Britain has no "hidden agenda'' to put its Overseas Territories which are offshore financial centres, out of business a British Minister has said.

UK Minister of Overseas Territories Baroness Elizabeth Symons made the comments in a speech to bankers and government officials in the Cayman Islands last week.

She said the White Paper on the subject, to be published this month, would demand that governments of offshore financial centres including Bermuda and the Cayman Islands implemented high standards of regulation.

But she argued: "The UK government is committed to the prosperity and development of the Overseas Territories.'' And the White Paper would "emphasise that Overseas Territories should continue to adopt and maintain high international regulatory standards, especially on offshore business.'' Britain's Financial Times newspaper reported that her comments had soothed several governments -- although it did not specify which ones.

British Foreign Secretary Robin Cook promised a year ago to deliver the White Paper on the future of the British Overseas Territories by November last year, to be followed by December 1998 with a checklist of compliance.

But that deadline lapsed with no official report produced.

Offshore centres like Bermuda, the Channel and the Cayman Islands are under pressure from the European Union, the Group of Seven economic giants, the Organisation for Economic Cooperation & Development, and the UK on its own.

Those major economic powers want centres like Bermuda to meet new standards of openness in international financial dealings.

But it is generally feared the powers will force the offshore centres into amending their tax regimes.

The offshore centres -- which impose no tax or very low taxes -- have rejected claims that they present "unfair tax competition'' and say they are already tightening controls on money laundering and other financial crimes.

This latest speech by Baroness Symons was heralded as an attempt to ease the concerns of offshore centres worried about the major powers' efforts to force change to tax laws.

A recent British review of regulations in the Channel Islands' saw the definition of financial crime extended to tax evasion -- putting extra pressure on Overseas Territories to adopt laws which would force bank records open.

But Baroness Symons said the planned legislation by Britain on offshore financial activity in its Overseas Territories was not intended to attack business.

Bermuda's Government has argued the Island is not a tax haven since it taxes its international and domestic companies in exactly the same way and has anti-money-laundering-laws on its books.

Several offshore centres' governments remain concerned about recent comments by regulators in the US and Europe describing regulation of their financial sectors as "inadequate''.

And the major powers have suggested this oversight allowed money-laundering to occur.

GOVERNMENT GVT