Controversial proposals to reopen Club Med in St. George's as a timeshare property would reap rich rewards for Bermuda, it was claimed at the weekend.

Club Med spokesman Joseph Townsend said the plan would boost jobs and tourism and pull in hard currency.

"We believe the timeshare plan provides the only possible solution for Bermuda and the people of St. George's,'' he told The Royal Gazette from Club Med offices in America.

"It would bring repeat travellers to the Island all the year round.'' Asked whether he was optimistic about pulling off the timeshare scheme, he said: "I'm always of the opinion the glass is half full. That's the way I am.'' Mr. Townsend, senior vice-president and secretary/treasurer of Club Med in New York, hotly disputed Opposition Progressive Labour Party claims timeshares were not "labour-intensive''.

"We disagree. This plan would create full-time jobs for Bermudians. They would be varied jobs -- the type you expect in the hotel industry.'' Meanwhile, it has emerged Bermuda's former Attorney General Saul Froomkin is representing Club Med in its legal fight with Government.

Mr. Townsend confirmed he flew to Bermuda this week to talk with Mr. Froomkin.

"I think the decision to take legal action does not help matters but we respect the Bermuda Government's decision.'' Mr. Townsend was speaking for the first time since Tourism Minister David Dodwell announced the relaunching of legal action to decide whether Club Med was in breach of its lease with Government.

The move signalled the end of hopes of the St. George's hotel reopening next year.

Mr. Dodwell said a study on tourist properties, timesharing and condominium ownership would have to be conducted before considering Club Med's conditions for reopening the property.

The conditions included removing almost entirely the regulatory controls from the Timesharing (Licensing and Control) Act 1981 and extending the current timeshare ownership from 25 years to 99 years.

Others included granting work permits to timeshare salespersons to work in Bermuda, Customs duty deferrals and deferral of gratuity payments to workers in the hotel.

Mr. Dodwell said the survey would probably take six to nine months to complete.

Speaking to the House of Assembly recently he said: "I have advised Club Med that if they wish to continue to pursue the reopening of Club Med as a timesharing establishment, they must wait until the study of trends in visitor accommodation is completed and the findings used to shape the future course of Government policy on such matters.'' He added: "At the same time, I have informed Club Med that court proceedings will be reactivated immediately with the appointment of an arbitrator to settle the issue of whether Club Med is in breach of the lease with Government, pursuant to determining the lease.'' Mr. Dodwell said the court action could drag on for two or more years.

The 340-room property overlooking Fort St. Catherine has stood empty since closing in 1988.

Yesterday Mr. Townsend said Club Med was in negotiation with a company, publicly traded on the New York Stock Exchange and well known as a timeshare developer.

"We have provided Government with the appropriate conditions we feel are needed to make the plan work and produce hard currency for the Island and bring in tourists. We look forward to working with Government.

"This seems the most financially viable solution for the people of Bermuda.'' He added: "Hotels on the Island have their own difficulties and this timeshare proposal seems to be a solution which would bring repeat travellers back to the Island all the year round.

"Given the appropriate approvals we are raring to go. All studies have been done.'' Mr. Townsend said the benefits of a timeshare option would extend beyond Club Med, boosting Bermuda tourism generally.

He said the conditions presented to Government over the timeshare proposal were not set in concrete.

"Everything is negotiable,'' he declared.

He added: "We were asking for a change to an Act which discourages timeshares and is ten or 15 years old.

"Tourism in Bermuda has been on the downside for the past seven years or so and we believe if Bermuda wants to rejuvenate the industry a timeshare is the vehicle.'' Mr. Townsend voiced disappointment at Government's decision to restart legal proceedings.

But he added: "We will continue to pursue in an honourable fashion the opening of a timeshare resort. And we will defend our rights legally.

"The Minister is right in saying legal action could take at least two years to resolve.'' Mr. Townsend said Club Med would be providing Government with a "final document'' outlining its detailed proposals within the next ten days.

"I am optimistic. The ball is really with Bermuda Government now.''