The United States will continue to be a good friend to Bermuda after the signing of the deal in Washington on Tuesday to renounce its former Baselands, Premier Jennifer Smith said on Friday.

Ms Smith said she was pleased the US had stressed the cordial relationship would continue, even though the Americans had signed away the right to reoccupy the Baselands with the annulment of the 1941 Leased Lands Agreement.

She said the ceremony, which took place in the Treaty Room of the State Department in Washington, "assumed a dignity and significance that all presence could feel was consistent with the importance of the occasion".

The deal was signed by Lincoln Bloomfield, the assistant secretary for Political and Military affairs at the State Department, and the British Ambassador to Washington, Sir Christopher Meyer.

Mr. Bloomfield and Sir Christopher emphasised the sacrifice and key role Bermuda had made in defending the free world during the Second World War and the Cold War.

"I am pleased to note that assistant secretary Bloomfield also made mention of the continuing dialogue between the US and Bermuda. And he gave an assurance that the US intends to remain a good friend to Bermuda," said the Premier.

She told MPs she also visited the Ministry of Tourism's new office in Washington.

"I am optimistic that with the forthcoming introduction of the new air service from Ronald Reagan National Airport next month, we will soon begin to see the fruits of our investment in this area," she said.

However, in the motion to adjourn Opposition Leader Dr. Grant Gibbons said that what the end of the era really means is that the Premier has signed us all up to be responsible for the damage the US left here. He noted that an estimation four or five years ago reckoned it would cost between $50 and $60 million to clean up the environmental hazards left here by the US.

Instead we acquired $11 million and Dr. Gibbons said that was because the Government ceased to continue negotiations as the previous Government had done.

"The PLP gave up too soon and did not give the struggle needed," he said.

Government backbencher Delaey Robinson pointed out that the agreement was one between Britain and the US.

"Bermuda was to all intensive purposes a pawn in this agreement. Moreover, Bermuda had nothing to say the agreement."

And Wayne Perinchief (PLP) added: "We are stuck between a rock and a hard place because we are bound by an agreement that we weren't a party to."

Mr. Robinson said that leading the people to believe that they had been shorted by the Government that did not hold out for a better deal was a red herring and holding out too much hope.

"Anywhere the US has had a base, they have not left money for clean-up.

"They (the United States) have said publicly over and over that they did not want to set that precedent and would not do so for Bermuda."

Mr. Robinson also called the Baselands issue an empty one.

But Mr. Burgess addressed the floor next and said: "He says issue of $11 million is an empty issue and he is absolutely correct that it will empty the pockets of future generations.

He said that all the Government secured in the treaty-closing deal was two years of travel expenses noting that the funds would not even pay for the bridge as proposed. An estimate for the cost of repairing the Long-Bird bridge was between $15 and $30 million, he said.

"I guess we should start building the bridge a third of the way out and ask the tourists to jump the rest of the way."

He also said there were numerous alternatives through which Bermuda could have been compensated for the remaining funds such as building a school if there was not cash available.

In the Motion to Adjourn, PLP backbencher Mr. Perinchief said the British should accept responsibility for the baselands clean up.

He said: "If we are a dependent territory of Britain and we are threatened by an environmental mess then it's the responsibility of the British. The white paper said they would assist in environmental clean ups."

Shadow Tourism Minister David Dodwell said Works and Engineering Minister Alex Scott should be given an Academy Award for the putting the best spin on a bad deal and he derided Delaey Robinson's claim that Bermuda was only a pawn in the game as the US and UK negotiated a deal.

He said Canada had been given $100 million in credit when the US vacated bases but Bermuda had only landed $11 million for the upkeep of Longbird bridge.

He said: "I would rather have $80 million in credit than $11 million in cash."

He said the PLP had wasted three and a half years since being elected in not getting developers in Morgan's Point.

He said: "When we left Government there were deals on the table. It points out their inexperience and their inability to close a deal."

Mr. Dodwell said the taxpayer will end up picking up the tab because of Government's failure to get more from the Americans.

Taking on Wayne Perinchief's claim that Bermuda should not try to get into a David and Goliath confrontation with the US Mr. Dodwell said: "Who won that? David. This Government could have been David."

He derided Government for going to the deal signing ceremony and then claiming the deal wasn't concluded and further concessions could come from the US such as help with a coast guard and regiment training.

Premier Jennifer Smith said that just because American forces had left the Island in 1995 it didn't mean that they had given up the lease.

She said the only thing the UBP had got out of the Americans was rocks and boulders for the airport breakwater.

She said: "I congratulate them on their rocks and boulders."

Opposition Health Spokesman Michael Dunkley said the Government were trumpeting their $11 million as if it was the best deal that could have happened yet earlier Ministers had boasted they would get the full $65 million cost of the baselands clean up.

"What we want to know is how it is going to be cleaned up. The private sector won't clean it up unless they get something in return. Is Government going to sell us down the river again?"

Telecommunications Minister Renee Webb said the baselands had been given to the Americans under a 1941 deal with Britain and therefore the issue had to be settled between the two.

She said the Bermuda and British Governments had not been successful in getting the Americans to pay up for what she branded "environmental terrorism".

She added: "It might be harsh but that's the reality."

She said the Americans had left a mess at other sites around the world and had not paid up.

"No one was able to get the US to move, it's pointless blaming this Government or the other Government or the UK."

She said she was surprised to hear Trevor Moniz say that foreigners were illegally buying up land in cahoots with lawyers and she said she had never come across this when she worked in real estate.

Home Affairs Minister Terry Lister recalled the ceremony he attended when in Opposition to mark the Americans leaving and was then subsequently shocked to find the UBP government of the time knew about the mess the Americans had made.

"The report on Morgan's Point was terrible, terrible. The UBP had this report. I am my colleagues stood waving and smiling and being polite as the Americans left with this mess left behind."

He said the $5 million given for the breakwater at the airport was the result of a bad storm.

Mr. Lister also raised the issue of Government travel expenses and pointed out the limo driver they used on the recent trip remembered ferrying the previous Government in the same manner.

And Mr. Lister said he had personally organised hotel accommodation to shave more than $200 off a hotel room rate to save Government cash.

Sports Minister Randy Horton defended criticism of an excess of officials going with athletes to games.

And he said he was looking to recruit Shaun Goater to a schools development programme to teach kids about what sacrifices were needed to get ahead while a Hall of Fame would honour those who had made a significant contribution to the community.