being moved to the former US Naval Annex was not destined for the ocean floor.

Recently Government has been shifting containers of asbestos -- which can cause deadly asbestosis if inhaled -- from its Bailey's Bay quarry to the Annex.

Fears were raised that Government was about to press ahead with its original plans to dump the material at sea.

But last night Mr. Gibbons said the containers were being moved for several reasons: More and more asbestos was coming into the quarry and space was running tight; Many of the containers also need re-packing and could not be shifted east because heavier loads were involved and no bridge was strong enough; and The Annex has deep water and if the asbestos is taken aboard a ship can easily tie up at the former base.

Earlier this year Government bowed to local and international pressure brought by the environmental group Greenpeace and deferred plans to dump the asbestos in water 18 miles off Bermuda.

Through Governor Lord Waddington, the British Government was also approached to help find a site for the asbestos.

And talks have started with a waste disposal site in the US which might take the substance, without incurring a long-term financial liability for Bermuda.

There are now about 200 containers at the quarry -- and it is estimated hundreds more could be filled with asbestos from the former US bases, although Government is trying to negotiate with US authorities over its disposal.

Mr. Gibbons said: "Asbestos is coming into the quarry daily and there is limited room. The initial plan was to move the containers to the Annex.'' He said a barge was at the Annex but added: "It was there ready to dump the asbestos at sea, but we are not doing that. The barge was there last weekend when the US Navy ships were off Bermuda.

"The plan was to dump the asbestos at sea, but that has been deferred. The barge is at the Annex, but it is not being used.'' Last night Kenny Bruno, a spokesman for Greenpeace, said he was happy with Government's explanation for moving the asbestos.

He added: "We wrote to the Environment Minister Pam Gordon last week and also spoke to Leo Mills, the Cabinet Secretary, offering our help in finding an alternative to dumping at sea.

"In order to do that we would need to work closely with the Bermuda Government,'' added Mr. Bruno. "So far they have not taken us up on our offer, but hopefully they will.'' MILITARY BASE MIL