and Bermuda must heed the warning signs.

The Island could no longer count on tourism and the military bases for survival.

Premier the Hon. Sir John Swan delivered the stark warning last night to a packed meeting at the Cathedral Hall.

About 70 teachers, parents, and students from the Adult Education School were there.

Sir John said one message had been rammed home during his whirlwind trips to America to save the US bases.

"More than anything I have been struck by the Fortress America mentality,'' he said.

"It is going to affect the future. America is closing down and protecting itself.'' America was locked in rows with France over farming, and Japan over the importation of technology.

Sir John, who recently visited military chiefs in Belgium, said Europe had gone the same way.

"I see Fortress Europe,'' he warned. Europe, for instance, was intent on keeping out Japanese cars.

Sir John said Bermuda had to stand on its own two feet in a fast changing world.

"This little Island in the 21st century is going to face formidable challenges.

"We can no longer count on the bases and tourism. We have got to get smart.'' He added: "We understand what we have to do. We must not dilly dally. We have to get focused.'' But Sir John stressed Bermuda was well placed to take on the challenges.

"I have every faith Bermuda is going to be alright. It's going to be OK.

"Why? Because we have not lost our spirit. We are still a community that cares.'' Sir John also underlined how well Bermuda's education system compared with the rest of the world.

This laid the groundwork for success, and he heaped praise on the Bermuda College and the Adult Education School.

Bermuda sent 64 percent of her young people to colleges and universities, said Sir John.

"No country in the world is able to do that.'' Sir John said the figures for Japan and the United States were 15 and 33 percent respectively.

"We have made tremendous progress, and we are a country on the move,'' he added.

He went on: "This country has a unique opportunity. We are ready take on the rest of the world.'' Sir John told how his childhood had given a lifelong appreciation of a good education.

"I consider myself a miracle. I had 30 percent vision in one eye and 50 percent vision in the other.

"I was a dyslexic and had difficulty reading.'' He added he had also developed a desire to improve the community following the death of his sister, aged 15.

It had driven home the need for a good hospital, which Bermuda now had.

Sir John said his private battles had given him an understanding of the struggle some youngsters face today.

"When I see young people sitting on wall I understand what they are going through.

"Pack racing -- there is a lot of talk about pack racing at the moment. I was a pack racer myself.

"It was on a push cycle and I nearly slipped under a garbage truck.'' Sir John had one suggestion for Bermuda's youngsters to better themselves -- watch less television.

People watching TV did not have to think for themselves.

"TV arrives at the conclusion for them,'' Sir John said.

The entertainment pumped out by TV was also questionable, he added.