04-JAN-1994
14:57
FCO FINANCE CEPT
P.00
ou
be
say
now that, should the Council's outgoings on the new building building, on their present than the rent and outgoings they will surrender the savings to the FCO. This new proposal
would
British Council falls far short of what we
expect. The
the full costs of its new for ought to be responsible
rent. That accommodation, including either a capital payment or
in view of the Council's 2 businesses particularly important
and DATS. which are not funded by the taxpayer: Enterprises Unless the Council pays the full costs of its new accommodation, a for competition with level playing field would not be preserved
is
the private sector. The Financial Secretary has emphasised "that there can be no possibility of subsidising unfair competition by the Council, which would be a waste of its grant-in-aid" (letter the Quinquennial of 23 July 1993 to the Foreign Secretary, about
Review). Also, your proposal would mean that there would be scope for the Council to influence the amount involved through contrôl of the outgoings on its accommodation in the new building.
we are I must ask
We would be unable to recommend approval of the main works stage how the British of this project until we can be satisfied about
meantime, will Council element
In the be financed. examining the material about the project itself, but first for you to reconsider your new proposal on British Council that the Council costs. We need a revised proposal, please, so bears the full costs, including capital, of its accommodation in
its than just the new building, rather building.
outgoings
the on
Yours sincerely,
Brian alte
BG MARR AEF1
new
Happy New Year!
TOTAL P.03
!