A political row over high-tech trade on the worldwide web could dent Bermuda's chances of taking a lead role in the new industry, it was claimed yesterday.

And Anthony Nagel -- a top executive at Bermuda-based Full Trade System Ltd., set up to promote multi-million dollar electronic commerce -- warned that negative signals could put off investors and customers.

The wrangle broke out after Finance Minister Grant Gibbons earlier this month trumpeted e-commerce as the potential "third pillar'' of the Island's economy, alongside tourism and international business.

PLP Finance spokesman Eugene Cox warned that e-commerce "could work in opposition'' to efforts to keep the Island off a blacklist of dodgy financial jurisdictions -- especially as the Organisation for Economic Cooperation and Development is currently eyeing Bermuda as part of its crackdown on "harmful tax jurisdictions''.

But Mr. Cox spoke on the eve of a major OECD conference in Canada -- designed to promote the new way of doing business to its members.

Now Mr. Nagel has asked both Premier Pamela Gordon and Progressive Labour Party leader Jennifer Smith to visit his firm's offices in a bid to allay fears over the business.

Mr. Nagel said: "Everyone admits there are issues -- it's the way the message comes across. It means we have to work a lot harder to get back to the position we were when we started.'' He added: "If something comes out in a negative way that causes more problems than not saying anything at all.

"I don't know if it damages -- but it certainly doesn't help.'' Mr. Nagel explained he had referred customers and financial backers wary of doing business in Bermuda to The Royal Gazette reports on Dr. Gibbons' endorsement of e-commerce.

Mr. Cox also said that Bermuda "had to be mindful of the uses'' e-commerce could be put to.

But Mr. Nagel said: "What was quite neat was when Government and Grant Gibbons came out with their plans -- only to find the next day a totally different message was put forward by the Opposition.'' Full Service Trade System was set up in 1996 with the aim of promoting e-commerce in Bermuda.

The firm -- which currently employs 12 people, seven of them Bermudian -- developed suitable software for e-commerce and is now marketing it.

It is understood the firm has already spent millions in Bermuda -- and is currently seeking millions more, including cash from overseas, to develop and market its product on a global basis.

Mr. Cox last night repeated claims that his remarks had been misinterpreted by the UBP.

And he said: "If anyone wishes to get any information on how we feel about finance, they should contact us.''