Public Law 104-172
104th Congress
An Act
To impose sanctions on persons making certain investments directly and
significantly contributing to the enhancement of the ability of Iran or
Libya to develop its petroleum resources, and on persons exporting
certain items that enhance Libya's weapons or aviation capabilities or
enhance Libya's ability to develop its petroleum resources, and for
other purposes. <<NOTE: Aug. 5, 1996 - [H.R. 3107]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Iran and Libya Sanctions
Act of 1996. 50 USC 1701 note.>> assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Iran and Libya Sanctions Act of
1996''.
SEC. 2. <<NOTE: 50 USC 1701 note.>> FINDINGS.
The Congress makes the following findings:
(1) The efforts of the Government of Iran to acquire weapons
of mass destruction and the means to deliver them and its
support of acts of international terrorism endanger the national
security and foreign policy interests of the United States and
those countries with which the United States shares common
strategic and foreign policy objectives.
(2) The objective of preventing the proliferation of weapons
of mass destruction and acts of international terrorism through
existing multilateral and bilateral initiatives requires
additional efforts to deny Iran the financial means to sustain
its nuclear, chemical, biological, and missile weapons programs.
(3) The Government of Iran uses its diplomatic facilities
and quasi-governmental institutions outside of Iran to promote
acts of international terrorism and assist its nuclear,
chemical, biological, and missile weapons programs.
(4) The failure of the Government of Libya to comply with
Resolutions 731, 748, and 883 of the Security Council of the
United Nations, its support of international terrorism, and its
efforts to acquire weapons of mass destruction constitute a
threat to international peace and security that endangers the
national security and foreign policy interests of the United
States and those countries with which it shares common strategic
and foreign policy objectives.
SEC. 3. <<NOTE: 50 USC 1701 note.>> DECLARATION OF POLICY.
(a) Policy With Respect to Iran.--The Congress declares that it is
the policy of the United States to deny Iran the ability to support acts
of international terrorism and to fund the development and acquisition
of weapons of mass destruction and the means to deliver them by limiting
the development of Iran's ability to
[[Page 110 STAT. 1542]]
explore for, extract, refine, or transport by pipeline petroleum
resources of Iran.
(b) Policy With Respect to Libya.--The Congress further declares
that it is the policy of the United States to seek full compliance by
Libya with its obligations under Resolutions 731, 748, and 883 of the
Security Council of the United Nations, including ending all support for
acts of international terrorism and efforts to develop or acquire
weapons of mass destruction.
SEC. 4. <<NOTE: President. 50 USC 1701 note.>> MULTILATERAL REGIME.
(a) Multilateral Negotiations.--In order to further the objectives
of section 3, the Congress urges the President to commence immediately
diplomatic efforts, both in appropriate international fora such as the
United Nations, and bilaterally with allies of the United States, to
establish a multilateral sanctions regime against Iran, including
provisions limiting the development of petroleum resources, that will
inhibit Iran's efforts to carry out activities described in section 2.
(b) Reports to Congress.--The President shall report to the
appropriate congressional committees, not later than 1 year after the
date of the enactment of this Act, and periodically thereafter, on the
extent that diplomatic efforts described in subsection (a) have been
successful. Each report shall include--
(1) the countries that have agreed to undertake measures to
further the objectives of section 3 with respect to Iran, and a
description of those measures; and
(2) the countries that have not agreed to measures described
in paragraph (1), and, with respect to those countries, other
measures (in addition to that provided in subsection (d)) the
President recommends that the United States take to further the
objectives of section 3 with respect to Iran.
(c) Waiver.--The President may waive the application of section 5(a)
with respect to nationals of a country if--
(1) that country has agreed to undertake substantial
measures, including economic sanctions, that will inhibit Iran's
efforts to carry out activities described in section 2 and
information required by subsection (b)(1) has been included in a
report submitted under subsection (b); and
(2) the <<NOTE: Notification.>> President, at least 30 days
before the waiver takes effect, notifies the appropriate
congressional committees of his intention to exercise the
waiver.
(d) Enhanced Sanction.--
(1) Sanction.--With respect to nationals of countries except
those with respect to which the President has exercised the
waiver authority of subsection (c), at any time after the first
report is required to be submitted under subsection (b), section
5(a) shall be applied by substituting ``$20,000,000'' for
``$40,000,000'' each place it appears, and by substituting
``$5,000,000'' for ``$10,000,000''.
(2) Report to congress.--The President shall report to the
appropriate congressional committees any country with respect to
which paragraph (1) applies.
(e) Interim Report on Multilateral Sanctions; Monitoring.--The
President, not later than 90 days after the date of the enactment of
this Act, shall report to the appropriate congressional committees on--
[[Page 110 STAT. 1543]]
(1) whether the member states of the European Union, the
Republic of Korea, Australia, Israel, or Japan have legislative
or administrative standards providing for the imposition of
trade sanctions on persons or their affiliates doing business or
having investments in Iran or Libya;
(2) the extent and duration of each instance of the
application of such sanctions; and
(3) the disposition of any decision with respect to such
sanctions by the World Trade Organization or its predecessor
organization.
SEC. 5. <<NOTE: President. 50 USC 1701 note.>> IMPOSITION OF SANCTIONS.
(a) Sanctions With Respect to Iran.--Except as provided in
subsection (f), the President shall impose 2 or more of the sanctions
described in paragraphs (1) through (6) of section 6 if the President
determines that a person has, with actual knowledge, on or after the
date of the enactment of this Act, made an investment of $40,000,000 or
more (or any combination of investments of at least $10,000,000 each,
which in the aggregate equals or exceeds $40,000,000 in any 12-month
period), that directly and significantly contributed to the enhancement
of Iran's ability to develop petroleum resources of Iran.
(b) Mandatory Sanctions With Respect to Libya.--
(1) Violations of prohibited transactions.--Except as
provided in subsection (f), the President shall impose 2 or more
of the sanctions described in paragraphs (1) through (6) of
section 6 if the President determines that a person has, with
actual knowledge, on or after the date of the enactment of this
Act, exported, transferred, or otherwise provided to Libya any
goods, services, technology, or other items the provision of
which is prohibited under paragraph 4(b) or 5 of Resolution 748
of the Security Council of the United Nations, adopted March 31,
1992, or under paragraph 5 or 6 of Resolution 883 of the
Security Council of the United Nations, adopted November 11,
1993, if the provision of such items significantly and
materially--
(A) contributed to Libya's ability to acquire
chemical, biological, or nuclear weapons or
destabilizing numbers and types of advanced conventional
weapons or enhanced Libya's military or paramilitary
capabilities;
(B) contributed to Libya's ability to develop its
petroleum resources; or
(C) contributed to Libya's ability to maintain its
aviation capabilities.
(2) Investments that contribute to the development of
petroleum resources.--Except as provided in subsection (f), the
President shall impose 2 or more of the sanctions described in
paragraphs (1) through (6) of section 6 if the President
determines that a person has, with actual knowledge, on or after
the date of the enactment of this Act, made an investment of
$40,000,000 or more (or any combination of investments of at
least $10,000,000 each, which in the aggregate equals or exceeds
$40,000,000 in any 12-month period), that directly and
significantly contributed to the enhancement of Libya's ability
to develop its petroleum resources.
[[Page 110 STAT. 1544]]
(c) Persons Against Which the Sanctions Are To Be Imposed.--The
sanctions described in subsections (a) and (b) shall be imposed on--
(1) any person the President determines has carried out the
activities described in subsection (a) or (b); and
(2) any person the President determines--
(A) is a successor entity to the person referred to
in paragraph (1);
(B) is a parent or subsidiary of the person referred
to in paragraph (1) if that parent or subsidiary, with
actual knowledge, engaged in the activities referred to
in paragraph (1); or
(C) is an affiliate of the person referred to in
paragraph (1) if that affiliate, with actual knowledge,
engaged in the activities referred to in paragraph (1)
and if that affiliate is controlled in fact by the
person referred to in paragraph (1).
For purposes of this Act, any person or entity described in this
subsection shall be referred to as a ``sanctioned person''.
(d) Publication in Federal Register.--The President shall cause to
be published in the Federal Register a current list of persons and
entities on whom sanctions have been imposed under this Act. The removal
of persons or entities from, and the addition of persons and entities
to, the list, shall also be so published.
(e) Publication of Projects.--The President shall cause to be
published in the Federal Register a list of all significant projects
which have been publicly tendered in the oil and gas sector in Iran.
(f) Exceptions.--The President shall not be required to apply or
maintain the sanctions under subsection (a) or (b)--
(1) in the case of procurement of defense articles or
defense services--
(A) under existing contracts or subcontracts,
including the exercise of options for production
quantities to satisfy requirements essential to the
national security of the United States;
(B) if the President determines in writing that the
person to which the sanctions would otherwise be applied
is a sole source supplier of the defense articles or
services, that the defense articles or services are
essential, and that alternative sources are not readily
or reasonably available; or
(C) if the President determines in writing that such
articles or services are essential to the national
security under defense coproduction agreements;
(2) in the case of procurement, to eligible products, as
defined in section 308(4) of the Trade Agreements Act of 1979
(19 U.S.C. 2518(4)), of any foreign country or instrumentality
designated under section 301(b)(1) of that Act (19 U.S.C.
2511(b)(1));
(3) to products, technology, or services provided under
contracts entered into before the date on which the President
publishes in the Federal Register the name of the person on whom
the sanctions are to be imposed;
(4) to--
(A) spare parts which are essential to United States
products or production;
[[Page 110 STAT. 1545]]
(B) component parts, but not finished products,
essential to United States products or production; or
(C) routine servicing and maintenance of products,
to the extent that alternative sources are not readily
or reasonably available;
(6) to information and technology essential to United States
products or production; or
(7) to medicines, medical supplies, or other humanitarian
items.
SEC. 6. <<NOTE: 50 USC 1701 note.>> DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanctioned person under section 5
are as follows:
(1) Export-import bank assistance for exports to sanctioned
persons.--The President may direct the Export-Import Bank of the
United States not to give approval to the issuance of any
guarantee, insurance, extension of credit, or participation in
the extension of credit in connection with the export of any
goods or services to any sanctioned person.
(2) Export sanction.--The President may order the United
States Government not to issue any specific license and not to
grant any other specific permission or authority to export any
goods or technology to a sanctioned person under--
(i) the Export Administration Act of 1979;
(ii) the Arms Export Control Act;
(iii) the Atomic Energy Act of 1954; or
(iv) any other statute that requires the prior
review and approval of the United States Government as a
condition for the export or reexport of goods or
services.
(3) Loans from united states financial institutions.--The
United States Government may prohibit any United States
financial institution from making loans or providing credits to
any sanctioned person totaling more than $10,000,000 in any 12-
month period unless such person is engaged in activities to
relieve human suffering and the loans or credits are provided
for such activities.
(4) Prohibitions on financial institutions.--The following
prohibitions may be imposed against a sanctioned person that is
a financial institution:
(A) Prohibition on designation as primary dealer.--
Neither the Board of Governors of the Federal Reserve
System nor the Federal Reserve Bank of New York may
designate, or permit the continuation of any prior
designation of, such financial institution as a primary
dealer in United States Government debt instruments.
(B) Prohibition on service as a repository of
government funds.--Such financial institution may not
serve as agent of the United States Government or serve
as repository for United States Government funds.
The imposition of either sanction under subparagraph (A) or (B)
shall be treated as 1 sanction for purposes of section 5, and
the imposition of both such sanctions shall be treated as 2
sanctions for purposes of section 5.
(5) Procurement sanction.--The United States Government may
not procure, or enter into any contract for the procurement of,
any goods or services from a sanctioned person.
[[Page 110 STAT. 1546]]
(6) Additional sanctions.--The President may impose
sanctions, as appropriate, to restrict imports with respect to a
sanctioned person, in accordance with the International
Emergency Economic Powers Act (50 U.S.C. 1701 and following).
SEC. 7. <<NOTE: 50 USC 1701 note.>> ADVISORY OPINIONS.
The Secretary of State may, upon the request of any person, issue an
advisory opinion to that person as to whether a proposed activity by
that person would subject that person to sanctions under this Act. Any
person who relies in good faith on such an advisory opinion which states
that the proposed activity would not subject a person to such sanctions,
and any person who thereafter engages in such activity, will not be made
subject to such sanctions on account of such activity.
SEC. 8. <<NOTE: 50 USC 1701 note.>> TERMINATION OF SANCTIONS.
(a) Iran.--The requirement under section 5(a) to impose sanctions
shall no longer have force or effect with respect to Iran if the
President determines and certifies to the appropriate congressional
committees that Iran--
(1) has ceased its efforts to design, develop, manufacture,
or acquire--
(A) a nuclear explosive device or related materials
and technology;
(B) chemical and biological weapons; and
(C) ballistic missiles and ballistic missile launch
technology; and
(2) has been removed from the list of countries the
governments of which have been determined, for purposes of
section 6(j) of the Export Administration Act of 1979, to have
repeatedly provided support for acts of international terrorism.
(b) Libya.--The requirement under section 5(b) to impose sanctions
shall no longer have force or effect with respect to Libya if the
President determines and certifies to the appropriate congressional
committees that Libya has fulfilled the requirements of United Nations
Security Council Resolution 731, adopted January 21, 1992, United
Nations Security Council Resolution 748, adopted March 31, 1992, and
United Nations Security Council Resolution 883, adopted November 11,
1993.
SEC. 9. <<NOTE: 50 USC 1701 note.>> DURATION OF SANCTIONS; PRESIDENTIAL
WAIVER.
(a) Delay of Sanctions.--
(1) Consultations.--If the President makes a determination
described in section 5(a) or 5(b) with respect to a foreign
person, the Congress urges the President to initiate
consultations immediately with the government with primary
jurisdiction over that foreign person with respect to the
imposition of sanctions under this Act.
(2) Actions by government of jurisdiction.--In order to
pursue consultations under paragraph (1) with the government
concerned, the President may delay imposition of sanctions under
this Act for up to 90 days. Following such consultations, the
President shall immediately impose sanctions unless the
President determines and certifies to the Congress that the
government has taken specific and effective actions, including,
as appropriate, the imposition of appropriate penalties, to
terminate the involvement of the foreign person in the activi
[[Page 110 STAT. 1547]]
ties that resulted in the determination by the President under
section 5(a) or 5(b) concerning such person.
(3) Additional delay in imposition of sanctions.--The
President may delay the imposition of sanctions for up to an
additional 90 days if the President determines and certifies to
the Congress that the government with primary jurisdiction over
the person concerned is in the process of taking the actions
described in paragraph (2).
(4) Report to congress.--Not later than 90 days after making
a determination under section 5(a) or 5(b), the President shall
submit to the appropriate congressional committees a report on
the status of consultations with the appropriate foreign
government under this subsection, and the basis for any
determination under paragraph (3).
(b) Duration of Sanctions.--A sanction imposed under section 5 shall
remain in effect--
(1) for a period of not less than 2 years from the date on
which it is imposed; or
(2) until such time as the President determines and
certifies to the Congress that the person whose activities were
the basis for imposing the sanction is no longer engaging in
such activities and that the President has received reliable
assurances that such person will not knowingly engage in such
activities in the future, except that such sanction shall remain
in effect for a period of at least 1 year.
(c) Presidential Waiver.--
(1) Authority.--The <<NOTE: Reports.>> President may waive
the requirement in section 5 to impose a sanction or sanctions
on a person described in section 5(c), and may waive the
continued imposition of a sanction or sanctions under subsection
(b) of this section, 30 days or more after the President
determines and so reports to the appropriate congressional
committees that it is important to the national interest of the
United States to exercise such waiver authority.
(2) Contents of report.--Any report under paragraph (1)
shall provide a specific and detailed rationale for the
determination under paragraph (1), including--
(A) a description of the conduct that resulted in
the determination under section 5(a) or (b), as the case
may be;
(B) in the case of a foreign person, an explanation
of the efforts to secure the cooperation of the
government with primary jurisdiction over the sanctioned
person to terminate or, as appropriate, penalize the
activities that resulted in the determination under
section 5(a) or (b), as the case may be;
(C) an estimate as to the significance--
(i) of the provision of the items described in
section 5(a) to Iran's ability to develop its
petroleum resources, or
(ii) of the provision of the items described
in section 5(b)(1) to the abilities of Libya
described in subparagraph (A), (B), or (C) of
section 5(b)(1), or of the investment described in
section 5(b)(2) on Libya's ability to develop its
petroleum resources,
as the case may be; and
[[Page 110 STAT. 1548]]
(D) a statement as to the response of the United
States in the event that the person concerned engages in
other activities that would be subject to section 5(a)
or (b).
(3) Effect of report on waiver.--If the President makes a
report under paragraph (1) with respect to a waiver of sanctions
on a person described in section 5(c), sanctions need not be
imposed under section 5(a) or (b) on that person during the 30-
day period referred to in paragraph (1).
SEC. 10. <<NOTE: President. 50 USC 1701 note.>> REPORTS REQUIRED.
(a) Report on Certain International Initiatives.--Not later than 6
months after the date of the enactment of this Act, and every 6 months
thereafter, the President shall transmit a report to the appropriate
congressional committees describing--
(1) the efforts of the President to mount a multilateral
campaign to persuade all countries to pressure Iran to cease its
nuclear, chemical, biological, and missile weapons programs and
its support of acts of international terrorism;
(2) the efforts of the President to persuade other
governments to ask Iran to reduce the presence of Iranian
diplomats and representatives of other government and military
or quasi-governmental institutions of Iran and to withdraw any
such diplomats or representatives who participated in the
takeover of the United States embassy in Tehran on November 4,
1979, or the subsequent holding of United States hostages for
444 days;
(3) the extent to which the International Atomic Energy
Agency has established regular inspections of all nuclear
facilities in Iran, including those presently under
construction; and
(4) Iran's use of Iranian diplomats and representatives of
other government and military or quasi-governmental institutions
of Iran to promote acts of international terrorism or to develop
or sustain Iran's nuclear, chemical, biological, and missile
weapons programs.
(b) Other Reports.--The President shall ensure the continued
transmittal to the Congress of reports describing--
(1) the nuclear and other military capabilities of Iran, as
required by section 601(a) of the Nuclear Non-Proliferation Act
of 1978 and section 1607 of the National Defense Authorization
Act for Fiscal Year 1993; and
(2) the support provided by Iran for acts of international
terrorism, as part of the Department of State's annual report on
international terrorism.
SEC. 11. <<NOTE: 50 USC 1701 note.>> DETERMINATIONS NOT REVIEWABLE.
A determination to impose sanctions under this Act shall not be
reviewable in any court.
SEC. 12. <<NOTE: 50 USC 1701 note.>> EXCLUSION OF CERTAIN ACTIVITIES.
Nothing in this Act shall apply to any activities subject to the
reporting requirements of title V of the National Security Act of 1947.
SEC. 13. <<NOTE: 50 USC 1701 note.>> EFFECTIVE DATE; SUNSET.
(a) Effective Date.--This Act shall take effect on the date of the
enactment of this Act.
(b) Sunset.--This Act shall cease to be effective on the date that
is 5 years after the date of the enactment of this Act.
[[Page 110 STAT. 1549]]
SEC. 14. <<NOTE: 50 USC 1701 note.>> DEFINITIONS.
As used in this Act:
(1) Act of international terrorism.--The term ``act of
international terrorism'' means an act--
(A) which is violent or dangerous to human life and
that is a violation of the criminal laws of the United
States or of any State or that would be a criminal
violation if committed within the jurisdiction of the
United States or any State; and
(B) which appears to be intended--
(i) to intimidate or coerce a civilian
population;
(ii) to influence the policy of a government
by intimidation or coercion; or
(iii) to affect the conduct of a government by
assassination or kidnapping.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee on
Finance, the Committee on Banking, Housing, and Urban Affairs,
and the Committee on Foreign Relations of the Senate and the
Committee on Ways and Means, the Committee on Banking and
Financial Services, and the Committee on International Relations
of the House of Representatives.
(3) Component part.--The term ``component part'' has the
meaning given that term in section 11A(e)(1) of the Export
Administration Act of 1979 (50 U.S.C. App. 2410a(e)(1)).
(4) Develop and development.--To ``develop'', or the
``development'' of, petroleum resources means the exploration
for, or the extraction, refining, or transportation by pipeline
of, petroleum resources.
(5) Financial institution.--The term ``financial
institution'' includes--
(A) a depository institution (as defined in section
3(c)(1) of the Federal Deposit Insurance Act), including
a branch or agency of a foreign bank (as defined in
section 1(b)(7) of the International Banking Act of
1978);
(B) a credit union;
(C) a securities firm, including a broker or dealer;
(D) an insurance company, including an agency or
underwriter; and
(E) any other company that provides financial
services.
(6) Finished product.--The term ``finished product'' has the
meaning given that term in section 11A(e)(2) of the Export
Administration Act of 1979 (50 U.S.C. App. 2410a(e)(2)).
(7) Foreign person.--The term ``foreign person'' means--
(A) an individual who is not a United States person
or an alien lawfully admitted for permanent residence
into the United States; or
(B) a corporation, partnership, or other
nongovernmental entity which is not a United States
person.
(8) Goods and technology.--The terms ``goods'' and
``technology'' have the meanings given those terms in section 16
of the Export Administration Act of 1979 (50 U.S.C. App. 2415).
(9) Investment.--The term ``investment'' means any of the
following activities if such activity is undertaken pursuant to
an agreement, or pursuant to the exercise of rights under such
an agreement, that is entered into with the Government of Iran
or a nongovenmental entity in Iran, or with the Govern
[[Page 110 STAT. 1550]]
ment of Libya or a nongovernmental entity in Libya, on or after
the date of the enactment of this Act:
(A) The entry into a contract that includes
responsibility for the development of petroleum
resources located in Iran or Libya (as the case may be),
or the entry into a contract providing for the general
supervision and guarantee of another person's
performance of such a contract.
(B) The purchase of a share of ownership, including
an equity interest, in that development.
(C) The entry into a contract providing for the
participation in royalties, earnings, or profits in that
development, without regard to the form of the
participation.
The term ``investment'' does not include the entry into,
performance, or financing of a contract to sell or purchase
goods, services, or technology.
(10) Iran.--The term ``Iran'' includes any agency or
instrumentality of Iran.
(11) Iranian diplomats and representatives of other
government and military or quasi-governmental institutions of
iran.--The term ``Iranian diplomats and representatives of other
government and military or quasi-governmental institutions of
Iran'' includes employees, representatives, or affiliates of
Iran's--
(A) Foreign Ministry;
(B) Ministry of Intelligence and Security;
(C) Revolutionary Guard Corps;
(D) Crusade for Reconstruction;
(E) Qods (Jerusalem) Forces;
(F) Interior Ministry;
(G) Foundation for the Oppressed and Disabled;
(H) Prophet's Foundation;
(I) June 5th Foundation;
(J) Martyr's Foundation;
(K) Islamic Propagation Organization; and
(L) Ministry of Islamic Guidance.
(12) Libya.--The term ``Libya'' includes any agency or
instrumentality of Libya.
(13) Nuclear explosive device.--The term ``nuclear explosive
device'' means any device, whether assembled or disassembled,
that is designed to produce an instantaneous release of an
amount of nuclear energy from special nuclear material (as
defined in section 11(aa) of the Atomic Energy Act of 1954) that
is greater than the amount of energy that would be released from
the detonation of one pound of trinitrotoluene (TNT).
(14) Person.--The term ``person'' means--
(A) a natural person;
(B) a corporation, business association,
partnership, society, trust, any other nongovernmental
entity, organization, or group, and any governmental
entity operating as a business enterprise; and
(C) any successor to any entity described in
subparagraph (B).
(15) Petroleum resources.--The term ``petroleum resources''
includes petroleum and natural gas resources.
[[Page 110 STAT. 1551]]
(16) United states or state.--The term ``United States'' or
``State'' means the several States, the District of Columbia,
the Commonwealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, American Samoa, Guam, the United
States Virgin Islands, and any other territory or possession of
the United States.
(17) United states person.--The term ``United States
person'' means--
(A) a natural person who is a citizen of the United
States or who owes permanent allegiance to the United
States; and
(B) a corporation or other legal entity which is
organized under the laws of the United States, any State
or territory thereof, or the District of Columbia, if
natural persons described in subparagraph (A) own,
directly or indirectly, more than 50 percent of the
outstanding capital stock or other beneficial interest
in such legal entity.
Approved August 5, 1996.
LEGISLATIVE HISTORY--H.R. 3107 (S. 1228):
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