helsinki was where talks concerning the ship would be held.

When told of Mr. Mende's comments, Mr. Stenberg said: "I am convinced that he may be wrong.'' But he suggested The Royal Gazette check with Effjohn's chairman, who was to return to Sweden today.

Meanwhile St. George Mayor the Wor. Henry Hayward said both the Corporation and the preservation authority were happy with Government plans for a 1,300 to 1,400-square-foot passenger terminal on Ordnance Island.

The building will be designed "to fit in with St. George's,'' and work could start by November, he said.

Additional dock frontage would be added with concrete slabs on piles, he said.

It is understood the work would cost about $1 million.