St. George's hotel.

He said a United States-based company was involved in a possible partnership with Club Med.

"It is a publicly-held company traded on the stock exchange,'' he added.

Mr. Dodwell, however, declined to name the enterprise.

Last week Shadow Tourism Minister David Allen questioned Mr. Dodwell's description of the company as a "public hotel investor''.

"The wording was very curious in that he described him as a public hotel investor. What exactly does that mean?'' The company was represented at a meeting last Thursday between Mr. Dodwell and Club Med officials.

Mr. Dodwell later said the company's possible partnership with Club Med offered the best chance to date to run a successful hotel in the east end.

"I hope to have the opportunity to share this new proposition with my colleagues within the next few days.

"I know there is a solution, and I am confident that one will be found soon.'' He added Club Med officials made a request to delay the reopening of Club Med by one year until the spring of 1998 -- a development he would discuss with his Cabinet colleagues.

Last month Club Med had approached Government hoping to reopen the hotel in May 1997.

The 340-room property overlooking Fort St. Catherine in St. George's has stood empty since closing in 1988.

Mr. Allen voiced disappointment at prospects of another delay, but said he was not surprised. He feared Club Med were stalling again.

"I am concerned that we will find ourselves in the same position in 1998,'' he said.

He added: "We have had concerns that Club Med has been using the property as a tax write-off under US tax law.'' Mr. Dodwell was reluctant to comment at length on Mr. Allen's tax write-off allegation.

"I know Club Med have operating costs even though the hotel is closed. There is the cost of maintenance of the property and I believe there are 17 employees down there, including grounds maintenance and security staff.'' Mr. Dodwell, a hotelier himself, added: "Speaking as a businessman, it wouldn't make sense for a company in the long run to continue to use an asset as a tax write-off. It wouldn't make sense to me.

"But because they have losses they may use those losses to offset income in other areas, although this is totally a matter of conjecture.'' Mr. Dodwell voiced optimism over the emergence of the US-based company in discussions over Club Med's future.

"The issue has taken a different direction and it's incumbent on Government to look at that.'' Mr. Dodwell said he would be discussing the development shortly with Cabinet.