n back to England. Bermuda Gazette of 12 November, 1796, calling for privateering against Spain and its allies, and with advertisements for crew for two privateer vessels. After the American Revolution, the Royal Navy began improving the harbours and built the large dockyard on Ireland Island, in the west of the chain, as its principal naval base guarding the western Atlantic Ocean shipping lanes. The British attacks that would result in the creation of "The Star-Spangled Banner" were planned and launched from Bermuda, the Royal Navy's 'North American Station'. It was here that the British soldiers assembled before being sent to attack Baltimore and Washington. In 1816, Bermuda's Royal Naval Dockyard was fortified against possible US attacks by James Arnold. Arnold was the son of famed US traitor Benedict Arnold.[3] Today, the "Maritime Museum" stands on the site of the Old Commissioner's House in the Royal Naval Dockyard and houses artifacts of the base's military history. As a result of Bermuda's proximity to the southeastern U.S. coast, it was regularly used by Confederate States blockade runners during the American Civil War to evade Union naval vessels and bring desperately needed war goods to the South from England. The old Globe Hotel in St. George's, which was a centre of intrigue for Confederate agents, is preserved as a museum open to the public. In the early 20th century, as modern transport and communication systems developed, Bermuda became a popular destination for wealthy American, Canadian and British tourists. In addition, the Smoot-Hawley Tariff Act enacted by the United States against its trading partners in 1930 cut off Bermuda's once-thriving agricultural export trade (primarily fresh vegetables to the US) spurring the overseas territory to develop its tourist industry, which is second behind international business in terms of economic importance to the island. In 1949, Henry Vassey, then Chairman of the Bermuda Trade Development Board, urged the House of Assembly of Bermuda to pursue a political union with Canada. Four Methodist Church congregations in Bermuda are part of The United Church of Canada, forming Bermuda Presbytery of the United Church's Maritime Conference headquartered in Sackville, New Brunswick, Canada. [edit] Politics Main article: Politics of Bermuda The State House, the home of Bermuda's parliament 1620–1815 Executive authority in Bermuda is vested in The Queen and is exercised on her behalf by the Governor. The governor is appointed by the Queen on the advice of the British Government. The current governor is Sir Richard Hugh Turton Gozney KCMG; he was sworn-in on December 12, 2007.[4] There is also a Deputy Governor (currently Mark Andrew Capes JP).[5] Defence and foreign affairs remain the responsibility of the United Kingdom, which also retains responsibility to ensure good government. It must approve any changes to the Constitution of Bermuda. Bermuda now exists as an overseas territory of Britain, but it is the oldest British colony. In 1620, a Royal Assent granted Bermuda limited self-governance, thus making Bermuda's Parliament the fifth oldest in the world, behind only England, the Isle of Man, Iceland and Poland[6] The Constitution of Bermuda came into force on June 1, 1967 and has been amended in 1989 and 2003. The head of government is the premier. A cabinet is nominated by the premier and appointed officially by the governor. The legislative branch consists of a bicameral parliament modeled on the Westminster system. The Senate is the upper house consisting of eleven members appointed by the governor on the advice of the premier and the leader of the opposition. The House of Assembly, or lower house, has thirty-six members elected by the eligible voting populace in secret ballot to represent geographically defined constituencies. Elections must be called at no more than five-year intervals. The Progressive Labour Party won the most recent general election held on December 18, 2007, winning 22 of 36 seats in the House of Assembly.[7] Following his victory over former Premier Alex Scott at the Progressive Labour Party delegates' conference in October 2006, the current premier is Ewart Brown. The United Bermuda Party serves in opposition. The Progressive Labour Party leadership favours independence from the United Kingdom, although polls have indicated that this is not supported by the population. While a referendum in 1995 on independence was defeated by a substantial margin, the Bermuda Industrial Union and the Progressive Labour Party (then in the Opposition) had called for a boycott of the referendum, having an unquantified impact on the result. There are few accredited diplomats in Bermuda. The United States maintains the largest diplomatic mission in Bermuda - comprising both the United States Consulate and the U.S. Customs and Border Protection Services at the Bermuda International Airport. U.S. Consul General Gregory W. Slayton is the U.S. Chief of Mission in Bermuda. Given that the United States is by far Bermuda's largest trading partner - providing over 71% of total imports, 85% of tourist visitors while there is an estimated $163 billion of U.S. capital in the Bermuda insurance/re-insurance industry alone - and the fact that an estimated 5% of Bermuda residents are U.S. citizens which represents 14% of all foreign born persons - American diplomatic presence is seen as an important element in the Bermuda political landscape. [edit] Parishes and municipalities Main article: Subdivisions of Bermuda Parishes of Bermuda Bermuda is divided into nine parishes and two municipalities. Bermuda's nine parishes are: Devonshire Hamilton Paget Pembroke St George's Sandys Smith's Southampton Warwick Bermuda's two incorporated municipalities are: Hamilton (city) St. George's (town) Bermuda's two unincorporated municipalities are: Flatts Village (village) Somerset Village (village) [edit] Military Remembrance Day Parade, Hamilton, Bermuda. Main article: Military of Bermuda Once known as the Gibraltar of the West, the defence of Bermuda remains the responsibility of the British government. Until the American Revolutionary War, following which Bermuda became the Royal Navy's Western Atlantic headquarters, the Bermuda government had maintained militia for the defence of the colony. Once the Royal Navy established a base and dockyard defended by regular soldiers, however, these militias became superfluous and were disbanded following the War of 1812. At the end of the 19th century, the colony did raise volunteer units to form a reserve for the military garrison. Due to its strategic location in the North Atlantic Ocean, Bermuda was vital to the Allies' war effort during both World Wars of the 20th century, serving as a marshalling point for trans-Atlantic convoys, as well as a naval and air base (during the Second World War). In May 1940, the U.S. requested base rights in Bermuda from the United Kingdom, but British Prime Minister Winston Churchill was initially unwilling to accede to the American request without getting something in return.[8] In September, 1940, as part of the Destroyers for Bases Agreement, the United Kingdom granted the U.S. base rights in Bermuda. Bermuda and Newfoundland were not originally included in the agreement, but both were added to it, with no war material received in exchange. However, one of the terms of the agreement was that the airfield the US Army was to build in Bermuda would be used jointly by the US and the UK (which it was for the duration of the war, with RAF Transport Command relocating there from Darrell's Island in 1943). Construction began in 1941 of two airbases consisting of 5.8 km² (2¼ mi², 1,400 acres) of land, largely reclaimed from the sea. For many years, Bermuda's bases were used by U.S. Air Force and, later, U.S. Navy planes patrolling the Atlantic for enemy submarines, first German and, later, Soviet. Although leased for 99 years, U.S. forces withdrew in 1995, as part of the wave of base closures following the end of the Cold War. Canada, which had operated a war-time naval base, HMCS Somers Isles, on the old Royal Navy base at Convict Bay, St. George's, also established a radio-listening post at Daniel's Head, in the West End of the islands during this time. HMS Ambuscade at the Royal Naval Dockyard In the 1950s, after the end of World War II, the Royal Naval dockyard and the military garrison were closed. A small supply base continued to operate within the dockyard area until it, too, was closed in 1995, along with the American and Canadian bases. In both World War I and World War II, Bermudians served in the British armed forces. Amongst the latter was Major-General Glyn Charles Anglim Gilbert, Bermuda's highest ranking soldier. After the war, he was instrumental in developing the Bermuda Regiment. A number of other Bermudians and children of Bermudians had preceded him into senior ranks, including Bahamian-born Admiral Lord Gambier, and Bermudian-born Royal Marines Brigadier Harvey, who, when promoted to that rank at age 39, following his wounding at the Anzio landings, became the youngest-ever Royal Marine Brigadier. The Cenotaph in front of the Cabinet Building (in Hamilton) was erected in tribute to Bermuda's Great War dead (the tribute was later extended to Bermuda's Second World War dead) and is the site of the annual Remembrance Day commemoration (see photo, above). Today, the only military unit remaining in Bermuda is the Bermuda Regiment, an amalgam of the voluntary units originally formed toward the end of the 19th century. Although the Regiment consists of 'voluntary units' there still exists conscription in which balloted males are required to serve for three years, two months part time, once they turn eighteen. [edit] Role in International Relations As an Overseas Territory of the United Kingdom, Bermuda has no seat in the United Nations and is represented by the UK in foreign affairs. Bermuda's close proximity to the United States has made it the site of past summit conferences between British Prime Ministers and U.S. Presidents. The first summit was held in December, 1953, at the insistence of Prime Minister Winston Churchill to discuss relations with the Soviet Union during the Cold War. Participants at the conference included Churchill, U.S. President Dwight D. Eisenhower, and French Premier Joseph Laniel. In 1957, a second summit conference was held, this time Harold Macmillan was the British Prime Minister and he arrived earlier than President Eisenhower to make it clear that they were meeting on British territory, as tensions were still high regarding the conflict over the Suez Canal in the previous year. It was said the two discussed the general situation of the world. Macmillan would return in 1961 for the third summit with President John F. Kennedy, who was familiar with Bermuda having made numerous personal visits. The meeting was called to discuss the Cold War tensions arising from construction of the Berlin Wall. The most recent summit conference in Bermuda between the two powers occurred in 1971, when British Prime Minister Edward Heath met U.S. President Richard Nixon.[9]. [edit] Geography Map of Bermuda Main article: Geography of Bermuda Bermuda is located in the North Atlantic Ocean, roughly 580 nautical miles (1070 km, 670 mi) east-southeast of Cape Hatteras on the Outer Banks of North Carolina and roughly 590 nautical miles (1100 km, 690 mi) southeast of Martha's Vineyard (see map). It has 103 km (64 mi) of coastline. There are two incorporated municipalities in Bermuda: the City of Hamilton and the Town of St. George. Bermuda is divided into various "parishes", in which there are some localities called "villages", such as Flatts Village, Tucker's Town and Somerset Village. Although Bermuda's latitude is similar to that of Savannah, Georgia, it is warmer in winter, and cooler in summer (the same is true of Bermuda in comparison to places much further north, including New York). Its subtropical climate [3] is warmed by the nearby Gulf Stream, thanks to the westerlies, which carry warm, humid air eastwards over Bermuda, helping to keep winter temperatures above freezing. The climate is humid and, as a result, the summertime heat index can be high, even though mid-August temperatures rarely exceed 30 °C (86 °F). Winters are mild, with average daytime temperatures in January and February around 20°C (68°F), although cold fronts, which dominate the local weather for most of the year, bring arctic air masses that can result in rapid temperature drops. Atlantic winter storms, often associated with these cold fronts, can produce powerful, gusting winds and heavy rain. Factoring in the wind chill, the felt air temperature in winter can fall below freezing, 0°C (32°F), even though the actual temperature rarely drops below 10°C (50°F). The only source of fresh water in Bermuda is rainfall, which is collected on roofs and catchments (or drawn from underground lenses) and stored in tanks. Each dwelling usually has at least one of these tanks forming part of its foundation. [edit] Economy Bermudian banknotes Main article: Economy of Bermuda Bermuda's currency is the Bermudian dollar, which is pegged to the US dollar. US notes and coins are used interchangeably with Bermudian notes and coins within the islands for most practical purposes; however, banks levy a small exchange rate for the purchase of US dollars with Bermudian dollars.[10] Bermudian notes carry the image of HM Queen Elizabeth II. The Bermuda Monetary Authority is the issuing authority for all banknotes and coins, as well as being responsible for the regulation of financial institutions. There is a permanent exhibition of Bermuda notes and coins at the Royal Naval Dockyard Museum. Bermuda's per-capita income is approximately 50% higher than that of the United States; according to the Bermuda Government's Economic Statistics Division, Bermuda's GDP was $4.857 billion in 2005, or $76,403 per-capita, giving Bermuda the highest GDP per capita in the world.[11] The affordability of housing has become a prominent issue over the past few years. The CIA World Factbook lists the average cost of a house in June 2003 as $976,000,[12] while real estate agencies have claimed that this figure had risen to $1.6 million by 2006,[13] and to $1.845 million by early 2007,[14] though such high figures have been disputed.[15] Bermuda is an Offshore financial centre, which results from its low direct taxation on personal or corporate income. The local tax system is based upon import duties, payroll taxes and consumption taxes. The legal system is derived from that of the United Kingdom, with recourse to English courts of final appeal. As the offshore domicile of many foreign companies, Bermuda has a highly-developed international business economy; it is a financial exporter of financial services (primarily insurance, reinsurance, investment funds and special purpose vehicles (SPV) ). Large numbers of leading international insurance companies are based in Bermuda making the territory one of the world's largest reinsurance centres.[16] Those internationally owned and operated businesses that are physically based in Bermuda - of which there are around four hundred - are represented by the Association of Bermuda International Companies (ABIC). In total, over 1,500 exempted or international companies are currently registered with the Registrar of Companies in Bermuda. Thanks to its favourable tax regime and a highly reactive regulatory framework Bermuda is the domicile of choice for the implementation of insurance related innovative solutions also known as Alternative Risk Transfer (ART). ART includes captive insurances, Finite Risk insurance and insurance securitisation such as Cat bonds. The Bermuda Stock Exchange (BSX) first established in 1971 is now the world's largest fully electronic offshore securities market, with a current market capitalisation (excluding mutual funds) in excess of US$ 330 billion[citation needed]. There are four hundred securities listed on the stock exchange, of which almost three hundred are offshore funds and alternative investment structures, attracted by Bermuda's regulatory environment. The Exchange specialises in listing and trading of capital market instruments such as equities, debt issues, funds (including Hedge Fund structures) and depository receipt programmes. The BSX is a full member of the World Federation of Exchanges and is located in an OECD member nation. It also has Approved Stock Exchange status under Australia’s Foreign Investment Fund (FIF) taxation rules and Designated Investment Exchange status by the UK's Financial Services Authority. Tourism is Bermuda's second largest industry, with the island attracting over one-half million visitors annually, of whom more than 80% are from the United States. Other significant sources of visitors are Canada and the United Kingdom. Tourists arrive either by cruise ship or by air at Bermuda International Airport, the only airport on the island.[17] [edit] Education The Bermuda Education Act 1996 requires that only three categories of schools can operate in the Bermuda Education system: aided school, has all or a part of its property vested in a body of trustees or board of governors and is partially maintained by public funding or, since 1965 and the desegregation of schools, has received a grant-in-aid out of public funds. maintained school, has the whole of its property belonging to the Government and is fully maintained by public funds. private school, not maintained by public funds and has not, since 1965 and the desegregation of schools, received any capital grant-in-aid out of public funds. The private school sector consists of 6 traditional private schools, two of which are religious schools, and the remaining four are secular with one of these being a single gender school. Also, within the private sector there are a number of home schools which must be registered with the government and receive minimal government regulation. The only boys’ school opened its doors to girls in the 1990s and in 1996, one of the maintained public schools became a private school. Prior to 1965, the Bermuda school system was racially segregated and when the desegregation of schools was enacted in 1965, two of the formally maintained “white” schools and both single gender schools opted to become private schools. The rest became part of the public school system and were either aided or maintained. At present there are 26 schools in the Bermuda Public School System, eighteen of which are primary schools, five are middle schools, two senior schools and one special school. There is also an Alternative Programme provided for students with behavioural challenges who cannot function in the public mainstream. There are two aided primary schools, two aided middle schools and one aided senior school. For higher education, the Bermuda College offers various associate degrees and other certificate programmes.[18] Bermuda does not have any four-year colleges or universities. [edit] Sightseeing and attractions Bermuda's pink sand, Astwood Park beach Renowned for its pink sand beaches and natural beauty, Bermuda offers a number of other attractions, as well. Historic St. George's is a designated World Heritage Site. Scuba divers can explore numerous wrecks and coral reefs in relatively shallow water (typically 30–40 ft. in depth) with virtually unlimited visibility. Many nearby reefs are readily accessible from shore by snorkellers, especially at Church Bay. Bermuda's most popular visitor attraction is the Royal Navy Dockyard and Museum. Other attractions include the Aquarium and Zoo, Bermuda Underwater Exploration Institute, the Botanical Gardens, lighthouses, and the Crystal Caves with its impre