Britain on Wednesday said it had agreed a comprehensive plan to reform the governance of the British Virgin Islands without being ruled from London at this stage after an official report found systemic dishonesty in the British overseas territory.
Britain said it retained the option of a governor-led administration - effectively suspending BVI's constitution and handing rule to the British government - if there was not enough progress in improving governance over the two year plan.
"I believe, in the first instance, the new government should have an opportunity to demonstrate their commitment to reform through the implementation of the 48 (inquiry) recommendations and the further measures they have proposed," Britain's foreign minister Liz Truss said in a written statement.
"If it becomes clear that this approach is not delivering the reform the people of the BVI want and deserve we will take action."
(Reporting by Alistair Smout)