Bermuda's asbestos problem.

For a former employee at the ex-naval air station has suggested entombing the deadly dust in massive bombproof bunkers deep below the station.

And Environment Minister Pamela Gordon said she would be following the suggestion up to see if the old bunkers would be a suitable dumping ground for tons of asbestos currently stored in steel containers.

She said: "I have asked the Permanent Secretary to contact Works and Engineering to look at what this gentleman is talking about to see if it is a possibility.

"The man who contacted me said he believes that the bunkers are big enough.

To show that we take his suggestions seriously it will be followed up.'' The bunker plan could be a way of getting rid of the 165 containers full of asbestos currently awaiting disposal -- and end the controversy over the route of dumping the waste at sea.

Ms. Gordon said: "I don't know if using these bunkers is viable -- but I am more than prepared to find out.'' But she added: "It won't solve the long-term problems but it might solve the immediate one. But I am not going to dismiss any suggestions anyone makes.'' The news came amid confusion over Bermuda's future liability if asbestos from the island buried in specialist dumps in the United States ever causes health problems.

Ms Gordon has said no-one could offer to indemnify Bermuda against third party claims for health damage if a US landfill site is used because the US government refuses to give immunity to countries which have potentially hazardous waste buried on American soil -- a claim denied by Bermudian businessmen who have offered to have the waste buried in the US.

But Ms Gordon insisted that Bermuda would need "an open-ended insurance policy which would be major bucks every single year forever'' or lay itself open to the possibility of massive lawsuits for future health damage.

Ms Gordon is on record as saying she favours dumping the waste off Bermuda two miles down as the cheapest and safest way of disposal because cancer-causing asbestos is only a health hazard if airborne.

International environmental guerrillas Greenpeace, however, have vowed to fight a potentially embarrassing propaganda war against sea-dumping by Government and pledged to disrupt any marine disposal operations.

And the bunker disposal suggestion comes as another Bermuda businessman insisted that Government had got it wrong on the need for massive insurance against health damage.

Michael Stowe of International Strategic Management said his deal with a Mississippi-based waste disposal site offered full indemnity to Bermuda.

He said: "He said I have not identified a situation which requires this type of insurance arrangement at all.

"The US Comprehensive Environmental Response Compensation and Liability Act provides sufficient coverage for the purpose of dealing with asbestos or any hazardous waste.

"The landfill I have identified to take asbestos also receives hazardous waste from other foreign territories and they are satisfied with the arrangements which basically protects its interests.'' Mr. Stowe was speaking after Michael Marshall of the Bermuda Waste Management Company insisted his guarantee from Oakridge Landfill in South Carolina also protected Government against future legal action.

He was backed by a spokesman for Oakridge Landfill, who said the firm had the "legal ability to assume ownership of the waste and indemnify Bermuda''.

New asbestos plan From Page 1 "Apparently this is being considered in a positive light by the Opposition (PLP), one of their members introduced the Bill, and other MPs despite the fact there is a Bermuda public company willing to work with ACE and EXEL'' Mr. Conyers wrote that he found it "difficult to comprehend'' how the ACE/EXEL plan was being so "apparently favourably considered by our Members of Parliament''.

He added that BFCL had been in talks with ACE over the last few months about developing the site, but ACE pulled out to join EXEL as well as another company BFCL was in talks with to develop the site.

Mr. Conyers said BFCL made "repeated attempts'' to contact both companies offering a joint enterprise -- but was rebuffed each time.

"Indeed we were informed that ACE and EXEL and an unnamed third party wanted to own this site 100 percent and were not interested in discussing a relationship with BFCL,'' Mr. Conyers wrote.

BFCL is still hopeful of securing backing to finance a counter-bid for the hotel site and has asked shareholders to lobby MPs before the private Bill reaches the House.

"I want to thank you for your continued support and, in anticipation, for your contribution to making our project successful,'' Mr. Conyers wrote.

No-one from ACE or EXEL was available for comment yesterday. Neither was Stanley Lowe, Chairman of the Joint Select Committee on Private Bills, which passed ACE and EXEL's private Bill.

MILITARY MIL