Budget was on the cards.

And he hinted at Ministerial posts being offered to one or two rebel MPs.

Dr. Saul, however, made it clear any shuffle would involve balancing the need for party unity with rewarding loyalty.

"I'm obliged to talk to those who have played as a team,'' he told The Royal Gazette .

Last week three United Bermuda Party rebels -- C.V. (Jim Woolridge), Dr.

Clarence Terceira and Dr. David Dyer -- said they would seriously consider offers to join the Cabinet.

Government sources tipped Mr. Woolridge, Dr. Terceira and Dr. Dyer for the portfolios of Transport, Telecommunications and Environment respectively.

They also raised questions over the futures of Health & Social Services Minister Harry Soares, Works Minister Leonard Gibbons, Minister of Technology & Information John Barritt, Youth and Sport Minister Tim Smith and Community and Cultural Affairs Minister Yvette Swan.

Mr. Smith and Sen. Swan were considered most likely candidates for the chop.

Dr. Terceira revealed he would be meeting Dr. Saul this week, possibly over a Cabinet post.

Yesterday Dr. Saul -- fresh back from a holiday in Florida -- was reluctant to give much away.

"I'm always examining the Cabinet and seeing what needs to be done and what opportunities there are.

"Before the next Parliamentary session in February there will no doubt be a shuffle, and some Ministers may be moved or others brought in, but I don't really want to comment further.'' Asked whether he would be discussing a shuffle with Cabinet colleagues shortly, Dr. Saul said: "I've been meeting people over the past months on a number of particular issues and I will probably continue doing so over the next ten days.'' Dr. Saul also hinted at making Cabinet post offers to some members of the "People's Five'' -- the party rebels behind the Prohibited Restaurants Bill which seeks to curb franchises.

"I talked to Dr. Terceira and others during the last Parliamentary session and once we got the Restaurants bill out of the way it was my intention to see, if everything went well, whether there were any opportunities to bring them in.

"I also feel obliged to talk to those who have played as a team. Until I've had the opportunity to do so it would be inappropriate to comment much further.

"The head of a Cabinet does have an obligation to keep these things under review, and if it helps the Country I will make some changes. That is healthy and not unusual.'' Dr. Saul said it was "presumptuous'' to state a shuffled Cabinet would be the one to lead Government into the next election.

"The election doesn't have to be held until the end of 1998. That's two years away.'' He added: "The Country needs to settle down. We need to finish off the Blueprint obligations and put the Country and economy on the right footing.

"The economy is ticking on very well, the balance of payments is in first class shape, construction is moving on and unemployment is dropping. There are plenty of reasons to be optimistic.

"I think 1997 is going to be a better year for tourism. I think we will see definite improvement.'' Dr. Saul's schedule this month also includes a January 22 meeting with British Prime Minister John Major at 10 Downing Street.

One issue likely to be touched on is Bermuda's relationship with Britain after this year's transfer of Hong Kong to China.

After the transfer, Bermuda will have the largest population of any UK colony.

And it could mean the Island taking on an enhanced role.

Dr. Saul was unable to say what his agenda with Major will be.

"I will work that out over the next three weeks. There are a myriad of items which could be discussed.'' He pointed out that he generally tied in a meeting with Major while going to the World Economic Forum, in Davos, Switzerland.