tough new pollution controls -- including equipping cars with catalytic converters. ---- Page 3 HOTEL UNDER INVESTIGATION HOA TOU Hotel under investigation Government is investigating a Paget hotel after allegations that a prospective employee was advised against admitting that he would be working there. ---- Page 4 CLUBS THREATEN LEGAL ACTION SEN EAT Clubs threaten legal action Nightclub owners and members' clubs could mount a legal challenge to Government proposals to allow restaurants and bars to compete on their 3 a.m.

closing time. ---- Page 5 LEWIN STUNNED AT WORLDS SLG Lewin stunned at Worlds Bermuda's top female sailor Paula Lewin bowed out of the inaugural ISAF World Sailing Championships when she was upset by the bottom seed yesterday. ---- Sport, Page 13 BLADES CUTS TIES TO ISLAND CRI Blades cuts ties to Island Bermuda's national cricket team and Police were struck a blow this week with news that one of Bermuda's fastest bowlers and most adventurous bowlers as Roger Blades heads back to Barbados. ---- Sport, Page 13 OIL'S NET EARNINGS TAKE A DIVE BUC OIL's net earnings take a dive Bermuda-based oil mutual, Oil Insurance Ltd. (OIL) reported net earnings of $165 million for the year to December 31, down from $238 million in 1996. ---- Business, Page 17 NEW BERMUDA REINSURER FORMED BUC New Bermuda reinsurer formed Bermuda-based ACE Ltd. and Capital Re Corp. have linked to launch a new Bermuda reinsurer, A.C.E. Capital Re Ltd., specialising in financial risks.

---- Business, Page 17 INFLATION RATE CLIMBS SLIGHTLY GVT Inflation rate climbs slightly The start of 1998 saw the annual rate of inflation inch higher, as the Consumer Price Index rose to two percent for the 12 months to January, up from 1.9 percent for the same period to December. ----Business, Page 19