Government position papers to be tabled in the House of Assembly will favour a Volkswagen approach to Independence, not a Cadillac, sources say.

And the United Bermuda Party will also promise citizenship for certain long-term residents if Bermudians vote in favour of Independence in a referendum expected this summer.

The UBP caucus met again in special session yesterday afternoon as MPs hustled to have the position papers ready to be tabled in the House of Assembly on Friday.

Yesterday's meeting followed special meetings on Friday and Saturday. Premier the Hon. Sir John Swan has promised a date for the referendum once the position papers are ready.

While a majority of caucus wants to get on with the referendum, some MPs complain privately that Cabinet had more than three months to work on the position papers since the Green Paper was tabled on February 3. But caucus, which first received the draft documents on Thursday, was expected to turn them around in a week.

Government's recent Green Paper on Independence spelled out four different Independence options, with costs ranging from $800,000 to $2.3 million.

Sources told The Royal Gazette that Government's position papers would favour the least costly approach.

Under the scheme favoured by Government, Bermuda would not apply for full membership in the United Nations or the Commonwealth Secretariat but would join only certain specialised agencies of the UN.

And Bermuda would have no overseas missions, relying instead on conducting business with foreign missions in Bermuda, correspondence, and ministerial visits.

As set out in the Green Paper, estimated costs would include about $473,000 to set up a Ministry of External Affairs in Bermuda and $325,000 to join UN agencies including the International Maritime Organisation, World Health Organisation, Food and Agriculture Organisation, International Civil Aviation Organisation, UNESCO, the International Labour Organisation, the International Telecommunications Union, the World Meteorological Organisation, and the Universal Postal Union.

Another Government position paper is expected to promise citizenship to some of Bermuda's long-term residents -- such as long-time Portuguese residents who have been fighting for status or permanent residence and have lived on the Island for more than 10 years.

Bermudians by either grant or status would be eligible for citizenship automatically, and dual citizenship would be permitted.

Government backbencher Mr. Trevor Moniz would neither confirm nor deny that citizenship for certain long-term residents was being offered. But he did say: "If we were to make any promises to anyone as to what we would do in the event of a `yes' vote to Independence, we would have to justify to people why we don't do that anyway.'' To a large extent, the position papers tabled on Friday are expected to reflect positions taken by Government in the 1979 White Paper on Independence tabled by former Premier the Hon. Sir David Gibbons.

Bermuda would remain in the Commonwealth with the Queen as head of state, represented in Bermuda by a Governor-General.

Composition of the House of Assembly would remain unchanged, while the 11-member Senate would be appointed by the Governor-General: five upon the advice of the Prime Minister, three upon the advice of the Opposition Leader, and three after consultation with both.

Appeals to the Privy Council in London as the final court of appeal would continue.

A Police Service Commission would be set up in addition to a Public Service Commission to consult with the Governor-General on appointment of senior officers.

And a Judicial and Legal Service Commission, composed of the Chief Justice, other judges, the chairman of the PSC, and two members appointed by the Governor-General, would make judicial appointments.