The Bermuda National Trust has "reluctantly'' decided to withdraw its court action against a proposed high-tech ocean exploration institute on East Broadway.

Developers expect to break ground on the $10 million project in mid-1995. A recent Supreme Court judgment giving the green light to building plans by the Bermuda Financial Centre prompted the Trust's decision, director Ms Amanda Outerbridge said in a statement yesterday.

The appeal by Hamilton Properties Ltd. -- the owners of the Princess Hotel -- of BFCL's planning approval had been based on allegations of bias between present and former Cabinet Ministers.

The Trust appeal of the BUEI decision had been launched on similar grounds.

But Ms Outerbridge said yesterday the Trust "continues to oppose'' building of the BUEI at the entrance to the city.

The proposed site for the BUEI was "too small'' and the Trust opposed planned foreshore encroachment to create a dock, she said.

"Based on professional advice and the recent Supreme Court judgment handed down in the case of the Bermuda Financial Centre, the Trust Council has decided that it would not be prudent to proceed,'' Ms Outerbridge said.

"The Council regrets having to take this step as it still feels very strongly that the DAB's decision to refuse the institute's application for in-principle approval was correct.

"The Council also considers the mechanism by which that decision by the Government-appointed DAB was overturned was fundamentally wrong.'' Acting Environment Minister the Hon. Maxwell Burgess had reversed the DAB's decision and granted in-principle approval of the BUEI, whose developers include Finance Minister the Hon. David Saul and accountant Mr. David Lines.

Dr. Saul said yesterday: "I am hoping this decision will now put an end to all the acrimony.'' BUEI chairman Mr. David Lines said he would make a statement today.

Ms Outerbridge further said in her statement that the Trust would be calling for Government to amend Planning legislation "to ensure that planning appeals are conducted in a fair and impartial setting''.

"The Trust Council firmly believes that the institute's proposed site on East Broadway for this development is inappropriate both in size and location,'' she said. "It is too small, as is indicated by the need for the developers to create land on the foreshore and ignore setback requirement on other boundaries.'' She added the Trust had filed an objection to the BUEI's application for final approval, which was now at Planning.

Trust lawyer Mr. Tim Marshall said earlier this year that if the Trust appealed the Minister's decision it would allege an appearance of bias because the BUEI developers included a Government Minister.

In his decision last month on the Bermuda Financial Centre (BFCL) case, Puisne Judge the Hon. Mr. Justice Ground had questioned Hamilton Properties' right to appeal the DAB's approval of the complex in the first place.

He threw out their arguments of bias saying they were "remote'' and he had found "no real danger of bias'' based on the chief developer's past membership of Cabinet.

Acting as Environment Minister, Mr. Burgess had heard the BFCL appeal as well.

The waterfront museum will include a simulated submersible ride and other exhibits aimed at showing visitors what it is like to search the ocean depths.

It will also feature moving marine exhibits.

It will have six attached buildings with the central exhibit standing 31 feet above Crow Lane. A new dock will be built on 4,000 square feet of reclaimed land, which was a major contention of the Trust.

The Trust, one of six objectors to the plan, had argued the BUEI's proposed physical structure was "entirely incompatible'' with the proposed site.

The DAB had agreed, saying its massing and scaling were "excessive'' and "not in keeping with Bermuda image''.