to develop the lands they have vacated move into full swing.

While the American pull-out is "a historical moment ..

. it's in many respects just another day in taking on this enormous responsibility,'' said Finance Minister the Hon. Grant Gibbons, the Cabinet Minister responsible for the Bases.

In all, Bermuda is receiving lands equal to about ten percent of the Country's area. There is the 1,042-acre US Naval Air Station at St. David's (more than half of which will be inside the Airport fence), the 250-acre US Naval Annex in Southampton, the nearby 25-acre US Naval Facility, and the 17-acre former Canadian Forces Station at Daniel's Head in Sandys.

Do the American lands truly return to Bermuda as of today? "There has been a lot of discussion about this,'' Dr. Gibbons told The Royal Gazette . "I'm advised that legally, they come back to the Queen in the right of Bermuda.

"The issue revolves around the fact that what we're talking about is a lease agreement. In the lease, title always existed in the Crown. Because Bermuda is practically a self-governing nation, the title essentially comes back to Bermuda.'' The 1941 lease agreement between the US and United Kingdom still must be resolved, he said. "There are certain rights of re-entry that were there for historical reasons in case of war.'' The original agreement, which lasts until 2040, states: "When the United States is engaged in war or in time of other emergency, the Government of the United Kingdom agree that the United States may exercise in the Territories and surrounding waters or air spaces all such rights, power and authority as may be necessary for conducting any military operations deemed desirable ...'' And the word "territories'' could be taken to refer not just to the leased area, but the "British transatlantic territories,'' including Bermuda, which were covered by the Bases Agreement.

The Americans "have no interest in coming back,'' but "issues of that sort still need to be resolved, Dr. Gibbons said. "That's why we're keen to have the treaty terminated in its entirety.'' The Americans want the agreement to continue, with the leased area reduced to only take in Cooper's Island, where the National Aeronautic and Space Administration (NASA) facility is located.

Bermuda wants a new lease drawn up for NASA. And while the UK is supporting Bermuda's position in the talks, Dr. Gibbons said Britain cannot terminate the lease unilaterally. "It has to be a mutual agreement.'' Talks continue with NASA and the US Government, he said.

With yesterday's announcement that a Bermuda Land Development Corporation will be set up, Government turned the corner from successfully assuming Airport operations from the Navy to the no-less-daunting task of taking a potentially huge drain on Bermuda's economy and turning it into a money-spinner.

Most of the air and procurement specialists -- like Mr. Jack Shore and Mr.

Toby Farmer of New Zealand's Airways Corporation -- have departed.

"The challenge now, of course, is to put together another transition team, with emphasis on property development, realty, and fixed asset management,'' said Mr. Ken Stubbings, manager of the transition team.

In meeting the June 1 deadline to take over air operations, "we had to be absolutely ruthless in prioritising what to do'', Mr. Stubbings said.

Now, the deadlines are looser, but the pressure to perform is just as great, Dr. Gibbons said.

Subtract from Bermuda's income the roughly $45 million a year that the latest Archer Report estimated the Bases injected into the economy, and add the $15 million a year the Airport and Base lands are costing Government, and "we've had a swing of almost $60 million'', Dr. Gibbons said.

"Without undue delay, but with reasonable discussion with the community, we must find ways to have revenue coming in, as opposed to having revenue going out,'' he said.

A land use plan for the Bases will be unveiled in the next two weeks, Dr.

Gibbons said.

While between 100 and 200 proposals have already been submitted, international marketing could be required to solicit ideas for light industry and some other uses.

The Minister said discussions were still under way about how development approvals for the Base lands would be handled. It could be that the normal practice of applying to the Development Applications Board will not be followed.

"When we integrate these properties into Bermuda, we obviously

7 Bermuda takes over the American Bases have to make sure a lot of the normal amenities and building codes are put in place,'' he said. "At the same time, because we've got a very large project here, it requires a special approach.

"We need to find ways to streamline the development procedures.'' Dr. Gibbons did not want to say which lands could be "fast-tracked'', and which would take longer to develop. But the Annex and Daniel's Head, which were smaller, easier to manage, and had more obvious uses, would likely be developed more quickly than the Naval Air Station, he said.

The work of the Base lands utilisation committee -- which included St. David's area residents and a representative of the National Trust among its members -- is essentially finished, Dr. Gibbons said.

The committee helped London consultant EDAW develop the land use plan, and also helped write criteria for evaluating development proposals.

From now on, "it really will be the land development transition group and eventually the Land Development Corporation will be the body for carrying out the ongoing management of this strategy'', Dr. Gibbons said.

Parts of some Government departments will be moved to the Base, but Dr.

Gibbons could not say which ones, or how quickly.

"It depends a little bit on building readiness and the renovations that are required,'' he said.

There had been strong interest from the Department of Education, while the Archives were among departments wanting storage space and Community and Cultural Affairs wanted the movie theatre.

lands are in Bermuda's hands, Government is hoping land development goes as smoothly as Airport operations have been handled since June 1. Plans for a Bermuda Land Development Corporation were announced yesterday.SHIFTING FOCUS -- Finance Minister the Hon. Grant Gibbons talks about the new Bermuda Land Development Corporation and the need to find uses for the Base lands as Bases transition manager Mr. Ken Stubbings looks on.