Bermudians might be able to obtain full British citizenship after Hong Kong is returned to the Chinese in 1997, Governor Lord Waddington said yesterday.

In an unusually frank talk to the Hamilton Lions Club, the Governor also said: Authors of Government's recent Independence Green Paper "made pretty heavy weather'' of the Channel Islands example, when it concluded a similar relationship between Bermuda and the United Kingdom "would not be acceptable to either party''; The term "dependent territory'' is "singularly inelegant'' to describe a country like Bermuda, and "associate state'' or "associated terrritory'' would be better; Having a Bermudian Governor would be problematic, because the UK Secretary of State has the power to tell the Governor what to do; and His well-known personal views in favour of capital punishment do not "matter a jot'' when he exercises his discretion to commute a death sentence to life imprisonment, as he did last week in the case of convicted murdered Rudolph West.

The Governor said he was reluctant to speak on Constitutional matters prior to Bermuda's Independence referendum held last August 16, for fear he would be seen as taking sides.

"I'm still reluctant to speak today,'' he told the Lions over lunch at the Princess Hotel.

He was neutral on Independence, and the British Government's stance remained as it was stated by former British under Secretary of State Mr. Timothy Eggar in 1988.

Britain would neither encourage a dependent territory to achieve Independence, nor discourage one that chose Independence. "Our only test is to be certain that any such choice is the expression of the clear wish and will of the Government and the people.'' Bermuda was by far the most constitutionally-advanced of any dependent territory, and was to the greatest degree self-governing.

"Yet in the eyes of the international community, Britain is ultimately responsible for Bermuda,'' not just on defence matters and adherence to international agreements, but for her "good government'', Lord Waddington said.

It was not comfortable having all the responsibility in international law without the power to see those international obligations were fulfilled, he said.

Britain "should not be expected to shed any more power, short of shedding the lot''.

While it was "very unlikely'' Britain would consider changes to Bermuda's Constitution which further limited the Governor's powers, "it may be worth our going on to consider whether there is scope for any types of change outside the Constitution''.

On these points, which included his unhappiness with the name "dependent territory,'' Lord Waddington stressed he was expressing his personal views, not those of Her Majesty's Government.

Once Hong Kong was returned to China in 1997, the remaining dependent territories would comprise only 160,000 people, the Governor said. "Could there not once more be a common citizenship for those in the mother country and those in the dependent territories -- a reversion to the situation prior to the British Nationality Act 1981 and the immigration acts of the '60s -- one British citizenship?'' He did not know the answer, but "that would be a prize indeed'', Lord Waddington said.

Citing talks the Independence Green Paper committee had with UK officials prior to the referendum, the Governor noted the UK had made no promises post 1997, but "the door to change was certainly not shut and bolted.'' He then raised the possibility of Bermuda having a tie to the UK similar to that of the Channel Islands -- with full British citizenship under the British Nationality Act 1981, but no membership in the European Community or reciprocal free movement within Bermuda by EC members. And like the Channel Islands, Bermuda would keep its restrictions on property sales, even to other British citizens.

"I don't know whether anything like this is achievable,'' but "with the greatest respect to the writers of the Green Paper I think they made rather heavy weather of this suggestion,'' the Governor said.

The Green Paper included a thick appendix which "sought to explain how mysterious is the relationship between the Channel Islands and Britain,'' with conventions, rather than laws, restricting Britain's right to legislate the islands' internal affairs.

However, "I suspect that those who talked of a Channel Island solution didn't mean a new Constitution for Bermuda which sought to copy the Channel Islands position with all its uncertainties,'' he said.

"What they were advocating was a special status for the remaining dependent territories which carried with it the advantages which the Channel Islands undoubtedly enjoy.'' 3 Governor speaks on Constitution Mr. Phillip Smith in which he called for a Bermudian Governor, Lord Waddington said that would present problems of "dual loyalties'' to Bermuda and Britain, which can direct the Governor.

"I have had no specific instructions (from Britain) about any particular subject since I arrived here, and as far as I know none of my predecessors received any,'' he said. "But the point is that the power is there and could be exercised.'' The Governor can exercise real powers -- like refusing a Premier's request to dissolve Parliament -- the Governor noted.

"It could be argued that there is some advantage in having as Governor someone who is not only capable of acting impartially and would not be influenced by local political pressures but whose whole past is one of complete disinvolvement from the politics of the Island.'' Asked about the recent decision to commute the death sentence of West -- particularly in light of a 1990 referendum in which Bermudians voted strongly in favour of capital punishment -- the Governor said he could not comment on the Mercy Committee.

Did the decision mean his own views on the death penalty had softened? "I don't think my previously expressed views on capital punishment really matter one jot. You must rely upon me to carry out my constitutional duties as laid down in the laws of Bermuda.''