part of negotiations over the multi-million dollar clean-up of pollution on the old US Navy bases, it was revealed yesterday.

And US Consul General Robert Farmer said: "I acknowledge that there are still Base-related issues to be resolved between the United States and Bermuda.

"However, I firmly believe that the rare relationship shared by our peoples and governments will not fail us as we work to resolve these issues and other issues which may arise in the future.'' Mr. Farmer was speaking on his last-but-one official engagement before he leaves his post.

And he confirmed in a speech to Hamilton Rotary Club: "There will be three people down here in the next few weeks to review the bases and they will make a further report to the US government.'' US Consulate deputy principal officer Bruce Berton said later that US Department of the Navy officials would be visiting to get some "first hand experience'' of the problem.

He added: "The Defence Department has always maintained that the only thing they are obliged to clean up is any imminent threat to health or safety. They have always maintained no such threat exists in Bermuda.'' But he did not rule out a change of heart by the US over the issue. He said: "If the Senate chooses to take action beyond that, that is certainly their prerogative.'' Last night Finance Minister Grant Gibbons said: "This is certainly a promising step.'' The clean-up of the old bases has been a bone of contention between the two Governments since the US Naval Air Station and other military installations closed in 1995.

Oil pollution at has been found at the old Air Station in St. David's, now known as Southside, and at the former US Naval Annex.

Farmer denies having political preference: Page 2 MILITARY MIL ENVIRONMENT ENV