SALAHN
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3.
Perceptions in Hong Kong, passage through Finance Committee
It is understandable that some in Hong Kong should have wished for a more favourable outcome for Hong Kong. But the new agreement is the outcome of genuine and tough negotiations, at a time when our defence budget is coming under increasing pressure.
Our defence budget has declined by 6% in real terms since 1986, and we expect that it will remain static in real terms in the next
few years.
At the same time, our worldwide defence commitments have
not been reduced.
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