Senate row over a gay American Ambassador.

The news came after The Royal Gazette learned Mr. Owen is set to take up his new post on the Island at the end of next month.

But now a Republican Senator has vowed to hold up diplomatic appointments after US President Bill Clinton sidestepped Senate while it was on holiday over the recent Memorial Day weekend.

Acting US Consul General Bruce Berton said Mr. Owen was due to begin a special Washington-based training course for Consuls soon.

He added it was not yet clear if the Consular appointment -- which does not require a full Senate hearing -- would be affected.

And Mr. Berton said Mr. Owen would be occupying the luxury Paget official residence of Chelston, even though it has been put on the market with a price tag of $15 million.

He added: "Until something happens, he will be living in Chelston -- and Mr.

Owen is aware it's on the market.'' Mr. Clinton confirmed former law school dean James Hormel as his country's representative in Luxembourg over the Senate break.

And right wing Republican James Inhofe threatened to block appointments in protest after the approval of Mr. Hormel -- said to be the first openly gay US Ambassador.

Senate had earlier voted to put the appointment on hold for two years -- which the Clinton administration put down to prejudice over Mr. Hormel's sexual orientation.

But Mr. Clinton gave Mr. Hormel the job anyway by invoking a little-used clause in the US constitution.

The Royal Gazette exclusively revealed in February that Mr. Owen was in line for the job vacated by Robert Farmer in March this year.

Mr. Owen and wife Faylene -- like Mr. Farmer -- shot to prominence as major fundraisers for the Democrats.

Mr. Owen has been immersed in politics for years and twice sought the Democratic nomination for Governor of Michigan.

He lost out last year to rival Geoffrey Fieger in a tightly-fought race for the nomination to fight to become Governor.

The highest office Mr. Owen has ever been elected to is mayor of his home town of East Lansing, Michigan.

Mr. Owen -- a lawyer, businessman and partner in a Chicago night club -- faced accusations during the Governor's race about a $2.5 million loan guarantee to his stepson over a failed Las Vegas casino deal.

It was suggested he was "in hock'' to gaming interests after a debt settlement on $1.4 million was worked out to $500,000.

The Detroit News reported the deal was being investigated by the state's Attorney General and the Michigan Gaming Control Board to see if it violated the "arm's length'' rule for politicians and gaming officials.

It is understood, however, that after investigation, the Secretary of State declined to take the probe further.