Independence would cost Bermuda between $800,000 and $2.3 million a year, according to a Government discussion paper on Independence tabled yesterday.

That compares to costs of between $1.2 million and $1.9 million outlined in the 1977 discussion paper, called a Green Paper, tabled by then Premier the Hon. Sir John Sharpe.

In that sense, the Cabinet committee chaired by Deputy Premier the Hon. Irving Pearman found that Independence has become much less costly than in 1977, since inflation has increased costs by a factor of 2.5 to 3.0 in Bermuda, the United States, and the United Kingdom since 1977.

Applying the lowest inflation factor of 2.5 percent to the 1977 figures would result in 1995 Independence costs of between $3 million and $5.8 million -- much higher than those outlined in the latest Green Paper.

The Green Paper, titled The Implications of Independence for Bermuda, sets out four Independence options for Bermuda, each with a different cost.

Under the cheapest option, Bermuda would not apply for full United Nations membership. And while it would remain a member of the Commonwealth, it would not belong to the Commonwealth Secretariat, joining the tiny Pacific islands of Nauru and Tuvalu as the only independent countries which do not pay a Commonwealth membership fee. Also, the Island would have no overseas missions, instead relying on "conducting business with foreign missions in Bermuda, by direct correspondence, and by ministerial visits as necessary''.

Bermuda's only costs under the first option would be $473,557 to set up an External Affairs Ministry and $325,000 to join a handful of UN agencies.

The two costs mentioned in Option 1 recur in Options 2, 3, and 4.

Breakdowns are provided in the Green Paper.

The Ministry of External Affairs would not stand alone, but be part of the Premier's, or some other Cabinet Minister's, office.

The $473,557 Ministry cost includes a $50,000 one-time cost to outfit offices, meaning the annual costs would be $423,557.

Those costs break down as: $101,160 for the Permanent Secretary's salary; $41,598 for an administrative assistant; $34,760 for a private secretary; $27,638 for a receptionist; $18,401 for staff benefits; $100,000 for professional/special services; $40,000 for office expenses; and $60,000 for travel/entertainment.

The cost for an External Affairs Ministry estimated in the 1977 Green Paper was $160,000, but no breakdown was provided.

The other cost under Option 1 -- the $325,000 UN agency cost -- includes subscriptions to the International Telecommunications Union, the Universal Postal Union, the International Maritime Organisation, UNESCO, the World Health Organisation, the International Labour Organisation, the World Meteorological Organisation, the Food and Agriculture Organisation, and the International Civil Aviation Organisation.

Under Option 2, Bermuda would become a full member of both the UN and the Commonwealth Secretariat, but again would open no overseas missions. The estimated cost is $1.3 million.

The $798,557 in Ministry and UN agency costs would remain the same. On top of that would be a $102,000 UN membership fee, a $305,000 contribution to the UN peacekeeping budget, and a $80,000 subscription to the Commonwealth Secretariat.

Under Option 3, estimated to cost $2.1 million, Bermuda would have a small mission combined with its Tourism office in New York, and a small mission in London. Ambassadors and High Commissioners would be based in Bermuda.

Thus, the only cost on top of those in Option 2 would be $762,996 for two overseas missions -- $350,233 for the New York mission, and $412,733 for the London mission.

Each mission would have personnel costs of $183,933, covering a charge d'affaires, an administrative assistant, and a private secretary. And each mission would budget $50,000 for travel and entertainment. Other costs for the New York office would include $36,300 for office space, $30,000 for office expenses, $25,000 for staff rent subsidy, and a one-time $25,000 cost to outfit the office. Other costs in London would include $52,800 for office space, $40,000 for office expenses, $36,000 in staff rent subsidy, and a one-time $50,000 cost to outfit the office.

Under Option 4, the costliest at $2.3 million, Bermuda would also have Ambassadors or High Commissioners in New York and London. In each case, a $101,160 ambassador's salary would be added, and staff benefits would increase by about $7,000. In New York, office expenses would rise to $50,000 from $30,000, but in London, no additional office costs are identified.

The Green Paper also identifies one cost saving under Independence, though it is not factored into the totals. The $266,000 cost of the Deputy Governor's office would be removed, the document notes.

The cost of sovereignty The Green Paper outlines four Independence options for Bermuda: Option 1 Cost: $798,557 Ministry of External Affairs Partial membership in Commonwealth Membership in some United Na tions agencies Option 2 Cost: $1,285,557 Ministry of External Affairs Full membership in Commonwealth and UN Option 3 Cost: $2,093,523 Ministry of External Affairs Full membership in Commonwealth and UN London and New York missions Option 4 Cost: $2,329,505 Ministry of External Affairs Full membership in Commonwealth and UN Ambassadors in New York, London