New laws to improve Bermuda's response to possible terrorist attacks are to be introduced in the next session of Parliament, Labour and Home Affairs Minister Terry Lister said yesterday.

He spoke out as the Island's emergency services prepare to deal with a simulated terrorist hijacking of a jet at the Airport tomorrow night and Saturday morning.

A member of Britain's special forces - the elite Special Air Services (SAS) and Special Boat Services (SBS) - and a military attache at the British Embassy in Washington are on the Island to see how Bermuda would cope with a terrorist attack.

Governor Sir John Vereker said preliminary planning for the event at Government House yesterday morning involving all emergency services and Government departments had been given the seal of approval from London and Washington as everything had run smoothly.

He said the world generally was on a heightened alert following September 11 attacks and last weekend's bombing in Bali, but he stressed there was no specific threat to Bermuda.

Mr. Lister said yesterday that Bermuda's preparedness for a terrorist attack had been reviewed since September 11, when nine planes were diverted to the Island after American airspace was closed down.

He would not reveal details of the new legislation he will introduce, but he said the review involved looking at how Bermuda dealt with money-launderers or potential terrorists.

"As the exercise continued, we looked at how our laws can be enhanced and within this session (of Parliament) I expect to bring at least two bills, or amendments to bills, to enhance our situation," said Mr. Lister.

Mr. Lister asked Bermudians not to be alarmed by the activities at the Airport during the hijacking exercise overnight tomorrow, but he urged residents not to flock to the scene to watch.

"There is no need to be alarmed. The Police will make every effort to minimise inconvenience to the public and we ask for your co-operation to ensure the exercise is conducted as smoothly as possible.

"Government is aware we live in uncertain times. As small as Bermuda is, we must be prepared for any terrorist incident. Bermuda, at the crossroads of the Atlantic, needs to prepare for any possibility."

Sir John said London and Washington had been pleased with the way the high level meetings to co-ordinate strategy at Government House yesterday morning had went.

He said that in a terrorist event, if military action had to be taken, the decision would be made in London in co-ordination with Washington.

Among those taking part in the planning exercise at Government House yesterday were the Governor, Mr. Lister and other Cabinet Ministers, Commissioner of Police Jonathan Smith, and Bermuda Regiment Commanding Officer Edward Lamb.

The exercise tomorrow and Saturday will involve trained Bermuda Police officers working with members of the Bermuda Regiment trying to deal with the hijacker.

King Edward VII Memorial Hospital will also be involved in the simulated exercise.