be scuppered by an escalating air and trade war between London and Washington.

US politicians this week threatened to deny landing spots for British planes and impose sanctions because the UK Government will not ratify a new "open skies''aviation deal.

But the Transportation Ministry is already studying Tuesday's developments, and has contacted a consultant.

Both countries are at loggerheads over plans to update the Bermuda II agreement signed in 1977 which restricts at London Heathrow for Trans-Atlantic flights.

The Department of Tourism has said it would like to open up new flight routes to Frankfurt, Chicago and Miami, but any of these routes would need to be ratified by Britain and the US.

Transport permanent secretary Herman Tucker said last year that if the stand-off continued, Bermuda's chances of securing new routes would figure near the bottom of the agenda.

The US House of Representatives this week raised the stakes in the stalled talks by threatening to deny landing berths in the US to British planes.

Under Bermuda II, only British Airways, Virgin Atlantic, AMR Corp.'s American Airlines, and UAL Corp.'s United Airlines can use Heathrow for Trans-Atlantic flights.

As an overseas dependent territory, Bermuda is bound by the agreement.

Attempts by US President Bill Clinton and British Prime Minister Tony Blair have failed to secure a new agreement.

In written testimony to the House transportation aviation committee, the British Government objected to the US "open skies'' proposals because it feels it would effectively give US carriers acess to greater Europe while denying the US domestic market to British carriers.

US Committee chairman Republican Bud Shuster, referring to the threat of denying berths to British carriers at New York's John F Kennedy Airport and Chicago's O'Hare Airport, said: "I hope it doesn't become necessary, but I am not at all timid about including this if that seems the best way to go.'' Indiana Republican Edward Pease added: "I want you to know that I would consider a number of trade sanctions at this point if that is necessary.'' Last night Transport Minister Ewart Brown said the Island's aviation consultant, Hugh O'Donovan, had been asked to "look into the situation''.

"We have been keenly observing the developments and are very concerned that the talks were unsuccessful,'' Dr. Brown said.

"Bermuda has much to gain or lose depending on the level of cooperation between the US and the UK.'' While optimistic there will be a solution to the disagreement, Dr. Brown admitted that an "aviation fight between those two countries'' could affect the Island's chances at opening new air links.