Government Minister believes.

But Health and Social Services Minister the Hon. Quinton Edness ruled out the possibility of an Island-wide referendum on independence in the near future.

He made the disclosure this week after statements by the Deputy Governor that Great Britain was not pushing or holding back Bermuda from independence.

The recent decision to close the Royal Navy's HMS Malabar in 1995 was not made out of the blue and was based on Britain's need to make a major savings in defence, Mr. John Kelly said on Tuesday.

Mr. Edness said that before any vote on independence took place, Government officials must discuss the controversial subject, look at the pros and cons of cutting ties with Britain and determine whether Bermudians were in favour.

"The Government has not had a recent, full discussion on the subject of independence,'' he said.

"But it will most likely in the New Year cause a thorough discussion to take place and will consider all the factors, externally and internally, impacting on Bermuda.

"It is most likely that the result of this discussion will cause a full re-examination of the matter of independence for Bermuda and after such a review, all of the factors, both pros and cons, will be put before the people of Bermuda in preparation of them making an intelligent decision as to any constitutional changes that should take place.'' Mr. Edness stressed independence was "not a matter that should be treated lightly or decided in haste''.

"Nor should a decision be made at this time on the vehicle that should be used, referendum or general election, to determine the wishes of the people,'' he said.

A number of recent developments had forced independence to the fore again, he said, including: announcements to withdraw by all three overseas military bases here -- most recently Malabar ; the changing relationship of the dependent territories with the mother country and her preoccupation with the EEC; the NAFTA agreement, the return of Britain's largest colony, Hong Kong, to China in 1997, leaving only about 200,000 people in dependent territories.

"The first effort must be made to fully inform the public of the advantages and disadvantages involved in a constitutional move to independence,'' Mr.

Edness said.

A large portion of the Premier's Christmas message this year hinted at independence.

"The priorities of the whole world are changing..,'' the Hon. Sir John Swan said. "We see large nations placing more emphasis on the need to take care of themselves. There's nothing wrong with that. But, as recipients of their benevolence, it is now necessary for us to follow their lead and take care of ourselves.'' Bermuda stood on "the threshold of a new dimension in its history,'' he said.

For the first time, he said, issues like the economy and crime were taking a back seat to the "reality of Bermuda's isolation in the world''.

And at a closed meeting of the Bermuda International Business Association last Friday, Sir John said that independence would likely be "back on the agenda'' as a result of the US, Canadian and now UK military withdrawals.

Another senior Government official agreed, saying it was only sensible for the Island to look at all its options as it comes to grips with the changing world.

Government Leader in the Senate, the Hon. Mike Winfield, said he thought consideration of independence was a natural follow-on to recent events.

"Constitutionally, we're tied to a (European) trading block which is on the other side of the Atlantic while the most powerful economy in the world has become much more powerful as a trading block through the North American Free Trade Agreement (NAFTA),'' he said.

"We should be cognizant of that. Little Bermuda could become isolated if it is not careful.'' Sen. Winfield, a long-time supporter of Independence, said Government's position on the issue remained unchanged: any decision on Independence would have to be made by a majority of the people, most likely through a referendum.

Independence has been outright backed by Bank of Bermuda Mr. Donald Lines, who said Bermuda must consider the issue in terms of economic survival.