By Danny Sinopoli Despite the withdrawal of US military forces later this year, Bermuda commands a special place in the hearts of the American people and particularly their current President, the US ambassador to Canada said yesterday.

"Bill Clinton has a great affection for Bermuda,'' Mr. Jim Blanchard, a former governor of Michigan and long-time Clinton ally, told Hamilton Rotarians at the Princess Hotel.

"Indeed, he and Hillary spent their second honeymoon here in 1979, and it's very interesting that nine months later their only daughter Chelsea was born.

"So,'' the ambassador continued with a laugh, "Bermuda has a great legacy in the White House as well as a friend.'' One indication of the esteem in which the US holds the Island, Mr. Blanchard said, is the special way in which the American emissary to Bermuda has traditionally been appointed.

The United States' envoy to Ottawa for the past two years, he also said that Mr. Clinton's fondness for Bermuda was reflected in his choice of the present Consul General.

"You are very lucky to have Bob Farmer in Bermuda,'' Mr. Blanchard told the audience. "He is one of only two Consul Generals in the world to be appointed directly by the President, and he too has a great affection for the Island.'' On relations between the United States and Canada -- the two largest sources of visitors to Bermuda -- Mr. Blanchard said that the people of both countries generally value the alliance they have established in terms of trade, defence and the environment but that Americans in particular could learn more about Canada.

Two of the first things that Mr. Blanchard did when he was made the ambassador to Ottawa was take a fact-finding train trip from one end of Canada to another and pay a personal visit to every member of the US Cabinet to gauge their knowledge of the country.

"I must say that some of them (the Cabinet members) could hardly find Canada on the map,'' the US ambassador said. "Canadians are very sensitive to that, because it is true that Canadians know more about the United States than Americans know about Canada.

"Then again, many Canadians think that the US is Florida or Hollywood. We both take each other granted.'' Despite the generally good relations, however, individual exchanges between US presidents and Canadian prime ministers haven't always been harmonious, Mr.

Blanchard said, citing the well-documented acrimony that existed between John F. Kennedy and John Diefenbaker, Lyndon B. Johnson and Lester Pearson and Richard M. Nixon and Pierre Trudeau.

On the relationship between Mr. Clinton, who recently paid a visit to Ottawa, and current Canadian Prime Minister Jean Chretien, Mr. Blanchard was much more upbeat.

"The relationship between the President and the Prime Minister couldn't be better,'' the US ambassador said, "whether it be in terms of co-operating in Haiti, ironing out the details of the North American Free Trade Agreement or participation in the recent summit of the Americas in Miami. At that meeting, a resolution was signed by the 33 nations who attended to move toward a free trade zone for the entire Western Hemisphere.'' On the contentious issue of the independence-seeking province of Quebec, meanwhile, Mr. Blanchard reiterated the long-standing US policy of being committed to a "strong and united'' Canada.

And on the presidential elections that are scheduled to take place in the United States next year, the ambassador said that the recent Republican victories in that country may actually work to the advantage of the Bermuda-loving Mr. Clinton.

"Now that the Democrats have lost control of the Congress, the reality is that the President's chances for re-election have greatly improved. All he has to do is sign the legislation he likes, veto the laws he doesn't and not be accountable for the actions of Congress. He really has a free hand.'' Mr. Blanchard, who is on a private visit to Bermuda, is a guest of Mr.

Farmer's at Chelston, the official Island residence of the US Consul General.

He and his wife are to leave the Island on Thursday.

Mr. Jim Blanchard