Fifty four condominiums at Boaz Island will be sold to Bermudians -- once the remaining Canadian forces have left.

That was the declaration by the Premier the Hon. Sir John Swan.

Sir John scotched suggestions there was conflict over the future of the properties.

"They will be put back on to the market,'' he said.

The West End Development Corporation -- which leased the properties to Canada -- confirmed Sir John's statement.

Wedco General Manager Mr. George Smith said he was confident the condos would eventually be bought by Bermudians.

He added the properties were "perfectly marketable'', and would make attractive homes.

Mr. Smith explained 54 condominiums had been occupied by Canadian forces -- and the last would be vacated by December 31.

There were also about 30 other properties at the site which had already been sold.

And there were plans to build more condominiums to bring the total to 127 at Boaz Island, Mr. Smith added.

The Canadian Forces Station Bermuda at Daniel's Head officially closed on May 1.

At the time of the closure, the Base had 88 military personnel and employed 28 Bermudian civilians.

Since then there has been a phased withdrawal, leaving just a caretaker presence.

The 29-acre base opened in 1963, and cost the Canadian Government about $6.5 million last year to run.

It was a victim of the thaw in US-Soviet relations and budget pressures in Canada.

Mr. Smith said the Boaz Island condominiums were in the process of being vacated.

He was unsure how many now stood empty.

The Canadian Government had a pre-paid leasing arrangement with Wedco so the forces could use the condominiums.

With its personnel pulling out, Canada will have to be compensated by Bermuda's Government.

Sir John said negotiations had been taking place with the Canadian Government.

But they had been set back because of a change in the country's political leadership.

About three months ago Kim Campbell took over from Brian Mulroney as Canada's Prime Minister.

"We need to negotiate compensation which is both fair and reasonable,'' said Sir John.

The Boaz Island Development group is liaising with Wedco over the future of the condominiums.

The group's managing director Mr. Chuck Newman said he did not wish to comment until talks were over.