the incoming Clinton Administration.

Lawyer-lobbyist Mr. Kenneth S. Levine yesterday said Governor Bill Clinton's plan to raise taxes and cut military spending could jeopardise two of the Island's economic mainstays: the US Base and the offshore insurance industry.

But Mr. Levine, who has been Government's paid representative in Washington for nearly four years, said it was premature to say how Clinton policies would affect the Island.

"It's a little early to see what the threats are,'' he said.

"What Mr. Clinton is concentrating on now is finding the people to be in his administration. It is the people in his Cabinet and in the White House who will help him develop and refine his agenda.

"Right now, it's hard to tell things because they haven't been appointed yet.'' Mr. Levine said Bermuda was well-positioned to defend its interests in Washington, primarily because of its historic relationship with the United States.

But he also stressed the importance of Premier the Hon. Sir John Swan. "What makes the job of representing Bermuda relatively easy is the Premier. He has extensive contacts with Republicans and Democrats in Congress and in the administration.

"He has been able to get the attention of key people... His role is an important one for the Country.

"Things might not be easy for Bermuda if it had someone with less skill and talent in that position. People might not be as supportive of Bermuda as they currently are.'' Governor Clinton won the November election with a campaign that promised additional spending, cuts in existing programmes and increased taxes.

"I think the challenge for Bermuda with the new administration will be economic if you look at it from the US standpoint,'' Mr. Levine said.

The new president "will be looking at cutting back on certain kinds of spending and looking to raise taxes''.

"We don't know what's to be cut and what taxes are to be raised, but I think there will be a lot of attention given to the (military) bases of Bermuda,'' he said.

Budget cut pressures on the US Naval Air Station have been building for months. They are expected to mushroom tomorrow night when ABC's Prime Time portrays the base as the US Navy's Club Med.

But Mr. Levine intimated he was more concerned by a resumption of pressure to increase the federal excise tax -- a move that could make Bermuda less attractive to US companies placing insurance business here.

"It has been considered three to four times in the past ten years,'' he said.

"I would guess at a minimum that it would be looked at again.'' Mr. Levine was optimistic with reports that Senator Lloyd Bentsen had been tipped to become Secretary of the Treasury.

"Senator Bentsen has been opposed in the past (to increasing the excise tax),'' he said. "I hope he would continue to hold that position.'' Mr. Levine, a self-described Democrat, has been in Washington, DC since the mid-1970s. He has worked in Congress and the Department of Health, Education and Welfare. He was a political appointee of President Jimmy Carter. And he can count key friendships in the new Administration.

He went to school with Mr. Samuel Burger, who is in charge of the transition at the State Department, which is responsible for foreign relations.

He has known Sen. Al Gore, Mr. Clinton's vice-president, since 1976, and traveled with him internationally."I consider him a friend,'' he said.

Premier Swan spoke last week to Sen. Gore, Mr. Levine said. He described their conversation as cordial.

Mr. Clinton is not expected to meet with foreign leaders until after he is sworn in in January.

"Given the importance of the US-Bermuda relationship, I'd expect he'll meet with Sir John,'' Mr. Levine said.

Mr. Levine, 44, has been to Bermuda about ten times. He said his job is to act as the Bermuda Government's "eyes and ears'' in Washington, "to try and promote Bermuda in a positive way'', and to work against challenges to its well-being.