aggeration.
BBC External Services were still receiving well
over £50 million a year in the Grant-in-Aid.
They must accept
that this was as much as we could afford in present circumstances.
Mr Muggeridge described this as chicken-feed in relation to other
recent Government payments to industry. He did not accept that
the Government could not afford more.
11.
Mr Dennay pointed out that increasing capital expenditure would
lead to an increase in operating costs. Mr Ridley said that account
had been taken of this in the revenue projections in the table The
package included consequential expenditure. Mr Diamond commented
that, if capital expenditure slipped, so would operating expenditure.
!
12.
Turning to the proposal for a relay station in Hong Kong,
Mr Ridley recalled that there were now two possible sites. It
should not be difficult to persuade the Hong Kong Government to
make some site available. But at what price, and what would the
station cost to build? He had been advised that, if the scheme
were seen to be only in the interest of the BBC and the British
Government, the Hong Kong Government would be unlikely to contribute.
However, if the FCO could demonstrate that there would be benefits
in relations to the future of Hong Kong, the Hong Kong Government
might be prepared to donate the land or even to contribute to the
cost of constructions He had already had preliminary discussions
with the Governor of Hong Kong. What was now required wasra
skilfully drafted letter from the Secretary of State to the Governor,
pointing out the advantages to Hong Kong. But we could not go
further than the truth. Did the BBC have any indication of the cost
of the land, and of constructing the station? Mr Muggeridge thought
that the total cost might be in the region of £6.5 million.
*
Mr Dennay said that estimates of the cost of the land varied between
£500,000 and £3 million. It all depended on the price which the
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