defeat is set to be launched by the National Liberal Party.

Now the party -- reeling from a third place and just nine percent of the vote in Devonshire South -- is to launch a membership drive.

The move comes after a general membership meeting of the party in Devonshire on Monday.

Party chairman Charles Jeffers, who stood himself in the by-election, said the membership were behind a new challenge to continue as the third force in Island politics.

The party laid part of the blame for the poor showing in the by-election on inadequate party machinery.

But Mr. Jeffers added: "New members also promised to be active participants and do whatever they could to help the cause.'' He said the meeting threw up several ideas for growth, organisation and fund-raising.

A second meeting of the party faithful is planned for Monday, June 23 and Mr.

Jeffers said organisation and fund-raising will again be "high on the agenda''.