International companies are wary of moves to Independence.

And a clear message has been sent to Premier Alex Scott saying that, as far as the sector is concerned, there are ?almost no positives? and ?a number of potential negatives? should Bermuda move toward Independence.

In a letter to the Premier obtained by , the Association of Bermuda International Companies said Independence is both an economic and emotional issue which is best decided after full and frank debate and a referendum.

The letter came practically on the eve of Premier Alex Scott?s announcement last night of the imminent launch of a Bermuda Independence Commission.

ABIC represents 133 international companies with a physical presence on the island.

?Independence should not be forced on a reluctant population,? the letter dated Friday said.

?Referenda have been successfully used by many otherjurisdictions most recently by a number of EU countries before joining that union. The alternative of using a single issue General Election is unattractive given the distraction of individual candidates? popularity (or lack of) and the potential influence of ?party politics? on the outcome.?

It said all constituencies should be consulted and that international companies, as the ?primary engine of the economy? should be included in the discussion.

The legal and judicial system is the ?next most important? issue, ABIC?s letter said.

?It is essential that stability be maintained in this area,? the letter said.

?Clarity on who would appoint the judiciary, rights of appeal to the Privy Council, or other body, the overall governance structure and corporate and individual rights must be determined in advance.?

And it added that a number of constitutional and other issues, such as who should be the Head of State, control of the Regiment, renegotiation of treaties, and how the constitution is changed, should be predetermined as well.

The ABIC letter also highlighted the sector?s concerns about work permits and the Island?s Immigration regime.

It pointed out that while some progress has been made, ?Government should consider giving some assurances in the event the Island chooses Independence?.

ABICalso asked what wouldhappen to Bermudians who had taken up UKpassports, whether Bermudians would still have the right of abode in the UK and Europe and whether residents and visitors would enjoy US Immigration and Customs preclearance.

And, it added, that Bermuda was far from being a tax haven, and that the costs of Independence should be made clear.

?Increased taxes to pay for Independence would weaken the appeal of Bermuda as a business base and potentially increase the attractiveness of other jurisdictions.?

Addressing potential consequences for the value of the Bermuda dollar, the letter pointed out that ABIC members conduct their businesses in major world currencies and hold more cash in hand than Bermuda has currency in circulation.

?Bermuda?s AA and Standard and Poor?s ratings could be exposed if the currency is not properly supported,? the letter continues. ?While attached to the UK, Bermuda enjoys the benefits of a G-7 country and the stability that implies. This is an important factor for international business.?

It goes on to say that the public would also need to know about the costs and benefits of membership in organizations like Caricom, OECD, and the World Trade Organisation and it warned that "well intentioned forays" like Government's understanding with Cuba could jeopardize the Island's relationship with the United States.

?Bermuda is one of a very small number of jurisdictions that enjoys pre-clearance of US customs and Immigration and visa waivers for Bermudians. ABIC members consider this one of the important components of promoting Bermuda as an international business centre. Anything that jeopardises this relationship would not be well received by our members.?

The letter concluded: ?An understanding of the social implications beyond a new flag and the pride of being Bermudian ? is desirable as is a sense of the pace that policy changes would take place. Independence is not something that can take place in a vacuum without considerable involvement of all the stakeholders.?

It emphasised ABIC was providing input on the possible impact of Independence on the international business sector.

?In that context, there are almost no positives, and, as outlined above, a number of potential negatives. These need to be handled carefully if this sector, which has become the lifeblood of the Bermuda economy, is to continue its substantial contribution as employers, taxpayers and contributors to the community.

?Two essential ingredients in this process, in our opinion, are the need for a full and frank debate before any decision and then an inclusionary process which will allow Bermudians themselves to make this decision by way of a referendum.?

The Premier said last night he had received several queries on Independence from the international business sector.

"I have no difficulty in receiving a different point of view - that's what this discussion is all about," Mr. Scott said.

He said he did not consider that the PLP envisioned any ?dramatic change? to the judicial system, and agreed that many of the issues should be predetermined.

?By the time Bermudians are asked to take a decision, they will know the answers to them.?

And the Premier said he saw little threat to Bermuda?s ratings. ?Our ratings are solid. We?ve been good stewards of the economy and because they hold alarge cash resource ? that?s not going to impact the country. You?re talking about ? on paper ? one of the wealthiest countries in the world, statistically.?

He added:"I think we should be careful of red herrings ? real questions, yes, but we should also be careful of red herrings. This is a question that we will put before the agency that will be finding information for BIC and if it's a legitimate question, yes. And if it isn't a legitimate question, still we'll get an answer."

The question of the method chosen to go to Independence had to be thoroughly thrashed out in public debate, he said.

BIC will begin its work before the end of the year and will be in operation for about six months.

Following that, a public discussion will be held before the matter is debated in Parliament.

"You know the extraordinary thing? Everybody who says they think the referendum is best ignore the people who say 'I have a right to think the General Election is the way'.

?That means they don't want the PLP members and anyone else who thought the General Election is the way. But at the end of it, we may come up with a unique Bermudian solution."