Works Minister Leonard Gibbons told The Royal Gazette Government has suspended legal and arbitration proceedings against Club Med as a goodwill gesture while negotiations are on-going.

And the east-end resort operator has informed Government it would like to re-open by May of 1997, said Acting Director of Tourism Carol Wills. "They have set a target date,'' said Mr. Gibbons, "but there's a lot of work to be done. It'll take a sizable amount of money to bring it up to local standards.'' Government has said before the resort can re-open it must meet licensing requirements for fire, health and safety codes.

Negotiations are still pending and there has been no formal confirmation of Club Med's intentions, added Ms Wills.

"They're examining their options, looking at their numbers and will get back to us,'' she said.

The 340-room resort, overlooking Fort St. Catherine on the Island's east end, has stood empty since closing in 1988 and most of the action since then has been in the courts, not at the beach.

Last October Government MP Rick Spurling called for the "eyesore on the horizon'' to be razed and be replaced with an upscale cottage colony or health club.

And he has since told The Royal Gazette he hasn't changed his mind. "From a long-term point of view I think they should take it down. In it's present format it just doesn't seem to be successful. It's failed three times already,'' he said.

"But in the short term, if it'll help St. George's right now, I'm all for it.

It has to be done properly though.'' Mr. Gibbons said the building, built in the 1960's, needs "an awful lot of work'' on its air-conditioning system, elevator, sewage, fire and sprinkler system, and in-ground pools.

But Club Med's on-site caretaker Dominic Danten said the building has been kept clean and dry and is in good repair.

"There's lots of hot and cold running water and everything works fine.''