rebellion spelled defeat for a new Independence referendum bill.

But moments after two MPs defied the Whip on a key vote while two others were nowhere to be seen, Premier the Hon. Sir John Swan sought to push the referendum plan through another way.

That debate could continue next week. The extraordinary events yesterday ended on a high note for the Progressive Labour Party. Opposition Leader Mr.

Frederick Wade's motion rejecting Government's call for a Commission of Inquiry passed without objection.

Government, which had already scrapped its plan for a Commission of Inquiry in response to UBP dissent, remained committed to some form of Independence fact-finding, followed by a referendum. But Cabinet Ministers could not provide the specifics.

"You'll have to talk to the Premier about that,'' said Deputy Premier the Hon. Irving Pearman.

Another Minister shrugged and shook his head when asked to explain the Government's plan. Sir John later said he would meet with his caucus and the UBP might now get the facts on Independence through a Green Paper, as demanded by Mr. Wade. "It's hard to tell at this stage,'' he said.

Sources said there was disagreement and confusion over how to proceed in the House at a UBP caucus yesterday morning.

And Sir John said the lost vote was "a technical defeat'' that reflected a difference of opinion over which should be dealt with first -- a Senate amendment preferred by backbenchers or the new bill preferred by Government.

The Premier said he did not see the defeat as an attack on his leadership.

"Even I admit it's not an easy issue,'' he said of Independence.

"Governments sometimes have to face tough issues, particularly when they have a slim majority.'' Whip and caucus chairman Mr. John Barritt, who saw Government lose its second key vote during his short tenure, was overheard outside the chamber saying he would offer his resignation.

"I wasn't happy with that display of party unity, and I don't enjoy being blindsided,'' Mr. Barritt later said. "My appointment and my continued tenure are a matter for the Premier.'' Sir John said he did not hold Mr. Barritt responsible.

Talk of discipline against those who defied the Whip would be "a logical consequence of what happened today,'' the Whip said.

More sparks flew between Cabinet Ministers yesterday than between the Government and Opposition.

Tourism Minister the Hon. C.V. (Jim) Woolridge said the Premier's Independence initiative was "the equivalent of (former Rhodesian Prime Minister Mr.) Ian Smith declaring his UDI (Unilateral Declaration of Independence).'' Progressive Labour Party veteran Mrs. Lois Browne Evans said it all added up to "complete disarray in the United Bermuda Party.'' The drama began when the Premier sought to introduce a new Independence Referendum Act.

It would have required a two-thirds voter turnout before a vote in favour of Independence could be acted on and replaced the Commission of Inquiry with a commission that reported to Parliament.

Sir John's attempt to table the bill drew protests from the Opposition, who said House of Assembly rules did not permit the bill to be introduced during the current session.

It was essentially the same bill as the Independence Referendum Act 1994, Mr.

Wade argued. Since that bill had already been passed by the House and sent on to the Senate, the new bill was not permitted under Rule 47, he said.

But Speaker the Hon. Ernest DeCouto said the Rules allowed the bill to be introduced for first reading. He would not allow second reading on May 20 unless the earlier bill which was amended by the Senate was withdrawn.

But when the new Independence Referendum Act was put to the House for first reading, Government lost the vote 18-17 as Oppostion MPs stamped their feet in celebration.

The Hon. Ann Cartwright DeCouto, who quit Cabinet over Independence, abstained from the vote. She had done the same thing when the earlier bill squeaked through the House 20-18 in February.

This time, she was joined by rookie MP Mr. Trevor Moniz, who hardened his reputation as a UBP rebel after breaking ranks when Government was defeated on election of the Speaker in November.

There was silence when the names of former Government Whip Dr. David Dyer and the Hon. John Stubbs were called.

"I got behind in my medication'' and had to leave the House, Dr. Stubbs later told The Royal Gazette . "I've got back pain and nausea and vomiting. You can't vomit in the House of Assembly.'' Dr. Stubbs, who has been ill for more than a year, said his absence was not related to his feelings about Government's agenda.

Mr. Moniz said he favoured the amendment the Senate approved, which would require a majority of eligible voters to say "yes'' in a referendum before a mandate for Independence existed.

It reflected the position of Government's 1979 White Paper, the view of the British Government, and "plain good sense,'' he said.

Though he briefly appeared shaken by the setback, Sir John recovered quickly enough to ask the Speaker that the Message from the Senate outlining the amendment of Sen. Alf Oughton be referred to committee. He then sought to change the amendment so that it would equate to a key clause of the new Independence Referendum Act which the House had just rejected.

Two-thirds of voters would be required to cast ballots, but a simple majority of votes cast would decide the issue, the Premier said.

The change would address the intent of the Senate amendment without creating a situation in which a vote for Independence was nearly impossible, he said.

Before debate began, the House agreed to the Premier's request that the committee "report progress and rise and ask leave to sit again.'' Debate in committee could resume next Friday.

Mr. Wade, who insists that Parliament should update a former Green Paper on Independence and wants the issue decided in a general election, saw his motion rejecting a Commission of Inquiry win support from both sides of the House.

Sir John said he could support the motion in light of Mr. Wade's concerns about the involvement of the Governor and the punitive aspects of a Commission of Inquiry.

The debate on Mr. Wade's motion saw a punch-up between Tourism Minister Mr.

Woolridge and Transport Minister the Hon. Maxwell Burgess.

Mr. Burgess accused his Cabinet colleague of spouting "rhetoric'' that "frankly misleads the people.'' "You want to blackmail people,'' Mr. Woolridge shouted back.