Bermuda's new US Consul General will move into the luxury home of former Governor Sir Edwin Leather, The Royal Gazette can reveal.

Larry Owen -- who arrived on the Island yesterday -- will spend his first few weeks in Bermuda in Paget's Chelston, the mansion used by his predecessors since the 1960s.

But he is set to move about half a mile up South Road to Mangrove View, in Mangrove Drive, Paget, only weeks later.

Mangrove View offers 5,000 to 6,000 square feet of space, compared to the 12,000 square feet of Chelston, sold to a US businessman for a figure close to the $15 million price-tag.

And it has only three acres of grounds, compared to Chelston's massive 14 acres, including a private stretch of beach at Grape Bay and a beach house.

Acting US Consul General Douglas Dobson said: "We are moving in that direction -- but we don't have a signed lease yet.'' But he added: "I'm just waiting for a telegram to authorise signing the lease.'' Mr. Dobson said: "We're getting close to closing out the sale of Chelston, so we expect to turn it over before the end of October, lock, stock and barrel.'' Mr. Owen -- a political appointment -- is likely to spend his entire tour of duty in Bermuda in Mangrove View. His appointment will lapse when US president Bill Clinton steps down in January, 2001.

But Mr. Dobson said: "We will be leasing Mangrove View rather than buying.

But this is a short-term solution -- we're still looking for the long-term solution.'' Mr. Owen said the new house is much easier to care for than Chelston which costs around $40,000 to maintain and which was axed in a cost-cutting exercise by the US Government.

Among Mr. Owen's first duties will be representing his country at next month's Royal visit by the Princess Royal, Princess Anne.

The Michigan businessman's wife, Faylene, said: "It will definitely be my first curtsy to royalty.'' She added she expected to be doing a lot of entertaining while in Bermuda -- including the annual American independence garden party on July 4, an institution among US citizens on the Island.

Mr. Owen, 54, like his predecessor Robert Farmer, was a major fundraiser in his home state for the Clinton presidential campaign.

Former Michigan governor and US Ambassador to Canada James Blanchard, a longtime friend of the Owens, said: "He will be surprised at how much weight representatives of the president have around the world. It's more than tourism and scenery.'' And former Michigan state treasurer Robert Bowman, who worked with Mr. Owen during Mr. Blanchard's 1983-90 term as governor, said Mr. Owen was the right man for the job.

He added: "He doesn't bring wide-eyed innocence, but he brings cagey-eyed experience, which is better.

"When you get to be our age, you're looking for something where you're still learning. This will be something like that for the Owens.'' Mr. Owen is a former partner in Michigan's biggest and oldest law firm. He made his money in investments, real estate and entertainment, including a nightclub in Chicago.

He was a Democratic contender for the gubernatorial nomination in Michigan in 1998, but was unsuccessful.