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The wan't briefel at all!
position. Mr Ridley suggested that the Prime Minister had probably not been fully briefed on the details of the proposal for the Hong Kong relay station and had been expressing a kindly interest in general terms. Lord N Gordon Lennox said that we would have to be very chary of appearing to lean on the Hong Kong Government on whose goodwill we relied in a number of different areas. Nevertheless, FCO could look into the possibility of influencing their position. Mr Ridley said it would be a question of judging the right moment, perhaps when the UK could offer a quid pro quo. He undertook to look into the question in due course.
Bush House Modernisation
2. Mr Ridley said that the report of the FCO's Consultants Ware MacGregor was expected in mid-February but they had already suggested in an interim report that there might be virtue in vacating Bush House and moving to new premises. Mr Muggeridge said that the BBC were not in love with Bush House and would certainly not rule out a move to purpose-built new premises but if this was to happen planning should start immediately. The capital cost of equipping new premises would be enormous. Mr Ridley said that the choice must fall to the least expensive course; in assessing this there would be a need to balance the various savings in running and capital costs. Mr Muggeridge said that on balance the BBC would prefer to stay in a modern- ised Bush House, which if the present plans were followed through, would be a viable proposition in 7-8 years time. Mr Ridley said that if the modernisation plan was carried out there could be no question of moving from Bush House. Mr Bell said that the BBC was coming under pressure from the health authorities to take urgent steps to rectify the blue asbestos problem. Mr Muggeridge said that an early decision was required on whether or not the new lease for Bush House should be signed. The landlords had said that if it was not completed within three weeks they would wish to go to arbitration. He understood that Ware MacGregor had proposed that there should be a break-clause in the new lease, but this would undoubtedly increase the rent demanded. It also had to be remembered that a break-clause would be mutual and the landlords' use of it might be detriment- al to the BBC.
3. Mr Ridley said that at this stage the preliminary indica- tions argued against moving from Bush House. Mr MacInnes said that it appeared that the modernisation of Bush House at the lowest possible cost should be a first priority on capital expenditure together with the Orfordness Transmitting Station. It looked as if the Hong Kong relay station would have to be a low priority project. He asked if the landlords would be content to delay the signature of the new lease until say one week after Ware MacGregor had completed their report. Mr Bell said that he believed the landlords would accept this proposal. Mr Ridley added that the only reason to move from Bush House would be if it were clearly cheaper than staying. FCO would ask Ware MacGregor to report on this point as soon as possible and also to indicate what their alternative proposals for studio re-equipment would save on the BBC's capital requirement for £14m of new money for Bush House modernisation. Mr Dennay said that his discussions with Ware MacGregor led him to believe that their recommendations would not result in much change.
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Mr Muggeridge
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