FORMER United Bermuda Party Cabinet Minister Bill Cox says Premier Ewart Brown should thank backbencher Dr. Grant Gibbons for drawing the Government's attention to the stringent conditions of the US Foreign Corrupt Practices Act rather than excoriating him as a racist.

Mr. Cox, a former Education Minister and longtime Devonshire MP, said the law was introduced in the US after a series of scandals in the 1970s in which major US corporations bribed foreign officials to direct government business in their direction.

Earlier this month the Premier launched a vitriolic attack on Dr. Gibbons in the House of Assembly after the Opposition backbencher questioned the probity of an upcoming Progressive Labour Party fundraising event at which representatives of foreign companies are being asked to pay $25,000 a head to meet-and-greet Dr. Brown. Dr. Gibbons also asked questions in Parliament about the status of the unregistered charity Tourism Helps Everyone, headed by Dr. Brown's wife Wanda, set up to solicit funds for Government tourism projects.

Dr. Brown suggested Dr. Gibbons was a "racist dog" for broaching these topics and accused him of being the "uninformed representative of Bermuda's racist legacy."

However, Dr. Brown's predecessor, former Premier Alex Scott, has also talked openly of his unhappiness with the prospect of "sweetheart deals" emerging from the upcoming fundraising event and the dangers of political donors who could "buy into Government" and demand something in return for their money.

And Mr. Cox this week said Bermudian political figures needed to be fully aware of the FCPA's strict terms if the island is not to inadvertently set alarm bells ringing in Washington, DC.

"US Securities & Exchange Commission investigations in the mid-'70s disclosed that over 400 US companies admitted making questionable or illegal payments in excess of $300 million to foreign government officialsd, politicians and political parties and as a result the Congress passed the Foreign Corrupt Pratices Act (FCPA) in 1977 which makes it illegal to bribe foreign government officials to obtain or retain business," he said.Mr. Cox said the FCPA is violated if the following five elements are met:

The FCPA applies to any individual, firm, officer, director, employee or agent of a firm whether a US citizen or not who makes or authorises the payment of a bribe;

Such person must have a corrupt intent ? that is, the bribe must be intended to induce the recipient to misuse his official position to direct business wrongfully to the payer or to any other person;

The FCPA prohibits paying, offering, or promising to pay money for anything of value;

The FCPA extends only to corrupt payments to a foreign official or a foreign political party;

The purpose of the bribe must be to assist the individual or firm to obtain or retain business for or with any person.

"The Bermuda Government employs many US individuals and firms for tourist advertising, pension and other fund managers, operating hotels, providing consultant expertise and a myriad of other services," said Mr. Cox. "In connection with Dr. Ewart Brown's proposed Progressive Labour Party fund raising scheme it would seem unlikely that any US individual or firm would pay $25,000 and not expect something more than just one meal in return.

"It would also seem that Dr. Ewart Brown should have thanked Dr. Grant Gibbons for calling his attention to the possible relevance of the FCPA rather than calling him a racist dog."