operations of the Civil Air Terminal, Premier the Hon. Sir John Swan said yesterday.

Sir John told the House of Assembly that a House-Senate Conference of the US Congress had agreed no Department of Defence funds were to be spent on the US Naval Air Station after September 1, 1995, and the Secretary of Defence was to submit a plan to terminate operation of the Base by next March 1.

The Navy operates Bermuda's Civil Air Terminal.

"The Bermuda Government now has a firm timetable within which to plan the takeover of responsibilities from NAS Bermuda,'' the Premier told the House.

"I have no doubt...that the Government and people of Bermuda will rise magnificently to the challenge and to the opportunities presented by this series of events.'' Government planned to continue talks with the Supreme Allied Commander, Atlantic in Norfolk, Virginia to determine how the change would be implemented and what the implications were for the Island.

Government would also explore the options available when funding ended in September, 1995. Talks with the US and United Kingdom and the North Atlantic Treaty Organisation would continue.

And Government would find out whether the National Aeronautics and Space Administration (NASA) would continue to have a presence at Cooper's Island.

"Maximum emphasis is to be placed on the training of Bermudians to take over those various responsibilities now carried out by US Navy personnel,'' he said. "This will necessarily mean that the career opportunities for Bermudians will be expanded in a way not previously imagined.'' The initiatives would ensure the pull-out "will not cause significant economic hardship to Bermuda''.

Sir John later said he would appoint a committee in the coming weeks to deal with Base-related questions, particularly as they relate to the takeover of its operations.

His yet-to-be scheduled talks with the Supreme Allied Commander for the Atlantic are expected to explore a possible cost-sharing contract between the US, the UK, Bermuda and NATO.

NATO has already indicated to him that it would like to retain some sort of base in Bermuda for use in times of tension and war.

But any cost-sharing arrangement would depend on the host nation -- in this case the US -- saying there was long-term value in maintaining some kind of presence in Bermuda.

NATO officials have said any initiative in that regard would depend on the Supreme Allied Command for the Atlantic (SACLANT).

Last night, Sir John said he would concentrate his diplomatic efforts on a Defence Department review of the base which Congress wants by March 1, 1994.

He said the military may still see a role in Bermuda that could open the door to a shared-use agreement.

The US Congress votes on Monday on the 1994 Defence Bill which includes the Conference Agreement clauses to shut the base down.

One of those clauses includes an apparent opportunity for Sir John to explore cost-sharing. It states: "The Secretary of Defence may provide support for airfield operations at Naval Air Station Bermuda after September 1, 1995, except that any such support shall be provided only on a reimbursable basis.'' In the House of Assembly yesterday, Finance Minister the Hon. David Saul gave some indication how much the "wind down'' of US and Canadian bases could affect Bermuda.

Dr. Saul stressed Bermuda could not afford to leave the bases, when they are finally empty, as open space. He said they must earn revenue to cover that lost with the withdrawal of the forces.

He said that the Daniel's Head wind down would rob Bermuda of some $3.5 million, which had been spent annually over the past 30 years.

He added that the US bases would mean the loss of tens of millions of dollars to the Bermudian economy.

Dr. Saul said: "It would be wonderful to have open space. Although there will be access to beaches for locals, we still need some cash flow from these areas.'' A committee looking into future roles for the bases handed over suggestions to the Cabinet last month.

The Civil Air Terminal at Kindley Field is two acres of land including the airport. The Minister commented: "This will be manned by the US taxpayer for at least two more years.'' But, he added, that Bermudians had already been trained to man the airfield when it is finally handed over to the Government.

Dr. Saul also stressed that when the airport becomes a Crown Corporation it will still be under Government control and not privately owned.