more than 30 States have done so. It would be desirable to continue to widen the use of the system for standardized reporting of military expenditures, since this is likely not only to expand the general knowledge of the matter and to increase international confidence which would result from a widespread participation by States in this system, but also because it might facilitate future negotiations on a reduction of military expenditures. 144. Moreover, military expenditures would have to be understood in real terms, taking into account and allowing for inflation rates of the negotiating Parties, both overall and with regard to the military sector itself, Any agreement to reduce military expenditures would, therefore, need to deal with military expenditures in constant prices. This requirement is of a growing importance the longer the period is over in which the reductions should be carried Out. 145. Thus, the Group has endeavoured to explore the different kinds of methodological questions involved in intertemporal comparisons, suggesting ways in which they might be resolved. This has been carried out with future and practical negotiations in mind. 146. Although a country’s military expenditures may not fully reflect its military capability or even less its degree of national security, it might be presumed, however, that these three elements are closely linked together. Negotiating parties would undoubtedly have a special interest in comparing among themselves their levels of military expenditures. Therefore, not only intertemporal comparisons would have to be made, but there would also be a need for international comparisons involving slightly different methodological problems. 147. Thus, the Group has dealt with these problems at some length trying by means of the same practical exercise to single out the difficulties and the possibilities of constructing appropriate tools for international comparisons of military 
**Analysis**
The text appears to be discussing the reporting and comparison of military expenditures among nations, with the goal of facilitating future negotiations on reducing military spending. The language used is technical and focuses on the methodological challenges of comparing military expenditures across different countries and time periods. This suggests that the category is likely related to international relations, economics, or governance.

**Category**
International trade, Economic development