A reader drew our attention to a current column by Barry Riley, Investment Editor of the Financial Times, London. He discusses political risk in the financial markets.

After mentioning concern in London over what is happening to the government in Britain and what might be the result of electing a Labour Party government, he says: "Elsewhere, much bigger political hazards face Hong Kong as the territory waits for the transfer of sovereignty in June 1997. Meanwhile the mid-Atlantic paradise Bermuda is heading for a referendum on Independence in July (sic). The Bermudians would surely not be crazy enough to threaten the stability of their offshore financial industry in any way. But as with Hong Kong, the era of British dependent territories appears to be on the way out.

That is a pity, because over the decades they have been bastions of offshore financial security in several parts of the globe.'' "Bermudians would surely not be crazy enough to threaten the stability ... '' That's the common thought in many of the stories overseas. People seem to be open mouthed and unable to believe that Bermuda, which they see as paradise, could be tampering with its own success.

People abroad find it difficult to attribute the Independence referendum to simple Bermudian politics. They cannot find any necessity for the ruling party to play politics with Independence because, in most countries, political success is assured if the Country and the people are financially successful.

They look at Bermuda and find it impossible to believe that Bermuda's politicians are taking risks and tampering with their own success.

People overseas immediately think that Bermuda must have political stability problems because otherwise no one would be taking such chances. That, of course, is not true. Despite some recent threats with which everyone is familiar, basically democracy is in good shape in Bermuda. If it were not, this Independence debate would not be taking place.

Yet, political stability is vital to Bermuda's very existence as we know it today. It is not easy to convince people overseas that what is taking place is an acrimonious domestic exercise in which the will of the people will prevail.

No matter how strongly some people may disagree with the politicians who support Independence, this is and must remain a Bermudian family dispute.

We think that the people who advocate Independence are wrong but we firmly believe they are sincere. Because Independence is an emotional issue and because so much is at stake, views are often very strong and often exaggerated. Politicians like the Premier, Sir John Swan, truly believe that what they are suggesting is best for Bermuda. Sir John also believes that Independence would be best for his now disunited United Bermuda Party.

The problem is what all this does to the Country's image abroad for both success and stability.