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Bonn OKs arms increase a bit below NATO goal

The West German cabinet has approved a 2.2 percent increase in defense spending in real terms next year, bigger than first planned but less than NATO's target of a 3 percent rise. The cabinet endorsed plans for 4.2 percent overall increase in government expenditure but modified the budget structure to make an extra $350 million available for defense, informed sources said. West Germany, the most affluent of the European NATO countries, has been under pressure from the United States to meet the target and set an example for remaining members of the alliance.

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