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• THE BRITISH COUNCIL

10 SPRING GARDENS LONDON SW1A 2BN

01 - 930 8466

From The Chairman

Sir Charles Troughton CBE MC TD

The Rt Hon Margaret Thatcher MP10 Downing StreetLondon SW1 I May 1984

I)•-\.. +'. t

I was sad to miss our meeting yesterday but of course Iabsolutely understand the pressures on time whichconfront you. Indeed I hate adding to them with ourproblems and only do so because I believe thatBritish interests are being affected more by mis-understanding or mistake than anything else; andbecause your stalwart support of us and your under-standing of our work leads me to believe that youwould wish to know my views, for you have alwaysbeen exceptionally kind and considerate to me.

I attach our needs on a separate piece of paper. If theseare not met, we will have suffered a 26% cut since1980 in real terms. If no change is made in thepresent method of paying our way and this continuesinto next year, we will suffer a further cut whichwill bring the 26% cut up to 33%. No organisationcan stand this sort of attrition. I am veryconfident of our financial controls and budgetingskills since the Seebohm/Chorley review and statethis with absolute confidence.

This year we are celebrating our Fiftieth Anniversary, asyou know, with all sorts of high level festivities,including a visit here by Her Majesty The Queen, aconcert at the Royal Festival Hall (paid for entirelyby the private sector), a dinner given by you. Ibelieve that after years of persistent work, themorale and the efficiency of the Council is on anentirely different basis, and these celebrations willgreatly add to the confidence of all who work here.A setback now would undo all the reforms and enthusiasmwe have managed to achieve and impart.

- 2 -

I am now in my last few months here before I retire. Isee ahead great opportunities for Britain abroadthrough the British Council. I cannot believe thatthese opportunities should be abandoned for what arein national terms relatively small sums.

I am going to Wester Ross tonight but would return at onceif you wanted to see me.

•

y

ANNEX

The British Council's grant for 1984/85 should includeprovision for

the carrying forward of its 1983/84Spring Supplementary £2.6m

the rent increase at its SpringGardens premises (part year) £1.4m

arrangements for a refund of provenrisen costs incurred overseas,nett of exchange rate movements E2 .1m

Adequate provision needs to be made for subsequent years in the Public Expenditure Survey to enable the Council to plan ahead and operate efficiently.

Sir Charles TroughtonI May 1984