A terrorist bomb threat came close to Bermuda's shores yesterday.

But fortunately for the Island, US authorities and the local Emergency Measures Organisation (EMO) were prepared for the unusual incident which turned out to be a hoax.

The US-registered bulk carrier Liberty Wave was diverted to Bermuda late on Thursday, after US and local authorities heard there was a report of an explosive device on board.

The report came as the 36,000-ton vessel was en route from Galveston, Texas to Haifa, Israel -- north of Tel Aviv -- with 21 crew members and cargo of grain on board.

The Royal Gazette understands that an unidentified man, who was seeking to clear his conscience, called Israel's Jerusalem Post newspaper and claimed there was a bomb on the ship's hull and it was due to explode in the mid-Atlantic.

The paper contacted the US Embassy in Israel which in turn alerted the US State Department and the Coast Guard.

And after a five-hour EMO meeting -- which ended in the early hours of Thursday morning and involved Premier the Hon. Sir John Swan, Transport Minister the Hon. Maxwell Burgess, and Deputy Governor Mr. Peter Willis -- it was agreed to allow the ship into Bermuda's waters, subject to certain conditions.

"These conditions were designed to minimise the risk to Bermuda by ensuring Bermuda authorities could dictate if and where the ship would anchor, and when the ship would move, should that become necessary,'' Government said in a statement released yesterday.

The ship diverted some 190 miles off Bermuda late on Thursday and explosive experts were flown in from the US.

It was understood that the plan was to search for the explosive device that night. But unusually rough seas held up the mission. The ship was therefore kept outside Bermuda's reefs until yesterday when it was brought in six miles southeast of the Island.

Commanding Officer of the US Naval Air Station on the Island, Capt. Tim Bryan, Ship-board bomb scare proves to be a hoax From Page 1 supporting certain US Navy operational units and other federal personnel in their effort to sweep the boat both inside and out for explosive devices.'' Bomb experts thoroughly combed the ship for hours, before allowing it to continue on its voyage to Israel around 2 p.m. yesterday Marine bomb disposal expert Lt. Cmdr. Nigel Davis of HMS Malabar explained that if there had been an explosive on the ship's hull -- depending on its size and the way it was attached -- it probably would have come off in the rough seas.

Speaking after the scare, Mr. Willis said: "It was the first time I've seen EMO operate in a real situation. It worked exceptionally well.

"We were able to explore the issues involved and establish various contingency plans''.

The threat was thought to be linked to the recent arrest of the alleged chief plotter in New York's World Trade Centre bombing two years ago.

Ramzi Ahmed Yousef was arrested earlier this week in Pakistan and brought to the US to stand trial.

And yesterday US President Bill Clinton asked Congress to pass legislation making international terrorism committed in the US a federal crime.

The proposal would establish clear federal jurisdiction in the case of international terrorism in the US and would make it easier for the federal government to arrest individuals planning a terrorist attack overseas.

Yesterday Government also pointed out that it had a legal obligation to help, as a signatory to the international Safety of Life At Sea convention.

"The Government feels that as a member of the maritime community, Bermuda also has a moral obligation to do what it can to offer safety and comfort to ships and seamen whose lives have been put at risk in incidents such as these,'' it said.