A chapter of the Institute of Chartered Arbitrators is about to be formed in Bermuda.

Lawyer Mr. Jeffrey Elkinson of Conyers, Dill & Pearman said the local chapter will be an important step in making Bermuda a centre for international arbitration.

But an arbitration centre is also needed, Mr. Elkinson told The Royal Gazette .

In 1993, Government passed the Bermuda International Conciliation and Arbitration Act, in the hopes of encouraging more companies and individuals to settle their international disputes on the Island.

Founded in 1915, incorporated in 1924, and given a Royal Charter in 1979, the institute has 7,500 members in 84 countries.

Currently, Bermuda comes under the North American branch, and "it's just not appropriate, given Bermuda's intended position'', said Mr. Elkinson, one of four institute fellows in Bermuda. "We're going to set up our own branch.'' The main purpose of the institute is to provide education and training programmes for potential and practising arbitrators. "The North American branch seems to forget our existence,'' Mr. Elkinson said.

To qualify for a branch, Bermuda must hold three meetings at which "sufficient interest'' is shown by members and potential members, he said.

Two meetings have already been held, each attended by 20 to 30 people, and the third is planned for May 3 at CD&P.

After that, Bermuda's ad hoc committee will apply to the United Kingdom and will likely have its designation by fall, he said.

In June, the ad hoc committee planning the local branch of the institute is offering a three-day course at the Bermuda Insurance Institute for anyone interested in arbitration. Not just lawyers can take the course. People in real estate, engineers, and hoteliers are among those who might be interested.

Dr. Gerold Herrmann, a German lawyer who was one of the original proponents of the United Nations Model Law which Bermuda adopted in the 1993 Act, is to teach the course along with other tutors. The cost is $800.

Those who pass the course can become associates of the institute, joining about a dozen others on the Island.

The other institute fellows in Bermuda are lawyers Mr. Geoffrey Bell, Mr.

David Kessaram, and Mr. John Riihiluoma.

A subcommittee of the Bermuda International Business Association headed by former Attorney General Mr. Walter Maddocks is conducting a study to find out how much arbitration is currently conducted in Bermuda.

Mr. Elkinson estimated at least 100 domestic arbitrations occur in Bermuda each year, but no more than 15 international ones.

"It would be fair to say that we have not yet managed to attract enough potential parties to arbitrations to immediately consider Bermuda a venue of choice for arbitrations,'' Mr. Elkinson said.

"One of the reasons, it might be said, is that we don't have our own arbitration centre and that we rely on hotels for the venues. That automatically can be a stumbling block in terms of giving credibility.'' Singapore and Hong Kong are among world cities with international arbitration centres.

Parties to international agreements are increasingly moving toward arbitration, rather than litigation, Mr. Elkinson said. The parties to such agreements often do not trust each other's courts and want a neutral venue.

They also like the privacy that arbitration offers.

He did not believe approaches have yet been made to Government about establishing an arbitration centre in Bermuda.