1.
CONFIDENTIAL
years, since appropriate forward planning is necessary. It would be inefficient to stretch the programme further into the future and that could increase overall costs, eg repairs and additional recruitment to keep obsolescent stations open. There is at present no scope for cost-sharing with the Voice of America or other broadcasting organisations. 7. In spite of the BBC's resistance I have of course so far insisted that the original cut of £2.7m at 1979 prices (£3.1m at 1980 prices) should be applied throughout the planning period and this is reflected in the attached table. I have however decided to exempt the External Services from the 2% expenditure cut imposed on Departmental programmes last November (£.9m at 1980 Survey prices) and I am finding the required saving from other FCO programmes. I do not think it would be right to impose additional cuts on the programmes under my control to compensate for the increased requirements for the External Services in 1983/84 and subsequent years. The Aid Programme has already been subjected to much sharper reductions than those for other Government Departments and I am not prepared to make further cuts in overseas representation.
8. I invite my colleagues to consider the following
possible outcomes: -
a.
If no change is made in the present PESC provision there will have to be further cuts in vernacular
services and the BBC's capital equipment will start to deteriorate in 1983/84. For health reasons priority must be given to Bush House modernisation. Consultants I engaged have concluded that to
maintain standards the BBC must continue in Bush