separately, British Virgin Island Chief Minister Ralph O'Neal warned yesterday.

He added that even the world's largest and most powerful countries were increasingly banding together in organisations like the European Union.

Mr. O'Neal -- addressing the opening of a dependent territories mini-summit in Hamilton -- said: "It's our hope that we have begun to establish a base on which a continued, fruitful and mutually beneficial relationship can be built.'' He added: "We might even discover that our respective courses are similar and -- although our individual destinations might differ or we might not be exactly in the same boat -- the comfort and convenience of a convoy could prove worthwhile.'' And he said the Caribbean UK possessions and Bermuda acting together could be "a beginning to to what is going to lay the foundation for remaining specks of Empire for the new millenium.'' Minister's warning Mr. O'Neal told delegates to the conference that he saw "no sudden, drastic changes'' in the dependent territories relations to the UK.

But he said: "If we are prepared to take the time to explore our similarities and our common problems, the results will certainly be to the lasting benefit of our people.'' Mr. O'Neal added that Britain's ties with the expanding European Union were a cause for concern.

In Britain, there are fears, especially in the Conservative Party, that the UK's sovereignty will be diluted by membership of the EC.

Mr. O'Neal said: "It's not only our relationship with the United Kingdom, but our relationship with Europe and Europe is becoming more and more difficult to deal with.

"And if the UK is unable to withstand the demands of Europe, we still have a relationship with the UK and be forced to comply with some of those things and we will be in a very, very difficult position.

"Europe is expanding and the more they expand, the more difficult it's going to become for us.'' Earlier, Mr. O'Neal said the British Virgin Islands "looked to Bermuda as an example for smaller countries throughout the world.'' He added that the rest of the world saw the dependent territories in the Caribbean and Atlantic as "very similar small territories'' sharing not only ties with Britain but with economic and social circumstances in common with each other.

And he praised Ms Gordon's initiative in promoting a mini-conference prior to next month's meeting of the Dependent Territories Association in London amid a major rewrite of Britain's relationship with its dependent territories.