will be finished by November, The Royal Gazette can reveal.

And an official handover of the spic-and-span caves is planned to mark the completion of the work.

Government House Registrar Paul Dryden said yesterday: "I understand work is still going on. But it's still on for a November completion date for the clean-up.'' Britain pledged two years ago to remove an estimated 1 million gallons of old oil dumped in the caves, to the left of the main entrance to Dockyard.

The problem was discovered during an environmental survey just before the Royal Navy pulled out its Bermuda base in 1995.

Mr. Dryden said: "The UK's Ministry of Defence has fulfilled its requirement to do what it promised to do -- clean up the oil.'' UK-based environmental clean-up experts ERM started work on the caves in July last year.

The move came after consultants found oil pollution in the caves, which stretch under the old Casemates Prison as far as its replacement Westgate, when a wall constructed over the entrance to the caves was broken down.

It is understood waste oil from Royal Navy ships had been pumped into the caves from as early as the turn of the century.

The Royal Gazette reported in June that pumps installed by ERM had reduced the oil level in the caves from nearly two metres deep down to around a centimetre.

Hundreds of cubic metres of oil and sludge has been stored in tanks near the site for disposal overseas.

It is believed the oil -- if found to be clean enough -- could be transported to the US, to be used to make asphalt road surfacing.

The UK commitment to a clean-up is thought to be a major weapon in Bermuda's bid to get the US Navy to do the right thing over pollution at its former bases.

Long-running talks aimed at getting the Americans to meet a bill which could run as high as $65 million are still on-going.

The US left behind what is estimated to be ten times the amount of oil discovered at Malabar.

Oil deposits have been found at Southside, the old US Naval Air Station in St.

David's and in caves under the ex-US Naval Annex in Southampton.

In addition, tons of potentially deadly asbestos has been ripped out of old US Navy buildings and awaits disposal.

Government wants the US Defence Department to take the asbestos -- which can cause cancer and other lung diseases -- off its hands.

ENVIRONMENT ENV