A potential constitutional crisis threatening Bermuda appeared to have been averted this afternoon after the Premier and the Governor issued a joint statement.

The release - put out by the Foreign and Commonwealth Office in London - revealed that Ewart Brown assured Sir John Vereker at a meeting on Wednesday evening that he and his Government intended to "continue to collaborate with Government House".

The announcement came less than a week after Dr. Brown issued a threat to the Governor over the leaking of a Police dossier to the Mid-Ocean News which the paper claimed revealed that the Premier and several former Ministers were investigated as part of a probe into corruption at Bermuda Housing Corporation (BHC).

Dr. Brown accused Sir John in a televised address of not doing enough to secure the Police file and warned that Government would "suspend further relations" with the Governor unless he got to the bottom of the leak.

Today's statement said Scotland Yard was now being brought in to investigate the leak. The full statement from the pair read: "We met yesterday evening, at the Governor's request, to share our concerns about possible damage to Bermuda arising from recent unauthorised disclosure of material relating to the Police investigation into the affairs of the Bermuda Housing Corporation.

"The Governor assured the Premier, as he had done in a letter at the beginning of the week, that he deplored any unauthorised disclosure of correspondence between the Police Service and the Director of Public Prosecutions, and that an investigation would be pursued diligently. The Governor has advised the Commissioner of Police to seek outside assistance from Scotland Yard.

"The Premier assured the Governor that he and his Government intended to continue to collaborate with Government House, in the best interests of Bermuda, in accordance with their oaths of Ministerial office. The Governor and the Premier took the opportunity to reaffirm their joint commitment to working with the Bermuda Police Service in accordance with their respective responsibilities."

Earlier in the day, the Premier attempted to dampen down claims of a looming constitutional crisis with a promise that his row with the Governor would soon be resolved.

The Premier told reporters in Hamilton - including a journalist from the Times in London - that the problems were "growing pains in a colonial environment". He said: "It won't be long before this will be resolved and it won't be all that exciting."

Asked this morning to address specific allegations relating to BHC, Dr. Brown replied: "No. This matter is being handled for the Government by the Attorney General."

He described comments made by Opposition Leader Michael Dunkley in a televised address last night as "ridiculous and absurd".

Mr. Dunkley called for a Royal Commission into the handling of the BHC inquiry and said the public had "a right to know the full extent that senior members of the current leadership played in this scandal".

Dr. Brown was asked what he thought of international press interest in his stand-off with the Governor. "I think that to a certain extent it's sensationalised," he replied. "But, you know, Bermuda is a popular place and people, they hear of things happening here, (they) react to it." He said he could make a statement in the House of Assembly tomorrow on the affair.

The Premier was speaking outside the Sunshine League Children's Home in King Street, where he was given a tour. Sir John has not commented publicly before today on the spat.

See tomorrow's Royal Gazette for the full story