SALAHN

K. DEFENCE COSTS AGREEMENT

1.

General

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The House will understand that the Defence Costs Agreement with

Hong Kong is primarily a matter for my rt hon Friend the Secretary

of State for Defence.

The new

It

I am very pleased that a new arrangement has been reached with the Hong Kong Government on sharing of defence costs. apport ionment of 65:35 in place of 75.25 is fair and realistic. was the outcome of long and tough negotiations I believe it recognises the constraints and meets the needs of both sides.

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