company for the good of Bermuda -- and had no idea if he would get a fee.

Opposition finance spokesman Mr. Eugene Cox has attacked the Hon. Sir John Swan's role in the venture, which aims to pump oil out of the landlocked Caspian region near Russia.

The company - Caspian Pipeline Consortium - brings together Russia, the Gulf state of Oman, and former USSR members Kazakhstan and Azerbaijan. Local oil magnate Mr. John Deuss helped set up the venture, which will operate out of Bermuda.

Mr. Cox said Sir John's directorship "must inevitably lead to a conflict of interest''.

But last night Sir John dismissed the charge, saying officials from the other governments were directors of the venture and that he had been invited to join them by Mr. Deuss.

"Mr. Deuss recognised the need to have somebody on there who has dealt with international matters which Bermuda might benefit from. It was out of a courtesy to the government officials who have also joined from other countries. I recognised that there were other government officials involved on the board.

"There's nothing in law that precludes me, and my predecessors have all been involved in companies before. This is the first directorship on an international board I have accepted since I've been in office and I would not say it would be the last.

"In the light of the changes that are taking place in the world, we're trying to open up new avenues for Bermuda so that new incomes can be made available to the Country and new jobs can be created.

"I wished in any way to do my part to accomplish that end. "This affords myself an opportunity to get exposed to what's going on and hopefully Bermuda will benefit as a result of it.

"One has to keep in mind that the job of Premier has always been one that traditionally has been part-time. I have done it full-time because I feel that the Country needed some changes and some attention and we need to achieve some objectives.'' Asked if he would be getting a fee, Sir John said: "Quite frankly I don't know. I haven't asked. I haven't done it for that purpose, I have only done it because I think it was important for Bermuda. There might be a fee involved but I don't know. That was not even a consideration of mine.

"There is no conflict of interest. The object is to be accommodating to this new venture that Bermuda's going to benefit from.'' Bank of Bermuda president Mr. Donald Lines, also a director of the consortium, said fellow directors included the deputy chairman of Russia and other foreign politicians. He supported Sir John's position, adding any fee would probably be only nominal.

"There was no financial discussion,'' he said.

The Hon. Sir John Swan.