to the 60/40 ownership rule, former Premier Sir John Swan has said.

Speaking to Sandys Rotarians at their weekly meeting last Wednesday, Sir John said Government needed to be more transparent about its intentions for the country and subject any plans to public debate.

He said he was personally not against keeping Bermuda's doors shut -- but the country must decide to what extent they are opened.

"Get the stakeholders involved in their destiny,'' he said. "I don't have answers. Bermuda is at the most critical of crossroads. We're making a fundamental decision that will affect your children and your grandchildren.'' Sir John said that the decision was economically more important that independence. He referred to Japan, whose protectionist and exclusionary practices, he said, led to disaster.

"When it was faced...with the real world, you saw the Japanese economy go into a tailspin.'' "You can't take it all and give nothing if you want to be a global player.

Countries want us to open up our channels of opportunity to them as they have for us.'' He said Bermuda's ownership rules could not be regarded in an isolated context, specifically that of banks.

While at the Republican National Convention in Philadelphia earlier this month, Sir John was told that if elected to power, the party would try to eliminate capital gains tax -- one of the primary incentives for companies to relocate to low-tax offshore jurisdictions. Bermuda, he said, needed to make sure that its policies and practices made doing business here attractive.

"If we don't address this in a timely way,'' he said, "we will fall behind.

What will make Bermuda fit into the world we live in now?'' Sir John said Bermuda should carefully consider which sectors it would open up.

"You can't open up the gate and want to close it again.'' He said Bermudians should ask themselves if they really wanted the Island's institutions, such as banks, to be owned by foreigners. He also asked if the Island was prepared to admit foreign banks if the 60/40 rule is relaxed.

"Something that serves our purpose today might not tomorrow,'' he said.

"These decisions will affect your children and your grandchildren. Once you open up Pandora's box, how far do you go? How will everyone benefit?''