Cable & Wireless Bermuda is demanding "millions'' of dollars in compensation from Government for allowing TeleBermuda International Ltd. to compete against it in the long distance market.

The demand is the latest in a series of salvoes the company has fired at Government over the loss of its monopoly in Bermuda. The company also has writs pending in Supreme Court over the issue, and has announced it will cut jobs.

The company is taking its cue from Cable & Wireless' Hong Kong subsidiary, which agreed to surrender its monopoly six years earlier than expected in exchange for a $866 million cash settlement from the government. That deal was announced in January.

In a statement Cable & Wireless said it was making a claim for compensation from Bermuda's Government for the "substantial damages the company has suffered as a result of the loss of its exclusivity in international telecommunications.'' Cable & Wireless Bermuda general manager Colin Little said the amount, which he did not want to reveal, was "in the millions''. He said the Cable & Wireless Act specified a legal format in which the claim could be heard, either through arbitration, or in a court.

Cable & Wireless is claiming Government did not give it what it says is the necessary three years notice period before allowing competitors to break its monopoly.

"Cable & Wireless based its business and investment plans on the terms of the licence and its reasonable expectations under those terms,'' he said. "The government's unilateral decision to licence another carrier means those plans have been based on a false premise.'' Mr. Little also said Cable & Wireless had reached a decision to request the compensation after negotiations with Government had failed to reach a solution.

"We feel that we have been trying over the past year to provide a solution for both sides in trying to resolve issues,'' he said. "We don't think government is being forthcoming by way of a solution which enables us to plan our business.'' Telecommunications Minister ET (Bob) Richards was not available for comment on the Cable & Wireless request.

The company also announced it was in negotiations with the Bermuda Public Service Association regarding the reduction of staff. The company estimates it has lost about 25 percent of its market share to TeleBermuda.

Cable & Wireless has about 123 staff in Bermuda, 94 percent of which are Bermudian.