PIP: Bermuda's population characteristics, history, government, political situation, economy, and foreign relations were briefly described. Bermuda, a parliamentary British colony, is situated on a group of island in the Atlantic Ocean, about 650 miles east of North Carolina. Bermuda was discovered by the Spaniards in 1503; however, it was the British who founded the 1st settlement on the islands in 1612. The current population size is 56,652, and the annual rate of growth is 0.3%. About 2/3 of the population is of African descent, and the remaining inhabitants are of British, American, Portuguese, or Caribbean descent. The literacy rate is 98%, and school enrollment is universal and compulsory for 12 years. The infant mortality rate is 7.1/1000 live births and life expectancy is 69 years for men and 76 years for women. Although Bermuda is a British colony, it was granted considerable internal autonomy in 1968. A governor, appointed by the British Crown, is in charge of external affairs, defense, and the country's internal security. Under the constitution, adopted in 1968, the internal affairs of the country are conducted by an elected bicameral legislative body and a premier who represents the majority party in the lower legislative house. The current premier is John W. D. Swan of the United Bermuda Party (UBP). The UBP is supported mainly by the white minority and by a few blacks. The Progressive Labor Party (PLP) is supported primarily by the black majority. The UBP has retained power since it was established in 1965, but at each election, its winning margin decreased. Although there is universal suffrage, only a small proportion of the public participates in elections. Despite the fact that the governor was assassinated in 1972 and there was civil unrest in 1977, the country is politically stable. This political stability is due in part to the government's efforts since the 1950s to promote racial equality, to the government's willingness to recognize labors' right to organize, and to the country's prospering economy. Until the early 1900s, Bermuda derived most of its income from the exportation of agricultural products to the US. Following the imposition by the US of high import tariffs on Bermudian products, Bermudians, to compensate for their loss of agricultural income, began to expand their tourist industry. Currently, 5% of the gross domestic product (GDP) is derived from agriculture and 33% from tourism. Another major source of income is derived from the 6000 foreign companies which have established headquarters in Bermuda in order to take advantage of the country's liberal tax laws. Most of the people work in tourism, in retail sales, or for the international companies. Unemplyment is 2.2%, and poverty is almost nonexistent. In 1983-84, the GDP was US$1,003 billion, per capita income was US$18,036, and the annual economic growth rate was 1.1%. Imports totaled US$411.094 million and exports amounted to US$40.5 million in 1984. The US has a naval and an air base in Bermuda.