Unofficial sources in Brussels and Bermuda indicated the United States' decision to shut down the US Naval Air Station gave the cash-strapped Alliance an excuse to drop the multi-million dollar job.

In a meeting last summer in Brussels, a top NATO official warned Premier the Hon. Sir John Swan that the alliance would have trouble agreeing to the Bermuda work.

Adm. Herpert van Foreest, in charge of NATO infrastructure, told Sir John: "I can give you no guarantee at all that within this alliance, with 16 shareholders having the right to say `No', that there will be consensus to do that paving and lighting work.'' Yesterday, Premier Swan said he was aware the job was now on Bermuda's plate and that accounting for it was part of Government's base takeover plans.

"It will have to be done,'' he said. "But it won't be something to be done immediately. It can be phased over two or three years.'' Sir John's indication that lighting replacement and paving was not an immediate priority was supported by base commander Capt. Tim Bryan, who said he was unaware of any problems with the current lighting.

Lighting replacement and paving are just one of the expensive bills Bermuda will have to face in the near future.

Management Minister the Hon. Grant Gibbons said Government would have to fence off the Airport from the rest of the base lands. The cost would run between $3-$4 million.

The figure is one estimate that has emerged in Government work on the takeover of the military bases.

Earlier this week, Bermuda and US representatives met for their second plenary session since talks began last month.

Sources for both sides said the meetings were still at a level of information exchanges and not actual negotiations.

"We all agree we're in an education phase,'' Capt. Bryan said. "We're moving toward identifying issues and concerns the Government might have.'' One source said: "Negotiations are the wrong word for this right now.

These are discussions. Negotiations mean bargaining and that's not happening yet.'' Premier Swan said one of the key aims of the current schedule of meetings at both the plenary and committee levels was to get control of the complicated process and the time demands for the successful transfer of the base lands.

At Monday's meeting at the USNAS, Sir John introduced Mr. Ken Stubbings, who as new director of Management Services will be the key coordinator for Government's efforts within the Civil Service.

Mr. Stubbings' work will focus on setting up a team that will do nothing but work with the various committees appointed to handle the base issue.

The meeting, which was hosted by the Americans, saw heads of committees report on their work over the past month. These included the committee on air operations, which will handle all issues related to Airport takeover, and the the infrastructure committee, whose report this summer will give Bermuda an understanding of just what buildings, lands and facilities it will be taking over.

One of the issues that emerged in Monday's discussions was the possibility of US personnel in key operations remaining in Bermuda after the US departure.

It was decided such personnel matters would be a matter for ongoing discussions.