The Crown Prince of Yugoslavia weighed in this week on Bermuda's Independence debate, telling the Island to be cautious.

Prince Alexander, the son of the late King Peter II who fled Yugoslavia during the Second World War, is in Bermuda this week visiting former Premier the Hon.

Sir David Gibbons.

While speaking of his hopes for return of the monarchy, and peace, to former Yugoslavia, he also gave his views on Bermuda's August 15 Independence referendum.

"One must have the utmost caution on August 15,'' he said. "The great success of Bermuda, apart from its beauty, has been its ability to act as probably the greatest offshore financial insurance centre in the world.'' Association with the Crown, even though Britain does not contribute financially to Bermuda, "is a signal to the world business community that London is somewhat of an umbrella''.

"It therefore provides security for investment here in Bermuda.'' Born in London in 1945 -- in a suite at Claridge's Hotel that had been declared Yugoslav territory by the British Government -- Prince Alexander is an international businessman who sits on the board of many companies.

While self-determination was "the most important and wonderful thing for mankind, all the facts must be examined before one takes a venture which could provide loss of revenue, which could jeopardise people's jobs'', he said.

In the Bahamas, unemployment doubled after Independence, the Prince said. He also raised the possibility that the United States would interfere in the affairs of an Independent Bermuda.

Turning to the break-up and warfare in former Yugoslavia, Prince Alexander described the situation as "a disaster.'' The dynasty of Prince Alexander's Karadjordjevic family dates back to 1804, when the wealthy Serbian clan chief and merchant Djordje Petrovic led the Serbs in a revolt that temporarily toppled the Ottomans. His grandson, King Peter I, took the throne in 1903.

During the recent bloody conflicts, "the monarchy has been a sort of beacon of hope for many, even though it may not be accepted in all of former Yugoslavia''.

He and his wife, Princess Katherine, visited Yugoslavia in 1991 and 1992 and were warmly received, drawing a crowd of 300,000 in Belgrade, he said.

Prince Alexander said the monarchy could return to parts of former Yugoslavia, but "how do you attain it? The leaders are not really in favour of the monarchy, because they perceive it as a threat.'' In fact, it was "a vehicle toward democracy,'' he said, drawing parallels with King Juan Carlos in Spain.

While not all parts of former Yugoslavia would accept it, "the monarchy would be warmly accepted within Serbia and Montenegro,'' and possibly elsewhere, he said.

"I would hope that the leaders in Belgrade would have enough sense to move this option forward.'' Prince Alexander