arbitration and conciliation was tabled yesterday before the House of Assembly.

The Bermuda International Conciliation and Arbitration Bill 1993 is expected to open up one of the most significant new areas of business in Bermuda for some time.

It will allow Bermuda to be promoted as a neutral battleground where huge corporations can come and solve their business differences.

This should boost the Island's hospitality industry, whose beds and meeting facilities will be used by those taking part, and also local service providers, such as lawyers, accountants and stenographers.

"We're very excited about this,'' said Mr. Richard Butterfield, chairman of the Bermuda International Business Association, which has been looking at new ways to develop the Island's economy for several months.

"People involved in such arbitrations do not travel second class. The participating parties are normally major multi-national corporations.'' Contracts signed between such corporations normally state a place where possible differences can be ironed out.

Some insurance corporations have already named Bermuda as the venue to settle potential disputes.

And a concerted marketing effort will be made to attract other industries, said Mr. Butterfield.

"There is enormous potential to attract this sort of business to Bermuda,'' he added.

Bermuda's drive to attract this business will go as far as laying out a red carpet at the airport for participants and providing pre-customs clearance so that all parties are "welcomed, not screened'', he said.

Legislative and Delegated Affairs Minister the Hon. Sir John Sharpe, who tabled the Bill, said it had been arrived at after extensive consultation between the Attorney General and arbitrators, academics, lawyers, and users from many jurisdictions.

Among those consulted were the London Court of International Arbitration, the American Arbitration Association, the International Chamber of Commerce and the United Nations.

Sir John said: "The Government recognised that, if Bermuda could attract international commercial arbitrations, the spin-off to various sectors of Bermuda's economy could be substantial.

Sir John said Government had received a letter from the General Counsel of the American Arbitration Association stating: "I have read the Act with great interest and find it to be extremely well done.

"It is a modern state of the art international arbitration law which not only incorporates the UNCITRAL Model Law, but adds a host of other important provisions dealing with conciliation, discovery, obstruction and delay, privacy, interest and the role of the courts in facilitating the arbitration process.

"It seems to me that, when enacted, the Act is bound to place Bermuda, with all its other attractions, in the forefront of desirable venues for the conduct of international arbitration proceedings.'' The UNCITRAL Model Law is a model law produced by the United Nations Commission on International Trade Law and is rapidly gaining acceptability in international commercial arbitrations.

One of the most crucial elements of the Bermuda Bill is that which exempts participants from having to have work permits.

To have forced people taking part in international arbitrations to acquire work permits first was "totally unacceptable'', said Sir John.

He added: "Another matter which is important to know is that the Bermuda Bar Association advised the Government very early on that it did not wish the Government to insist that each party to an international commercial arbitration should be represented by Bermuda barristers and lawyers.

"This was a very selfless act by the Bermuda Bar but is proving a very strong selling point when we discuss the Act with potential users from other countries.'' Sir John said: "I think this Act provides an excellent basis for a whole new type of international business for Bermuda.

"I certainly believe that the form of the Act, and the way in which it has been produced as a result of discussion and collaboration, will make it very attractive to would-be arbitrations, particularly those between European and American organisations.'' SIR JOHN SHARPE -- Tabled the Bill.