to Bank of Bermuda president Charles Vaughan-Johnston.

But industry professionals have to spend more time onshore, telling people about the Island's success story, business development and business opportunities, he said.

The international banker, the first ever non-Bermudian to head the bank, will turn over the reins of Bermuda's largest bank to Bermudian Henry Smith in January, 1998. Mr. Vaughan-Johnston succeeded Donald Lines as president in April, 1994.

Mr. Vaughan-Johnston said: "Bermuda is still as good as it ever was, if not better. If you look at the choices of offshore jurisdictions around the world, Bermuda stands head and shoulders above the rest.

"It has a fantastic location right on the transatlantic trade route and is close to major cities on the East Coast. I'm totally optimistic about the long term future of Bermuda.'' He also believes Bermuda has a huge competitive advantage because of the substantial nature of the Island's indigenous international banks.

Mr. Vaughan-Johnston said: "We have a highly valued indigenous banking system that needs to be nurtured and preserved. This is one of the areas where we are separated from other offshore players.'' With a steady growth in financial services as international business expands, he sees an increasing need for more, and larger, office space.

He said cautiously: "One senses there is a demand out there for additional office space, because of the expansion of international business and one knows that there are some things going ahead.

"But it is a little surprising that we haven't seen some of the other commercial projects going ahead. It's always a difficult thing to call, because these things have a habit of turning around and changing.

"They are probably controlled more by outside forces. We tend to always believe there is a Bermudian or local explanation for why some things happen or don't happen here. Just like our weather can be affected by storms that are a thousand miles away, our economy within is generally influenced significantly by forces from without.'' Mr. Vaughan-Johnston believes that technological advances are creating more opportunities for job creation. He said the Bank of Bermuda has been handling new levels of technology with more re-training.

"I don't see any decline in the numbers of people, except for natural attrition. We have re-trained people as we have improved technology. But the new technology provides more opportunities for young Bermudians.

"The entire financial services sector represents an extraordinary opportunity for students, who can use computers not just for the fun aspects, but also to make a living. We are spending time in the schools, trying to develop some more interest.'' He is keeping his options open about his future once he leaves his post in less than 18 months. He admits to no rigid plans.

"The prime objective was to identify a Bermudian from within the bank, an executive who could take over from me. That's what we have been able to do.'' In early 1998, when Mr. Charles Vaughan-Johnston steps down, he will have been president of the Bank of Bermuda for about four years.

Key moves for the bank in the intervening period involve developing the private banking, trust and investment management services.

"It's very much going to be a broadening of existing services. We are in four distinct lines of business. Corporate Trust, private trust, banking and investment services.

"We have plans to develop them all, but if we were to look at a particular emphasis over the next year and a half, it would be on developing the private banking services -- private banking and trusts and investment services.

"They are all part of the same thing. We will be essentially expanding the services worldwide for private clients.''