wealthy American grain heiress began to back out of the sale of Perot's Island, Supreme Court was told yesterday.

Mrs. MacMillan eventually signed a deal to sell the island retreat in Riddell's Bay to Canadian businessman Mr. Michael DeGroote for $8.5 million.

But later, she changed her mind. Mr. DeGroote is in court trying to seal his claim to the island.

Government Senator Jerome Dill, Mrs. MacMillan's former lawyer, told of realtor Ms Jonelle White's concern during his second day of testimony.

In a memorandum dated August 28, 1990, Sen. Dill said he spoke to Ms White of the Bank of Butterfield Executor and Trustee Co. Ltd. (Betco) and Ms White was "particularly concerned Mrs. MacMillan might now decide she was not prepared to sell the property''.

Sen. Dill said he assumed Ms White was worried about losing her commission on the sale.

"Real estate agents are in the business of selling property, and upon the sale of property, earning commission,'' Sen. Dill said. "It seemed to me to be a natural concern'' when "a sure sale became questionable''.

In a September 3, 1990 letter to Mr. DeGroote, his realtor also expressed dismay at Mrs. MacMillan's apparent change of heart. Mrs. Elaine Darling of Cooper Associates said in the letter that Ms White "spoke with Mrs. MacMillan in the hopes she would change her mind, but it did not work''.

The question of who was acting for the vendor and who was acting for the purchaser at pertinent times is an issue in the case.

In September of 1989, Joy Lusher Real Estate and Betco were granted exclusivity on the sale of Perot's Island, court has heard. But in November of 1989, Betco entered into a co-brokerage agreement with Cooper Associates.

"I was aware that Cooper Associates had introduced the purchaser to Betco, but I was not aware that there was a formal document governing the relationship,'' Sen. Dill testified on Tuesday.

On more than one occasion, Sen. Dill in memoranda appears to refer to Mr.

DeGroote as Ms White's client. In a Novenber, 1989 memo, Mr. Dill referred to Ms White having an opportunity "of having her client submit an offer'' for the island.

"That's loose language on my part,'' Sen. Dill told court. "By my client, my Lord, what I meant was in actual fact a purchaser introduced to Mrs. MacMillan by Jonelle White.'' In a September, 1990 letter to Ms White, Sen. Dill said Mrs. MacMillan had withdrawn Perot's Island from the market, but "if your client is prepared to make an offer of $8.5 million, that would be considered''.

Sen. Dill testified there was no doubt he was referring to Mr. DeGroote, but he was mistaken in identifying the millionaire as Ms White's client. As a lawyer, such a mistake is easy to make, he said. "It's extremely easy to speak in terms of my client and your client.'' After advising Ms White that he would be away from Bermuda the week of September 16 and would contact her the following week, Sen. Dill said he was surprised to learn upon returning that Mrs. MacMillan and Mr. DeGroote and his wife had met for breakfast.

As a deal for Perot's Island was about to be consummated, Ms White wrote Sen.

Dill on October 23, 1990 asking that a clause be included in the agreement which would allow Cooper Associates to split the commission with Betco.

In an October 21 facsimile message to Cooper Associates, Ms White referred to Cooper's "efforts on behalf of the vendor''.

But Mr. Dill said he was unaware of any efforts Cooper undertook on Mrs.

MacMillan's behalf.