TNAG-1077-FCO40-1327-Broadcasting-in-Hong-Kong-proposed-BBC-relay-station-1981 — Page 87

A

PA

MICK JOIDENTIAL

BBC relay

RECEIVED BY REURY NO. 51 Mas

24,

24 JUN 1981

DESK OFFICER

Private SecretaEX

PA

A

REGISTRY Action Takaj!

17

Mr Williams JM4.6

Para 6 overleaf,

Pl.see

This seems

to make all

Mascare

Ply 24/6 the necessary points,

SECRETARY OF STATE'S LUNCH WITH MR HOWARD, CHAIRMAN OF BBC, 25 JUNE

1.

You asked for a note.

محمد

246

The lunch takes place on the same day

as Mr. Ridley's answer to a Written PQ about our plans for BBC External Services' finances; attached is the draft approved by Mr. Ridley with the last sentence still being negotiated with the (* Treasury. The Chief Secretary is unwilling to allow any precise agreed.) indication of the new Government money available for the capital programme before the autumn survey exercise (when we should know if the BBC will make the required cuts by 1982/83).

* now

2. The Leader of the House advised that the statement be made

as soon as possible after Mr. Ridley's talk with BBC management on 23 June to avoid leaks and the launching of a BBC lobbying

campaign. No oral statement can be fitted in before next week but we are briefing the Prime Minister in case, she is asked any supplementaries on 25 June.

3. On 23 June Mr. Ridley told Mr. Muggeridge of the BBC that the entire capital programme was approved in principle provided the BBC made certain savings totalling £3.Om in cash terms.. These savings would come from ending the subsidy to the Transcription Services and the vernacular services to France, Spain, Italy and Malta (all previously mentioned informally to BBC) and to Brazil, Somalia and Burma (not previously mentioned). Mr. Muggeridge's reaction was very hostile. He dismissed our concession on capital as merely restoring the cuts we made in 1979 (in fact we are being more generous than that). He claimed the reduction of 7 out of 39, vernaculars would seriously diminish the BBC's standing and meet with opprobium throughout the world. Mr. Ridley stressed our determination to improve audibility and the FCO's right to prescribe hours and languages in return for the BBC's right to total editorial independence.

4.

Mr. Ridley later saw the Chairman and Secretary of the Conservative Backbench Media Committee, Mr. Johnson Smith and Mr. Brinton, who thought our proposals were on the right lines.

/Mr.

CONFIDENTIAL