He actually departed last month but made his resignation official yesterday in an emotional letter to the people of Bermuda.

It is expected that his replacement, tipped to be Michigan lawyer Larry Owen, will take up the $110,000 a year position within the next few months.

Mr. Farmer spent four and a half years in Bermuda and bid his farewells to staff several weeks before actually leaving.

Yesterday, acting US Consul General Bruce Berton confirmed that Mr. Farmer had left the Island and his retirement was officially effective from this coming Monday. He said he expected a replacement, a political appointee, to be on the Island by the summer and said the procedure would not take longer than six months.

"There have been rumours about Larry Owen, but nothing has been confirmed,'' he said.

In an open letter to the people of Bermuda, Mr. Farmer commented on the enormous changes he had seen over the years, not least the closure of the US Naval base and handing over of the Airport.

"Since then we have seen the passing of the leadership torch to David Saul, Pam Gordon and Governor Thorold Masefield, but now to Jennifer Smith and her new PLP Government,'' he said.

Mr. Farmer said the Bermudian people had made him feel welcome and he thanked Governments past and present for their kindness.

And he paid tribute to former Governor Lord Waddington and current Governor Thorold Masefield for their assistance.

"To the people of Bermuda and the many friends, I thank you for your hospitality and your kind spirit. In an increasingly interdependent world, Bermuda society stands out, educated and sophisticated, yet friendly and generous to a fault -- a shining example of a bi-racial society that works.

Never before have I felt so at home. Never again will I meet Bermuda's equal.'' Mr. Farmer made reference to the sale of Chelston, the US official residence since 1964, in his farewell.

Although a sale has not been finalised, it is understood Mr. Farmer did not want to have to move again before heading back to the United States. His possible replacement, Mr. Owen, has confirmed he is under consideration for the post and said he expected President Bill Clinton to make the final decision within the near future.

Mr. Owen, a lawyer and businessman, has been a fundraiser for the Democratic Party and twice fought for the seat of Governor for the state of Michigan. Mr.

Berton will remain acting Consul General until the position is filled. He said it was not known whether the new posting would be living in Chelston or a new home.

Chelston is currently for sale for $15 million and a search is ongoing for a smaller, replacement official residence.

Mr. Berton said there had been interest in the estate but nothing had come to fruition yet.

He said the 10,700 square feet residence was due to be advertised in the Wall Street Journal and bi-annual Christies Great Estates magazines by agents Sinclair Realty.