may have serious repercussions for Bermuda.

ABC newsman Mr. Sam Donaldson is on the Island investigating just how useful the US Naval Air Station in St. David's is to America.

It is understood his report will single out the NAS as he seeks to answer the question, "Does America really need overseas bases?''.

US President-elect Mr. Bill Clinton has already stated he plans to make cuts to the defence budget.

Mr. Donaldson's report could pressure Mr. Clinton to make significant staffing reductions at overseas bases -- and possibly get rid of some bases altogether.

But Finance Minister the Hon. David Saul was last night confident the NAS -- which costs the US Government some $25 million a year to run -- would not be first on the list. He said its runways played a vital role in the event of something going wrong on a space shuttle mission.

However, he added, there was a special Cabinet committee preparing for the worst.

Mr. Donaldson's report is scheduled to air on December 10 on PrimeTime Live, which he anchors along with Ms Diane Sawyer. It is rated the 28th most popular television show in America.

The red carpet was rolled out for Mr. Donaldson and his two camera crews yesterday morning, as he was given a complete tour of the NAS, including a helicopter ride.

He spent the afternoon interviewing NAS senior officers and commanding officer Capt. Jim Arnold.

As a result of Mr. Donaldson's express orders, The Royal Gazette was refused entry onto the base while he was touring it.

NAS public affairs officer Ens. Marie McGahan explained: "If Mr. Donaldson does not want to see you then we are not going to let you on. We are respecting his wishes. He is here as a guest.'' Seconds later, a Police car arrived and armed security officers ordered a Royal Gazette reporter and photographer to immediately leave the NAS parking lot.

A PrimeTime Live spokeswoman at ABC headquarters in New York would not discuss the project, saying Mr. Donaldson wanted it kept "low key''.

Her only comment was: "He is working on an investigative report and it is expected to air next month or early January.'' It is understood Mr. Donaldson arrived on the weekend via private jet and was staying at the Hamilton Princess.

Ens. McGahan said he had not made any arrangements to return to the base today. She said he was shown all of its facilities.

"He was trying to find out whether NAS-Bermuda is necessary in the greater scheme of the US Military,'' she said. "I think he is looking at overseas bases in general and wanted to use Bermuda as one example (in the question), `do we really need overseas bases at all as there is no more cold war'?'' There are currently a total of 2,589 military and civilian personnel on the NAS and Annex.

That number is expected to be slashed to 2,207 by next November, as the US Navy continues with its efforts at "down-sizing'', and the Annex all but closes, Ens. McGahan said.

She said there had been no official closure date given for the Annex, however, it is intended that by next April it would be occupied by a skeleton staff only.

She added that as several NAS departments had become obsolete -- such as aircraft maintenance -- the servicemen stationed at those departments were now working in other departments -- such as construction, security and at the post office. She denied reports they were underemployed.

Base staffing has been cut in half since the 1980s, when the cold war was a major threat and the NAS's main purpose was round-the-clock submarine surveillance flights.

Dr. Saul said the base cuts in Bermuda -- including the Canadian forces planned pull out of Daniel's Head by May of 1993 -- represented "tens of millions of dollars'' in revenue losses.