yesterday that, like others in the international business community, he was surprised at being chosen to take over from Mr. Donald Lines.

"It's fair to say that one might have considered that, in view of the history of the Bank, it was unlikely the Board would choose a non-Bermudian,'' said the Englishman. "I was surprised to be chosen.'' Mr. Vaughan-Johnson, who will be 59 next month, would not say when he first became aware that he had been chosen to replace Mr. Lines, who retires as president on April 3, 1994.

"It's very much an internal decision involving the Board and the executive of the Bank,'' he said. "I cannot comment on it.'' But he added: "This decision evolved over a period of time. There was no single point at which it was taken. It's been something that's been under general speculation for some time.'' He will become the first non-Bermudian president in the Bank's 104-year history.

This was a sign of how the Bank's role had changed and broadened over the years as it expanded overseas, said Mr. Vaughan-Johnson.

"Surprise as to my appointment indicates the Bank of Bermuda has changed from being a Bermuda bank with overseas offices to being an international trust bank which happens to have its headquarters in Bermuda,'' he said.

"It tends to underline the fact that Bermuda is a well recognised base for international business, of which the Bank is a significant part.'' Although Mr. Vaughan-Johnson only joined the Bank of Bermuda just over four years ago, his connections with the financial institution stretch back more than 20 years.

"I knew the Bank of Bermuda people when I was working in the Bahamas with a Bank of America affiliate,'' he said.

"I used to come to Bermuda to do business in what was then a very active European bond market.

"I remained very close to the Bank and the people in it and used it for my clients.'' More importantly, he also remained in close contact with Mr. Lines during this time.

"I suppose it was a natural evolution when he was looking for some additional support in the private banking area that we talked about it and I was invited to come and join the Bank,'' said Mr. Vaughan-Johnson.

Mr. Vaughan-Johnson joined the Bank of Bermuda in June, 1988, to head up its private banking activities.

The following year he was promoted to Senior Vice President and General Manager, Private Banking, and became a member of the Executive Management Committee.

He has been in trust banking for 30 years, 25 of which he has spent in international trust banking.

Until he takes over as president, Mr. Vaughan-Johnson said he would work "very closely'' with Mr. Lines "in order to provide a seamless handing over and continuity to all our valuable contacts all over the world''.

Once he takes over, he will remain president for five years until he is 65 -- the automatic retirement age for the Bank's officers.

He would not comment on what changes, if any, he planned to make during his presidency.

GETTING READY -- Mr. Charles Vaughan-Johnson.