Racial stereotypes are fuelling Bermuda's anti-Independence movement, Premier the Hon. Sir John Swan said yesterday.

And Independence would help dispel false racial notions among both whites and blacks, Sir John told the Hamilton Rotary Club.

"White people think black people have too many children,'' Sir John said.

"They're incapable of looking after them.'' Whites also believe blacks depend too much on social assistance, cannot handle posts of great responsibility, and "turn their stereos too loud'', he said.

"These stereotypes have a lot to do with the motives of the anti-Independence movement today,'' he declared.

The Premier said blacks held similarly false stereotypes about whites.

"Generally, black people think all white people are rich,'' he said.

"They think white people get all the best jobs and opportunities. They get bank loans easily.

"The law treats them leniently and they all have another country to go to if Bermuda has trouble.'' Race divides Bermuda, the Premier said. Blacks and whites are "cordial... but essentially strangers,'' mostly attending separate schools and churches.

A referendum on Independence is to be held on August 15. If Bermudians vote "yes,'' then "Independence will begin to change that,'' Sir John said. "We won't be strangers to each other.

"This will be our Country, each of us will be responsible for it,'' and "each of us (will be) pulling in the same direction''.

He described Independence as "a powerful and incredible catalyst for that subtle shift of attitude''.

"I don't believe it will happen overnight, but it will happen.'' He said it had been the experience after Independence of every country he knew. "Some of them did experience hard times, but none of them want to turn the clock back.'' Independence would provide Bermuda another type of benefit, said Sir John, who fought hard inside his United Bermuda Party caucus to get an Independence Referendum Act through Parliament. While the Premier and some Cabinet members and MPs favour Independence, the UBP Government has no position for or against it. Next Tuesday, Tourism Minister and Independence opponent the Hon. C.V.

(Jim) Woolridge is to address Rotarians.

The Premier said that by standing on its own feet, Bermuda could better position itself in a rapidly-changing world.

It was "very foolish...to cling nostalgically to the way things used to be,'' Sir John said.

With the world dividing into trading blocs like the European Union and the North American Free Trade Agreement, "as a British Dependent Territory we do not always have freedom of action where those political and trading blocks are concerned. We can do what is in Britain's interest, but not what is not in Britain's interest.'' The Premier noted that some time ago Bermuda was invited to join a European grouping that might have given the Country some advantage.

In return, however, "we would have had to drop our immigration barriers, so that some Europeans would have freedom to come here and find jobs'', Sir John said.

Rules governing company registration were among "a host of other ways in which Bermuda would have had to change radically in order to qualify...for membership.

"There was never any question of our agreeing, but I mention it because one day, there is a possibility we won't have any choice. Our ties to Britain will force us to comply with rules or conventions which we will find inconvenient.'' After his speech, Sir John denied he was saying that by remaining a dependent territory Bermuda could one day be forced to lift its immigration controls.

"I did not say that,'' he said. But there could be a day when the UK no longer wanted Bermuda as a dependent territory.

Concerns about Independence mainly related to cost, the effect on Bermuda's financial standing, the possibility of abuse of power after Independence, and whether there were any benefits attached to the move, he said.

While Independence was costing Bahamas $8.6 million a year and Barbados $6 million, the Premier believed a Cabinet committee's estimate that it would cost Bermuda $1.3 million was accurate.

Bermuda was a smaller country with little need for overseas missions, and it would not be paying a CARICOM membership of $800,000, he said.

"Independence will cost much less than most of us thought.'' Economically, Bermuda was in excellent shape. But that was not due to Bermuda's ties to Britain, and "none of these things would change if Bermuda became Independent''.

The Hon. Sir John Swan