increase the $25,000 yearly overseas investment allowance even though he removed the ten percent overseas investment tax. Clearly he has begun dismantling currency control and says that further dismantling will take place during the year. What we saw yesterday was the Finance Minister testing the waters.

Clearly Dr. Saul believes that overseas investment will result in a free flow of capital in and out of Bermuda. He said that we will see the day when Bermuda's young people will list "overseas investment'' along with tourism and international business as the way Bermuda earns its living. Whether that will actually happen is the great question mark which hangs over the abolition of currency control.

Basically what Dr. Saul presented is a user friendly Budget, clearly designed to stimulate the economy after the recession. We think it is not the "sweetheart of a Budget'' Dr. Saul said at his Press conference The Royal Gazette's cartoonist, Mr. Peter Woolcock, might depict it as being. What has to be remembered is that the Budget goes easy on people but is clearly predicated on things going well in Bermuda during the coming year.

It was interesting that the Finance Minister seemed to take no notice of the disruptions which may well be caused by a debate on Independence and a referendum. The Budget takes no note that we could detect of the fact that Bermuda is creating its own uncertainties. It is true to say that the relaxation of currency control itself will be part of the uncertainty. The "going easy'' aspects of the Budget are based on the fact that with a lessening of the general recession things should be better. They also assume a better year for tourism and an increase in international company business pumping cash into the economy and thus increasing Government's revenue.

In our view, simplification of Customs duties is overdue and will be welcomed by businesses and the public. It is interesting that Customs duties will be different for returning residents at the Airport than for anyone directly importing goods. Generally, anything which leads to greater efficiency at the Airport is entirely to be welcomed. However, Dr. Saul said that having three rates of duty at the Airport, zero, 22.25 percent and 33.50 percent, the latter largely applicable to electrical goods, would speed up things at the Airport.

We have to wonder if the lack of any duty category between zero and 22.25 percent might not be aimed at curtailing overseas shopping coming back through the Airport. As an example, natural fibre and leather clothing is now 8.5 percent and will become 22.25 percent at the Airport and children's clothing duty will also greatly increase at the Airport. Most men's and women's clothing is now and will be 22.25 percent.

Aside from currency control, the major change announced in this Budget is the nationally supported portable pension scheme. Dr. Saul, who said that overseas investment is Bermudian savings, is concerned about the lack of proper pensions in Bermudian companies and a lack of savings and sees a pension scheme as savings.

The bottom line seems to be that Dr. Saul is preparing Bermuda for security after currency controls. He received very little credit for the Budgets which put Bermuda in good shape to ride out a major recession or for his successful management of the economy in recession. We can only hope that Dr. Saul is correct once again and an absence of currency control will mean a stronger economy.