building lots in a multi-million dollar sell-off, it was revealed yesterday.

But the controversial move would need to win planning permission -- although it would appear because of the zoning of much of the land, Government could do little to halt a piecemeal sale.

One planning expert said: "The zoning appears to provide the potential for that kind of development.'' But he admitted: "I'm sure anything like that would be frowned upon by many people.'' The planning expert added the Residential Two zoning of much of the Chelston estate -- estimated to be worth as much as $15 million -- would not rule out development on the site at an approved rate of two houses per acre.

Some of the rolling 14 acre-plus estate's land however, is listed as agricultural land and woodland -- making building on those areas much less likely.

The news came as US Consul General Bob Farmer admitted the US could consider selling the house on its own and the land in three to four acre plots.

And he said that pressure on the State Department to have representation across the world -- including a host of new nations formerly part of the Soviet Union -- meant Chelston, home to US Consuls since 1964, may have to be sacrificed, for a cheaper, smaller, property.

He added: "There is a possibility that this could be divided into several estates with three to four acres apiece.'' And the expert said: "Three to four acre plots would maintain the character of the area. It wouldn't spoil it.'' He added: "You could argue that, if it's divided up into vacant lots, even at that size, it has to be sold to Bermudians.

"But if its all sold in one chunk, it's much less likely a Bermudian would own it.'' He admitted, however, Bermudians could buy the land, build houses and then sell them on to outsiders.

Mr. Farmer stressed that a final decision to sell Chelston had not been made.

He said: "We have not put Chelston on the market, we do not have an idea of what it's worth and we have not found any alternative.

"We are very serious about selling Chelston -- we're still in the information-gathering phase of what could be a lengthy process.

"Once this information is complete, a decision will be made by the State Department in Washington.'' But he said several inquiries about the property had been received from the Island and abroad "both from a development and single estate standpoint''.

He added: "We can obviously not respond to these inquiries until a firm decision has been made.'' But he said a team of lawyers, property appraisers and listing agents sent by the US State Department had visited the Island last week.

Mr. Farmer added that 20 properties which were thought to meet security restrictions and were of a suitable size for entertaining and putting up guests had been considered and 14 visited last week alone.

Former Director of Planning Erwin Adderley -- now in private practice and a Pembroke West MP -- said any change of use would depend on the zoning of the land.

Mr. Adderley, noting he did not have the relevant documents available, admitted if the zoning was appropriate, there would be little Government could do to stop the estate and the historic house being split up and sold off.

On Saturday, The Royal Gazette reported that Huntley Manor, a Victorian mansion sitting in Middle Road, Paget was one of the replacement properties looked at.