New US Consul General Larry Owen yesterday held out hope of a deal in Bermuda's battle to win compensation for a clean-up of the old American bases on the Island.

Mr. Owen said: "The discussions are certainly on-going. It's my hope that we can reach an equitable result which is satisfactory to both parties.'' But he added: "I haven't been here long enough to give an assessment of the probability of that happening -- but that's certainly our goal.'' Mr. Owen was speaking after he and wife Faylene arrived to take up the post of official US representatives to Bermuda.

He said: "I wouldn't want to characterise it -- certainly my job is to represent the people and government of the US.

"But when you can get a win-win situation, you're better off -- and that's generally been my style, in both business and in government.'' He cautioned, however: "Whether a meeting of minds is possible, I can't say at this stage.'' Mr. Owen said the baselands row was his top priority as he took over the role vacated by Robert Farmer earlier this year.

He added: "The only pending government issue of significance is the continuing issue with respect to the military bases.'' But he said he hoped to use his office to strengthen economic and trade links with the Island -- and cementing an old friendship.

Mr. Owen said: "Number two on my agenda is where I can be helpful in promoting trade and economic exchange, I want to do that -- whether it's in the financial sector, tourism, or the new e-commerce project the government here and the private sector is pursuing.

"The philosophy of the Clinton administration is where we can find economic partnerships where both sides can win, that is our goal.

"One of the president's instructions to all his overseas representatives is to promote that kind of thing.'' Baselands clean-up Mr. Owen added: "When you have friends like Bermuda and the US -- and we've been friends for a long time -- sometimes they neglect that friendship.

"I want Bermuda to know we value that friendship and I intend to emphasise that wherever I can.'' Bermuda and the US have been at loggerheads since the US Navy weighed anchor and steamed out of Bermuda in 1995 -- abandoning its St. David's Air Station and Annex in Southampton.

But US forces left behind an environmental nightmare of pollution -- including tons of oil, potentially deadly asbestos and poisonous heavy metals.

At the US Naval Annex -- now known as Morgan's Point and earmarked for a major tourist development -- up to half a million gallons of fuel is thought to have leaked from underground tanks into the underlying cave system.

The official US position is that it will only pay for clean-ups where there is an "imminent threat to health and safety'' -- which it insists is not the case in Bermuda.

US government surveys backed that stance -- but an independent Bermuda probe rubbishing the US findings was later delivered to American officials by the then-United Bermuda Party Government. Lawyer and businessman Mr. Owen -- like his predecessor Mr. Farmer -- was a major Clinton fundraiser in his home state of Michigan, but has no previous diplomatic experience. He was contender for the Democratic gubernatorial nomination in Michigan last year, but was unsuccessful.

Mr. Owen, however, has served on a host of governor's boards, especially in the field of healthcare, and on other community and professional boards, committees and commissions.

He said: "I have had some success in business and quite a bit of public service experience.

"I'm now ready for additional challenges. I'm looking forward to spending this time in Bermuda, learning about the Island and having the chance to really make a contribution which benefits the people here, as well as my own country.

"Everywhere I've been, I've had tangible success. I like to solve problems and fix things. I'm here to see what needs to be done and finding ways where I can solve real problems.''