Hon. Sir John Swan said yesterday in a wide ranging speech on the second day devoted to discussion of the Government's position papers.

"One cannot begin to develop arguments about the shape the Constitution may take without looking at Bermuda's history,'' he added.

The Premier said Bermuda's history began with a shipwreck that bought Sir George Somers here.

Subsequently, he claimed, blacks were bought in to dive for pearls in 1619 (the correct date was 1616). He also declared that Chinese were later brought in to work in the silk trade.

The Portugese were brought in to work in the agriculture industry. Sir John said Bermudians complexions demonstrated the variety of ethnicities that came to the island to eke out a living.

Sir John said both the struggle for emancipation and women's suffrage were significant and hard-fought victories.

He said the advent of women earning their right to vote set the political stage for modern Bermuda politics.

"We still had an apartheid society,'' he continued. "Only after 1959 did we see the removal of the aspects of it, such as the removal of barriers to owning and buying property, sitting down and upstairs in the theatre and going to any hotel or restaurant.'' Sir John said this exclusion did not affect only blacks. It touched poor whites and the Portugese community as well.

The Premier said the boycotts and sit-ins that characterised the 1960s marked an important milestone in Bermuda's history and set the stage for the movement for universal adult suffrage.

After the work of the 13-member universal adult suffrage committee, legislation was finally passed that removed all the impediments to voting, even though it did not go as far as they had wished.

Sir John said the Belco strike of 1965 was brought about by persons who felt both pain and pride and were willing to stand up to authority.

Today Belco's internal trade union is the best on the Island because there is less acrimony and the company is recognised both locally and internationally because it trains its staff and they have good pensions and benefits, he said.

Sir John said as a consequence of the Belco riots, other things changed in Bermuda but there were other areas where progress was not made.

He said the Progressive Labour Party, that was composed almost entirely of black members, was not a fact of which he was proud, although he understood the pressure placed on whites who decided to join the PLP.

The Premier said the failure of school integration led to a situation where young Bermudians were not getting to know each other well and this helped to promote a belief in some circles that some groups of people were better than others.

Still, Sir John said it was important not to undervalue the progress that Bermuda had seen so far, because other countries like the United States were still in the throes of difficulties long after they had achieved independence and written their own constitutions.

Sir John said he had lived through segregation when he was a student in the United States and it was now important for Bermudians to take seriously the question of where they were going as a country.

The Premier said that Bermuda had many outstanding leaders including Sir Henry Tucker and Dr. E.F. Gordon, Dr. Cann, W. L. Tucker and Dr. King who were giants because they each fought for something that led to a positive change in Bermuda.

Despite this, Sir John said Bermuda continues to stand at the brink. What was require now was some discussion of why we are where we are, he said.

Sir John said it was not sufficient to acknowledge the progress Bermuda had made because it was not the whole picture.

More importantly, he said, Bermudians would become more settled as a people when they were able to say that they had created their own progress.

"It may be true that Britain has served its own purposes. It has served itself and served us,'' he said.

Sir John said the 1966 Constitutional Conference was made necessary because of the formation of the PLP in 1963 and the UBP in 1964.

The conference aimed to give a direction to the parties and ended up producing a document that paved the way for the internal management of Bermuda.

Sir John said the Bermuda Government paid for everything from Britain, including the British troops who came to Bermuda to help quell the riots in 1977.

Soon afterward Gen. Gilbert recommended that the Bermuda Regiment be strengthened so that it could handle any other civil disturbance which arose.

The Premier said Hurricane Emily in 1987 showed how well Bermudians can come together.

Sir John said rising expectations had led some young people to become frustrated with themselves when they did not get what they want.

They became frustrated both with themselves and those persons they perceived to have caused this to occur.

The Premier said it was desirable for Bermudians to start to look at the solutions to the crime and drug problem and work towards them.

Sir John said he was not in favour of building the new Westgate prison, but it was a necessary step to get away from the "caveman mentality'' that existed at Casemates where there was no hope for rehabilitation for inmates.

With the Cold War over and the Berlin Wall dismantled, Sir John said Bermuda's Independence discussions was taking place at a crucial juncture.

The United Kingdom was trying to decide what role it wanted to play in Europe and Bermuda needed to fashion a new relationship with America.

Part of the new thinking that must pervade the Island, he suggested, was a movement away from seeing everything through the prism of the "bottom line''.

Although money and material things had their place -- the materialism of the 1980s was essential to help Bermuda pay its bills -- Sir John said Bermuda needed to continue to asses its relationship with the United Kingdom and ask whether it was in its long term best interest.

The Premier said it was important that Bermudians were educated and that young people felt there were more options for them than a career in either tourism or international business.

"Independence is about more than raising a flag or producing a national song.

It is a question of how we keep our sense of purpose going so our young people feel they want to be a part of it.'' Sir John then launched a lengthy attack on the media, saying that reporters distorted stories.

Warning that some media outlets risked losing their licences, Sir John also called for an end to Letters to the Editor signed with pseudonyms, saying that they were unfair.

Some letters were inaccurate, but it was impossible for people in public positions to respond to them because they did not know who had written them, he said.

Turning to the question of holding a referendum, Sir John said: "A referendum is one of the most purest forms of expressing a subject.

"We should have had a referendum on the Homosexual Bill. People would have decided whether they wanted it or not. How did the country feel about it? We have to live with the decision made. The decision pleased some but created tremendous feelings in the community, especially with the churches. They feel they had no say in the matter.

"It is morally right that when there is a fundamental question asked, people in Bermuda have a concern. We should vest in the people their right on an issue that is so profound, and that is why the referendum is so important and we should use it more often.'' Sir John also said that he wanted to make Bermuda a "first rate country and I want to give Bermudians the tools to make decisions.'' He added that an Independence White Paper would be produced after the referendum.

"Our system works. The public is being misled by the Opposition. They have chosen to boycott the referendum and it is unfortunate. I could see if they said at this time we are against Independence, people have fought and died for this, this freedom in enshrined in our constitution.

"People should not think that they should give up something so fundamental.

Nobody can tell me that this is not a time to take stock.'' The Premier told the Opposition that what he saw was a desire to "push people down''.

"If the Opposition decides that they want to pull the plug they will do a disservice to the community and we will bankrupt our morality.'' He added that Bermuda had to recognise the need for a collective decision.

"This is our Bermuda, and we have to make a decision about it. If the results come in indecisive, do you think international businesses will feel more comfortable? If you think there is confusion now, it will only be worse.

"The referendum system is not a perfect system, but it's the best we know on this subject.'' Sir John asked the Opposition why they did not abstain when the Homosexual Bill came up.

"This is a vote of conscience, this is about whether or not Independence should come about. We will not repeat the process of the Homosexual Bill. Let the people decide what will be.

"The referendum process is important to Bermuda, the more important decision comes out in the referendum.'' He added that in Switzerland, decisions were vested in the public.

"Nobody should be allowed to hijack the decision and it is essential in the new Bermuda,'' he said.

Sir John referred to a letter he received from a young white women who said that it was important to "assess carefully what the destiny of Bermuda must be. Don't take it lightly or cheaply.'' He said: "A referendum is what crossroads are all about, and Bermudians need to take time out.

"We can be an international centre for the world and in the 21st Century we can have tremendous capital flow in Bermuda.

"From what I have been told, if the PLP was elected, some international businesses would not be inclined to keep their businesses here. I have told those businesses that the PLP are Bermudians too, but they feel that way because of experiences they have had in other countries.'' Sir John added: "I am a strong believer in Independence. There is no comparison between the Cayman Islands and Bermuda. They are one of the biggest money laundering countries. Don't tell me that we have to be like the Cayman Islands, we are closer today to Switzerland in development than the UK.'' He also said if the public think that "we are playing tricks it would only take an election to put us out. The Opposition needs to look at whether or not this is the time for Independence. I believe Bermuda is ready to look after its own affairs, and we must put faith in our own people. Out of its people comes Bermuda, its not out of Bermuda comes its people.

"If we believe that it raises the self-esteem of our people. We must be a nation that recognises itself through its people.'' Shadow Home Affairs Minister Mr. Alex Scott (PLP) said the Opposition was treated to an "extraordinary presentation by Sir John discussing his accomplishments through the past 30 years''.

"Sir John seems to be stunned by the criticism towards him and his party over the last few months.

"He stated that The Royal Gazette letters to the editor, that are not signed, should not be allowed. But he must realise that things are not always pretty and attractive.'' Mr. Scott added that the letters are an expression of individuality and they must be supported and allowed.

"The Premier thinks that a single yes or no referendum vote solves the problem, and he wonders why we all can't hold hands together and go off into the political sunset. It's not done that way.

"The stumbling block is Sir John Swan. He waves the flag of democracy which is a fatal mistake. The moment has not arrived. The whole makeup of the referendum is what we inherited from Great Britain. It's home-grown with roots in Great Britain and the branches are here. We have to be drawn together before we have a victory dance.'' Mr. Scott also said that if the Opposition party could walk Sir John five years into the future, "he will see then how his proposition is flawed''.

"Sir John would have us believe that the referendum is as pristine as mother's apple pie.

"The Premier talks about how he has benefited from the community but I believe that the stand we take will benefit his children and the children of the future.

"He's dividing the Opposition, telling us to come on over the water. But the stance that Dr. Gordon, Mr. Tucker, Dr. Cann and Dr. King took then is the stance that we take now.'' Mr. Scott added: "We in Opposition say `hold your fire and wait until you see the whites in their eyes'.

"The Premier is recommending that we take that all important step by saying yes or no but there has not been any talking here, no sharing of secrets. We have been asked to sign on the dotted line and talk later.

"Sir John said today that we stand divided and sadly we agree.'' Mr. Scott said it was important that more discussion on the issue of Independence be shared with the international business community and Government had a duty to ensure that all views were heard.

This included an airing of all the possibilities open to voters including the right to abstain.

Mr. Scott said it was wrong for Government to use public funds for its education campaign without giving the people the option to abstain on August 15.

The Shadow Labour and Home Affairs Minister said the voting system needed to change and the time had come for a "real assessment'' to be made.

Mr. Scott said many of the problems that exist in Bermuda were the fault of Bermudians and that there had been precious little change during the Premier's reign of some 13 and a half years.

"After Independence the glass ceilings will still be here, our drug problem will still be here,'' he said. "We have to work these problems out now.'' Mr. Scott then sought to correct the Premier, who incorrectly said it was Mr.

Arnold Francis who attended the 1966 constitutional conference when in fact it was the late Mr. Walter Robinson.

And unlike Sir John's assessment that the conference was a success, Mr. Scott said: "The shopping list was long because of the number of items left out.'' Consequently, he said, it was important to get all outstanding contentious issues resolved before Independence because anything short of that would be a formula for civil unrest.

Mr. Scott said a recent Royal Gazette poll that demonstrated that most Bermudians were not in favour of Independence was not really a blow to the idea. Instead he said it was a way that those polled showed their disgust with the way it was handled.

Moreover, Mr. Scott said that Government's intent to continue using substantially the same institutions after Independence was the most glaring example of their status quo thinking.

Another example was electoral reform, in which Government had already set the boundaries of discussion.

He said the PLP was in favour of going beyond the parish boundaries just as the Post Office had done when it drew out its postal zones.

Mr. Scott said Government's "compendium'' was really nothing more than a "bunch of papers''.

Human Affairs Minister the Hon. Jerome Dill (UBP) launched a direct attack on the PLP.

"It is interesting that the most compelling argument against (the Government's) position papers is that the word compendium should be changed to bunch or group. That's as good as it got for the Opposition over the entire two days of the debate.

"Am I on Candid Camera? Is the Opposition serious? Is that a serious criticism of this the most weighty of subjects?'' Mr. Dill said he never thought he would have seen the day when the Opposition could have misjudged the intelligence of the Bermudian people.

"We are poised on the brink of the most historic moment,'' he added. "This is the first time in the history of the Independence debate that the subject of Independence will get a full and fair hearing.

"Never before have we said we will deal logically if we can, dispassionately, if we can and emotionally if we can.'' Mr. Dill said the discussion of the principle of self-determination is important especially if it is brought to its natural conclusion which would be for Bermudians to make an informed choice on Independence.

"On August 16 we will either embark on a course that will take us to Independence or we will not.'' Mr. Dill said it was a "fatuous, nonsensical, argument'' for the PLP to say its members should abstain from the August 15 referendum but they did not issue this charge at the 1990 Capital Punishment referendum when the principle was the same.

Independence debate He questioned whether there was any logical reason why the Opposition was saying that people should not come out to vote "at all''.

"It is simply plain politics. Suppose they don't agree with either position, but how can you not agree with either yes or no, or silence.'' Mr. Dill also asked why some Bermudians felt that becoming Independent would cost millions of dollars more than Barbadoes or Bahamas.

"Why would a country smaller than Bahamas and Barbados, with a smaller population, have to pay more to be Independent?'' He also said that it was time for the Country to move ahead and it was not long ago that the leader of the Opposition "with his tongue planted firmly in his cheek'', opposed having a Bermudian, Sir James Astwood, appointed to the highest position of the judicial court.'' The report on the debate will be concluded in Monday's newspaper.