Eldon Trimingham's anti-Independence comments were insulting to locals and damaging to international business.

Mr. Trimingham was "scaremongering'' when he was quoted as saying the Cayman Islands were cashing in on Bermuda's Independence debate, Premier the Hon. Sir John Swan told The Royal Gazette .

Sir John attacked Mr. Trimingham's comments that corruption and "dictatorships'' often accompanied Independence.

"These insidious comments add nothing to the Independence debate, but are designed to intimidate, unnerve, and frighten Bermudians,'' the Premier said.

Mr. Trimingham was "anti-Independence, but he's got to recognise that as the chairman of the largest bank in Bermuda, he's someone who should be acting in a responsible way as the Country goes through what is a natural process'', Sir John said.

"His reckless comments have done more to tarnish Bermuda's reputation in international business and tourism than any discussion of Independence.'' Sir John said much of the recent growth in the Caymans was in the banking sector. He wondered whether Mr. Trimingham would like Bermuda to allow competition among banks, as the Cayman Islands had.

"The banks have fought hard to oppose any growth in banking in Bermuda,'' he said. "Maybe we should open up the banking, and then we would not have the problems he claims we have.'' After a debate that stretched more than a year, the House of Assembly recently voted to hold an Independence referendum this summer. The bill is to be debated by the Senate on Wednesday.

In articles that appeared on Friday in the Gazette and the Mid-Ocean News, Mr.

Trimingham said he recently returned from a business trip to the Caymans, which he said was using its dependent territory status as a selling point and to Bermuda's disadvantage.

"Cayman is actively after our business, but all we're doing right now is pumping it down there,'' Mr. Trimingham said.

But when asked to respond, Sir John said the bank chairman's remarks flew in the face of the facts.

Pointing to Government figures, Sir John said there were 1,152 international companies registered in Bermuda in 1994 -- a "massive increase'' from 881 in 1993 and 747 in 1992.

And 1994 was the year the Independence debate was raging, with Government failing to get two separate referendum bills through Parliament.

The trend, which Sir John called "the biggest growth...in our history,'' appeared to have continued into the first quarter of 1995, which just ended, he said.

"There is no indication there is any business that has gone to the Caymans from Bermuda,'' the Premier said. And, "there is nothing to substantiate (Mr.

Trimingham's) interpretation of the Caymans' economic performance''.

Bermuda had strict vetting of the companies it would accept, and the Caymans might receive some companies Bermuda turned away, he said.

The Caymans were also a smaller country, without Bermuda's tradition of self-government. With only about 3,000 hotel beds compared to 8,000 in Bermuda, it was natural there was growth in that area in Caymans, Sir John said.

It was "an indictment against the local people'' to suggest that Independence would cause responsible Bermudians to become irresponsible overnight, the Premier said.

"What Mr. Trimingham is saying is that we have no faith in each other as Bermudians, and that we need a colonial master in order to serve international business, and in order for them to have faith in us.'' Sir John wondered whether Mr. Trimingham was voicing a personal view, or speaking for the bank and its shareholders. "Is he suggesting that the Bank of Bermuda will be destabilised if Bermuda goes independent?'' he asked.

"I think that unless Mr. Trimingham can come out with the facts to support his position, not only does he do irreparable damage to locals...but his message is going out to the international world, and probably doing more damage.''