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I. SECRETARY-GENERAL EXPRESSES APPRECIATION FOR QUARTET<\/strong><\/p><\/div>\n\n
SPECIAL ENVOY’S EFFORTS<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>The following statement was issued on 2 May 2006 by the Spokesman for UN Secretary-General Kofi Annan (SG\/SM\/10439)<\/i>:<\/p><\/div>\n<\/p>\n
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\t<\/span>The Secretary-General expresses his deep appreciation for the efforts extended by Quartet Special Envoy James D. Wolfensohn, whose mandate finished at the end of April. Mr. Wolfensohn’s experience, wisdom and dedication were instrumental in helping to ensure a peaceful Gaza disengagement and establishing a framework for the future revival of the Palestinian economy. The Secretary-General has relied extensively on Mr. Wolfensohn’s expertise and advice, and his contribution to efforts to achieve a peaceful solution to the Israel-Palestinian conflict. He extends his warm gratitude to Mr. Wolfensohn and is confident that he and other members of the Quartet will continue to seek his advice and counsel.<\/p><\/div>\n\n
II. ESCWA ISSUES REPORT ON ECONOMIC AND SOCIAL<\/strong><\/p><\/div>\n\n
REPERCUSSIONS OF THE ISRAELI OCCUPATION<\/strong><\/p><\/div>\n\n
ON THE LIVING CONDITIONS OF THE<\/strong><\/p><\/div>\n\n
PALESTINIAN PEOPLE<\/strong><\/p><\/div>\n<\/p>\n
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The Economic and Social Council published on 3 May 2006 a report prepared by the Economic and Social Commission for Western Asia (ESCWA) entitled “Economic and social repercussions of the Israeli occupation on the living conditions of the Palestinian people in the occupied Palestinian territory, including Jerusalem, and of the Arab population in the occupied Syrian Golan”. The report was produced pursuant to Economic and Social Council resolution 2005\/51 of 27 July 2005 and General Assembly resolution 60\/183 of 22 December 2005<\/i> (A\/61\/67-E\/2006\/13). The following is an excerpt from the report containing its conculsions:<\/i><\/p><\/div>\n
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IV. Conclusions <\/p><\/div>\n
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84. \t<\/span>Israel’s disengagement from the Gaza Strip and parts of the West Bank raised the possibility of new movement towards social and economic recovery.<\/p><\/div>\n\n
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85. \t<\/span>Disengagement occurred in a rapid and peaceful manner. The economy grew in 2005 by 6 per cent for the second year running. Unemployment fell by 3 per cent over the previous year. The parties signed the Access and Movement Agreement of November 2005, securing a passage regime from the Gaza Strip to Egypt and ensuring a minimum level of commodity exports from the Gaza Strip. Nonetheless, these gains were insufficient to arrest or reverse the decline in social and economic indicators which showed the ongoing, and in some cases deepening, distress among large numbers of Palestinians. During the first quarter of 2006, crossings for the transfer of goods between the Gaza Strip and Israel were closed over 50 per cent of the time. Poverty rates remained high as result of declining income levels, rising food and transport prices, high demographic growth and increasingly inequitable distribution of wealth.<\/p><\/div>\n\n
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86. \t<\/span>While internal closures in the Gaza Strip were removed, West Bank closures, after several months of easing, were tightened again towards the end of the year. A severe fiscal crisis loomed at the end of 2005, raising serious doubts about the ability of the Palestinian Authority to meet public sector wage commitments for the first months of the new year.<\/p><\/div>\n\n
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87. \t<\/span>Planned elections in both Israel and the occupied Palestinian territory meant that neither side was in a position to make meaningful policy commitments into 2006. For its part, the international community also signalled its intention to delay additional funding commitments to the occupied Palestinian territory until a new cabinet could be formed in the first half of 2006. A major pledging conference, aiming to raise up to $3 billion in international funds for Palestinian social economic recovery, was nonetheless tentatively scheduled for May 2006, testifying to the ongoing hope of donors that an enabling environment for accelerated social, economic and institutional recovery can be established over the next year.<\/p><\/div>\n\n
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III. WORLD BANK ISSUES REPORT ON THE IMPENDING PALESTINIAN FISCAL CRISIS<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>The World Bank issued on 7 May 2006 a report entitled “The Impending Palestinian Fiscal Crisis, Political Remedies”. The following are excerpts from the report:<\/i><\/p><\/div>\n<\/p>\n
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The Current Fiscal Emergency and its Possible Impacts<\/strong><\/p><\/div>\n<\/p>\n
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7. \t<\/span>The PA’s liquidity crisis is unprecedented. In 2005, the PA was able to access a total of US$2.15 billion for the Budget, or some US$180 million per month; in the first quarter of 2006, Budget resources declined to approximately US$130 million per month. For April, resources may not exceed US$50-55 million. This contraction has been caused by a combination of factors, the most important of which is Israel’s withholding of Palestinian revenues. The OECD donors’ suspension of budget-related disbursements, the failure of the Arab League States to come forward with promised levels of support and the reluctance of commercial banks to lend to\/bank for the new government are also significant.<\/p><\/div>\n<\/p>\n
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8. \t<\/span>If today’s strictures remain or intensify, the PA may be looking at no more than US$25 million in domestic revenues per month, and no banking system with which to distribute them. Under such circumstances, with current monthly wage bills running at c. US$95 million, those Palestinians employed by the PA or dependent on PA salaries (estimated at 30 percent of the population) will suffer major income reductions – while the PA is unlikely to be able to provide basic services or maintain law and order.<\/p><\/div>\n<\/p>\n
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9. \t<\/span>As a result of such dramatic fiscal compression, one or more of the following may occur in the coming months.<\/p><\/div>\n<\/p>\n
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\t<\/span>A Humanitarian Crisis<\/i> – As noted, Government of Israel (GOI) has expressed confidence that it can regulate humanitarian supply. Under the pressure of loss of income, demand factors are likely to manifest as well, and the need for humanitarian relief may rise steeply.<\/p><\/div>\n<\/p>\n
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\t<\/span>Rising Insecurity<\/i> – Non-payment, part-payment or unequal payment of salaries could precipitate breakdowns in force discipline in the PA security services; in the past year there have been many instances of security personnel threatening or using force to pressure the PA on salary and benefits issues, including recently. A deteriorating security environment could make it difficult for government, commerce and relief efforts alike to operate properly. Destabilization of this kind, if protracted, could also lead to a deterioration in the bilateral security environment – with adverse implications for the security of Israelis.<\/p><\/div>\n<\/p>\n
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\t<\/span>Institutional Dissolution – <\/i>If the PA remains unpaid\/minimally paid for several months, it may cease to function: civil servants have already begun to withdraw their services in protest, and this can be expected to intensify as personnel down tools and look for other ways to subsist. International experience in ‘fragile states’ contexts shows that mainstream institutional breakdown is very hard to reverse: complex structures such as school systems are not machines to be switched on and off at will. <\/p><\/div>\n\n
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12. \t<\/span>Countering the current fiscal crisis and its potentially dangerous consequences requires the restoration of an adequate flow of budget funds. This would permit regular public sector salary payments, thereby dampening the demand for additional humanitarian assistance, ensuring that public services were maintained and helping preserve the functionality of the security services.<\/p><\/div>\n<\/p>\n
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13. \t<\/span>Recent GOI and Organisation for Economic Cooperation and Development (OECD) donor measures overlay a pre-existing fiscal emergency of the previous government’s making, and have acted to intensify it. The new government cannot escape the need to address these serious imbalances through a major retrenchment of public servants, a significant reduction in public sector salaries, or a combination of both. Unless the PA is in receipt of a meaningful flow of budget resources, though, orderly fiscal management will be impossible and any reform agenda will be overwhelmed by institutional disintegration.<\/p><\/div>\n<\/p>\n
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14. \t<\/span>If Israel and the donor community decide that the downside risks associated with fiscal chaos are excessive, and if they adjust their current policy stances accordingly, the fiscal situation can be retrieved – though not without difficulty, and probably not unless action is taken soon. Under the best of circumstances the PA is likely to face a very tight budget outlook. It cannot plan on the basis of budgetary flows equivalent to the 2005 monthly average of US$180 million: a significant proportion of those resources were non-sustainable, and are now unavailable – while PA revenues are also undergoing a considerable decline as economic activity winds down. A more realistic point of departure for budget formulation would be the PA’s ‘real income’ in 2005, i.e., what it received by way of monthly revenues (domestic and clearance revenues) and donor contributions. This averaged just over US$120 million per month.<\/p><\/div>\n<\/p>\n
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15. \t<\/span>Resource flows on this scale are a reasonable proposition for the remainder of this year – but only if Israel resumes revenue transfers and allows orderly import and export trade to take place through the West Bank and Gaza borders.<\/p><\/div>\n<\/p>\n
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16.\t<\/span>A solid basis for trade facilitation would be the implementation of the Agreement on Movement and Access (AMA) of November 15 2005. Thus far, the AMA has not been seriously implemented (including during the 10 weeks prior to the PLC election). The Ad Hoc Liaison Committee (AHLC) has on several occasions supported the proposition that the twin goals of maintaining Israeli security and enhancing Palestinian movement and access are mutually compatible. Israel’s willingness to facilitate movement and trade would be essential to sustaining any new-found stability arising from an improvement in today’s fiscal position.<\/p><\/div>\n<\/p>\n
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17. \t<\/span>Given a resumption of Israeli revenue flows and adequate trade facilitation, PA tax revenues in the near term could reach perhaps US$75-85 million per month (US$25-30 million per month in domestic revenue, and revenue clearances of US$50-55 million). In addition, Arab League and OECD budget support might conceivably average another US$25 million per month. If the PA decides to sell or mortgage Palestine Investment Fund assets, it might also be possible to add a further US$15-25 million per month while revenues recover.<\/p><\/div>\n<\/p>\n
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18. \t<\/span>It goes without saying that an expenditure programme averaging around US$120-130 million per month will only restore economic and social stability if the PA acts decisively to reduce the inflated public payroll.<\/p><\/div>\n<\/p>\n
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IV. QUARTET PRINCIPALS ISSUE STATEMENT<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>On 9 May 2006, the principals of the Quartet issued the following statement (SG\/SM\/10453): <\/i><\/p><\/div>\n<\/p>\n
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\t<\/span>Representatives of the Quartet – United Nations Secretary General Kofi Annan, Russian Foreign Minister Sergey Lavrov, Austrian Foreign Minister Ursula Plassnik, United States Secretary of State Condoleezza Rice, High Representative for European Common Foreign and Security Policy Javier Solana, and European Commissioner for External Relations Benita Ferrero-Waldner – met today in New York to discuss the situation in the Middle East. The Quartet also met with Egyptian Foreign Minister Ahmed Aboul Gheit, Jordanian Foreign Minister Abdelelah al-Khatib, and Saudi Arabian Foreign Minister Saud al-Faisal to exchange views on regional issues.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet expressed its appreciation for the service of James Wolfensohn as Quartet Special Envoy for Gaza Disengagement, and noted his central role in the conclusion of the Agreement on Movement and Access and the promulgation of an agenda for Palestinian economic recovery.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet underscored its continued commitment to the principles of partnership and negotiation leading to a two-State solution, as embodied in the Road Map. A lack of action by the parties in certain key areas has stalled progress on the Road Map. The Quartet underscored the need for both parties to avoid actions which could prejudge final status issues or undermine progress towards this goal.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet reiterated its grave concern that the Palestinian Authority Government has so far failed to commit itself to the principles of non-violence, recognition of Israel, and acceptance of previous agreements and obligations, including the Road Map. The Quartet noted the absence of a commitment to these principles has inevitably impacted direct assistance to that Government and expressed its deep concern about the consequences for the Palestinian people. The donor members noted their willingness to work towards the restoration of international assistance to the Palestinian Authority Government once it has committed to these principles.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet discussed the current situation in Israel and the West Bank, and Gaza. It condemned the Palestinian Authority Government's failure to take action against terrorism and the justification of the 17 April suicide bombing in Tel Aviv. The Quartet urged it to act decisively against terrorism and bring an end to violence. The Quartet noted that President Abbas condemned the 17 April attack as he has consistently condemned all acts of terrorism in the past.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet expressed its concern over Israeli military operations that result in the loss of innocent life. The Quartet calls for restraint and asks Israel to bear in mind the potential consequences of its actions for the population. The Quartet expressed its concern about settlement expansion. It continues to note with concern the route of the barrier, particularly as it results in the confiscation of Palestinian land and cuts off the movement of people and goods. The Quartet reiterated the importance of both parties avoiding unilateral measures, which prejudice final status issues.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet discussed the humanitarian situation in the West Bank and Gaza. It expressed serious concern about deteriorating conditions, particularly in Gaza. The Quartet expressed concern about delivery of humanitarian assistance, economic life, social cohesion, and Palestinian institutions. The Quartet reiterated its support for assistance directed to help meet the basic human needs of the Palestinian people and promotion of Palestinian democracy and civil society, and called upon the international community to respond urgently to assistance requests by international organizations, especially UN agencies, active in the West Bank and Gaza. The Quartet urged both parties to take concrete steps to implement their obligations under the Agreement on Movement and Access.<\/p><\/div>\n<\/p>\n
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\t<\/span>Recalling its commitment of 30 January that it is mindful of the needs of the Palestinian people, the Quartet expressed its willingness to endorse a temporary international mechanism that is limited in scope and duration, operates with full transparency and accountability, and ensures direct delivery of assistance to the Palestinian people. If these criteria can be met, the operation of the temporary international mechanism should begin as soon as possible and be reviewed after three months to determine whether it should continue. The Quartet welcomed the offer of the European Union to develop and propose such a mechanism. It invites other donors and international organizations to consider participation in such a mechanism. It urged Israel in parallel to take steps to improve the humanitarian situation of the Palestinian people. The Quartet reiterates that the Palestinian Authority Government must fulfil its responsibilities with respect to basic human needs, including health services, as well as for proper fiscal management and provision of services.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet welcomed Prime Minister Olmert’s call for negotiations with a Palestinian partner committed to the principles of the Road Map, as the most stable and desired basis for the political process. The Quartet welcomed President Abbas’ continued commitment to a platform of peace. The Quartet is encouraged by these statements of intent.<\/p><\/div>\n<\/p>\n
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\t<\/span>Finally, the Quartet reaffirmed its commitment to its previous statements and to a just, comprehensive, and lasting settlement to the conflict based upon UN Security Council resolutions 242 (1967), 338 (1973), 1397 (2002) and 1515 (2003). The Quartet will remain seized of the matter.<\/p><\/div>\n<\/p>\n
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V. HIGH COMMISSIONER FOR HUMAN RIGHTS EXPRESSES<\/strong><\/p><\/div>\n\n
CONCERN OVER DETERIORATING SITUATION IN THE<\/strong><\/p><\/div>\n\n
OCCUPIED PALESTINIAN TERRITORIES<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>The following press release was issued on 12 May 2006 by the Office of the United Nations High Commissioner for Human Rights: <\/i><\/p><\/div>\n<\/p>\n
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\t<\/span>As the United Nations High Commissioner for Human Rights Louise Arbour warned that the region was on the brink of a human rights and humanitarian crisis, she called on Israel and the Palestinian Authority to respect core international human rights standards, and recalled the Advisory Opinion of the International Court of Justice (ICJ), endorsed by the General Assembly, that “both Israel and Palestine are under an obligation scrupulously to observe the rules of international humanitarian law, one of the paramount purposes of which is to protect civilian life.”<\/p><\/div>\n<\/p>\n
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\t<\/span>“The rising number of lives lost, whether as a result of targeted killings or suicide attacks, home-made missiles or artillery fire, is unacceptable”, the High Commissioner said. “Civilians, particularly the most vulnerable, such as children, women and the elderly, should not pay the price for the neglect of human rights and humanitarian obligations.”<\/p><\/div>\n<\/p>\n
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\t<\/span>The High Commissioner noted with concern reports of UN agencies drawing attention to the risks of a humanitarian crisis for the Palestinian population as a result of the cuts in international aid to the Palestinian Authority, consequent non-payment of salaries, and predicted steep rise in poverty levels, compounded by intensified restrictions on movement of people and goods in the Occupied Palestinian Territory (OPT), including humanitarian aid.<\/p><\/div>\n<\/p>\n
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\t<\/span>“As the Governments of Israel and the Palestinian Authority assume new responsibilities”, said the High Commissioner, “I urge both sides to reaffirm their commitment to international human rights and humanitarian law, and to prioritize human rights on their respective agendas. Respect for the rule of law and human rights safeguards must be guaranteed so that the Israeli and Palestinian peoples may live in an environment where their protection from attack and enjoyment of their fundamental civil, cultural, economic, political and social rights are assured.”<\/p><\/div>\n<\/p>\n
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\t<\/span>The High Commissioner added. “As the occupying Power, Israel bears responsibility under international humanitarian law, particularly under the 1949 Fourth Geneva Convention, for the welfare of the Palestinian population in the OPT. Israel should also abide by the Agreement on Movement and Access regarding the movement of goods, including humanitarian assistance, into and from the Gaza Strip. As a State party to all the major human rights treaties, Israel is required to ensure the enjoyment of human rights of all those within its jurisdiction, including the OPT, as reaffirmed by the ICJ Advisory Opinion of 2004, in light of which Israel is also required, inter alia, to dismantle and cease construction of the wall in the West Bank. The Palestinian Authority has the urgent duty to do everything in its power to maintain law and order, prevent attacks on Israeli civilians, investigate those attacks that have taken place, and bring to justice those responsible. The Palestinian Authority should also make every effort to facilitate implementation of the Agreement on Movement and Access.”<\/p><\/div>\n<\/p>\n
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\t<\/span>“I urge all High Contracting Parties to the 1949 Geneva Conventions to use their full moral authority with a view to making parties to the conflict stop this new cycle of violence and respect these Conventions, as well as to find ways to resume negotiations according to the Road Map” the High Commissioner said.<\/p><\/div>\n\n
VI. SECRETARY-GENERAL APPOINTS KEVIN KENNEDY AS DEPUTY<\/strong><\/p><\/div>\n\n
SPECIAL COORDINATOR FOR MIDDLE EAST PEACE PROCESS<\/strong><\/p><\/div>\n\n
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\t<\/span>On 12 May 2006, Secretary–General Kofi Annan appointed Kevin M. Kennedy as Deputy Special Coordinator for the Middle East Peace Process. The following excerpt is from the press release (SG\/A\/1002):<\/i><\/p><\/div>\n<\/p>\n
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\t<\/span>United Nations Secretary-General Kofi Annan announced today his decision to appoint Kevin M. Kennedy as Deputy Special Coordinator for the Middle East Peace Process, at the level of Assistant Secretary-General. In this capacity, Mr. Kennedy will also serve as United Nations coordinator for humanitarian and development activities in the Occupied Palestinian Territory.<\/p><\/div>\n<\/p>\n
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VII. SECRETARY-GENERAL ISSUES REPORT ON ASSISTANCE<\/strong><\/p><\/div>\n\n
TO THE PALESTINIAN PEOPLE<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>Pursuant to General Assembly resolution <\/i>60\/126 of 15 December 2005, the Secretary-General on 12 May 2006 submitted to the Assembly at its sixty-first session a report entitled “Assistance to the Palestinian People” (A\/61\/80-E\/2006\/72), the summary of which is reproduced below:<\/i><\/p><\/div>\n<\/p>\n
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Summary<\/strong><\/p><\/div>\n<\/p>\n
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