In New York for that meeting will be company director, Mr. David Doyle, senior corporate partner with Appleby, Spurling and Kempe.

Mr. Doyle said yesterday, "It's a preliminary meeting of the proposed members, who would participate in the company. This is a very exciting development.

"Bermuda is a P&I (Protection and Indemnity) centre. Most of the major ones of the world are here. Many came here in the late 1960s. Because of the fiscal advantages, telecommunications and a sensible regulatory environment, many more have come here since. Also regulators here are accessible.'' Bermuda may have been chosen as the jurisdiction for the establishment of the mutual because of those factors, but also because the incorporation could occur comparatively quickly. And in this case, that was vital.

The new mutual has been set up to cover ship owners' oil pollution liabilities in the United States under the Oil Pollution Act of 1990 (OPA 90); clean up expenses, fines and penalties under the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA); to provide the evidence of financial responsibility required under OPA 90 for all ships calling at US ports; and state liabilities for oil pollution.

Shoreline has received in principle approval from the US Coast Guard and will complete a reinsurance programme subscribed by leading companies.

The mutual was incorporated in Bermuda last month and will provide cover up to $300 million, when the rule under OPA 90 becomes effective. That rule will require all ships entering US waters to have evidence of financial responsibility. The rule is expected to be published shortly, but has been held back because of the absence of cover in the market place.

Shoreline Mutual Management (Bermuda) Ltd., the managers, will provide underwriting, accounting, certification and general management in Bermuda, through the agency of the industry-known captive managers, Mutual Risk Management Ltd.

The administration of claims will be handled in Seattle by Shoreline Mutual Management Services, the manager's US agents.

Cover will be available to tankers and other ships. But tankers will pay premiums per voyage to the USA, based on the quantity of oil carried. And passenger and dry cargo ships will pay a very modest rate to reflect their reduced risk.

Under rule 144A of the Securities and Exchange Commission, Shoreline will soon make a $300-million bond offering in the US. The Swiss Bank Corporation have declared that they expect to underwrite the entire issue. It is expected to be in the form of five year floating-rate notes. Shoreline anticipates receiving an investment-grade rating from Standard and Poor's, who are currently reviewing the company.

Shoreline was set up by a group of American and British investors, many who have years of experience as shipowners, in the insurance market and in protection and indemnity.

Chief legal advisors to the project are London solicitors, Penningtons, whose shipping department has attracted several well-known figures in London's maritime law world, and who acted for Shetland Island Council in the Braer oil spill.

Berenberg Bank of Hamburg is to provide fund management services; the Bermuda auditors are Moore Stephens and Company and A.S. & K. are the local lawyers.

Mr. David Doyle.