SAN FRANCISCO -- Bermuda's competitors in international business are using the Island's lengthy Independence debate in their marketing at the biggest insurance conference in North America, a senior banker claimed this week.

And one international company based in Bermuda has passed a resolution to leave the Island if it goes independent, said Bank of Butterfield senior vice president Mr. Stephen Kempe.

Mr. Kempe was reacting to an article on the Independence issue carried in insurance newspaper Lloyd's List on Tuesday with the headline "Island lays plan to quit the nest''.

The article, by Bermuda Sun business reporter David Marchant, began "Shush.

Don't tell anyone, but Bermuda is thinking of going independent'', and went on to outline the divisions in the UBP and between the Government and the business community on the issue.

"Discussing this issue in great length and reading reactionary articles like that breeds an awful lot of concern,'' Mr. Kempe said at the RIMS conference in San Francisco.

He said there was "known and unknown business'' being lost as a result of the prolonged debate.

"Articles like that concern me because they attract attention to a situation which the Island is considering. A lot of people feel that it could possibly have a very detrimental effect on our ability to generate new, good quality business for the Island,'' he said.

"International business is built on stability, trust, integrity and all those good things. It is important that we maintain that. We shouldn't wash our dirty laundry in public. We should deal with these things quietly and in a dignified manner, and more importantly, get on and do it efficiently and quickly.

"There is no doubt, and I can tell you that I have it first hand, that the other jurisdictions to the south, Caymans, British Virgin Islands are all using this to their very distinct advantage to promote their business.

"I know that both of them are using the fact that we are considering independence. They are planting that seed in the minds of potential clients, even here at RIMS.

" It's a well known fact that on the Cayman road show that went New York, London and Hong Kong, they were handing out copies of our Green Paper. They are using that to our detriment at this stage of the game.

"There is real concern about this issue and I know one company in international business that has made up their minds already. They passed a resolution that if we go independent they are moving out of Bermuda. It's a company that has been in Bermuda many, many years. One of the things they want is the British stability.'' This included Bermuda's judicial system and appeals process, he said.

Mr. Kempe said it was his personal view that 60,000 people in the middle of the Atlantic Ocean would be dependent on somebody. He said Bermudians will weigh the economic issues when considering their vote.

"Bermudians are economic animals, economic people. When we look at it this way, we see we have a pretty good deal. We are self governing. There are a couple of areas, external affairs and internal security, that are handled by Britain.

"We've managed our affairs very well. That's not to say that we couldn't manage them well as an independent nation. The fact of the matter is that our business wants certain ingredients and we need to provide those things.

"From a personal point of view, it should be important that there is a very good turnout for the referendum. Which ever way it goes we will have to live with it and get on with it.

"The sad thing about it is that we cannot measure what business we have not obtained as a result of this. We have to be quite honest with ourselves. We have enough economic challenges at the moment because we are trying to find money to deal with the base lands.

"So why do we want to create more expense at this time?''