newly-returned Base lands, Finance Minister the Hon. Grant Gibbons announced yesterday.

"It will be given the mandate and powers to plan, finance, market and develop the Base lands for the benefit of the people and economy of Bermuda,'' Dr.

Gibbons said at a news conference.

Legislation to create the Corporation will be tabled in the House of Assembly early in the next session, which begins in November, he said.

As of today, the US Navy has quit the 1,042-acre US Naval Air Station at St.

David's, the 250-acre US Naval Annex in Southampton, and the nearby 25-acre US Naval Facility at Tudor Hill.

The corporation will also be responsible for the 17-acre former Canadian Forces Station at Daniel's Head in Sandys, which closed last year.

The 25 acres turned over to Bermuda from the Royal Navy at Dockyard are being marketed separately, by the West End Development Corporation.

Government's Base transition team headed by Mr. Ken Stubbings closed its office in Hamilton yesterday and opened a new Base Land Development Transition Office on the St. David's Base.

With $1.5 million to spend until next March 31, the transition office will "tackle the huge amount of work needed to create the Land Development Corporation and to set the stage for the Corporation's operations'', Dr.

Gibbons said.

The Base closures resulted in about $45 to $50 million in lost revenues for Bermuda, at the same time the Country was facing increased costs at the Airport and elsewhere, he said.

To prevent the Bases from becoming "a debilitating drain on the economy, speedy redevelopment and use of these lands is a national priority.'' The Corporation will be given powers to maintain and improve conditions at the Base properties, provide water and electricity, and improve the environment.

By next spring, it would be headed by a general manager, assisted by four other managers responsible for marketing and promotion, finance, engineering and maintenance, and planning.

Separated from Government, the Corporation could enter partnerships or joint ventures to launch specific projects.

But Government would retain majority ownership of the lands and a Cabinet Minister would be accountable for the Corporation's activities, giving it direction and approving its finances.

The Corporation would enable Government to raise the "substantial'' capital needed to develop the Base lands without exceeding Bermuda's statutory debt limit of ten percent of gross domestic product, Dr. Gibbons said.

"The Government balance sheet right now, with some of the current projects on there like the school, the prison, and already some of the Airport costs, we're getting quite close to our borrowing limit,'' Dr. Gibbons said.

As a statutory body, the Corporation "will take some of the financing required off Government's balance sheet''.