environmental clean-up on former Base lands, the Premier said last night.

The move comes just a few weeks after US engineers visited the Island to discover the extent of environmental problems at the former bases.

Government is locked in talks with US officials over the problems remaining at the former Naval Air Station and the Naval Annex.

The Island wants to see further clean-ups to remove waste left when the US pulled out last year.

On top of the clean-up, Bermuda would also like the original 99-year lease agreement for the Bases terminated. Talks are also addressing US Navy requests that Bermuda pays $140 million for "improvements'' to the Bases and the problem imposed when the Congress passed a law saying no further money should be spent once they were closed.

Earlier this year David Saul and Finance Minister Grant Gibbons met with senior US officials -- as well as President Bill Clinton -- to seek an agreement over the Bases.

Steady progress, said Dr. Saul, was still being made by both sides over the outstanding issues.

Dr. Saul said the US engineers were asked to visit Bermuda at the request of the US Government to draw up a report for the Pentagon, veryifying the extent of the contamination problem.

He added: "We have agreed that we will get a set of costings from our own data.

"We are attempting to get an overseas group to carry out a costing on clearing up the asbestos and oil that has seeped into the ground from various tanks that were buried. There is steady progress on the talks, but we feel the American Government has a moral obligation.''