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Race is on to buy luxury Chelston

And the battle for the massive mansion could be set to come down to a head-to-head between Government and a private buyer from overseas.

Consuls General.

And the battle for the massive mansion could be set to come down to a head-to-head between Government and a private buyer from overseas.

The house could be lined up as a future residence for Premier Jennifer Smith and her successors.

Now it is understood the US Government has set a deadline of just days for the Island to come up with an offer for the house -- which sits in 14 acres of land in Paget.

The mystery buyer -- understood to be from overseas, but with interests in Bermuda -- has already put the cash on the table to buy the massive mansion.

And the US State Department, responsible for the sale of the property, are keen to see the matter settled as soon as possible.

Officials are also thought to be worried that -- if negotiations drag on -- the overseas buyer could lose interest and look elsewhere.

But yesterday US representatives on the Island were playing their cards close to their chests and declined to comment on the saga of selling the property.

Acting Consul General Bruce Berton said: "I have no comment to make other than the marketing of the property is still ongoing.'' But a spokeswoman for Government confirmed last night: "Government has expressed an interest in Chelston.'' Works and Engineering Minister Alex Scott -- responsible for the buying and selling of property for Government -- insisted Government would not earmark Chelston as a Premier's home.

He said: "That's not the primary interest of the Government -- we just wouldn't like to see it being lost to Bermuda.

"I would have thought any Government would not like to see a very valuable tract of land like that, especially in Bermuda where land is so scarce, lost to a foreign purchaser.'' Mr. Scott added that the US Government had been "good neighbours and good friends'', but that the opportunity to add the house and acres, which include a beach house and private beach, to Bermuda's "land bank'' was too good an opportunity to scorn.

He said: "There has been no decision about it being the Premier's residence -- that certainly wouldn't be the reason for purchasing it.'' And Mr. Scott said he hoped the US State Department would not place strict time constraints on the sale of the house.

He said: "Hopefully the State Department wouldn't be in the business of giving the Government ultimatums -- especially considering the amicable relationship we have had.

"Government is not like any private client. We can't just go to a chequing account and write a cheque. It has to be discussed in Cabinet, the Ministry, and approved by the House of Assembly and that all takes time.'' The future of Chelston, home of Consuls General since the early 60s, has been under threat since the US Navy pulled out of its bases in Bermuda in 1995.

The house, put on the market last year, featured in a 1996 US TV news feature called "The Fleecing of America'' about the cost of American overseas representation.

AMERICAN CONSUL VIP