Bermuda will have key friends in the White House and on Capitol Hill following the election of George W. Bush as US president, former Premier Sir John Swan said last night.

Sir John has close links with the President-elect's father, former President George Bush, and is friends with General Colin Powell, who is widely tipped to be the next Secretary of State.

He is also well acquainted with California Republican representative Christopher Cox, who is being lined up as the next Chair of the influential House Ways and Means Committee.

Sir John said he will not interfere in Bermuda Government matters, but will use his influence to ensure the Island receives a sympathetic hearing in Washington under the new Bush administration.

This could be critical if the Island and other offshore jurisdictions come under pressure to reform their financial services from international bodies such as the Organisation for Economic Co-Operation and Development (OECD).

Meanwhile, US Consul General Larry Owen, who was appointed by president Bill Clinton, is expected to resign on or around January 20, when Governor Bush is sworn-in to the White House.

Mr. Owen, a leading Democrat fund-raiser who was one of Clinton's direct political appointments, arrived in Bermuda in August 1999.

Douglas Dobson, deputy principal officer at the US Consulate, told The Royal Gazette yesterday it was protocol for principal diplomatic staff who were presidential appointments to resign when a new administration is elected.

His replacement, who will be chosen by the Bush administration, has not been named.

Sir John said yesterday: "I'm happy for the Bushes because I've strong ties with them, particularly the father, who was instrumental in getting the tax treaty (between Bermuda and the US.) "George Bush (Sr.) and I go back a long time, to before the tax treaty when he was vice-president and we have a long-standing relationship with the Bush family.

"My friend Colin Powell may be Secretary of State, and that further strengthens our ties with the executive branch.

"Also, the Ways and Means chair is going to be Chris Cox who is also a friend of mine.

"If the OECD takes action, we are going to have a sympathetic ear because they have visited Bermuda. Colin Powell came to Bermuda on several occasions and has a strong familiarity with the military background and role Bermuda played during the Cold War.

"A combination of these things could work in our favour, particularly if the financial services area is threatened.

"With America having made its mind up, I will do my utmost to ensure Bermuda gets the best advantage.

"I will encourage the US Government to be co-operative with our government.

"We have an elected government and it is not for me to interfere in government affairs, but I will do my best to ensure Bermuda finds itself in as advantageous a position as possible.'' Bermuda friends in high places Referring to the presidential deadlock being finally broken, Mr. Dobson said: "We are all glad it is finished so we can move ahead.

"About 65 percent of chiefs of commission overseas are career foreign service officers but their names are forwarded to the State Department from the president, so in a real way the heads of mission are appointed by the president.

"Some (such as Mr. Owen) are directly appointed by the president's staff.'' Mr. Owen was on vacation and could not be contacted for comment.