The offshore finance sector wants Britain to butt out of Bermuda's business, insiders claimed yesterday.

And one businessman warned: "British interference in Bermudian law could severely damage offshore jurisdictions in general, not just Bermuda.'' He added: "It's not clear what exactly the British want as yet -- but any attempt by Britain to exercise more control is bad news.

"We have to be very cautious about the whole thing. There is an enormous amount at stake here -- and I'm not talking about money.'' The businessman was speaking after Premier Pamela Gordon, Finance Minister Grant Gibbons and Labour and Home Affairs Minister Quinton Edness met representatives of the international business sector at Cabinet Office yesterday in a two-hour council of war following Britain's demands.

The meeting was called so Government could explain a British move to increase its influence on the offshore business conducted from its colonies.

The UK is understood to have put pressure on the just-renamed Overseas Territories to introduce "dual criminality'' to its law books.

That would make it a crime in Bermuda for someone to commit a tax offence under British law -- or even other jurisdictions -- and it is feared the Bermuda's business world's books would be opened to "fishing expeditions.'' Another prominent businessman from the international sector said: "The British are pushing their luck a bit -- it would certainly send some shivers down some people's spines.

"On the face of it, we would echo what's been said and say `don't let them ride roughshod over you'.'' And tax expert Patrick Hackenburg of accountants Ernst and Young said he did not think the British proposals would be acceptable.

He added: "You have got to have some sort of valid proof or indictment. They want too cosy a relationship -- we are a Dependent Territory but we are self-governing and we have our own rules.

"It would be an invasion of privacy to allow Britain to come in here and review financial records for irregularities or crime.'' And he pointed out that the Island already have a tax treaty with the US -- but that agreement requires proof or charges before an on-Island investigation is launched.

The Premier has told UK Foreign Secretary Robin Cook at meetings in London and the Bahamas that any such changes would put "an intolerable burden'' on Bermuda regulators -- quite apart from the "ethical considerations.'' David Ezekiel, chairman of the International Companies Division of the Chamber of Commerce, was at the Cabinet Office meeting.

He said afterwards: "The implications of, as it were, handing over control -- unless it was within some very tightly defined circumstances -- won't be good for anyone, not service providers or potential customers here.

"Legitimate business persons will not want to expose themselves to investigations or inquiries which come with no prior substance -- we've got to be careful.

"No-one in a jurisdiction like Bermuda has anything to hide, but we have to ensure we do business with clients on a basis of reasonable trust.

"It wouldn't kill international business -- but it would affect it badly.'' Mr. Ezekiel added that in both London and Nassau, the Premier and Dr. Gibbons had "admirably summed up what our concerns are likely to be.'' He said: "What's being asked of us it to provide the Premier and her Ministers input in terms of bolstering the positions they have taken.'' Dr. Gibbons said: "It was a very useful interchange -- it was good to talk to the business community to get across some of the issues of financial regulation and supervision and try to define what British Government are looking for.'' CONFERENCE CON