Finance Minister Eugene Cox yesterday said he would not divulge particulars of the Ministry's trip to Washington last week but stressed that Government has "attached high priority" to addressing the push on Capitol Hill for changes to US tax legislation that could adversely affect some Bermuda companies.

The Minister was in Washington last week - which he revealed may be the first of numerous trips to the US on the matter - along with Finance Secretary Donald Scott and Assistant Financial Secretary Ifor Hughes.

The two-day trip - with meetings that Mr. Cox said yesterday had been set-up in March - was in response to the growing debate in the US capital centred around several companies that have reincorporated or stated their intention to move to Bermuda, including Ingersoll-Rand, Stanley Works and Cooper Industries, in a bid to reduce their tax burden on non-US source income.

The US debate grew yesterday with Connecticut Representative Nancy Johnson introducing yet another bill - two bills had been previously introduced in the House and one bill introduced in the Senate aimed at closing loopholes allowing US companies to reduce taxes by moving offshore - which would put a two-year moratorium on these transactions.

Mrs. Johnson - who is from New Britain, Connecticut, the long-time home of Stanley Works - is understood to have introduced the bill to stop the tool manufacturer going through with its move to the Island, which would by estimates save the company $30 million per year in taxes.

Mr. Cox, in a statement in the House yesterday, said bills introduced to close "perceived loopholes" had "indirectly" involved the Island in the ongoing debate in the US. He said Bermuda was at the fore of the debate because of its "visibility as a preferred international business jurisdiction".

He added: "Government has kept abreast of developments on Capitol Hill through its advisors in Washington."

The Ministry declined to name who those advisors were or with whom the Ministry officials had met, except to say that meetings had been planned with "key members of the US Senate and House of Representatives".

In keeping mum on details of the discussions with the US, Mr. Cox said: "The issue of corporate inversions (the name given to the process of incorporating to another country) has been caught in this political maelstrom and cannot be effectively addressed in the media.

"To be frank, it would be highly irresponsible and non-productive for Government to do so in these circumstances," he said.

The aim of the trip to the US capital, Mr. Cox said, was two-fold: "Firstly, Government wanted to get a better understanding of the specific issues underlying the various bills. Government also hoped to glean information that would allow it to form a judgement on the likelihood of passage or rate of progress of each of the bills.

"Secondly, Government sought to ascertain the scope of the proposed legislation and to discuss Bermuda's history as a business centre of substance, our economic and financial relationship with the US and our approach to taxation and corporate formations," he said.

But Mr. Cox said it was a matter for the US Government to deal with.

"Government wishes to make it clear that it considers the issue of corporate relocations to be a matter for resolution by the US authorities.

"Our discussions in Washington were intended to provide factual information on the nature and extent of our taxation system and the rigour of our company incorporation process," Mr. Cox said.

Mr. Cox called the meetings "cordial and constructive" and said that those with which the Ministry had met accepted that there was nothing illegal in the actions of the corporations relocating, or from Bermuda itself.

Mr. Cox added that, as a result of the meetings, it became clear that there could be a stumbling block for the bills already introduced in that there is a push from some for larger reforms to the American tax code.

"It became clear that there are those within Congress that are committed to making larger wholesale reforms to simplify the US tax code and enhance competitiveness of US business.

"Those of this view do not appear to believe that the bills that have been introduced to date meet these objectives," he said.

Mr. Cox said that although "the prevailing public atmosphere in the United States is understandably charged with patriotic fervour", and that "while competing positions are strongly supported today, they are subject to change".

Mr. Cox concluded that Government would closely monitor the evolving situation and pledged to "work closely with its advisors in Washington and will follow-up with key Senate and House contacts as appropriate...to actively safeguard Bermuda's interests through economic diplomacy".

Mr. Cox stressed that the Government had the contacts, relationships and essential information to make judgements and decisions.

Meanwhile, a Wall Street Journal report yesterday revealed that there is lobbying in Washington on the matter from the private sector. Amongst those lobbying against the bill is a former GOP House tax Chairman, Bill Archer, who is representing PriceWaterhouseCoopers, which plans to move its consulting arm to the Island.

On the other side, Connecticut Senator Joseph Lieberman made a move to bar "Bermuda tax-avoiders" from federal contracts.