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Why America’s ‘Beautiful Beef’ Is a Trade War Sore Point for Europe

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Why America’s ‘Beautiful Beef’ Is a Trade War Sore Point for Europe

Hendrik Dierendonck, a second-generation butcher who has become, as he describes it, “world famous in Belgium” for his curated local beef, thinks Europe’s way of raising cattle results in varied and delicious cuts that European consumers prize.

“They want hormone-free, grass-fed,” Mr. Dierendonck explained recently as he cut steaks at a bloody chopping block in his Michelin-starred restaurant, which backs onto the butchery his father started in the 1970s. “They want to know where it came from.”

Strict European Union food regulations, including a ban on hormones, govern Mr. Dierendonck’s work. And those rules could turn into a trade-war sticking point. The Trump administration argues that American meat, produced without similar regulations, is better — and wants Europe to buy more of it, and other American farm products.

“They hate our beef because our beef is beautiful,” Howard Lutnick, the commerce secretary, said in a televised interview last month. “And theirs is weak.”

Questions of beauty and strength aside, the administration is right about one thing: European policymakers are not keen on allowing more hormone-raised American steaks and burgers into the European Union.

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Further opening the European market to American farmers is just one ask on a laundry list of requests from the Trump team. American negotiators also want Europe to buy more American gas and trucks, to change their consumption taxes and to weaken their digital regulations.

Trade officials within the European Union are willing to make many concessions to avert a painful and protracted trade war and to avert higher tariffs. They have offered to drop car tariffs to zero, to buy more gas and to increase military purchases. Negotiators have even suggested they could buy more of certain agricultural products, like soy beans.

But Europeans have their limits, and those include America’s treated T-bones and acid-washed chicken breasts.

“E.U. standards, particularly as they relate to food, health and safety, are sacrosanct — that’s not part of the negotiation, and never will be,” Olof Gill, a spokesman for the European Commission, the E.U. administrative arm, said at a recent news conference. “That’s a red line.”

It is not clear how serious the Americans are about pushing for farm products like beef and chicken. But the topic has surfaced repeatedly. When U.S. officials unveiled a trade deal with Britain on Thursday, for instance, beef was part of the agreement.

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But according to Britain, the deal would simply make it cheaper for Americans to export more hormone-free beef to the country and would not weaken British health and safety rules, which are similar to those in the E.U.

When it comes to the European Union, the United States can already export a large amount of hormone-free beef without facing tariffs, so an equivalent deal would do little to help American farmers.

But diplomats and European officials have repeatedly insisted that there is no wiggle room to lower those health and safety standards. And when it comes to meat-related trade restrictions more broadly, there is very little. Chicken, for instance, faces relatively high tariffs, and there is limited appetite to lower those rates.

That’s because Europe is protective of both its food culture and its farms.

Where America tends to have massive agricultural businesses, Europeans have maintained a more robust network of smaller family operations. The 27-nation bloc has about nine million farms, compared with about two million in the United States.

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Subsidies and trade restrictions help to keep Europe’s agricultural system intact. The European Union allocates a big chunk of its budget to supporting farmers, and a mix of tariffs and quotas limit competition in sensitive areas. E.U. tariffs on agricultural products are around 11 percent overall, based on World Trade Organization estimates, though they vary hugely by product.

And the bloc could place higher tariffs on U.S. farm goods if trade negotiations fall through. Their list of products that could face retaliatory levies, published Thursday, includes beef and pork, along with many soy products and bourbon.

But it’s not just tariffs limiting European imports of American food. Strict health and safety standards also keep many foreign products off European grocery shelves.

Take beef. Mr. Dierendonck and other European farmers are banned from using growth stimulants, unlike in the United States, where cattle are often raised on large feedlots with the use of hormones. European safety officials have concluded that they cannot rule out health risks for humans from hormone-raised beef.

To Mr. Dierendonck, the rules also fit European preferences. The lack of hormones results in a less homogenous product. “Every terroir has its taste,” he explains, describing the unique “mouth feel” of the West Flemish Red cow he raises on his farm on the Belgian coast.

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But farming beef without hormones is more expensive. And American exporters have to adhere to hormone limitations when they send steaks, hamburgers or dairy products to E.U. countries, which European farmers argue is only fair. Otherwise, imports produced using cheaper methods could put European farmers out of business.

“We cannot accept import products that do not meet our production standards,” said Dominique Chargé, a cattle farmer from the west of France who is also president of La Coopération Agricole, a national federation representing French agricultural cooperatives.

The result is that the United States does not sell much beef to Europe. It makes more economic sense for U.S. farmers to sell into markets that allow hormone-raised cattle.

One frequent American complaint is that European health standards are more about preference than actual health.

American scientists have called the risks of hormone use in cows minimal. And though E.U. officials and consumers frequently sneer at America’s “chlorinated chickens,” that rallying cry is a bit dated. American farmers have for years been using a vinegar-like acid, and not chlorine, to rinse poultry and kill potential pathogens.

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Some studies in Europe have suggested that such treatments are not a replacement for raising a chicken in a way that makes it pathogen-free from the start. American scientists have concluded that the rinses do their job and are not harmful to humans.

“I don’t know that it’s really about the science,” said Dianna Bourassa, a microbiologist specializing in poultry at Auburn University. “In my microbiological opinion, there are no health implications.”

From the perspective of European farmers, though, whether the health risks are genuine is besides the point. So long as European voters oppose chemical-treated chicken and hormone-treated beef, Europe’s farmers cannot use those farming techniques.

“When you speak to our farmers, it’s about fairness,” explained Pieter Verhelst, a member of the executive board of a Belgian farmers’ union, Boerenbond. “The policy framework we start with is totally different, and those issues are mostly totally out of the hands of farmers.”

And European consumers do seem to support E.U. food and farming rules.

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Farmer protests last year loudly opposed more beef imports from South American countries, in part over concerns that the cows might be raised with a growth hormone. An Obama-era trade deal died in part thanks to popular anger over “chlorine chicken” (“Chlorhünchen,” to derisive Germans.)

E.U. public opinion polling has suggested that policies that promote farming and farmers are very popular. In a 2020 poll fielded in-person across the bloc, nearly 90 percent of Europeans agreed with the idea that agricultural imports “should only enter the E.U. if their production has complied with the E.U.’s environmental and animal welfare standards.”

In Europe, including at Mr. Dierendonck’s butchery and farm, there’s a value placed on the old-fashioned, small-scale way of doing things, policymakers and farmers agreed. Mr. Dierendonck does buy some American beef for customers who ask for it — it’s easy to cook, he said — but it’s a small part of the business.

“I like American beef very much, but I don’t like it too much,” said Mr. Dierendonck, explaining that to him, the beef his European suppliers provide is varied, like a fine wine. “For me, it’s about keeping traditions alive.”

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Commentary: H-1B visas have always been a scam. Trump's changes won't fix the problem

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Commentary: H-1B visas have always been a scam. Trump's changes won't fix the problem

Among the government programs that produce more confusion than benefits, H-1B visas are right up there.

If you’ve been hearing about H-1B visas, it’s probably because President Trump abruptly changed its rules with a proclamation on Sept. 19.

As is typical of Trump’s shoot-from-the-hip policy-making, the proclamation produced an outbreak of fear and chaos, in this case among holders of the visas. That’s because it seemed at first that the administration was imposing a $100,000 fee not only on applicants for the visas, but on current holders reentering the U.S. from abroad, say from home leave or a business trip.

This is a de facto ban, as few organizations will be able to afford it.

— Robert D. Atkinson, Information Technology and Innovation Foundation

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Until the White House clarified that the charge would be a one-time fee for new H-1B applications, not charged annually or for renewals or reentry, holders were advised by some employers not to leave the U.S. for the present; those who were caught off-guard overseas scurried to get home by Sunday, when the fee began.

A Sept. 19 Emirates flight from San Francisco to Dubai had to abort its departure to allow several panicky passengers to debark, according to Bloomberg.

The administration’s subsequent assurances have quelled the panic. But the proclamation has created new befuddlements, including over whether it opens the door to illicit dealings between Trump and companies bidding for the visas, and whether it’s even legal.

As my colleagues Queenie Wong and Nilesh Christopher reported, there are concerns that “a selective application of the fee could be a way the White House can reward its friends and punish its detractors.”

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Importantly, there’s room to question whether the proclamation will solve long-standing problems with H-1B visas. So let’s take a look at the program’s malodorous history.

H-1B visas were created in 1990, under President George H.W. Bush, to relieve what high-tech companies asserted was a chronic shortage of U.S.-born workers in the STEM fields (science, technology, engineering and math).

The idea was to give highly-skilled foreign workers in “specialty occupations” the right to three years of U.S. residence renewable for a further three years — an opportunity to obtain permanent residency or even citizenship.

After a few rounds of tweaking, the annual cap on new applications was set at 85,000, including 20,000 holders of advanced degrees from U.S. universities. Higher education and nonprofit research institutions are exempt from the cap.

Things didn’t work out as anticipated. U.S. employers came to see the H-1B visas as tools to replace native-born technicians with cheaper foreign workers. Scandalously, some of the American workers were required as conditions of their severance to train the newcomers to do their jobs.

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I documented that practice at Southern California Edison in 2015. The giant utility acknowledged that the outsourcing of workers would cost the jobs of 500 technicians who did the work of installing, maintaining and managing Edison’s computer hardware and software for payroll and billing, dispatching and electrical load management.

Essentially, Edison was replacing domestic IT specialists earning $80,000 to $160,000 with workers provided by two India-based outsourcing firms, Tata Consultancy Services and Infosys, which were paying their recruits $65,000 to $71,000. By the time the outsourcing process was complete, Edison said, its IT expenses would fall by about 20%.

“They told us they could replace one of us with three, four, or five Indian personnel and still save money,” one laid-off Edison worker told me at the time, recounting a group meeting with supervisors. “They said, ‘We can get four Indian guys for cheaper than the price of you.’ You could hear a pin drop in the room.”

Then there’s the University of California, which announced in 2016 that it would lay off 49 career IT staffers and eliminate 48 other IT jobs that were vacant or filled by contract employees. The American workers were ordered to train their own replacements, who were employees of the Indian outsourcing firm HCL Technologies.

Although the visa law specified that hiring foreign workers would not harm American workers, “the H-1B program is most definitely harming American workers, harming them badly, and on a large scale,” Ronil Hira of Howard University, an expert in the visa program, told the Senate Judiciary Committee in 2015. “Most of the H-1B program is now being used to import cheaper foreign guestworkers, replacing American workers, and undercutting their wages.”

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The high-tech industry’s dirty little secret, I reported, was that the STEM shortage was a myth. The same companies wringing their hands over the supposed dearth of STEM-qualified workers were simultaneously laying them off by the tens of thousands. Indeed, experts in technology employment consistently found that “the supply of graduates is substantially larger than the demand for them in industry,” one told me. Anyway, a significant portion of H-1B recruits weren’t in jobs demanding unique skills, but workaday technicians.

Since 2020, the top employer of H-1B visa holders has been Amazon, with a total of 43,375 workers over that period — followed closely by the Indian outsource companies Infosys and Tata. In the current fiscal year, Amazon reigns, with more than 14,000 H-1B holders, followed by Tata, Microsoft, Meta Platforms, Apple and Google. I asked Amazon why it needs so many foreign workers and what work they do, but didn’t receive a reply.

The Indian outsourcing firms have dominated the H-1B system since at least 2009. For years their role has stoked controversy, in part because their employment practices have come under question.

In court, government prosecutors and civil plaintiffs have alleged that Infosys and Tata were exploiting the guest workers they brought to the U.S. Infosys settled federal fraud charges with a $34-million payment in 2013, the largest penalty in an immigration case at that time. The company denied the allegations.

That same year, Tata settled a class action lawsuit with a $29.8-million payment. The plaintiffs alleged that workers imported by Tata were forced to sign over their federal and state tax refunds to Tata, among other claims. The company didn’t admit wrongdoing.

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Over the years, the H-1B program has made for political controversy, though Congress hasn’t taken a firm hand in correcting its issues. Conservatives and progressives alike have found reason to complain that it undermines domestic employment. Near the end of his first term, Trump shut down H-1B issuance entirely, along with some other specialty visa programs, but his initiative was blocked in federal court.

But the program remains enormously popular in the high-tech world, which has long agitated for an expansion. Its fans include Elon Musk, who tweeted in December that “the reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H-1B.” He underscored his position with a burst of profanity, but he did promise to “go to war on this issue,” although he acknowledged that some fixing is in order.

That brings us to the issues with Trump’s proclamation. Its shortcomings resemble those that prompted federal Judge Jeffrey S. White of Oakland to overturn Trump’s ban in 2020 in a case brought by the National Assn. of Manufacturers and the U.S. Chamber of Commerce, among others.

White ruled that the authority to change the terms of the visas belonged to Congress, not the president, and that the administration hadn’t evaluated the effect of the ban on the domestic economy, as federal law required. The case was rendered moot when Trump’s ban was reversed by President Biden. I asked the White House if it was concerned that this proclamation could also be blocked in court, but got no reply.

A bigger question concerns the ramifications of the $100,000 fee. “H-1B visa fees of this magnitude will strongly discourage the hiring of the most talented members of the global labor force,” says University of Chicago economist Steven Durlauf. Instead, the policy will create incentives to move high-tech and scientific activity to other countries, effectively offshoring economic activity that should occur in the U.S., he says.

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The fee is so high that only the biggest and richest employers will be able to pay it, locking out small start-ups that have tried to use H-1B visas to build their professional teams. The proclamation doesn’t make clear whether universities and research institutions will be exempt from the fee. Even financially well-endowed universities would find it hard to justify paying $100,000 to import a faculty member from abroad.

“This is a de facto ban, as few organizations will be able to afford it,” says Robert Atkinson, president of the Information Technology and Innovation Foundation, a high-tech think tank.

The White House says it intends to replace the current system, a random lottery apportioning available H-1B slots among all applicants, with one favoring applications to fill the highest-paid slots.

The proclamation states that H-1B abuses “present a national security threat by discouraging Americans from pursuing careers in science and technology, risking American leadership in these fields.” Never mind that students considering careers in scientific and technical fields are being profoundly discouraged by Trump’s freezes on research funding across the scientific landscape.

So the bottom line is that, as is usual, Trump’s H-1B policy works at cross-purposes with his other initiatives. For decades, the H-1B program has been ripe for fixing. If only the Trump White House took the time to craft a sensible repair.

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How Nexstar’s Proposed TV Merger Is Tied to Jimmy Kimmel’s Suspension

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How Nexstar’s Proposed TV Merger Is Tied to Jimmy Kimmel’s Suspension

ABC pulled Jimmy Kimmel’s late night show on Wednesday after conservatives expressed outrage over a monologue the host had given two days earlier.

Here’s an excerpt from Mr. Kimmel’s monologue:

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“We hit some new lows over the weekend with the MAGA gang desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them, and doing everything they can to score political points from it. In between the finger-pointing, there was grieving.

The suspension was the latest demonstration of how members of the Trump administration have been able to influence the operations of media companies without imposing new policies. In this case, a broadcaster that is pursuing a $6 billion merger, which must be approved by the Federal Communications Commission, put pressure on ABC before the network’s parent company, Disney, announced its decision to suspend Mr. Kimmel’s show.

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1:00 p.m. E.T. on Wednesday, Aug. 5

Podcast video circulates of the F.C.C. chairman threatening ABC and calling on local affiliates to pull Mr. Kimmel’s program.

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Hours before ABC made the announcement, the F.C.C. chairman, Brendan Carr, said on a right-wing podcast that local ABC stations should “push back” and “pre-empt” coverage that does not serve “their local communities.” (Pre-empting, in broadcast terms, refers to replacing programming with another show in advance of its airing.)

Mr. Carr also told the podcast’s host, Benny Johnson, that the F.C.C. might take action against ABC.

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“When you see stuff like this, I mean, look, we can do this the easy way or the hard way. These companies can find ways to change conduct and take action frankly on Kimmel or you know there’s going to be additional work for the F.C.C. ahead. …”

“I think that it’s really sort of past time that a lot of these licensed broadcasters themselves push back on Comcast and Disney and say, ‘Listen, we are going to pre-empt.’”

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6:11 p.m.

Nexstar, which owns ABC affiliate stations, announces it will not air Mr. Kimmel’s program.

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After the podcast interview, Nexstar, which owns 32 ABC affiliate stations, announced that it would “pre-empt ‘Jimmy Kimmel Live!’ for the foreseeable future,” and added: “Nexstar strongly objects to recent comments made by Mr. Kimmel concerning the killing of Charlie Kirk.”

Nexstar has good reason to try to appease the F.C.C. at the moment: In August, the company announced that it intended to buy one of its competitors, Tegna, which owns 13 ABC affiliate stations. But in order for the deal to go through, Mr. Carr and the F.C.C. would have to not only approve it, but also potentially raise the nationwide cap on the percentage of households a single entity’s television stations are allowed to reach.

Broadcasters have pushed the government for decades to raise or repeal the cap, which is currently set at 39 percent. If the Nexstar-Tegna deal goes through, Nexstar’s reach is likely to exceed the limit.

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Shortly after Nexstar’s announcement, Sinclair, a company that owns 31 ABC affiliate stations, said it would also suspend Mr. Kimmel’s program.

Of ABC’s 205 affiliate stations, 63 are owned by Nexstar and Sinclair, and another 13 are owned by Tegna.

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Sources: The Federal Communications Commission, ABC, Nexstar, Sinclair and Tegna.

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Note: Stations were cross-referenced between ABC’s and affiliates’ lists, and checked against F.C.C. records.

By The New York Times

Together, they make up about 37 percent of all of ABC’s local affiliates.

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Approximately 6:30 p.m.

ABC says it will suspend Mr. Kimmel’s program “indefinitely.”

Minutes after Nexstar’s announcement, and just hours after Mr. Carr’s podcast appearance, ABC announced that it was suspending Mr. Kimmel’s program “indefinitely.”

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It was unclear how big a role, if any, the plans for pre-empting by Nexstar played in Disney’s decision. (Sinclair did not publicly announce that it would also pre-empt the program until after Disney’s decision was made public.)

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7:00 p.m.

F.C.C. chairman thanks Nexstar on social media, shortly after the company announced it would pre-empt Mr. Kimmel.

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“I want to thank Nexstar for doing the right thing.”

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As the outrage over Mr. Kimmel’s comments grew, Robert A. Iger, Disney’s chief executive, along with a close lieutenant, had been hearing from worried advertisers, people familiar with the decision told The New York Times this week.

Last year, Mr. Trump sued ABC’s news division for defamation. ABC settled with the president in December, a rare and significant concession by a major news organization as the president grew increasingly antagonistic to media companies he viewed as critical of him and his allies.

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Before Mr. Kimmel’s show was set to begin taping Wednesday, the people familiar with Disney’s decision said, executives had grown concerned that another opening monologue could further inflame the situation. So they made the call for the show to go dark — at least temporarily.

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Disney, Universal and Warner Bros. Discovery sue Chinese AI firm as Hollywood's copyright battles spread

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Disney, Universal and Warner Bros. Discovery sue Chinese AI firm as Hollywood's copyright battles spread

Walt Disney Co., Universal Pictures and Warner Bros. Discovery on Tuesday sued a Chinese artificial intelligence firm called MiniMax for copyright infringement, alleging its AI service generates famous characters including Darth Vader, the Minions and Wonder Woman without the studios’ permission.

“MiniMax’s bootlegging business model and defiance of U.S. copyright law are not only an attack on Plaintiffs and the hard-working creative community that brings the magic of movies to life, but are also a broader threat to the American motion picture industry,” the companies state in their complaint, filed in U.S. District Court in Los Angeles.

The entertainment companies requested that MiniMax be restrained from further infringement. They are seeking damages of up to $150,000 per infringed work, as well as attorney fees and costs.

This is the latest round of copyright lawsuits that major studios have brought against AI companies over intellectual property concerns. In June, Disney and Universal Pictures sued AI firm Midjourney for copyright infringement. This month, Warner Bros. Discovery also sued Midjourney.

Shanghai-based MiniMax has a service called Hailuo AI, which is marketed as a “Hollywood studio in your pocket” and used characters including the Joker and Groot in its ads without the studios’ permission, the studios’ lawsuit says. Users can type in a text prompt requesting characters such as Yoda from “Star Wars” or DC Comics’ Superman, and Hailuo AI can pull up high quality and downloadable images or video of the character, according to the document.

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“MiniMax completely disregards U.S. copyright law and treats Plaintiffs’ valuable copyrighted characters like its own,” the lawsuit states. “MiniMax’s copyright infringement is willful and brazen.”

“Given the rapid advancement in technology in the AI video generation field … it is only a matter of time until Hailuo AI can generate unauthorized, infringing videos featuring Plaintiffs’ copyrighted characters that are substantially longer, and even eventually the same duration as a movie or television program,” the lawsuit states.

MiniMax did not immediately return a request for comment.

Hollywood is grappling with significant challenges, including the threat of AI, as companies consolidate and reduce their expenses amid rising production costs. Many actors and writers, still recovering from strikes that took place in 2023, are scrambling to find jobs. Some believe the growth of AI has threatened their livelihoods as tech tools can replicate copyrighted characters with text prompts.

Although some studios have sued AI companies, others are looking for ways to partner with them. For example, Lionsgate has partnered with AI startup Runway to help with behind the scenes processes such as storyboarding.

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