put talks related to the recent closure of the Daniel's Head base on temporary hold, Premier the Hon. Sir John Swan said yesterday.

The Premier said he sent a letter of congratulations to Liberal Mr. Jean Chretien, who won 178 of the 295 seats in the House of Commons to replace Ms Kim Campbell as Prime Minister. Her governing Progressive Conservative Party was reduced to two seats.

"In our democracies, all political parties depend upon the support of the electorate,'' Sir John said. "The Canadian people have spoken, and it is reflected in the results.

"All I can do is wish the new Prime Minister Godspeed and good fortune.'' After this year's closure of the Canadian Forces Station at Daniel's Head, Government began talks through then Defence Minister Kim Campbell about repayment of advance rent the Canadians paid the West End Development Corporation for a 32-year lease of housing at Boaz Island.

Under the terms of the lease, closure of the base meant about $10 million of the $11 million the Canadians put up was to be repaid by Bermuda.

"The objective was first to reduce the repayment amount, and then to have the time for repayment stretched out,'' Sir John told The Royal Gazette .

Talks were initially delayed due to the general election call in Canada. Due to the change of Government, "obviously they will need to get themselves up to speed and get their respective Ministers named and get themselves focussed,'' Sir John said. "It will just take a while.''