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3. Asked whether rebroadcasting was a potential revenue-earner. Mr Udell explained that at present rebroadcasting in Japan was only possible by taking the SW signal off air. Anyone was free to use it. In the future it might be possible to provide a high quality feed by satellite for local stations to select individual items (with attribution) for rebroadcast at prime time. However, there was little prospect of raising significant revenue from this; local radio stations were run on a shoe-string. Mr Muir asked what sort of material might be provided. it resulted in the Service aping Japanese domestic programmes, this would be to lose sight of WS objectives. Mr Clarke said that there was a great interest in programmes on subjects such as new ideas in technology etc, fashion, tourism and world sport. Mr Udell added that local media tended to have an extremely narrow outlook on Britain, eg golf and royals.

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4. Mr Clarke pointed out that the Service was almost entirely staffed by people on secondment from Japanese stations. This meant both that the calibre of employee was higher than might otherwise be the case, that the Service was cheaper to run the companies effectively subsidised the secondees' stay in London to the extent of £4 million a year, and that a cadre of Japanese reporters with a real insight into Britain was being created by those returning to their parent stations.

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Mr McCleary said there seemed to be agreement round the table that to retain the Service on the present basis was not sensible. Mr Witherow agreed. Mr Rawlinson asked what savings might be achieved if the Service was cancelled. Mr Clarke said that savings for the first year might be

4 million as few redundancy costs were involved. Apart from the Programme Organiser and two others, all the staff were Japanese secondees on short-term contracts.

6. Mr Muir said that the present return for £1/4 million was not great. The basic point to come out of the discussion was that as an instrument for putting across British views in Japan the Service was not rated highly. There were alternative tools for tackling the task. Mr McCleary added that there was no point in the Service trying to entertain, rather than to influence, merely to increase the audience. Mr Muir concluded that the November Prescription Round would certainly need to reflect on the discussions at this review, together with any additional information the BBC could provide from their current major review exercise. On present evidence, the FCO view would be that it would be difficult to justify the expenditure on the Japanese Service in terms of present results. Mr Witherow replied that this was more precipitate than BBC would wish, not that they wished to defend the Service to the very end,

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