Paterson, who will be 26 next month, was one of Scotland's fewsuccesses in the World Cup where they were fortunate to make the quarter-finalsbut comes as some surprise as experienced hooker Gordon Bulloch had beenparaded in front of the media at the Six Nations launch on Wednesday.
Williams, who replaced Ian McGeechan after the World Cup, saidthat Paterson was a role model for every Scot.
"Chris is an outstanding player, assured of hisposition," said former Leinster Lions coachWilliams, "His character as a man and his conduct as a non-smoker andnon-drinker - but still with a great sense of humour - is a great example for theteam and for the nation as someone we can look up to."
Williams was at pains to point out that Paterson and Bulloch - whowill be vice-captain - would be like a partnership.
"Chris and Gordon will captain the side in the next 12months. We see it as a partnership. They have a series of lieutenants on the field aroundthem who will be part of the leadership group."
Paterson made the first of his 40 appearances against Spain in the1999 World Cup and has scored 210 points, while he has starred at bothwinger and then fly-half when switched there during the World Cup by McGeechanafter both Gregor Townsend and Gordon Ross failed to impress.
Bulloch is Scotland's most capped hooker since making his debut in1997 with 58 caps - scoring four tries - and the 28-year-old was also aBritish and Irish Lion tourist to Australia in 2001.
Meanwhile Matt Williams is banking onsome lateral thinking helping his side in this season's RBS Six Nations.
The Australian, brought in to succeed Ian McGeechan followingScotland's struggle to reach the World Cup quarter-finals last year, acceptsthat financially the team will always find it tough to match the likes ofworld champions England, but he insists that Scotland can neverthelesscompete with rugby's major powers.
"I don't believe that the team and the coaches in the pastwere given the resources to compete against the great teams... It was like amiddleweight boxer in a heavyweight division," Williams told reporters onWednesday.
"We want the opportunity to stand toe-to-toe with thegreats," added Williams, of a Scotlandteam that finished fourth in last season's Six Nations.
"It is really exciting that England are now the worldchampions. What players want is to test themselves against the best in the world. The great days are when you take on great teams and beat them...that's what you remember for the rest of your life."
And Williams insisted money alone was not the answer. "It'snot just funding. We are working on a close relationship with the Scottish
Williams, 43, added: "We are never going to match the giantsfor money; we are not asking for that. There's a lot of other ways to skin the cat.
"We have three professional teams who we have some influenceover and we are adding resources to them in terms of coaching and technicaladvice which benefits them as well as us.
"What we are doing is exactly what Ireland have done, it'swhat Australia did. It's not rocket science," explained Williams.
Former Emerging Wallabies coach Williams hit the headlines whensoon after his appointment he called for players seeking Scotland selection tobe based there.
"There are obvious financial difficulties in Scotland. But atthis World Cup we had 50 percent of players not based in Scotland - we can'tcompete at the next World Cup if that is still the case," he explained.
Since the Australia showpiece, Scotland have lost five players to international retirement including record cap holder and stand-offGregor Townsend, scrum-half and former captain Bryan Redpath and wing KennyLogan.
But Williams, who insisted he had not encountered any"negativity" since becoming the first foreigner to coach Scotland, put his trust in thesquad's rising stars.
"We've got some really exciting young players - Nikki Walker(wing), Graeme Morrison (centre) and Chris Cusiter (scrum-half). "The trick is that you don't want to throw a young man in andburn him so he loses his confidence but he has to be blooded."
And Williams pleaded for patience, saying his team should not bejudged on results alone.
"We need to make sure we put a process in place so that theseyoung guys can succeed. Success for them might not necessarily be always scoringmore points than the opposition.
"Now we always want to win but we want these young guys tofocus on processes. We've got a very experienced forward pack that can copewith any international team. We've got to build our game around those guys andbring these young guys through."
Meanwhile Williams proved that his diplomatic skills were up tothe job when he neatly side-stepped the issue of whether Scotland's themesong, Flower of Scotland, would be replaced by Highland Cathedral because of theformer's 'anti-English' lyrics.
"It's not our decision. Waltzing Matilda (the unofficialAustralian anthem) is about an itinerant thief who commits suicide. If we start worrying about the content of our songs we couldbe in serious trouble."AFP