the first time in six months.

Management and Technology Minister the Hon. Grant Gibbons described the meeting in the Cabinet Building as "cordial and productive''.

Many issues remained on the table and "we've tried to focus on a couple of issues where we think we may be able to make progress'' before Base Commanding Officer Capt. Tim Bryan leaves the Island and the Navy on August 1, Dr.

Gibbons said.

The US Naval Annex in Southampton is closed and the US Naval Air Station at St. David's is to close on September 1.

A full negotiating session, called a plenary meeting, on the return of the lands had not been held since December, when Bermuda delivered a document detailing its negotiating position.

Both sides have taken hard lines, with the US demanding $140 million in compensation for "improvements'' to the land and Bermuda calling for major environmental clean-ups. No movement has been reported from either side to date.

In another major difference, the US wants the original 99-year rent-free lease for the Base lands to continue for the NASA tracking station at Cooper's Island, while Bermuda wants a new deal drawn up.

Deputy Governor Mr. Peter Willis sat in on the meeting on behalf of the United Kingdom, which Dr. Gibbons said has been "very supportive'' of Bermuda's position in the talks.

"The UK Government has made some representations on our behalf which I think will help the process as well,'' he said.

Capt. Bryan hand-delivered the latest US position to Premier the Hon. Sir John Swan on April 28 and later told The Royal Gazette his government had not budged from its earlier stance.

The Americans did not agree with a $480,000 environmental study commissioned by the Bermuda Government to back demands for major clean-ups at the Bases, Capt. Bryan said.

On August 1, Capt. Bryan is moving to Ohio and a job in the private sector.

Talks are to continue with a Navy representative from Norfolk.

In a major milestone, air operations were successfully handed off from the Navy to Bermuda and its contractor Serco Aviation Services Inc. on June 1.