"pack of lies'' to Britain's prestigious newspaper The Sunday Times.

Lord Waddington lashed out after The Sunday Times carried an article on the political firestorm over his salary.

But his anger was directed at The Royal Gazette for giving the story to the British paper.

"I do resent greatly The Royal Gazette sending to The Sunday Times such a distorted version of what happened,'' he said.

But Royal Gazette Editor Mr. David L. White said the newspaper had not sent the story to the Sunday Times and had no control over its contents.

Lord Waddington described part of the article -- which carried the byline of Royal Gazette senior reporter Mr. Paul Egan, as well as that of a Sunday Times journalist -- as libelous.

But asked whether he would take any legal action, he said: "Certainly not, I've got better things to do.'' He added: "It is annoying to have trivial people trivialising really very serious matters.'' Mr. White explained yesterday that The Royal Gazette had not sent the story to the newspaper.

" The Royal Gazette does not send stories to any overseas publications,'' he said. "It is true that many of the journalists in Bermuda are hired by overseas publications to supply stories.

"The news medium for which they work has no say in what they send overseas and no control of the publications which print their stories.

"Paul Egan is a Royal Gazette senior reporter. However his story for the London Sunday Times was not sent at the behest of The Royal Gazette ,'' he said.

"As I read the Times story, it has clearly been heavily embroidered in London from background files.'' Britons woke up yesterday to read that their former Home Secretary's reign in Bermuda was "in turmoil this weekend amid allegations of racism and deadly intrigue''.

The Sunday Times declared Lord Waddington was facing an "unprecedented challenge'' to his rule after accusations he despised the local population and was not fit to meddle in Bermudian politics.

In the wake of the Progressive Labour Party's unsuccessful bid to slash Lord Waddington's salary to $1 a year, the paper also commented on how: Political observers believed the row would hasten moves to Independence; Good-natured attitudes towards Lord Waddington turned to "disgust'' last year over his firing of his butler amid allegations of racism; and The Governor was viewed by blacks as a throwback to the days of white-dominated rule.

One paragraph of the paper stated: "Waddington, whose ceremonial duties include snipping ribbons at official openings and inspecting military guards, has on the whole been regarded with bemusement when seen riding in the back of his ageing Daimler or pulled by horses in his landau, his swan-plumed hat flapping in the Atlantic breeze.'' Yesterday The Royal Gazette received inquiries from other British papers on the Governor furore.

On Friday in the House of Assembly, the PLP's Mr. Stanley Morton sparked uproar as he proposed that Lord Waddington's salary be slashed to $1 a year.

The motion was finally ruled out of order, but only after a wild exchange involving Premier the Hon. Sir John Swan and senior MPs from both parties.

In moving the Governor's $126,063 salary be cut, Mr. Morton said Lord Waddington treated Opposition Leader Mr. Frederick Wade with "contempt'' when Mr. Wade presented him with a 6,000-name petition on Thursday.

"It appears from his behaviour pattern that he despises Bermudians,'' Mr.

Morton said.

The Governor also showed contempt for Bermudians eligible to head the Police Service when he decided to bring the Commissioner and Deputy Commissioner from England, Mr. Morton said. The petition Mr. Wade presented Lord Waddington asked that the overseas hiring decision be rescinded.

Waddington criticises newspaper The Governor's response to the petition was that "what he says goes, and that's it,'' Mr. Morton said. "Like it, or lump it.'' Lord Waddington himself denied the Opposition charges.

"I certainly don't despise Bermudians,'' he told The Royal Gazette .

"I have the greatest respect for the Bermudian people, and I also have the greatest respect for decisions taken by a democratically-elected Government.'' Last night, the Governor was approached by The Royal Gazette over The Sunday Times article headed: "Locals argue Waddington worth just 1''.

"I think it's a bit rich you asking me to comment on an article in The Sunday Times which emanated from your paper,'' he said.

Lord Waddington said it was completely wrong to suggest he had acted in an arbitrary way over the hiring of the Policemen.

Nothing could be further from the truth. In fact, he had consulted the Public Service Commission, and had received the backing of the democratically-elected Government.

"I had acted in agreement with a Government headed by a black leader and which has a black man at the head of the Ministry of Home Affairs,'' he said.

Lord Waddington said he had acted courteously to Mr. Wade during the petition ceremony.

He had, however, pointed out that Mr. Wade could not seriously believe a Governor could reverse a decision taken with the agreement of the democratically-elected Government.

Lord Waddington said he had been treated with complete courtesy by PLP members since the petition ceremony.

He went on to describe as libelous the article's statement that his reign in Bermuda was in turmoil amid allegations of racism and deadly intrigue.

He also objected to the continual harping about the butler.

Lord Waddington said he came to Government House with the intention of promoting black Bermudians.

He did so by appointing a black butler to replace a white one.

And after the butler was not asked to stay on following his probationary period, another black Bermudian was brought in, he pointed out.