TNAG-1077-FCO40-1327-Broadcasting-in-Hong-Kong-proposed-BBC-relay-station-1981 — Page 80

Mr Ridley

and there were people he wished to speak to himself.

commented that perhaps we should have told the BBC five minutes

before the announcement. Mr Muggeridge did not think that that would

have made much difference in this case. It was striking that some

of the services which had not been previously mentioned as possible

candidates for cuts had been the subject of rumours recently in Bush House. If the FCO could not guarantee confidentiality, the BBC'

could not be expected to do so. Mr Gregson referred to the BBC

management's need to talk to senior staff and the unions. Mr Muggeridge said that these people would be asked to maintain

Mr Ridley confidentiality, but he could not be sure that they would.

pointed out that the delay in making the statement was intended to

give the BBC time for such consultations. But we could always

advance the announcement,

if necessary.

19.

Mr Muggeridge said he wished to be blunt about his position.

He was totally and utterly shocked at the Government's proposals.

Mr Ridley stressed that the FCO must take control of the vernacular

services, which it prescribed. Mr Muggeridge said that up till now

there had been a superb relationship between the BBC and the

Government. Mr Ridley saw no reason why this should be affected.

The Government completely supported the BBC's editorial freedom,

but the BBC must recognise that the FCO could only prescribe services

which the nation could afford. The excellent relationship to which

Mr Muggeridge had referred would be harmed if this part of the

bargain were challenged by the BBC. Mr Muggeridge suspected that

the BBC would not need to make the challenge: it would be made on

the BBC's behalf. Mr Ridley said that that sounded like a threat.

It was not the Government's intention to depart from the principle

of editorial freedom, which was the basis of an excellent service.

But the BBC must recognise that the FCO was in charge of the money,

and it must also be sensitive for the need for economy.

29 June 1981

-

10

-

CONFIDENTIAL

Information Department