first time Bermuda has jumped to the financial aid of the United States.

But the donation should not be seen as an attempt to strengthen the Island's leverage as it urged the Americans to keep the US Naval Air Station open, the Premier said yesterday.

"This was done on an entirely benevolent basis, recognising that the Americans have from time to time assisted us in addressing some of the problems that we've been faced with,'' the Hon. Sir John Swan said.

"Regardless of how prosperous the US is ... there are financial problems in America that make them unable to address this catastrophe.'' The donation was not made "on a trade-off basis,'' and "I have not looked at it from a diplomatic aspect,'' Sir John said. "America's been good to us in the past.

"If perchance they should be good to us in the future, then we're good partners.'' St. Louis, Missouri is at the centre of flooding that has lasted a month, contributed to 45 deaths, and caused $10 billion in damage.

Government's donation was to get the ball rolling for private and corporate donations from Bermuda.

Sir John said he was unaware of Bermuda coming to the financial aid of America before. However, "this is not unusual,'' he said. "It's been done before for other areas, particularly in the Caribbean and in the Falklands. It's the first time we've done it for the States.'' As one example, Bermuda gave more than $200,000 in aid to Montserrat after Hurricane Hugo in 1989.

However, Opposition Leader Mr. Frederick Wade criticised the gift.

After a recent tornado in Somerset, there were people "still in need of funds,'' he said. "I don't know what Government's done about that -- nothing at all, in fact.'' Sir John said repairs in Somerset were made quickly, and homeowners were covered by insurance.

Outside Bermuda, Government had matched the amounts raised in fundraising drives before, but "very rarely, if ever, has Government given funds on its own initiative,'' Mr. Wade said.

The Progressive Labour Party leader said he had "a great deal of sympathy'' for the American flood victims, but "would have expected an initiative from the private sector first.''