Bermuda yesterday distanced itself from a Caymans threat to split with the UK if Britain forced change the islands' tax and banking secrecy laws.

And Premier Jennifer Smith insisted independence would not head off multi-pronged probes into offshore jurisdictions.

Ms Smith said: "Independence is a little beside the point in the event some kind of blacklist were published.

"It would harm the business of an offshore financial centre whether it was independent or not.'' Ms Smith spoke out after the Cayman government visited the Foreign Office in London to discuss the tax implications of various investigations into offshore business. She attended similar meetings in London recently.

Cayman Tourism Minister Thomas Jefferson said after the meeting that any attempt to change the way the the UK Overseas Territory does its business would be "a serious national issue.'' He added: "Government remains committed to protecting the constitutional integrity of the islands, as well as the economic, social and political stability of Cayman.'' Some Cayman MPs have speculated that any forced removal of its favourable tax laws by the UK could prompt a move towards independence -- despite the fact the MPs and most of the 36,000 population of the Caymans do not want to go it alone.

The London meetings with the Foreign Office were called to discuss probes by the Organisation for Economic Cooperation and Development and the G-7 group of the world's most powerful nations into so-called tax havens, with a view to drawing up a hitlist of dodgy jurisdictions.

The Caymans, unlike Bermuda, has concentrated on offshore banking and its laws safeguard banking secrecy.

The Caribbean UK colony has no income or property taxes and the government does not recognise any duty to enforce the tax laws of other jurisdictions.

Mr. Jefferson's views are at odds with the UK Labour Government's move to bring its Territories into line with the OECD, G-7 and European crackdowns on offshore financial centres.

But Mr. Jefferson warned that the Caymans bid to keep its tax haven status "transcends partisan politics'' -- a clear signal to the UK Government that the islands politicians could present a united front if pushed.

Opposition leader Pamela Gordon led negotiations on the probes while Premier.

And she also ruled out calls from some Caribbean Overseas Territories for a formal alliance among the colonies to fight threats of a hitlist.

But she did host a conference on the Island for the UK possessions to the south and Bermuda to discuss common approaches to the British announcement of a White Paper on its relations with its then-Dependent Territories.