Med problem is a great Christmas present for Bermuda, and especially for St.

George's. It is remarkable just how quickly Government has moved to find an operator for the hotel once it was able to get the building back from Club Med. It was never very clear why the very troubled Club Med chain continued to hold on to the closed hotel in the face of constant efforts by Government to have it returned.

We hope Government and the Town of St. George will do everything possible to encourage the Camberley Hotel Company to go ahead with redoing the old Holiday Inn. The Minister of Tourism, David Dodwell, has said the hotel group's concepts "fit perfectly with Bermuda and St. George's needs''.

Camberley received a great deal of praise for the sensitive way it redid the legendary Algonquin Hotel in New York City.

The Monitor studies suggest the only way Bermuda can go is to upscale markets and to that end we are already dropping the worst of the ill conceived "Let Yourself Go'' advertising campaign which should never have been accepted in the first place. Camberley specialises in upscale hotel management and in turning around under-performing hotels. Both concepts would be welcome at Club Med. Just how Camberley would propose to redevelop such a poorly conceived and designed hotel will be of interest in the future. It can be done but it will not be easy with this particular structure.

Club Med, as it does with its resorts, isolated the hotel from the St.

George's community and Mr. Dodwell has now made the very welcome statement that Camberley plans to blend the hotel into its surroundings including the forts and historic St. George's.

As one small example, we have always believed that even under the management of Holiday Inn, the hotel would have been better served by a name which went with its operation in an historic town.

There is one disturbing aspect to these arrangements. We were unsettled to note that three Government Ministries are involved in the dealings with the hotel group. One group of civil servants is bound to tie this up in red tape, if only for political advantage.

This hotel needs a solution. St. George's needs a solution. We urge that all the arrangements be turned over to an "honest broker'' to get the job done.

This is the best Christmas news the East End could get, especially when it is coupled with the new plans for the Town itself and the great progress being made toward a renewed St. George's.