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"The agreement accords with the ability of Hong Kong to pay

a larger contribution toward a garrison than in the past."

He said that in planning government expenditure for the

next year, it had been estimated that $205 million would be required for

Hong Kong's defence contribution. This figure was arrived at before

the terms of the new agreement were negotiated.

"If the economy continues to pick up there is no reason why

the Government cannot absorb the additional contributions without

seriously affecting the long-term planning of our social services

programme, "Mr. Jeaffreson said.

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