fsr26,57.8.3,12,17.4.2, Bermuda's old and historic buildings were elevated to a new status as a new "listing'' scheme was revealed -- enabling the Government to ensure protection and longevity for renowned and historically important structures.

London was the destination for the Grape Bay McDonald's appeal hearing, after formal leave to appeal to the Privy Council was requested by lawyers acting for the backers of plans for the first McDonald's burger restaurant.

Meanwhile, still in the UK capital, the Queen honoured former Bermuda Regiment Commanding Officer Lt. Col. David Burch and top lawyer Saul Froomkin QC with OBEs.

In July, the summer sun brought a headache for the Island's dog wardens, after it was revealed they were struggling under the pressure of work from complaints about dangerous dogs, noise and licences.

But there was better news for workers as the House of Assembly voted in the new National Pensions Scheme, meaning every Bermudian employee would have the right to save for their retirement. Still on a financial front, the Bank of Bermuda was hit by a body blow when MPs voted against plans to allow the institution to exempt from the 60/40 rule and raise capital on foreign markets.

Down on the beach, there was a mini-storm as officials at Elbow Beach Hotel gave into public pressure and removed signs warning the public that part of the bay was deemed private. MPs and conservationists became embroiled in a row over public and private beaches, whilst tourists just enjoyed soaking up the sun. And bad news for tourism as the Lantana Colony Club closed its doors with the loss of 60 jobs.

A photograph on the front page of The Royal Gazette caused uproar amongst readers, disgusted at the picture of two young boys holding up lizards they had captured. Long term residents had some good news, when it was confirmed that those with 20 years standing would be eligible to stay in Bermuda after retirement, apply for jobs without restrictions and enjoy permanent residence.

News from the UK that full passport rights and residency for Bermudians in Britain could be linked to the abolition of hanging and birching angered Premier Pamela Gordon, who said the population would be consulted over any changes.

On a lighter note, the Royal Gazette mailed a pair of Bermuda shorts to Iraqi dictator Saddam Hussein, after it was revealed he had banned his people from wearing shorts because "they inflame the passions of women''. It is not known whether or not he received the shorts.

Two of the Island's largest and most famous hotels were sold to Canadian Pacific Hotels in a $540 million deal which included five other world hotels.

And Premier Pamela Gordon unveiled her latest plan in the fight against crime, as she presided over the first of many crackhouse demolitions. And the Police on the beat looked set to get hi-tech bullet-proof and stab-proof vests, which were being tested by the Home Office.

British Airways caused a stampede when they announced a $330 fare to Bermuda from London. The sale, which took place over a weekend, caused phone lines to be jammed but created a mini-boom for the Island's hotels in the late summer.

In September, there was a furore after a nursery school employed a woman who had a conviction for child abuse. Some called for the removal of Gloria Holdipp from the Happy Moments nursery in Hamilton Parish.

PLP MP Dr. Ewart Brown set the controversy straight over his US citizenship by confirming he had surrendered his US passport. The act ended any discord over his right to sit in the House of Assembly.

More trouble for the PLP, when potential candidate Rodney Smith evicted a tenant and left her belongings on the doorstep. He was carpeted by party bosses and eventually stepped down as a hopeful for the election.

And another storm passed by in the form of Hurricane Danielle, which brushed by the Island early in the month. It was nearly 200 miles away but still managed to cause power cuts, ocean surges and flight delays, as well as numerous accidents.

The newly renovated Somerset Bridge reopened after months of refurbishments and permission was granted for a new $60 million hotel next to the Par-La-Ville car park.

Cruise ship security came under the spotlight after a number of arrests for drugs offences. Tour firms pledged they would check employees more thoroughly in the light of the swoop -- the announcement came as the Tourism Department revealed new cruise ship contracts that would mean a new ship for the Island.

Bermudians had success in the Commonwealth Games in Malaysia, with tenpin bowlers Antoine Jones and Conrad Lister scooped Silver in the mens' doubles.

The planned World Conference of Mayors ran into trouble as organisers and Government officials traded blows over the promised package for the event -- and work that was already said to have been done. And there were more revelations when the Bermuda Industrial Union confirmed it had made a $40,000 loan to the organiser Bonnie Marshall.

Armed robbers who raided the Somerset branch of the Bank of Bermuda were found guilty in the Supreme Court. Rupert Elroy Archibald received the heaviest term, 30 years, for his part in the raid. Accomplices Yusef Ameerbakka DeSilva and Michael Eugene Dillas were both jailed for 18 years.

Complaints against the Police would be dealt with by a new body, the five-man Police Complaints Authority -- which would investigate grievances by the public against the force.

And long-time UBP MP and Environment Minister Harry Soares announced his intention to stand down at the upcoming election.

Good news for hotel workers in October, when it was revealed that an exchange scheme was to be set up to enable staff to gain experience in other countries.

Bermudians would work in the European country's ski resorts during the winter and Austrians would help out on the Island during the busy summer period.

And still on the hospitality front, at the Airport it was revealed that $46 million will have been spent on the renovations by the year 2005. The arrivals area was opened, complete with new taxi rank in December and there is more to follow.

And there was promise of fireworks a few days earlier, when Premier Pamela Gordon ended months of speculation to name the election day as November 9.

Although campaigning had been going on unofficially for some time, it signalled the start of the most intense period of political publicity ever seen in Bermuda.

The gloves came off once the nominations were in, with breakaway PLP supporter Kenny Bascome standing in PLP Leader Jennifer Smith's St. George's North seat and lawyer Phil Perinchief trying his luck in Pembroke West.

And there were also stormy waters when a Cuban trawler brought to Bermuda by a local businessman was held at anchor, following concerns over the crew and their status. The problem was resolved after an inspection to grant the Jurel a fishing licence was made and the vessel returned to Cuba to sort out any permit problems.

Election campaigning reached a crescendo in the first week of November and so did Tropical Storm Mitch, which passed the Island after wreaking havoc in Central America. High seas and strong winds were the only effect on Bermuda.

There was much hot air after an advert featuring PLP candidate and later to be MP Delaey Robinson with a target imposed over his head and question marks over him being a possible new Finance Minister. The adman responsible for placing the ad resigned but Mr. Robinson rejected subsequent apologies and called for the businessmen responsible to come forward.

As November 9 dawned, chests were puffed out and brave smiles ruled as the PLP and UBP went head to head on the hustings in what was widely predicted to be the closest election for years.

But hours later Bermuda was looking down on a scene of jubilation as the PLP swept into power with a massive majority of 26 seats to 14. Jennifer Smith became the first woman leader to take her party to victory.

A wild party erupted on Court Street as the returning PLP heroes were hailed by the crowds -- contrasting with the muted scene at the Surf Club where the UBP gathered to lick their wounds after its first ever election defeat.

In the victory -- also the first ever for the PLP -- several top UBP Ministers lost their seats. Maxwell Burgess, later to become a Senator, Wayne Furbert and Jerome Dill were all ousted, as were veterans Quinton Edness and Anne Cartwright DeCouto.

Over 80 percent of the voting population took part and the PLP gained a massive mandate from Bermuda -- although the UBP percentage of the vote fell from 50 percent in 1993 to 44.5 percent.

Soon after the new Cabinet was sworn in, widely seen as "moderate'', and the celebrations continued as Ms Smith and her team were feted everywhere they went.

Back at the decimated UBP, Pamela Gordon was "off the Island'' but arrived back to take on the reins as Leader of the Opposition.

Jennifer Smith looked forward to an extended "honeymoon'' period and pledged to work for a "new Bermuda'' for everyone. Later, she pleased some and irritated others by announcing a one-day holiday on January 4 to celebrate the victory.

There were also major changes at the Royal Gazette as David White announced his retirement after 33 years at the paper -- 22 of those as Editor.

The ill-fated World Conference of Mayors came to Bermuda and ended in controversy as organiser Bonnie Marshall was served with a writ by the Bermuda Industrial Union for $40,000 they had lent her to help stage the event, which failed to live up to its expectations in terms of numbers.

Ms Marshall was prevented from returning to the United States whilst legal matters were sorted out.

The Rebecca Middleton murder trial, which started in late November, continued in December with the jury hearing the horrific and graphic details of the slaying of the 17-year-old Canadian girl on July 3, 1996.

But the proceedings came to a dramatic end, when Puisne Judge Vincent Meerabux ordered the jury to find Justis Smith, 20, of Pembroke not guilty of premeditated murder.

The controversy rumbled on in the days to follow as the Canadian public joined with Bermudians in their anger at the way the proceedings had been conducted.

Questions were asked of the role played by former Attorney General Elliott Mottley -- who left the Island for good just days before the trial ended -- in accepting a plea by Kirk Mundy of accessory after the fact, and of the way the investigation was handled.

Rebecca's parents, David and Cindy Middleton both backed calls for an inquiry into the case but said they didn't support a boycott of Bermuda, called for by many Canadians who visited a special Internet website in their thousands.

The Attorney General's Chambers said they intended to appeal the judge's decision.

Staying close to tragedy, top Government Ministers and officials, together with Police Commissioner Jean-Jacques Lemay vowed to end the Island's road death toll. By the end of the year it had reached 17 -- a higher ratio per capita than the US or UK. In a bid to slow traffic down, the Police announced a 24 hour surveillance operation on the roads to run indefinitely.

The year ended on a troubled note after much public debate over the release in to the community of Chesterfield Johnson, who completed his term of 20 years imprisonment for the murder of 11 year old Connie Furtado. Many parents were concerned and at least one school issued a warning to parents over child safety.

ACQUITTED -- Justis Smith (above), who was acquitted of charges of the premeditated murder of Rebecca Middleton. Meanwhile, Rebecca's mother, Cindy (below), was left with unanswered questions about the case.

Graphic file name: JSMITH