Bermuda in the White Paper on the dependent territories.

Bermudians are being offered British passports, without reciprocal rights for British citizens to live or work on the Island.

Britain will also require Bermuda to meet social and financial requirements, including the abolition of both death penalty and judicial corporal punishment and the tougher financial regulations.

However, this is not a straightforward exchange. Foreign Secretary Robin Cook does not seem to be saying that citizenship is contingent on Bermuda fulfilling the requirements.

Instead, the decision to take British citizenship will be up to the individual and those people who do not can retain their British Dependent Territories passports.

Regardless of how many choose British passports, the requirements being laid out by Britain have to be carried out or they will be imposed. If that is not acceptable to the dependent territory, then the inference is clear: The dependent territory would have to consider Independence, which could result in loss of British passports.

For example, the White Paper makes it clear that the UK wants Bermuda to abolish capital punishment and says it hopes the Bermuda Legislature will do so. If not, then the UK will "consider whether to impose abolition by means of an Act of (the UK) Parliament''.

The same conditions apply to Bermuda's financial sector. According to the White Paper, Bermuda is expected to bring its regulatory structure and standards of cooperation with overseas regulators and law enforcers from overseas up to international standards by the end of the year.

Independent regulators and requirements that all overseas territories operate on a level playing field will also be required.

Bermuda claims it already meets international standards in most areas -- at least as far as the standards, which give the appearance of changing from one international meeting to the next, are defined. Nor is it clear whether Bermuda's tax structure meets "international norms'' on the prevention of tax evasion and tax avoidance. The White Paper is vague on this point as well, except to say that it will ensure that the territories' interests are taken into account.

In the end, Britain says it is compelled to ensure that the territories meet the standards which it has agreed to.

That is understandable, but it will take time to decide if the UK's agreements are also in Bermuda's best interests.

In practical terms, Bermuda has benefited from having a clean reputation in the past and there would be little benefit in being designated a pariah state, not just by Britain, but by the European Union, the Organisation for Economic Cooperation and Development and by the Group of Seven industrialised nations.

Refusal to meet whatever standards the UK is requiring could lead to just that.

The offer of citizenship offers tremendous opportunities to Bermudians.

Balancing those opportunities against the costs and benefits to the Bermuda economy and what would suit Bermudian moral standards will take time. The best thing Bermuda can do now is to ensure that Britain's requirements are spelled out and that a full debate, involving the whole Island, takes place.