The Premier's proposed solutions to the Island's crime problem would turn Bermuda into "a banana republic'', Opposition Leader Mr. Frederick Wade said yesterday.

But Premier the Hon. Sir John Swan said "we're heading that way now as it is...if law and order is allowed to break down''.

Th exchange was sparked by the Premier's comments on ZBM Television on Monday night that Bermuda might have to do away with the presumption of innocence in order to curb crime.

He elaborated on those remarks yesterday in an interview with The Royal Gazette , and said he was speaking particularly about drug offences.

"We presume everyone is innocent until proven guilty and we dump everyone back on the street again until their case comes up,'' Sir John said.

Many drug dealers then go right back into business and raise enough money selling narcotics to pay for their defence lawyers, he said.

"We might have to find out that the presumption would be guilt, and that you've got to prove your innocence.'' Accused dealers could then be kept in custody while awaiting trial, though steps would have to be taken to assure a speedy trial, he said.

Mr. Wade said he found it "incredible'' that Sir John would suggest doing away with the presumption of innocence.

The Progressive Labour Party was as concerned as anyone about rising crime in Bermuda, he said. "However we don't think that in order to solve the crime problem we have to create a Police state in the process.'' Sir John's comments "demonstrate a desperation which is frightening'', Mr.

Wade said. "We would certainly create a Police state and a Country where anarchy would prevail.'' "The Premier must know full well that no modern society could get rid of the presumption of innocence, especially in Bermuda with its international business community looking for a safe and sane legal system.'' Already concerned about the possible loss of the Privy Council with Independence, international business must be "alarmed'' at talk of abolishing presumption of innocence, he said.

But Sir John said Mr. Wade was not suggesting viable alternatives. "We've got an epidemic on our hands,'' and must not "stay in a state of denial'', he said.

"I'm saying to the Country that we have a problem, and let's look at the possible solutions.'' If Bermuda did not act, "we might not end up a banana republic, but we'd very quickly become a Third World country'', once tourism and international business dried up.

On returning to the birch, Sir John said many people felt violence begets violence, but "I know of people from my generation who were flogged from time to time and didn't become violent. My father used the stick on me from time to time''.

The birch could be appropriate criminal punishment "as long as it's used judiciously''.

Asked if he would amend the Bermuda Constitution Order 1968, which states: "Every person who is charged with a criminal offence shall be presumed to be innocent until he is proved or has pleaded guilty,'' Sir John said his comments were "something to put out there. I'm not saying we're going to rush out and do it''.

Mr. Wade said he hoped "right-thinking Bermudians will condemn the Premier for even thinking these things''.

While the PLP supported Government's new rewards scheme and was willing to study stiffer sentences proposed for gun offences, it felt a Royal Commission was needed to get at the root causes of crime.

Short-term measures might catch more criminals, but more important was "stopping the factory which produces criminals'', he said.

Government backbencher the Hon. Ann Cartwright DeCouto said the Premier's proposal would "certainly be a radical departure from criminal jurisprudence.

"I just don't understand how it would work,'' she said.