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(This law has been amended
New version will be posted asap)
Note:
This is the text of H.R. 3107 as signed into law by President Clinton
on August 5, 1996. We are aware of the misnumbering in Section 5 (f), but the copy of H.R.
3107 we received contained said error and we did not tamper with the text.
Iran and Libya Sanctions Act of 1996
H.R.3107
One Hundred Fourth Congress of the United States of
America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act To impose sanctions on persons making certain investments
directly and significantly contributing to the enhancement of the ability of Iran or Libya
to develop its petroleum resources, and on persons exporting certain items that enhance
Libya's weapons or aviation capabilities or enhance Libya's ability to develop its
petroleum resources, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SEC. 1. SHORT TITLE.
This Act may be cited as the `Iran and Libya Sanctions Act of 1996'.
SEC. 2. FINDINGS.
The Congress makes the following findings:
- (1) The efforts of the Government of Iran to acquire weapons of mass
destruction and the means to deliver them and its support of acts of international
terrorism endanger the national security and foreign policy interests of the United States
and those countries with which the United States shares common strategic and foreign
policy objectives.
-
- (2) The objective of preventing the proliferation of weapons of mass
destruction and acts of international terrorism through existing multilateral and
bilateral initiatives requires additional efforts to deny Iran the financial means to
sustain its nuclear, chemical, biological, and missile weapons programs.
-
- (3) The Government of Iran uses its diplomatic facilities and
quasi-governmental institutions outside of Iran to promote acts of international terrorism
and assist its nuclear, chemical, biological, and missile weapons programs.
-
- (4) The failure of the Government of Libya to comply with Resolutions
731, 748, and 883 of the Security Council of the United Nations, its support of
international terrorism, and its efforts to acquire weapons of mass destruction constitute
a threat to international peace and security that endangers the national security and
foreign policy interests of the United States and those countries with which it shares
common strategic and foreign policy objectives.
SEC. 3. DECLARATION OF POLICY.
(a) POLICY WITH RESPECT TO IRAN- The Congress declares that it is the
policy of the United States to deny Iran the ability to support acts of international
terrorism and to fund the development and acquisition of weapons of mass destruction and
the means to deliver them by limiting the development of Iran's ability to explore for,
extract, refine, or transport by pipeline petroleum resources of Iran.
(b) POLICY WITH RESPECT TO LIBYA- The Congress further declares that it
is the policy of the United States to seek full compliance by Libya with its obligations
under Resolutions 731, 748, and 883 of the Security Council of the United Nations,
including ending all support for acts of international terrorism and efforts to develop or
acquire weapons of mass destruction.
SEC. 4. MULTILATERAL REGIME.
(a) MULTILATERAL NEGOTIATIONS- In order to further the objectives of
section 3, the Congress urges the President to commence immediately diplomatic efforts,
both in appropriate international fora such as the United Nations, and bilaterally with
allies of the United States, to establish a multilateral sanctions regime against Iran,
including provisions limiting the development of petroleum resources, that will inhibit
Iran's efforts to carry out activities described in section 2.
(b) REPORTS TO CONGRESS- The President shall report to the appropriate
congressional committees, not later than 1 year after the date of the enactment of this
Act, and periodically thereafter, on the extent that diplomatic efforts described in
subsection (a) have been successful. Each report shall include:
- (1) the countries that have agreed to undertake measures to further the
objectives of section 3 with respect to Iran, and a description of those measures; and
-
- (2) the countries that have not agreed to measures described in paragraph
(1), and, with respect to those countries, other measures (in addition to that provided in
subsection (d)) the President recommends that the United States take to further the
objectives of section 3 with respect to Iran.
(c) WAIVER- The President may waive the application of section 5(a) with
respect to nationals of a country if:
- (1) that country has agreed to undertake substantial measures, including
economic sanctions, that will inhibit Iran's efforts to carry out activities described in
section 2 and information required by subsection (b)(1) has been included in a report
submitted under subsection (b); and
-
- (2) the President, at least 30 days before the waiver takes effect,
notifies the appropriate congressional committees of his intention to exercise the waiver.
(d) ENHANCED SANCTION
(1) SANCTION- With respect to nationals of countries
except those with respect to which the President has exercised the waiver authority of
subsection (c), at any time after the first report is required to be submitted under
subsection (b), section 5(a) shall be applied by substituting `$20,000,000' for
`$40,000,000' each place it appears, and by substituting `$5,000,000' for `$10,000,000'.
(2) REPORT TO CONGRESS- The President shall report to the
appropriate congressional committees any country with respect to which paragraph (1)
applies.
(e) INTERIM REPORT ON MULTILATERAL SANCTIONS; MONITORING- The President,
not later than 90 days after the date of the enactment of this Act, shall report to the
appropriate congressional committees on:
- (1) whether the member states of the European Union, the Republic of
Korea, Australia, Israel, or Japan have legislative or administrative standards providing
for the imposition of trade sanctions on persons or their affiliates doing business or
having investments in Iran or Libya;
-
- (2) the extent and duration of each instance of the application of such
sanctions; and
-
- (3) the disposition of any decision with respect to such sanctions by the
World Trade Organization or its predecessor organization.
SEC. 5. IMPOSITION OF SANCTIONS.
(a) SANCTIONS WITH RESPECT TO IRAN- Except as provided in subsection
(f), the President shall impose 2 or more of the sanctions described in paragraphs (1)
through (6) of section 6 if the President determines that a person has, with actual
knowledge, on or after the date of the enactment of this Act, made an investment of
$40,000,000 or more (or any combination of investments of at least $10,000,000 each, which
in the aggregate equals or exceeds $40,000,000 in any 12-month period), that directly and
significantly contributed to the enhancement of Iran's ability to develop petroleum
resources of Iran.
(b) MANDATORY SANCTIONS WITH RESPECT TO LIBYA-
- (1) VIOLATIONS OF PROHIBITED TRANSACTIONS- Except as provided in
subsection (f), the President shall impose 2 or more of the sanctions described in
paragraphs (1) through (6) of section 6 if the President determines that a person has,
with actual knowledge, on or after the date of the enactment of this Act, exported,
transferred, or otherwise provided to Libya any goods, services, technology, or other
items the provision of which is prohibited under paragraph 4(b) or 5 of Resolution 748 of
the Security Council of the United Nations, adopted March 31, 1992, or under paragraph 5
or 6 of Resolution 883 of the Security Council of the United Nations, adopted November 11,
1993, if the provision of such items significantly and materially:
- (A) contributed to Libya's ability to acquire chemical, biological, or
nuclear weapons or destabilizing numbers and types of advanced conventional weapons or
enhanced Libya's military or paramilitary capabilities;
-
- (B) contributed to Libya's ability to develop its petroleum resources; or
-
- (C) contributed to Libya's ability to maintain its aviation capabilities.
- (2) INVESTMENTS THAT CONTRIBUTE TO THE DEVELOPMENT OF PETROLEUM
RESOURCES- Except as provided in subsection (f), the President shall impose 2 or more of
the sanctions described in paragraphs (1) through (6) of section 6 if the President
determines that a person has, with actual knowledge, on or after the date of the enactment
of this Act, made an investment of $40,000,000 or more (or any combination of investments
of at least $10,000,000 each, which in the aggregate equals or exceeds $40,000,000 in any
12-month period), that directly and significantly contributed to the enhancement of
Libya's ability to develop its petroleum resources.
(c) PERSONS AGAINST WHICH THE SANCTIONS ARE TO BE IMPOSED- The sanctions
described in subsections (a) and (b) shall be imposed on:
(1) any person the President determines has carried out the activities
described in subsection (a) or (b); and
(2) any person the President determines:
(A) is a successor entity to the person referred to in paragraph (1);
(B) is a parent or subsidiary of the person referred to in paragraph (1)
if that parent or subsidiary, with actual knowledge, engaged in the activities referred to
in paragraph (1); or
(C) is an affiliate of the person referred to in paragraph (1) if that
affiliate, with actual knowledge, engaged in the activities referred to in paragraph (1)
and if that affiliate is controlled in fact by the person referred to in paragraph (1).
For purposes of this Act, any person or entity described in this
subsection shall be referred to as a `sanctioned person'.
(d) PUBLICATION IN FEDERAL REGISTER- The President shall cause to be
published in the Federal Register a current list of persons and entities on whom sanctions
have been imposed under this Act. The removal of persons or entities from, and the
addition of persons and entities to, the list, shall also be so published.
(e) PUBLICATION OF PROJECTS- The President shall cause to be published
in the Federal Register a list of all significant projects which have been publicly
tendered in the oil and gas sector in Iran.
(f) EXCEPTIONS- The President shall not be required to apply or maintain
the sanctions under subsection (a) or (b):
(1) in the case of procurement of defense articles or defense services:
(A) under existing contracts or subcontracts, including the exercise of
options for production quantities to satisfy requirements essential to the national
security of the United States;
(B) if the President determines in writing that the person to which the
sanctions would otherwise be applied is a sole source supplier of the defense articles or
services, that the defense articles or services are essential, and that alternative
sources are not readily or reasonably available; or
(C) if the President determines in writing that such articles or
services are essential to the national security under defense coproduction agreements;
(2) in the case of procurement, to eligible products, as defined in
section 308(4) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)), of any foreign
country or instrumentality designated under section 301(b)(1) of that Act (19 U.S.C.
2511(b)(1));
(3) to products, technology, or services provided under contracts
entered into before the date on which the President publishes in the Federal Register the
name of the person on whom the sanctions are to be imposed;
(4) to (A) spare parts which are essential to United States products or
production; (B) component parts, but not finished products, essential to United States
products or production; or (C) routine servicing and maintenance of products, to the
extent that alternative sources are not readily or reasonably available;
(6) to information and technology essential to United States products or
production; or
(7) to medicines, medical supplies, or other humanitarian items.
SEC. 6. DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanctioned person under section 5 are
as follows:
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO SANCTIONED PERSONS- The
President may direct the Export-Import Bank of the United States not to give approval to
the issuance of any guarantee, insurance, extension of credit, or participation in the
extension of credit in connection with the export of any goods or services to any
sanctioned person.
(2) EXPORT SANCTION- The President may order the United States
Government not to issue any specific license and not to grant any other specific
permission or authority to export any goods or technology to a sanctioned person under:
(i) the Export Administration Act of 1979;
(ii) the Arms Export Control Act;
(iii) the Atomic Energy Act of 1954; or
(iv) any other statute that requires the prior review and approval of
the United States Government as a condition for the export or reexport of goods or
services.
(3) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS- The United States
Government may prohibit any United States financial institution from making loans or
providing credits to any sanctioned person totaling more than $10,000,000 in any 12-month
period unless such person is engaged in activities to relieve human suffering and the
loans or credits are provided for such activities.
(4) PROHIBITIONS ON FINANCIAL INSTITUTIONS- The following prohibitions
may be imposed against a sanctioned person that is a financial institution:
(A) PROHIBITION ON DESIGNATION AS PRIMARY DEALER- Neither the Board of
Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may
designate, or permit the continuation of any prior designation of, such financial
institution as a primary dealer in United States Government debt instruments.
(B) PROHIBITION ON SERVICE AS A REPOSITORY OF GOVERNMENT FUNDS- Such
financial institution may not serve as agent of the United States Government or serve as
repository for United States Government funds. The imposition of either sanction under
subparagraph (A) or (B) shall be treated as 1 sanction for purposes of section 5, and the
imposition of both such sanctions shall be treated as 2 sanctions for purposes of section
5.
(5) PROCUREMENT SANCTION- The United States Government may not procure,
or enter into any contract for the procurement of, any goods or services from a sanctioned
person.
(6) ADDITIONAL SANCTIONS- The President may impose sanctions, as
appropriate, to restrict imports with respect to a sanctioned person, in accordance with
the International Emergency Economic Powers Act (50 U.S.C. 1701 and following).
SEC. 7. ADVISORY OPINIONS.
The Secretary of State may, upon the request of any person, issue an
advisory opinion to that person as to whether a proposed activity by that person would
subject that person to sanctions
under this Act. Any person who relies in good faith on such an advisory
opinion which states that the proposed activity would not subject a person to such
sanctions, and any person who thereafter engages in such activity, will not be made
subject to such sanctions on account of such activity.
SEC. 8. TERMINATION OF SANCTIONS.
(a) IRAN- The requirement under section 5(a) to impose sanctions shall
no longer have force or effect with respect to Iran if the President determines and
certifies to the appropriate congressional committees that Iran:
(1) has ceased its efforts to design, develop, manufacture, or acquire:
(A) a nuclear explosive device or related materials and technology;
(B) chemical and biological weapons; and
(C) ballistic missiles and ballistic missile launch technology; and
(2) has been removed from the list of countries the governments of which
have been determined, for purposes of section 6(j) of the Export Administration Act of
1979, to have repeatedly provided support for acts of international terrorism.
(b) LIBYA- The requirement under section 5(b) to impose sanctions shall
no longer have force or effect with respect to Libya if the President determines and
certifies to the appropriate congressional committees that Libya has fulfilled the
requirements of United Nations Security Council Resolution 731, adopted January 21, 1992,
United Nations Security Council Resolution 748, adopted March 31, 1992, and United Nations
Security Council Resolution 883, adopted November 11, 1993.
SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.
(a) DELAY OF SANCTIONS:
(1) CONSULTATIONS- If the President makes a determination described in
section 5(a) or 5(b) with respect to a foreign person, the Congress urges the President to
initiate consultations immediately with the government with primary jurisdiction over that
foreign person with respect to the imposition of sanctions under this Act.
(2) ACTIONS BY GOVERNMENT OF JURISDICTION- In order to pursue
consultations under paragraph (1) with the government concerned, the President may delay
imposition of sanctions under this Act for up to 90 days. Following such consultations,
the President shall immediately impose sanctions unless the President determines and
certifies to the Congress that the government has taken specific and effective actions,
including, as appropriate, the imposition of appropriate penalties, to terminate the
involvement of the foreign person in the activities that resulted in the determination by
the President under section 5(a) or 5(b) concerning such person.
(3) ADDITIONAL DELAY IN IMPOSITION OF SANCTIONS- The President may delay
the imposition of sanctions for up to an additional 90 days if the President determines
and certifies to the Congress that the government with primary jurisdiction over the
person concerned is in the process of taking the actions described in paragraph (2).
(4) REPORT TO CONGRESS- Not later than 90 days after making a
determination under section 5(a) or 5(b), the President shall submit to the appropriate
congressional committees a report on the status of consultations with the appropriate
foreign government under this subsection, and the basis for any determination under
paragraph (3).
(b) DURATION OF SANCTIONS- A sanction imposed under section 5 shall
remain in effect: (1) for a period of not less than 2 years from the date on which it is
imposed; or (2) until such time as the President determines and certifies to the Congress
that the person whose activities were the basis for imposing the sanction is no longer
engaging in such activities and that the President has received reliable assurances that
such person will not knowingly engage in such activities in the future, except that such
sanction shall remain in effect for a period of at least 1 year.
(c) PRESIDENTIAL WAIVER.
(1) AUTHORITY- The President may waive the requirement in section 5 to
impose a sanction or sanctions on a person described in section 5(c), and may waive the
continued imposition of a sanction or sanctions under subsection (b) of this section, 30
days or more after the President determines and so reports to the appropriate
congressional committees that it is important to the national interest of the United
States to exercise such waiver authority.
(2) CONTENTS OF REPORT- Any report under paragraph (1) shall provide a
specific and detailed rationale for the determination under paragraph (1), including:
(A) a description of the conduct that resulted in the determination
under section 5(a) or (b), as the case may be;
(B) in the case of a foreign person, an explanation of the efforts to
secure the cooperation of the government with primary jurisdiction over the sanctioned
person to terminate or, as appropriate, penalize the activities that resulted in the
determination under section 5(a) or (b), as the case may be;
(C) an estimate as to the significance:
(i) of the provision of the items described in section 5(a)
to Iran's ability to develop its petroleum resources, or
(ii) of the provision of the items described in section
5(b)(1) to the abilities of Libya described in subparagraph (A), (B), or (C) of section
5(b)(1), or of the investment described in section 5(b)(2) on Libya's ability to develop
its petroleum resources, as the case may be; and (D) a statement as to the response of the
United States in the event that the person concerned engages in other activities that
would be subject to section 5(a) or (b).
(3) EFFECT OF REPORT ON WAIVER- If the President makes a report under
paragraph (1) with respect to a waiver of sanctions on a person described in section 5(c),
sanctions need not be imposed under section 5(a) or (b) on that person during the 30-day
period referred to in paragraph (1).
SEC. 10. REPORTS REQUIRED.
(a) REPORT ON CERTAIN INTERNATIONAL INITIATIVES- Not later than 6 months
after the date of the enactment of this Act, and every 6 months thereafter, the President
shall transmit a report to the appropriate congressional committees describing:
(1) the efforts of the President to mount a multilateral campaign to
persuade all countries to pressure Iran to cease its nuclear, chemical, biological, and
missile weapons programs and its support of acts of international terrorism;
(2) the efforts of the President to persuade other governments to ask
Iran to reduce the presence of Iranian diplomats and representatives of other government
and military or quasi-governmental institutions of Iran and to withdraw any such diplomats
or representatives who participated in the takeover of the United States embassy in Tehran
on November 4, 1979, or the subsequent holding of United States hostages for 444 days;
(3) the extent to which the International Atomic Energy Agency has
established regular inspections of all nuclear facilities in Iran, including those
presently under construction; and
(4) Iran's use of Iranian diplomats and representatives of other
government and military or quasi-governmental institutions of Iran to promote acts of
international terrorism or to develop or sustain Iran's nuclear, chemical, biological, and
missile weapons programs.
(b) OTHER REPORTS- The President shall ensure the continued transmittal
to the Congress of reports describing:
(1) the nuclear and other military capabilities of Iran, as required by
section 601(a) of the Nuclear Non-Proliferation Act of 1978 and section 1607 of the
National Defense Authorization Act for Fiscal Year 1993; and
(2) the support provided by Iran for acts of international terrorism, as
part of the Department of State's annual report on international terrorism.
SEC. 11. DETERMINATIONS NOT REVIEWABLE.
A determination to impose sanctions under this Act shall not be
reviewable in any court.
SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES.
Nothing in this Act shall apply to any activities subject to the
reporting requirements of Title V of the National Security Act of 1947.
SEC. 13. EFFECTIVE DATE; SUNSET.
(a) EFFECTIVE DATE- This Act shall take effect on the date of the
enactment of this Act.
(b) SUNSET- This Act shall cease to be effective on the date that is 5
years after the date of the enactment of this Act.
SEC. 14. DEFINITIONS.
As used in this Act:
(1) ACT OF INTERNATIONAL TERRORISM- The term `act of international
terrorism' means an act: (A) which is violent or dangerous to human life and that is a
violation of the criminal laws of the United States or of any State or that would be a
criminal violation if committed within the jurisdiction of the United States or any State;
and (B) which appears to be intended:
(i) to intimidate or coerce a civilian population;
(ii) to influence the policy of a government by intimidation or
coercion; or
(iii) to affect the conduct of a government by assassination or
kidnapping.
(2) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate
congressional committees' means the Committee on Finance, the Committee on Banking,
Housing, and Urban Affairs, and the Committee on Foreign Relations of the Senate and the
Committee on Ways and Means, the Committee on Banking and Financial Services, and the
Committee on International Relations of the House of Representatives.
(3) COMPONENT PART- The term `component part' has the meaning given that
term in section 11A(e)(1) of the Export Administration Act of 1979 (50 U.S.C. App.
2410a(e)(1)).
(4) DEVELOP AND DEVELOPMENT- To `develop', or the `development' of,
petroleum resources means the exploration for, or the extraction, refining, or
transportation by pipeline of, petroleum resources.
(5) FINANCIAL INSTITUTION- The term `financial institution' includes:
(A) a depository institution (as defined in section 3(c)(1) of the
Federal Deposit Insurance Act), including a branch or agency of a foreign bank (as defined
in section 1(b)(7) of the International Banking Act of 1978);
(B) a credit union;
(C) a securities firm, including a broker or dealer;
(D) an insurance company, including an agency or underwriter; and
(E) any other company that provides financial services.
(6) FINISHED PRODUCT- The term `finished product' has the meaning given
that term in section 11A(e)(2) of the Export Administration Act of 1979 (50 U.S.C. App.
2410a(e)(2)).
(7) FOREIGN PERSON- The term `foreign person' means:
(A) an individual who is not a United States person or an alien lawfully
admitted for permanent residence into theUnited States; or
(B) a corporation, partnership, or other nongovernmental entity which is
not a United States person.
(8) GOODS AND TECHNOLOGY- The terms `goods' and `technology' have the
meanings given those terms in section 16 of the Export Administration Act of 1979 (50
U.S.C. App. 2415).
(9) INVESTMENT- The term `investment' means any of the following
activities if such activity is undertaken pursuant to an agreement, or pursuant to the
exercise of rights under such an agreement, that is entered into with the Government of
Iran or a nongovenmental entity in Iran, or with the Government of Libya or a
nongovernmental entity in Libya, on or after the date of the enactment of this Act:
(A) The entry into a contract that includes responsibility for the
development of petroleum resources located in Iran or Libya (as the case may be), or the
entry into a contract providing for the general supervision and guarantee of another
person's performance of such a contract.
(B) The purchase of a share of ownership, including an equity interest,
in that development.
(C) The entry into a contract providing for the participation in
royalties, earnings, or profits in that development, without regard to the form of the
participation.
The term `investment' does not include the entry into, performance, or
financing of a contract to sell or purchase goods, services, or technology.
(10) IRAN- The term `Iran' includes any agency or instrumentality of
Iran.
(11) IRANIAN DIPLOMATS AND REPRESENTATIVES OF OTHER GOVERNMENT AND
MILITARY OR QUASI-GOVERNMENTAL INSTITUTIONS OF IRAN- The term `Iranian diplomats and
representatives of other government and military or quasi-governmental institutions of
Iran' includes employees, representatives, or affiliates of Iran's:
(A) Foreign Ministry;
(B) Ministry of Intelligence and Security;
(C) Revolutionary Guard Corps;
(D) Crusade for Reconstruction;
(E) Qods (Jerusalem) Forces;
(F) Interior Ministry;
(G) Foundation for the Oppressed and Disabled;
(H) Prophet's Foundation;
(I) June 5th Foundation;
(J) Martyr's Foundation;
(K) Islamic Propagation Organization; and
(L) Ministry of Islamic Guidance.
(12) LIBYA- The term `Libya' includes any agency or instrumentality of
Libya.
(13) NUCLEAR EXPLOSIVE DEVICE- The term `nuclear explosive device' means
any device, whether assembled or disassembled, that is designed to produce an
instantaneous release of an amount of nuclear energy from special nuclear material (as
defined in section 11(aa) of the Atomic Energy Act of 1954) that is greater than the
amount of energy that would be released from the detonation of one pound of
trinitrotoluene (TNT).
(14) PERSON- The term `person' means:
(A) a natural person;
(B) a corporation, business association, partnership, society, trust,
any other nongovernmental entity, organization, or group, and any governmental entity
operating as a business enterprise; and
(C) any successor to any entity described in subparagraph (B).
(15) PETROLEUM RESOURCES- The term `petroleum resources' includes
petroleum and natural gas resources.
(16) UNITED STATES OR STATE- The term `United States' or `State' means
the several States, the District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, American Samoa, Guam, the United States
Virgin Islands, and any other territory or possession of the United States.
(17) UNITED STATES PERSON- The term `United States person' means:
(A) a natural person who is a citizen of the United States or who owes
permanent allegiance to the United States; and
(B) a corporation or other legal entity which is organized under the
laws of the United States, any State or territory thereof, or the District of Columbia, if
natural persons described in subparagraph (A) own, directly or indirectly, more than 50
percent of the outstanding capital stock or other beneficial interest in such legal
entity.
Speaker of the House of Representatives. Vice President of the United
States and President of the Senate.
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