A US television news show last night revealed that the report, prepared last month by Inspector General Derek J. Vander Schaff for the Defence Department, found the base's current use "does not warrant retention''.

And it strongly suggested the 50-year-old Base, be closed "no later than the end of the fiscal year of 1995''.

The 35-page report, entitled Review of Naval Air Station Bermuda, was revealed last night on ABC's Prime Time Live by ABC newsman Mr. Sam Donaldson who last December blew the cover on an alleged catalogue of abuse of time and money at the base.

In his report aired last year, Mr. Donaldson described the base as a "Club Med'' -- with military brass soaking up the sun and golfing at the US taxpayer's expense.

He noted that it cost taxpayers $38 million last year to operate the base.

Shortly after his report, top brass at the base were also accused of covering up two sex attacks there.

As a result of these reports US Congresswoman Pam Schroeder demanded a full-scale investigation.

She called on then-US Defence Secretary Dick Cheney to put the base on the closure list -- if it could not be justified militarily.

Ms Schroeder, chairwoman of the House Armed Services Subcommittee on Military Installations and Facilities, also fired off letters the Pentagon's Chief of Navy Personnel Vice Admiral Ronald Zlatoper and Inspector General Vander Schaff telling of her grave concern.

This led to the Inspector General's report.

The 35-page report, which covers the history of the base, its facilities, and its current use, is in the hands of the Defence Secretary Les Aspin, Mr.

Donaldson said.

And while its recommendation is clear, there was no word on where it will go from there.

Premier the Hon. Sir John Swan said he touched base with officials in Washington as recently as Wednesday. But he knew nothing about the report.

He said he would be in contact with Washington first thing this morning to learn more about the report.

USNAS spokeswoman Ensign Marie McGahan would not comment on the report last night.