American authorities will continue to press for a resolution to a long-running dispute over control of Bermuda's cable television, a US official said last night.

Bruce Berton, deputy principal officer at Bermuda's US Consul General's office, said both his office and the State Department were still concerned over the treatment of the McDonald Group on the Island.

"We will work with (the) McDonalds and the Bermudian authorities to make sure we come to a fair resolution,'' he said.

Earlier this week the State Department granted TeleBermuda, a new local long distance telephone company, a licence to land a cable from Bermuda to the US.

The move came despite calls from the McDonald Group that the application should be delayed until its business dispute in Bermuda was solved.

It appeared that the State Department's move was a blow to the McDonalds and a vindication of the stance taken in Bermuda.

However Mr. Berton added: "The granting of a licence for TeleBermuda should not be taken to mean the State Department has any less concern about the McDonald issue or is any less committed to getting a resolution to the dispute.

"We remain concerned about the McDonald Group's situation and will continue to work with them, the State Department and the Bermudian authorities about the issue.'' The Alabama-based McDonald Group is fighting with the Bermuda Telephone Company over control of Bermuda Cablevision (BCL).

Telco claims BCL's structure is in breach of Bermuda's 60/40 rule, but the McDonalds claim the set-up was approved by Government in 1987 -- when the US group invested in BCL.

It wants Government to say it approved the deal and end a court case due to go before the Privy Council next year.

The Group also raised the issue of the TeleBermuda licence -- calling on the State Department to delay a decision until the dispute in Bermuda was solved.

Government refused to get involved in a court case and said it was unfair to broaden the issue to include TeleBermuda.

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