text: subitems of "Construction". Vo suggestions were made, either to remove or to modify the structure of subitems under the cost category (row 2.2). (b) Panel's assessment 79. The fact that a number of countries did not submit detailed data under 'Construction" is not in the Panel's opinion a sufficient reason to remove any of the subitems in cluestion. The Panel recommends therefore that this par-t of the matrix be lrept as it is. Research and develonment (roIr 3) (a) Respondents' comments 80. The Netherlands reported the total amount for "Research and development" but explained that "for technical reasons" these expenditures had been included in the appropriate "procurement" items. Sweàen expressed concern at the fact that basic research would probably be identified and reported according to very different principies by different countries. The United States stated that research and development covered the support for R and D activities and projects not related to items approved for procurement or deployment. (b) Panel's assessment ., 81. The Panel recognizes that some difficulties may arise in providing data undefi categories 3.1 and 3.2. In order to help provide a basis for further improvement& in this part of the matrix, the Panel considers further reporting, while ;;, continuing to employ the aggregate category 3, should provide data or suggest definitions for such alternative categories as may be available and useful. $~ " I 1: -23- C. Quantitative analysis of replies 02. The matrix has a pyramidal structure which allows countries to report their militar-y expenditures on three levels of aggregation. This possibility was explicitly recognized in the guidelines for filling.in the matrix. Nevertheless, a majority of the participating countries did submit information at the most detailed of the three levels of aggregation. Four of the remaining countries have 
analysis: The text appears to be discussing the reporting of military expenditures by countries, specifically the structure and content of a matrix used to collect this information. The language used is technical and refers to categories such as "Construction", "Research and development", and "Procurement", which suggests a focus on economic and military activities rather than other areas such as healthcare, education, or culture.