TNAG-1077-FCO40-1327-Broadcasting-in-Hong-Kong-proposed-BBC-relay-station-1981 — Page 127

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provision of more than £1m in both 1981/82 and 1982/83, but

that requirements on the capital side in 1983/84 and 1984/85 will necessitate the new money mentioned in paragraph 1(b)

above. The projected capital programme will be about the

same level in 1985/86, will rise in 1986/87 and then decline

again.

3. The proposed capital expenditure contains some

unavoidable new elements, in particular further modernisation

of Bush House to deal with an unexpected health hazard caused

by asbestos ducting and unforeseen ground works at Orfordness.

It is also necessary to replace obsolete transmitters and

plant with up-to-date equipment.

१

All the projects involve

further development of work whose commencement has been

approved, except a proposed relay station in Hong Kong

designed to improve audibility in China and Japan on which

work would begin in 1985/86.

4.

We should attach top priority to ensuring that the BBC

is heard. Its audibility is far below that of Radio Moscow, the Voice of America and other international broadcasting

organisations.

The savings which the External Services were

required to make in 1979 of £2.7m p.a. in that year's prices

have been found from the capital side in 1980/81 and 1981/82.

But as I said in my minute of 21 July, we cannot go on milking the capital programme. We have therefore put the BBC on notice (without as yet instructing them) that they must start to make savings in current operations reaching £1.7m p.a.

from 1982/83 onwards. This would mainly be by abolishing the ranscription Service (tapes of cultural and other programmes

/distributed

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