The UK has no plans to force offshore jurisdictions to shut up shop, the London UK/Caribbean Forum final report said yesterday.

And Bermuda and Caribbean Community (CARICOM) will discuss setting up joint catastrophe insurance for the region -- especially for hurricanes, which are increasing in number and intensity.

A joint statement from the Forum said: "The UK made clear that there was no question of forcing offshore centres out of business.

"In the future, the distinction would not be between onshore and offshore centres, but between those jurisdictions which met international standards and those which did not.'' It added: "The UK and Caribbean delegates both stressed the importance of transparent regulatory and taxation environments with appropriate information exchange and the need for international standards applicable to all.'' The news came in the wake of plans by the international financial watchdog Organisation for Economic Cooperation and Development (OECD) to unveil a hit list of dodgy jurisdictions which play outside the rules. Bermuda -- part of the Caribbean region for the purposes of the Forum -- has fought for more than two years to convince the OECD it has clean hands.

The statement continued: "The Caribbean side expressed its concern at the timetable and methodology of the OECD initiative on harmful tax and in particular the burdens which it imposed on smaller countries.'' And the communique showed signs of softening on the part of the OECD, which has already been reported to be in disarray over the controversial proposal.

The report on the London conference said: "The US and OECD endorsed the points made by the UK and expressed the view that the OECD initiative had developed to take into account of the wish of many countries to enter into a dialogue with the OECD.

"The Caribbean side reiterated that the most effective method of dialogue and consultation is a multilateral forum where international standards could be agreed and developed by all, on a global basis.'' The report added: "Delegates highlighted the unique challenges facing small states and the need to factor these into policy processes.

UK seeks to calm `hit list' fears "They emphasised the need for external assistance to help the region prepare for and recover from the natural disasters that are increasing in frequency and intensity.

"CARICOM and the Bermudian Government will discuss the first steps for a group to discuss establishing catastrophic insurance coverage for the region, particularly as it relates to hurricane damage.'' The final report on the conference, which ended at the weekend, was issued through the UK Foreign Office.

Government's Information Services was last night unable to obtain comment on the report from Premier Jennifer Smith, who led the Bermuda delegation to London.

The report added that a new committee to steer the work of the UK/Caribbean Forum is to be set up. Now an international committee -- which will include a representative from the Overseas Territories -- will meet in London at least every six months to report progress on issues raised for action and draw up the agenda for the next full forum, to be held in Guyana in 2002.

The committee will be jointly chaired by a representative from the UK Foreign Office and the chairman of the CARICOM Council for Foreign and Community Relations.

The report added: "The Forum agreed on the importance of integrating the region more effectively into the new world trading system.

"In this regard, the Forum commended the report of the Commonwealth Secretariat and World Bank on the challenges faced by small states, given their specific vulnerabilities and the recommendation that special consideration be given to them.''