buy-out after a special meeting next week.

MPs met yesterday for a United Bermuda Party caucus meeting, but did not reach a decision over the private Bermudiana Hotel Site Rehabilitation Bill.

Talks will now start again on Monday on whether or not to support the bill or add any amendments.

And last night PLP MP Reginald Burrows, who introduced the bill, admitted he was taken aback by the controversy surrounding the issue.

"I knew some people would not be happy with it, but I did not expect all this controversy,'' he said.

If passed the bill will allow international insurers ACE Ltd. and Exel Ltd. to by-pass Bermuda's 60/40 rule and buy the Bermudiana property from Argus Insurance in a deal valued at about $18 million.

The two companies have applied for planning permission for an office complex on the site, and the deal hinges on the passage of the bill as well as planning permission.

Both ACE and Exel say they will pull out of the deal if agreement on the bill and planning have not been reached by the end of March.

Yesterday Premier David Saul said: "The UBP Parliamentary group is still discussing the issue.

"What we are doing is examining the pros and cons with one specific objective in mind which is to reach a decision that will be in the best interests of Bermuda, Bermudians and the economy.'' The bill has had its first reading and has been passed by the Private Bills Committee, but it is not known when it will have its second reading.

The House of Assembly sits again next Friday and the bill could be introduced then. Dr. Saul said the Government will make a decision on the bill before the House re-opens.

Bermuda Financial Centre Ltd., which has spent several years trying to develop the Bermudiana site, is lobbying against the bill.

It says the land should be sold to a Bermudian company and not two foreign companies.

Yesterday Government MPs declined to discuss the Caucus meeting.

However it is known that privately some MPs feel the sale of the Bermudiana Hotel to non-Bermudian companies could set a dangerous precedent.

It is felt that some safeguards should be put in place, such as specifying that the bill is a one-off, to prevent anything similar happening in the future.

Another idea is for Government to buy the freehold of the land and lease it to ACE and Exel on a 99-year lease.

Two Ministers, Pamela Gordon and Dr. Clarence Terceira, have already announced they will not vote on the bill because of a conflict of interest.

Ms. Gordon is a director of Argus as well as the Environment Minister and Dr.

Terceira is vice president of the Bermuda Commercial Bank which helped broker the deal.

It is not known if the PLP will support the bill and Mr. Burrows declined to comment on whether his colleagues were in favour, although he said a statement was due to be made by the Party today.

"The PLP is discussing the issue and I have some indication from colleagues, but I cannot say what that is,'' he added.

"I did not expect the bill to create so much controversy. I was asked to introduce it and I said yes after being briefed on the bill. I was quite satisfied with it.'' Street Talk: Page 3 BUSINESS BUC TOURISM TOU