Around half-a-million gallons of oil could lie below a former US base earmarked for a massive tourist development.

The shock news came as Premier Pamela Gordon and Finance Minister Grant Gibbons returned from a flying visit to the Pentagon to put Bermuda's case for compensation for the clean-up of the old US bases on the Island to US Secretary for Defence, William Cohen.

And the problem at the US Naval Annex in Southampton -- now known as Morgan's Point -- is worse than at first thought.

Dr. Gibbons declined to speculate on the extent of the underground oil pollution at Morgan's Point.

He said: "It's difficult to put a precise figure on it, but there is more than we thought was there.

"What it requires is additional information. It requires further scientific investigation.'' And he admitted it would add to the estimated $55 million clean-up bill although the extra "probably won't be significant.'' But The Royal Gazette has learned there could be as much as 500,000 gallons of fuel involved.

Dr. Gibbons added: "Since the Navy has actually withdrawn, there have been a number of surveys, particularly at the Annex, and we have found additional pollution up there.

"And we were able to provide that information to lend support to our case.'' But the Island could know as early as next Spring -- when the US budget, including that for Defence, begins to be drawn up.

It was the first time Bermuda has negotiated direct with US Cabinet-level politicians over its claim for a clean-up.

And the Island was backed up by a top official from the British Embassy in the American capital.

Ms Gordon said: "We were joined by a senior representative of the British Embassy.. .who confirmed the United Kingdom's full support for Bermuda's position when it comes to the environmental clean-up of the former Base lands in our Country.'' Ms Gordon added later that the UK -- which has already cleaned up oil pollution left behind at the ex-Royal Navy base at HMS Malabar -- had offered "phenomenal support.'' She said: "The UK representative spoke right after I opened to basically tell them that the UK Government. having heard Bermuda's case, is 100 percent behind us on this issue and will follow up on our behalf to continue to try and come to a resolution.'' The pollution is believed to have leaked over the years from underground storage tanks for jet fuel.

The full extent of the problem is understood to have been discovered during surveys of the land carried out with a view to redevelopment as a tourist attraction.

And Ms Gordon said: "We don't want Bermudian people at risk and we don't want our visitors at risk.

"It's very important that they take it as seriously as we do.'' And she warned: "Bermuda is not going to go away, we're there and every time they turn around, we'll be there. We're going to deal with this issue.'' The meeting with Mr. Cohen and other top US officials came after President Clinton on Saturday approved a $100 million pay-off package to remove pollution from ex-US bases in Canada.

Also at the meeting at the US military's nerve centre of the Pentagon were American officials involved in the Canadian negotiations.

Ms Gordon said: "We were very well received and Secretary Cohen was most gracious and attentive as he took careful note of a number of points we ensured were made on behalf of the Bermudian people.'' She added: "During the meeting we continued our mission of making clear the environmental difficulties caused by the manner of the withdrawal of the United States from the Base lands.'' And she said: "We also updated Secretary Cohen on some important environmental information that has come to light since our previous conversations with the United States Navy.

"We had a full and frank discussion and the Secretary of Defence has committed to having a fair and full look at Bermuda's position.'' The Bermuda delegation also took along a detailed report knocking the conclusions of US Navy and Defence Department surveys carried out earlier this year, which insisted America had no responsibility for the mess its forces left behind.

Bermuda has been locked in talks with the US over the clean-up of the Annex and the old Naval Air Station at St. David's since the Americans pulled out of Bermuda in 1995.

Problems left behind include tons of oil, potentially deadly asbestos and poisonous heavy metals.

Ms Gordon said: "This is an ongoing effort that we will continue to pursue on the many fronts available through our contacts, both formal and informal.

"Our plan takes patience and a clear understanding of the procedures which drive the US system.'' She added: "We've been successful with our policy of quiet persistence in the past and I'm convinced that staying this course will result in a positive outcome for our Country.'' Ms Gordon said: "All Bermudians need to be aware that any agreement on this matter needs Congressional approval. Our contacts and supporters on Capitol Hill have committed to assisting us in advancing Bermuda's position.'' The Premier and Dr. Gibbons, backed by Assistant Cabinet Secretary Robert Horton, were offered a lift to Washington and back on a jet owned by a Bermuda-based businessman.

Ms Gordon said: "We rode up on his jet at no cost to the taxpayers of this Country -- it was someone being a good corporate citizen.''