Monetary Authority (BMA) from buying 40 percent of local jeweller Astwood-Dickinson Co.

The BMA turned down the Bahamas-based jewellery chain's application to be exempted from foreign exchange controls. The exemption would have allowed Colombian Emeralds to repatriate its profits from the proposed investment in Astwood-Dickinson. The proposal caused controversy among local competitors who said Colombian Emeralds would be detrimental to business here.

Chris Cooper, chief financial officer of Colombian Emeralds, said it made no sense for the company to invest in Astwood-Dickinson if it couldn't take profits out. He said another application was submitted to the BMA two months ago with additional information which had been requested.

"We are disappointed with the BMA's decision,'' he said. "We invested a great deal of time in the proposal. We have re-submitted an application. We have given more details as asked for by the BMA, which is exercising due dilligence. We haven't been happy with the comments made by the local competitors.'' In the meantime Colombian Emeralds has granted Astwood-Dickinson exclusive rights to distribute its products at the company's three outlets. Mr. Cooper said this is the first time the Caribbean jewellery chain had granted such rights. Elsewhere, the company normally forges partnerships with local jewellers by purchasing a piece of the business.

Mr. Cooper said Colombian Emeralds felt it proper to grant Astwood-Dickinson exculsive rights as the company had spent money refurbishing its Front St.

outlet according to the chain's specifications.

Astwood-Dickinson spent about $500,000 refurbishing the Front St. store, according to Florida-based Offshore Alert newsletter. The store was closed for three months and re-opened last week. The company also has an outlet in the Walker Arcade, and in H A& E Smith store on Front St.

Astwood-Dickinson President Tommy Dickinson blamed local competitors for the break down of the deal with Colombian Emeralds.

"As a Bermudian I find it offensive that we have been targeted by incorrect information by someone on an anonymous basis,'' he said. "But what can you do but ride with it and get on with the job at hand.'' The most vocal opposition against Colombian Emeralds' entry into the local market has come from competitor HS & JE Crisson Ltd. Colombian Emeralds' owns or is part owner of 57 stores in the Caribbean and Alaska.

Tommy Dickinson GOVERNMENT GVT