Government is to press ahead with its call for British citizenship for Bermudians despite a public row between two high-ranking UK Labour Cabinet Ministers.

Home Affairs Minister Quinton Edness said he was "not unduly concerned'' after a dispute erupted between Foreign Secretary Robin Cook and Home Secretary Jack Straw on the eve of the Dependent Territories Review in London.

Mr. Straw is believed to have demanded that Mr. Cook not use his keynote address to the conference on February 4 to grant passports to the approximately 200,000 people living in the UK's remaining colonies.

Mr. Cook is understood to have decided to award the passports as the centrepiece of his review, following a political row in Britain over the Montserrat volcano eruption last year.

Insiders said he also saw the move as a "carrot'' to tighten tax and financial regulations in the territories, which would include a scrutiny of Bermuda's fiscal system.

But two leading UK newspapers -- The Independent on Sunday and The Sunday Times -- yesterday suggested Mr. Straw was "alarmed'' by the plans and claimed Mr. Cook was "furious'' that his proposals would now be delayed.

Both broadsheets claimed the Foreign Secretary would still announce a name change from British Dependent Territories to British Overseas Territories.

But the reports said a compromise deal had been thrashed out between the Foreign Office and the Home Office, under which Mr. Cook would simply set out the possibility of full British passports for Bermudians and other Dependent Territories residents.

Mr. Edness told The Royal Gazette : "This is news to me and it's news to the Government.

"I don't know the basis of the dispute but the British Government has said it would like a new and better relationship with the Dependent Territories.

"One way that could be achieved meaningfully is by providing passports and British citizenship to those Dependent Territories, or to offer it at least.

"But that's a moral judgement for the British Government.'' Mr. Edness will push Bermuda's claims at the review, alongside Premier Pamela Gordon, Cabinet Secretary Leo Mills and Permanent Secretary of Home Affairs John Drinkwater.

Opposition Leader Jennifer Smith is also leading a large delegation to the conference.

Mr. Edness added: "We are going over because we were invited there in good faith to discuss this.

"We would like to have an opportunity to press our claims and listen to all the options to improve our relationship with Britain and improve the conditions and benefits for our people.

"I am not unduly concerned that there appears to be a dispute between the Foreign Secretary and the Home Secretary.

"That's not unusual in government, especially when the government is trying to reach a decision and do the honourable thing.

"There's always disagreement about when something like that should happen and Mr. Straw has not said it should not happen. He has said it should be delayed.

"It is the UK Government which has brought up the matter of citizenship and constitutional status and we had better wait and see what happens.

"It's not Bermuda's role to step into a dispute between UK Cabinet ministers.'' The Bermuda Government will also push for cheaper education fees and a rule-change so Bermudians do not need visas to enter the UK, even if citizenship is not granted.

Mr. Cook is thought to be more likely to hand out British passports now that Hong Kong is no longer a colony.

The previous UK Conservative Government feared there would be a huge backlash of public opinion if passports had been made available to one million Hong Kong residents.

But Bermuda is now the largest of Britain's 13 remaining Dependent Territories.

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