argued the case for the free market.

And he questioned why restrictions were required for Cable & Wireless or the Bermuda Telephone Co. Ltd. (BTC).

Telecommunications Minister, E.T. "Bob'' Richards, conceded yesterday he was aware of Mr. Stewart's views before appointing him.

Mr. Richards said, "I know that he is very much pro-free market. I know his views on competition and it was one of the reasons that I thought he would be a good person for the job.

"No one, including myself, likes the current position we are in. But this is a period of transition. It is uncomfortable for every thinking person. But we have to go through it before we get to where we want to go. The current period of reform and restrictions will not last forever.'' But the Minister was not sympathetic to the complaints of BTC as regards Cable & Wireless' planned incursion into the domestic telecommunications market.

Mr. Richards and Mr. Stewart commented after BTC president and CEO, Lorraine Lyle, reiterated BTC complaints that Cable & Wireless were in effect, entering the local telecommunications market by proposing to take equity stakes in two companies -- Quantum Ltd. and Bermuda Digital Communications (BDC) -- that are gearing up to compete with BTC. She said it meant that Cable & Wireless was being given an advantage because the competitive restrictions forced by Government on BTC were not being applied to Quantum or BDC.

She questioned why a global player like Cable & Wireless was being allowed to compete locally, when BTC had been denied the opportunity to compete with Cable & Wireless for international telephone traffic.

But Mr. Stewart said, "The bigger question here is what makes one think that the Telecommunications Commission or the Government can actually protect people from competition.'' While accepting that it is too premature for a comprehensive comment, he said that he held a personal view against restrictions in the marketplace.

Mr. Stewart said, "It doesn't seem logical. Unless there is some compelling argument against it, my position is why should telecommunications companies face any more restrictions on their activities than people who want to open a shoe store.

"I can't think what that argument could be, right now.'' He argued consumers would benefit if existing carriers under-cut new competitors. In the end, of course, there was nothing stopping the monopoly from raising its rates again, once the competition was dispensed with.

Mr. Stewart said, "My personal point of view is that I don't see any reasons for restrictions or restraints to be put on anybody, whether they provide telecommunications or tennis racquets.'' Meanwhile, the Minister said, "I think too much is being made of Cable & Wireless' involvement in these new companies. They are not managing these companies.

"It is not as though Quantum is a surrogate for Cable & Wireless. They are not the largest shareholder. They don't exert any control. The dominant shareholder is BELCO Holdings Ltd.

"Too much is being made of this Cable & Wireless connection with Quantum and I don't think it is appropriate.'' The Minister added: "BDC has not been granted a licence yet and as far as I know, Cable & Wireless has not signed off on anything with BDC in terms of their participation in that company.

"The Quantum relationship has already been established. But Cable & Wireless is neither the dominant shareholder, nor the dominant player in terms of management etc., as far as I understand. So any suggestion that a global giant is stepping on BTC on Bermuda's own turf is hyperbole. BTC is quite entitled to state their own opinion but I don't think that position holds true. And we don't agree that anything has been done contrary to the current policy or contrary to Bermuda's interests.'' Bob Stewart