Tourism Minister David Dodwell yesterday sought to deflect flak against Government over the Club Med controversy.

And he revealed more talks with Club Med officials would take place shortly, perhaps in the next two weeks.

Mr. Dodwell was speaking after Club Med outlined its latest proposals for reopening the St. George's hotel.

"It's not as simple to resolve this issue as some would suggest. Yes, you can't go on negotiating forever.

"But what is the alternative? Litigation could take two or three years and then what happens if the property ends up in Government hands?'' Government has come under fire from the Progressive Labour Party for allegedly dragging its heels on resolving the issue.

Last month, Opposition PLP Senator Terry Lister called for Government to clear the air over Club Med.

"It is time for Government to say whether Club Med will open or not open,'' he declared.

Shadow Tourism Minister David Allen has also voiced disappointment at prospects of another delay in reopening Club Med's Bermuda property. He believed the company was stalling.

The 340-room property overlooking Fort St. Catherine has stood empty since closing in 1988.

Recently, Mr. Dodwell disclosed Club Med had approached Government with high hopes of reopening the hotel in May 1997. But now the company is looking at a reopening date of spring 1998.

Yesterday Mr. Dodwell said Club Med was still in negotiations with a US-based company about a possible partnership.

"I can't name the company until an agreement has been reached.'' Mr. Dodwell said Club Med officials this week presented him with more detailed proposals for the St. George's property. And he asked them for additional information.

He declined, however, to reveal details on the proposals.

"Club Med took the position they had broadly outlined late last year, but in a more definitive form.

"Now they have gone back to do some more homework and will be getting back to me shortly.

"We believe they are making a genuine attempt to reopen the hotel and are looking at the financial viability of doing so.'' He added: "Obviously, it's important that when we look at Club Med's proposals I, as a minister, have to look at the impact they would have on the rest of the hotels in the industry.

"The other thing to bear in mind is that the operation of hotels and their financial viability have changed so much in the last five years that we have to be prepared to listen and explore what are the current trends and what the hotel industry is doing in other parts of the world.'' Mr. Dodwell said he hoped to hear back from Club Med in the next two weeks.

"We have been staying the course. I want to see that hotel open in some shape or form.'' Mr. Dodwell said he did not discuss with Club Med officials reports that the company's earnings had slipped.

A recent article in America's Business Week magazine stated Club Med, which manages 110 resorts, was looking more and more like a takeover candidate.

Club Med's sales last year "wobbled downward'' to $1.6 billion, slightly lower than in 1995, the article added.