US Consul General Larry Owen said he expects a breakthrough in the baseland talks -- but he gave clear hints Bermuda would not get cash for the clean-up.

He said the US had taken the position that they would not pay costs to countries for environmental damage if they had befitted much more in other ways.

At a meeting of Hamilton Rotarians yesterday Mr. Owen, who was the Michigan Finance Chair of the Clinton-Gore 1992 campaign, was asked if his presidential connections would speed up the resolution of the problem.

Mr. Owen said: "Something will happen that will be viewed as positive for Bermuda.'' Mr. Owen explained that the US had put forward bases all over the world.

When they were closed he said Congress had decided the US should not pay for the clean-up if the Defence Department determined what was left behind was of greater value than the cost from any damage done.

Mr. Owen said: "In the case of Bermuda the Defence Department determined they left the airport which outweighed the cost of any damage.

"The bigger part of the problem is the precedent.'' "If the problem is $50 or $8 million it seems that should not be a big cheque for the US but multiply it by the number of bases and it turns into billions on top of billions.

"I would not expect to see the Defence Department do a 180 degree turn and write a cheque.

"I do think the Bermudian Government is pursuing a wise policy and saying to the UK: `Look the UK leased our property to the US and now the property has a problem. You ought to help out here'.'' "I do think that's a wise approach given the broad relationship between the US and the UK.

"Talks between those two and Bermuda are likely to yield results. I can't say how long it will take but it will yield positive results.'' Deputy Governor Tim Gurney declined to comment about whether a deal would involve cash or some other settlement.

But he said he was hoping a further round of talks would begin next month.

In July talks were held between UK Foreign Office Minister Baroness Scotland and US Defence Department officials about the heavy metals, sewage and oil products at Bassett's Cave, asbestos left at various sites and the leaked jet fuel at Morgan's Point.

Environment Minister Arthur Hodgson said: "We never asked for money. We simply asked for the pollution to be cleaned up.

"Even if we get the money we have to hire contractors.

"We are still having negotiations.'' Mr. Hodgson also said a fresh round of talks was due in the near future.

He said: "I am absolutely optimistic -- I am expecting it will yield results too.

"Our morale position is solid. That gives me my optimism.

He added: "The arc of the morale universe is long, but it bends toward justice.''