February 3, 2006
 
AT THE SECOND LEG OF HIS ASIAN TOUR:
THE CUSTODIAN OF THE TWO HOLY MOSQUES REVIEWS WITH THE INDIAN PRESIDENT AND PRIME MINISTER BILATERAL RELATIONS AND REGIONAL AND INTERNATIONAL ISSUES.
KING ABDULLAH AND THE INDIAN PRIME MINISTER PATRONIZE THE SIGNING OF FOUR AGREEMENTS FOR COOPERATION, TRADE AND SECURITY.
THE CUSTODIAN OF THE TWO HOLY MOSQUES: WE WELCOME INDIAN INVESTMENTS IN OUR COUNTRY.


India President Abu Bakr Zein-al-Abideen Abul-Kalam received the Custodian of the two Holy Mosques King Abdullah Ibn Abdul Aziz. Following the reception King Abdullah expressed appreciation for the warm welcome given to him by the Indian President and Premier.

He highlighted the existing deep-rooted relations between the Kingdom of Saudi Arabia and India.

King Abdullah hoped that his current visit to India would positively contribute to further enhancing the existing Saudi-Indian relations.

The Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz and India's President Abu Bakr Zein-al-Abideen Abul-Kalam held a meeting at the presidential palace in New Delhi. During the meeting, they discussed aspects of the bilateral cooperation between the two countries in various fields and reviewed other issues of mutual concern.

The meeting was attended by the King's official accompanying delegation and a number of Indian government officials. Then, President Abul-Kalam held a dinner party in honor of King Abdullah Ibn Abdul Aziz.

In an address on the occasion, the President welcomed King Abdullah on his first official visit to India and said it is considered as a great step towards bolstering friendly and brotherly relations between the two countries.

"We have waited for this visit for a long time. I am honored and happy to receive Your Majesty and your visit on behalf of the Saudi people with whom we have been in touch for a very long time."

Addressing the Custodian of the Two Holy Mosques, the President said " It is a great honor for us that you have chosen India as part of your (Asian) tour following your ascension as the King of the Kingdom of Saudi Arabia. Moreover, this is also the first visit by a Saudi King after nearly 50 years. This visit also shows that how important and beloved is India to Saudi Arabia. Additionally, this long-awaited visit is significant in the light of the current developments and changes in the perspective of the long-run. It also points to a new motivation towards the bilateral political dialogue and economic partnership. Moreover, the bilateral friendship between the two peoples has been there for centuries. The two countries have been united by links of trade, culture, religion and philosophy. We are also pleased to inform that more than 1.5 million Indian expatriates are contributing positively to our friendly relations. We do appreciate your big support to the prosperity of the Indian expatriates."

The Indian President said " The Kingdom of Saudi Arabia is important to the entire world in political, strategic and economic fields. Therefore, peace and stability in the Gulf region are vital for all of us. Moreover, we share common concern to combat terrorism which prompts us to promote greater cooperation in this regard. We do appreciate your initiative to hold an international counter-terrorism conference (in Riyadh). We look forward to comprehensive cooperation between the two countries to enhance further the security of our region. The Kingdom of Saudi Arabia has always been an important partner to India. We are pleased that the friendly links between the two countries have been enhanced further recently. In addition, our trade relations have grown faster, generating numerous opportunities for cooperation. "Nevertheless, we are good partners in the energy sector. A quarter of Indian imports of crude oil comes from the Kingdom of Saudi Arabia. It is expected that demand for energy will rise further with the rapid Indian economic growth. The Indian and Saudi companies are initiating advanced joint projects in the two countries. The sixth meeting of the Joint Indo-Saudi Commission, which was held in Riyadh in the month of April last year, had underlined the importance of our economic relations."

The President said the Kingdom of Saudi Arabia and India have been enjoying friendly relations. "However, these bilateral ties have to accomplish more heights by strengthening further cooperation in various fields, especially in trade and investment. The economies of the two countries are complementary to each other. Moreover, the rapid Indian economic growth will generate new avenues of important and crucial partnerships in several sectors including energy, infrastructure, industry, information technology, science and technology. We need to accomplish strategic partnership in the field of energy and develop long-term partnership through joint projects in fields of gas and energy. We welcome Saudi investments in the Indian economy and we look forward to a new era of cooperation for the benefit of the two countries.

"India is ready to share its experiences in science; information technology and vital technology; primary health care and higher education. It is also possible to promote cooperation in the field of saline water conversion technology with the use of solar energy which is more economical than the traditional methods, " the President said.

The President said "The economic reforms, launched in the two countries' developing and wide markets, offer new opportunities for beneficial joint ventures. The era of globalization has generated new opportunities and challenges prompting India and the Kingdom of Saudi Arabia to come together to face them through enhancing cooperation for the joint benefits to the two countries. Moreover, our wide-ranging economic relations will strengthen our strategic and centuries-old political and deep-rooted relations that have been linked by history and culture.

Addressing the King, the President said " our talks have shown identical viewpoints on numerous issues pertaining to the region in particular and the rest of the world in general. Both of us support the establishment of an independent and self-reliant Palestinian state and call for its peace and prosperity. Moreover, We also look forward to seeing a united, prosperous, peaceful and stable Iraq. We have joint concern to preserve safe and peaceful atmosphere in the Gulf region for the development of the region's countries.

I am pleased that the Kingdom of Saudi Arabia and India signed today (Wednesday, January 25) several agreements. Additional accords are still under study. All these will enhance further our friendly relations. I am confident that our talks and strong and durable relations would be vital factor for stability and cooperation in the face of current challenges taking place in the region. I am looking forward confidently to promoting cooperation for a better future.

Addressing the Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz, the Indian President wished him good health and happiness as well as constant progress and prosperity to the friendly people of the Kingdom of Saudi Arabia as well as wished for constant friendly relations between the Kingdom and India.

In his speech on the occasion, the Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz said he thanked the Indian President for what he had said in his address about him (Monarch) and the Saudi people. " We are pleased to convey greetings of the Saudi people to the Indian people. I would also like to thank you for the warm reception and hospitality offered to me and my accompanying delegation," the King said.

King Abdullah expressed optimism that this visit would be the vital step towards developing further the bilateral relations, pointing out that these relations are deepening day by day with increases in trade and investment as well as close cooperation in the fields of energy, especially guaranteeing imports needed by India. "India's economic growth has attracted world attention. We are happy that the Kingdom of Saudi Arabia will be one of India's major trade partners. Moreover, the Kingdom is also happy to host more than 1.5 million Indians who are contributing to the progress, development and prosperity of the two countries."

King Abdullah said " Stability requires security and peace. Wars, as everyone knows are destructive. There is no victor or loser in any war. In the light of our excellent relations with Pakistan and our growing relations with India as well as our sincere desire for peace, we hope that the Indo-Pak talks would reach solutions to unresolved issues acceptable to the two sides as well as defuse tension and achieve security and stability."

In the light of our sincere desire for peace, King Abdullah expressed hope that India would continue its historic support to the Palestinian issue to contribute to the international efforts to reach a fair and comprehensive settlement for the Palestinian problem that has been affecting the entire region.

Addressing the President, King Abdullah extended invitations to the Indian President and Prime Minister to visit the Kingdom of Saudi Arabia.

The Custodian of the two Holy Mosques King Abdullah Ibn Abdul Aziz and Dr. Manmuham Singh, India's Prime Minister, held a meeting attended by a number of Saudi and Indian officials.

Then, the king and the premier chaired a broad session attended by the official delegations of the two countries.

During the session, discussions focused on regional and international issues and bilateral relations.

Afterwards, the two leaders attended the signing of several agreements between the two countries on cooperation in fighting crime, promotion and protection of investments between the two countries, tax duplication prevention and cooperation in the field of youth and sports.

Later, the premier held a luncheon in honor of the king and the accompanying delegation.

The Custodian of the two Holy Mosques King Abdullah Ibn Abdul Aziz arrived in New Delhi coming from Beijing for a several day state visit to India at an invitation from President Abu Bakr Zein-al-Abideen Abul-Kalam of India.

King Abdullah was received at New Delhi air base by Dr. Manmuham Singh, Prime Minister; Berya Rangen Das, Minister of Information; A. Ahmed, Minister of State for Foreign Affairs; Rajiv Sakri, Undersecretary of the Ministry of Foreign Affairs for Asian Affairs; Saudi Ambassador to India Salih bin Mohammed Alghamdi; GCC countries ambassadors accredited to India; Chief of Protocol Yak Ranjan Shukria and senior officials.

Escorted by the Indian Minister of Information, then King Abdullah headed in an official motorcade to the official guest house.

King Abdullah's accompanying delegation includes Prince Saud Al-Faisal, Minister of Foreign Affairs; Prince Miqren Ibn Abdul Aziz, Chief of General Intelligence; Prince Faisal Ibn Abdullah Ibn Mohammed Al Saud, Assistant Chief of General Intelligence; Prince Bandar Ibn Sultan Ibn Abdul Aziz, Secretary General of the National Security Council; Prince Turki Ibn Abdullah Ibn Mohammed al Saud, Advisor tot he King; Prince Mansour Ibn Nassir Ibn Abdul Aziz; Prince Dr. Bandar Ibn Salman Ibn Mohammed Al Saud, Advisor to the King; Prince Mishaal Ibn Abdullah Ibn Abdul Aziz, Minister Plenipotentiary at the Foreign Minister's office; Prince Turki Ibn Abdullah Ibn Abdul Aziz; Prince Abdulaziz Ibn Fahd Ibn Abdul Aziz, Minster of State, Member of the Cabinet and Chief of the Court of the Cabinet's Presidency; Prince Saud Ibn Abdullah Ibn Abdul Aziz; Prince Mansour Ibn Abdullah Ibn Abdul Aziz; Prince Majed Ibn Abdullah Ibn Abdul Aziz; Dr. Ghazi Ibn Abdul Rahman AlGosaibi, Minister of labor; Eng. Ali Ibn Ibrahim Al Naimi, Minister of Petroleum and Mineral Resources; Dr. Ibrahim Al Assaf, Minister of Finance; Iyad Ibn Ameen Madani, Minister of Culture and Information; senor protocol officials and Saudi ambassador to India Salih Ibn Mohammed Al Ghamdi.

The Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz and India's Prime Minister Dr. Manmohan Singh co-patronized an inauguration ceremony of Saudi Products Exhibition, organized by Exports Promotion Commission, an affiliate of the Council of Saudi Commerce and Industry Chambers, on the occasion of the King's visit to India.

Upon arrival at the venue, the Monarch was received by the Indian Premier; the Council's Chairman Abdul Rahman Al-Rashid and a number of Saudi businessmen.

The King and the Premier jointly cut a ribbon marking the inauguration. Then they toured the exhibition.

A speech ceremony was held on this occasion.

Addressing the ceremony, the King commended the great development of economic and commercial relations which have been embodied by exchange of visits, commercial cooperation between Indian and Saudi businessmen and the establishment of Saudi-Indian Businessmen Council. He hoped the Council will play a fruitful and good role in the development of bilateral commercial and economic relations.

We welcome our friends of Indian businessmen to invest in the Kingdom in various sectors and economic and commercial activities particularly in the fields of information technology, communications, medicine, mining, electricity, energy and services, the Custodian of the Two Holy Mosques said.

I am pleased to announce that we have reached two important agreements with friendly India. The first one on investment protection, promotion and exchange and the second on the prevention of duplicate taxation, the King added.

At the conclusion of his speech, King Abdullah wished them all success and happiness and thanked the Premier of friendly India.

On his part, the Indian Premier said that the King's visit to India will further enhance economic and trade relations between the two countries, describing the visit as historical.

He thanked the King for gracing this ceremony, wishing it will be a first fruitful step in a productive and intensive stage in relations between the two countries.

Dr. Singh hailed the King's attendance as a major honor guest on the occasion of the celebration of the Republic of India's Day which clearly indicates a new stage of further enhancement of relations.

The Indian Premier commended the Kingdom's accession to the World Trade Organization (WTO), wishing this matter to enhance economic relations between the Kingdom and India.

He pointed out that there have been nearly 49 Saudi-Indian joint projects in India, noting the Kingdom's approval of 82 Indian projects in the Kingdom.

Dr. Singh said that India has been the 4th biggest trade partner to the Kingdom and the total size of bilateral trade reached $ 9 billion in 2004.

Many Indian companies have invested in the Kingdom particularly in the fields of oil, gas, petrochemicals, information technology, communications and sciences, he noted.

The ceremony was also addressed by Al-Rashid who pointed out that Saudi exports to India amounted to nearly $ 9.8 billion in 2005 . Oil exports represented more than 94 percent of this sum, he said and added that Indian imports amounted to $ 1.65 billion.

He noted that the Saudi-Indian joint licensed projects set up in the Kingdom reached 106 amounting to nearly $ 455 million.

Then Dr. Fahd Al-Sultan, the Secretary General of the Council of Saudi Commerce and Industry Chambers announced that Saudi and Indian businessmen have signed 22 agreements over the previous few days to set up joint projects within the framework of the interest of the leaderships of the two countries to enhance joint cooperation in all economic and developmental fields.

The ceremony was attended by the King's accompanying delegation, senior Indian officials and Saudi and Indian businessmen.

The Custodian of the two Holy Mosques King Abdullah Ibn Abdul Aziz, received at his guest house in New Delhi a delegation of the Saudi Civil Community, on a visit coinciding with the king's visit to India.

During the meeting, they briefed him on the outcome of their week-long visit aiming at enhancing social contacts between the Saudi and Indian societies.

They told the king that they had opportunities to visit a number of academic, social, cultural and strategic centers and universities on one hand and highlighted the aspects of cultural and social life in the Kingdom on the television and media on the other. The monarch lauded their work.

Saudi and Indian businessmen signed ten economic agreements following the opening of the Saudi Products Exhibition by the Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz in New Delhi.

The agreements include the establishment of the Saudi Indian Company for Joint Investment under the umbrella of the Saudi Chambers of Commerce; Al zamil Iron Factory; and Bushnag Company for Water Services; the expansion of the India-based Amiantit Factory; and the development of the Saudi TV technology. During the signing ceremony, attended by Minister of Finance Dr. Ibrahim Al Assaf, also signed were a health care contract between Al Batargy Group of Saudi Arabia and VIKI group of India, a partnership between Saudi Al Mamlakah Company for Instalment and HDFS of India in the field of Real Estate finance; and an agreement for the agency for oil and gas materials and equipment between Saudi Al Tafra holding company and Interdrill Asia limited of India.

Moreover an agreement to set up an energy and oil engineering company; the construction of a hospital to be run by Al Hukair group; and the establishment of an investment bank between Manar Group for Financial Services and India's SBA company were also signed.

Following the ceremony, Al Assaf expressed happiness for the advance of the economic relations between the Kingdom and India, rating the signing of several agreements at one shot today as a substantial step in the process of enhancing the economic cooperation between the two countries.

Following the current visit of the king to India, the economic cooperation between the two friendly countries was poised to usher in a new era, the minister said.

He added that potentials of cooperation between the two countries are promising and wide enough to cope with every activity and meet all needs, noting that the agreements signed here today will constitute an important base for promoting cooperation between the two counties in the future.

Saudi ambassador to India Salih Al Ghamidi has highlighted the importance of the visit of the Custodian of the two Holy Mosques King Abdullah Ibn Abdul Aziz to India, and said it comes as a culmination for the sincere efforts exerted by the Saudi and Indian leaderships to further cement bilateral relations.

In a statement to SPA, Al Ghamidi said the visit of King Abdullah is the first of its kind since the visit of Late King Saud Ibn Abdul Aziz to India in 1955.

He noted that King Abdullah will be the major guest of the Indian national day this year.

'Realizing the Kingdom's important political and economic weight at the regional and international arenas, the Indians do attach a great importance to the visit', said the ambassador adding that 'on the fringes of the visit an exhibition on the Saudi industries will be organized, and a number of agreements will be signed in various domains'.

The ambassador said India is one of the most important ten countries that establish commercial relations with the Kingdom. He noted that the volume of trade exchange between the two countries amounted in 2005 to SR 37 billion.

The value of the Kingdom exports to India amounted to SR 30800 million, while the Kingdom's imports from India amounted to SR6200 million, he added.

The ambassador said the Saudi-Indian joint commission for economic, commercial, scientific, technical and cultural cooperation was established in 1981 for further developing commercial and economic relations between the two countries.

Meanwhile High-ranking Indian officials have welcomed the historic visit of Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz to New Delhi - the first by a Saudi king in 50 years.

Indian Minister of State for External Affairs E. Ahmed described the visit as "important and historic." Speaking to Saudi reporters, Ahmed said India was attaching great importance to the royal visit. He said Abdullah's visit would further strengthen the longstanding relations between the two countries.

Indian Oil Minister Mani Shankar Aiyar, meanwhile, said his country would seek Saudi Aramco's participation in the refinery project of Hindustan Petroleum in Visakhapatnam in southern Andhra Pradesh state. "Our offer of collaboration in Visakhapatnam is open to Saudis," he said.

Aiyar hoped to discuss certain bilateral issues with his Saudi counterpart Ali Al-Naimi, who is part of a high-level delegation that will accompany King Abdullah. "The issue of hydrocarbon cooperation is also a component of bilateral talks that are going to be held between Prime Minister Manmohan Singh and the Saudi king," Aiyar said.

"So far as the oil component of our energy security is concerned, we have a strong assurance from Saudi Arabia that any incremental requirement will be met by them," he said. The minister further added that 26 percent dependence on Saudi Arabia is the optimal level and now there was a need to diversify oil sources.

Saudi Arabia accounts for almost a quarter of India's total imports of oil of 1.9 million barrels per day. In 2004, New Delhi bought crude worth $6.2 billion from the Kingdom, the report said.

Former Indian ambassador to the Kingdom of Saudi Arabia, Mohammad Hamid Ansari, who is a member of the Strategic Studies Center in India, said Saudi-Indian summit talks would focus on security and economic issues. "I am hopeful that the royal visit would have a positive effect," he told Saudi journalists.

Member of Parliament Najma Heptullah, who has visited the Kingdom several times, said she was looking forward to the king's state visit with great happiness.

Well-known Indian journalist and editor in chief of Asian Age newspaper M.J. Akbar emphasized the significance of Abdullah's visit to India in the light of the Saudi king's important position in the world as an advocate of peace. "I am confident that the visit would have tremendous impact not only on Saudi-Indian relations but on the continent at large," he pointed out.

Indian ambassador to the Kingdom of Saudi Arabia M.O.H. Farooq has underscored the importance of the visit of the Custodian of the two Holy Mosques King Abdullah Ibn Abdul Aziz to India, and said the visit would positively contribute to further enhancing Saudi-Indian relations.

In a statement to SPA, the ambassador said Saudi-Indian relations are deep-rooted and they go back to several centuries.

Underlining the importance of the existing Saudi-Indian economic relations, he said the Kingdom of Saudi Arabia constitutes an important source of energy for India.

The ambassador noted that during the visit of King Abdullah to New Delhi the Indian officials will exchange views with him on issues of mutual interest, notably means for fighting terrorism, protection of reciprocal investments, means for avoiding dual taxing, cooperation in the agricultural and educational spheres as well as the international political and economic developments.

On the economic relations between the Kingdom and India, the ambassador said India constitutes the fourth partner of the Kingdom in the field of trade exchange, while the Kingdom ranks the 15th in the list of markets India has been dealing with.

He said that the volume of trade exchange between the two countries amounted to about $6.63 billion within the years 2003 and 2004.

The Indian ambassador reiterated the keenness of his country on enhancing cooperation with the Kingdom in the domains of trade, economy, sciences, technology as well as scientific research, especially agricultural research, information technology and telecommunications. 'The Indian industry union is looking for establishing a joint fund with the Kingdom in the field of infrastructure with a value of $1 billion', he said noting that the two countries will share in the fund.

Saudi-Indian relations got a big boost yesterday with the signing of 15 agreements, including a landmark anti-terror pact, on the second day of the historic visit of Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz.

The Saudi king and Prime Minister Manmohan Singh held one-on-one talks that lasted close to 45 minutes at Hyderabad House. Manmohan described Saudi Arabia as "an important partner in combating global terrorism," External Affairs Ministry spokesperson Navtej Sarna told reporters.

King Abdullah described India as a "second home" and hoped his visit would take bilateral ties to new heights. Abdullah was earlier given a warm ceremonial welcome at the presidential palace, complete with military regalia and pomp and a 21-gun salute.

King Abdullah told Manmohan his country had "declared a war on terror," Sarna said after the meeting.

"It might be a long-term struggle, the battle will continue unless this scourge is eliminated," the ministry spokesman quoted the king as saying.

The anti-terror accord focuses on strengthening cooperation in tackling transnational crime, terrorism and the smuggling of narcotics. The two sides also signed an agreement to eliminate double taxation, a pact on investment promotion and cooperation and an agreement relating to youth and sports.

The accords underline the growing close ties between the two countries and are expected to provide a major boost to bilateral relations.

"This visit will renew historic ties between India and Saudi Arabia," Abdullah said before beginning talks with Manmohan. "I would like to thank the president, the prime minister and the friendly people of India for their warmth and hospitality," the king said.

"I consider myself to be in a second home," he told reporters.

On the other hand US Deputy Secretary of State Robert Zoellick said in a press conference: "I was pleased to see that King Abdullah was here because I think a good energy relationship, as I've discussed, is an important part of our relationship with China, of China's relationship with the world, and I've long made the case that the issue of energy security has to be seen in a global context, in terms of multiplying non-oil and gas sources of supply, multiplying oil and gas sources of supply, dealing with the demand side and efficiencies, dealing with maritime security issues, dealing with strategic reserves, so that's been a important part of the overall discussion."

He added that he discussed a wide range issue on the bilateral agenda, regional topics, global issues dealing with security and economics, reform issues and openness in China. In addition to the topics in the regional agenda, this has extended to Afghanistan, Iraq and the challenges faced in Iran.

On Iran he said "that was another topic. There, it's obviously a very important dimension of our work with China and other countries right now. Secretary Rice is actively involved in this topic as I speak. It's important because the United States has tried to work with the EU-3 and Russia to make sure that Iran does not take the steps to start to develop a nuclear weapons program My country has tried to avoid any confrontation. That's why we've worked with the Russians and others on this process, and that's why we're trying to work in a global context with our UN Security Council partners and others to make clear to Iran that this would not be a positive step and development, and we have tried to offer other alternatives, for example, working with the Russians on their idea to allow civilian nuclear programs, but not one that gives you access to the fuel cycle for nuclear weapons. So, yes, that's an important part of our discussion."

Meanwhile the American media has continued its coverage of the Custodian of the Two Holy Mosques tour in Asia. MSNBC said King Abdullah's tour confirms that India and China are major consumers of Saudi oil, while the visits to Malaysia and Pakistan will focus on enhancing diplomatic and trade relations between the Kingdom of Saudi Arabia and its historical friends.

The Boston Globe from its side covered King Abdullah's visit to China and India saying Saudi Arabia and China inked a deal on energy cooperation, amid efforts by China to secure overseas oil and gas deposits for its economy.

The agreement was signed during a visit to China by Saudi King Abdullah, the first by a Saudi ruler since the two countries formed diplomatic relations in 1990.

King Abdullah met with Chinese President Hu Jintao and the two leaders observed the signing of the cooperation agreement covering oil, natural gas and minerals.

China, the world's No. 2 oil consumer, has been aggressively seeking to strengthen relationships with major oil suppliers as it grows more heavily reliant on oil imports.

Saudi Arabia accounts for about 17 percent of China's imported oil.

Four other agreements were also signed by representatives from the two sides, including one on economic, trade and technical cooperation, and another on avoiding dual taxation.

King Abdullah of Saudi Arabia was the chief guest at the biggest parade in New Delhi, which opened with air force helicopters dropping flower petals on the crowd.

It concluded with a flypast by fighter jets and a parade representing the diverse cultures of Indian states.

The Houston Chronicle said Saudi Arabia and China closed a deal on energy cooperation China, Four other agreements were also signed by representatives from the two sides, including one on economic, trade and technical cooperation, and another on avoiding dual taxation. An agreement for an urban development loan to be given to the far western Chinese city of Aksu by the Saudi Arabian Development Bank and a pact to cooperate on vocational training were also signed. Total trade between the two countries much of it Saudi oil bought by China grew by 59 percent in the first 11 months of 2005 to $14 billion, according to China's Foreign Ministry.

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