the closure of the Naval Air Station.

But it confirmed Bermuda remained on the latest list of overseas military bases to remain open.

The list released yesterday, however, made it clear that downsizing will continue at the St. David's base which has some 600 personnel.

Defence Department spokesman Cdr. Keith Argerburn said he could not comment on the report nor its recommendation because it is still an "internal, working document''.

If a decision is made to close the Base, he said it will be announced by the Defence Department.

ABC newsman Mr. Sam Donaldson disclosed the top-level report, prepared by Inspector General Derek J. Vander Schaff, earlier this week on Prime Time Live.

The 35-page report concluded that the base' current use "does not warrant retention''.

And it strongly suggested closing the base "no later than the end of the fiscal year of 1995''.

It is believed the report came as a direct result of negative publicity about the Base and Mr. Donaldson's allegations that the base was nothing more than a playground for military top brass at the US taxpayer's expense.

And both Base commanding officer Capt. James Arnold and spokeswoman Ensign Marie McGahan refused to comment.

The Base did release a brief statement, saying the report was "but one input into the ongoing review of downsizing and cost saving measures at overseas bases by the Department of Defence''.

"It is not necessarily the final decision, and the Navy's position is still under study,'' it added. "The process will include a thorough review by all Department of Defence Agencies and will be reviewed by the US State Department before a final determination is made.'' Premier the Hon. Sir John Swan, who only learned about the report through Prime Time Live, yesterday said he had no further information about it.

But he said Government was using its sources in Washington and "other contacts'' to stress to the US that the Base was still necessary.

He said the Base provided many services that "safeguard Americans more so than Bermudians''.

But Opposition Leader Mr. Frederick Wade said it was time for Government to wake up and see "the writing on the wall''.

"He (the Defence Secretary) may or may not act on that report,'' Mr. Wade said. "I would hope he doesn't, especially in the near future because Bermuda is still recovering from recession.

"But we ought to see the writing on the wall and make serious plans about what we're going to do with the base.'' Mr. Wade said the US, like the rest of the world, was doing what was in its best interest.

But he added if the US did decide to leave, he hoped it would give Government plenty of notice. "Even the latest time (1995) is too early,'' he said.

"Not only will we have to figure out how to replace the loss to the economy, but we will also have to figure out how we will run the Airport.'' "Of course,'' he said, "the Americans may decide to close the base and still keep the land because their lease still has 45 years to run.

"But I would hope that if the Americans decide to leave, they will return the land to us.'' Mr. Wade said the PLP has offered to support Government's efforts if it "came up with a plan that is in the interest of the Country.''