Air Station is expected to cause a stormy debate in the House of Assembly.

Premier the Hon. Sir John Swan yesterday described the Base closure as producing the "most significant challenge Bermuda has faced since the Second World War''.

Sir John insisted on taking the matter to the House for debate "so that the issues can be properly aired and the public better informed.'' The Premier returned from Washington this week after discussions with the US Government over the Base, which looks set to close soon after September 1, 1995.

He said: "I believe the closure of the US Naval Air Station is perhaps the most significant event in our recent history and one which presents us with a formidable challenge.

"At the same time we are faced with the daunting task of assuming responsibility for operations at the Airport, we are also challenged to find ways to compensate for what is likely to be a loss of more than six percent of our Gross Domestic Product caused by the withdrawal.'' During discussions with the US Navy's top officer Admiral Frank Kelso and NATO's Supreme Allied Commander for the Atlantic Admiral Paul Miller, the Premier was told that Bermuda no longer has a role to play in US or NATO military thinking or planning.

He said: "Simply put, September 1, 1995, is the date certain upon which US military presence in Bermuda will cease and, unless in the meantime there is a dramatic change in world affairs, there is no possibility of a continuing US or NATO military presence at the Naval Air Station in Bermuda.

"Our discussion with both Admiral Kelso and Admiral Miller were cordial and frank, but in the end it became clear that NATO doctrine has undergone a radical change in light of the reduced threat and stringent constraints on defence spending.

"This has caused military planners to redirect their limited resources and to make better use of new technology.

"Those forces which remain will, in future, be mobilised to meet specific threats in a way which will make the roles of bases such as Bermuda far less relevant.

"All this means that Bermuda is of no strategic importance to the United States or to NATO on a continuous basis.'' During the meeting Admiral Miller assured Sir John that the drawdown of personnel from the Base would be gradual to minimise the impact of the withdrawal.

Government has also approached the United Kingdom Government to determine what role it will play in the months ahead, which will be critical.

The Premier intends to establish five committees to look at how the land will be used and how the airport will be operated.

He said: "The work of these committees will be of critical importance to Bermuda's future and I am therefore determined to provide them with whatever resources are necessary to enable them to carry out their responsibilities effectively.

"It would be wrong of me to underestimate the formidable challenges which face us.

"Indeed this may well be the most significant challenge Bermuda has faced since the Second World War. The economic, social and infrastructural impact this will have is immense.'' But the Premier added that he believes the closure could have positive effects by allowing Bermuda to move in new directions.

He said: "I firmly believe that Bermudians possess the vision and ingenuity to meet the challenges ahead and to find effective ways to provide alternative revenue sources to allow the economy to grow.

"This process is going to require every skill we possess. It is going to require forward thinking, innovative approaches and the competent handling of a myriad of details.

"If we are going to succeed we must all pull together much as we did in the wake of Hurricane Emily.

"We must also be flexible, keep our minds open to all new opportunities and have the wisdom and courage to do what is right for Bermuda and secure a prosperous future for our people.''