prepare a case to show Bermuda's importance to NATO.

A "private'' meeting fuelled rumours that the Royal Navy base will be axed by the British Government in the near future.

Britain has announced there will be a number of rounds of cuts in defence but so far HMS Malabar has not been mentioned.

Sir John, Delegated Affairs Minister the Hon. Sir John Sharpe and Cabinet Secretary Mr. Leo Mills broke off from a guided tour of the base's facilities to speak privately to base Commanding Officer Cdr. Robin Bawtree.

After the meeting both the Premier and Cdr. Bawtree stressed HMS Malabar's importance to NATO and Bermuda.

It was the first time in Sir John's 11-year premiership that he has made an official visit to the base.

He said: "The base plays an important part in the affairs of NATO and, with all the talk of downsizing and cutbacks, we are taking a broad view of the closure of the US Naval Annex.

"There is a possibility that I will be speaking to NATO and I wanted to look at how the base serves NATO. It is obviously important.'' Cdr. Bawtree said: "We tried to show our role today to the Premier and he will stress that to NATO when he meets them.'' Since the downsizing of the US Navy Annex, HMS Malabar has been dealing with many more ships.

Cdr. Bawtree pointed out that visits have included British, American, German and Belgium battleships. An American ship arrives this weekend.

He said: "This was an opportunity for the Premier to see what we do here. He has not been here over his time as Premier.'' HMS Malabar has 14 uniformed personnel and 12 civilian workers including a number of Bermudian workers.

Sir John said: "We want to make sure that we maximise whatever opportunities are available if we face cutbacks. Hopefully any cutbacks will not affect anyone including the small complement of locals who work here.

"The important thing is that Malabar seems to be in good shape as a facility.

It is serving a large number of ships.

"It provides Bermuda with a lot of hidden revenue particularly when the ships come into port and the crews spend money in the community.'' Sir John Sharpe added that the base also benefits local firms in providing business for them.

The tour included looking at operations centres, stores, workshops, the docks and leisure facilities including new tennis courts laid out by the West End Development Corporation.

The Premier had an opportunity to meet the Royal Navy personnel and the local workforce around the base.

Recently Cdr. Bawtree discounted rumours of an imminent closure of HMS Malabar following British Government defence cuts.

Yesterday he said: "We will continue to operate like we have for the past 50 years providing facilities, back up and fuel for ships that come here.

"There has been a financial review and everything has come under scrutiny but as far as I am concerned Malabar continues as normal.'' THE HAND OF FRIENDSHIP -- Commanding Officer of HMS Malabar Cdr. Robin Bawtree greets Premier the Hon. Sir John Swan outside the base. They are watched by Delegated Affairs Minister the Hon. Sir John Sharpe.