Bermuda is to get the option of ditching the Island's final appeal court in London and signing on for a new Caribbean Court of Appeal, The Royal Gazette can reveal.

The Island could reap a share of an extra $800,000 in UK cash to boost the regional Police battle against drugs and help pay for overseas students' studies in the UK. But last night, a UK Foreign Office spokesman stressed the current last legal stop -- the Privy Council -- would still be open to Overseas Territories if they wanted it.

He said: "The UK continues to be content for Caribbean countries and Bermuda to use the Judicial Committee of the Privy Council as their final court of appeal.'' He added the UK would not stand in the way of the territories if they wanted to join the new set-up.

The spokesman said the Caribbean Court of Justice was "a matter solely for the countries concerned''.

Neither Premier Jennifer Smith, attending the UK/Caribbean Forum, nor Attorney General Dame Lois Browne-Evans could be contacted for comment last night.

Attempts were made to contact Ms. Smith at her London hotel.

Last year, Dame Lois backed Bermuda retaining the Privy Council after the UK's senior judge in the House of Lords, Lord Browne-Wilkinson, said it was time to end the court's role for Commonwealth countries and colonies.

Some territores or countries, which retain the death penalty against UK and world trends, resent the Privy Council's practice of commuting death sentences to life imprisonment and want to form a regional appeals court. The death penalty was abolished here last year.

The extra cash was announced by UK Foreign Secretary Robin Cook on the first day of the UK/Caribbean Forum in London yesterday.

Option to ditch Privy Council And Mr. Cook also promised to consider creating an inward investment office in his Ministry aimed at attracting more foreign investment to the Caribbean region -- which includes Bermuda.

The news came on the first day of the forum, attended by Ms Smith, Finance Minister Eugene Cox and Education Minister Milton Scott.

Opening the conference, Mr. Cook said: "The UK/Caribbean Forum is another step in the process of consolidating the already close relationship between the UK and the countries of the Caribbean. It is an opportunity to develop the partnership through which we can help the countries of the region address the serious challenges it faces. The forum will offer the prospect of developing consensus on how these challenges might be faced and the way in which we can add value to each other's efforts.

"We hope to secure agreement on a number of positive proposals. I hope the forum will serve further to underline the UK's commitment to the region.'' The second of the biennial sessions of the forum was called to discuss economic issues, justice and security. Participants include former UK colonies, the Overseas Territories and other Caribbean states. Some other nations are invited, but with observer status only.

Former Premier Pamela Gordon, then-Finance Minister Grant Gibbons and ex-Attorney General Elliott Mottley attended the first forum, held in Nassau, Bahamas.

Earlier, Mr. Cook quashed rumours that Prime Minister Tony Blair was set to replace him.

Reports speculated that Northern Ireland Minister Peter Mandelson would take over the Foreign Office, with Scottish Mr. Cook, who represents a seat just outside Edinburgh, moving on to become First Minister of the new Scottish Parliament. To do that, Mr. Cook would have to resign his Westminster seat and fight an election for a Scottish Parliamentary constituency.

But Mr. Cook said: "For the avoidance of doubt, I am thoroughly happy as Foreign Secretary and intend to go on serving my constituents at Westminster as long as they are happy to send me there.'' Photo -- AP Caribbean forum: British Foreign Secretary Robin Cook poses with delegation heads to the UK aribbean Forum at Lancaster House, London yesterday. Premier Jennifer Smith is pictured second left, centre row.