Bermuda's asbestos waste.

And talks have begun with owners of a waste disposal site in the US which may take the asbestos -- without a long-term financial liability for Government.

The Royal Gazette reported yesterday that Government had deferred the ocean dumping of the deadly dust and asked Governor Lord Waddington to talk to the UK on Bermuda's behalf.

But Premier David Saul said: "The Governor has gone to the UK government and asked them to do a search to find out what countries have a landfill dump for this.

"We want to know who will handle this type of material and how much it will cost.'' Dr. Saul said Government were convinced the asbestos waste could not be shipped anywhere else at a reasonable cost.

But he added: "You can't put a cost on bad advertising and saving the environment -- that's the thing I want to weigh in the balance.'' And he refused to rule out the eventual dumping of the waste at sea if no other method of disposal proved viable.

But Environment Minister Pamela Gordon said she hoped the UK would offer to take the waste.

And she said a US-based businessman with Bermudian connections had an interest in a landfill site in South Carolina and talks had begun with a view to taking it there.

Ms Gordon said most US asbestos dumps were in a "superfund'' which could mean massive liability in the event of an accident involving Bermudian asbestos.

But she added: "This landfill site apparently is not connected to the superfund.'' Ms Gordon said the deal would have to be scrutinised by US lawyers, the Attorney General's Chambers and Britain to ensure any indemnities would stand up in court.

The U-turn on dumping came after pressure mounted inside and outside the Island to stop the dumping plans.

Government wanted to dump 160 containers of asbestos -- which causes cancer if breathed in -- 18 miles offshore. The asbestos came from removal projects on public and private buildings.

But an estimated 200 containers worth of the material is thought to be in buildings on the former US Base lands on the Island.

Dr. Saul and Minister of Finance Grant Gibbons are still negotiating a settlement on the Base lands with the US Government, which includes dealing with the problem of asbestos disposal.

International environmental watchdogs Greenpeace pledged to campaign against the sea-dumping move -- and this week organised demonstrations outside the Bermuda Department of Tourism offices in New York and Boston.

And local opposition grew too, with Bermuda Industrial Union Marine and Ports workers refusing to handle the killer cargo.

And some Bermudians threatened to take to sea to disrupt the barge dumping.

But Dr. Saul said advice given to Government was that sea dumping was both legal and safe.

He added: "Greenpeace didn't mind if we kept the asbestos here and polluted the air in Bermuda -- that was okay. It seems illogical to me.''