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those of resource allocation.
The Service as a whole is
to reduce by some 425 posts by April 1982 to meet commit- ments under the Lord President's exercise.
5.
Furthermore,
the training margin in the Service has been severely eroded in recent years and needs rebuilding so that officers can have sufficient time to learn languages and attend courses. All these can only be achieved if there are red- uctions in our overeseas deployment. Some of this has already .been achieved through post closures and the reductions in our 10 largest missions but much will also depend on the continued efforts of the Inspectors over the next 2 years.
The case of Panama falls in this latter category. If Panama is reduced in size it will save us 3 UK based staff and an expenditure of about £100,000 annually. This is a saving well worth having (the current annual cost is £232,000).
If the post were reduced in size some of its functions would have to go. Some saving would be achieved by simplification eg simplified accounts and administrative procedures which are possible for small missions. work would be confined to emergency cases and routine passport work etc would need to be taken on by a neighbouring mission, perhaps San José. The ability of the post to receive much cypher traffic would be greatly reduced as would its ability to hold highly classified material. There is a minimal aid programme there is only one Technical Assistance Officer there and he leaves soon In effect the post would be stripped right down and would concentrate on essential commercial and political work. (Exceptionally it might be possible to retain. an LEI commercial offacer.) It would thus be like other small missions
Consular
which have been successfully created over the past 3 years: Asuncion, Tegucigalpa, Santo Domingo, Libreville, Tananarive, Reykjavik, Tonga, Kiribati. The details of the changes required would take some working out but all departments concerned are agreed in principle that the change can and should take place.
6.
There has been some suggestion in the past that our interests in all the Central American countries could be overseen by one regional post. This is not practical for the moment: San José already looks after the affairs of Managua and Salvador; Tegucige pa is already a small mission and Guatamala, with its relationship to Belize, is sui generis. But, for the longer term, if is a possibility to be kept in mind.
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