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K.
DEFENCE COSTS AGREEMENT
Negotiations have been taking place between the British and Hong Kong Governments about arrangements to apply after the expiry of the Defence Costs Agreement on 31 March this year. I believe we now have a satisfactory basis for agreement on sharing costs with Hong Kong. Experts from both sides now need to get together to put the details of a new agreement on paper. (As is often the case, sorting out the details is taking some time.)
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