Independence for a cash crisis facing the proposed Bermuda Financial Centre.

And Mr. Winfield, who strongly supported Independence in Parliament before quitting Cabinet to focus on the BFCL, of which he is president, now admits debate over the controversial issue may have been ill-timed.

"Tremendous uncertainty'' in the international business world was making companies reluctant to set up offices here, he said.

BFCL may be forced to abort plans for a multi-million-dollar office complex if it does not secure the cash to repay $15 million in loans by March 31.

The dilemma, he said, was that in the current situation, potential tenants were reluctant to sign letters of intent for office space and as a result, potential lenders were unwilling to make loans.

"Whether it is real or perceived, there is a tremendous uncertainty out there because of a result of the discussion on Independence,'' he told The Royal Gazette .

"Whether the decision is to go...or not to go Independent, I think it is the uncertainty people are reacting against.

"And that does not bode well for a major project destined for the future of Bermuda.'' The "uncertainty'' began building early last summer and became a major issue in July, he said.

Mr. Winfield said he "was not convinced'' overseas businesses were being "scared away'' from setting up office in Bermuda.

"I think it's a wait and see attitude they're adopting,'' he said.

"It's the not knowing. The financial mentality says the best possible scenario for success is stability.

"And Bermuda's major appeal for many years has been its political and social stability.'' He declined to put a figure to the number of businesses reluctant to commit to the office complex, but said "it was enough to be concerned about''.

The office complex is to be built on the old Bermudiana Hotel site, the BFCL's main asset, which would be all shareholders would have if the company was liquidated March 31 in the event it cannot resolve its problems.

Mr. Winfield said BFCL was aiming for pre-release of about 70 percent of the office space before breaking ground on the complex, which is supposed to be followed by luxury condominiums and a hotel.

Refinancing of Bank of Bermuda and Argus Insurance loans and sale of the Bermudiana site has been considered.

He was certain there was enough demand for new office space in Bermuda.

Mr. Winfield stressed that having blamed Independence, he was not in favour of shelving the referendum.

"There's no question a lot of things need to be straightened out,'' he said.

Independence came up some three times while he was in the Senate and Cabinet and on "each occasion I was told `it's not the time' ''.

However, he admitted: "As we are dependent on international business, maybe this was not the time.'' Referring to the takeover of the Canadian, US and UK base lands and the running of the Airport, he said, "I think Bermuda is faced with an enormous array of challenges and it may be that we need to be focussed totally on those challenges and not have distractions. But I agree with Sir David Gibbons that we've got to go to a Referendum. The people of Bermuda need to make a decision. I regret it has taken so long -- it will be another six months before we see (any result).'' Sir David, a former Premier, had said last week it would be a "grave'' error to delay the Independence referendum planned for this summer but said the issue was "causing serious problems from the bank's point of view''.

Dissent among United Bermuda Party backbenchers, however, means passage of the referendum Bill next month is by no means assured.

Despite the odds, Mr. Winfield said he still holds out hope for the project.

"I have had promising discussions with the bank and others,'' he said. "I think the BFCL will become a reality. It's a question of timing.'' He added: "Our primary motive has been to look after the preferred shareholders.''