bid to protect the interests of its colonies.

And Foreign Office officials insisted yesterday that the UK offer of full citizenship was not conditional on the colonies toeing the international line on financial regulation and human rights.

Now Financial Secretaries from the Territories, including Bermuda, will meet Foreign Office officials in London in June to discuss the implications of a new regime to beat white collar crime and money laundering.

The head of the newly-created Foreign Office Overseas Territories Department, John White, was responsible for much of the UK White Paper.

He said: "The offer of British citizenship is not linked to any other part of the White Paper.

"The White Paper contains an offer that the British Government believes it right to make.

And he insisted: "There is no cross-reading as to action on the human rights front, constitutionally or on the financial agenda either.'' Foreign Office Overseas Territories Department legal advisor Iain Christie added that Britain was a member of the Organisation for Economic Cooperation and Development, the European Union and the United Nations -- all of whom have offshore financial centres in their sights.

He said: "This is where the UK can help -- it has quite a large say in these things and can represent the interests of the Overseas Territories in these organisations.'' He admitted: "Every Territory is concerned that the regulation required will not adversely impact on their financial services.

"But they recognise regulation is needed to keep the industry reputable and to ensure it's not allowed to be used as a vehicle for money laundering.

Progress on this is cautious -- but we are moving in the right direction.'' And he promised Britain would not just agree with its international partners on new rules and regulations which could damage the prosperity of Bermuda and other OTs.

Mr. Christie said: "Britain supports these initiatives but it doesn't mean it supports the outcome -- which at this stage is very unclear.'' But he added: "The meeting progressed matters on all the issues of common concern.'' The two were speaking at the end of a three-day meeting of the Attorneys General of the Overseas Territories, held in Paget's Newstead Hotel.

Mr. Christie said: "I think that the Attorneys General understand that this is a consultative process. There is a two-way exchange of information.'' He added that concrete proposals on financial regulation and bids to even out the tax structure across Europe were still to materialise.'' UK fights tax plan: Page 8 White Paper forum: Page 9 UK vows to fight for colonies Mr. Christie said: "The financial regulation and particularly the tax harmonisation issue are themselves in the process of evaluation -- there are very few conclusions.'' He added: "On the finance side, the message has definitely got across that the Overseas Territories need to be involved -- whatever happens will impact on them.'' Delegates united to insist that the meeting had been "amicable'' -- despite fears in the Territories that they might be clamped down on by international bodies.

Bermuda Attorney-General Lois Browne Evans, who attended some of the sessions, said: "It was most amicable -- it was one of the most amicable meetings I've been in for a long time.'' The Cayman Islands, after Bermuda, is the biggest offshore business jurisdiction among the Overseas Territories.

But, unlike Bermuda, the Caymans has concentrated on banking, rather than insurance for its earnings.

Caymans Attorney-General David Ballantyne said: "It's appropriate to have suitable financial regulation, but it's also necessary to be able to maintain business confidence and to attract the right kind of business.

"There is a balancing act in it all -- standards continue to rise worldwide and we're one of the leaders in regulation in our financial industry.'' But he added: "What's been acknowledged is that there are risks in the financial services industry which have to be addressed to ensure clean jurisdictions -- otherwise certain outsiders will take advantage of your jurisdiction.

"The initiatives announced by Britain in the White Paper are really a consolidation of an approach taken over a number of years and a benchmark has been stated.

"It means all the Territories have to ensure their laws are up to scratch and that they are respectable and respected members of the international community.'' Mr. Ballantyne added: "There are always concerns -- but the meeting went very well and we managed to reach a concensus on all the important issues, in particular on the international criminal cooperation front.'' And he said: "I view what we have seen in Bermuda as a snapshot of British policy right now and a way forward which is quite a good development.'' IMMIGRATION IMM