CODE 18-77

Reference..

CONFIDENTIAL

Separate copies to:

Mr Streeton (Finance Dept)

Mr Harris (CED)

HKK 30611

RECEIVER DU BAASTOY NO. 51

13 MAR 1981

Mr Broadley (PPD)

Mr Hudson (ODA)

BBC EXTERNAL SERVICES: OD PAPER

DESK OFICER INDEX

is

$13.3.

RES HY Schon tak

PG 1313

1. Mr. Ridley has asked for the draft attached to my submission of 4 March to be shortened and the argument made to come out more clearly y. He thinks the idea should be brought out that there is an inherent bargain possible between us and the BBC: if they accept the cuts we propose, they get the extra money necessary for the capital programme for the years from 1983/4. He would also like a statement in the draft to the effect that,

if although there will be a row anyway in the House of Commons, the capital programme is rendered unviable by refusing the extra funds from 1983/4, opposition in the House may be irresistible.

2. Sir E. Youde has also suggested that the references to Hong Kong be replaced by references to an additional relay station in the Far East, although in a footnote to the annexed statistical table we would say "planned to be sited in Hong Kong or elsewhere" His point is that whatever we say about the lease on the New Territories expiring in 1997, the Prime Minister and others may think it odd for us to envisage authorising a new station so close to that date.

3.

The Cabinet Office have advised that the Prime Minister would prefer not to take this issue in the OD Committee and that

Treasur; the paper should, be recast as a minute to members of OD. and FCO Ministers should discuss the text and, assuming they do not agree, the minute should end with a suggestion that an ad hoc meeting be called.

4. I now attach a copy of my last draft with suggested excisions and amendments to meet the above points. May I assume your agreement if I receive no comments by close of play Tuesday, 10 March?

KG Machines.

K G MacInnes Inf Dept G 3/3 233-4337

6 March 1981

Copy (without att) to:

Mr McLaren (FED) Mr C (HKGD)

CONFIDENTIAL

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