A middle manager at the centre of a dispute which saw Elbow Beach Hotel nearly close down has quit his job.

Human resources director Robert Calderon says he resigned at the weekend, but refused to comment on reports he was forced out by the hotel's owners.

Mr. Calderon's departure, and the renewal of US general manager Bill Shoaf's work permit, were the two conditions demanded by a representative of Saudi Arabian owner Prince Khalid Bin Sultan in a meeting with Immigration Minister Paula Cox last week.

Ms Cox was told that, unless the two demands were met, the hotel would close immediately.

A source confirmed the episode also resulted in a confrontation between Ms Cox and two Government colleagues -- Tourism Minister David Allen and backbencher Derrick Burgess.

It is understood Ms Cox refused to bow down to the demands made by the Prince's aide General Ayid, when the pair met last Thursday.

But in emergency talks and a Cabinet meeting on Friday, the Minister was eventually persuaded to backtrack following arguments from Mr. Allen and Mr.

Burgess, who both insisted the hotel should stay open at all costs.

Mr. Shoaf's work permit was up for renewal at the end of last year but had still not been approved prior to last week's showdown.

The reason for the delay is still unclear but there have been numerous complaints from the hotel's Bermudian middle managers about Mr. Shoaf's style of management. Last December he faced allegations that he made racist comments, an allegation that has never been proved.

The source added that Mr. Calderon was told by Government that if he did not resign and was then sacked, the Government would not help him to be reinstated.

On Saturday Ms Cox denied she had been forced to backtrack, saying that Mr.

Shoaf's permit had only been extended for six months and that work permits for two other posts had not been renewed at all.

But The Royal Gazette understands that, had Mr. Shoaf's permit been processed when it expired at the end of last year, it would only have another six months to run anyway.

The two other permits are believed to be for minor positions which the resort's owners agreed should be filled locally if possible.

Last night Mr. Calderon said: "I resigned. Basically I am not at liberty to discuss it right now.

Elbow begins training for succession: Page 7 Elbow Beach manager resigns "I am in a very interesting situation right now but I just can't talk about it -- it would jeopardise my family.'' He added he would not be taking any form of legal action against the hotel and that the matter was now over.

Mr. Shoaf also stressed that he wanted to put the episode behind him and concentrate on the future.

"As far as I'm concerned it's the end of the matter. We've got a big season in front of us and this was an unfortunate situation.

"I am still focused on the fact that this hotel is to become a five star product and that's what we want for our customers.

"We have a great staff here and I don't think it's a question of them being behind anyone -- they're just focused on making Elbow Beach a great hotel.'' Ms Cox did not return repeated phone calls to her office and home yesterday.