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Canada as a Federal State

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CANADA AS A FEDERAL STATE Canada was the first federal union in the British Empire and it came into being on July 1, 1867, a date ever since observed as a public holiday. The union sprang from necessity : Upper and Lower Canada, united in one legislature but divided on racial lines, English and French, had reached deadlock in government. Nova Scotia and New Brunswick, far away by the sea, had no connection by rail with the rest of British North America. Prince Edward Island and Newfoundland were stagnant in isolation. Stretching across the prairie and across the mountains to the Pacific were other vast areas under the British crown. Side by side with them and reaching from ocean to ocean was the United States, the North flushed with recent victory in the civil war, and irritated with Great Britain because of incidents in the war. A new era was opening with the building of railways and the flow of population into the American West. With such a nation at their doors, union among the British provinces offered the sole hope of successful growth. Yet only four provinces entered the union at first ; Upper Canada, as Ontario, Lower Canada, as Quebec, and Nova Scotia and New Brunswick. Newfoundland still remains outside; and Prince Edward Island did not join until 1873.

The West had no part in the original negotiations, but such was the pressure of conditions that, by 1869, terms had been made with the Hudson's Bay Company (q.v.) to bring in its great territory of Rupert's Land, stretching westward to the Rocky mountains, and in 1871 British Columbia, the vast province on the Pacific, joined Canada. To complete Canada's ownership of the whole north of the continent, the British Government in 1878 conveyed to Canada all of British North America, except New foundland. The Yukon and other regions of the far north still, as territories, lie outside of the organized provinces.

The leader in these great movements was Mr. (Sir) John Alexander Macdonald (q.v.), who had remarkable political genius and was an astute manager of men. Born in Scotland, he had gone when still a boy to Canada with his family and, almost entirely self-educated, had practised law in the city of Kingston, Ontario. He had taken an active part in the politics of United Canada on the Conservative side and become leader. Canada East and Canada West were, however, still so divided that there was a separate leader for each division, and Macdonald had had as his French colleague a man of great energy, Mr. (Sir) Georges Etienne Cartier (q.v.). With the formation of the Do minion, this dualism ended and Macdonald was the single leader of his party. The union had been supported by the Liberals under George Brown and the first federal cabinet was a coalition, with Macdonald as Prime Minister. But party divisions were acute in Canada, Brown and other Liberals soon withdrew, and an election in 1868 confirmed the Conservatives in office. The election showed that while the two provinces of the older Canada had not been asked to pronounce upon the union, they approved of it. • Strong dissent came, however, from Nova Scotia. Assent to the union had been carried in its legislature by the strong leadership of the Prime Minister, Dr. (Sir) Charles Tupper (q.v.). He had been opposed by his rival Joseph Howe (q.v.), and when, in i868, the electors of Nova Scotia had their first opportunity to pronounce upon the project, Tupper alone was elected as a supporter and the other 18 members were pledged to its repeal. The legislature passed an almost unanimous ap peal to the Queen to aid withdrawal, and sent Howe to England to press it. There he could not secure official support and, in the end, after securing for the Province some financial concessions, he accepted the inevitable and took office under Macdonald. The sequel was that, in the election of 1872, only one member from Nova Scotia was elected to support repeal.

Relations with Great Britain.

A cardinal feature of Sir John Macdonald's opinions was devotion to the political tie with Great Britain. At the conference at Quebec, in 1864, when the terms of union had been formulated, the leaders agreed that the federation should be called "The Kingdom of Canada." This was an anticipation of the day when Canada should claim political equality with Great Britain. At the time there was friction with the United States and the foreign office had the rather fanciful fear that to set up a kingdom on the borders of the republic would cause offence. Under this pressure, Macdonald and his colleagues had to agree that Canada should be called not a king dom, but a dominion. A little later Macdonald's ardent imperial ism had to endure another rebuff. The American government claimed from Great Britain compensation for the losses caused to American shipping by the southern privateer Alabama, which had been fitted out in a British port. On the other hand, Canada claimed compensation from the United States for raids across the Canadian frontier by Fenians who, after the close of the war, had caused great expense and some loss of life in Canada. There was also a dispute about the boundary of British Columbia and the ownership of the island of San Juan. Canada also claimed compensation from the United States for fishing rights conceded to Americans. Macdonald was appointed a member of the Brit ish commission which met an American commission at Washing ton in Feb. 1871, and resulted in the treaty of Washington. He found that the Alabama question dwarfed all others in the minds of his fellow commissioners from England and that the claims of Canada secured slight consideration. The San Juan question was referred for arbitration to the German emperor, who decided in favour of the United States, and Canada secured no compensation for the Fenian raids. A fishery commission created by the treaty sat, however, at Halifax and awarded to Canada $5,500,000 for the excess value of its fisheries, over the value to Canada, of American fisheries for a period of 12 years. The Commission marked a new stage in imperial relations, since for the first time it included a Canadian leader in negotiations with a foreign government. Macdonald's prestige secured the support of the Canadian parliament, which ratified the treaty as it affected Canada, but an election was near and he feared the cry that he had sacrificed the interests of Canada.

The First Riel Rebellion.

The remarkable achievement of the rapid extension of Canada across the continent to the Pacific led to problems which dominated politics for the next 20 years. Rupert's Land had been owned and ruled by the Hudson's Bay company ever since the grant made by Charles II. ; but in 1869 the company was willing that Canada should take over the country on condition of paying a nominal price of 1300,000, of securing to the company . of the fertile lands as they were surveyed, and of the full ownership of about 45,000ac. about its posts. The problem of government remained. The great west ern section, which now forms the provinces of Saskatchewan and Alberta, had very few inhabitants except the native tribes and was destined to remain under federal tutelage for some 35 years still ; but in the eastern section, the present Manitoba (q.v.), were some io,000 settlers who desired local self-govern ment on the lines of the older provinces. There were two ele ments in the population. Fort Garry, the present Winnipeg, on the left bank of the Red river, was the centre of the English speaking population, chiefly Protestant and of Scottish descent, while St. Boniface on the right bank was the centre for the French-speaking and Roman Catholic element. During more than a century French fur traders had been in the country, they had intermarried with native women, and a race, known as Metis or half-breeds, had grown up which far outnumbered the English in the country.

The Government at Ottawa had not yet learned how to rule a new empire and took few precautions to soothe inevitable sus picion. The Metis wanted guarantees as to their French lan guage and their religion ; and above all secure titles to their farms. Few of the Metis had deeds, and when in the summer of 1869 agents from the East were entering the country and making sur veys, suspicion entered the minds of these remote and ignorant people that their rights would not be respected. A wise leader might have secured needed guarantees, but unfortunately there now came to the front one Louis Riel (q.v.), a little better educated than his fellows, but a man of violent passions and unbal anced judgment. While the English-speaking settlers held aloof, Riel seized Fort Garry and set up a provisional government with himself as president. Canada was to take over the region on Dec. 1, 1869, but when the new governor, Mr. William MacDougall, arrived at the frontier by way of the United States, he was not allowed to enter the country. The government at Ottawa then sent to Fort Garry Donald Alexander Smith (Lord Strathcona q.v.) . He was not familiar with the West, but he was prominent in the affairs of the Hudson's Bay company, and much was hoped from his Scottish prudence and tact. Riel, however, imprisoned him and other English-speaking leaders and seized the property of the company. His worst act was the summary trial and brutal execution of Thomas Scott, a young man from Ontario, who had used defiant words. Riel was undoubtedly partly insane, but he was in possession, and the only way to dislodge him was to send from the East a military expedition. It was placed under Col. Garnet (afterwards Lord) Wolseley. There was no railway from Canada to the West, a military force could not pass through the United States, and Wolseley had to take his men across hundreds of miles of wilderness from Lake Superior to Fort Garry. He reached the fort in Aug. 1870, to find that Riel had fled. In such stormy conditions it was that Manitoba came into being as a self governing province.

The Transcontinental Railway.

In Canada, as in the United States, a vast territory makes railways and tariffs the leading interest in politics. In 1872 Macdonald had to confront the realities of building a railway to the Pacific Ocean. Between Ottawa and Winnipeg were 60o miles of wilderness, with rivers and swamps to cross. Then came 1,000 miles of prairie and after that 500 miles of rugged mountains, across which as yet no suit able pass was known. How best to build it—by government or by a private company ? Canada decided for a private company. When the second federal election came in 1872, two groups of financial interests, one in Montreal and one in Toronto, were bidding for the contract which would carry with it heavy subsidies from the government. Sir George Etienne Cartier had lost sup port in Quebec because of the racial issue in Manitoba. French Canada is always peculiarly sensitive to any unfairness to the French. In Ontario there had been great outcry at Riel's execu tion of Scott, an Orangeman, and the legislature had offered a large reward for Riel's apprehension, while in Quebec it was held that the French settlers in Manitoba had had genuine griev ances, voiced by Riel, and that a general amnesty should be grant ed to those who took up arms. Macdonald feared this agita tion and Cartier was in fact defeated in Quebec because he was a member of the government which refused amnesty. Moreover, elections in the new vast Canada were costly and Macdonald needed money for election expenses. He won the election but he had to face an acute crisis when he met the new Parliament.

The charge was then made and proved that during the election Macdonald had received from Sir Hugh Allan (q.v.), the head of the Montreal company which wished to build the Pacific railway, some $300,000 for election expenses, and the inference was that a corrupt bargain had been made with Allan to build the railway. The charge created a sensation. Parliament appointed a commis sion to investigate and the Governor-General, Lord Dufferin (q.v.), took up so stern a position that he was prepared to adopt the dangerous course of dismissing the ministry. In Oct. 1873. when the commission's report acquitted Macdonald of personal corruption but established the receipt of the large sum for elec tion expenses, he resigned, and a Liberal ministry came into office with Mr. Alexander Mackenzie at its head. In the election which followed the new government was sustained by a large majority.

The Protectionist "National Policy..

The defeat of Mac donald left in the air the building of the line to the Pacific ; yet it was chiefly on this condition that British Columbia had entered the union. Mr. Mackenzie's government held that to complete the line within the agreed ten years was impossible. This caused in British Columbia angry charges of breach of faith and an agi tation for withdrawal from the federation. Mr. Mackenzie pleaded for patience, Lord Dufferin himself went to British Co lumbia, but even his buoyant tact, which had a tint of blarney, did not soothe the discontent. Meanwhile, the Liberal govern ment was proceeding with the railway as a government line.

It was the problem of tariffs which in the end solved the rail way issue and brought Macdonald back to power. Canada's position is made difficult by her having only one neighbour, the United States, with a population about 12 times as great and with highly developed industries. The Liberal government had to face a period of acute depression and annual deficits. There was an alarming exodus of population to the United States and, to give opportunity at home, Macdonald now became the spokes man of a policy of protection for Canadian industries—a National Policy as he named it. Mr. Mackenzie's government adhered to a tariff for revenue only. He tried, but failed, to make a bargain with the United States to open the American market to Canada's natural products, a revival of the reciprocity treaty which the United States had ended at the close of the civil war. The re sult was that, when an election came in 1878, Canada accepted by a large majority the national policy, Macdonald again became prime minister, and remained in office until his death in 1891.

The Canadian Pacific Railway.

In 1879, the new minister of finance, Sir Leonard Tilley, introduced and carried a bill to protect Canadian industries which has been only slightly modi fied since that time. The immediate result was disappointing. New industries sprang up but Canada had a small home market and almost no export market. Yet with unbounded courage the government faced the great task of linking the Pacific and the Atlantic by a railway. The Canadian Pacific railway company was formed with headquarters at Montreal. At its head was Mr. George Stephen (Lord Mountstephen q.v.), and its active mana ger was a man of boundless energy and resource, Sir William van Horne. The building of the line was pressed on, and on Nov. 7, 1885, at a little mountain station in British Columbia, Mr. D. A. Smith (Lord Strathcona) drove the last spike needed to link the East and the West by a railway. Twenty-five million ac. of land in the west and $25,000,000 formed the subsidy of Canada to the project, but, even with this support, there were times when it barely escaped bankruptcy. Its affairs were managed with fine insight and integrity and it has become one of the world's greatest organizations and much more than a railway. With its millions of acres of land, it has played a great part in colonizing the West and it has become, besides, a great shipping organization with a fleet of steamships on the great lakes, the Pacific, and the Atlantic, girdling the world.

The Second Riel Rebellion.

Experience quickly showed that the pushing of a railway into a region inhabited by native tribes and a few scattered settlers aroused suspicion. For the natives, the railway meant the ultimate disappearance of the herds of buffaloes on which they relied for food. In the valley of the Saskatchewan were many half-breed settlers, some of them refugees from Manitoba after the rebellion of 1869, and they now had fears for the security of the titles to their lands. Louis Riel was still alive, and these ignorant people begged him to come from his refuge in the United States to lead them in their difficul ties. As in 1869, the government at Ottawa failed to realize the gravity of the situation. There was danger of a rising of the Indian tribes. Blackfeet and Crees still waged war on each other and measured victory by the number of scalps taken, and they were demoralized and made reckless by the illicit sale of whisky. which caused brutal outrages. Speculators in land were flocking into the country and caused dismay to its people. The West was, in truth, a wild region, like that across the border in the United States. To preserve order, the federal government had created in 1873 a mobile force known as the North-west Mounted Police, which saved Canada from the lawlessness of the mining camps in the United States. But, none the less, a crisis came in 1885.

By this time, Riel's mind had become so unbalanced that he proclaimed himself the prophet of a new religion and, in the spring of 1885, he set up a provisional government on the Sas katchewan which denied the authority of Canada, and announced separation from the Roman Catholic Church. On March 24 half breeds attacked, near Prince Albert, a party of mounted police under Major Crozier and killed 14 of his men and wounded 25. Riel appealed to the Indian tribes to join him and drive out the whites, and there was danger of extensive massacres of scattered loyal settlers in the region.

Thus it happened that Canada had the task of suppressing a second rebellion. It was difficult, for the railway from Lake Superior to Winnipeg was not yet completed, and the troops had to march in bitter winter weather over the uncompleted sections of the line. The rebel force was led with skill by Gabriel Dumont, but when the Canadians, under an Imperial officer, General Mid dleton, reached the Saskatchewan, they carried the rebel en trenchments at Batoche. By May, Riel was a prisoner and, soon after, Dumont was a refugee in the United States. The rising had cost Canada about 200 lives. Riel was put on trial at Regina, the capital of the north-west territories, and there, late in 1885, he was hanged. Eight Indians were also hanged in the presence of many natives, and this ended their fantastic ambition to drive the whites from the West. The execution of Riel had far-reach ing consequences. In Quebec, the plea urged in 1870 was repeated that the rebels had real grievances and that, moreover, since Riel was really insane his execution was unwarranted and due to the animosity of the English towards the French. The Quebec Con servatives were divided by rivalries, and in a few years the Liberal Party became and remained . dominant in Quebec.

Sir Wilfrid Laurier.—After the retirement of Mr. Mac kenzie from the leadership, Mr. Edward Blake (q.v.) had been chief of the Liberal party. His defeat in the two elections of 1882 and 1887 led to his retirement and he was succeeded by Mr. (Sir) Wilfrid Laurier, who remained the Liberal chief for 32 years until his death in 1919. Like Macdonald, Laurier was a man of striking personality. His ancestors had lived for many generations in French Canada; his family was poor; and he had been reared in a French Canadian village with only the advan tages of a small college conducted by priests and a course in law at McGill university. Yet he had the courtly bearing of a grand seigneur, and his stately dignity never failed. He was called to a difficult position, for it seemed doubtful whether a French leader could unite both the English and the French elements in the Liberal party. It was not long, however, before it was clear that he had political tact and skill to rival that of Macdonald.

Laurier's first election came in 1891. The times were bad and the Liberals hoped for improvement in closer trade relations with the United States. Their policy called for unrestricted reciprocity in trade and this gave Macdonald the chance to urge that such a step would lead to political union. He was old, he realized that this was likely to be his last election, and he won it largely by the rallying cry for the link with Britain; "a British subject I was born; a British subject I will die." The effort wore him out and he died early in the summer of 1891. Sir John Abbott, a Montre al lawyer, succeeded him, and in 1892, Sir John Thompson, a Nova. Scotian, showed skill and capacity as prime minister. He died suddenly in 1894 and was followed, wholly on grounds of seniority, by an Ontario Orangeman, Sir Mackenzie Bowell. The party, floundering with divided counsels and no strong head, at last turned, in 1896, to Sir Charles Tupper. He had been absent from Canada as High Commissioner in London and he returned to lead a disorganized party corrupted, as all parties tend to be corrupted, by a long tenure of office.

Again the West brought a storm in Canadian politics. Mani toba had had sectarian schools but the Liberal government of 1890 held that this division weakened education, and it unified the schools in a non-sectarian system. From the first, the Roman Catholic element had feared a policy which should remove the teaching of their beliefs in schools supported by the state, and to protect them a provision had been included in the constitution of Manitoba that the federal government might override pro vincial action which should abolish such a right. Education in Canada was administered by the provinces. Laurier thought that an injustice had been done. No word of his, he said, should em bitter the struggle, but he pointed out that, while the federal government might by legislation direct the correction of the grievance, it had no power to intervene in the administration of education in Manitoba. To give orders which it had no means of enforcing would prove futile. Conciliation would do more than a merely legal demand. This he promised if placed in office, and meanwhile "Hands off Manitoba." Tupper was in a difficult position. Many of his supporters were Orangemen and he was yielding to insistent demands of Roman Catholic bishops to coerce an unwilling province. He in troduced what was called a Remedial Bill but the term of parlia ment expired before he could force it through, and in the election which followed he was defeated.

Thus it was that in 1896, after 18 years of Conservative rule, the Liberals came into power. Governments endure in Canada and Laurier remained prime minister for 15 years until 1911. It was one of the ironies of politics that Manitoba had voted for its own coercion, while Quebec, in which the people were sup posed to be amenable to episcopal direction, supported Laurier by a large majority. Some episcopal extremists sent an appeal to Rome urging the excommunication of the Catholic leader who had defied the bishops, and this policy was reported to be under serious consideration by the entourage of Pope Leo XIII. A personal envoy went unofficially from Laurier to put the case be fore the Pope, with the result that Cardinal Merry Del Val was sent to Canada and made a report which amounted to a rebuke to the bishops for undue interference in politics. The Liberal gov ernment of Manitoba made some concessions to a Liberal gov ernment in Ottawa, but the separate schools were not restored.

Imperial Preference.—The new government faced its tasks with energy. The problem of the tariff was urgent, for the Liberals had preached the doctrines of Free Trade. They had, however, to face the condition that many industries had grown up under Protection and that to open the door to the more high ly developed manufactures of the United States would involve disaster. The year 1897 was the both of the reign of Queen Vic toria, and Laurier met his difficulties with a brilliant stroke. Though he made but slight changes in the tariff, he used the oc casion of the jubilee to give to Great Britain a reduction of later increased to 33+% of the tariff. He visited England for the first time in that year and was a conspicuous figure in the celebrations. His policy of Preference proved enduring and remains in force.

The great need of Canada was to people the empty spaces of the West. In the cabinet was the very capable minister of the interior, Mr. Clifford Sifton, a former prime minister of Mani toba, who understood the problems of the West. Sif ton set on foot a movement which carried settlers to Canada on a scale so great, in relation to the total population of the country, that it had not been equalled even by the United States. He drew them from Great Britain, from continental Europe, and, to general surprise, in large numbers from the United States where free grants of land were no longer available.

The result was that, within ten years after the Liberal govern ment took office, the population of the prairie country had so increased that it was necessary to set up two new provinces, Saskatchewan and Alberta, with self-government on the lines of the other seven provinces. This was done in 1905, not without friction, for again the demand was made for the right to separate schools, supported by the state, in which should be taught the Roman Catholic faith. Minor compromise eased the friction and Regina and Edmonton, so recently little more than trading posts, soon had impressive parliament buildings as capitals respectively of Saskatchewan and Alberta. The political framework of Can ada from the Atlantic to the Pacific was thus completed.

French Canadian Nationalism.

The politics of Canada are always haunted by racial issues. When Canada was still a French colony a cleavage grew between the old and the new France which bred in the Canadians a sense of separation from Europe and endured under British rule. One result was an un willingness to share in any conflicts not directly affecting Canada. Though politically British, they did not share in the unity of sen timent which leads Britons in all parts of the world to stand by each other in time of danger. When the South African War broke out in 1899, outside of Quebec, public sentiment was so strong for aiding Great Britain that Canadian contingents were recruited and sent to South Africa, where they made a creditable record. They were paid, however, by Great Britain, not by Canada. Laurier's chief political strength was in Quebec and he realized the danger there to his prestige of this share in imperial wars. Following on this war came the rapid approach of conditions in Europe which were to result in the World War. Canada was not equipped for war. She had no fleet, and a considerable section of public opinion was demanding that she should take some share in the naval defence of the Empire. Laurier knew that in Quebec any move in this direction would arouse antagonism. Henri Bourassa (q.v.), grandson of Papineau, the rebel of 1837, be came the able and eloquent exponent of opposition to taking any share in imperial wars. Yet the pressure of other opinion was such that, in 1910, Laurier was forced to acquire two men-of-war as training ships, and in the next year to found a small naval college at Halifax and thus make the beginnings of a Canadian navy.

In 191I came an election which resulted in Laurier's defeat. In Quebec, his support had cooled, owing to Bourassa's attacks on his imperialism. What broke his power was, however, quite another question. Canada had long sought* reciprocity in trade with the United States and, early in 1911, an agreement was reached at Washington for a wide measure of free trade between the two countries. The farmers of the West welcomed the pro posal joyously ; it would give them wide markets and cheaper agri cultural implements. But the industries were naturally alarmed at any intrusion on a protected field; the railways feared di version of traffic from the long lines running east and west to shorter routes by way of the United States; and banking inter ests were alarmed lest closer relations should lead to the financial dominance of New York. These considerations were reinforced by the strong British sentiment in Canada, which resented the giving to the United States of advantages in trade superior to those of Great Britain. Laurier dissolved parliament with confi dence, but he was defeated and the Conservative leader Mr. (Sir) Robert Borden (q.v.) became in 1911 prime minister of Canada.

Relations with the United States.

During Laurier's term of office, relations with both Great Britain and the United States had become more clearly defined. In successive imperial confer ences he refused to accept for Canada any direct responsibility for other than Canadian affairs, a policy in which his opinions ran counter to those of the British colonial secretary, Mr. Cham berlain. Canada, Laurier always said, would do her duty in any emergency but he would not give pledges in advance. Canada was moving towards control of her own foreign affairs and there was a certain uneasiness at Britain's conduct of Canada's rela tions with the United States. The Conservative government of Sir John Thompson had secured by arbitration the rejection of a claim by the United States to jurisdiction over Bering Sea in order to protect American interests in the seal fisheries of the Pribyloff Islands. A more difficult case arose, however, in 1903 in connection with the boundary between Canada and Alaska. A decision favourable to the United States was reached by the vote of Lord Alverstone with three American commissioners against his two Canadian colleagues, though he had previously reached an agreement with them and signed a common verdict. Later revelations showed that his change of view had been de termined by a sharp menace from the American president, Mr. Roosevelt, that he would dictate a settlement if the commission should fail to agree.

A happier phase of relations with the United States came in 1911 in the establishment of an international joint commission with three commissioners named by the United States and three by Canada to continue in permanence and to which should be referred questions relating to the use of boundary waters. These include such difficult questions as the building of dams and the generation of electrical power on boundary rivers; and it was further provided that, by agreement of the two governments, the commission might exercise comprehensive powers in determining rights, obligations and interests in the relations of one country to the other or of their respective inhabitants. In its task of settling difficulties peaceably the treaty ranks with the important Rush-Bagot convention of 1818 which brought about ament on the Great Lakes and, indeed, on the whole boundary line.

The Naval Question.

The new Conservative government was confronted at once by the danger of war in Europe. In 1912 Sir Robert Borden visited England for a conference with the British authorities, who convinced him that, in view of Ger many's preparations, there was an emergency in naval affairs. In consequence, in Dec. 1912, the prime minister submitted to Parliament a proposal to build three warships at a cost not ex ceeding £7,000,000, to be placed at the disposal of the King for naval defence. The plan of a Canadian navy was not abandoned, but was postponed in view of urgency. The proposal was hotly debated. Even the mild naval policy of Sir Wilfrid Laurier had aroused the nationalist group in Quebec which scented imperial ism. The session of 1913 saw determined obstruction which led to the adoption of the closure in debate, already found necessary in England. The House of Commons, by 1o1 votes to 68, sup ported the naval bill which, however, failed to pass in the Liberal Senate. Thus on the eve of the World War Canada was giving almost no aid in naval defence.

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