Commonwealth of Australia Explanatory Memoranda

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NON-PROLIFERATION LEGISLATION AMENDMENT BILL 2003

2002 - 2003




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




HOUSE OF REPRESENTATIVES



NON-PROLIFERATION LEGISLATION AMENDMENT BILL 2003




EXPLANATORY MEMORANDUM




(Circulated by authority of the Minister for Foreign Affairs,
the Honourable Alexander Downer MP)


NON-PROLIFERATION LEGISLATION AMENDMENT BILL 2003


GENERAL OUTLINE

The Non-Proliferation Legislation Amendment Bill (Bill) strengthens Australia’s arrangements for the protection of, and application of non-proliferation safeguards to, nuclear material, facilities and associated information. It will enable Australia to bring into force legislation banning nuclear weapon tests ahead of entry into force of the Comprehensive Nuclear-Test-Ban Treaty (CTBT). It provides also for machinery changes to improve the application of non-proliferation measures.

The Nuclear Non-Proliferation (Safeguards) Act 1987 (the Safeguards Act) is amended to:–

• strengthen procedures to protect information relevant to proliferation of nuclear weapons and to the physical security of nuclear material;

• ensure that regulatory arrangements apply to any material specially suited for use in nuclear activities, or the production of nuclear explosive devices;

• require a permit for activity to establish a nuclear installation;

• create offences for unauthorised access to an area specified in a permit for the possession or transport of nuclear material or associated items, and for causing damage to an installation or mechanism intended to protect nuclear material or associated items;

• bring penalty provisions into line with current legislative practice.

The Comprehensive Nuclear-Test-Ban Treaty Act 1998 (the CTBT Act) is amended to:-

• enable the proclamation of key provisions of the Act ahead of entry-into-force of the Comprehensive Nuclear Test-Ban Treaty; and

• revise provisions dealing with on-site inspection so that they better reflect the practical requirements of such an inspection.

These two Acts, along with the Chemical Weapons (Prohibition) Act 1994 (the CWP Act), are amended to provide for the implementing office and its Director to be referred to by a name or title specified by the Minister.


FINANCIAL IMPACT STATEMENT

The measures dealt with by the Bill will have little or no financial impact.

NON-PROLIFERATION LEGISLATION AMENDMENT BILL 2003

NOTES ON CLAUSES

Clause 1: Short Title
1. Clause 1 specifies that the Act may be cited as the Non-Proliferation Legislation Amendment Act 2003.

Clause 2: Commencement
2. All provisions of the Bill commence on the day the Bill receives Royal Assent other than those in Schedule 1 which will commence the day after the Bill receives Royal Assent.

Clause 3: Schedules

3. This clause provides that the Nuclear Non-Proliferation (Safeguards) Act 1987, the Comprehensive Nuclear Test-Ban Act 1998 and the Chemical Weapons (Prohibition) Act 1994 are amended as set out in the Schedules.


SCHEDULE 1 – Nuclear Safeguards

Part 1 – Main Amendments

Nuclear Non-Proliferation (Safeguards) Act 1987

Items 1, 2: Subsection 4(1) (paragraph (a) of the definition of associated material)

4. Item 1 extends the range of materials which the Minister may declare to be associated material. In addition to material specially suited for use in the construction or operation of a nuclear reactor, the amended definition includes materials for use in nuclear activities as defined in the Safeguards Act, or in the production of nuclear weapons or other nuclear explosive devices.

5. Item 2 provides for the saving of associated material declarations in force immediately before the commencement of the Schedule.

Items 3, 4: (definition of containment device)

6. Item 3 extends the definition of a containment device from a physical barrier to include any device used to contain relevant items or information.

7. Item 4 adds a nuclear facility to the set of items for which movement, or access, may be controlled by a containment device.

Item 5: (definition of permit)

8. This item extends the definition of a permit under the Safeguards Act to include a permit granted under section 16A inserted by the Act (see item 10).

Items 6, 7: Subsection 4(1) (after paragraph (a) of the definition of surveillance device)

9. These items extend the definition of surveillance device to include devices that monitor movement past or through a containment device, or that may circumvent a containment device or surveillance device.

Item 8: Part II (heading)

10. This item broadens the scope of the heading of Part II of the Safeguards Act to reflect new permit arrangements inserted by item 10 of this Schedule.

Items 9-17: Permit to establish facility

11. Item 10 inserts section 16A which establishes a regime for permits for work to be carried out to establish a nuclear facility, a facility for carrying out nuclear activities, or a facility for the use of associated equipment. Under the regime:
• the Minister may grant a permit once the Director has made a report on the application. The report should specify whether the Director is satisfied that the applicant has supplied information required by the Director, and whether it will be possible to implement procedures at the facility relevant to safeguards on nuclear material and to physical security of nuclear material and associated items;
• the permit may be granted subject to restrictions and conditions in respect of the design of the facility, inspection of the facility and work on it by inspectors and Agency inspectors, and of reports to be made on work on the facility;
• permit conditions may include a requirement that the permission of a specified person is obtained before a certain act or thing may be done;
• the restrictions and conditions which may be included in a permit are not limited to those set out in section 16A; and
• permits may be varied by the Minister.

12. Items 9 and 11 to 17 amend sections 12, 19, 20 and 22 of the Safeguards Act so that references to permits in those sections include reference to a permit, issued under section 16A, to establish a facility.

Items 18, 19: Subsection 23(1)

13. These items amend the penalty for the offence of possession of nuclear material or an associated item without a permit. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914, which allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. The maximum fine is calculated by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting sum by the amount of a penalty unit as defined in section 4AA of the Crimes Act 1914.

Item 20: Subsection 25(1)(penalty)

14. This item amends the penalty for the offence of breach of a condition of a permit or authority. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 21: After section 25

15. Item 21 inserts section 25A into the Safeguards Act creating an offence for breach of a duty to ensure the security of associated technology. The offence applies to a person who is authorised by the holder of a permit to possess associated technology to deal with that associated technology. If the person has a duty to ensure the physical security of the associated technology, but engages in conduct which breaches that duty, the person commits an offence. The duty to ensure the physical security of the associated technology may arise, for example, from the person’s employment by the permit holder, or pursuant to a contract between them. A penalty of 2 years imprisonment is specified for the offence.

16. Item 21 makes clear that conduct breaching a duty to ensure the physical security of associated technology may result either from an act, or an omission to perform an act. The item specifies also that the geographical scope of jurisdiction for an offence is that set out in category A of Section 15.1 of the Criminal Code.

Item 22: Application of new offence

17. This item makes clear that the fact that a person was authorised to deal with associated technology before the commencement of the Schedule does not prevent the application of section 25A to conduct occurring at or after that commencement.

Items 23, 24: Subsection 26(1)

18. These items amend the penalty for the offence of unauthorised communication of associated technology. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 25: At the end of section 26.

19. This item inserts a provision clarifying the geographical scope of jurisdiction in relation to an offence under section 26 of the Safeguards Act, namely that the section applies to Australian nationals or body corporates, for their conduct anywhere in the world.

Item 26: After section 26

20. Item 26 inserts a section 26A into the Safeguards Act creating an offence for communication prejudicing the security of nuclear material or an associated item. The offence applies to a person who communicates information to someone else, in circumstances where that communication could prejudice the physical security of nuclear material or an associated item. A penalty of 2 years imprisonment is specified for the offence.

21. Subsection 26A(2) makes clear that the offence does not apply where a person who holds a permit to possess the nuclear material or associated item has authorised the communication. Item 26 specifies also that the geographical scope of jurisdiction for an offence is that set out in category A of Section 15.1 of the Criminal Code.

Item 27: Application of new offence

22. Item 27 makes clear also that the application of section 26A applies to conduct occurring at or after that commencement of the Schedule (the day after the Bill receives Royal Assent).

Items 28, 29: Subsection 27(2)

23. These items amend the penalty for failure to give notice as required by section 27(1) . The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Items 30, 31: Section 28

23. These items amend the penalty for the offence of interference with containment or surveillance devices. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Items 32: After section 28

24. Item 32 inserts section 28A into the Safeguards Act establishing an offence for the establishment of a facility without a permit. A relevant facility includes a nuclear facility, a facility for carrying out nuclear activities, or a facility for the use of associated equipment to which Part II of the Safeguards Act applies. Subsection 28(2) makes clear that the intention of the person causing the work to be carried out is critical to the commission of an offence.

Item 33: Application of new offence

25. Item 33 makes clear that section 28A applies to all work carried out after the commencement of the Schedule, notwithstanding that the work started before the commencement of the Schedule - except for work carried out in the six months immediately following that commencement.

Items 34-37 and 40: Subsection 29(1)

26. The requirement that a permit be obtained under section 16A of the Safeguards Act for any work to establish a facility as defined in section 28A is intended to supersede the provisions in section 29 insofar as they deal with the construction of a nuclear facility. Items 34-37 and 40 amend section 29 to remove references to such construction.

Items 38, 39 Subsection 29(2)

27. These items amend the penalty for the offence of failing to give proper notice of a modification to a nuclear facility. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 41, 42: Subsection 30(1)

28. These items amend the penalty for the offence of making a false or misleading statement to the Minister, the Director, an inspector, an Agency inspector or another person exercising a power, or performing a function or duty, in relation to the Safeguards Act. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 43, 44: Subsection 31(1)

29. These items amend the penalty for the offence of obstructing or hindering an Agency inspector. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 45: At the end of Division 1 of Part III

30. Item 45 inserts section 31A into the Safeguards Act establishing an offence for unauthorised access by a person to areas etc to which access is restricted under a permit under that Act. The offence applies to any area, vehicle, aircraft or ship which is identified in a permit as a location to which the permit holder is required to restrict access. The area must be clearly signposted to indicate that access is so restricted.

31. In view of the fact that permit conditions under the Safeguards Act are not normally publicly available, subsection 31A(2) provides that strict liability applies to paragraphs (1)(b) and (c) of section 31A.

33. Subsection 31A(3) provides that an offence is not committed if access by the person is authorised by the permit holder.

34. Subsection 31A(4) specifies that the geographical scope of jurisdiction for an offence is that set out in category A of Section 15.1 of the Criminal Code.

Item 46: Application of new offence

35. Item 46 makes clear that section 31A applies to any conduct occurring at or after the commencement of this Schedule whether or not the relevant permit was granted before or after that commencement.

Item 47: Sections 33, 34, 35, 36 and 37

36. This items amends the penalty for the offences under sections 33, 34, 35, 36 and 37 of the Safeguards Act. The term of imprisonment indicated for each offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for an offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Items 48, 51: Subsection 40(1)

37. Items 48 and 51 extend the scope of the ‘Hearing in Camera’ provisions of section 40 of the Safeguards Act so that a judge or magistrate may prevent the disclosure of information which could prejudice the physical security of nuclear material or an associated item.

Item 49, 50: Subsection 40(2)

38. These items amend the penalty for the offence of contravening an order made under subsection 40(1). The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 52: Subsection 41(3) (definition of relevant permit)

39. This item amends the definition of a relevant permit for the purposes of section 41 so that it includes any permit granted under a provision of the Safeguards Act.

Item 53 Subsection 58(2) (penalty)

40. This item repeals the penalty provision which specifies a fixed dollar fine for an offence against subsection 58(2) of the Safeguards Act, and replaces it with one specified in terms of penalty units.

Item 54: Subsection 65(1) (penalty)

41. This item amends the penalty for the offence of failing to provide reasonable assistance to the inspector for the purposes of the exercise of the inspector's powers. The term of imprisonment indicated for the offence is unchanged, however references to fines are removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 55 Subsection 66(4)

42. This item repeals the penalty provision which specifies a fixed dollar fine for an offence against subsection 66(4) of the Safeguards Act, and replaces it with one specified in terms of penalty units.

Items 56, 57, 58, 59 Paragraphs 69(1)(a) and 69(1)(b), Subsections 69(2) and 69(3)

43. These items amend references to permits in section 69 of the Safeguards Act so that the provisions of the section apply to any permit granted under that Act.

Item 60: Saving of Register

44. Section 69 of the Safeguards Act requires the Director to maintain a Register of Permit and Authority Holders. Item 60 makes clear that entries made in this Register prior to the commencement of the Schedule remain valid after the commencement of the Schedule notwithstanding the amendments to section 69 in items 56 to 59.

Item 61: Subsection 71(2) (penalty)

45. This items amends the penalty for offences under section 71 of the Safeguards Act. The term of imprisonment indicated for an offence is unchanged, however the references to a fine is removed. The quantum of any fine imposed by a court for this offence will be determined in accordance with Subsection 4B(2) of the Crimes Act 1914.

Item 62: Subsections 72(4) and (5)

46. This item amends references to permits in section 72 of the Safeguards Act so that the provisions of the section apply to any permit granted under that Act.

Item 63: At the end of subsection 72(5)

47. Item 63 provides that where the Director exercises a delegated power to grant a permit under section 16(1) the Director must be satisfied of the matters described in paragraphs 16A(1)(a), (b) and (c) notwithstanding that no report is made under paragraph 12(2)(b).

Item 64: Saving of delegations

48. Although item 62 amends subsection 72(4) of the Safeguards Act, delegations otherwise valid at or after the commencement of the schedule continue to be valid notwithstanding the amendment.

Item 65: At the end of paragraph 73(2)(a)

49. This item adds adjusts the language of paragraph 73(2)(a) of the Safeguards Act consistent with the insertion of paragraph 73(2)(ba) by item 66, confirming that the provisions with respect to which the Minister may make orders or give directions, are not mutually exclusive.

Item 66: After paragraph 73(2)(b)

50. The insertion of paragraph 73(2)(ba) by item 66 provides for the Minister to make orders or give directions to be complied with the holder of a permit issued under section 16A.

Item 67: Paragraph 74(c)

51. This item amends the provision specifying the maximum penalty for an offence against regulations made pursuant to section 74 of the Safeguards Act. It replaces a fixed dollar fine with one specified in terms of penalty units.

Items 68, 69: Paragraphs 74(d) and (g)

52. These items amend references to permits in section 74 of the Safeguards Act so that the provisions of the section apply to any permit granted under that Act.

Item 70: Saving of regulations

53. Although the schedule amends subsection 74 of the Safeguards Act, regulations in force at or after the commencement of the schedule continue to be valid notwithstanding the amendment.


Part 2 – Consequential Amendments


Australian Protective Service Act 1987

Item 71: Subparagraph 13(2)(a)(v)

54. The Australian Protective Service Act 1987 (“the Protective Service Act”) is amended to clarify application of the power of a protective service officer to effect an arrest without a warrant. Subparagraph 13(2)(a)(v) of the Protective Service Act provides that this power applies to all offences under the Safeguards Act other than offences which are specified as excluded. Item 71 adds references to newly created offences under sections 25A and 28A of the Safeguards Act to the list of excluded offences, but does not add a reference to section 26A or 31A. Thus the power of a protective service officer to effect arrest without a warrant applies to an offence under section 26A or 31A of the Safeguards Act.


Australian Radiation Protection and Nuclear Safety Act 1998

Item 72: Subsection 82(1)

55. Section 82 of the Australian Radiation Protection and Nuclear Safety Act 1998 (“the ARPANS Act”) makes clear that inspectors exercising powers under that Act are not excused from meeting specified obligations imposed under the Safeguards Act. Item 72 adds newly created offences under sections 25A and 26A of the Safeguards Act to the application of section 82 of the ARPANS Act. Thus inspectors are not excused from ensuring the physical security of associated technology or from ensuring they do not make communications that prejudice the physical security of nuclear material or an associated item, as required under the Safeguards Act.


SCHEDULE 2 – Nuclear test ban

Comprehensive Nuclear Test-Ban Treaty Act 1998

Item 1 – Section 2

56. Item 1 repeals Section 2 of the CTBT Act and replaces it with provisions that permit parts of the Act to be brought into force through proclamation before the day on which the Treaty enters into force for Australia. If any of those provisions is not proclaimed earlier, it commences on the day that the Treaty enters into force for Australia. The item requires also that the Minister must announce that day by notice in the Gazette. The table details the application of these arrangements as follows:
(a) Sections 3 to 7, which deal with the application of the Act may be brought into force early
(b) Part 2 of the Act, which deals with the Ban on Nuclear Explosions may be brought into force early
(c) Part 3 of the Act, which deals with clarification and consultation on Treaty compliance, and with the conduct of on-site inspections may only come into force with the Treaty
(d) Part 4, Division 1 which deals with the establishment and operation of monitoring facilities may be brought into force early
(e) Part 4, Divisions 2 and 3 which confer powers in relation to use of land for monitoring facilities may only come into force with the Treaty
(f) Parts 5 and 5 of the Act, which deal with establishment of Australia’s national authority for the CTBT, and with miscellaneous matters may be brought into force early
(g) Schedule 1 of the Act, which contains the text of the CTBT.

Items 2-5 – Section 7

57. Item 2 amends Section 7 of the CTBT Act by inserting a definition for clarification inspection area, being an area specified by the Minister in a declaration under section 16A where an inspection under Division 3 of Part 3 may be carried out.

58. Item 3 amends Section 7 of the CTBT Act by inserting a definition for inspection area, being an area specified by the Minister in a declaration under section 17A where an inspection under Division 2 of Part 3 may be carried out. The use of this term brings the language of the CTBT Act more closely in conformity to that used in the CTBT. Section 17A is inserted by Item 26 of the Schedule.

59. Item 4 repeals the definition of inspection site. The term inspection area inserted by Item 3 supersedes that term.

60. Item 5 repeals the definition of occupier and replaces it with a definition that does not require reference to the term inspection site, which is repealed by Item 4.

Item 6: Division 2 of Part 3 (heading)

61. Item 6 repeals the heading “Division 2—On-site inspections” and replaces it with “Division 2—On-site inspections etc”. The new heading reflects a broadening in the scope of the division to include provisions which enable the Director to respond to a request for clarification in connection with an on-site inspection.

Item 7 – Subsections 11(1) and (2)

62. Item 7 repeals subsections 11(1) and 11(2) of the CTBT Act and replaces them with revised provisions. Under the revised subsection 11(1):
(a) The Director is given the power to provide the CTBT Organization with information in response to the concern raised in the request for an on-site inspection, as required by Article IV of the CTBT; and
(b) a declaration by the Minister to specify where the inspection will take place should specify an inspection area, rather than specific premises. Use of the term inspection area accords more closely with the language of the CTBT.

63. The revised Subsection 11(2) sets out the right of an Organization inspector to enter premises anywhere within an inspection area, either with the consent of an occupier, or by warrant. The repealed subsection expressed this power in relation to the occupier of an inspection site. Item 4 repeals the latter term.

Items 8-25 - Premises in an inspection area

64. These items update terms used in the CTBT Act that refer to the locations where national inspectors, Organisation inspectors and any observer may have access, and the powers the inspectors may exercise. Prior to these amendments the sections 11, 12 and 15 of the CTBT Act refer to access to and exercise of powers at premises which constitute an inspection site. The amended provisions refer to premises in an inspection area, since an inspection area as defined by the CTBT may comprise multiple premises.

Item 26 – After section 17

65. Item 26 adds a provision under which the Minister may make a declaration specifying a clarification inspection area. Such a declaration defines an area within which activities pursuant to the provisions of Division 3 of Part 3 (Clarification Procedures) of the CTBT Act may take place.

Item 27-37 Premises in a clarification inspection area

66. These items update terms used in the CTBT Act that refer to the locations where national inspectors and foreign country inspectors may have access, and the powers the inspectors may exercise. Prior to these amendments the sections 17, 18, 19, 20, 21, 22, 24 and 26 of the CTBT Act refer to access to and exercise of powers at particular premises. The amended provisions refer to premises in a clarification inspection area, since the latter may comprise multiple premises.

Item 38 – Section 27

67. This item omits the reference to a preliminary inspection in Section 27 as the concept of such an inspection is not applicable to on-site inspection under the CTBT.

Item 39 – Section 28

68. This item clarifies Section 28 by making clear that any modification to planning for Managed Access purposes should apply to any inspection plan, and not only an initial inspection plan.

Item 40, 41 – Subsection 41(1)

69. These items update terms used in Section 41 of the CTBT Act that refer to access to locations by inspectors. Prior to these amendments the section refers to access to premises which constitute an inspection site. The amended provisions refer to access to premises in an inspection area.


SCHEDULE 3 – Alternative Names

Chemical Weapons (Prohibition) Act 1994

Item 1 – At the end of section 86

70. Section 86 of the CWP Act provides for designation of an office within the Department or an agency for which the Minister is responsible, or of a statutory office established under legislation for which the Minister is responsible as Director of the Chemical Weapons Convention Office. This item provides that the Minister may, by notice in the Gazette, specify an alternative title to be used when referring to the position of Director.

Item 2 – At the end of section 88

71. Section 88 of the CWP Act provides for an office within which the position mentioned in section 86 is located to be designated the Chemical Weapons Convention Office - to function as Australia’s National Authority as defined in Article VII of the Chemical Weapons Convention. This item provides that the Minister may, by notice in the Gazette, specify an alternative name to be used when referring to that Office.

Comprehensive Nuclear Test-Ban Treaty Act 1998

Item 3 – At the end of section 62

72. Section 62 of the CTBT Act provides for designation of an agency for which the Minister is responsible, or a unit within such an agency or within the Minister’s Department, as the Australian Comprehensive Test Ban Office to, inter-alia, ensure the effective operation of the Act, and to exercise certain powers under it. This Office will function as Australia’s National Authority as defined in Article III of the CTBT. This item provides that the Minister may, by notice in the Gazette, specify an alternative name to be used when referring to that Office. The item provides further that notice of an alternative name may be incorporated with the notice to be made under section 62 of the Act to first designate the Office.

Item 4 – At the end of section 63

73. Section 63 of the CTBT Act provides for designation of a position within the agency or unit referred to in section 62 of the Act as Director of the Australian Comprehensive Test Ban Office. This item provides that the Minister may, by notice in the Gazette, specify an alternative title to be used when referring to the position of Director. The item provides further that notice of an alternative name may be incorporated with the notice to be made under section 63 of the Act to first designate the Director.

Nuclear (Non-Proliferation) Safeguards Act 1987

Item 5 – At the end of section 42

74. Section 42 of the Safeguards Act establishes the statutory position of Director of Safeguards. This item provides that the Minister may, by notice in the Gazette, specify an alternative title to be used when referring to the Director.

Item 6 – At the end of section 54

75. Section 54 of the Safeguards Act establishes the Australian Safeguards Office, consisting of the Director and staff required to assist the Director in carrying out or giving effect to the provisions of this Act. This item provides that the Minister may, by notice in the Gazette, specify an alternative name to be used when referring to that Office.

 


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