clean-up are still on course -- despite apparent signals that the US Navy has washed its hands of the issue, according to Premier David Saul.

Recently Shadow Environment Minister Leon (Jimmy) Williams received a letter from the US Navy about getting rid of asbestos on the base lands.

The letter, which was originally sent to Kenny Bruno of Greenpeace, said the transfer of former Navy property to the Government of Bermuda had been completed.

It adds: "The Navy has no authority to direct the actions of the Government of Bermuda with respect to the management of that property.

"We are confidant that the Government of Bermuda will take appropriate steps to address the environmental concerns of its citizens.'' Mr. Williams said he believed the letter signalled the end of negotiations between the Bermuda and US Governments.

"The letter shows that the US Navy has nothing else to do with the base clean-up and it is now the responsibility of the Bermuda Government,'' said Mr. Williams.

The two Governments are locked in talks about a demand from the US that Bermuda pays $140 million for improvements to the base lands and over Bermuda claims for a future clean-up of waste left by the US military.

But on Friday, Dr. Saul said when the Navy pulled out Congress ruled that no more cash could be spent on bases abandoned by the US.

"The Navy has to write such a letter because that is what they are required to say,'' said the Premier, who met President Bill Clinton earlier this year to discuss the base lands issue.

"The discussions are out of the Navy's hands and this letter does not impinge on those discussions,'' added Dr. Saul who said negotiations were still on-going. "The Navy has restated what it can and cannot do by law, but we are having discussions with a very old friend of Bermuda and we are reasonably certain that the US Government will help us out.''