underwater institute.

The Trust is warning that the Bermuda Underwater Exploration Institute must not encroach on its property at Pembroke Hall.

And it is preparing to keep a watchful eye on any reclamation of the water at Foot of the Lane to give more land to the Institute.

The Trust published an extra newsletter yesterday to explain its position to members after concerns over their involvement with the Institute.

The $10 million project is backed by a number of top businessmen and by scientists from Bermuda and abroad.

Based at the old Butterfield warehouse site, next to Pembroke Hall, it intends to provide an educational facility concerning the oceans around Bermuda. The project organisers' intention is to increase people's awareness of Bermuda's involvement with the ocean and its exploration.

The National Trust has leased Pembroke Hall to Fidelity International on a long-term basis. The Fidelity group, one of the world's largest mutual fund companies, is connected with the Institute.

A partnership between the National Trust and Fidelity, Fidnat, was formed to develop the site after the Butterfield warehouse was destroyed by fire.

The Trust newsletter said: "Recently, a group of individuals decided to create the Bermuda Underwater Exploration Institute and have done so. This organisation currently is in no way formally connected to the Trust, nor was it inspired or endorsed by the Trust.

"The BUEI is not a partner in Fidnat. Should it eventually be located on the Butterfield site, it would be a tenant of Fidnat.

"The Trust wishes to stress this point in light of the fact that the BUEI has recently launched a $10 million campaign while the Trust has in progress its own $6.5 million fund drive. There is no connection whatsoever between the two campaigns, nor will donations to one in any way help the other.'' Fidnat's original purpose, it said, was to develop the site in a way that will be financially beneficial to the Trust in the long term. That purpose remains.

It said: "There is little doubt that the property will ultimately be developed in some way, but the National Trust will continue to monitor any plans for development with the intention that it be compatible with environmental conditions, especially relating to the marine environment at the Foot of the Lane.

"The Trust will guard against any encroachment upon the Pembroke Hall site and will not permit the historical or architectural integrity of that structure or its site to be compromised.'' The newsletter went on to say that a chance of any connection between the two organisations was remote even though members of the public may feel there is an association.

It said: "The National Trust is first and foremost dedicated to its principal objectives as set out in the Bermuda National Trust Act 1969 and will be always mindful of those objectives in any decision it reaches regarding any proposal to locate the BUEI on the Butterfield site.''