The European Union (EU) yesterday announced diplomatic sanctions against Cuba - including scaling back cultural links - in protest at the Communist regime's recent execution of hijackers and crackdown on dissidents.

The move raises questions over Bermuda's recently revealed plans to develop a memorandum of understanding with Fidel Castro's government on cultural issues.

Deputy Governor Tim Gurney said yesterday he expected the Foreign and Commonwealth Office - which gave the Island the okay to develop the memo of understanding - to give advice on whether the EU sanctions will affect this move.

In a scathing statement yesterday, the current EU president Greece said it had contacted Havana expressing deep concern about "continuing flagrant violation of human rights" and of fundamental freedoms of members of the opposition and independent journalists.

Opposition Leader Grant Gibbons called on Government to abandon its closer links to Cuba in light of yesterday's EU sanctions.

The EU repeated its calls for Cuba to release all political prisoners, and stated it was "mindful of increasing reports about poor detention conditions of prisoners with serious health problems, and appeals to the Cuban authorities that in the meantime, prisoners do not suffer unduly and are not exposed to inhumane treatment".

The 15 member EU, which includes Britain, is Cuba's largest foreign investor and trading partner.

It announced the diplomatic moves in response to Cuba executing three hijackers and jailing 75 dissidents and independent journalists.

The European Commission recently froze Cuba's bid to join the Cotonou Agreement aid accord, and yesterday, according to a Reuters news agency report, the EU unanimously decided to limit bilateral high-level government visits and "reduce the profile of member states' participation in cultural events".

Mr. Gurney told The Royal Gazette last night: "The Foreign and Commonwealth Office had said that for the moment, they had no objection to Bermuda entering this relationship.

"Whether in light of what has been announced by the EU today there will be some change, no doubt the FCO will advise us in the next day or two."

Mr. Gurney said he had no information on whether Bermuda's planned memorandum of understanding with Cuba on cultural matters had actually been signed.

The Royal Gazette asked through Government's Department of Communication and Information, for comment from the Premier yesterday afternoon but received no response from Ms Smith.

US Consul General Denis Coleman has said he is "perplexed" at why Bermuda is pursuing closer links to Cuba when it is cracking down on dissidents.

The US has a long-standing policy of isolating the Caribbean island and Mr. Coleman said Washington is aware of Bermuda's recent moves to get closer ties with Cuba.

Opposition leader Dr Gibbons said yesterday: "The news from the EU puts the Smith government in an increasingly difficult position.

"They should do the right thing and retreat from their ill-advised adventure in foreign relations before it causes any more damage to Bermuda's reputation, and more importantly, any more damage to our relationship with the US.

"The timing and the judgment of the Smith government in developing a relationship with Cuba could not be worse.

"When it started two or three months ago, it coincided with some of the worst violations of human rights that Cuba observers had seen in many years.

"Not only is the Smith government swimming against the tide, but they are doing so at a time when Cuba's largest trading partner, the European Union, has launched a serious of diplomatic sanctions, including a limitation in the participation in cultural events."

Transport Minister Dr. Ewart Brown has announced Bermuda is to hand over old buses to Cuba and may sell old cars and ferries to the regime.