TNAG-1851-FCO40-2626-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 35

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44

3 May 1989]

MINUTES OF EVIDENCE TAKEN BEFORE

[Continued

from the day of the first payment. The third and final instalment was to be paid once both sides were satisified, on the advice of architects, that the refurbishment was half-way towards completion. The Iranian Government agreed to pay the British Government the sum of 120 million rials, in compensation for damage to the British Embassy's residential compound in Tehran. The payment was to be made in three stages simultaneously with and in the same proportions as the payments made by the British Government to Iran. In addition, the British Government undertook to settle the claims made by the Westminster City Council against the Iranian Embassy for shoring up and making safe the premises at 16 Princes Gate.

In December 1988 the British Government paid the sum of £200,000 to the Westminster City Council in settlement of its claim. As no contract has yet been awarded by Iran, and refurbishment work on the premises at 16 Princes Gate has not begun, no payment has yet been made under the Compensation Agreement to Iran.

13. Can you provide a breakdown of Vote 2, subhead C4 (8) on Eastern Europe, CSCE etc?

British Youth Council Women's Organisations

Publisher's Associations

Central Bureau for Education Visits and Exchanges (CBEVE)

Royal Society

British Academy

British Council Unallocated

TOTAL

£

3,000

6,000

4,000

11,000

51,500

23,000

50,000

22,500

171,000

14. Can you explain the reason for the reduction in capital expenditure of about 3 per cent?

BBC World Service capital expenditure in 1989-90 for broadcasting and monitoring was fixed in the 1987 public expenditure round for the three year period 1988-89 to 1990-91 at an appropriate level to enable the BBC to plan and sustain a capital programme agreed with the FCO in accordance with foreign policy priorities and objectives. There has ben no subsequent change in the provision for 1989-90. As in other years of the Triennium, it reflects the sum of the different expenditure profiles of a number of projects, each of which is at a different stage of implementation.

15. Can you report on the progress of the 10 year audibility improvement programme begun in 1981?

The 1981 ten year audibility programme is proceeding as planned. Some £106 million has been spent since 1981 on this programme and to modernise Bush House and the Monitoring Service.

In the last year, the new Seychelles relay station covering East Africa was completed on time and on budget. Work on the addition of two transmitters at the Ascension Island relay is on target for completion later this year to provide improved coverage of Africa and South America.

Beyond the 1981 audibility programme, the Government attaches importance to improving BBC World Service audibility where to do so is consistent with foreign policy priorities and objectives. Provision has been made for £55 million to be spent over the next two financial years on continuing improvements. Current priorities are to improve audibility in the Sub-Continent and Southern Africa.

Possibilities for achieving this are being actively pursued with the BBC.

Vote 4 (British Council)

16. Can you explain the reason for the increase in subhead C (services and material) from £11,865,000 in 1988-89 to £16,270,000 in 1989-90?

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