of its relations with its colonies spelled trouble for Bermuda's booming offshore business.

And fellow pro-Independence campaigner Rolfe Commissiong branded the offer as "British citizenship lite -- like Miller Lite.'' Mr. Perinchief said: "The way I see it, the White Paper may bring some short-term comfort to the international community.

"But it's clear the very real threats have not gone away -- there is some suggestion there will be a move against tax evasion and avoidance.

"And companies which set up business in Bermuda are tax-driven -- these companies are not here for sun, sea, surf and smiles.'' Mr. Perinchief added that Bermuda would be labelled a tax haven by international watchdogs -- despite the Island's insistence it is a low-tax, not a no-tax, jurisdiction with a level playing field for both international and Island firms.

And he predicted organisations like the European Union, the Organisation for Economic Cooperation and Development and the UN had tax-free profits and dividends in offshore jurisdictions firmly in their sights.

UK Foreign Secretary Robin Cook announced on Wednesday that British Overseas Territories citizens would be eligible for full UK passports.

Mr. Cook stressed the offer was not tied to conditions -- but warned that full partnership with the UK would mean Territories coming into line with British treaty obligations on human rights and financial regulations.

Mr. Perinchief added he was surprised Premier Jennifer Smith had said Bermuda had nothing to fear from the White Paper.

He said: "I would like to know what White Paper the Premier read, because it's a very threatening document. It's a Pandora's box and it should be rejected out of hand.'' And he insisted: "Bermuda is a tax haven and defined as a tax harmful jurisdiction.'' Mr. Commissiong backed Mr. Perinchief's view that sections in the White Paper on good government and offshore status were a real threat to the Island's prosperity.

He said: "Therein lies the real cause for concern, particularly for the international business community and, of course, the Government and people of Bermuda as well.

He added: "The bottom line is, while citizenship is a separate issue, one has to be aware that other initiatives which are taking place, like the Organisation for Economic Cooperation and Development investigation into tax havens, are inextricably linked in with this.

"Britain is a member of the OECD -- it's hard to see it as an honest broker when, down the road, Bermuda's investors could be at odds with the UK, Europe and the OECD.''