to restoring confidence in Bill Clinton's presidency.

It took place on Monday when new Presidential counsellor Mr. David Gergen met Texas billionaire Mr. H. Ross Perot, who has become an implacable Clinton critic.

Mr. Perot drove his high-performance speedboat Blue Thunder to Newstead, where he picked up the vacationing Mr. Gergen and his family for a day of sightseeing.

They eventually ended up at Mr. Perot's Tucker's Town home. Mr. Gergen described the afternoon as a "family to family'' encounter.

"We didn't really talk much business,'' Mr. Gergen told the Washington Times newspaper last night.

But the meeting represents the Administration's most serious attempt to open bridges to a man who has become a thorn in its side.

Mr. Perot, who came third in last year's US presidential election, has been criticising Mr. Clinton's economic policies with relentless vigour. Last week, he said the President did not have the skills to rise beyond middle management in business.

The Perot vollies are considered one reason Mr. Clinton on Saturday appointed Mr. Gergen as counsellor, with the assignment of stopping its slide in popular support.

But with the President's knowledge, Mr. Gergen first took a long-planned holiday to Bermuda to spend time with his two children and wife Anne. He flew back to Washington yesterday morning.

Last night, Mr. Gergen told reporter Frank Murray of the Washington Times that he has known Mr. Perot for about a year and a half.

On Sunday, less than 24 hours after Mr. Cinton announced his appointment to the White House, Mr. Gergen called Mr. Perot in Dallas from Bermuda using the White House switchboard.

"He called me back through the White House,'' Mr. Gergen told Mr. Murray.

"He asked what hotel I was in, but I changed the subject. He said: `No, I'm in Bermuda too. How about going for a ride tomorrow?'' The next day, Mr. Perot pulled up at the Newstead dock and the Gergen's jumped in.

Mr. Murray said Mr. Gergen was clearly wowed by Mr. Perot's home, hospitality and white speedboat.

"And boy is it powerful,'' Mr. Gergen told him.

Mr. Gergen added: "Ross Perot was quite charming and expressed pleasure with my new job. The honest answer is though, we didn't talk a whole lot of business.

"We spent a good chunk of the day with him. It was essentially family to family,'' Mr. Gergen said, adding that a Perot aide drove them back by boat to Newstead. The Perots returned to Dallas on Monday.

Mr. Gergen described the meeting as "serendipity'', but there was no doubt it was an important opening for the struggling Clinton Administration.

"A lot of people in this country are taking their cues from Ross Perot about what to think,'' Mr. Gergen said. "I think it's important that he understand the thinking of the Administration.''