decision in a referendum, Bank of Bermuda chairman Mr. Eldon Trimingham said yesterday.

Mr. Trimingham was responding to criticism from Premier the Hon. Sir John Swan, who accused him of "scaremongering'' on the Independence issue. "If Bermudians do not understand the risks, and if those risks are kept from them, how can they decide what to do,'' Mr. Trimingham asked.

There was "no turning back'' from Independence, and both "the benefits and the dangers'' should be identified during the debate. "It is no use wishing that these risks do not exist.'' It was better to recognise risks than cover them over with "green paper'', Mr. Trimingham said.

That was a reference to Goverment's discussion paper on the pros and cons of Independence, called a Green Paper. Both proponents and opponents of Independence have criticised the Green Paper as having a pro-Independence bias.

If the Independence Referendum Act is passed by the Senate tomorrow, Government plans an Independence referendum this summer.

Sir John had criticised Mr. Trimingham's assertion that the Cayman Islands were "cashing in'' on Bermuda's Independence debate. Bermuda had seen record growth in registration of international companies during the last 18 months, while the Independence debate raged, the Premier said.

But yesterday, Mr. Trimingham said business coming to Bermuda today was in some cases initiated years ago.

"The Independence debate and concern is negatively affecting new business that would have materialised in the future,'' he said. "Banking confidentiality prevents any details, but I can say for example that as late as last Friday we received advice that a group that planned a company here, including substantial residential real estate acquisitions, has abandoned this plan `for the foreseeable future'.'' Quoting from a recent glossy promotional brochure from the Cayman Islands, Mr.

Trimingham noted it said: "Unlike other offshore jurisdictions, there is no sentiment for Independence.'' "They are beating this drum for all they are worth and are succeeding in attracting large quantities of new business,'' he said.

While Sir John described Mr. Trimingham's references to corruption and dictatorships in Independent countries as "insidious,'' the bank chairman said "the unfortunate fact that some jurisdictions suffer corruption, gross mismanagement, and/or dictatorial government is an eventuality Bermudians, in a decision about Independence, should be aware of.

"Turks and Caicos, with the backing of a major power, were able to rid themselves of the corruption,'' he said. "Many other places, such as the independent Bahamas, had no major power to fall back on for help, without which they were powerless to help themselves.'' Sir John also criticised Mr. Trimingham for suggesting that upon Independence, responsible Bermudians would turn irresponsible overnight.

"It is not a matter of Bermudians suddenly becoming irresponsible overnight,'' Mr. Trimingham said. "It is rather a matter of what happens down the road if the same sort of thing happens here as happened to supposedly responsible people in the Bahamas and Turks and Caicos, for example.'' Sir John said much of the growth the Caymans had seen was in the banking sector. He wondered whether Mr. Trimingham would like to see Bermuda open banking to increased competition, as the Caymans had.

Mr. Trimingham said Bermuda's banks had expanded enormously, almost exclusively under Bermudian ownership, while providing "first-class service''.

"If we suddenly said, OK, other banks can come in, that would negatively affect the Bermudian ownership,'' Mr. Trimingham said.

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