the Wor. Henry Hayward said last night.

Representatives of the French resort company are interested in meeting with town residents, perhaps in the next seven to ten days.

The news came on the eve of a deadline Government handed Club Med to take action on the hotel or give up the lease for the public land on which it stands.

Works and Engineering Minister the Hon. Leonard Gibbons has said Government is ready to file a Supreme Court writ next week and get the land back. Earlier this month, Government refused a request from Club Med to extend the March 31 deadline for taking back the St. George's hotel.

"There is a party that is interested'' who approached Club Med's broker, Mr.

Hayward said last night.

While negotiations were underway, he said, "it's just at the inquiry stage now. I hope it will go on to serious interest''.

The town mayor would not identify the prospective buyer, except to say they were "quality people'', who operated other hotels overseas.

"I'm sure it is not a stalling technique,'' he said in response to concerns from one resident. "The buyers are very serious.'' He did not see any immediate need for Government to extend its deadline. There was no reason why the writ should interfere with the possible sale of the 300-plus room hotel, he said.

Mr. Hayward said interest in Club Med was heightened when word spread recently about the new heritage plan for the old town. A public meeting about the plan was held at the Penno's Wharf cruise ship terminal last night.

Mr. Hayward told about 150 people who attended the meeting that St. George's Secondary School could be turned into a recreational facility for youth and senior citizens.

Still officially earmarked as one of five middle schools in Government's restructured school system, St. George's Secondary is now widely expected to instead be closed.

Education minister the Hon. Clarence Terceira has said he wants to use the Roger B. Chaffee School on the US Base as the east end middle school.

Town residents at the meeting described facilities for use in St. George's as "pathetic''. An April 12 meeting is planned to get the views of youth on the town's future.

The town heritage study by SGK Urban Design Associates and LBR International Inc. is to be completed this summer.

Last night's public meeting was the second of three.

Residents expressed concern that stores they relied on for household needs were being replaced by T-shirt shops. They did not want to sacrifice the character of the town to attract visitors.

On the subject of congestion, Mr. Hayward said the town wanted "to work towards getting rid of our second cruise ship''.

Residents also wanted improved signage, clean up of trouble areas for crime, and return of the town's mini bus service.