Premier David Saul was last night staying tight-lipped over a controversial plan to bypass restrictions on foreign development at the old Bermudiana Hotel site.

Dr. Saul -- speaking from Switzerland where he is attending the World Economic Forum -- said: "I personally at this stage don't have a position.

"This matter has to be discussed by the Cabinet and the caucus and then they will have to make a decision.'' The row began after insurance giants ACE and EXEL submitted a private member's bill to waive the 60/40 rule to allow the offshore insurance firms to develop the site.

But Dr. Saul said there was a precedent for the move in the 1950s decision to allow hotels to own property because "it was in the best interests of Bermuda.'' Dr. Saul added: "Today, as we approach the year 2000, tourism is not the only mainstay of the economy -- we have to decide whether it's in the best interests of the economy of the Island, on that one site alone, whether or not we should allow that private bill to go forward.'' He admitted he had formed a private view of the matter -- but declined to discuss it in advance of Cabinet and caucus meetings.

Last November, ACE and EXEL submitted a private bill which would allow them to dodge the 60/40 ownership rule and buy the hotel's owner, Winson Holdings Ltd, from Argus Insurance. The bill is likely to be put to the vote early in the next session of Parliament, which starts shortly.