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Federal Court rules Wheat Board can keep barley monopoly

Unionist
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Joined: Dec 11 2005
 

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Unionist
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Joined: Dec 11 2005
Excellent news:

quote:A judge has struck down the federal government's move to strip the Canadian Wheat Board of its monopoly on western barley sales.

In a ruling issued Tuesday, Federal Court Judge Dolores Hansen said the government overstepped its authority in trying to end the monopoly through a simple cabinet order. [...]

The government changed the board's barley-handling through regulations approved by the Conservative cabinet.

Critics successfully argued the change can only be made by passing a law in Parliament — something that could be blocked by the opposition.

Source.


Liberaler
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Joined: May 7 2004
quote:Originally posted by unionist:
Excellent news:

Source.

Looks good on the Conservatives


Unionist
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Joined: Dec 11 2005
History repeats itself. Thank goodness for our non-elected judiciary:

quote:The CWB had in 1949 also become the sole marketing agency for oats and barley; however, oats were removed from CWB jurisdiction on 1 August 1989 and barley bound for the United States was removed on 1 August 1993 by Order in Council. On 10 September, within ten days of its date of application, the Federal Court dismissed this decision on the grounds that such a change could be made only through legislation passed by Parliament, not by Cabinet order. The challenge had come from Prairie Pools Inc., which argued that the CWB’s orderly marketing powers were too historic and fundamentally important to be arbitrarily altered by Cabinet decree. Because there were indications that a solid majority of growers opposed the removal of barley from the CWB’s jurisdiction, producers called for a plebiscite on the issue. On 20 November 1993, the new Liberal government announced it was dropping a court appeal of the 10 September decision (which had been initiated by the outgoing Conservative government). The barley issue continued to fester until a referendum in early 1997 demonstrated that 63% of Prairie farmers supported marketing their barley through the Board.

John K
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Joined: Nov 30 2002
What a pleasant surprise.

More details - including a link to the Federal Court judgement - are available here:
CWB vs. Harper Cons


Farmpunk
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Joined: Jul 25 2006
Yes, excellent news. Indeed, it's always good news to hear that farmers aren't allowed to have more than one marketing choice at their disposal.

Really, why would the CWB allow farmers the option to market their own products? A silly idea: farmers aren't smart or educated enough to make their own economic decisions. Besides, the board's trade with Algeria might get hurt and the farmers might get current market pricing. Can't have that. Imagine what farmers would do with independence. They might even sell to the USA.


Unionist
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Joined: Dec 11 2005
quote:Originally posted by Farmpunk:
A silly idea: farmers aren't smart or educated enough to make their own economic decisions.

By golly - why stop at farmers? What about workers?

Who needs trade unions?

Imagine the notion individual workers aren't smart and educated enough to negotiate their own terms and conditions of employment with multinational corporations... or governments...

Unions are obviously just an insult to the intelligence of employees.

Too bad barley farmers don't appreciate their own business acumen. Last time they had a fair vote (1997), they voted 63% against making their own economic decisions.

It took a rigged vote, with no voters' list, numbered ballots (!), exclusion of 16,000 voters because they hadn't sold to the CWB in two years, firing the head of the Wheat Board, muzzling the free speech of the elected directors, a phoney "question", and a self-serving interpretation of the vote results, to come up with Mr. Strahl's draconian action - which was then ruled illegal by the courts.

It doesn't take brains or education for an individual farmer to market her own barley. It takes wealth. In my book, the interests of the non-wealthy trump those of the wealthy every day of the week. Sorry to show my bias here.

[ 02 August 2007: Message edited by: unionist ]


non sequitur
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quote:Originally posted by unionist:

By golly - why stop at farmers? What about workers?

Who needs trade unions?

Imagine the notion individual workers aren't smart and educated enough to negotiate their own terms and conditions of employment with multinational corporations... or governments...

Unions are obviously just an insult to the intelligence of employees.

Too bad barley farmers don't appreciate their own business acumen. Last time they had a fair vote (1998), they voted 63% against making their own economic decisions.

It took a rigged vote, with no voters' list, numbered ballots (!), exclusion of 16,000 voters because they hadn't sold to the CWB in two years, firing the head of the Wheat Board, muzzling the free speech of the elected directors, a phoney "question", and a self-serving interpretation of the vote results, to come up with Mr. Strahl's draconian action - which was then ruled illegal by the courts.

It doesn't take brains or education for an individual farmer to market her own barley. It takes wealth. In my book, the interests of the non-wealthy trump those of the wealthy every day of the week. Sorry to show my bias here.

[ 02 August 2007: Message edited by: unionist ]

I thought the last time the farmers had a choice by vote they took oats out of the CWB...


quelar
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Joined: Jun 7 2002
They've voted on this a few times, each time siding on keeping the wheat board.

Sure, there are a couple of farms who don't like it, but the majority does. So too bad.

Anyway, what do the farmers think is going to happen? It's not like suddenly their prices are going to go way up (they're already on their way up due to biofuels) and have access to more markets.

All that's going ot happen is a number of 'competing' corporate run wheat organizations are going to jump into the game and shift the profit away from the wheat board and over to the corporations.


Frustrated Mess
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Joined: Feb 23 2005
How did the Wheat Board come about? I think a little historical context is important.

I appreciate that in the last few years wheat and barley prices have been good and some farmers want to bust the marketing board. They have before under similar circumstances. But then, surprise, surprise, prices went soft and farmers whined to governments to help and the wheat board was re-established.

I think if farmers want to kill the wheat board for short term greed they should be allowed to. But I think they should also be informed, very clearly, that when prices again go soft, they are not to return to government and the taxpayer for a bailout. If they want to play by free market rules, then play by free market rules with the full understanding that the free market produces more losers than winners in the long term. Make it plain: Don't come back hat in hand!

That should equally apply to all farmers including tobacco farmers who made investments when the writing was on the wall.

Farmers always talk the talk about free markets and capitalism and many hate tax dollars supporting the poor and working poor, but they become dyed in the wool pink proponents of the welfare state when it is their own incomes and property that are at stake.

How much are farmers currently demanding from all levels of government? In the billions. BILLIONS!

Why? As proponents of free market economies they should suck it up and sell to mega-corps or land speculators. That is what free market capitalism is all about. So what is their problem?


Farmpunk
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Unionist, crap, you got me. Here I thought farmers, as petty bourgeoise, were doomed. So why support the febble efforts of the petty minded?

How much does it cost to market grains?

I put my soybeans into storage, a co-op storage. Then I pick up the phone and call and sell them whenever I want, usually after watching the market, or reading, studying trends. Then the cheque is either mailed to me or I can go and get it. It's not that difficult, and I have no one to blame or congratulate but myself.

I guess the cost difference in the marketing, alluded to by Unionist must be in long distance charges, mail service, and gas consumption vs having a board do that work for me.

I find it odd that in most other aspects of our lives we're all fired up to keep our options open, freedom of choice, or we fight to maintain or expand these freedoms, but when we discuss an issue like the CWB, there's no continuity of thought.

If the farmers want to keep the board's rule, fine. They've voted on it and they'll fight to maintain their board. I have no issue with that.

However, in my mind, the difference between the board's monopoly on certain products, durum wheat, barley, is little different than Monsanto's ownership of a product like Round-Up Ready Soybeans. I can't grow those beans and keep seed back for the next planting, by law, enforced by our government. Similarly, if I lived in a province that is under the aegis of the CWB, I wouldn't be able to sell durum wheat without the Board. It amounts to the same problem in my eyes: a corporate entity controlling a natural resource. The monopoly isn't on marketing, it's on the product. Or am I mis-understanding this?


Unionist
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quote:Originally posted by non sequitur:

I thought the last time the farmers had a choice by vote they took oats out of the CWB...

News to me.

Oats, which formed less than 1/2 of 1% of CWB business, were removed by another Conservative government in 1989. Never heard of any vote. There was no court challenge.

The emboldened government tried to remove barley in August 1993. Prairie Pool challenged it in court, and the move was reversed within a few days. The last vote I'm aware of was 1997, when 62.9% of voters favoured retention of the barley monopoly.


Life, the unive...
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Joined: Mar 23 2007
Uuhh farmpunk you realize that the CWB has a farmer controlled board. Those positions are voted on by farmers and they keep returning a single desk majority. Maybe western farmers are smart enough to know that they do better using collective clout. Trying to comapre the west to Ontario is a mugs game. In Ontario you can truck anything to our major markets-right from the farm- in about 3 hours, four tops. Much different in the west. First of all our largest farms are gardens compared to the average western farm operation so we are talking much bigger volumes. That takes rail cars. Distance to markets and/or ports is much farther. Again that takes rail cars. Get rid of the board and a lot of those sidings and small town lines are gone and guess who will have to pay more for transport costs- you got it farmers.
So in the end I will put my trust in other farmers, rather than an ideologically driven government. They fought to get the board in the first place and the majority of them are fighting to keep it.
It is a bit smarmy to complain about farmers being considered dumb to then do the exact same thing when looking at farmers, who farm in a completely different context, figure that their best interests lie in maintaining a single desk.

[ 02 August 2007: Message edited by: Life, the universe, everything ]


Unionist
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quote:Originally posted by Farmpunk:
It amounts to the same problem in my eyes: a corporate entity controlling a natural resource. The monopoly isn't on marketing, it's on the product. Or am I mis-understanding this?

Yeah, I think you are.

I have no problem whatsoever with monopolies - that are owned by the producers. In fact, that's how I believe the entire society should be organized.

It's the huge corporations owned by dividend-collecting stock-speculating non-producing freeloaders that I have a problem with - whether they are monopolies or not. They produce nothing, and they reap everything.


Life, the unive...
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Joined: Mar 23 2007
Plus the monoply is marketing food grade barley, not on producing it. Anyone can grow barley, they can sell it into feed lot alley in Alberta if them want. Stuff it in pillowcases and build a house with it if they want. All marketing is done through the board, and even if you want to do some self-marketing you can do that through provisions of the board. The only thing you can't do is under-bid other farmers so that all farmers can get a good return by working together.

Farmpunk
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Joined: Jul 25 2006
How many chickens can you sell, Life? How much milk? Legally. Do you find your situation argeeable?

I'm guilty of splitting hairs, to be sure, on CWB issues. There is a reason why it exists, and people I trust argue in its favour, and for its continued existence.

But it's been my experience with ag marketing boards, ones with power, that there is a clique of backroom brokering and behind the scenes deal making, cutting out the producers from vertical integrations, or ignoring concerns that come from the ground up. Just because the CWB is made up of farmers and purports to work in the best interest of its members does not put it above scrutiny, and shouldn't be used to put down legitimate concerns (of the roughly %30 of the voters) who dare to think differently.

Of course, all this goes on while Canada is attempting to open up markets worldwide while perserving it's supply managed sectors.

Is the shipping distance to Algeria less than it is to the US?

[ 02 August 2007: Message edited by: Farmpunk ]


quelar
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Sure, those 30% should have their voices heard, and we've been hearing them. It's just that the other 60-70% have continuously supported the long term survival of the Wheat Board.

Democracy actually wins for a change.


non sequitur
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Joined: Aug 17 2005
quote:Originally posted by quelar:
Sure, those 30% should have their voices heard, and we've been hearing them. It's just that the other 60-70% have continuously supported the long term survival of the Wheat Board.

Democracy actually wins for a change.

Except for central canadian farmers, who can market their grain to whomever they please.

Why isn't the NDP calling for a truly Canadian CWB?


Unionist
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Joined: Dec 11 2005
quote:Originally posted by non sequitur:

Why isn't the NDP calling for a truly Canadian CWB?

Why, are you?


josh
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Joined: Aug 5 2002
Great news! Strahl can take his bogus referendum question and shove it.

non sequitur
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Joined: Aug 17 2005
quote:Originally posted by unionist:

Why, are you?

It just seems that having a federally collective marketing board would be preferable to a western marketing board.


kropotkin1951
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quote:Originally posted by non sequitur:

Except for central canadian farmers, who can market their grain to whomever they please.

Why isn't the NDP calling for a truly Canadian CWB?


A good start to the answer to your problem was already posted above.

quote: Uuhh farmpunk you realize that the CWB has a farmer controlled board. Those positions are voted on by farmers and they keep returning a single desk majority. Maybe western farmers are smart enough to know that they do better using collective clout. Trying to comapre the west to Ontario is a mugs game. In Ontario you can truck anything to our major markets-right from the farm- in about 3 hours, four tops. Much different in the west. First of all our largest farms are gardens compared to the average western farm operation so we are talking much bigger volumes. That takes rail cars. Distance to markets and/or ports is much farther. Again that takes rail cars. Get rid of the board and a lot of those sidings and small town lines are gone and guess who will have to pay more for transport costs- you got it farmers.
So in the end I will put my trust in other farmers, rather than an ideologically driven government. They fought to get the board in the first place and the majority of them are fighting to keep it.
It is a bit smarmy to complain about farmers being considered dumb to then do the exact same thing when looking at farmers, who farm in a completely different context, figure that their best interests lie in maintaining a single desk.

non sequitur
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Joined: Aug 17 2005
I don't think that is a particularly good answer. Due to Liberal and PC incompetence, most of the secondary rail lines in the west were eliminated. Farmers often have to truck their grain hundreds of kms to the nearest terminal. Whereas 15 years ago, the SWP, UGG and Pioneer had literally thousands of elevators across SK, now there are less than 200 (my count from the SWP website shows 32 elevators/terminals in active use).

kropotkin1951
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Joined: Jun 6 2002
quote:Originally posted by non sequitur:
I don't think that is a particularly good answer. Due to Liberal and PC incompetence, most of the secondary rail lines in the west were eliminated. Farmers often have to truck their grain hundreds of kms to the nearest terminal. Whereas 15 years ago, the SWP, UGG and Pioneer had literally thousands of elevators across SK, now there are less than 200 (my count from the SWP website shows 32 elevators/terminals in active use).

You are right apples are not oranges.

Farmpunk
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I still don't undestand the black-white, Pro-CWB or no-CWB, reactions from the non-farming crowd. What is it about the CWB that creates such strong opinions in the progressive crowd? Not slamming anyone, just curious.

What is the percentage of voting vs non-voting farmers? Do they all cast ballots, one hundred percent? Or is this a democratic exercise similar to our overall voting trends: less people voting, and the reps who get in are historically less than sensitive to the "real" issues than they should be? What is the farm size breakdown in the membership and how do smaller farmers vote vs the largers operations? Young vs old? I understand there is a north-south split.

Other ag sectors, in other provinces, have strong marketing boards with provisions for independent marketing. I believe that both BC and Alberta allow "small" farms to raise and sell in the range of 2000kgs of poultry products outside the respective associations. I can't find my Small Farmer magazine, but the head of the Alberta Poultry Producers said that these operations have minimal to no effect on the overall market. Thank goodness for the Ontario Poultry Producers, who just this year have allowed farmers to raise, and sell (!), 300 birds. That number was far below what the Ecological Farmers Of Ontario were asking for, and comes with strange provisios about how the birds can be marketed. (sidenote: Life, you noticed recent farm press about how the big poultry ops want the small growers closely monitored because we're more of a risk for avian influenza than the big barns? Because most small birds are raised more free ranging, access to outside, and therefore come into more potential contact with wild birds carrying strains of the virus. Had to laugh at the weirdness of that one: Keep the birds indoors for public safety!).

The CWB, even with a %30 loss of farmers (a pure approximation, working with the numbers in this thread) would still control the majority of the durum wheat and barley, and would likely maintain its customers in Algeria and China. But with less product on the market (most in the south of the CWB area would presumably ship to the US markets), less product availible, would that not force a higher price to be paid to the CWB? Or does the CWB have a vested interest in selling grain below current market costs, or at a regulated cost, to certain markets?

Anyone have a link that shows the farm size and\or production-percentage of pro vs no CWB members? A lot of what I posted above would depend on that ratio.


N.Beltov
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Joined: May 25 2003
From a recent release by the CCPA

quote:Adrian Measner: Why is our Prime Minister so focused on this issue?

We see the influence of ideology and what I would view as a personal agenda dating back to his days with the National Citizens Coalition.

We also see the intervention of some very large companies whose shareholders will benefit enormously from Harper№s efforts.

A recent newspaper article talked about the price of gas at the pumps, saying that while it is easy to say іcompetition will take care of everythingІ, when you have a few sellers and many buyers as is the case in the oil industry you experience higher prices at the pumps. That is because oil companies set prices as a cartel. Given that truth how can anyone believe the arguments of Rolf Penner of the Frontier Institute and other right-wing think tanks supporting Harper№s agricultural agenda, that destroying the CWB and forcing many farmer sellers to sell their crops to a few private grain buyers is going to give farmers higher prices. It defies the logic of supply and demand, and defies any real-life examples in other industries.

and some history by Measner ...

quote:This is a government that would initially not engage at all in policy discussion because the decisions abut the CWB were already made. This is a government that only after much outrage and pressure moved to engage, but then sought direction only from the groups that agreed with its position. This is a government that placed a gag order on the very organization, the CWB, whose future was at stake ­ the only organization that was large enough and knowledgeable enough to be a balancing force against the government agenda.

This is a government that terminated the terms of its appointed directors, including mine, before our terms were up, in order to alter the composition of the CWB Board ­ a Board on which eight of the ten democratically elected farmers disagreed with the government№s direction.

This is a government that held a plebiscite that prompted at least one professional pollster to question whether the authors of the questions were either incompetent or diabolical. (emphasis - N.Beltov) Two other professional pollsters said that the questions would not yield meaningful results. The plebiscite had no official voters№ list for scrutiny; multiple ballots were sent to many voters; and the ballots were numbered. And then, when after all of that the government failed to get the results it wanted, it simply added two of the questions together to justify its predetermined actions!

So, in reply to

quote:I still don't undestand the black-white, Pro-CWB or no-CWB, reactions from the non-farming crowd ...

... a better question would be, "Why is the Prime Minister so antagonistic to the Canadian Wheat Board?"

And Measner has provided an excellent answer.

[ 03 August 2007: Message edited by: N.Beltov ]


josh
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Joined: Aug 5 2002
quote:

Agriculture Minister Chuck Strahl is considering new Canadian Wheat Board legislation after his government was slapped on the wrist by the Federal Court of Canada for bypassing Parliament.

The federal plan to bust the board's monopoly on barley sales through a simple cabinet order was rejected by the court last week as unlawful because the changes were not approved by MPs.

. . . .

In a minority Parliament where opposition MPs have regularly attacked Conservative plans for the board, a government bill that ends the monopoly over Prairie wheat and barley sales would have little hope of becoming law.


http://tinyurl.com/2g7cgh


Michelle
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Joined: May 10 2001
I would be interested in hearing Farmpunk's reaction to Frustrated Mess's post:

quote:I appreciate that in the last few years wheat and barley prices have been good and some farmers want to bust the marketing board. They have before under similar circumstances. But then, surprise, surprise, prices went soft and farmers whined to governments to help and the wheat board was re-established.

I think if farmers want to kill the wheat board for short term greed they should be allowed to. But I think they should also be informed, very clearly, that when prices again go soft, they are not to return to government and the taxpayer for a bailout. If they want to play by free market rules, then play by free market rules with the full understanding that the free market produces more losers than winners in the long term. Make it plain: Don't come back hat in hand!

That should equally apply to all farmers including tobacco farmers who made investments when the writing was on the wall.

Farmers always talk the talk about free markets and capitalism and many hate tax dollars supporting the poor and working poor, but they become dyed in the wool pink proponents of the welfare state when it is their own incomes and property that are at stake.

How much are farmers currently demanding from all levels of government? In the billions. BILLIONS!

Why? As proponents of free market economies they should suck it up and sell to mega-corps or land speculators. That is what free market capitalism is all about. So what is their problem?

I don't know much about the Wheat Board or what legitimate grievances some farmers might have about it. But that post by FM makes sense to me. I also know that Farmpunk is a reasonable person, and that he may have a counter-argument, and I'd love to hear it.


sgm
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Joined: Apr 15 2004
Ag minister Gerry Ritz announced yesterday that the gov't will be appealing the federal court decision:
quote:BALGONIE -- The Conservative government plans to appeal a court ruling that prevented the Canadian Wheat Board's monopoly on western barley exports from ending Aug. 1, Agriculture Minister Gerry Ritz announced Thursday.

Flanked by a small group of farmers in a farmyard east of Regina, Ritz said he has asked lawyers to file a notice of appeal in the Federal Court of Appeal as soon as possible.

A Federal Court ruling on July 31 prevented the opening of the barley market hours before the change was set to take effect.

We in the government have not hidden the fact that we are disappointed with the decision of that Federal Court," said the Battlefords-Lloydminster MP named agriculture minister two weeks ago.

The NDP reaction:

quote:"They have no business going down this costly, expensive route of appealing a very clear court decision," said Judy Wasylycia-Leis, Winnipeg North NDP member of Parliament who attended the announcement.

"This government feels that it made an election promise. Well, just because it has an election promise doesn't make it legal," she said.

Link.


Life, the unive...
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Joined: Mar 23 2007
Is it just me, or did anyone read the location as "balongie". Probably mor fitting for this idiotic action

josh
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Joined: Aug 5 2002
quote:

Agriculture Minister Gerry Ritz issued an ultimatum to the Canadian Wheat Board yesterday, saying he intends to introduce legislation to end the board's monopoly on barley sales with or without its support.

After meeting with major players from the barley industry yesterday, Mr. Ritz urged the board to back the government's efforts to create an open market for barley at its meetings in Winnipeg this week.

Mr. Ritz said having the Wheat Board onside would remove any political barriers to getting legislation passed. At present, the opposition parties are in favour of maintaining the board's monopoly power.

The minister's request puts the board in a difficult position because it would be contrary to the Canadian Wheat Board Act for the board to approve deregulation.


http://tinyurl.com/2pkmv7


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