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Economic downturn likely: Experts By A Staff Reporter Kathmandu, Apr. 18: "If the government fails to take some strong and timely measures, the country's economy will collapse in five months," said President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Ravi Bhakta Shrestha today. Shrestha said the country's economy is passing through a difficult phase. He also demanded that the government form a high-level study team to identify the problems. Speaking at a progarmme country's economists, industrialists, traders and bankers showed their concern over the deteriorating situation of the economy saying "concrete measures" are essential to rescue it from worsening further." They said, "The present situation of the Nepalese economy, "which is already vulnerable, has been further aggravated by the Maoist problem." If the current situation is not tackled carefully on time, the economy will plunge into a deep crisis, they warned. The volume of export is constantly going down and the number of tourists coming to Nepal has decreased by 20.7 per cent compared to the previous year. The industrial sector has experienced a drastic downturn. The government has yet to introduce programmes to save the economy, they said. The speakers blamed the government for not rectifying errors plaguing various sectors of the national economy. They said, "The problem of insurgency cannot be the sole cause of economic downturn, there has been a structural problem from the very beginning." Lots of problems have to be identified, they said. Irrelevant politicisation of economy is one of the prime factors for economic slowdown Prof. (Dr.) Bishwombhar Pyakurel said. "Political liberalisation has overshadowed the economic liberalisation for the last twelve years." "The present crisis has emerged not because of external factors, but due to bad management and inefficiencies of the concerned authorities," said Prof. Pyakurel. As the maturity date of most of the major donor aided projects would be over by the end of this year, Prof. Sharma said, " It is high time to identify them and take correct measures to build confidence." Prof. Sharma also indicated the prospects of economic growth. However, he said "Political leaders should have strong commitment to do something." Prof. Sharma called for a governmentpublic partnership approach to activate the economy in true sense. Dr. Raghav Dhwoj Pant, former vice chairman of the National Planning Commission (NPC), accused the concerned authorities of creating panic about the economy. "Instead of building confidence among people they (government officials) are creating fear by saying the economy is going to collapse." He also questioned the projection of the Asian Development Bank (ADB) about Nepal's economic growth rate. "What is the actual basis for 3.5 per cent growth rate, he asked. If the national economy is heading towards crisis the government should introduce reform measures, Dr. Pant said, "The problems should be identified and take measures should be taken." There is structural problem in the economy, said Chartered Accountant Tirtha Raj Upadhaya. "It is not because of the Maoists but because of inherent problems in the economic planning and implementation. The domino effect of bad management has caused the economic stalemate." What kind of indicators are we talking about? President of the Bankers Association Nepal Narendra Bhattarai pointed the need for taking non-tariff measures to overcome the present economic problems. President of the Nepal Chamber of Commerce Rajesh Kazi Shrestha pointed out the need for introducing a reform package. The programme was organised by the Society of the Economic Journalists Nepal (SEJON). FMIS provides irrigation to 70% of total irrigated land By A Staff Reporter Kathmandu, Apr. 18: Farmers Managed Irrigation Systems (FMIS) provide irrigation to 70 per cent of the total irrigated land of about one million hectares. There are 231 irrigation systems and of them only 48 are AMIS, making FMIS the mainstay of the countrys food security systems. FMIS, unlike the donor funded Agency Managed Irrigation Systems (AMIS), are indigenous in their management and responsive to local needs and services. Some FMIS date back centuries and were functioning indigenously. Their existence and contributions in the countrys agriculture was recognised less than two decades ago, which made it difficult for them to become competitive. The second international seminar on Farmer Managed Irrigation System in the Changed Context started today. The two-day seminar, organised by FMIS Promotion Trust, is attended by 124 professionals and researchers from 16 countries. In her keynote speech Dr. Elinor Ostrom, Professor and Co-director of the Workshop on Political Theory and Policy Analysis, Indiana University, USA, said FMIS has outperformed AMIS in terms of technical efficiency, productivity and maintenance. "It is important to institutionalise social capital into physical capital, and to understand and develop roles in social institutions." In his speech Dr. Norman Uphoff, Professor and Director of the Cornell International Institute for Food, Agriculture and Development, focussed on the use of softer aspects of humans for improving irrigation management. He said his experience in Sri Lanka showed the FMIS can be managed efficiently, equally and with equitable distribution. "FMIS gives more solidarity and cooperation among farmers," he said. Robert Yoder, Senior Associate Associates in Rural Development, Burlington, Vermont, USA, said FMIS dealt with the relationship between FMIS and subsistence agriculture in Nepal. He said FMIS include the crafting of institutions rules, roles, responsibilities, and means for managing conflicts. Dr. Prachanda Pradhan, Chairman of the Trust, explained that the objective of the seminar was to share ideas, experience and information on the fast changing context of FMIS. "Two factors have come out prominently: first, the necessity to undertake integrated water resource management so that the scarce resource is better utilised across the sectors; second, the recognition of the role of the individuals and communities in autonomous and centralised water resource management." Vice-chairman of the Trust, Dr. Upendra Gautam said: "FMIS, which represented an autonomous model of resource governance, now requires to protect its values and characterisitics." The Trust honoured three scholars namely Prof. Elinor Ostrom, Prof. Norman Uphoff and Dr. Robert Yoder. From the chair, former Ambassador Dr. Trailokya Nath Uprety lauded the initiative and efforts of the Trust in organising such an international gathering. "In a state where widespread pessimism has almost become an order of the day, FMIS instill hope in the people and are a more appropriate alternative for development than the indiscriminately borrowed western organisational models," he said. Call for withdrawal By A Staff Reporter Kathmandu, Apr. 18: Leaders of major political parties today said the five-day nation-wide shutdown next week called by the Maoists could weaken the already ailing economy and cripple the nation, and called for its withdrawal. "The shutdown is irrelevant, and our party disapproves of it," UML lawmaker Subash Nemwang told a forum here this afternoon. "Political parties call for closures to show that people support their stand, but a forceful closure does not confirm support for the Maoists." "The Maoists have been destroying development infrastructure and creating disorder, forcing people to question their intentions," Nemwang added. "They should immediately stop such activities." Nemwang said the Maoists should ultimately take part in the political system, adding it was the right time to give a signal that they wanted to embrace the political process. "If they want to be a part of the political system, they should immediately withdraw their shutdown call." "The government too should be serious and responsible to rid the nation of the existing crisis," he said. "The state executive has failed to fulfil its commitment to amend the Constitution and bring economic, social and political changes. To show that it is serious, it should match its words with deeds." Nepali Congress leader Dr. Ram Baran Yadav blamed the government for being unable to guarantee security and said it should move ahead firmly to resolve the problems facing the country. He lauded the all-party unity against the Maoists and said they should stand united in the interest of the nation. Yadav said the Maoists, if not controlled by some hidden force, should come to the mainstream. "They should withdraw the shutdown as it will only weaken the economy and harm the nation and democratic system. It will also provide ground to other forces to play. " "The shutdown will not solve the problem," Rastriya Prajatantra Party leader Buddhi Man Tamang said. "It will only cause a great loss to the nation. We will compel the government to talks with the Maoists if they withdraw their strike." Lawmaker of National People's Front Pari Thapa said the call for closure was not in the interest of the nation and the people. "The motive behind it is not good." Nepal Sadbhavana Party's General Secretary agreed, "The strike will paralyse the nation. It should be withdrawn." He said the destruction of development infrastructure had affected the people and wondered, "For whom the Maoists are doing all this?" He said the problem had to be solved through dialogues and asked the government to lead other parties to solve economic, social and political issues. State Minister for Home, Devendra Raj Kandel said initiatives were underway in this direction. "The Prime Minister has been holding talks with the Opposition parties and civil society representatives to solve the problems in the economic, social and political fronts." He said the government had made arrangements to provide security to the public during the shutdown during the five-day shutdown next week and asked all to open shops and use their vehicles. "Compensations will be provided in case anyone incurs any loss." "The government will compensate the vehicle owners as well as the commuters if they bear losses,' State Minister for Works and Transport Shiva Raj Joshi said. Defence Secretary Padam Prasad Acharya and the President of the Federation of Nepalese Chamber of Commerce and Industry stressed on joint efforts of all to restore peace in the country. Middle of 21st century to see depletion of fossil Fuel By A Staff Reporter Kathmandu, Apr. 18: Fossil fuel runs out by the middle of this century, according to Nepalese expert, if consumption continues at the present rate. Today, fossil provides ninty per cent of the world's total energy needs. "Global efforst are made to develop alternative technologies before the supply of such fuel runs out," said Dayananda Bajracharya, Vice Chancellor of RONAST." National expertise in energy field should be encouraged for the development activities." "Tremendous progress has been made in the development of such technology worldwide," Bajracharya said at the four-day awareness programme on Renewable Energy Technologies (RETs). The programme is sponsored by the Winrock International and the USAID. Dean of Institute of Engineering Jiba Raj Pokhrel said that the deployment of RETs has been hindered due to the lack of awareness on energy and proper knowledge of renewable sources. The IOE has been involved in launching awareness programmes on energy among various target groups and conducts research works in renewable energy, Pokhrel said. Director of Centre for Energy Studies, Jagan Nath Shrestha said that the energy consumption ratio showed the living standard status of the societies. Shrestha informed that the rate of per capita energy consumption in Nepal stood at 15 GJ, one of the lowest in the world. " Efficient application of RETs would increase the possibilities of the generation of cleaner form of energy, especially in areas without national electricity grid." RETs being the local resource for power should be handled and owned by local people of local he said. Director of the Winrock International Bikash Pandey mentioned that in Nepal renewable energy should be considered as the main energy source, not just as alternative, especially in rural areas. "The government should use the locally available renewable energy resource to reduce poverty, so that the life of rural community can be improved," Pandey said. Ninteen participants from different districts are taking part in the four-day programme. Re-admission fees scrapped, classrooms await drop-outs By A Staff Reporter Kathmandu, Apr. 18: A nationwide campaign, beginning a week from now, aims to pull children into the classrooms. The Department of Education is launching special programmes to enroll as many six- to ten-year-olds as possible for school year. "We expect cooperation from individuals and institutions, including political parties, local units and communities, to make the campaign a success," said Ram Swarup Sinha, deputy director at the Department. The Department has asked district education committees to brief the political parties and other local organisations about the admission status of children, and find ways to bring more children into schools. In districts without such committees, the District Development Committee chair will coordinate the work. A seven to fifteen member taskforce of head masters, village chairs and vice-chairs, representatives from political parties, teachers and students, will be formed on the first day of the campaign. It will identify the left-out children and the drop-outs, and encourage them to join schools. Schools will enlist guardians cooperation through door-to-door campaigns and children's rallies, mobilise local NGOs, clubs and Mother's Groups. The Ministry of Education has made a stop-gap arrangement to regulate admissions at community and institutional schools until the Education Regulations, being formulated now, come into effect. "We hope to have the regulations ready in about a month," said Sinha. The interim regulations stipulate that primary schools receiving government grants cannot collect any fees from the students. A student who goes on to the next class, will not have to pay re-admission charge. The schools will not collect money from students for building and repair. Until the regulations based on the Education Act of 2028 B.S. come into force, schools will charge monthly fees, which will not be higher than last years. Schools charging too much, or charging for building and repair, will have to pay a fine of up to Rs. 25,000. "If they have already collected students fees which dont comply with the new rules, they will refund them," said Sinha. Blame-game under power sector reform By Navin Singh Khadka Kathmandu, Apr. 18: Critics today accused the Nepal Electricity Authority (NEA) of making a mess of its generation, transmission and distribution systems and called for the unbundling of the three, while the public enterprise passed the blame to Independent Power Producers. The Hydropower Policy 2002--that pronounces the idea of unbundling NEA into separate entities for generation, transmission and distribution involving the private sector fired the first salvo at a meeting to discuss power sector reform here today. Backing that documents recipe were planners, private sector, and members of donor agencies who criticised NEAs modus operandi. "NEAs efficiency, autonomy, and management effectiveness is unsatisfactory," stated Dr. Ching Chi Ni, Deputy Country Director of the Asian Development Bank. "Our assistance for the authority includes preparation of a broader plan in which different models and options will be presented for power sector restructuring and unbundling." Perhaps it is a good idea to set up different companies, said Kush Kumar Joshi, Chairperson of the Industrial Promotion, Environment and Energy Efficiency Committee of the Federation of Nepalese Chambers and Commerce and Industries. "Especially the grid function of NEA needs to be separated from other functions if the power sale among independent producers and consumers is to be organised." NEA has the monopoly on the national grid that now has the installed capacity of around 400 MW. If all goes well, the authoritys biggest power plant, the Kali Gandaki Hydropower Project, would add 144 MW to the national grid within few months. Issues ranging from the authoritys poor coverage of not even 20 per cent of the national population, to its system loss of around 25 per cent were handy tools for critics to press their point home. NEA officials were in no mood to accept so low an opinion about them. They pointed their fingers, among others, at what they called the increasing menace from the Independent Power Producers. In each unit of sales of energy purchased from IPPs, NEA is making loss of Rupees 1.68, said Uttar Kumar Shrestha, Financial Director at NEA. "The power purchase from the IPPs is very high in comparison to internal generation cost and retail tariff." In his list of the reasons behind the high cost of the IPPs power these were included: The take or pay provision that compels the NEA to buy power from the power producers even if it does not need it --, the tariff denomination in US Dollars against which the Nepalese currency devaluates frequently, annual escalation of the price as agreed in the Power Purchase Agreement and the high cost of financing. That is why Nepalese today are forced to pay the worlds highest power tariff9.5 Cents per unit, he said. Even as NEA officials were defending their organisation, they did not dismiss the unbundling concept. They, however, had their "ifs" and "buts". "The unbundling can be of three types," said PMS Pradhan, Deputy Managing Director of NEA. "The transmission and the operation of the national grid should be kept under the public domain. Local bodies, cooperatives and private sector would be encouraged for the distribution." There were words of caution as well. Making transmission into a separate company may drive up the power cost, said Tara Bahadur Pradhanang, Chairman of the Tariff Fixation Commission. "Cost of power to consumers is of major concern of the utility and forming a separate transmission company may be counter productive." For a country like Nepal that has a small system of around 400 MW, too many entities in the power sector could only complicate the matter, said S.B. Pun, a hydropower expert and former NEA chairman. "We cannot afford to copy Bangladesh that has an installed capacity of 3,500 MW or Indias Uttar Pradesh that has its grid of 7,000 MW." Under donors pressing demand, NEA was bundled up as a single utility out of Nepal Electricity Company and Electricity Department in 1985. Not even two decades down the line, the prescription is diametrically opposite: Unbundling of the same authority. 'STF's role vital to develop human resources in SAARC' Kathmandu, Apr. 18 (RSS): The council meeting of the SAARC Teachers' Federation (STF) and planning workshop began here today. STF set up in 1995 was recognised by the 11th SAARC summit conference held in Kathmandu. STF is a regional body of 18 national unions of teachers with 5.2 million teachers as its members. In a message sent to the STF council meeting, Prime Minister Sher Bahadur Deuba expressed confidence that STF activities will play an important role in developing human resources within the SAARC region. Deuba also wished for the success of the STF council meeting and planning workshop. Inaugurating the STF council meeting and planning workshop, Minister for Education and Sports Amod Prasad Upadhyaya said that quality education helps to develop positive attitude and transform the society. Upadhyaya hoped that the STF council meeting and planning workshop would give attention to solving the problems of the education sector and making it more relevant and easily accessible. Secretary general of SAARC Q. A. M. A. Rahim said that 500 million people of SAARC were living in poverty. The situation could improve if quality education is made accessible for everyone, he added. Pakistani Ambassador Fauzia Nasreen threw light on the steps being taken by the government of Pakistan in the education sector. She said that qualified teachers play an important role in materialising the slogan "Education for All." General secretary of the Asia Pacific Education International Sagar Pyakhurel said that adquate budget should be made available for educational infrastructures, practical textbooks and training for teachers. President of the Nepal Trade Union Congress Laxman Basnet said that vocational and technical education should be provided to the students in order to ensure them jobs tomorrow. Acting president of SAARC Teachers' Federation J. K. Raja Pakse and Indian educationist Ram Pal Singh also expressed their views. 'Operate vehicles, keep school open during bandh' Kathmandu, Apr. 18 (RSS): A meeting of representatives of various bodies of His Majesty's Government, transport entrepreneurs and transport workers held under the chairmanship of Minister of State for Labour and Transport Management Shiva Raj Joshi at the Ministry of Labour and Transport Management today urged the transport entrepreneurs to operate all means of transportation and provide their service to the general public as usual in the context of His Majesty's Government fully guaranteeing security in connection with the so-called 'Nepal Bandh' general strike called by the Maoists from April 23 -27. According to the ministry, a record of such vehicles operating in the said period will be maintained and they will be duly rewarded at a later date. Similarly, the ministry stated that action will be taken against vehicles not operating during the said period and His Majesty's Government will provide compensation to vehicles damaged while operating in the designated period. Meanwhile, the Ministry of Education and Sports expects co-operation from all the political parties, conscious citizens, guardians, academics, teachers and students across the country for preventing any kind of obstruction from taking place in the activities of academic institutions. A statement issued after a meeting of high officials from the Home Ministry, security bodies and representatives of the Nepal Teachers' Association, the Nepal National Teachers' Organisation, Nepal Teachers' Council, the Private and Boarding Schools Organisation of Nepal (PABSON) and guardians associations at the Ministry of Education and Sports today calls on all to keep educational institutions open and carry on with their academic activities as usual as non-operation by educational institutions on a regular basis would deal a blow to the country's education system and cause a great loss to the country. The statement claims that all sides concerned have agreed to run the educational institutions as usual since adequate and reliable arrangements have been made for providing security and preventing any kind of untoward incident during the so-called Nepal Bandh. It is the common duty of us all to ensure that educational institutions are run smoothly and without any obstruction whatever the circumstances as educational institutions are not only temples of learning where children read and write but are also places where able and conscious citizens for the future are groomed, the statement reads. PAC to seek details on license renewal of Space Time Kathmandu, Apr. 18 (RSS): The House of Representatives Public Accounts Committee (PAC) met today under the chairmanship of committee chairman Subash Nembang. The meeting decided to invite former minister for information and communications Shiva Raj Joshi at its next meeting on April 22 to inform the committee about the basis for renewing the license of space time network, after discussions on a letter stating his inability to attend today's meeting due to health reasons. The former information and communications minister had been called to the PAC meeting today to explain the basis for renewal of the Space Time Network license. Similarly, the PAC decided to invite acting secretary at the Ministry of Information and Communications Prabhakar Adhikari and electronic engineer Ramesh Adhikari to its meeting on April 22 to testify to the committee about a tape-recorded telephone conversation. The meeting, likewise, decided to call an official representative from Space Time daily to the meeting to inform about the news and editorial, carried by the daily today, on a topic which is under consideration by the PAC. Meanwhile, the House of Representatives Development Committee at its meeting today constituted a report and follow up sub committee under the convenorship of Tanka Prasad Rai to prepare the committee's annual report for 2059 and follow up on work done within the committee's area of responsibility. Krishna Prasad Dahal, Raghuji Pant, Mrs Sushila Nepal and Harilal Joshi are members of the committee. The meeting was chaired by committee chairman Tanka Prasad Rai. Similarly, the House of Representatives Law, Justice and Parliamentary Affairs Committee at its meeting today constituted a sub committee under the convenorship of Benup Raj Prasai to prepare the committee's annual report for 2059. The sub committee has Krishna Pratap Malla, Durga Linkha, Nara Bahadur Hamal and Ramnath Adhikari as members. The meeting also decided to associate Ram Nath Adhikari and Keshar Man Rokka with the sub committee constituted in the past to study the annual report of the attorney general. At the meeeting of the annual report draft sub committee also held today initial discussions were held on the work procedure for preparing the coming annual report. Meanwhile, a discussion programme was organised by the State Affairs Committee of the House of Representatives with an objective of collecting suggestions from the chiefs of concerned bodies and members related with the work -sphere of the committee on the weaknesses seen in the performance of the committee including the role to be played by the committee in resolution of problems regarding good governance and law and order. The participants called for policies in the national interest on the part of the committee in view of its paramount role in formulation of policies on nation and nationalism and in resolving the problems faced by the government. The participants said effective implementation and honest efforts of the officials of concerned bodies will help consolidate democracy with regard to acts and laws for law and order, corruption control and the CIAA under the initiative of the committee. Present on the occasion were committee member legislators, the CIAA Chief Commissioner and commissioners, the chairman of the Public Service Commission and members, the Chief Election Commissioner and commissioners, the chief of the Army Staff, IGP, the Chief of National Investigation Department, the Chief Secretary of HMG, and the secretaries of cabinet secretariat, Prime Minister's Office, Ministries of Defense, Home, and General Administration. Meanwhile, extensive discussions were held at today's meeting of the National Assembly government assurances committee on the progress report on government assurances regarding the Ministry of Land Reform and Management dating back to the 18th session of parliament. The meeting demanded an additional progress report on timber to be provided to the Kamaiyas for their rehabilitation, training, land to the landless, expenses of Rs 280 million pertaining to Kamaiya education and skill training, foodgrain distribution for work and the effective implementation of these programs. Similarly, the meeting also directed that arrangements be made to reward those who provide information on land belonging to the government, trusts and schools in order to retrieve these from the land mafia. The meeting directed resolution of the problem by shifting landless people out of Kathmandu Valley and formulating and fixing a proper policy and setting out a time frame. The meeting was chaired by committee chairman Janardan Acharya. Similarly, a meeting held today under the chairmanship of convenor Devendra Ghimire of the sub-committee formed to monitor and evaluate the fourth report of the committee presented in the past at the National Assembly, discussed probable places for inspection visits in connection with the progress report received from the Ministries of Physical Planning and Works, Science and Technology and Home. Govt for good governance: Speaker Kathmandu, Apr. 18 (RSS): Speaker Taranath Ranabhat has said that Nepal is trying to strengthen efforts to consolidate good governace and the rule of law, inter alia, by intensifying the combat against terrorism, and reiterated opposition to all acts of terrorism in any form or manifestation, no matter when and where it takes place, whomsoever it may be directed against and whoever perpetrates it. He said we are honestly committed to peace and believe that only peace can provide the grounds for development. Without peace, political stability and good governance, frustration will crop up to destroy our concerted efforts for common development. Speaker Ranabhat, who was addressing the third general assembly of the Asian Parliaments for Peace in Chongqing, China, said countries need to strengthen their mutually beneficial cooperation to promote security and peace in this region and the world in general. He said our objective is to achieve a fully inclusive and equitable globalisation, adding that the increasingly globalised economy requires a coherent, holistic approach to the economy that must work for all. It must ensure the right to development by sharing equitably the opportunities and benefits of globalisation in order to resolve income disparity between and among nation states. The slowdown of the global economy and its potentional negative externalities may jeopardise the prospects of peaceful coexistence if we do not effectively address them in time. Pointing out that Nepal has adhered to economic liberalisation and a free market economic policy, and has opened foreign direct investment and other private capital flows, he said in order to ensure enhanced and predictable financial flows to developing countries including Nepal, a secure international financial system is vital and crucial. Observing that a high proportion of the word's women and children are affected by poverty, violence, abuse, exploitation, HIV/AIDS and inadeqate health and education, he said efforts must be directed to promote their rights and their capacity so that they may play an active role in their own development. His Majesty's Government is determined to take immediate steps for the effective implementation of corrective measures and development programmes through decentralisation by ensuring the participation of civil society in govermance, he said. There are lots of problems today in Nepal including terrorism, violence and insecurity, he said. The violent terrorist activities carried out by left extremists have had a negative impact on the governance and economic development of the country. The people are not only suffering terribly but their day to day living is also affected greatly in a number of ways. Thousands of innocent people are killed by the terorists and a large number of infrastrcture destroyed and damaged. They are violating each and every norm of human rights and have adopted barbaric tactics unknown to human civilisation. The terroist activites have forced the government to divert its limited resources allocated for development works to securing peace and order in the country, he said. Pointing out that the root causes for all such problems is poverty, he said this however cannot be an excuse for resorting to terrorism. The existing domestic environment has not only affected the necessary conditions for attracting international investment for the socio-economic development of Nepal but has also marred our image as a peace loving country. We have strong commitment and will to restore the image of Nepal as the birthplace of Lord Buddha, the light of Asia and are confident of overcoming the problem and putting an end to the present state of senseless killing through goodwill and cooperation from the international community. The adoption of the SAARC regional convention for the suppression of terrorism by the SAARC member states in November 4, 1987 in Kathmandu and its execution from December 22, 1988 clearly reflect our commitment against any act of terrorism, he said and urged the world community to condemn terrorist activities in whatever form or manifestation. |
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