Cartwright DeCouto, one of its longest serving and toughest Cabinetministers, resigned as Delegated Affairs Minister.

And The Royal Gazette can reveal that her shock departure follows a Cabinet row over Independence.

"Please accept this letter as my resignation from Cabinet immediately,'' Mrs.

Cartwright DeCouto's letter to the Premier said.

"I do not agree with the Government holding a referendum or, indeed, Commission of Inquiry with respect to Independence at this time.

"Bermuda has too much on its plate at this time. I attempted to make my views clear at Cabinet yesterday.'' Premier the Hon. Sir John Swan was stunned by Mrs. Cartwright DeCouto's decision.

It followed Tuesday's resignation of Technology Minister the Mike Winfield, one of his closest political advisors.

He has called an emergency Cabinet meeting for this morning to control what could mushroom into a crisis of confidence.

Reliable sources yesterday said Mrs. Cartwright DeCouto's resignation had no connection with Mr. Winfield's.

In a letter released last night to The Royal Gazette , Premier Swan held back from accepting her resignation.

"I must confess I was quite taken aback to discover you had submitted your resignation...

"I know how committed you are to Bermuda and to the welfare of her people and it would be my hope, therefore, that you reconsider your decision...'' The Premier told Mrs. Cartwright DeCouto that any decisions on Independence would first have to be passed through the United Bermuda Party as a whole "rather than merely the Cabinet.'' Sir John defended Tuesday's Cabinet meeting in which "many'' Ministers supported further explorations to gauge public sentiment on Independence.

Last night, Mrs. Cartwright DeCouto, her voice choking with emotion, read her resignation statement to The Royal Gazette .

"I have today resigned from the Cabinet,'' she said. "I resigned over a matter of the utmost national importance.

"To have remained in the Cabinet at this point in time would have been personally and politically unconscionable and untenable for me.

"I will continue to serve my beloved Bermuda and my constituency, Pembroke West-Central, to the very best of my ability from the United Bermuda Party backbench.

"I have enjoyed serving Bermuda in the Cabinet and hope I have done a decent job.'' Mrs. Cartwright DeCouto said she wanted her resignation decision to cause people "to sit up and take notice''.

Sources say her resignation occurred after she argued the Independence debate was an unnecessary and divisive distraction at a time the Island needed all its resources to take over the military bases.

The sources say she was concerned the instability would lead to economic dislocation.

With removal of exchange controls very possible this year, uncertainty generated by Independence and the bases could prompt the flight of dollars from the Island.

In addition, Mrs. Cartwright DeCouto has voiced disapproval that Independence has become an issue despite no mention of it during the recent election campaign.

Concerns have been building in recent weeks that Government already has too much on its agenda to take on Independence.

It is committed to base takeover, improving competitiveness, modernising the workplace, retraining workers and reforming education. In addition, it has its Blueprint for the Future, the campaign document of more than 100 promises.

Mrs. Cartwright DeCouto's resignation ends a controversial career in which she became known as Bermuda's Iron Lady.

As Minister of Social Services in the mid-1980s she oversaw Bermuda's first responses to AIDS as well as the commissioning of the new prison.

But it was her appointment as Environment Minister that solidified her reputation as a bold, no-nonsense politician. She stood up to the Island's fishermen and imposed a fish pot ban which effectively killed their livelihoods.

Last night, Mrs. Cartwright DeCouto said the decision to resign was very difficult.

"But I felt it was in the best interest of the Country,'' she said. "In the Cabinet you're either in the boat and go along with the consensus, or you get out of the boat.

"I will now have my freedom to speak as a backbencher.'' PHOTO Hon. Ann Cartwright DeCouto.