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4.
5.
As background I also enclose:
the relevant Broadcasting Assessment (annex B) following the last review in 1986;
the FCO/BBC Statement of Objectives for the World Service (annex C) against which we have to assess the effectiveness of the Far Eastern Service.
The total cost of the Far Eastern Service in 1987/88 (the latest figures available) was some £2.2m of which Japanese was £0.2m, Mandarin/Cantonese £0.7m, Indonesian/ Malay £0.4m, Thai £0.2m, Vietnamese £0.2m and management of the Service £0.4m. These figures represent the amounts that would be saved if the Service was closed, but do not include costs of transmission (£0.2m) or the Service's share of central BBC costs, little, if any, of which would be reduced if the Far Eastern Service ceased to exist. We estimate that these are in the region of £2m for the Far Eastern Service.
6.
As I think you know, the terms of our funding for the BBC World Service are such that any savings resulting from a change in the Prescription for the World Service will normally go to higher priority BBC Services.
We can reduce one BBC Service and boost another; it is much more difficult, except in the long term, to switch funds from the World Service to other Diplomatic Service or British Council activities.
7. In my teleletter of 20 September to you (not to all), I referred to the results of the professional audience survey commissioned by the BBC in Japan, which were expected shortly. I enclose a copy of the survey which has only just emerged. It reveals a relative small and declining audience for the Japanese Service with the World Service in English doing only marginally better, rather confirming the comments in your letter of 8 January 1988. I should be grateful if your return would comment specifically on the continued value of the Japanese Service in the light of this new information; this will be a major item at the review meeting and form a basis for advice to Ministers on whether to reduce or abolish the Service in the 1989 Prescription round at the end of the year. As you may know, the Government decided that provision of start-up funds for a BBC World
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