the colonies unveiled by UK Foreign Secretary Robin Cook yesterday.

But Mr. Cook warned that the Island's legal commitment to the death penalty and flogging should go if Bermuda wanted full partnership with the UK.

And he signalled that the Island's booming offshore industry would come under the microscope in the international battle against white-collar crime and drugs.

Mr. Cook said: "Our strong preference is that the Overseas Territories should enact the necessary reforms themselves.

"This would be in keeping with the modern partnership which we are seeking to build.

"But Britain cannot allow its Territories to be in breach of our commitments under international law and so, if these reforms are not undertaken by the Overseas Territories themselves, we may need to enact the necessary legislation ourselves.'' He added: "Those Territories that choose to remain British should abide by the same standards of human rights, openness and good government the British people expect of Britain.'' The White Paper said anyone with the current second-class British Dependent Territories Citizens' passport will be able to apply for full British citizenship.

The offer -- with no two-way street allowing UK-born people rights of residence in the Territories -- will come into force after the UK Parliament passes the needed amendments to the UK Nationality Act.

But it insisted the Territorial Governments should bring their laws into line with UK human rights legislation.

Bermuda is the only Overseas Territory with capital punishment and flogging on its law books.

The death penalty in the Caribbean Overseas Territories was abolished in the early 1990s by Orders in Council from the UK.

Bermuda's Constitution means the UK cannot use an administrative order -- but an Act of Parliament passed by the UK Parliament could be forced on the Island.

Mr. Cook added that the UK also has international commitments in the world war on drugs and dirty money.

He said: "Bermuda welcomes the economic prosperity and development built by many of the Overseas Territories. Some are among the world leaders in the financial industry.

"We want all the Overseas Territories to operate and regulate their financial industries to acceptable international standards. This will enable Britain to meet its own international obligations. It will ensure that we put up a common front against fraudsters, money launders and the drugs trade.

Britain offers passports "And by doing so, we will be securing the future strength of the financial industries of both Britain and the Overseas Territories for decades to come.'' He also unveiled a checklist of minimum standards to fight money laundering, tougher company laws and more cooperation in overseas probes into financial irregularities offshore -- "whatever the secrecy laws''.

Mr. Cook added the review had already led to measures to increase the voice of the far-flung UK possessions in the corridors of power in London.

He said Secretary of State for International Development Clare Short and his Ministry had set up "parallel structures'' to deal with the Overseas Territories and a Ministerial Joint Liaison Committee had be created to coordinate activities and policies.

And Baroness Symons, who holds the recently created Minister for Overseas Territories, will chair a new Consultative Council.

A new Environment Charter will also be drawn up to set up a green framework for the sharing of responsibility between the UK and the Territories.

Mr. Cook added that four principles guided the drawing up of the White Paper.

He said that Britain was committed to Overseas Territories being "British as long as they wish to remain British''.

But Mr. Cook added that a partnership meant responsibilities on both sides -- and that Britain's promise of defence, encouragement for development and responsibility for international relations meant the UK expected "the highest standards of probity, law and order, good government and observance of Britain's international commitments''.

He said, however, the Overseas Territories "must exercise the greatest possible control over their own lives'' and that the UK wanted them to have "the autonomy they need to continue to flourish''.

THE WHITE PAPER What Britain is offering: UK Passports and rights of residence in Britain and the European Union.

What Bermuda is being asked to do: Abolish capital and corporal punishment Tighten up financial regulations and money laundering laws, assist in financial crime investigations Editorial and Foreign Secretary's statement: Page 4 House of Commons report: Page 5 Conservative response, business reaction: Page 6 In Friday's Royal Gazette : The White Paper in full