immigration officers yesterday vowed to continue -- despite a body blow from Government.

Home Affairs Minister the Hon. Irving Pearman on Thursday ruled out a special policy for non-Bermudians who had lived here more than 20 years, claiming it would lead to 950 work permit holders receiving status overnight.

The Island was far too small to accommodate them -- and Government's immigration policies should remain intact, said Mr. Pearman.

Yesterday the new Portuguese-Bermudian Organisation pledged to continue their campaign.

The political pressure group wants a special policy for non-Bermudians resident here a long time.

Mr. John Amaral, the chairman, admitted Mr. Pearman's statement was "a bit disheartening.'' "It's like telling us we don't have a chance. Naturally it dampens the spirits a bit.

"Nevertheless we are determined to continue, and are definitely not going to give up.'' Mr. Amaral was reluctant to comment in detail on Mr. Pearman's comments.

"I would rather not say too much, just yet. I want to study all the figures.'' Mr. Amaral expressed surprise at Mr. Pearman's statement that work permits had decreased from 10,400 in December 1989, to around 5,500 now.

"I find that hard to believe,'' he said.

Mr. Amaral, whose group is compiling its own statistics on the Portuguese community, drew some comfort from lawyer Mr. Trevor Moniz' success in Thursday's Smith's South United Bermuda Party primary.

Mr. Moniz has taken up the cause of long-term Portuguese residents, pressing for a special policy for them.

He announced after the election he would be meeting Mr. Pearman over the issue.

Said Mr. Moniz: "I would like to thank the minister for the way he is using his discretion in dealing with individual applications for status.'' Mr. Amaral said Mr. Moniz could have a "positive impact'' on his group's campaign.

The group is also planning a public meeting this Sunday at St. John's Church Hall, Pembroke, starting at 6 p.m.

It is appealing for all sectors of the Portuguese to attend, and help hammer out a campaign strategy.

Mr. Pearman on Thursday defended Government's immigration policies.

"Our policies are working and I see no reason to change,'' he said.

He described the National Liberal Party's short-term recommendation for leniency for long-term residents as "ill thought out'', saying it would lead to an additional 950 grants of status overnight.

Mr. Pearman also hit back at the Progressive Labour Party, which had attacked the United Bermuda Party for not tackling the problem many years earlier.

Deputy opposition leader Mr. Walter Roberts said Government had brought the dilemma on its own head.