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Base talks `A great opportunity'

negotiate the US withdrawal from the bases, Opposition Leader Mr. Frederick Wade claimed yesterday.

But Premier the Hon. Sir John Swan charged a combined negotiating team would lead to the "greatest chaotic negotiations one has ever heard of''.

The dispute came as MPs began a lengthy debate into how Bermuda should approach the talks due to start later this month.

The debate was sparked by Mr. Wade's motion "that the Government take all immediate steps to ensure that the closure of the US Naval Base does not cause Bermuda great economic or other hardship''.

A section on the training of Bermudians for airport duties had to be withdrawn under House rules, because it involved spending Government money.

Mr. Wade said Britain had given the US the Base land in 1941 to "entice'' it to enter the Second World War.

The Base's original purpose had been to help the US to protect the Americas.

It had helped protect America until the break-up of the Soviet Union.

Britain's payment for the land, along with property on other islands, was in warships, he claimed.

Under the lease agreement, said Mr. Wade, the US did not have to use the land for anything after it closed the Base.

He said the PLP had been ridiculed for its consistent argument that the price paid by the US to Britain was insufficient, and that rent should be paid. The land was ten percent of Bermuda's surface, he stressed.

"We still contend that once you look at the rents paid to other jurisdictions, you will readily admit that Britain sold us out. And when we accepted the Airport payments as sufficient, we sold ourselves out.

"We ought to have been able to benefit a great deal more from the presence of the Base.'' He was grateful the Government and other Bermudians had "seen the light'' regarding the value of the Base land.

A US Congressman had been "flabbergasted'' to learn no rent was paid. Mr.

Wade mocked the Premier's talks with US officials over the Base during the election campaign. The PLP leader said the agreement was between America and Britain -- Bermuda could only act as a delegate of the UK.

"The Premier simply used the Base closure matter as one to give him an election edge.'' Before the election, Government had claimed $100 million would be lost from the economy when the Base closed. Now its claim was $30 million, said Mr.

Wade.

The US could give back the land with no charges for the "improvements'' it had made in the form of buildings and other developments.

Or it could give the land back after removing the improvements. It could even close the Base and just keep it in mothballs, Mr. Wade said. One thing was certain. "The need for a Base in Bermuda is gone. It's gone.'' He did not believe, like some Bermudians, that America was planning to go into Bosnia and needed the Base for that operation. Nor did he believe the threat from Russia would return.

"The chances are that the US government are going to give us back the land in some form or other. That will come down to the question of negotiations.

"This will be when the skill of the Bermuda team comes into play.'' Bermuda wanted a "national team'', he said. Players to be fielded from the Government side were "out of shape'' and not sufficient on their own.

PLP politicians had experience from constitutional negotiations with Britain.

They had also negotiated with the Bermuda Government "and they're tricky too''.

Experienced, full-time union negotiators were also in his party. The PLP was seeking to bury political hatchets, and for the first time suspend its role as Opposition, in a united negotiating team.

The goal of negotiations must be an orderly withdrawal at no cost to Bermuda, he said.

Environmentalists also wanted the NASA operation moved to a place where it did not interfere with birds.

Government had insulted Bermudians over the years by referring to "islands to the south'', claiming they could not do anything right, when in fact the Bahamas ran four airports and Jamaica ran two.

A young man had told him the operator of a drug cartel in Colombia oversaw the arrival of one plane an hour.

Bermuda only had to deal with 13 a day, he said. Bermudians could be trained to do the job themselves, but Government was talking about selling the Airport to an English firm.

"We ought to be prepared ourselves, not for it to be handed over to more foreigners.'' There was a delay before the Premier's speech while his alternative motion was brought into line with regulations by the Speaker.

Sir John proposed: "That the Government continue to take all steps necessary to ensure that any closure of the US Naval Base does not cause Bermuda great economic or other hardship, and take all appropriate steps to ensure that Bermudians are prepared to assume the ultimate responsibility for the operation of the civil air facility following such closure''.

Government felt it right to include the statement on training Bermudians after the Opposition was forced to withdraw it, he said.

He stressed the unsophisticated nature of Bermuda at the time the Base was set up, and the contribution made by the Americans to the Island's quality of life. He stressed the protection the Base had given Bermuda, and the Island's role in protecting democracy by hosting the military.

He had been assured by the Base commander that the US wanted to do the right thing, leave honourably and maintain its relationship with the Island. Bermuda still needed its links with the States, the Premier said.

The Island had a moral obligation concerning the Base. It was the "height of hypocrisy and dishonesty'' to suggest rent should be paid.

He stressed new land created by the Americans. And he commended Bermudians who had sacrificed their homes for the Base to be built.

If the US Navy were staying he would back its right to do so, he said. He defended Government's negotiating ability, pointing to the tax treaty agreed with the US. The Americans had complimented the Bermuda team on its "tenacity and determination''.

He had told the Base commander that Bermuda wanted the land back without conditions. If the land was returned on anything other than a freehold basis, it could not be used properly.

Government, through new committees, was looking into the whole subject. For a while, he had considered the "unusual'' step of forming a negotiating team with the PLP. But Mr. Wade's speech had convinced him otherwise.

"As I sat here today and listened to him stating what would be their position on these negotiations, and how they would go about them, and what they would demand, I realised that what we would end up doing is having a negotiating team within the national team.

"We would produce the greatest chaotic set of negotiations one has ever heard of. The national plan, which is for the new Bermuda, would be dead.'' The recovery of the Base lands was a unique opportunity, probably greater than that enjoyed by any other country.

He was confident of a good arrangement being worked out, that would enable Bermuda to grow "physically and hopefully intellectually'', and perhaps gain income lost in the recession.

He rejected Mr. Wade's statement that the closure of HMS Malabar was "more symbolic than real'' in its implications. The British commander was also the NATO commander, and many crewmen had visited the Island from NATO ships berthed at Malabar.

Sir John said Malabar had been "significant'', and it was wrong for Mr. Wade to reject its importance so glibly.

He said it cost the British less than $1 million a year to run it, but Malabar's contribution was "very, very great''.

"I do not treat the departure of Malabar lightly,'' he said.

Sir John, however, said Bermuda could stand to benefit from the Bases' closures.

Business opportunities -- particularly in financial services -- could open up.

"We stand on the edge of a great new frontier of opportunity.'' It was important that Bermuda grasped it.

Malabar would probably go back to the West End Development Corporation, said Sir John.

But much thought was needed on what to do with the other Bases.

Sir John said the British Government should be thanked for its pledge of help with negotiations with the Americans.

And he had "every faith'' American would want to continue good relations with Bermuda.

Shadow Finance Minister Mr. Eugene Cox described Mr. Wade's speech as "one of the best'' he had ever made.

He went on to stress the potential of the US Naval Air Station land, and how Bermuda could capitalise.

The Civil Air Terminal had to be a "front line and gateway'' to opportunities for the future.

The air station could provide the chance of earning foreign exchange.

But Mr. Cox said he was disappointed he had not heard more details about Government's Base committees.

Government also failed to talk enough about acting in Bermuda's best interests.

It was time for Bermuda to be put first.

Mr. Ottiwell Simmons (PLP) claimed the Base agreement followed a meeting between the Second World War leaders from America, Britain and Russia.

The lease would run for 99 years, it was agreed.

Surely there was a penalty clause if one party breached that agreement, as the US was now doing? Mr. Simmons said Bermuda must be entitled to some compensation.

Government needed to know the value of its asset -- the Base -- and negotiate hard.

Mr. Simmons said America had enjoyed a "free ride'' over the Bases.

Bermuda should be able to turn all the Bases now to its economic advantage.

One idea was for fishermen -- whose industry had been devastated by Government -- to be allowed to set up a cooperative on a plot of land.

Mr. Simmons said countries throughout the world were getting together and forming markets to suit their own interests.

The Europeans had formed the EEC, while the Americans had launched NAFTA.

It was time for Bermuda to find its own "niche''.

Finance Minister the Hon. David Saul immediately sought to shoot down Mr.

Simmons' jibe that Americans had enjoyed a "free ride''.

Bermuda had benefited tremendously from the Americans' presence.

In 1992 alone it reaped a $50 million windfall from the US Base.

And Dr. Saul pointed out over 102 Bermudians were employed there, with up to $102 million being spent in salaries.

Landlords also benefited by over $12 million in rents.

Bermudians had also enjoyed -- for free -- the fire and rescue services, and meteorological services.

These were paid for by American taxpayers.

When the Americans left the Base, Bermuda would have to provide the services.

This threw up a major challenge.

Dr. Saul said the Americans would also leave behind $300 million worth of equipment -- including a fire engine. This would be an important part of the Base discussions.

Dr. Saul stressed it was for Government to handle the Base negotiations.

But it was open to all Bermudians to suggest ways of using the Bases, including the USNAS, the Annex and Daniel's Head.

The possibility of an East End Development Corporation -- along the lines of Wedco -- could be discussed.

The Hon. John Stubbs (UBP) said Bermuda faced enormous challenges and opportunities -- without parallel in her history.

Dr. Stubbs described the American decision to pull out of the Bases as a "panic reaction'' following the controversial Sam Donaldson programme.

The TV report had described the USNAS as something akin to a "Club Med''.

Dr. Stubbs went on to outline the changing nature of world politics.

And he warned of the need for America to keep up her guard -- despite the end of the Cold War.

The remainder of the full debate will be carried in Monday's newpaper.

The Hon. Sir John Swan The Hon. David Saul Mr. Frederick Wade.