Government slip as he campaigns for "fair treatment'' for his constituents.

Alabama Sen. Richard Shelby has entered the argument between the giant US McDonald Group and Telco over the structure and control of Bermuda Cablevision.

Last night it emerged that Alabama Congressman Spencer Bachus has also raised the issue of the McDonald Group's problems in Bermuda.

Sen. Shelby's Chief of Staff Tom Young said yesterday: "We just want the McDonald Group to be treated fairly. That is what we want.

"We will continue to monitor this case and meet with the US State Department and the constituents.

"We will do everything that is appropriate and ask the State Department to watch what is going on,'' said Mr. Young.

He said the State Department was actively looking into the issue which it is feared could harm US/Bermuda relationships.

Sen. Shelby, a member of the Senate Banking Committee and chairman of the General Oversight and Investigations Committee, is seeking a resolution of the court dispute between the McDonald Group and Telco over Cablevision.

Nine years ago the US Group put cash into Cablevision and worked out a deal where it received 60 percent of the profits as "consultancy fees''.

Later Telco bought a block of shares in Cablevision and last year launched legal action over control of Cablevision and the consultancy payments.

It is claimed the company's structure and the payments are in breach of the 60:40 rule which says Island companies must be 60 percent Bermudian owned. The case is due to be heard by the Privy Council next year.

However Sen. Shelby claims the Bermuda Government invited the McDonald Group into Bermuda to invest in Cablevision and along with the Bermuda Monetary Authority worked out the deal bringing the company onto the Island.

As a result he feels the Bermuda Government has abandoned the Group and should have explained the deal to the courts.

He also claims the Government is helping Bermudians wrest control of Cablevision -- which Bermuda's politicians strenuously deny.

The Government also says it cannot interfere with a legal dispute, but are looking at whether the McDonalds were encouraged to come to Bermuda.

But Mr. Young added: "The McDonald Group was encouraged by the Bermuda Government. They have letters showing they were encouraged to come because of the poor state of the cable system.'' He said the Government agreed to Cablevision's structure and the consultancy fees.

SENATE SEN T