operators, US courts would continue to hold Bermuda liable for any health fallout caused by asbestos buried in American landfills.

The Washington D.C. firm of Garvey, Schubert and Barer, which specialises in environmental law, was retained by Environment Minister Pamela Gordon in the wake of a proposal by Michael Stowe of International Strategic Management, who claimed he could get rid of nearly 165 containers of asbestos in a Mississippi landfill without risk of future lawsuits.

Mr. Stowe's proposal came in the wake of international uproar over Government plans to dump the containers in the deep ocean off the Island.

"(Legal) opinion clearly states that as the generator of the waste, Bermuda could be held legally liable for all or a portion of the clean-up costs for natural resource damage, and that we could face a potential common law suit if the material were released and caused health or property damage, even if we had nothing to do with its release,'' Ms Gordon said in a written statement released yesterday.

Despite assurances by landfill operators offering indemnity against future health claims, the guarantee of indemnity is only as sound financially as the company issuing the insurance, she said.

"If the landfill operator or insurer were to go out of business, become insolvent or simply have inadequate coverage, the indemnification would not protect Bermuda.

"Additionally under US law, the US Government has the right to pursue remedies against any potentially responsible party, including the generators of the waste,'' she said, adding that the advice further reinforces Government's resolve not to use commercial landfill sites.

On January 7, local businessman Michael Marshall, in partnership with Dennis Pamplin, offered to encase asbestos in concrete and ship it to a landfill in South Carolina. That proposal however, made no provision to protect Bermuda from future liability.

The next day Mr. Stowe announced his plan to ship asbestos to a high-tech landfill in Mississippi, telling The Royal Gazette : "We are in a position where we can absolve the Bermuda Government of all liability.'' Ms Gordon reacted cautiously to both plans, saying neither adequately addressed the issue of indemnity and she challenged the businessmen to prove their claims. Messrs Stowe nor Marshall were unavailable last night for comment.

Government favours dumping the cancer-causing asbestos at sea because it is seen as the safest and most cost effective solution; once in water asbestos is rendered inert.

The plan has been stymied by an outcry from Greenpeace, which has threatened to campaign against sea dumping and disrupt the operation should it go ahead.

Greenpeace's threats came despite British assurances the dumping is legal and the London Convention on marine pollution is set to make exceptions for smaller island jurisdictions to resort to sea dumping.