Assembly debate on the UK's pledge to improve relations with its Overseas Territories.

And Premier Jennifer Smith and Opposition leader Pamela Gordon clashed over the bill for overseas trips in the opening round of the debate.

Ms Smith leapt up after Ms Gordon accused Government of being spendthrift in its travel costs.

Ms Gordon said: "It's not their responsibility just to go off and enjoy these trips -- no one has concern about trips being made.

"The only concern that we have is the degree of expense incurred as a result of these trips and what we're looking at is excess amount of travel -- the first class trips, the limousines the champagne, all of it being paid for by the taxpayer.'' But Ms Smith snapped back: "Government expenditure does not cover alcoholic drinks of any kind.'' And she told MPs that a stretch limousine used to transport her at a Texas reinsurance conference was provided courtesy of the conference organisers -- not the Bermuda taxpayer.

The travel row broke out after Ms Gordon said that Government had failed to keep the public in touch with developments over the White Paper and probes into offshore jurisdictions by international watchdogs like the Organisation for Economic Cooperation and Development (OECD) and power blocs like the EU.

She said: "People wanted to know what results have been obtained from all these trips.'' And she added: "There is supposed to be a separation of powers of Civil Servants versus Government and unfortunately, somewhere along the line the two are getting very closely intertwined.'' Earlier, Finance Minister Eugene Cox said Bermuda had been locked in talks with the UK, the OECD and EU on plans to draw up hitlists of dodgy offshore jurisdictions.

And Mr. Cox added that a blizzard of financial legislation tabled this Parliamentary term ought to keep Bermuda in line with international requirements -- and out of the bad books.

He added: "We are making every effort to meet the requirements that are being asked of us.

"We have moved on a number of these, not so much because of the White Paper, but because we were already in train to do that.'' And he explained that Bermuda banks wanted to expand abroad and a strong regulatory body was required to be "responsible for keeping them in check.'' Mr. Cox added that White Paper-inspired review of Bermuda's financial set-up would take place in the autumn, to be carried out by independent auditors, at an estimated cost of around $750,000.

A four-strong group -- with two UK representatives and two from the Territories -- is likely to set the terms of reference for the reviews and consider the results.

Mr. Cox said: "We are trying to get three representatives from the Overseas Territories, but we will have to put some money into it.'' And he added that Britain would pay 60 percent of the costs of the review process, with the Territories paying the rest.

And he fired a warning shot across the bows of those calling for Bermuda to slip its ties to Britain and sail on alone.

Mr. Cox said: "For those persons who have been making some very strong statements with respect to the Constitution, you shouldn't in my view.

"We have to watch how we deal with all these external issues which we find ourselves addressing.

"We have to protect Bermuda's best interests -- but we shouldn't use up our options prematurely.

"These people who are saying we should rush and make a final decision when the decisions need not be made are wrong.'' Mr. Cox added that he had found that the UK Foreign Office and Treasury appeared to be at odds over financial regulation.

He said: "While I don't want to be critical of the Foreign Office, we do find that it is not always in sync with what the Treasury is saying.

"There has to be a gap between the two entities while one is dealing with Britain's interests solely and the other is looking at the interests of Britain and the interests of its Territories.''