And Premier the Hon. Sir John Swan "flannelled'' to avoid the question, according to the report.

The Sunday Telegraph reported the Queen's visit to the Island in a story tied in with Independence.

Reporter Mr. Robert Hardman was one of a group of journalists who flew in with the Queen and left over the weekend.

In his story Mr. Hardman reported the Premier's speech, in the presence of the Queen, as being "frank'' about Independence.

It went on: "There had been no mention of Independence in Sir John's election manifesto last October. But as soon as he was back in office, he pushed through a vote for a referendum on the issue.

"His party, the right-of-centre, multi-racial United Bermuda Party, is far from united on the question. Even the pro-Independence Opposition, the Progressive Labour Party, is grumbling.

"Nonetheless, the Island could be voting within a year and no-one is sure which way it would go.

"Independence talk is for the chattering classes. Everyone else is too busy trying to earn enough to meet a cost of living akin to life in Knightsbridge.'' Mr. Hardman says Independence is a mainly racial issue, with the black majority keener on a national identity than the 20,000 whites, who fear offshore investors will go elsewhere without the "security blanket'' of British supervision of foreign affairs and security.

The report states Sir John is now at odds with his predecessor, Sir David Gibbons, who is quoted saying: "You've only got to look at the top offshore centres around the world and realise that they have one thing in common.

Bermuda, the Caymans, Hong Kong, the Isle of Man, Jersey -- they're all dependent territories.'' Mr. Hardman continues: "Sir John argues that stability is all that matters and that an independent Bermuda would be a stable place. But he is surprisingly evasive on the benefits. `I am setting up a Commission of Inquiry to look at all aspects of Independence', he flannelled during an interview.

"His political opponents are equally hazy. Asked what Bermuda would gain, Ms Renee Webb, Shadow Minister for Human Affairs and Information, replied: `Control of our destiny.' "Up at Government House, Lord Waddington watches over the debate from a neutral distance. Having a British politician with a very silly hat as the ultimate symbol of authority is precisely the sort of thing which eggs on the nationalists.'' Lord Waddington is then quoted as saying there was a public outcry from the Bermudians when he suggested not wearing a uniform after hearing the Duke of Edinburgh would not be wearing his Royal Navy uniform.

Mr. Hardman said: "Across the Island, there is now a sense of embarrassment and regret that `nationhood' should have surfaced so publicly during the Queen's first visit in 19 years.

"Sir John has tried to play down his `new Bermuda' remarks by insisting that he had been talking about life after the closure of HMS Malabar .

"As Malabar employs less than 20 people, few are convinced.'' Mr. Hardman finishes his piece by saying the Queen would not be embarrassed by the talk of Independence, in fact the Duke of Edinburgh did discuss the matter during his visit.

The report ends: "Indeed Sir John's speech was nothing compared to his unfortunate choice of words when presenting Princess Margaret with an official gift in 1984: `I bet you can't guess what I've got in my pocket'.'' The Sunday Telegraph's report was the most complete story of all the British newspapers during the visit.