civil investigations.

The move would bring the Island into line with other English-speaking jurisdictions in the Caribbean/Atlantic area, most of whom already have similar arrangements.

And Financial Secretary Peter Hardy said the new deal would underline Bermuda's position as a "responsible jurisdiction'' determined to clamp down on money laundering and other white collar crime.

New crime deal likely Mr. Hardy added: "It will provide the opportunity for Governments to assist one another in dealing with issues between countries.

"That may be related to any form of legal assistance -- giving evidence, production of a person or taking a person to another jurisdiction for the purpose of giving evidence and so on.'' Mr. Hardy said that Bermuda already had a tax information exchange scheme with the US -- which other countries did not.

He added: "We want to put ourselves in the position where we're not standing out in terms of giving assistance to the US with any investigation they might be conducting.

"We hope it will send the signal that we are a responsible jurisdiction.'' But Mr. Hardy said no time limit had been set on talks with the US State Department on the terms of the new treaty.

He added: "The Ministry of Finance is heavily committed to the Budget process and we are trying to carry that forward at the same time.

"There is no definitive date set -- we are currently in the process of preliminary negotiations.'' Staff at the US Consul General's office did not return calls from The Royal Gazette yesterday.

Mr. Cox told MPs last Friday that Bermuda faced several international initiatives aimed at attacking money laundering and other white-collar crime -- and the Island had acted to protect its reputation and money-spinning international business sector.

During his Budget speech, Mr. Cox confirmed: "One such initiative has begun.

"The Ministry is already in discussions with the United States on the subject of a possible Mutual Legal Assistance Treaty.

"The United Kingdom has authorised Government to negotiate the treaty to conclusion.'' He added that the assistance treaty was just one of a series of international attempts to clean up the world of high finance.

Mr. Cox said that the European Union Code of Business would apply to all member states -- including Britain's Overseas Territories.

He added: "However the manner in which this code may be applied to Overseas Territories of such member states has not yet been clarified.'' And Mr. Cox said: "Concerns about `potential harmful tax measures' and the application of European tax directives caused the Finance Ministry to visit Brussels to discuss these issues directly with staff of the European Commission.

"We have been proactive in our approach -- not merely reactive.'' The review of economic relationships between the EU and Overseas Territories was due to be completed this month, but the present arrangements are likely to continue for a year.

In addition, Britain's White Paper on relations with its Overseas Territories last year pledged to probe financial regulations in the Territories with a view to making sure they met international standards.

Worldwide accountants KPMG are currently studying the set-up in the Territories and the firm is expected to issue its report in the summer.

And the Island is still fighting its case to keep off a hitlist of "harmful tax jurisdictions'' being compiled by the Organisation for Economic Co-operation and Development.

But Mr. Cox signalled last Friday that Bermuda could be close to convincing the international watchdogs that the Island should not be singled out.