business newspaper The Financial Times.

The FT, in its annual survey on Bermuda published on Friday, said that the Island's tourism survey would be especially hard hit, but that the international insurance and finance sectors would not escape unscathed.

"Although the insurance and reinsurance industries tend to fare relatively well in economic downturns, a substantial slowdown in the US economy would certainly not leave Bermuda's thriving financial community unscathed,'' it said.

The 12-page supplement said the Island's insurers were well placed to benefit from a hardening market, but expansion through acquisition of some of the larger insurers could mean they may suffer from a downturn in the US.

But it goes on to say that any significant US economic reverse could have a much more serious impact on "Bermuda's already embattled tourism trade.'' The FT survey also tackled the perceived black/white social divide head on -- and on the front page of the supplement.

"Black Bermudians, who make up 60 percent of the population, have long felt that they were being left out of the economy, and that most of the benefits of the island's economic success were being consumed by whites,'' the survey said.

It said the Island is preoccupied with the debate over relevant employment issues and the granting of work permits for, usually white, expatriates, but there is a more open approach now to issues of race and employment.

Premier Jennifer Smith is quoted as saying: "Bermuda has not yet dealt with the issue of racism. this is a country that in 1968 had legal segregation on the basis of race.'' For a full report on the FT survey, See tomorrow's Royal Gazette .

BUSINESS BUC