The US Government could be on the verge of accepting responsibility for a multi-million dollar clean-up of their former bases.

And a visit by top US Navy brass to Bermuda in the next two weeks may be a prelude to an announcement of a U-turn by the US government on clearing up the mess left behind when the US Navy pulled out of Bermuda more than two years ago.

Sources said the US appeared to be softening on its hard-line position that it has no legal responsibility for environmental damage after surrendering the Navy leases.

It is believed Premier Pamela Gordon could be set to make a major announcement on the issue within the next week or so.

Tons of asbestos from US Navy buildings have been collected and are waiting for disposal. Bermuda wants the US to take the potential killer out of Government's hands.

Underground oil storage tanks at St. David's have also leaked over the years and oil pollution has been found in caves beneath the former US Naval Annex in Southampton -- now known as Morgan's Point and earmarked for a major tourist development.

The Royal Gazette understands the US may be considering using a loophole in its laws on the clean-up of its overseas installations in a face-saving exercise on the Island, while not conceding the general principle of responsibility.

The US has refused to accept responsibility for environmental work in bases outside the US -- except where there is "imminent danger to health or safety.'' Insiders believe the Royal Navy's million-dollar commitment to clear up tons of old oil in caves at the old Royal Naval Dockyard may also have influenced the US to try and avoid appearing tight-fisted in comparison.

The news came after outgoing US Consul General Robert Farmer announced on Tuesday -- in a departure from a prepared speech -- that a trio of top US Navy Department officials were set to visit the Island to take another look at their old Naval Air Station at St. David's and other US installations on the Island.

It is understood Mr. Farmer has lobbied for Bermuda during the clean-up discussions.

He admitted during his talk to Hamilton Rotary Club, his last major public speech before leaving his post on December 1, that there were still base-related issues to be resolved between the Island and the US.

But he added that he "firmly believed that the rare relationship between our two peoples and governments will not fail us as we work to resolve these issues....'' US Bases A political row between Bermuda and the US has been brewing over pollution since the US quit their bases in 1995 as part of the peace dividend following the collapse of the Soviet Union.

Ms Gordon and Finance Minister Grant Gibbons visited Washington in May to meet top US Navy officials, including Secretary of the Navy John Dalton.

They brought the US Navy men up to speed on the British decision to clean up the caves at the ex-HMS Malabar and the Canadian Navy's acceptance of responsibility for environmental damage at its base at Daniel's Head.

Both Ms Gordon and Dr. Gibbons last night refused to comment on the issue in advance of the report by the US officials.

ENVIRONMENT ENV