Canadians on the Island.

A spokesman for the Canadian Consul General in New York, who doubles up as Commissioner to Bermuda, confirmed the news yesterday.

He said: "We are investigating the appointment of an Honorary Consul. It's a cost-effective way of having representation in some areas where we don't have a permanent mission.'' But the spokesman denied the move was related to the brutal 1996 killing of Canadian teenager Rebecca Middleton and the collapse of the subsequent trial.

He said, however: "Having an Honorary Consul makes the level of assistance that much more accessible than with an offshore representation.'' He added that the plans were in the early stages and no final decisions had been made.

The spokesman said: "We have been looking at this for quite some time -- we've been kicking around the idea.

"We really don't have a timing for it. We're going through the feasibility studies for it which may end up in the appointment.'' The handling of the probe into the Middleton killing caused widespread anger in Canada, with calls for a boycott of the Island.

The economic war was declared after murder accused Justis Smith, now 19, walked free from court after a judge ruled there was no case to answer due to lack of evidence.

Only months after the killing, Jamaican national Kirk Mundy pleaded guilty to being an accessory after the fact in the killing and was jailed for five years.

Later attempts to re-charge Mundy with murder were knocked back all the way to the Privy Council in London, Bermuda's final court of appeal.

Bermuda already has around 16 Honorary Consuls appointed to look after a variety of nationalities.

These include Finland, Norway, Sweden, Chile, Greece, Germany, Italy and Spain.

Only Portugal and the US maintain full Consulates in Bermuda.

It is estimated there are between 1,000 and 1,600 Canadian nationals living in Bermuda -- a sizeable proportion of the expatriate community on the Island.

News of the Honorary Consulship came as new Consul General and Commissioner to Bermuda Michael Phillips -- former Canadian Ambassador to the Republic of Ireland -- is due to arrive on the Island to present his credentials to Government.

The spokesman in New York said Mr. Phillips' first trip to Bermuda was delayed by illness.

But he added he was expected to arrive on the Island later this month.