Bermuda consists of a group of islands approximately 650 miles from
the American mainland, with a total area of 19 l/2 square miles.   The present
population is about 32,000, or more than 1,600 to the square mile.   The islands
were colonized by Britain in the early 17th century and have remained British
since.   Bermuda enjoys a large measure of self government and takes pride in the
fact that the elected House of Assembly is the second oldest Parliament in the
British Empire, being preceded in seniority only by Westminster.   The franchise
is not universal, but is based upon a property qualification. Unquestionably
this restricted franchise has led to conservative government, as legislators
are elected by those who, through possession of property, have a stake in the
community.
The Government has always pursued policies which have tended to pre-
serve the peace, charm and amenities of the Islands, not only for the purpose
of attracting visitors from Canada and the United States, but because the
preservation of such amenities is essential to the Bermuda way of life*   It may
be noted, as a case in point, that automobiles have been banned since a brief
experience prior to the World War and it is certain that no responsible opinion
would sponsor an attempt to reintroduce mechanical road transport.   Large areas
of the islands, in recent years, have been devoted to recreational purposes as
the development of the tourist industry has required.   Golf courses, especially
at Riddell* s Bay and in the Tucker1 s Town Development, have removed substantial
acreage which formerly supported considerable numbers of people, and many large
land holdings and estates, purchased by Canadians and Americans, have further
contributed to population congestion in areas which remain available for habita-
tion.   It should be noted that the population, at the time of these developments,
was 20,000, or less than two-thirds of the present population.   The Government
has not imposed central real estate taxation and Parish taxes are nominal. This
policy has been deliberate, as it is felt that subdivision of large tracts of
land would be detrimental and would impair the beauty of the islands. Although
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the results have, in some respects, been advantageous, there can be no doubt
that the existence of certain congested areas may be attributed partially to
this policy, which has encouraged retention of land holdings-   Congestion has
also been accentuated by a substantial growth in population, which has increased
50£ since 1921.   Some of the adverse social effects usually found in overcrowded
areas have already become apparent.
of the British Government on the Dockyard and the Army Post, a flourishing
agricultural industry and relatively unimportant receipts from tourists. In
the last twenty years the transition of these islands from a rural and agricul-
tural community to a more urban type of life has been necessitated sj* ike
parallel decline of agriculture and the substantial growth of the tourist business.
Agriculture in Bermuda has lapsed into unimportance since the passage of the
Hawley-Smoot Tariff Bill, which practically closed the American markets to local
produce.   Some stimulation in farming, primarily for local consumption, has
taken place since the outbreak of the war, but there can be no future for the
industry unless the American market is again reopened.   It may be stated that
considerable difficulties were experienced in finding employment for labourers
who were forced from their normal livelihood on the farms, and this problem
could be met only because the tourist business entered a period of rapid ex-
pansion at about the same time.   Much greater difficulties would be encountered
if this latter business should be lost and large numbers of Bermudians again
in the last twenty years a generation has appeared which, through education and
other employment opportunities, has grown away from the land.   The development
of the tourist traffic to the point where 85,000 Canadians and Americans visit
here annually is a matter for justifiable pride, as this trade has been promoted
largely by local enterprise.   There is no doubt that Bermuda possessed many ad-
vantages which could be and were capitalized.   The fact that the islands are
British, with different customs, currency and habits of life, lends a peculiar
appeal appreciated by Americans who seek a foreign country for vacations. The
economic
Prior to 1920 the economy of Bermuda was based upon the expenditures
balance between the unusual and the accustomed is attractive as, while Bermuda
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is quite definitely foreign, its people speak a common language and possess a
sympathetic understanding of the American point of view created by close
geographic proximity and historic relationship.   Without any doubt the absence
of noise and automobiles and the peaceful life of a small law-abiding community,
together with the natural beauties of the countryside and of the waters around
the islands contribute to bring so many people to Bermuda and to establish a
repeat visit ratio unique in the tourist trade.   In the last twenty years
Bermudians have increased the business activities of these islands, very largely
through reinvestment of profits.   In almost all cases the amount of annual
profits diverted to foreign investment has been inconsequential in comparison
to the profits reinvested in business expansion.   In addition, British interests
such as the Bermuda Railway Company and Furness-Vfithy & Company have invested
tremendous sums in steamship services, hotels and other enterprises which depend
on the tourist industry.   The average value of this industry over several years
has been some $12,000,000 to $16,000,000 per annum and this estimate does not
include large capital expenditures for construction of houses, etc.   The per
capita expenditure of the individual tourist has been high, because owing to
physical limitations Bermuda has been compelled to foster a trade among persons
of better than average income and it is this type of business which must be re-
tained.   The investment in local industry, by Bermudians through borrowings or
through reinvestment of profits, has created enterprises which, in the aggregate
represent values of many millions of pounds.   All of these values can be sastained
only through the maintenance of the tourist trade.   One further factor has con-
tributed to the stabilization of our economy and that has been the very large
investments of Americans and Canadians who have purchased estates and built
homes in Bermuda.   The upkeep of these residences involves large expenditures
by the owners and probably the funds so spent find wider circulation than any
form of income which Bermuda enjoys.   It would be a staggering loss to business
and to the employment market if these resident visitors should be forced out of
Bermuda as a result of the adoption of the American proposals. Practically
all local wealth is based on real estate.   This real estate has salable values
so high as to appear fictitious to an observer unacquainted with local conditions!.

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The constant demand for land, however, caused by limited areas, aniexpanding
population,and by the eager demand of Canadians and Americans for desirable
building sites in these islands has contributed to a very considerable apprecia-
tion of all realty.     This appreciation now supports many credits in the form
of mortgages and bank loans which might be disastrously affected if land values
should collapse.   These values cannot collapse if the tourist trade is main-
tained at peace time levels.
The inhabitants of these islands have lived quiet, orderly lives under
an enlightened system of representative government for over 300 years. Contacts
with the outside world, which have become widened with the development of the
tourist business, have been sufficiently close to permit progress in thought and
methods, without influencing too largely certain basic fundamentals which are
peculiarly and essentially Bermudian.   The white and coloured races have lived
side by side in a small area without serious difficulties arising and the racial
problem has certainly been met in a manner not surpassed anywhere else in the
world.   A high standard of living has been made possible, which has been shared
in by all sections of the community.   Wages for unskilled labour in Bermuda, of
10/- per diem, may be compared with scales of pay for similar labour in the
West Indies of from 1/6 to 2/6 per day.   High wages have in turn contributed to
business prosperity and to security and protection from malnutrition, disease
and other evils which arise in places where the living standard, are low. Outdoor
recreational facilities, although becoming less available with an increasing
population, are still unparalleled elsewhere.   Climatic conditions, fertility of
the soil and sufficient foreign income from the tourist trade to purchase
necessities from abroad have, together, made possible a pleasant and tolerant
life for all Bermudians.   The threat contained in the present proposals to the
Bermuda way of living as we have known it is even more important than the prob-
able material damage which would be sustained.
DETRIMENTAL INFLUENCES OF ANY LARGE UNITED STATES BASE.
The proposals made by the United State Board far exceed in magnitude
5
the original suggestions received by the Government of this Colony.   It is
proposed that out of an area of only 19 1/2 square miles, some 1 1/2 square
miles of land be made available to the United States Government for the pur-
poses of the proposed base.   This represents an area of about l/l3th of the
entire Colony and would, if agreed to, give rise to grave economic, social
and political consequences.   It will be recognized that Bermuda now has a pop-
ulation density of 1,600 to the square mile, which is greater than that of any
other country in the world.   The effect of this lease arrangement would be to
condense further into a smaller area of land a large and growing population and
this, virtually, in perpetuity.   In the period 1920 to 1923, when the population
was 20,000, the Bermuda Development Company was permitted, by an Act of the
Legislature, to acquire large property holdings at Tucker's Town.   Despite the
fact that this area was very sparsely populated, the resettlement of the numbers
of people affected constituted a serious problem, repercussions of which were
felt for many year afterwards. It cannot be doubted that further limitation of
available property for homes will have the most disastrous effects.   As previous^
ly pointed out, land areas available have already greatly diminished through
American and Canadian purchases of land, through the Bermuda Development Company11
holdings at Tucker's Town and through the diversion of considerable areas for
recreational purposes, principally golf.   It may be stated that any further
redistribution of population will cause increased congestion in areas now over-
crowded and this in turn must add considerably to the cost of public health,
water supply and other services which are incidental to built-up areas. Many
of the persons who nould be affected are now finding employment in the area which
would be acquired and the problem of placing these persons in substituted employ-
ment iculd be difficult.   It is understood that the United States Government may
require to man the proposed base with a permanent personnel of perhaps 5,000
men, and as it must be assumed that families will accompany many of these, an
increase in the total population of more than 6,000, or 20$ of the present
population appec-rs inevitable.   It is true that it is proposed to find quarters
for the entire personnel in the area selected, but obviously the whole island
will be affected, as the personnel envoys leisure hours to seek recreation.
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There can be no doubt that the sudden addition of several thousand males to our
population oust lead to most serious effects from a social point of view.
Approximately one-quarter of total coloured births are now illegitimate and it
is inevitable that this ratio will be increased by reason of the fact cited.
It must be supposed that any area selected will contain recreational facili-
ties, for swimming and the use of small boats and yachts, and these facilities
are already limited.   It is apparent that naval ships and tenders may lead to
pollution of harbours, which in itself would still further restrict the use of
these waters for recreation by the civilian population.   Many jurisdictional
problems must unquestionably be involved and these difficulties will be en-
hanced unless the site selected can be completely divorced from other sections
of the island.   This could be done more easily if the alternative site at the
East End is chosen.   It cannot be doubted that the establishment of a land air
base of the magnitude visualized must destroy many of the attractions and
amenities which have brought the Canadian and American visitor to Bermuda, We
believe that a substantial portion, if not all, of our normal tourist trade
can be lost through the noise, restriction of movement in large areas and the
buildings of a type architecturally unsuited to Bermuda, which the proposals
will entail.   The resultant material decline in the tourist trade would be
accompanied by a migration of many substantial American, Canadian and Bermudian
residents who regard Bermuda as a pleasant place in which to reside, but whose
affection for these islands could not be expected to survive the loss of the
attractions which induced them to settle here in the first instance. Complete
collapse of the economic structure of Bermuda would be involved through any
substantial decrease or loss of the tourist industry.   Real property would
deteriorate seriously in value and among all classes heavy investments in
property are held, both directly and by way of mortgage.   Businesses, hotels
and guest houses would suffer and this would be followed by unemployment. It
would be questionable, under such conditions, whether the Government could
secure sufficient tax revenues in the face of dwindling community income. From
a icnowledge of the tourist industry, based upon many yeais experience, and from
a continuous and detailed examination of the particular aspects of the business
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Special objec-
tions to Warwi^J]
& Southampton
site.
of this resort, responsible opinion here is convinced that the developments
now contemplated threaten the complete loss of this industry and the subsequent
economic destitution of Bermuda.   One further comment should be made in regijrd
to an immediate problem which would be presented.   Persons in the affected area
are, in many cases, tenants who would find it difficult to lease other premises
elsewhere.   While compensation will undoubtedly be paid to the owners of these
properties, it is questionable whether the funds so received would be reinvested
in real property for rental purposes.   As a matter of fact it is quite certain,
in the majority of cases, no such reinvestment would take place.   The location
of the area selected would affect the magnitude of this problem as the East End
would involve far less of a population resettlement difficulty than would the
area in Warwick and Southampton, which has been proposed.   This Government may
be faced with the necessity of undertaking a housing program in areas to be
selected by Government.   Anyone, familiar with local conditions, will recognize
that such a project would not only be difficult and costly, but would lead to a
demand by other sections of the population for similar housing facilities.
[Redistribution may involve great political problems, as our franchise is based
on land.   No one can say exactly what the effects might be over a long period of
[years, but that the proposals hold the gravest possibilities cannot be doubted.
In addition to the many difficulties which will apply, regardless of
the location of the proposed base, the site selected in Warwick and Southampton
[Parishes has certain peculiar objections of great importance.   The mainland area
is situated in the middle of the Colony and includes a wide corridor from coast
to coast, dividing the Colony into two parts and cutting road and railroad
communications.   The area includes many valuable properties, a number of which
are owned by Americans and Canadians, whose continued use of Bermuda residences
is a matter of great importance to local business.   Certain immediate questions
will arise in connection with adequate access for the civilian population to and
from the western parishes by road and railway.   The islands in the Great Sound
which have been selected for storage of explosives are extensively used for
recreational purposes by visitors and by the local inhabitants.   These waters
I . ...... ¦ imimiihiiii i11,1, 'i, 'nil iHiimnpHi
are popular with users of small boats and the fanous annual yacht races, so
much enjoyed, are held in the Great Sound.   These islands are in close proxi-nity
to the only commercial channel into Hamilton Harbour and are only a mile and a
half from the City of Hamilton.   A serious explosion would be calamitous. The
mainland area contains approximately 1,500 persons who would be dispossessed
and whose resettlement elsewhere on the islands would present a problem of
major difficulty.   Many of these persons are tenants and, as stated previously,
|it is doubtful if the landlords who would receive compensation for property
expropriated would attempt to reinvest in similar tenant properties elsewhere
on the islands.   A situation, therefore, would arise which would require, in
all likelihood, a Government housing scheme on a large scale.   The objections
to this course are many - financial, econoniic, social and political.   It is
[questionable whether areas could be found in the islands sufficiently large to
absorb the affected population, particularly if due and proper consideration
lis given to the certain depreciation of land values in the proximity of the
new settlements which would be required.   It is impossible to exaggerate the
difficulties involved in a rehousing plan of such proportions, but major dis-
locations would be inevitable.   The area in these two parishes contains many
jvery valuable properties in which amounts of from a few thousand to many
hundreds of thousands of dollars have been invested by Canadian, American and
Sermudian property holders.   The compensation which would, therefore, be in-
volved would be enormous and every consideration should also be given to the
jiamage which would be caused to other properties not actually required for the
tase.   A base at the East End of the island, v:hile still presenting difficulties
>f a similar nature, would not cause, to the same degree, the damage which the
Warwick and Southampton site would entail.   First of all it would be possible
bo divorce the base from the rest of the island in such a way as not to affect
Seriously principal population centres.   The beautiful approaches to Hamilton
Barbour, the islands in the Great Sound, the very attractive Riddell's Bay
eievelopr.ient all would be untouched if the East End site were selected. The
fcumber of persons who would be affected would be far less - perhaps one hundred
md fifty - and consequently fewer political and social problems would be en-
:ountered.   The Colony would not be severed by the base, as would be the case
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I
with the site at the West End and far fewer and less important amenities would
be disturbed.   There can be no question but that property compensation would
be much less in the East End area.
Bermuda welcomes this indication that the American and British peoples
are drawing closer together and believes it difficult to exaggerate the far-
reaching importance of closer cooperation and understanding.   In this hemis-
phere many social, economic and financial considerations have for years clearly
indicated that accord, along and beyond the lines now reached, is not only de-
sirable, but inevitable.   Our people are intensely loyal to the Crown, have
been hapfy and contented under British rule, and despite our admiration for
the United States and its people, we dislike the prospect of any change in our
present status.   It is obvious that if the defence administration of Bermuda
is to rest largely in American hands, for a period beyond the life span of any
present Bermudian, succeeding generations will more and more come under Araericar
influence and our British ties may similarly become imperceptibly weakened.
Forces are about to commence to influence our administrative life, which have
so far been confined to social and business contacts and we trust that this
process, which is obviously before us, may coincide only with the progress
which will be made towards a union of English speaking peoples.   We wish to
play our part in the developments which will come and we think that the warm
friendship and sympathy held by Bermudians for jjnericans can contribute to the
end we all desire.   We hesitate to appear to indicate that we do not welcome
ijnerican cooperation in the defence of these islands.   We do welcome this co-
operation, we appreciate all of its broad implications and we intend to make
such sacrifices as we may be called upon to make in a spirit of loyalty and
devotion to the Crown.   Nevertheless it is the duty of the Bermuda Government
to protect its people from economic chaos and financial bankruptcy.   The war
will end but the lease continues practically in perpetuity and it is essential
that succeeding generations of Bermudians be given a fair opportunity to achieve
a reasonable and decent standard of living, which might prove impossible if the
present proposals become operative.