Schoolchildren and the elderly, residents and visitors, all turned out to witness the elaborate annual rent payment of the Freemason's Lodge 200 for the State House in St. George's.

The Peppercorn Ceremony lost none of its customary pomp and pageantry as it took place under sunny skies yesterday morning.

St. George's Mayor Lois Perinchief paid tribute to the work done by the St.

George's Foundation and in particular their efforts to establish the old town as a World Heritage spot.

Governor Thorold Masefield echoed the sentiment, adding: "It was only two days ago that the British government said it would put forward to UNESCO the names of two towns, for the World Heritage designation, and Bermuda is one of the two.'' The Governor noted his involvement as chairman of the Foundation and revealed that plans are to raise funds internationally as well as locally.

This year, like last, featured a number of inaugural appearances at the annual ceremony. Michael Smith is the first black president of the lodge and thus it was the first time the rent was paid by a black man.

It was the first Peppercorn Ceremony the Progressive Labour Party attended as the Government.

Ms Perinchief noted her delight with the new Premier.

"The new Premier, Jennifer Smith, hails from this town and we St. Georgians are proud of this accomplishment.'' The Mayor also made mention of her regret at the loss, last year, of senior councillor in the Corporation of St. George's Leon (Jimmy) Williams. She praised the Towne Crier, E. Michael Jones, for his work and for almost making a clean sweep of first place awards at a competition of Towne Criers in Lyme Regis, England last year. He only placed second in one category.

Thanks were also extended to the Garden Club of Bermuda for transforming a plot of land in the town centre into a public garden and to the National Trust for instituting the Heritage Museum on Water Street.

Mrs. Perinchief pointed out that St. George's is making its mark on the Bermuda map.

"St. George's is different,'' she said. "Is it not this difference that makes it appealing to visitors and one of the places they decide they have to visit when they come here?''