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THE WHITE HOUSE
WASHINGTON
December 6, 1963
MEMORANDUM FOR
Mr. Louis Martin
Democratic National Committee
The attached somehow turned up on my
desk and it seemed to me that it might
be of interest to you. I pass it on for
whatever action you deem appropriate.
Lee be C. White
Assistant Special Counsel
to the President
Enc.
OHIO NEGROES
Columbus, Ohio, Correspondent
October 7, 1963
Governor Rhodes has appointed several Negroes to high
positions for the first time in the history of the state, and has retained
the few Negroes appointed by Governor DiSalle. Some of the Rhodes
appointeed are:
Llewlyn Jack Coles, Administrative Assistant to the
Governor.
William O. Walker, Industrial Relations Director.
Augustus G. Parker, Chairman, Industrial Compensation Board.
Ellis Ross, Chairman, Civil Rights Commission.
Leonard Holland, Secretary-Treasurer, Civil Rights Commission.
William Willis, member of the Youth Commission.
Macco Clarke, member of the Education Regent Board.
Ralph Brown, examiner, Bureau of Unemployment Compensation.
Wade Franklin, Intergroup Relations chief.
Ralph Beason, Motor Pool Superintendent.
Robert Duncan, Chief Attorney of Liquor Control and Unemployment
Compensation.
Ollie Milner, Superintendent of Bedding and Upholstery.
J. Maynard Dickerson, a Lausche Democrat, was transferred from
chairman of the Industrial Compensation Commission to a member of the Liquor
Control Commission. Joseph Doneghy retained his position as dhairman of the
Pardon and Parole Commission.
Salaries of these positions range from $10,000 to $14,000 a year.
The record of Federal appointments of Negroes has not been
Ohio Negroes (2)
good in Ohio. Franklin Whittaker, one of the first Negroes given a Federal
appointment was a Republican. Whittaker was named to the book Commerce
Department. Rixxx Dissatisfied with his assignments there he moved to the
Civil Rights Commission. Still dissatisfied he resigned to return to the
private practice of law in Cincinnati. Negro Democrats here that he has
been sent out there to build a Kennedy Negro organization and they resent
being bypassed.
One of the few other Negro appointments in Shio is
Frederick H. Kelley, who has been named an appraiser in the Columbus
office of the Federal Housing Administration. He is the first Negro
appraiser in the country, but is only a G.S. 9. There is said to be no
Negvo Democrat serving anywhere at a policy level.
SMALL BUSINESS ADMINISTRATION
WASHINGTON, D.C. 20416
OFFICE OF THE ADMINISTRATOR
February 5, 1964
The President
The White House
Washington, D. C. 20501
Subject: Pilot Loan Project for Pro-
spective Negro Businessmen
Dear Mr. President:
I thought that you would be Interested to learn that the
Small Business Administration launched a pilot loan and management
training program for very small businesses, particularly those of
minority groups, In Philadelphia last week, and that the Initial
response to the program has been extremely enthuslastic.
Briefly, the program operates as follows:
Three Philadelphia Institutions have organized a non-profit
corporation. (The three Institutions are: (1) the City of Philadel-
phia; (2) the Drexel Institute of Technology; and (3) the Fellowship
Commission.) This non-profit foundation, called the Small Business
Opportunities Corporation, will have a permanent staff of five people
augmented by the voluntary participation of 30-40 prominent business-
men from the Philadelphia area.
The non-profit corporation will recruit and screen prospective
businessmen from the varlous poverty groups and, with the help of SBA,
will organize a training program for each Individual, pointed towards a
particular enterprise. Any person certified by the non-profit corpora-
tion as reasonably qualified to conduct successfully the type of busi-
ness he proposes to enter will be eligible for a special loan from the
SBA. It is a special loan because it will not require previous earn-
Ings record, previous experience, or collateral. Loans are presently
limited to $6,000, with a maturity of six years.
It Is expected that the early applicants will be trained in
finance for the operation of grocery stores, service stations, repair
shops, paint stores and similar small retail and service operations.
In the first five days of the program (January 29 to February
4) 293 small businessmen were screened, 100 of them referred to SBA to
discuss their financial problems with loan specialists, 45 loan appll-
cations were handed out and three applications are nearly ready for
approval.
If this program proves successful, It Is Intended to estab-
11sh a similar program In several other cities, Including Boston, New
York, Chicago, Los Angeles, Detroit, and Washington, D. C. The pilot
project may Indicate that legislation will be required to liberalize
SBA's lending authority for nationwide operation. We will not know
whether this is absolutely necessary until we have several months of
experience with the Philadelphia project.
Respectfully yours,
(Signed) Eugene P. Foley
Eugene P. Foley
Administrator
SMALL BUSINESS ADMINISTRATION
WASHINGTON 25, D.C.
OFFICE OF THE ADMINISTRATOR
December 9, 1963
MEMORANDUM FOR:
Honorable Walter Jenkins
Special Assistant to the President
FROM:
Eugene P. Foley
Administrator
SUBJECT:
Coordination of Federal Lending and Spending
Programs in Hard Core Unemployment Areas
of Major Citles
I am attaching a memorandum on the above subject which
I sent to a group of officials In the Administration some time
ago. It Is hard to believe there Is no coordination of Federal
programs in urban areas but there isn't. I think we can doda
much better job of Implementing these programs if they were
coordinated with other Federal programs as well as municipal
planning and, at the same time attack one of the major economic
and social problems of the country -- the hard core unemployment
areas of major cities.
I personally think this has great political benefits for
President Johnson. I might suggest we select a pilot city to
experiment with and after some of the "bugs" are worked out, arrange
for the President to hold a conference of the Congressmen and mayors
of other large cities for the purpose of announcing a program to
attack this problem.
1 have not gone forward with this plan as yet and would
like to have some Indication of approval to go ahead before I start.
I would, of course, see to it that there would be no national
publicity until the President made his announcement.
Attachment
SMALL BUSINESS ADMINISTRATION
WASHINGTON 25, D.C.
OFFICE OF THE ADMINISTRATOR
October 30, 1963
MEMORANDUM FOR: Bernard L. Boutin
General Services Administration
FROM:
Eugene P. Foley
Administrator
SUBJECT:
Coordination of Federal Lending and Spending
Programs in Hard Core Unemployment Areas of
Major Citles
At the meeting in your office recently, I mentioned
my thoughts on the above subject. Briefly stated, they are as
follows:
A number of Federal agencies have lending or spending
programs that operate In our major cities. For Instance, SBA
has a regular business loan program (amounting to approximately
$300 million a year), a state and local development company program
(amounting to approximately $35 million a year), and a small business
investment company program (amounting to approximately $85 million
a year). Urban Renewal, of course, has a major program as do HEW,
Labor, (Manpower Training), and ARA.
The heart of the problem is the fact that most of our
hard core long range unemployment is in large citles which are
generally not covered by the programs of the Area Redevelopment
Administration. It seems to me we could accomplish a great deal
In terms of alleviating this hard core problem by coordinating
the existing programs of the Federal Government.
More specifically, I have In mind selecting a city that
has a Democratic mayor and appointing a Federal Coordinator representing
all agencies of the Government that might have a spending or lending
program in that city to work with the city government. This may seem
obvious and simple, but the plain facts of life are that this has never
been done. Most city departments are like government bureaus: they
are compartmentalized and think solely in terms of their own agency's
operations. (Bill Slayton of URA, for Instance, did not know of the
opportunities that exist in the community development program which
I administer; he simply had never heard of it before.)
I discussed this with Lee White and he feels It would be a
good idea to select a city as a pilot program to see If this might
possibly be expanded to cover all the major cities in the U.S.
Needless to say, there could concelvably be a political benefit
both for the Administration and for friendly mayors.
I cannot be at the next scheduled meeting of our group
but you may wish to discuss this matter in my absence. The following
cities may conceivably be selected as the pilot city: St. Louis,
Providence, Philadelphia, Pittsburgh, Detroit, Los Angeles, Chicago,
and Cleveland.
1 am sending this memorandum to you in order to get your
views on this both as to its economic practicality as well as Its
political practicality. If there seems to be a consensus of
approval, I would take the bull by the horns and call the necessary
Federal agencies together, select a city, and go to work. If you have
any thoughts on this, I would be Interested in hearing from you.
CC: Lee White - White House
James K. Carr - Interior
Frederick G. Dutton - State
John S. Gleason, Jr. - VA
William J. Hartigan - PO
John F. Henning - Labor
Ivan A. Nestigen - HEW
Milton P. Semer - HHFA
SMALL BUSINESS ADMINISTRATION
WASHINGTON 25, D.C.
OFFICE OF THE ADMINISTRATOR
October 29, 1963
MEMORANDUM FOR:
Bernard L. Boutin
Administrator
General Services Administration
James K. Carr
Under Secretary
Department of the Interior
Frederick G. Dutton
Assistant Secretary of State
John S. Gleason, Jr.
Administrator
Veterans Administration
William J. Hartigan
Assistant Postmaster General
John F. Henning
Under Secretary
Department of Labor
Ivan A. Nestingen
Under Secretary
Department of Health, Education and Welfare
Milton P. Semer
General Counsel
Housing and Home Finance Agency
FROM:
Administrator Small Eugene Business P. Foley Administration E.P.Dbley - -
SUBJECT:
Coordination of Federal Lending and Spending Pro-
grams In Hard Core Unemployment Areas of Major Cities
Lee white
SMALL BUSINESS ADMINISTRATION
WASHINGTON 25, D.C.
OFFICE OF THE ADMINISTRATOR
January 6, 1964
MEMORANDUM FOR:
Honorable Walter Jenkins
Special Assistant to the President
FROM:
Eugene P. Foley Eugene P. Foley
Administrator
SUBJECT:
Small Business Loans to Prospective
Negro Buslnessmen, Philadelphia, Pa.
On January 28, 1964, 1 am Inaugurating In Philadelphia a pro-
gram designed to Increase the number and volume of small business loans
to Negro businessmen. 1 have a series of conferences arranged all day
In Philadelphia, together with radio and TV programs and a general news
conference. This has attracted considerable Interest. I think you
ought to know about It in the event you may wish to Identify the Presi-
dent with the project.
The plan I am following In Philadelphia is what I hope to
begin in other cities. Briefly, I am developing a system In which the
SBA works with a private, non-profit foundation (in this case It is the
Small Business Opportunities Corporation sponsored by the Drexel Insti-
tute, the Fellowship Commission and the City of Philadelphia) which will
recruit prospective Negro businessmen and, In cooperation with SBA, give
them a business management training program. The SBA will then advance
the necessary capital for those persons recommended by the non-profit
foundation as reasonably qualified to manage a business. This is a
major change in our program because It will call for some relaxation
of our lending criteria. I have not gone beyond Philadelphia at this
time because I want to see what our experience is. I do have In mind,
however, attempting a similar program In other cities which have a
heavy Negro population.
The basic reasons for a special emphasis in the Negro busl-
ness community are rather obvious. There are 600,000 Negroes in Phila-
delphia, approximately 5,000 Negro-owned businesses, but only 7 SBA
loans to those businesses In 102 years. It is well recognized In bank-
Ing circles that Negro businesses are extremely risky and financing is
therefore hardly available to potential Negro businessmen. Our ultimate
- 2 -
objective, of course, Is to help develop a strong middle class among
the Negro community. This should help give that community not only
leadership but a sound, stable social structure.
For the first time In the history of SBA I have appointed
several Negroes to our National Advisory Council. I Intend to appoint
more. It may be that the President or someone In the White House acting
for the President would like to contact personally varlous Negroes for
appointment to the Advisory Council. Jackie Robinson, for Instance,
might be a good appointment.
The Negro press In America will be covering our Philadelphia
meeting very closely and heavily. Please advise If you would like to
have a White House Identification In any way with this project. I
should be happy to prepare any message or letter. I am not advising
anyone within SBA or the Negro community of this memorandum, In the
event you may have some other thought on this.
Document source description
October 1963 memo on blacks appointed to positions in the Ohio state government.
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"ocrText": "File\nTHE WHITE HOUSE\nWASHINGTON\nDecember 6, 1963\nMEMORANDUM FOR\nMr. Louis Martin\nDemocratic National Committee\nThe attached somehow turned up on my\ndesk and it seemed to me that it might\nbe of interest to you. I pass it on for\nwhatever action you deem appropriate.\nLee be C. White\nAssistant Special Counsel\nto the President\nEnc.\nOHIO NEGROES\nColumbus, Ohio, Correspondent\nOctober 7, 1963\nGovernor Rhodes has appointed several Negroes to high\npositions for the first time in the history of the state, and has retained\nthe few Negroes appointed by Governor DiSalle. Some of the Rhodes\nappointeed are:\nLlewlyn Jack Coles, Administrative Assistant to the\nGovernor.\nWilliam O. Walker, Industrial Relations Director.\nAugustus G. Parker, Chairman, Industrial Compensation Board.\nEllis Ross, Chairman, Civil Rights Commission.\nLeonard Holland, Secretary-Treasurer, Civil Rights Commission.\nWilliam Willis, member of the Youth Commission.\nMacco Clarke, member of the Education Regent Board.\nRalph Brown, examiner, Bureau of Unemployment Compensation.\nWade Franklin, Intergroup Relations chief.\nRalph Beason, Motor Pool Superintendent.\nRobert Duncan, Chief Attorney of Liquor Control and Unemployment\nCompensation.\nOllie Milner, Superintendent of Bedding and Upholstery.\nJ. Maynard Dickerson, a Lausche Democrat, was transferred from\nchairman of the Industrial Compensation Commission to a member of the Liquor\nControl Commission. Joseph Doneghy retained his position as dhairman of the\nPardon and Parole Commission.\nSalaries of these positions range from $10,000 to $14,000 a year.\nThe record of Federal appointments of Negroes has not been\nOhio Negroes (2)\ngood in Ohio. Franklin Whittaker, one of the first Negroes given a Federal\nappointment was a Republican. Whittaker was named to the book Commerce\nDepartment. Rixxx Dissatisfied with his assignments there he moved to the\nCivil Rights Commission. Still dissatisfied he resigned to return to the\nprivate practice of law in Cincinnati. Negro Democrats here that he has\nbeen sent out there to build a Kennedy Negro organization and they resent\nbeing bypassed.\nOne of the few other Negro appointments in Shio is\nFrederick H. Kelley, who has been named an appraiser in the Columbus\noffice of the Federal Housing Administration. He is the first Negro\nappraiser in the country, but is only a G.S. 9. There is said to be no\nNegvo Democrat serving anywhere at a policy level.\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON, D.C. 20416\nOFFICE OF THE ADMINISTRATOR\nFebruary 5, 1964\nThe President\nThe White House\nWashington, D. C. 20501\nSubject: Pilot Loan Project for Pro-\nspective Negro Businessmen\nDear Mr. President:\nI thought that you would be Interested to learn that the\nSmall Business Administration launched a pilot loan and management\ntraining program for very small businesses, particularly those of\nminority groups, In Philadelphia last week, and that the Initial\nresponse to the program has been extremely enthuslastic.\nBriefly, the program operates as follows:\nThree Philadelphia Institutions have organized a non-profit\ncorporation. (The three Institutions are: (1) the City of Philadel-\nphia; (2) the Drexel Institute of Technology; and (3) the Fellowship\nCommission.) This non-profit foundation, called the Small Business\nOpportunities Corporation, will have a permanent staff of five people\naugmented by the voluntary participation of 30-40 prominent business-\nmen from the Philadelphia area.\nThe non-profit corporation will recruit and screen prospective\nbusinessmen from the varlous poverty groups and, with the help of SBA,\nwill organize a training program for each Individual, pointed towards a\nparticular enterprise. Any person certified by the non-profit corpora-\ntion as reasonably qualified to conduct successfully the type of busi-\nness he proposes to enter will be eligible for a special loan from the\nSBA. It is a special loan because it will not require previous earn-\nIngs record, previous experience, or collateral. Loans are presently\nlimited to $6,000, with a maturity of six years.\nIt Is expected that the early applicants will be trained in\nfinance for the operation of grocery stores, service stations, repair\nshops, paint stores and similar small retail and service operations.\nIn the first five days of the program (January 29 to February\n4) 293 small businessmen were screened, 100 of them referred to SBA to\ndiscuss their financial problems with loan specialists, 45 loan appll-\ncations were handed out and three applications are nearly ready for\napproval.\nIf this program proves successful, It Is Intended to estab-\n11sh a similar program In several other cities, Including Boston, New\nYork, Chicago, Los Angeles, Detroit, and Washington, D. C. The pilot\nproject may Indicate that legislation will be required to liberalize\nSBA's lending authority for nationwide operation. We will not know\nwhether this is absolutely necessary until we have several months of\nexperience with the Philadelphia project.\nRespectfully yours,\n(Signed) Eugene P. Foley\nEugene P. Foley\nAdministrator\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nDecember 9, 1963\nMEMORANDUM FOR:\nHonorable Walter Jenkins\nSpecial Assistant to the President\nFROM:\nEugene P. Foley\nAdministrator\nSUBJECT:\nCoordination of Federal Lending and Spending\nPrograms in Hard Core Unemployment Areas\nof Major Citles\nI am attaching a memorandum on the above subject which\nI sent to a group of officials In the Administration some time\nago. It Is hard to believe there Is no coordination of Federal\nprograms in urban areas but there isn't. I think we can doda\nmuch better job of Implementing these programs if they were\ncoordinated with other Federal programs as well as municipal\nplanning and, at the same time attack one of the major economic\nand social problems of the country -- the hard core unemployment\nareas of major cities.\nI personally think this has great political benefits for\nPresident Johnson. I might suggest we select a pilot city to\nexperiment with and after some of the \"bugs\" are worked out, arrange\nfor the President to hold a conference of the Congressmen and mayors\nof other large cities for the purpose of announcing a program to\nattack this problem.\n1 have not gone forward with this plan as yet and would\nlike to have some Indication of approval to go ahead before I start.\nI would, of course, see to it that there would be no national\npublicity until the President made his announcement.\nAttachment\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nOctober 30, 1963\nMEMORANDUM FOR: Bernard L. Boutin\nGeneral Services Administration\nFROM:\nEugene P. Foley\nAdministrator\nSUBJECT:\nCoordination of Federal Lending and Spending\nPrograms in Hard Core Unemployment Areas of\nMajor Citles\nAt the meeting in your office recently, I mentioned\nmy thoughts on the above subject. Briefly stated, they are as\nfollows:\nA number of Federal agencies have lending or spending\nprograms that operate In our major cities. For Instance, SBA\nhas a regular business loan program (amounting to approximately\n$300 million a year), a state and local development company program\n(amounting to approximately $35 million a year), and a small business\ninvestment company program (amounting to approximately $85 million\na year). Urban Renewal, of course, has a major program as do HEW,\nLabor, (Manpower Training), and ARA.\nThe heart of the problem is the fact that most of our\nhard core long range unemployment is in large citles which are\ngenerally not covered by the programs of the Area Redevelopment\nAdministration. It seems to me we could accomplish a great deal\nIn terms of alleviating this hard core problem by coordinating\nthe existing programs of the Federal Government.\nMore specifically, I have In mind selecting a city that\nhas a Democratic mayor and appointing a Federal Coordinator representing\nall agencies of the Government that might have a spending or lending\nprogram in that city to work with the city government. This may seem\nobvious and simple, but the plain facts of life are that this has never\nbeen done. Most city departments are like government bureaus: they\nare compartmentalized and think solely in terms of their own agency's\noperations. (Bill Slayton of URA, for Instance, did not know of the\nopportunities that exist in the community development program which\nI administer; he simply had never heard of it before.)\nI discussed this with Lee White and he feels It would be a\ngood idea to select a city as a pilot program to see If this might\npossibly be expanded to cover all the major cities in the U.S.\nNeedless to say, there could concelvably be a political benefit\nboth for the Administration and for friendly mayors.\nI cannot be at the next scheduled meeting of our group\nbut you may wish to discuss this matter in my absence. The following\ncities may conceivably be selected as the pilot city: St. Louis,\nProvidence, Philadelphia, Pittsburgh, Detroit, Los Angeles, Chicago,\nand Cleveland.\n1 am sending this memorandum to you in order to get your\nviews on this both as to its economic practicality as well as Its\npolitical practicality. If there seems to be a consensus of\napproval, I would take the bull by the horns and call the necessary\nFederal agencies together, select a city, and go to work. If you have\nany thoughts on this, I would be Interested in hearing from you.\nCC: Lee White - White House\nJames K. Carr - Interior\nFrederick G. Dutton - State\nJohn S. Gleason, Jr. - VA\nWilliam J. Hartigan - PO\nJohn F. Henning - Labor\nIvan A. Nestigen - HEW\nMilton P. Semer - HHFA\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nOctober 29, 1963\nMEMORANDUM FOR:\nBernard L. Boutin\nAdministrator\nGeneral Services Administration\nJames K. Carr\nUnder Secretary\nDepartment of the Interior\nFrederick G. Dutton\nAssistant Secretary of State\nJohn S. Gleason, Jr.\nAdministrator\nVeterans Administration\nWilliam J. Hartigan\nAssistant Postmaster General\nJohn F. Henning\nUnder Secretary\nDepartment of Labor\nIvan A. Nestingen\nUnder Secretary\nDepartment of Health, Education and Welfare\nMilton P. Semer\nGeneral Counsel\nHousing and Home Finance Agency\nFROM:\nAdministrator Small Eugene Business P. Foley Administration E.P.Dbley - -\nSUBJECT:\nCoordination of Federal Lending and Spending Pro-\ngrams In Hard Core Unemployment Areas of Major Cities\nLee white\nSMALL BUSINESS ADMINISTRATION\nWASHINGTON 25, D.C.\nOFFICE OF THE ADMINISTRATOR\nJanuary 6, 1964\nMEMORANDUM FOR:\nHonorable Walter Jenkins\nSpecial Assistant to the President\nFROM:\nEugene P. Foley Eugene P. Foley\nAdministrator\nSUBJECT:\nSmall Business Loans to Prospective\nNegro Buslnessmen, Philadelphia, Pa.\nOn January 28, 1964, 1 am Inaugurating In Philadelphia a pro-\ngram designed to Increase the number and volume of small business loans\nto Negro businessmen. 1 have a series of conferences arranged all day\nIn Philadelphia, together with radio and TV programs and a general news\nconference. This has attracted considerable Interest. I think you\nought to know about It in the event you may wish to Identify the Presi-\ndent with the project.\nThe plan I am following In Philadelphia is what I hope to\nbegin in other cities. Briefly, I am developing a system In which the\nSBA works with a private, non-profit foundation (in this case It is the\nSmall Business Opportunities Corporation sponsored by the Drexel Insti-\ntute, the Fellowship Commission and the City of Philadelphia) which will\nrecruit prospective Negro businessmen and, In cooperation with SBA, give\nthem a business management training program. The SBA will then advance\nthe necessary capital for those persons recommended by the non-profit\nfoundation as reasonably qualified to manage a business. This is a\nmajor change in our program because It will call for some relaxation\nof our lending criteria. I have not gone beyond Philadelphia at this\ntime because I want to see what our experience is. I do have In mind,\nhowever, attempting a similar program In other cities which have a\nheavy Negro population.\nThe basic reasons for a special emphasis in the Negro busl-\nness community are rather obvious. There are 600,000 Negroes in Phila-\ndelphia, approximately 5,000 Negro-owned businesses, but only 7 SBA\nloans to those businesses In 102 years. It is well recognized In bank-\nIng circles that Negro businesses are extremely risky and financing is\ntherefore hardly available to potential Negro businessmen. Our ultimate\n- 2 -\nobjective, of course, Is to help develop a strong middle class among\nthe Negro community. This should help give that community not only\nleadership but a sound, stable social structure.\nFor the first time In the history of SBA I have appointed\nseveral Negroes to our National Advisory Council. I Intend to appoint\nmore. It may be that the President or someone In the White House acting\nfor the President would like to contact personally varlous Negroes for\nappointment to the Advisory Council. Jackie Robinson, for Instance,\nmight be a good appointment.\nThe Negro press In America will be covering our Philadelphia\nmeeting very closely and heavily. Please advise If you would like to\nhave a White House Identification In any way with this project. I\nshould be happy to prepare any message or letter. I am not advising\nanyone within SBA or the Negro community of this memorandum, In the\nevent you may have some other thought on this."
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