The United Kingdom Government is keen to find an interim solution to the issue of Bermudians getting UK passports, according to Deputy Governor Tim Gurney.

And he added that Premier Jennifer Smith had met with Baroness Scotland on Friday to talk about constitutional changes.

Speaking at the International Companies Division of the Chamber of Commerce Annual General Meeting and lunch yesterday, he also said that there would be a new Governor some time this year.

He said:" Government House shares Ministers disappointment that time was not found in the Parliamentary timetable. We are still not sure when we can expect progress, especially with pundits predicting an election in May. But the UK Government has reiterated its commitment, but some times it is hard to reassure people. And we are keen to find some interim administrative arrangements.'' In December there was frustration and disappointment on the Island when the Overseas Territory Bill was left out of the Queen's Speech delivered to the British Parliament.

The bill would have allowed Bermudians to have UK passports which will allow them to both live and work in Europe.

It will give British citizenship to all the British territories on a non-reciprocal basis.

Another issue touched on by Mr. Gurney was constitutional change. He said to the hundred or so members of the ICD: "Baroness Scotland and her team take a keen interest in constitutional matters. She had a meeting with the Premier and a meeting with Pamela Gordon and Kim Swan. She has to balance Government's wishes with the opposition's views and a significantly sized petition calling for conferences and a referendum, which is not easy. The view is that there is a room full of lawyers pouring over every detail. Sadly, the FCO don't have rooms full of them, so they are not always as quick as everyone would want.'' Shortly before Christmas, the FCO received the motion passed by the House of Assembly calling for a boundaries commission to be set up to cut the number of MPs and introduce single seat constituencies.

The FCO has said the UK Government wants to examine the entire block of proposals before recommending the Privy Council in London -- Bermuda's highest judicial authority -- accepts the plans through an order in council or rejects them.

The United Bermuda Party has submitted a petition with 7,821 signatures calling for a Constitutional conference and claims Bermudians have not been fully consulted about the proposed changes.

And he added that there would be a new Governor later this year, joking that the former Secretary of State for Northern Ireland Peter Mandelson's name had gone into the hat yesterday after news emerged that he had resigned.

He said: "On the issue of a new Governor -- some time this year, but there are no candidates on the horizon. But we have all heard the speculation, Mo Mowlam, John Prescott, Jack Cunningham, John Major, or even Shaun Goater.'' In April The Royal Gazette revealed that the Governor Thorold Masefield was to stay on beyond his original three-year term.

Governors are generally appointed for three years and Mr. Masefield took up the job in June, 1997.

But most Bermuda Governors, like Mr. Masefield's predecessor Lord Waddington, stay on beyond the original posting.

There was speculation at the time that the name of the former Northern Ireland Secretary Ms Mowlam was being put forward for the job, making her the first woman Governor in Bermuda's 400-year history.

But Mr. Gurney said that while the Governor was leaving, he himself would be staying on for a further two years.

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