Government will this morning present the US Navy with a tough position on environmental clean-up of Base lands returning to Bermuda, The Royal Gazette has learned.

But a high-level American source warned yesterday a hands-off attitude by the Navy could result.

The Navy is quitting the 1,200-acre US Naval Air Station at St. David's and the 250-acre US Naval Annex in Southampton by September 1.

A report by RT Environmental Services Inc. of Pennsylvania, now in the final stages of completion, will be Government's main weapon as it seeks to assure the lands come back in "good condition''.

After months of meetings at which little actual negotiating was done, the talks between Bermuda and the United States should heat up when the two sides sit down at the Cabinet Building today.

Findings of RT, which include soil and groundwater contamination at the St.

David's Base and underground "sludge'' at the Annex, are to be referred to in Government's position paper.

Yesterday, an American source accused Government of politicising the environmental issue and said a hands-off attitude by the Navy could be the result.

"We are expecting the Government to present us with their environmental assessment of the property,'' the source said. "We'll take it and study it and get back to them.'' The source said American data shows there is nothing at the Base or the Annex which is a health hazard.

The Americans are not surprised that Bermuda would come back with "an assessment at some variance from ours'', the source said. And the US expected Bermuda to make some "legitimate requests''.

"However the motivations for Government seem to be moving in a purely political direction.'' The Navy was only required to clean up known health hazards, but was doing work like capping the landfill, improving the Castle Harbour shoreline, and removing some underground storage tanks because it was "the right thing to do'', the source said.

"What I'm afraid is about to happen is Government is going to take a purely...political position.'' On the capping of the landfill, "they may even say...`What you're doing is covering up the problem','' the source said. "You're covering up various toxins which might be there -- which is not true.

"I'm afraid they may do that in an attempt to show they're being aggressive and that they're not being taken for neophytes.'' If that happens, the US source said, "we'll just stop the work (and) you can have it exactly the way it is. I'd hate to see that happen''.

Management and Technology Minister the Hon. Grant Gibbons would not comment yesterday on today's session, which is observed by Deputy Governor Mr. Peter Willis.

"What we would like -- and I think we've been fairly consistent about this -- is when the Americans leave we would like the lands returned in good condition,'' Dr. Gibbons said. "There could be some difference of opinion between us on what that is.'' The Navy has presented Bermuda with a $140-million price tag for "improvements'' to the Base lands. Government has rejected the figure.

"We have been consistent in the sense that we don't expect to pay for buildings and fixtures that are left,'' Dr. Gibbons said.