that Mr. Donald P. Lines was retiring as head of the Bank of Bermuda.

The surprise was softened by the fact Mr. Lines' retirement will not take effect until April 3, 1994.

General manager of the bank since 1979 and president and chief executive officer since 1989, Mr. Lines is well-known for his frank and repeated calls for fiscal restraint, often made through reports to shareholders.

Finance Minister the Hon. David Saul, who had expected Mr. Lines' retirement announcement, said he and Mr. Lines viewed the Bermudian economy in much the same way.

"I think both of us have a philosophy that minimal Government interference in the economy is in the best interests of everyone -- but that supervision and leadership must come from the Government,'' Dr. Saul told The Royal Gazette .

"There is no question that the vitality, energy, enthusiasm, and indeed knowledge that he has brought to the Bank of Bermuda and to the local economy puts him in the top two or three people who have affected the economy over the past decade or so.

"He will be missed.'' Mr. Malcolm Williams, general manager of the Bermuda Monetary Authority, said: "Donald Lines' contribution to the Bank of Bermuda, and to Bermuda as a whole, is without precedent.

"Through his professionalism and devotion, he has tirelessly built on the solid foundation laid by others before him and raised the bank to what it is today -- a highly-respected organisation, and one able to compete effectively and efficiently on a global basis.'' Sir David Gibbons, chairman and chief executive officer of the Bank of N.T.

Butterfield and Son Ltd., said he was somewhat surprised at the retirement announcement.

"He's just over 60,'' said Sir David. "For someone who is coming up to 66, he's a young man, who I would have thought had a number of very active years ahead of him.

"It's a great loss to the bank,'' said Sir David. "He's certainly presided over the bank in a period of quite remarkable growth.'' Mr. Bobby Rego, first vice-president of the Chamber of Commerce, said Mr.

Lines has had "a very positive influence on local business'' through reduced loan and mortgage rates.

Mr. Rego also cited the Bank of Bermuda's Centennial Fund, launched in 1989, which distributes about $500,000 annually to local charities. "That definitely put the Bank of Bermuda out in front as far as being community-minded,'' he said.

Mr. Lines was chairman of the Professional Services Committee which negotiated the 1985 tax treaty with the US and has been chairman of the Bermuda Water Authority since 1976.

A founding member of the Institute of Chartered Accountants of Bermuda, Mr.

Lines also served as president of the Boy Scouts Association of Bermuda from 1972 to 1986. He was awarded the Order of the British Empire in 1989.

A top accountant in Canada before he returned to Bermuda to join the bank in 1969, Mr. Lines plans to remain a bank director after next year, and spoke cryptically on Monday of launching a "third career''.

"I have some interesting ideas,'' he said, but would not be more specific.

Mr. Lines is often more outspoken. Last year, he claimed more than 1,500 jobs in tourism and related industries had been "destroyed'' by industrial disputes in the past five years. But despite repeated requests from The Royal Gazette , he did not back up the figures.

In 1983, he warned Government was one of the biggest culprits in high wage settlements which "merely inflate GDP without any real increase in productivity''.

Two years later, Mr. Lines said Bermudians had "spent ourselves into prosperity.

"It's a nice feeling, but one which cannot be perpetuated, for the economic storm clouds have already become obvious.'' Late in 1987, Mr. Lines described Premier the Hon.

Sir John Swan's forecast of a bright year ahead as "very optimistic''.

"The machinery has set recession in place worldwide,'' he said.

Mr. Donald Lines.