Despite Police objections that The Embassy Club in Hamilton could be used to channel drugs into Bermuda, the Authority granted it provisional liquor licence.

The club, which will be situated in the parking lot beneath Number 6 Shed on Front Street, was supported by the Corporation of Hamilton.

Secretary Mr. Roger Sherratt said: "The Corporation is aware of the concerns that the Police Department have.

"The nightclub is close to the waterfront and cruise ships will be alongside.

"We are aware of the need to reduce the chance of anyone filtering drugs through the area. This has always been a concern.

"We are working closely with various authorities and Mr. Nelson Hunt to reduce the risk to a minimum. We will also maintain the existing level of security on the dock to prevent anyone from importing drugs with the nightclub there.'' Mr. Sherratt added that very strict controls would be enforced when cruise ships berthed at the number six dock.

The Corporation, which owns the land, has leased it to Mr. Hunt, who is responsible for everything dealing with the necessary approvals and renovations.