Bermuda is already on a European Union hitlist of "harmful tax'' jurisdictions, Britain's Opposition Conservative Party has revealed.

And the UK Tories warned that the EU was out to get the offshore industries based in the UK's Overseas Territories.

According to documents leaked to the UK Opposition, a total of eight tax exemptions available in Bermuda, BVI, the Caymans and Turks and Caicos have been singled out by the EU.

The documents were obtained by the UK Opposition after an interim report to European Finance Ministers from a working group under British Paymaster General Dawn Primarolo.

Finance Minister and Acting Premier Eugene Cox said Bermuda had been working for a year to make clear its position that it is not a "harmful tax'' jurisdiction.

He added: "I'm hopeful that the myths and misconceptions about Bermuda will be corrected.'' Mr. Cox added: "On the basis of the receptions we have had so far, we're making very favourable progress.'' He added that neither he nor Premier Jennifer Smith had been making public statements on a series of probes by various international bodies into offshore tax countries.

But he insisted: "We've been very busy. We have set to make the proper representations -- that's why we've not made any public statements. We've been working behind the scenes.'' But Shadow Finance Minister Grant Gibbons insisted that the three-pronged attack by the EU, United Nations and financial watchdogs the Organisation for Economic Cooperation and Development demanded constant monitoring -- and close links with the UK powerbrokers who would have to represent the Island in some arenas.

And he added: "It's difficult to say what will continue to stay on the list and what won't as time goes on.'' Dr. Gibbons said: "We should have a closer look at provisions targeted and find out why these have been included and make a firm effort to state why these shouldn't be considered harmful tax preferences.'' The UK group was set up to examine nearly 200 tax concessions in the UK, its Crown Dependencies like the Channel Islands and the Overseas Territories and draw up a code for business taxation.

Concessions under the microscope include those for activities like insurance, the investment business, shipping and offshore banking, as well as UK tax exemptions for special development zones and the film industry.

See related story Business, Page 19 Bermuda already on EU's hitlist: UK Tories The Conservatives -- traditionally anti-European -- unveiled the documents as the UK gears up for elections to the European Parliament.

The disclosure -- in the prestige Daily Telegraph on Monday -- stoked the row over plans for tax harmonisation across the EU -- and by extension, its Territories.

And the Conservatives accused Labour Prime Minister Tony Blair of "seriously misleading'' the House of Commons last week when he insisted there was no secret list of 200 measures for ending unfair tax competition.

Shadow Chancellor of the Exchequer Francis Maude said: "We now know this was quite simply a lie.'' And he challenged the more pro-European Labour Party to publish full details of discussions on tax.

The Conservative European Parliament business spokesman demanded Mr. Blair apologise, sack his Paymaster General, and withdraw further UK cooperation from the probe.

UK Labour Minister for Europe Joyce Quin, however, insisted that Britain retained a veto over tax matters -- and that it was prepared to use it if the country's interests were threatened.

Eugene Cox