September 2009

SEC mulls securities lending as risks exposed

WASHINGTON (Reuters) –
U.S. securities regulators are eyeing new restrictions on the multi-trillion dollar securities lending market used by short-sellers after the credit crisis revealed the industry was "anything but low risk."

Some pension funds, mutual funds and foundations that loaned their securities were "significantly harmed," Mary Schapiro, chairman of the Securities and Exchange Commission, said at the start of a two-day public meeting on the matter.

Historically, institutional investors viewed securities lending as a way to put their dormant assets to work. But during the financial crisis many of them lost money from their cash collateral reinvestment programs that invested money received from stock lending.

"For a long time, securities lending was regarded and described as a relatively low risk venture, but the recent credit crisis revealed that it can be anything but low risk," Schapiro said.

Securities that are loaned are often used by short sellers, who make profits on a stock's decline. Short selling has been blamed by some lawmakers and corporate executives for last year's dramatic drop in stock prices.

Short selling, a legitimate investment strategy, is when an investor borrows stock and sells it in the hope that its price will fall. If the price does drop, the seller profits by buying the stock back at the lower price.

Some funds now feel burned by the middlemen who borrowed their securities, then loaned them to short-sellers.

"We seem to be the big loser and it was our money that was put out there to buy the stock that then went out on loan," said Jerry Davis, chairman of the board of trustees at the New Orleans Employees' Retirement System.

"We have suffered real cash losses and the interests seem to be out of balance in the ... agreements," Davis said.

The public meeting was the latest in a series of steps the SEC has taken to broadly address the issue of short-selling.

The agency has already proposed reinstating a version of the uptick rule, which could curb short selling. That has been opposed by big Wall Street players such as Goldman Sachs Group Inc (GS.N) and Vanguard Group Inc.

Schapiro previously said the SEC aims to finish work on the uptick rule by the end of the year.

(Reporting by Rachelle Younglai; editing by Andre Grenon)

Ga. police arrest suspect in 1976 Mo. killing

COLUMBIA, Mo. – A man who walked into an Atlanta suburb's police department seeking a criminal background check for a job application wound up under arrest as a suspect in the slaying of a former University of Missouri student in 1976, authorities said Tuesday.
Johnny Wright, 65, went to the Lawrenceville Police Department last week for a background check he needed to apply for a job as a driver, police Capt. Greg Vaughn said.
"When they ran the check, they got a hit on him," Vaughn said. "He paid $15 to get arrested."
When Wright returned the next day for his paperwork, Lawrenceville police served a warrant issued in Missouri in 1985 charging Wright with Doisy's death. The 23-year-old woman was a poet and waitress at a popular Columbia diner before she disappeared in August 1976.
Doisy's family had long given up hope that the middle of three daughters would be found — or her suspected killer apprehended. Family members said it had been more than a decade since they last spoke with police about the case. Authorities suspected that Wright had fled the country or even been killed amid West Coast gang warfare, said Dr. Robert Doisy, the victim's father.
"We've been under the impression that she had been dead for a long time," he said. "We're just totally stunned, in utter disbelief and shock."
Wright is being held without bond and awaiting extradition to Missouri, according to the Gwinnett County Detention Center. He was arrested on Sept. 23 and has waived an extradition hearing. Vaughn said that Wright had yet to hire a lawyer.
Doisy was a weekend waitress at Ernie's Steak House when she disappeared on Aug. 5, 1976. Co-workers said that Wright — an ex-convict from St. Louis who had been arrested a dozen times and spent time in prison for burglary — badgered Doisy for a date but was rebuffed.
A resident of Doisy's apartment complex reported seeing her leave with Wright the day she went missing.
In 1985, Wright's former roommate told Columbia police he had seen Doisy's body in Wright's car. Boone County prosecutors initially charged the roommate, Harry Moore, with second-degree murder before he came forward with the additional information. Wright was then charged in the crime on Nov. 26, 1985.
"He must not know that murder warrants are never expunged, or he forgot," said Kathy Doisy, the victim's sister.
Doisy was the granddaughter of Edward A. Doisy, who shared the 1943 Nobel Prize in medicine with another researcher for their discovery of vitamin K. A research building at St. Louis University, where he taught, is named after the scientist.
She completed three years at Missouri's education school but dropped out to avoid relocating from Columbia for a student teaching job, her sister said.
Columbia police were equally surprised that Wright turned up after so many years. They exhumed several bodies in search of Doisy's remains, including from a Crystal City cemetery in 1979 and a northern Boone County root cellar 11 years later.
They also consulted a psychic and roamed the county on horseback in search of Doisy.
"In this day and age, we hear about cases being solved by technology, DNA and that sort of thing," said officer Jessie Haden, a Columbia police spokeswoman. "It's not often we hear about a (murder) case being solved by a suspect turning himself in."
Wright presented a Georgia identification card issued Sept. 17 with his background check application, Vaughn said. The ID contained his real name and birth date.

US Air Force's class of 2009: pilots who won't fly (The Christian Science Monitor)

Washington –
The US Air Force is marking something of a milestone as it positions itself to better address the need for round-the-clock intelligence in Afghanistan and Iraq. Last week, the service graduated the first class of pilots without flight training.
Just eight officers graduated from an experimental training program for the MQ-1 Predator, a remote-controlled aircraft or unmanned aerial vehicle (UAV). But it marks a shift for a service that has defined its leaders by their prowess as flyboys and that is now coming to terms with the less glamorous but critical demands of the current conflicts in Iraq and Afghanistan.
It also suggests the Defense Department's shift to fighting so-called irregular warfare is starting to be institutionalized across the department.
Lt. Gen. David Deptula, deputy chief of staff for Air Force Intelligence, Surveillance, and Reconnaissance, calls the graduation a "transition point" for the Air Force in terms of the way it trains the kind of pilots that are needed today.
"It's a departure from how we've selected and trained pilots for remotely-controlled planes before," he says. Unlike most of the service's other UAV pilots who have undergone 12- to 18-month pilot training for their various aircraft, the eight officers have never flown Air Force planes. And they may never do so. The new training program is four to six months and includes basic flight screening and equipment training.
Deptula emphasizes that this is a test program, and he's not yet sure it will become permanent.
The experimental training is spurred by the insatiable appetite that ground commanders in Iraq and Afghanistan appear to have for the quick intelligence provided by surveillance and reconnaissance missions undertaken by remotely-controlled aircraft. Such pilots an maintain a persistent presence in the sky, monitoring terrorist or other insurgent activity for hours on end and feeding "real-time" video imagery to the people who need it on the ground.
These eyes-in-the-skies can help commanders to make better tactical decisions before they send ground forces into harm's way. The data can also help them to identify broader trends among insurgents – about where fighters are coming from, for example.
Many of the pilots who fly these unmanned aerial vehicles are actually based at Air Force bases in the US, such as the one at Creech Air Force Base in suburban Las Vegas, which flies UAVs over Afghan skies thousands of miles away.
The Air Force has a short-term goal of flying 50 remote-controlled planes over Iraq or Afghanistan at any one time by 2010. Currently, the service flies about 36 remote-controlled airplanes over the two war theaters.
For years, the Air Force has been accused of focusing too much on potential future threats from "near-peer" countries such as Russia or China, at the expense of immediate needs in Iraq and Afghanistan. But more recently – and with Defense Secretary Robert Gates' pointed encouragement – the service has redirected its energies to better support ground commanders in the current conflicts.

Palmer to turn Bay Hill back to par 72

ORLANDO, Fla. – Bay Hill is returning to a par 72 for the Arnold Palmer Invitational after the tournament host decided that it was more fun for the gallery to see players making birdies.
Bay Hill switched to a par 70 the last three years by converting two par 5s into par 4s, including the 16th hole, which often was pivotal in deciding the tournament.
Palmer says Tuesday he wants his course to be challenging. He believes recent renovations of the bunkers, the greens and minor lengthening of some holes has made it more difficult.
But now he's giving way to entertainment value.
The golf great says, "We're going to go back to a par 72 and give them an opportunity to make birdies."

Israeli envoys to US for talks on peacemaking

JERUSALEM – The chief Palestinian negotiator on Tuesday played down expectations for President Barack Obama's latest attempt to restart peace talks, saying key differences with Israel make it difficult for negotiations to resume.
The negotiator, Saeb Erekat, spoke ahead of talks in Washington this week with Obama's Mideast envoy, George Mitchell. The former U.S. senator is holding separate meetings with Israeli and Palestinians teams in hopes of reviving the long-stalled peace talks.
Erekat reiterated the Palestinians' insistence that Israel stop all settlement construction in the West Bank, and stressed there would be no direct talks with the Israelis during this week's trip to Washington.
"There will not be Palestinian-Israeli negotiations in Washington," Erekat said. "There will be parallel American-Israeli negotiations and Palestinian-American negotiations."
The talks in Washington are a follow to Obama's summit last week with Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas in New York. Obama urged the sides to move beyond the two main sticking points — continued Israeli settlement construction and the framework for resuming talks.
Israel has agreed to slow building in the West Bank, captured by Israel in 1967, but has rejected a total halt to construction. Israel had pledged to stop settlement building in a 2003 U.S.-backed peace plan, but has not done so, claiming that the Palestinians have not carried out their obligations.
The Palestinians also want negotiations to begin where they left off under Netanyahu's more dovish predecessor, Ehud Olmert. Netanyahu says he is not obligated to any concessions that Olmert made.
Meanwhile, an Israeli settler was seriously wounded Tuesday when gunmen fired at his car in the West Bank, the military and police said, blaming militants for the shooting.
After initially backing the Palestinian calls for an Israeli settlement freeze, the White House appears to have softened its position, saying it is time for the sides to start talking again even if settlement work continues.
On Saturday, Secretary of State Hillary Rodham Clinton urged Arab nations to take steps toward normalizing relations with Israel in order to help get both sides to the negotiating table. Arab states reacted coolly to Clinton's suggestion.
Israeli representatives of Netanyahu and Defense Minister Ehud Barak are scheduled to meet with Mitchell on Wednesday. Erekat will hold separate talks with Mitchell later in the week.
Among the many obstacles to a final peace deal is the Islamic militant group Hamas' control of the Gaza Strip. Hamas seized power there two years ago after routing forces loyal to Abbas' Fatah movement. Abbas rules only the West Bank.
Israel, which considers Hamas a terrorist group, has said a final peace deal is impossible as long as the Palestinians are divided between two governments.
On Monday, Hamas' exiled leader, Khaled Mashaal, said his group has agreed in principle to a proposal for reconciling with its Fatah rivals in a deal that would clear the way for new presidential and parliamentary elections.
A final deal being brokered by Egyptian mediators will be drawn up and signed in October, Mashaal said in Cairo after talks with Egypt's intelligence chief.
Erekat welcomed the news. "We hope the elections can take place," he said, adding that Palestinian politics must be conducted "in accordance with our national interest."

Play's sequel gives voice to Matt Shepard's killer

NEW YORK – A decade after "The Laramie Project" became a theatrical phenomenon, its creators are back with an epilogue highlighted by a riveting prison interview with the killer of gay college student Matthew Shepard — depicting him as candid but not remorseful over the murder.
The new production, which opens nationwide Oct. 12 at more than 130 theaters, features a segment based on more than 10 hours of face-to-face interviews with convicted killer Aaron McKinney, conducted by Greg Pierotti, a gay actor/writer who helped create the original docudrama.
According to the detailed notes taken by Pierotti and condensed into the new script, McKinney says he had been drawn to crime ever since childhood, feels sympathy for Shepard's parents and expresses regret that he let his own father down.
"As far as Matt is concerned, I don't have any remorse," McKinney is quoted as saying in the script, which was provided to The Associated Press by the production company.
McKinney, according to the script, reiterates his claim that the 1998 killing in Laramie, Wyo., started out as a robbery, but makes clear that his antipathy toward gays played a role.
"The night I did it, I did have hatred for homosexuals," McKinney is quoted as saying. He goes on, according to the script, to say that he still dislikes gays and that his perceptions about Shepard's sex life bolstered his belief that the killing was justified.
McKinney and his accomplice, Russell Henderson, targeted Shepard at a bar in Laramie in part because they assumed he was gay, according to the script.
"Well, he was overly friendly. And he was obviously gay," McKinney is quoted as saying. "That played a part ... his weakness. His frailty. And he was dressed nice. Looked like he had money."
Early on Oct. 7, 1998, McKinney and Henderson offered Shepard a ride in their car, then robbed and savagely pistol whipped him and left him tied to a fence in a remote area outside town. The 21-year-old University of Wyoming student was found 18 hours later and died in a Colorado hospital on Oct. 12.
The murder has become an iconic cornerstone of campaigns to raise awareness about violence against gays and to pass hate-crimes laws. Shepard's mother, Judy, has been an indefatigable campaigner, while "The Laramie Project" — which probed the murder and its aftermath through more than 200 interviews with Laramie residents — has become a well-known and widely viewed theatrical piece.
The New York-based Tectonic Theater Project, which created the original play, began work last year on the epilogue, titled "The Laramie Project: 10 Years Later." The company's artistic director, Moises Kaufman, said he wanted to find out how Laramie had changed in the years since the murder and his team reinterviewed many residents who figured in the earlier play.
More than 1,000 actors — amateur and professional — will be performing when the new show premieres next month on the 11th anniversary of Shepard's death. Participating theaters range from high school stages to New York's Lincoln Center, where Pierotti and other members of the original cast will perform.
Pierotti says he's still not sure if he will play himself in the segment about McKinney, a dialogue that will take about 11 minutes on stage. The script is a condensed and occasionally reordered version of Pierotti's notes from the prison; he says he tried to convey McKinney's words as accurately as possible given that he was not allowed to use a recorder. Officials at Wallens Ridge State Prison in Big Stone Gap, Va., confirmed the interviews.
The last time McKinney made public statements about the murder was in 2004, when he was interviewed by ABC's "20/20." That interview raised the possibility that the crime was motivated by drugs rather than anti-gay sentiment, and Kaufman said he wanted the epilogue to address people's views on whether the murder was a hate crime.
Pierotti said he visited McKinney once last November and twice more in July, speaking with him for more than three hours each time in the community visiting room at the maximum-security facility. McKinney and Henderson, both serving life sentences, are among several Wyoming inmates transferred to Virginia for logistical reasons.
Pierotti says he pressed McKinney several times on the question of remorse.
"Yeah, I got remorse. But probably not the way people want me to," McKinney is quoted as saying. "I got remorse that I didn't live the way my dad taught me to live."
According to the script, McKinney expresses empathy with Shepard's parents over the loss of their son, though he adds about Judy Shepard: "Still, she never shuts up about it, and it's been like 10 years."

"If I could go back and not be the one who killed him, I would," McKinney is quoted as saying. "But I am better off here, myself. I'm doing way better in here than I ever was out there."

Pierotti contacted McKinney through the intervention of the Rev. Roger Schmit, a Roman Catholic priest based in Laramie at the time of the killing. Schmit had many heartfelt talks with McKinney during jailhouse visits.

"When I visited Aaron, I felt there was a sense of remorse," Schmit said in a telephone interview from Kansas City, Mo., where he now lives. "He would often pray for Matthew, for Matthew's family."

Yet Schmit has seen a rehearsal of the new script and said he has no doubt it accurately portrays McKinney's current feelings.

"Of course, it's disappointing to me," Schmit said. "But I have confidence in his teachableness."

Pierotti said he found McKinney's demeanor and views unsettling at times, but also compelling to the point where he sought to build a level of mutual trust. For example, Pierotti chose to acknowledge to McKinney, at their last meeting, that he was gay, and recalls McKinney responding amicably, "I thought so."

"He's perfectly comfortable acknowledging he doesn't like gay people, and for me it was unnerving to experience his lack of remorse," Pierotti said. "Yet I feel very protective of him — not in an apologist way, but I see he has a lot of complexity. ... As an artist, it's more interesting to dig into who this person is."

In the script, Pierotti asks if McKinney, who is now 32, he expects to ever go free.

"Man, I'm never getting out of here," McKinney is quoted as responding. "I'm like the poster child for hate-crime murders. ... And you got to resign yourself to it or you go crazy."

Cap Cana

Cap Cana is located in the Eastern region of the Dominican Republic known as Juanillo. The site was founded as a new and more ambitious touristic site with contributions from international investors and strategic partners such as Ritz-Carlton, Sotogrande, Donald Trump and many others. The site has a Marina, Large resorts, beaches, and many others. Primarily founded as a site to attract international visitors. The Cap Cana Championship, a Champions Tour golf tournament, is held at Punta Espada Golf Club in Cap Cana, a course designed by Jack Nicklaus.

Cap Cana's area includes more than one-hundred and twenty millon square meters of land, of which twenty-five million will be developed in its first phase. It also includes 8 kilometers of beach and coasts, 5 of which are considered to be among the most spectacular in the Caribbean, locally considered to be neck-in-neck to the beaches of Bahia de Las Aguilas (literally, Bay of the Eagles) located in the southwestern municipality of Perdernales- often referred by past visitors as some of the most beautiful in the world.

Cap Cana

Van Persie warns Arsenal to focus for Olympiakos

LONDON (AFP) –
Robin van Persie has warned Arsenal not to underestimate Olympiakos in Tuesday's Champions League clash at the Emirates Stadium.

Arsene Wenger's team are favourites to qualify from Group H as the section's winners after being drawn with Olympiakos, Standard Liege and AZ Alkmaar.

But the Gunners almost slipped up in their first match as Liege raced into a two-goal lead against the Premier League club within five minutes in Belgium.

Arsenal eventually fought back to claim a 3-2 win but van Persie believes another careless display against Olympiakos could prove costly.

The 26-year-old, who scored the winner at Fulham on Saturday, knows Arsenal's young squad are capable of emulating, or even improving on, last season's semi-final appearance as long as they don't take opponents for granted.

"It is a good draw for us name wise, but as a player you need to produce in every single game because our opponents look at it from a different point of view," van Persie told Arsenal's magazine.

"They will give all they have against us. We need to be ready for that.

"I think we are, because we all know how football works when you do not give 100 percent - any team can beat you, even a Blue Square League team.

"When you do not do everything, you are gone. We will do that in this group and have a good chance of going through."

Van Persie was Arsenal's leading scorer last season with 20 goals from 44 appearances, but even the Dutch forward's efforts couldn't stop the Gunners finishing without silverware for a fourth successive season.

The trophy drought has convinced some that Arsenal's best days are behind them, but van Persie is determined to help Wenger take the club back to the top in England and Europe.

"I want to give what I hope are my best years to Arsenal, because I love the club and want to succeed here," Van Persie said.

"And it is not just about winning trophies - I can say that in the last five years I have won lots of trophies myself as a human, if you see what I mean, as well as footballing achievements.

"The steps I have made from day one to now are, I think, big. I am really just thankful for the chance to have done that - thankful to the fans, the boss, the players, to everyone who has a warm heart for Arsenal.

"So it is not simply about trophies, it is the whole story of Arsenal giving me lots of positive things.

"Of course the end result is trophies and I want that - but I am not closing my mind to what is happening day in and day out at this club."

While Arsenal's squad is undoubtedly one of the younger in the Champions League, van Persie doesn't believe age is an excuse for failing to deliver on their potential.

Instead he draws strength from the way players from so many differing backgrounds have bonded together because of their time together in the club's youth academy.

"I do feel our team spirit is at a higher level than most other clubs. Other clubs have lots of egos. We have egos here but the whole squad has good egos and good characters. That is not the case at many other clubs," he added.

"We now have more experience too. There is me, Clichy, Fabregas and Song - we cannot hide behind saying we are inexperienced any more. It is now about how much we really want it."

Sri Lanka under fire for lack of Tamil reconciliation (The Christian Science Monitor)

New Delhi –
When Sri Lanka's government finally defeated the secessionist Liberation Tigers of Tamil Eelam (LTTE) in May, even its harshest critics rejoiced. Here, at last, was a chance to bring peace to an island that had suffered 26 years of war, in which as many as 100,000 people were killed.
The end of the war gave Sri Lanka an opportunity to heal the bitter ethnic conflict between the Sinhalese majority and Tamil minority that had fueled it. But even as the government says it seeks reconciliation, it is drawing fire for actions that appear counterproductive to achieving that goal.
Chief among the complaints is delaying the return of more than 250,000 displaced Tamils. They have been refused permission to return to their homes or, in many cases, unite with spouses and children living in other camps. In addition, aid agencies have been given limited access to the camps and most reporters have been barred.
Last Friday, President Mahinda Rajapaksa announced he would ensure the return of all refugees by January, after demining operations were completed in the areas around their homes. The government has also said it wants to ensure that it identifies any Tamil militants among the displaced before allowing them to go home.
Mr. Rajapaksa's assurances came during a meeting with UN envoy Lynn Pascoe, who was visiting the country to follow up on a number of issues including the government's expulsion of James Elder, a spokesman for UNICEF – the United Nations' child-welfare agency.
The government said Mr. Elder, who had said recently that the island's monsoon rains would cause chaos in the camps, was "spreading propaganda." During the final, most bloody stage of the war earlier this year, Elder had described the "unimaginable suffering" of children caught in the fighting, including babies he had seen with shrapnel wounds.
In August, heavy showers had caused latrines in the camp to overflow, heightening concerns about the spread of contagious diseases.
Jehan Perera, executive director of the National Peace Council of Sri Lanka, a nonpartisan advocacy group, says that at least three children died in one camp in August, "which shows the sense of what [Elder] was saying."
Treating every Tamil as a terrorist?After Sri Lanka gave Elder a Sept. 21 deadline for leaving the country, the office of UN Secretary-General Ban Ki-Moon said that the organization was "working impartially to assist the people of Sri Lanka." This included "making public statements when necessary in an effort to save lives and prevent grave humanitarian problems."
Elder reportedly left the country Sept. 18, marking the first expulsion of a UN worker from Sri Lanka. Many see it as yet another example of the government's intolerance of any criticism of its tactics either during or after the war.
But more worryingly, the government's apparent conflation of the defense of the rights of ordinary Tamils with LTTE propaganda suggests an unwillingness to tackle Tamil grievances – without which peace will be difficult, if not impossible.
"It seems absolutely racist, to treat every Tamil as if he was a potential member of the Tamil Tigers," says Suhas Chakma of the Delhi-based Asian Center for Human Rights.
Human rights abusesIn late August, President Rajapaksa told Forbes magazine, "I want to be the leader who brings permanent peace and development to this country," as well as reconciliation with Tamil communities, he added.
But even as the government promises to bring reconciliation, in recent weeks a series of alarming reports have come out of Sri Lanka. Tamils, who constitute around 12 percent of the population of 20 million, have endured decades of institutionalized discrimination at the hands of the Sinhalese.
Only days before Mr. Rajapaksa's comment, British television aired a video that apparently showed soldiers killing unarmed, naked, and blindfolded Tamils – which would constitute a serious violation of international law – during the last and bloodiest phase of the war.
The footage was obtained by Journalists for Democracy in Sri Lanka, an organization made up of several dozen expatriate Sri Lankan journalists, which said the film was taken by a Sri Lankan soldier in January using his mobile phone.
The government has said the footage is "doctored." But Philip Alston, the UN's special rapporteur on extrajudicial, summary or arbitrary executions, has said he hoped the UN would open an investigation into the video.
Political settlementLess dramatic but equally important, the government is also failing to develop a long-promised political settlement for the Tamils.

That settlement – which is included in the country's Constitution and widely accepted as a vital condition for peace – involves giving Tamils some measure of regional devolution.

But Rajapaksa said recently he would delay that solution until after his reelection, which may happen next year.

It is not surprising that Rajapaksa feels no sense of urgency. An ardent Sinhalese nationalist, his popularity ratings have soared since the Tigers were vanquished. The government has said the economy is expected to grow by 5 percent this year – double what was previously expected, after the International Monetary Fund agreed to a $2.6 billion loan. And tourist numbers are beginning to pick up.

Nor is Rajapaksa is likely to be swayed by international pressure. Sri Lanka is expected to lose a valuable trade concession granted by the European Union after it failed to meet its terms, which include stipulations on human rights. But Sri Lanka has forged friendships with other parts of the world, including China, Libya, and Pakistan, thus reducing its economic dependence on Europe and the US.

In the end, says Mr. Perera, the only thing likely to change the government's behavior is democracy. As more elections are held in Tamil-heavy areas once ruled by the LTTE, the government, "will need to build up Tamil votes," he says. "At the moment the government does not see the price it will have to pay [for its treatment of the Tamils] but it will have to pay – and that, we hope, will make it change."

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The word perfume used today derives from the Latin "per fumum", meaning through smoke. Perfumery, or the art of making perfumes, began in ancient Mesopotamia and Egypt but was developed and further refined by the Romans and Persians. Although perfume and perfumery also existed in East Asia, much of its fragrances are incense based.

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