07-DEC-1993 15:48

OED CROYDON

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081 686 4951

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We do not think the specific issues regarding our teaching operation needs to be referred in your letter, although it can be demonstrated that the Council will not be making any savings. We do need to be very clear that the Council will not be able to meet an economic rent at any time. It is not a temporary situation, and it would be unrealistic to expect

lemul much change. The Council is prepared to bear the risk of

having to meet a commitment to our present cost levels despite an anticipated downturn in our teaching business, but the Council cannot undertake to consider going above the present cost ceiling.

S. I hope the amendments can be incorporated, and that you agree that they strengthen the basic argument FCO will be putting to the Treasury.

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but why ank

duerrom

Romesh Gunesekera

Assistant Regional Director East Asia & Pacific

cc. J N Elam CRD

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