The threatened closure of the Commonwealth Institute in London could impact on British people's limited knowledge of Bermuda.

The British Government has said it may cut funds to the Institute, showcase for Britain's present dependent territories and former colonies.

But a battle has started to save it from the axe along with its exhibits which give vivid pictures of the 50 Commonwealth countries.

Bermuda has a small exhibit tied into a Caribbean section and there is educational material and newspaper cuttings concerning the Island.

The 100-year-old Institute in Kensington will lose its $4.5 million grant by March, 1996, according to the Foreign Office. A spokesman said it was "purely a financial decision,'' noting that the number of visitors had dropped sharply in the past 10 years.

Mr. Stephen Cox, the Institute's director general, said unless other funds could be found, the cut will mean "the likely closure of the institute, the loss of our exhibitions and programmes and the mothballing of our Grade II listed building''.

Formerly the Imperial Institute, the centre was set up to inform and educate the British public about the far corners of the Empire. A favourite venue of the Queen, who is head of the 50-nation Commonwealth, it is used today for educational and cultural events and has permanent exhibitions on former colonies and dependent territories.

At the Institute's centenary last year the Queen described it as "a window here in London, that enables its visitors to look out on a remarkable view of 50 countries.'' Press Officer Ms Karen Dale said: "The Institution houses permanent exhibitions on all the Commonwealth countries, including Bermuda -- comprising photos, artifacts, displays, facts and figures.

"It also has information on Bermuda in the Commonwealth Resource Centre, such as literature and reference books, press cuttings and an information file.'' The present small exhibition includes panoramic views of the Island and pictures of its flora and fauna. There are also up-to-date press cuttings from British newspapers on the Island. It gives a general overview of what a visitor would expect in Bermuda.

She said: "There are pictures of the coral reefs and displays of some of the fish. There is also information on how tourism is a major industry in Bermuda.'' Most of the Institute's 300,000 visitors each year are students and teachers taking part in workshops, conferences and festivals.

Ms Dale added: "Anyone can phone our Commonwealth Resource Centre and ask for information about Bermuda.

"For example schools would make use of that information if they were doing a project on Bermuda. They could call in and we would provide the information.

"We would also provide information if someone was considering visiting Bermuda at any time.''