When we met Alan we mentioned the need to sort out the resource

implications. Since no PES bid was made, the cost has to be absorbed within existing provision. We need to establish where offsetting savings could be found before we go to Ministers on the policy and this is requiring further discussion.

I am copying this fairly widely to give those concerned a chance to comment. Copies go to Tim Flesher IND; Bob David DE; Mr Davis and Mr McDonald, Training Agency; Mr Machin ODA; and Mr Radley DOE. I should be glad if Bob David would let me know whether he thinks the joint minute should be copied to his Secretary of State before it is sent to the Prime Minister. I should be glad of comments by 10 November.

(cd16/fd)

Yours sincerely

onwen

frely

Fair

Mrs BH Fair

عنده

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