According to the Caymanian Compass, the Independence issue in Bermuda and the move by the Government of Bermuda to have a referendum on whether or not Bermuda should go independent, may be giving a boost to Cayman's financial industry. "Although no one in the Cayman industry seems prepared to put figures on it, some in the industry appear to have a gut feel that part of the general increase in the level of inquiries and interest has much to do with uncertainty about Bermuda's future.'' Mr. Will Pineau, manager of the Cayman Chamber of Commerce, told the newspaper that the Chamber was getting a significant number of inquiries from Bermuda for information about the Cayman Islands. He also indicated that the office was getting inquiries from companies in other off-shore jurisdictions such as the Channel Islands, which might normally do business with Bermuda and were now examining their options. He said the issue of Independence in Bermuda had prompted some interest in the Cayman Islands.

Mr. Stanley Wright of the Bank of Bermuda in Cayman, who must be in a difficult position, told the newspaper that the Bermuda move had been positive for Cayman and that there had been a lot more traffic in terms of inquiries.

Mr. Wright said the upturn in Cayman was difficult to quantify but they were getting a number of inquiries and were meeting people who were looking around.

People, he said, were looking at contingency plans and options but he wondered how much of the looking would turn into real business for Cayman.

President of the Cayman Insurance Managers Association, Mr. Steve Butler, suggested there was a noticeable effect and said he had companies in the process of transferring and a few which had transferred.

Mr. John Darwood, chief analyst of banks and trusts for Cayman, said some producers of business were looking at the Cayman Islands a little more carefully but he had not seen anything like a wholesale movement of companies.

He did not think that present players based in Bermuda would move but suggested that new players might find Cayman more attractive.

An editorial in the same issue, headed "Financial stability'' said in part, "Anyone who has ever doubted the veracity of the assumption that the financial industry is extremely volatile and requires an atmosphere of political stability to thrive should closely follow the unfolding events in Bermuda.'' In conclusion the editorial said, "If this is happening months before the Independence referendum, and at a time when it is expected that only a minority of Bermudians will vote for going it alone, one may well conjecture how much business will go elsewhere if Bermudians were to actually approve plans to cut ties with Britain.''