Baroness Patricia Scotland in London.

Ms Smith -- who had been attending the World Economic Forum in Davos, Switzerland -- stopped off in London on her way back to Bermuda for talks with Baroness Scotland.

The Foreign Office traditionally declines to comment on private meetings between UK Ministers and heads of government.

Deputy Governor Tim Gurney, however, confirmed the meeting took place.

He said: "You can call it one of the periodic meetings they have, particularly as the Premier was passing through the UK on the way back from Davos.'' And he added: "A whole range of bilateral issues were discussed.''