[Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
[March 21, 2005]
[Pages 492-500]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks in a Discussion on Strengthening Social Security in Denver, 
Colorado
March 21, 2005

    The President. Thanks for coming. Thanks for the warm welcome. 
Thanks for greeting me and Senator McCain. He's 
up here to claim some water, he said. [Laughter]
    Audience members. Oo-o-oh!
    The President. Never mind. Just an inside joke that didn't work. 
[Laughter] But we appreciate you coming today. We're going to have a 
serious dialog on Social Security. It's an issue that requires a lot of 
dialog and a lot of discussion. And so I want to thank our panelists for 
joining us. I want to thank you all for your interest in this subject.
    Before I begin, I do want to thank Governor Bill Owens and Frances for joining us 
today. Good to see you all. Congressman Bob Beauprez is with us. Good to see you, Congressman. Thank you, sir. 
Congressman Joel Hefley from down the road is 
with us. Lieutenant Governor Jane Norton is 
with us. Thanks for coming. The attorney general of the great State of 
Colorado is with us; thanks for coming, General Suthers. Mark Hillman is with us; Joe 
Stengel is with us; a lot of people are with us. 
We appreciate you being here.
    I hope you've been as impressed by the spread of freedom as I've 
been. We believe in America that freedom is not America's gift to the 
world, but it's the Almighty's gift to every person in the world. That's 
what we believe. And we shouldn't be surprised. I know some of us were 
surprised, but we shouldn't be surprised when people are willing to take 
risk for freedom. If you believe that freedom is etched in every 
person's soul, then you understand why, in Afghanistan, for example, 
millions of people, after having been freed from the Taliban, were 
willing to go to the polls, were willing to say, ``We're free, and we 
want to exercise our right.''
    The same thing happened in Ukraine. The same thing happened in the 
Palestinian Territories when they voted for President Abbas. I believe he's committed to democracy. 
I believe the march of freedom will extend to the Palestinian 
Territories so that our friend Israel will have a partner in peace, a 
true democracy in the Palestinian country.
    John recently went to Iraq. He was telling 
me what amazing place Iraq now is. How many times you been there? Two or 
three times--twice. Things have changed, and things changed not because, 
necessarily, our decisions; things changed because of courageous Iraqis 
that were willing to go to the polls in the face of incredible threat, 
but they wouldn't be denied because people do want to be free.
    And it's important for the youngsters here to understand that the 
march of freedom will yield peace, the peace we want. Free societies are 
peaceful societies; free societies are hopeful societies; free societies 
are the best way to defeat the dark vision of the terrorists. And so for 
the next 4 years, I look forward to working with

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friends and allies to continue the march of freedom for the sake of 
peace.
    I appreciate the fact that the unemployment rate here in Colorado is 
4.9 percent. The environment--entrepreneurial environment here is 
strong, and that is good. We've got to keep policies in place to make 
sure our economy grows. I am concerned, I know you're concerned, about 
the price of gasoline. You're beginning to see the fact that we haven't 
had an energy policy in the United States at the pump. I know we need to 
encourage conservation. I know we need to find alternative sources of 
energy. I hope someday we can use biodiesel to make us less dependent on 
foreign sources of energy. I know we need to use our technological 
capacities not only to protect the environment but to make us less 
dependent on foreign sources of energy. I know we need to modernize our 
electricity grid.
    In other words, Congress needs to stop debating the energy bill. I 
know what we don't need--with the price of energy the way it is, I know 
we don't need tax breaks for oil companies. What we need is an energy 
plan in order to make sure this economy continues to grow. Congress 
needs to pass the bill.
    But today we're going to talk about Social Security. It's an issue 
that some are saying, ``Why would you want to talk about Social 
Security? It's a tough political issue.'' I believe, John believes, people here believe that now is the time to 
confront a problem, not to pass it on to future Presidents and future 
Congresses. I mean, if you see a problem, I believe it is incumbent upon 
a leader to confront that problem.
    And let me tell you what I think the problem is. The problem is 
Social Security has changed since the day that Franklin Roosevelt first 
thought of it. It has changed because a lot of baby boomers like me are 
getting ready to retire, and we're living longer, and we've been 
promised more benefits, but fewer people are paying into the system. 
We're having less kids.
    In 1950, 16 workers were paying for every beneficiary. Today, 3.3 
workers are paying for every beneficiary. When younger people start 
getting ready to retire, it's going to be two workers paying for every 
beneficiary--fewer people paying for more baby boomers like me, who are 
living longer and have been promised greater benefits. What's changed is 
the math. What hasn't changed is the importance of having a good 
retirement system.
    Franklin Roosevelt ought to be applauded for putting a safety net in 
place for our seniors. This President and the Congress--many in the 
Congress understand that safety net has got a hole in it. And we're here 
to talk about how to mend the hole. You see, when you see a problem, I 
think it's necessary to confront the problem. Because there's fewer 
workers paying into the system, the Social Security system will go into 
the red in 2018. That means more money will be going out than coming in.
    Now, you probably think--some of you may think there's what they 
call a Social Security trust: The Government collects the money for you; 
we hold it for you; and when you retire, we pay it to you. But that's 
not how it works. You pay your payroll tax; we pay for the people who 
have retired; and if there's any money left over, we spend it on 
Government. That's how it works. And what's left is an empty IOU, a 
piece of paper. Because it's a pay-as-you-go system, when more retirees 
start retiring, who are living longer, getting paid more, more money 
starts going out than coming in. In 2027, that deficit will be $200 
billion, and growing greater every year. From 2018 to 2042, the deficits 
increase every year, the amount of money going out relative to the money 
coming in. And that's the problem.
    We're fine. I'm going to say it once; I'm going to say it as many 
times as I can: Seniors here in this audience and listening

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on TV must understand, nothing changes; you're going to get your check. 
When you hear us talking about Social Security, you must understand that 
nothing will change for you. For those of us born prior to 1950, the 
system will not change. The fundamental question is, how--what are we 
going to do about the next generation coming up? Are we going to saddle 
them with a huge deficit in Social Security?
    Now, that's why I went to the Congress during the State of the Union 
and said, ``We've got a problem.'' I spent a lot of time describing the 
problem, but I also said I'm willing to listen to any solution. I'm 
willing to say, ``You've got an idea, bring it forward.'' As a matter of 
fact, I think I might have been the best President--first President ever 
to say, ``Here are some ideas for you.'' First President--[laughter]--
no, no, no, forget the ``best'' part. [Laughter] First President. Forget 
it. Just because you've got a cowboy hat doesn't mean you can stand up 
and yell. [Laughter] Thank you.
    I said, ``Put all ideas on the table.'' It doesn't matter if it's a 
Democrat idea, Republican idea. I'm interested in solving the problem, 
and I'm interested in solving it permanently. We don't need a temporary 
fix.
    Earlier today in Arizona we were talking about the fact that in 
1983, President Reagan and Tip O'Neill and Bob Dole and others stood up and said, ``There is a problem. Let's 
come together.'' And the spirit was an important spirit. But they said 
it was a 75-year fix at the time. And because the math has changed--baby 
boomers like me getting ready to retire, living longer, getting bigger 
benefits--because that changed, we're now talking about the issue 22 
years later. It wasn't 75 years; it's essentially less than 75 years.
    So you may hear some of them say, ``Well, we've got a 75-year fix 
for you.'' In my judgment, that's not good enough. Now is the time to 
come together to fix this problem for generations to come, permanently.
    I've got an idea that I think ought to be considered. You've heard a 
lot about it. It's called personal savings accounts. It wasn't my idea. 
As a matter of fact, this is an idea that's a part of 401(k)s, for 
example. You get to set aside some of your own money; you manage it in a 
conservative mix of bonds and stocks. It wasn't my idea. As a matter of 
fact, the Federal Government thought of this a long time before I did, 
and that is Federal workers ought to be allowed to take some of their 
own money and set it aside in a Federal Thrift Savings Plan where you 
can invest it in a series of bonds and stocks.
    And the reason why people thought that was a good idea is because 
they understand that you can get a better rate of return on a 
conservative mix of bonds and stocks than you can if your money is held 
by the Federal Government. And that rate of return is important for the 
individual worker, because over time, that grows. It grows; it 
compounds. It's called the compounding effect of interest.
    Now, let me give you an example. If you were to allow a worker that 
made $35,000 over his or her lifetime to take a third of their payroll 
taxes and put it in a personal savings account and invest it in a 
conservative mix of bonds and stocks, by the time that person retired, 
that money would have grown to be a quarter of a million dollars. In 
other words, that's how interest grows. That's how money compounds over 
time.
    Now, when it comes time to fixing the Social Security system, you 
got to understand the Government can't keep the promises it made to 
young workers. And so one way to allow young workers to get a better 
deal from a permanent fix in the Social Security system is to let them 
take some of their own money and watch their own money grow, to be a 
part of a retirement system. In other words, you're going to get a check 
from the Social Security system.

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They can't tell you how much yet. But you know you can get a check plus 
your own asset base if you allow people to have a personal savings 
account.
    Secondly, I think it's important for a society to encourage 
ownership. I love the idea that more people are owning a home than ever 
before in our society today. I like it when I hear somebody say, ``I own 
my own business.'' The entrepreneurial spirit is strong in Colorado. We 
got more people owning their own business. I think it makes sense to 
encourage people to manage their own asset base through the Social 
Security account. I like the idea of people opening up their quarterly 
statement and saying, ``Well, here's how--here's my--here's what my 
worth is.'' Watching something grow--certainly make people more 
interested in the fiscal decisions of the Federal Government when they 
watch their own assets.
    I like the idea of saying that you can have your own asset and you 
can pass it on to whomever you want. I don't think the system is fair 
for a couple who are working all their lives, and the husband dies 
early, and the wife has got either survivor benefits or her own Social 
Security benefits, whichever is higher, but not both. Think about that 
kind of system. Both of them work their life--we met a woman today whose 
husband died at 55. He had worked 30 years of his life, put money in the 
Social Security system. Upon his death, she got no benefits because she 
wasn't 62. They did pay $255 of burial benefits. He worked all his life; 
the wife gets $255 out of it. She retires at 62, gets a bigger check 
than the survivor benefits. And so the husband's contributions in the 
Social Security have just gone away.
    That's not a fair system. A fair system said that this younger 
worker, at the time when he was younger, should be allowed, upon his 
choice--this is a voluntary program, by the way; the Government is not 
making you set aside money; you can do it if you want--should be allowed 
to set aside some of his money, in this case. It grows. Upon death, the 
money goes to the wife. That's fair. It's an asset.
    A couple of points I want to make, and then we're going to turn to 
the panel. Laura told me, ``Don't talk too 
much.'' [Laughter] She's obviously failed. By the way, she's doing 
great. She's a fabulous woman.
    People say, ``What are these--what does this mean, investing?'' 
Well, you can't put it in the lottery. In other words, there's a 
prescribed investment portfolio, just like the Federal employees do. 
There's a conservative mix that will get you a better rate of return 
than what your money is getting at the--in the Federal Government.
    Secondly, when you retire, you can't pull all your money out. In 
other words, it's there to help you retire. The capital stays in place, 
and you live off the interest plus whatever the Social Security system 
can afford.
    But thirdly, you can leave it to whomever you want, and your heir 
can liquidate your personal account. That would help the widow, for 
example, or a child getting ready to go to college, if the mom or dad 
dies. In other words, this is a way to not only encourage ownership, but 
it's a way to encourage asset formation for the families of America. We 
want more people--more people from all walks of life being able to say, 
``This is my asset, and I choose to leave it to my son or daughter.''
    Lee Abdnor is with us. Every panel has got 
to have an expert. In this case, we've got a lot of experts--except for 
me and McCain--[laughter]--the best Senator. 
[Laughter] Lee, tell us what you do.
    Leanne Abdnor. Thank you, Mr. President. 
My name is Lee Abdnor, as you said, and I'm from Boulder, Colorado.
    The President. I know some people from Boulder.

[At this point, Mrs. Abdnor, former member, President's Commission to 
Strengthen Social Security, made brief remarks.]

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    The President. One of the interesting things, Lee--I thought it was interesting to watch this 
Commission work. Unlike some parts of Washington, this Commission 
actually said, ``We're not here to promote a political party; we're here 
to help solve a major problem.'' And it's that spirit--Senator Moynihan 
did a fabulous job, by the way, of leading this Commission--God rest his 
soul. But he said, ``Look, we're not here to promote any individual 
person or candidate or party; we're here to do our duty as Americans.'' 
It is the spirit of this Commission--in other words, people can sit at 
the table saying, ``I want to hear your idea; bring forth your idea. 
Every idea ought to be considered.'' It's that spirit that now needs to 
take hold in Congress. The American people don't want to see partisan 
bickering on this issue. They want to see people come together and solve 
it once and for all. And I want to thank you, Lee, for being here.
    Somebody who understands that--somebody who understands the spirit 
of working together is John McCain, the Senator 
from Arizona. Thanks for coming, Senator.
    Senator John McCain. Thank you, Mr. 
President. Thank you all for coming today. It's a pleasure to be here to 
visit our water. And I thank you for the opportunity. [Laughter] 
Remember, we have so little water in Arizona, the trees chase the dogs, 
so please send as much as you can. [Laughter] I'm very happy to be with 
all of you today. Let me just if I could----
    The President. Trying to get back?
    Senator McCain. Pretty good, huh? Not bad.
    The President. It's the tree and the dog thing that got us. We're 
trying--[laughter].
    Senator McCain. I have more. [Laughter]

[Senator McCain made further remarks.]

    The President. Good job, John. Thanks.
    Ready, Norm? All right. Norm Mossoni--
glad you're here, Norm. Where do you live?
    Norman Mossoni. I live in Louisville, 
Colorado. I was born in--I was born and raised there, and I'm still 
there.
    The President. Really? You were born in Louisville how many years 
ago, if I might ask?
    Mr. Mossoni. Well, not many, back in 
1919, somewhere.
    The President. Nineteen hundred and nineteen--that's a long time 
ago. [Laughter] Do you get a Social Security check? You qualify. 
[Laughter]
    Mr. Mossoni. Absolutely. And actually, 
Mr. President, it is a kind of a significant part of my retirement 
program, along with the other things that I was fortunate enough to be 
aware of and prepare for, so that it is not a full pension; it's a 
cushion. You've got to have something else.
    The President. Right. But you're counting on it?
    Mr. Mossoni. Absolutely.
    The President. There's a lot of people like Norm counting on their 
check. And I understand that; and John 
understands that; Members of Congress understand that. Social Security 
is important for a lot of people, and as this debate goes on, I want the 
people who depend upon Social Security to understand, you're going to 
get your check. Is that--I hope you understand that, Norm.
    Mr. Mossoni. Oh, I absolutely understand 
it. [Laughter]
    The President. Because if you didn't understand it, then I'm not 
making myself clear. [Laughter] And I'm going to keep making myself 
clear until people--the seniors of this country can relax about this 
debate.
    Keep going. You're on a roll. [Laughter]

[Mr. Mossoni made further remarks.]

    The President. He's concerned about his grandchildren enough that he 
invited his granddaughter, Joleen. This is a 
generational issue, folks. The generation of Norm and my generation, you won't have anything to worry 
about. But there's a lot

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of grandparents who, once they understand that, start saying to the 
Congress and the President, ``How are you going to protect my 
granddaughter? What are you going to do about my children? What are you 
going to do about my grandchildren?'' And that's what this issue--this 
is a generational issue. This is an issue that recognizes the importance 
of--this generation understands the importance of Social Security. But 
we also understand we better do something about it for the generation 
coming up.
    Joleen, thanks for coming. Twenty-one 
years old, sitting right here with the President and the 
Senator, right on the stage.
    Joleen Mossoni. Thank you, sir.
    The President. You are a student, where?
    Ms. Mossoni. I'm a student at the University of Colorado, a junior 
studying political science.
    The President. Good. Yes, well, this is a little political science 
exercise right now. This is called taking the message to the people--
[laughter]--because I believe the people will influence the outcome of 
this debate.
    Here's your chance to influence the outcome of the debate.

[Ms. Mossoni made further remarks.]

    The President. Right. Well-spoken. Somebody told me about a survey 
once that said 20-year-old Americans believe they're more likely to see 
a UFO than get a check. [Laughter] It's an interesting dynamic, isn't 
it? [Laughter] Think about the political dynamic there. Once seniors 
realize nothing is going to change for them, 20-, 30-, 40-year-old 
Americans are going to have a enormous say in this debate. You need to 
say loud and clear, ``We got a problem. Are you--do you have the 
political will to fix it for me?''
    And I appreciate the idea. I tell you another interesting thing. I 
know when McCain and I were coming up, we 
weren't talking about personal accounts or investing our own money. But 
there is an interesting culture in America. There's a 401(k) culture. 
There's a group people who are now used to managing their own money. 
There's a lot of personal involvement in the marketplace from people of 
all walks in life.
    We're not trying to invent something new. We're trying to take what 
has become a reality and extend it to a Government program. Seems like 
to me that 401(k)s are working. A lot of people like them. A lot of 
people are comfortable with them. Why don't we take that same concept 
about giving workers the option of taking some of their own money and 
investing in the market so, as John said, they can get a better rate on 
their own money. It's not the Government's money to begin with.
    So thanks, I appreciate that very much.
    Speaking about 401(k)s or 403(b)s, which is the 401(k) equivalent 
for the nonprofits--isn't that right, Tricia?
    Thanks for coming.
    Patricia Manley. Thank you.
    The President. Tell everybody what happened 3 weeks ago.
    Mrs. Manley. My husband, Chris, and I 
just had our first daughter, Morgan.
    The President. Very good, yes.
    Mrs. Manley. She's 3 weeks today.
    The President. She's here.
    Mrs. Manley. She is here, waiting to 
meet you.
    The President. Good, looking forward to seeing Morgan. Oh, there's Morgan. Look at her. Oh, yes. Tell Morgan 
not to worry, reform is on the way. [Laughter]
    Go ahead, Trish.

[Mrs. Manley, web strategy manager, National Jewish Medical and Research 
Center, Denver, CO, made further remarks.]

    The President. Yes, that's an interesting thought. People need to 
listen--people in Congress need to listen. I know a lot of young 
Americans aren't supposed to be paying attention to politics, they say; 
but they are. They're beginning to understand that this is going to be a 
problem for generations to come unless we do something.

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    Now, are you--a 403(b), which is--which you invest in--some are 
probably worried about, ``Do I have the capacity to invest?'' There's 
this concept of investor class in America, which means only a certain 
person is capable, kind of an interesting point of view. I, frankly, 
disagree with that. I totally reject that point of view. But in order to 
assure people--I mean, when you start looking at investment options, did 
you find it to be rocket science or something difficult?
    Mrs. Manley. No, not at all. And, you 
know, same thing as with what you're talking about. We have choices. You 
can't just go out and dump all your money in the hottest tech stock. 
You've got a certain number of limited choices that it's not going to 
disappear tomorrow.
    The President. Yes. And you get quarterly statements?
    Mrs. Manley. Absolutely.
    The President. See, I think it's--I think it would be a wonderful 
way to encourage people to pay attention to their Government, is to open 
your quarterly statement and say, ``Look at this; look at my assets. 
They don't seem to be going up so much; maybe we ought to change 
Presidents or something, you know''--[laughter]--or Senators, whatever 
the case may be. [Laughter] Too late, in my case, but nevertheless. 
[Laughter]
    You're on a roll. You're doing great.
    Mrs. Manley. At the end of the day, one 
of the things that's attractive about the personal accounts is that even 
though we've been paying into the system and right now we may not see 
anything, under those accounts, we would at least get something back 
from what we've put in. And the other thing that I really like is that 
at the end of the day, there would be something for us to leave to 
Morgan.
    The President. There you go. Thanks. Great job. Thanks for coming, 
Tricia. Congratulations. Looking forward to 
seeing Morgan. This will be the first time a 
President has kissed her. [Laughter] Looking forward to it. I don't know 
if she is or not, but I am. [Laughter]
    Our final panelist is Randy Reed, one of 
the baby boomers. Randy and I--I'm 58; you're 56.
    Randolph Reed. Yes, Mr. President.
    The President. I'm on the leading edge of the baby boomers. As a 
matter of fact, interestingly enough, my retirement age comes in 2008. 
[Laughter] Isn't that convenient? [Laughter] Back to the trees and the 
dogs, right? [Laughter]
    What do you do, Randy?
    Mr. Reed. Mr. President, I have a custom 
picture frame store in Greenwood Village, Colorado.
    The President. Your own business?
    Mr. Reed. Yes, sir. I own my own business 
with my wife.
    The President. Classic. She's the boss and you're the----
    Mr. Reed. I just follow instructions.
    The President. That's good. [Laughter] Started your own business, 
owning your own business--classic American story, isn't it. Making a 
living?
    Mr. Reed. Yes, sir.
    The President. That's good. Why are you concerned, besides--you were 
born before 1950.
    Mr. Reed. I was born--yes, Mr. President, 
I was born before 1950.
    The President. You're in good shape. Don't worry about it.

[Mr. Reed made further remarks.]

    The President. You know, I hear from a lot of small businesses, and 
they obviously take great comfort in knowing that at least we're 
addressing the issue, trying to solve the problem. Can you imagine being 
a small business, like Randy's, who puts a lot 
of money into the payroll tax--pays a lot of payroll tax, the company 
portion of payroll taxes, thinking that, ``Well, maybe there won't be a 
system for the people that I'm contributing toward.'' And so one

[[Page 499]]

of the things that will help the entrepreneurial spirit, at least help 
the small businesses to know, that we've got the courage to come 
together to reform the system so that your contributions will work. 
They'll do what they're intended to do. And part of the payroll tax--the 
personal accounts coming out of the payroll tax will obviously be a part 
of what he's contributing to a worker's--half of the worker's payroll 
tax.
    And so this is a big issue for small businesses, folks. I mean, this 
is a very important part of making sure that the small-business sector 
remains strong, that we've got to solve this problem now.
    You got anything else to add? Any wisdom? You want to sell a product 
or two? You got a chance here. [Laughter]
    Mr. Reed. Yes. What I would like to say, 
though, Mr. President, is that I'm not looking for a bandaid effect to 
this. I'd like to see a permanent fix for the Social Security 
Administration.
    The President. Yes, I appreciate you saying that. I think coming to 
the table--when we get people to the table, we're talking permanent.
    I think that's the spirit of the Congress, don't you, John?
    Senator McCain. Yes, sir.
    The President. Yes. Listen, I hope you've enjoyed this as much as I 
have. I want to tell you something. You can influence the outcome of 
this debate; people here in the audience and people watching on TV can 
decide whether or not Congress hears the call--hears the call that 
Senator McCain issued, hears the call that I've 
issued, hears the call that panelists have issued, which is, ``Look, 
we're concerned. We have a problem. Show us that you're capable of 
coming together to solve the problem.''
    My strategy is simple. I'm going to continue to travel this country 
making it abundantly clear, the nature of the problem, assuring seniors 
that they have nothing to worry about, because I understand once that 
sinks in, once people know we have a problem and seniors have nothing to 
worry about, the question from the people will--going to be, ``What are 
you going to do to fix it?'' And I'm more than willing to come to the 
table and listen to ideas.
    Today we discussed some interesting ideas that will help make the 
Social Security system work better for the individual or, as 
John said, will help make the system connect to 
a young generation.
    I hope--I'm confident that eventually the will will be there to get 
something done. I appreciate so much, Senator, 
your willingness to join in this issue. I love the spirit of somebody 
saying, ``We're not going to pass this on. Now is the time to confront 
the problem. Now is the time to do our duty as elected officials.''
    Thank you for your interest in the subject. May God bless you all, 
and may God continue to bless our country.

Note: The President spoke at 4:44 p.m. at the Wings Over the Rockies Air 
and Space Museum. In his remarks, he referred to Gov. Bill Owens of 
Colorado and his wife, Frances; Lt. Gov. Jane Norton and State Attorney 
General John W. Suthers of Colorado; Mark Hillman, minority leader, 
Colorado State Senate; Joe Stengel, minority leader, Colorado State 
House of Representatives; President Mahmoud Abbas (Abu Mazen) of the 
Palestinian Authority; and former Senator Bob Dole. The Office of the 
Press Secretary also released a Spanish language transcript of these 
remarks.

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