bases to Bermuda, the US Naval Air Station commanding officer said yesterday.

Capt. Tim Bryan made that point during the first face-to-face talks on the Base shutdown between Bermuda and the United States this week.

"We must move our people out of here,'' Capt. Bryan told The Royal Gazette yesterday.

"I don't foresee any claim to the Naval Air Station lands or the Annex. We're trying to divest, to reduce our costs. When you hold onto these properties there are real costs.'' The talks are expected to enter into formal negotiations after the US Government formally announces the planned closure of its Bermuda bases. That announcement is likely to be made in about two weeks, sources said.

Premier the Hon. Sir John Swan said he would soon make final appointments to five committees overseeing aspects of the Base closure, including the important committee negotiating directly with the Americans.

Capt. Bryan said he will work with a team of about ten officers, two of them based at the USNAS.

Monday's informal meeting at the Cabinet Office was characterised by unanimity of views on the intended spirit of the talks and their aims.

Premier Swan said he wanted them to be cordial and conducted "with a determination to maintaining a strong cooperative spirit and to the ongoing strengthening of our historic relationship''.

Capt. Bryan, who will head the American team, said he wanted to leave Bermuda "with a good taste in its mouth as it looks back on 50 years of the United States military here''.

On the more pragmatic side, the Americans and Bermudians said they want to ensure a smooth transition of Base properties and operations to Bermuda.

"I want to ensure when we leave that no pilot from USAir or Air Canada or any commercial airline will notice any difference except the accent in the control tower,'' Capt. Brian said.

"No operational concerns should enter his mind. It must be a seamless transfer of operations in which international air carriers will not notice any difference the day after we leave.'' There is a possibility US personnel could remain beyond September, 1995 -- the closure deadline set by the US Congress -- if it is decided Bermuda air controllers need more time.

The US has said it has an obligation to ensure the smoothest and safest handover of Airport operations to Bermuda.

Premier Swan said the Base closure was an opportunity to create a new Bermuda.

In particular, he wanted base properties to be "fully integrated'' into Island activities and earning enough money to maintain physical and environmental standards.

To achieve the goal of "integrating'' base properties, the Premier will draft into the Bermuda team representatives from the Commission on Competitiveness and the Task Force on Employment, two Government-organised efforts to modernise the way Bermuda works and conducts business.

Some of the key Bermuda players in negotiations will be the Premier himself, who will head the negotiating effort at least initially; new Management Minister the Hon. Grant Gibbons, who will head the committee looking into uses of base lands; and Deputy Premier the Hon. Irving Pearman, who will head the infrastructure committee assessing the US facilities and the costs of maintaining them.

Despite well-meaning pledges, conflicts are bound to emerge over what are expected to be complex negotiations.

One potential conflict involves the environment. No specific disagreements have surfaced but it is possible they could develop over differing attitudes and expectations: Bermuda wanting to take over lands much cleaner than the Americans are committed to leaving.

Bermuda will probably ask the Americans for an environmental assessment of the Base, which the Americans have already described as one of its cleanest.

An Inspector General's report obtained by The Royal Gazette last year said it could cost $33.5 million to clean up hazardous wastes at the Bermuda bases, but local Base officials have down played that figure.