Bermuda-based businessman John Deuss acted as cheerleader for a bid to raise cash from international business for a new Tourism Ministry HQ, The Royal Gazette can reveal.

And it was Mr. Deuss -- not Cabinet Office -- who contacted leading lights in the business world to try and drum up money for a prestige location for Tourism Minister David Allen.

Premier Jennifer Smith and Mr. Allen both denied that a letter had gone from Cabinet Office asking for donations to help buy a $5 million estate following an article in the Mid-Ocean News last Friday.

But neither mentioned that a letter had gone out from Dutch-born oil and banking magnate Mr. Deuss -- once slammed for selling oil through his companies to racist apartheid South Africa -- or said who he had talked to within Government before pushing the appeal.

And Mr. Deuss -- chairman of the Bermuda Commercial Bank -- also contacted other Island business chiefs by telephone in a bid to get them on board.

Business bosses were yesterday staying tight-lipped over the row which erupted over funding for the luxury Craigmore property on Pitts Bay Road near Hamilton.

But one -- who saw a copy of a letter from Mr. Deuss -- said: "It basically said that they were looking at Craigmore because the Department of Tourism didn't have a place and he thought it was a good idea if international business assisted.

"I'm sure there was something in there about matching funds from Government.'' The source added that the letter did not mention Mr. Deuss having talks with Government over the appeal.

He said: "Absolutely not that I remember. If I was to make a stab at it, it would not have said they asked.

"But he was pushing it and he said he had one big commitment from an international company.'' The source added: "I would imagine Mr. Deuss would have talked to someone in Government.'' And he said: "I wouldn't think it would be received very favourably among the business community.'' Cabinet Office -- through Government Information Services -- was last night asked a series of questions on the row -- including who in Government had spoken to Mr. Deuss and whether it was considered that the Premier and Mr.

Allen had only given the partial truth about the fund-raising bid in Parliament.

No answers were received.

Mr. Deuss was called at the offices of Transworld Oil, which he operates from Bermuda.

An assistant said: "I really can't comment. I don't know anything about it. I will type in a message. If he cares to comment, he will.'' Mr. Allen did tell the House of Assembly last week that the Ministry was looking to move and said Government had looked at "all sorts of properties and turned down all sorts of properties''.

And he is understood to have viewed Craigmore, which is now under contract to a private buyer.

Opposition leader Pamela Gordon said last night: "It's unlikely that anyone would have written a letter to the business community on behalf of the Bermuda Government to attempt to acquire a building without the express knowledge of the same Government.

"It's increasingly apparent that this is a shameful example of hiding behind the flimsiest of distinctions.

Deuss in appeal for cash the law while violating the spirit of the law. There must be accountability.

"If the Government will now acknowledge the role that they have played in this whole scenario, they must speak up and inform the public. They cannot continue to dupe the people of Bermuda.'' Shadow Tourism Minister David Dodwell added: "The Premier was aware of this letter -- one of the rejections was made verbally and the Premier was told that this company was not able to support it because they hadn't had the best of years, they hadn't been treated fairly from the tax point of view and that they didn't believe it was the right thing to do.'' He added: "We have been misled by the leader of the Country and the Minister of Tourism. What has become clear over the week is that a letter does exist.

"Both the Premier and the Minister of Tourism need to come clean to the public.'' Mr. Deuss has based businesses in Bermuda since the 1970s. He came under fire in 1986 from European anti-apartheid groups for selling oil through subsidiaries to Afrikaner-dominated South Africa.

At the time, a UN General Assembly-declared oil embargo was in force, although that decree was not binding on states.

Mr. Deuss insisted the sales were not an endorsement of apartheid and in 1987 announced his oil empire would stop doing business with South Africa -- although he added he was still not in favour of sanctions.