In the second in a series of articles leading up to August 15's Independence Referendum, The Royal Gazette today looks at the debate over how much an Independent Bermuda would pay for handling its own foreign affairs. Tomorrow: Independence, pro and con.

How many Bermudian ambassadors belong on the world stage? And what kind of cars should they drive? Those are questions the Country must answer if Bermuda opts for Independence on August 15.

As a dependent territory, Bermuda has its foreign representation provided mainly free of charge by the United Kingdom.

Under Independence, proponents say the Bermudian foreign service can be a lean one, while critics say what starts small is likely to balloon.

In its recent position papers, Government says it would "move with caution'' and open no overseas missions "for at least three years'' after achieving Independence.

Government reasons that most external affairs can be conducted through foreign missions in Bermuda, by correspondence, and with occasional ministerial visits.

Without overseas offices, the cost of a "small Ministry of External Affairs'' subsumed in the Prime Minister's, or some other Minister's, office would be just over $1.3 million, the position papers say.

That would include $473,557 for the Ministry itself, a $102,000 United Nations membership fee, a $350,000 subscription to the UN peacekeeping budget, $325,000 in subscriptions to specialised UN agencies, and an $80,000 subscription to the Commonwealth Secretariat.

Independence critics like Green Paper committee member the Hon. Clarence Terceira say that Caribbean islands hoped to keep their foreign service budgets tiny upon going Independent, but they soon saw costs soar.

Bahamas expected its first-year Independence costs would be $300,000, but they came in at $1.6 million, Dr. Terceira said. Soon, Bahamas had representatives in Washington, New York, Ottawa, London, Haiti, and cities in Latin America.

Today, external affairs alone costs the country more than $3 million a year, while total Independence costs are nearing $10 million, he said.

In its position papers, Government says Bermuda is unlike most other territories, because there are no Bermudian communities of significant size abroad requiring consular support and no need to protect or develop foreign markets for the export of goods.

To get estimates on the cost of missions should Government opt to open them, Bermudians must turn to the Green Paper issued in February. There, Government set out two different options for overseas representation.

Under the cheaper option, which would cost $763,000 on top of the External Affairs Ministry costs, Bermuda would have a small mission combined with its Tourism office in New York, and a small mission in London.

The costlier option, at an extra $1 million, would see a Bermudian ambassador in New York and a high commissioner in London.

Those costs, too, have been criticised as too low. Government backbencher Mr.

Trevor Moniz has noted no funds are included for a car and a driver and wondered whether the British ambassador would ride to Buckingham Palace on a motor scooter.

Others, like former Premier the Hon. Sir David Gibbons, has said amounts budgeted for entertainment are likely to be exceeded as Bermuda is obliged to reciprocate hospitality extended to it by other nations.

But Cabinet Ministers like Deputy Premier the Hon. Irving Pearman, who chairs Government's Independence committee, say Bermudians are frugal by nature, and there is no reason to believe excesses that others have experienced will be repeated here.

Neither the Green Paper nor the position papers refer to overseas representation in Washington, Toronto, or Ottawa. Representation in all three of those cities was discussed in an earlier Green Paper in 1977.

Government's position papers note that Bermudians have experienced difficulty when travelling with the British Dependent Territory passport introduced in the 1980s.

Since then, Government has negotiated visa-free access for the passport in 14 countries in addition to the UK.

As citizens of a dependent territory, Bermudians who experience trouble when travelling abroad are entitled to seek help at the nearest British mission or consulate.

After Independence, the UK would continue to represent Bermudian interests for one year. "After that, Bermudian nationals in difficulty in Commonwealth countries would be able to approach the host Government for help,'' the position papers say.

"In non-Commonwealth countries, British missions would continue to assist if asked, although Bermuda would be expected to pay any expenses incurred, as it does now.

"These arrangements appear to have served the nationals of other independent Commonwealth countries satisfactorily.'' The costs of foreign affairs Bahamas $8.6 million Barbados $6 million Bermuda $1.3 million* *estimate