Premier Jennifer Smith fears hostilities with Iraq could lead to further terrorist attacks.

But she said Bermuda was prepared for any emergency.

Last night the Premier released a statement following a meeting of her cabinet.

She said: "Bermuda - like the majority of the world - wants peace.

"We in the Bermuda Government, while not focussing on the war in Iraq, which is a matter of foreign affairs, are concerned that any war in Iraq not lead to increased instability as a result of further terrorist attacks."

Ms Smith added: "We pray that there will not be mass destruction of children and women and we pray that the hostilities will be short-lived.

"Returning us - and the rest of the world - to a state of normalcy as soon as possible.

"Bermuda is a small island standing alone in the Atlantic and I can assure the Bermudian public that we are prepared for any contingency.

"We have observed as the issue of the disarmament of Iraq has both engaged and then divided the UN Security Council.

"World order has to be the precursor to world peace."

She said she hoped the United Nations could achieve peace soon and said it would be a tragedy if the UN fell apart because of splits over the US/Iraq conflict.

Deputy Governor Tim Gurney said there was no specific alert at the moment to Bermudians at home or abroad.

He said: "It's something under pretty well constant review but there is no advice at the moment.

"There is no reason to think there is a need for a heightened status alert."

Tina Christopher, a teacher at the Adult Education School in Hamilton, rang The Royal Gazette to say: "How are we as a country prepared for war as a family, a community and a country?

"We need a Government statement in regard to that.

"What has been put in place for our safety? Basically our well-being is on the line.

"Is the environment going to be affected or the rain or the weather by chemical warfare?

"We are just not sure where we stand."

Her General Education Diploma student Nea Winters, 30, said: "We are concerned about warfare and where we stand as a people.

"No one is talking to say whether we are in danger or not. I feel in danger.

"It is serious, regardless whether it's way down in the Middle East. It affects imports, tourism. What about chemical and biological warfare?"

Yesterday American Homeland Security Secretary Tom Ridge said al Qaeda terrorists remained the main threat and intelligence indicated they would probably launch attacks and claim they were defending the Iraqi people if war broke out.

US Consul General Denis Coleman said President Bush, backed by British Prime Minister Tony Blair, had drawn a line in the sand but unfortunately Saddam Hussein had rejected the chance to disarm.

He said: "One always hopes for a last minute conversion."

He said the Island's 3,413 Americans should live their lives as usual, but be alert and cautious. "Bermuda is a low threat post." He said the American Consulate General staff were on hand to give any further advice to worried US citizens. Corporation secretary Roger Sherratt said local ports had been tightened up recently while Americans were now insisting on more information about cargo heading to its shores well before it got there.

And he said Bermuda's ports were now working to improved international standards.

Everyone using the ports has to get new passes which specify where on the docks pass holders are can be. Instead of lasting a life time the new $40 photo-IDs must be renewed every five years. Applicants consent to have their details checked by Police who decide whether to accept or reject them.

Reasons for rejection include drug or theft convictions. Mr. Sherratt said the Island's other dock locations were also updating their pass systems.

Stephen Paynter, traffic controller at Meyer, said there was no immediate problem on the import front. He said: "At this moment in time we have not been put on any particular alert.

"In terms of import capability and cargo I would say it's pretty much status quo at the moment.

"In the worst case scenario perhaps it would slow down the processing of cargo if it had to be double checked."

But he said as shipments came weekly it would mean that stuff which missed the boat could just come seven days later.

He said the war against the Taliban in Afghanistan didn't affect anything. Container Shipping Management would not comment until president Geoffrey Frith and vice president Robert Lewis return to the Island.