DSR 11C

CONFIDENTIAL

distributed to radio stations abroad) which, though partly

self-financing, requires over £900,000 subsidy from the

grant-in-aid. Our other proposals involve ending broadcas

in Italian, Maltese, French to France and Spanish to Spain

(the French Service to Africa and the Spanish Service to

Latin America would not be affected). We have also asked

the BBC to increase output in Russian, Farsi, Turkish and Pushtu (mainly because of Afghanistan) at a cost of

£200,000 p.a., so the net saving on the current side would

be £1.5m. I do not recommend seeking further savings in

current operations on the dher vernacular services, which

are mainly directed to communist and developing countries,

since these are important tools of foreign policy. (Full 1 at Annex B) 5. I have met great resistance from the BBC to making

the savings in the services mentioned above, which they

vigorously maintain are of national importance. It will

be recalled from the campaign which the BBC conducted in

1979 that they can muster a powerful lobby against cuts in

Parliament and elsewhere. With this in mind, Nicholas

Ridley has kept the Backbench Media Committee generally

informed. But we must expect another major row when our

proposed savings become public knowledge. Nevertheless in

we are at the same time able to ensure a sensible capital

programme for the BBC, we should manage to counter any new

campaign effectively.

6. I have carefully considered the various elements in

the capital programme and I believe there is a very strong

national interest in making all the funds required

available. The programme would be phased over a number of

/years

CONFIDENTIAL

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