international disputes, the House of Assembly was told on Friday.

Delegated Affairs Minister the Hon. Sir John Sharpe introduced The Bermuda International Conciliation and Arbitration Act 1993 for its second reading.

Numerous experts have said that with appropriate legislation based on a United Nations model, "Bermuda would be a natural, maybe the natural world centre for arbitration,'' Sir John said.

Government strongly supported such a development, he said.

The Island's geographical location, good meeting facilities, and position as a neutral country between the United States and Europe together meant it was "well-placed to play an honest broker role''.

In 1991 the London Court of International Arbitration said it felt Bermuda was a natural location, but there were concerns about the Island's arbitration legislation and restrictions on foreign arbitrators and lawyers coming to Bermuda.

A conference was later held on the Island to support the concept of Bermuda as an international arbitration centre.

Changes were needed that would remove restrictions on foreign lawyers and arbitrators and allow arbitrators to appear without permission and restrictions. To assure privacy, international companies wanted arbitration matters handled privately by experts, and not by Bermuda judges in public.

"Our new legislation does just that,'' Sir John said.

Government would waive the work permit policy related to the Bermuda Immigration Protection Act 1956 for "anyone coming in to take part in international arbitration''. The Immigration Minister will also deal with any visa requirement "with special expedition''.

The Bermuda Bar Council supported that move and did not ask for any requirement that Bermuda lawyers be retained for international arbitration in Bermuda.

There would be spin-offs for hotels and other services, "and I suspect for the Bar as well,'' he said.

Arbitration activities would also heighten Bermuda's image as a centre for international businesses.

The Island's first arbitration act was passed in 1924, but Bermuda was a much different place then, and it was intended for resolving local disputes, Sir John said.

The North American Arbitration Association also supported the legislation, he said.

Opposition Leader Mr. Frederick Wade said his party supported the law. "Even though our detractors do not give us credit for being in support of international business, our very first platform included a plank which spoke of the development of international business in Bermuda,'' Mr. Wade said.

The arbitration business was a good one for Bermuda because it did not place heavy demands on the Island's infrastructure. It also enhanced the visitor industry through use of hotels, restaurants, and other services.

Even without any requirement, Mr. Wade was sure Bermuda lawyers would be retained.

The Progressive Labour Party deserves "a great deal of credit'' for the reputation for political stability that makes Bermuda an attractive site for international business and arbitration, he said.

And it had to be recognised a change in Government would not create instability. "It does not assist us internationally to say that we have so unstable a democracy that the major parties are not able to run the country.'' The law is well-researched, he said. "We have to swallow hard on the part that allows non-Bermudian lawyers to come in and work, but we recognise that that is the basis of the whole thing.'' Mr. Gilbert Darrell , leader of the National Liberal Party, said he did not understand how Bermuda could pursue international conciliation and arbitration on the Island without proper court facilities.

And conciliation and arbitration, rather than the courts, should be used to resolve more local disputes, he said.

Mr. Darrell also complained that legislation on such a technical matter should have been produced by a special committee of the House.

The Hon. John Stubbs (UBP) said Mr. Darrell must not have been listening when Sir John told of the wide consultation on the new law. A special committee would not have had "the wit nor the will to consult so widely,'' he said.

Dr. Stubbs welcomed Mr. Wade's comments on the importance of political stability. If voters "judge the two parties for their comparative competence ...we can be assured of the outcome of the next election,'' he said.

Arbitration and conciliation could be conducted in all kinds of venues, not necessarily courtrooms. "We have more physical facilities than we need.'' However, he agreed the recording of court testimony in Bermuda was "archaic in the extreme,'' and needed to be modernised.

Consideration should also be given to developing a conference centre with technology for instantaneous translation, he said.

Mr. Eugene Blakeney (PLP) said the new law should "generate much-needed foreign earnings''.

He had attended many international conferences, facilities had to be top quality, and immediate translation was often needed, he said.

It would be advantageous to have a central location, like on the vacant land next to City Hall, where such arbitration and other types of meetings could be held.

In response, Sir John said the law was intended to keep disputes out of courtrooms, so "the parties don't in fact wash their dirty linen in public''.

International clauses usually have arbitration clauses, and parties who have agreed to accept arbitration are unlikely to end up in a courtroom, Sir John said. If one party reneges, Bermuda courts are perfectly able to handle enforcement orders, he said.

Bermuda hotels had adequate facilities and the foreign parties would likely bring interpreters with them. Also, "the hotels will be pleased to provide the electronic facilities that may be necessary''.