As Bermuda and the other Overseas Territories await the British Government's White Paper on new arrangements for the 21st century, the chief minister of the Isle of Man has called a meeting at which members of the Tynwald, the island's Parliament, will "start the debate and examine all the issues that would be involved in adopting constitutional changes that might lead to Independence''.

As The Royal Gazette reported several weeks ago, David Canaan, a former Manx Treasury minister had late last year tabled a motion calling on Government to prepare contingency plans for Independence for the Isle of Man and for linking the Manx pound to the US dollar.

Chief Minister Don Gelling visited the British Home Office in January to receive briefings on "matters of international interest.'' The Isle of Man is a Crown Dependency, a different constitutional relationship from the Overseas Territories, of which Bermuda is the largest.

Mr. Gelling was reported to have been given "reassurance'' that in the area of business taxation, those involved in the discussions were "well versed with the valid arguments to be used against any suggestion of European Union interference in'' the Isle of Man's taxation arrangements.

Yet almost immediately upon his return to the island, Mr. Gelling called the meeting. "It is understandable that people will call for Independence if they feel that their sovereignty and prosperity are threatened by a foreign power,'' Mr. Gelling told a reporter.

That power is not Britain; it is Germany, which assumed the presidency of the European Union in January. The German Minister for Europe, Gunther Verheugel, announced that "British offshore tax havens have no place in a Europe with a single currency.'' A reporter from The Royal Gazette was yesterday unable to speak with the Minister.

"What was understood from Mr. Verheugel's statement was that the British Government could and should harmonise taxes between itself and its offshore British Dependencies,'' wrote reporter Peter Harrison after an interview with Mr. Gelling.

Sir Charles Kerruish, president of the Tynwald, said that the German attitude posed the greatest threat to the Manx people that he had witnessed in more than half a century in politics. "While traditionally the UK can be relied on to protect Manx interests, that might no longer be the case,'' said Sir Charles.

UK Member of Parliament for Great Grimbsy, Austin Mitchell, tabled an Early Day Motion in Britain's House of Commons in December, calling for a report on the constitutional structures in Britain's Overseas Dependencies.

The motion made reference to "intimate political systems regulating huge financial flows and thousands of companies.'' Mitchell claimed that the investigation, to be followed by a report, would ensure that "the lop-sided development in offshore finance did not accrue to island elites and are spread to the people.'' Mitchell's motion was signed by a total of 33 Members of Parliament, including Labour members Chris Mullins, Ken Livingstone, Dennis Skinner and Tony Benn.

Mr. Gelling wrote to each of the 33 signatories to the motion and several responded. "It is quite clear that many did not understand the concept of a Crown dependency,'' Mr. Gelling said. "Some were totally unaware that the (Isle of Man) is governed by a democratically-elected House, or that our regulatory legislation is in many cases more advanced than similar legislation in the UK and other European countries.'' INDEPENDENCE IND BUSINESS BUC