1.

CONFIDENTIAL

DSR 11C

House or an equivalent building in Central

London. This means that planned improvements

in transmissions, notably to Eastern Europe from

Orfordness, would be postponed 6 years and work

on the proposed relay stations in Seychelles and

Hong Kong would not start until 1993. High pric

repairs and maintenance would also be delayed.

b. If the BBC were asked to bear any further cut of

say 5% (£2.5m) in its existing PESC provision,

I would either have to abolish up to half the

remaining vernacular services or risk disruption

in the present level of audibility in many parts

of the world. Difficulties would be experiencec

in providing essential replacement items of plan

required to ensure continued operation of broadc

stations at home and abroad. This could have

serious repercussions affecting many of our Worl Service and vernacular transmissions, including

such important services as those to the USSR.

The proposed relay stations in Seychelles and

Hong Kong would be further delayed.

c.

If on the other hand my proposals are accepted,

we would establish for the foreseeable future a

settled programme for an invaluable British ass.

which plays a vital role in our relations with

the rest of the world.

CONFIDENTIAL

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