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Thomson-CSF


Thomson-CSF was a French multinational corporation specializing in professional electronics and defense systems, formed in 1968 through the merger of the professional electronics division of Thomson-Brandt and Compagnie Générale de Télégraphie sans Fil (CSF).
CSF, established in 1918, had pioneered advancements in broadcasting and wireless telegraphy, while Thomson-Brandt traced its roots to the Compagnie Française Thomson-Houston founded in 1893 for electrical equipment production.
The company focused on high-technology sectors including radar, telecommunications, aeronautics avionics, semiconductors, and medical imaging, with defense and aeronautics comprising about 70% of its revenue.
Following by the in 1982, Thomson-CSF pursued international expansion through strategic acquisitions, such as ' electronics division in 1989, and developed key systems like advanced for , establishing dominance as the leading non-U.S. supplier in that domain.
It contributed significantly to military applications, including the Cyrano IV for and short-range systems like Crotale NG.
In December 2000, amid restructuring to emphasize core competencies, Thomson-CSF rebranded as , named after the philosopher, to integrate its operations across , , and technologies.

Origins and Formation

Predecessor Companies

The Compagnie Française Thomson-Houston (CFTH) was established in 1893 in as the French partner to the American , which had been formed from the merger of Thomson Electric and Edison's interests and later integrated into . Initially focused on manufacturing electrical equipment such as generators, motors, and tramway systems, CFTH expanded into early radio technologies by the , producing consumer radios and laying groundwork for electronics applications. In parallel, the Compagnie générale de la télégraphie sans fil (CSF) was founded in 1918 by engineer Émile Girardeau to develop systems, capitalizing on post-World War I demand for radio communications. CSF specialized in vacuum tubes, transmitters, and early radar precursors, contributing significantly to French defense electronics during the and , including shipboard radio installations and signal intelligence equipment. Both firms evolved under increasing French state oversight in the mid-20th century, reflecting government efforts to consolidate strategic industries amid and technological competition. In 1966, CFTH merged with the armaments firm Hotchkiss-Brandt, forming Thomson-Brandt and reorienting toward diversified while retaining state-influenced operations. This positioned the electronics divisions of these entities for their subsequent integration, with CSF maintaining focus on high-frequency and defense-oriented innovations independent of consumer markets until the late 1960s.

1968 Merger and Initial Structure

In 1968, the professional division of Thomson-Brandt merged with the Compagnie Générale de Télégraphie Sans Fil (CSF), a pioneer in and technologies founded in 1918, to form Thomson-CSF as a consolidated entity focused on and professional applications. The directed this merger to unify fragmented capabilities in high-technology sectors, enhancing in military amid post-colonial and European security challenges. This strategic consolidation addressed the need for a single, robust player capable of developing advanced systems for , communications, and , reducing duplication and improving efficiency in state-funded projects. The initial structure emphasized integration of CSF's strengths in radio transmission, sonar, and early radar prototypes—such as contributions to airborne interception systems—with Thomson-Brandt's expertise in vacuum tubes, resistors, and nascent transistor components derived from its licensing agreements with General Electric. Organizational divisions were established around core professional electronics functions, including defense systems (radar and guidance), telecommunications infrastructure, and component manufacturing, with centralized research facilities to accelerate transistor-based innovations for military reliability. Government influence, through partial ownership in Thomson-Brandt and oversight of CSF's strategic assets, ensured alignment with defense priorities, such as upgrading transistorized equipment for French armed forces applications. Early post-merger efforts yielded prototypes in solid-state and subsystems, leveraging combined patents—over 10,000 from CSF alone—to prototype reliable circuits for harsh environments, positioning the entity for subsequent defense exports while maintaining focus on domestic military contracts. This foundation avoided over-reliance on consumer markets, prioritizing verifiable performance in empirical testing for hardware.

Growth and Operations

Expansion in Defense Electronics (1970s)

In the 1970s, Thomson-CSF scaled up production of and systems critical to , including the Cyrano IV for the fighter jet, which achieved initial operational capability with the Air Force in 1973. This expansion supported enhanced detection and targeting capabilities for intercept and ground-attack missions, aligning with France's emphasis on technological sovereignty in defense amid demands. systems for naval applications also saw increased output to equip and allied vessels, reinforcing NATO-compatible underwater surveillance. The company penetrated international markets through export contracts in and the , where the 1973 and oil crises amplified regional demand for advanced electronics. These deals, often bundled with Mirage aircraft sales, provided revenue streams that offset domestic pressures and countered U.S. dominance in exports by promoting French-designed systems. Internal hurdles, such as labor strikes across Thomson-CSF facilities in 1979-1980, temporarily hampered operations, yet were mitigated by sustained R&D commitments yielding progress in technologies for jamming and countermeasures. These advancements solidified the firm's role in France's independent ecosystem, prioritizing empirical enhancements over foreign dependencies.

Technological Diversification and Restructuring (1980s)

In the 1980s, Thomson-CSF initiated a comprehensive restructuring to address inefficiencies stemming from state control and to prepare for potential defense budget reductions amid shifting geopolitical dynamics at the Cold War's end. Under CEO Alain Gomez, appointed in 1984, the company divested non-core assets, including and operations between 1983 and 1987, allowing a sharper focus on high-margin defense electronics while critiquing bureaucratic hurdles that slowed decision-making relative to more agile private competitors. This refocus leveraged Thomson-CSF's strengths in and , where export sales—particularly to Middle Eastern clients—sustained revenue amid domestic constraints, though exact growth figures varied with contract cycles rather than uniform expansion. A pivotal element of this diversification was the merger of Thomson-CSF's division with Italy's SGS Microelettronica, creating SGS-Thomson Microelectronics (later ), which isolated civilian chip production from defense-specific technologies to foster independent scaling and global competitiveness. This separation enabled Thomson-CSF to retain proprietary components for military systems while allowing the to pursue broader markets, reducing vulnerability to defense-only fluctuations. Parallel technological advancements emphasized for applications, including (GaAs) integrated circuits developed in the early 1980s for high-speed data handling in and communications, enhancing performance amid expectations of post-Cold War fiscal pressures. These efforts represented a pragmatic integration of R&D into potentially adaptable civilian derivatives, such as advanced , though state oversight limited rapid pivots compared to rivals unburdened by national policy mandates. Overall, the restructuring positioned Thomson-CSF to compete internationally by prioritizing verifiable technological edges over subsidized breadth, despite persistent critiques of governmental interference eroding .

International Contracts and Acquisitions (1990s)

In , Thomson-CSF merged its division with that of the British firm to form Ferranti-Thomson Systems Ltd, a that strengthened its position in advanced underwater detection technologies for naval applications and export markets. This partnership built on the acquisition of Hollandse Signaalapparaten B.V. from , integrating Dutch expertise in naval and combat management systems to expand Thomson-CSF's European footprint amid post-Cold War defense restructuring. Concurrently, the company acquired the -based Link-Miles simulation and training business, enhancing its capabilities in flight and defense training systems for international clients. Key contracts underscored this global outreach, including a consortium deal with Italy's Selenia for upgrading German and radar systems, reflecting Thomson-CSF's role in NATO-aligned modernization efforts. The Spherion bow system achieved notable export success, with integrations on frigates and corvettes featuring hull-mounted and variable-depth variants, contributing to Thomson-CSF's leadership in ship-deployed sonars outside . These deals supported 's emphasis on strategic autonomy by fostering technology transfers within allied frameworks while retaining core control. By the late 1990s, Thomson-CSF extended into through a November 1999 with , establishing a 50-50 partnership focused on , naval systems, and air production in . This initiative, formalized ahead of the company's 1999 privatization, aligned with consolidation trends and generated high-tech manufacturing synergies, including dual-use innovations applicable to civilian sectors like . Such expansions diversified revenue streams and bolstered employment in specialized , countering domestic critiques of dependency by highlighting transferable technological advancements.

Products and Technologies

Radar and Sonar Systems

Thomson-CSF developed the of mobile ground-based primarily for air surveillance and defense applications, with models like the TRS-2215 providing long-range 3D detection capabilities. The TRS-2215, deployed in systems such as the Indian Air Force's PSM-33 upgrades by 1986, offered an extended detection range of 235 nautical miles and altitude tracking up to operational ceilings suitable for air defense networks. Earlier variants, including the TRS 22XX family introduced at the , emphasized mobility and integration into tactical environments for low-altitude threat detection. The TRS 2100 series, such as the TRS 2105/2106 under the G/S designation, focused on lightweight, high-performance ground-based surveillance for air defense, incorporating integrated control for tactical response. The TRS 3220 Pollux, a tracking variant, achieved an instrumented range of 30 kilometers (16 nautical miles) in operational tests, often paired with electro-optical sensors for enhanced accuracy in fire control roles. These systems demonstrated reliability in export applications, such as air defense integrations, though reports noted occasional delays in adapting to non-French platforms due to proprietary interfaces, as evidenced in multinational upgrades during the and . In sonar technologies, Thomson-CSF advanced underwater detection for , supplying active and passive systems to the . The DSUV-61, developed in the early 1970s for ballistic missile , underwent initial trials enabling passive detection of submerged threats, later evolving into towed variants like the DSUV-62 for extended-range surveillance. Systems such as the TSM 2233 Eledone combined active emission for target classification with passive listening modes, integrated into vessels including the Agosta-class for bow and flank operations. The DSUV 61B towed sonar (TASS) and DUUG 1 active warning systems equipped Redoutable-class SSBNs, providing very low-frequency passive detection critical for stealthy patrols. These sonars exhibited robust performance in naval exercises, with empirical data from deployments highlighting effective noise rejection in contested underwater environments, though integration with allied hulls occasionally required modifications to achieve full acoustic compatibility.

Avionics and Missile Guidance

Thomson-CSF developed critical components for combat aircraft, including fire-control s and inertial navigation systems that enabled precise targeting and flight control in the 2000. The RDM , a Doppler multimode system, supported air-to-air intercepts, ground attacks, and maritime strikes, with export variants integrated into Mirage 2000 fleets worldwide. Upgrades to the RDY in the Mirage 2000-5 provided multi-target tracking and detection ranges extending to 100 km, improving operational effectiveness in beyond-visual-range engagements. These systems relied on advanced derived from coherent pulse Doppler techniques, prioritizing detection accuracy over broader spectrum coverage to meet tactical demands. In the Rafale fighter, Thomson-CSF contributed to the , an early that handled simultaneous air-to-air and air-to-ground modes, marking a shift toward integrated for reduced pilot workload. Inertial units, often hybridized with GPS in upgraded configurations, delivered sub-30% cost savings relative to standalone inertial platforms while maintaining high reliability in GPS-denied environments. Such technologies underscored Thomson-CSF's emphasis on modular, upgradeable architectures, though development was predominantly funded by defense budgets, constraining diversification beyond state priorities. Thomson-CSF's missile guidance efforts focused on infrared seekers for short-range air-to-air weapons like the Magic series, engineered for extreme maneuverability with all-aspect acquisition and high-g turns exceeding 50g through optimized control surfaces and precursors. These systems integrated seamlessly with avionics for rapid lock-on and fire control, prioritizing kinematic performance over to counter agile threats. Export integrations, such as in UAE 2000s paired with compatible missiles, enhanced recipient nations' close-combat deterrence without reliance on long-range dependencies. While effective in trials, the heavy subsidization by government contracts highlighted vulnerabilities to policy shifts, yet proven field integrations affirmed causal links between precision guidance and mission success in real-world deployments.

Telecommunications and Consumer Electronics

Thomson-CSF expanded into through the production of backend telephony equipment starting in the 1970s, including switching systems such as the MT-20 and MT-25 lines, which supported modernization of networks via and stored-program control. These systems facilitated transitions from analog to exchanges, with components like magnetostrictive delay lines used in prototypes such as , enabling efficient handling of voice and data traffic in public switched networks. In 1976, Thomson-CSF acquired significant assets from international firms, bolstering its capacity for electronic stations amid France's push to upgrade . In broadcasting, the company manufactured professional equipment including television cameras compatible with the color standard, such as the TTV-1525B and TTV-1600 series, which supported 625-line 50 Hz or PAL formats for studio and field use. These cameras, developed from expertise in electro-optical components, were exported to -adopting countries and integrated for in broadcast chains. Thomson-CSF also produced shortwave radio transmitters like the TRE-2355, modular units for with rapid frequency agility across / bands. Consumer electronics efforts drew from the Thomson-Brandt merger heritage, encompassing electroacoustics and portable radios such as transistor models like the NP1741 AM band receiver, produced circa 1972 with six transistors for compact audio playback. Dual-use technologies from defense radar and signal processing informed civilian audio and TV components, enabling revenue diversification; however, post-1980s privatization pressures shifted focus toward mass-market production, drawing critiques for perceived quality erosion in consumer lines amid competitive global pressures.

Leadership and Governance

Key Presidents and Strategic Decisions

Alain Gomez served as chairman and CEO of Thomson S.A., the parent entity encompassing Thomson-CSF, from 1983 to 1997, succeeding in transforming the group from chronic losses—exceeding $275 million in 1982 alone—into a competitive powerhouse through aggressive and divestitures. Under his tenure, Gomez prioritized refocusing on core and high-tech sectors, shrinking bloated management layers and exiting unprofitable consumer diversifications to enhance operational efficiency. This approach aligned with efforts to preserve French technological sovereignty in amid rising global competition, though Gomez navigated constraints from , which often imposed political priorities over pure market-driven decisions.
President/CEOTenureKey Strategic Decisions and Outcomes
Alain Gomez (Thomson S.A., overseeing CSF)1983–1997Led radical restructuring post-nationalization, including 1987 merger of Thomson's semiconductors with Italy's SGS Microelettronica to form SGS-Thomson Microelectronics, creating a 50-50 for global chip market competitiveness while retaining French industrial control; drove revenue expansion, with Thomson-CSF defense sales reaching approximately $5.3 billion by 1990.
Gomez's strategies emphasized alliances to counter U.S. and dominance without fully ceding control, as evidenced by selective joint ventures that bolstered export capabilities in and . However, persistent state influence—stemming from 1982 under the Mitterrand government—frequently delayed agile responses to market shifts, contributing to risks of overexpansion in diversified segments before refocus. By the mid-1990s, these efforts yielded profitability, with Thomson-CSF reporting 364 million francs ($73.3 million) in first-half profits in 1995 after prior years of losses.

State Influence and Privatization Efforts

The French government exercised significant control over Thomson-CSF through majority ownership, holding a 58% stake via state-owned entities as of 1997, which facilitated prioritization of contracts serving national defense priorities over purely commercial considerations. This oversight extended to blocking foreign takeovers, such as the 1997 bid by Britain's GEC, citing security risks to maintain sovereignty in defense electronics. Post-privatization, the state retained a golden share granting veto rights on strategic decisions, underscoring ongoing influence despite ownership dilution. Privatization efforts intensified in the to address fiscal pressures and enhance efficiency, with the Juppé administration proposing in 1996 to divest the unprofitable entity for a nominal 1 , a plan rejected by the privatization commission amid concerns over undervaluation and national interests. By 1997, the Jospin government halted a full 58% stake sale, opting instead for into a French-centric , followed by partial in 1998 through share swaps with domestic firms like Alcatel and Dassault, reducing direct state control to minority levels while preserving indirect leverage. Amid these shifts, reforms under state stewardship aimed to curb bureaucratic excess, including nationalization-driven restructuring in that fostered inter-subsidiary cooperation agreements and operational streamlining to bolster competitiveness. Proponents of sustained involvement highlighted its role in securing technological independence and funding long-term R&D for , supported by empirical gains in during the decade. Critics, however, contended that governmental meddling perpetuated inefficiencies and delayed market responsiveness, as seen in Thomson-CSF's pre-privatization losses, arguing that reduced state dominance was essential for causal improvements in operational agility and profitability.

Taiwan Frigates Scandal

In 1991, Taiwan's Ministry of National Defense contracted French state-owned shipbuilder DCNS (now ) and electronics firm Thomson-CSF for the delivery of six Lafayette-class multi-role frigates, valued at approximately US$2.8 billion, to modernize the Republic of China Navy's surface fleet amid escalating military threats from the . Thomson-CSF supplied key subsystems, including , , and combat management systems, positioning the firm as a central player in the deal's technical and commercial aspects. The frigates, displacing around 3,200 tons each and armed with missiles, were intended to provide Taiwan with enhanced anti-submarine and capabilities, with deliveries completed between 1996 and 1997. Allegations of surfaced in the late , with former Foreign Minister claiming in 1998 that Thomson-CSF had paid commissions exceeding $500 million to influence Taiwanese and officials in securing the . Taiwanese investigations intensified from , uncovering of kickbacks funneled through intermediaries like local agent Andrew Wang, who managed Thomson-CSF's Taiwan office and was linked to suspicious bank transfers and subsequent suicides of implicated figures, including naval officers. Prosecutors alleged that up to $590 million in illicit payments—equivalent to about 20% of the value—were disbursed to secure approvals, involving shell companies and offshore accounts, though defenders of the , including some industry observers, have argued that such agent commissions are routine in opaque to navigate local political hurdles, even if formally illegal under laws post-2000. Legal proceedings spanned multiple jurisdictions. In Taiwan, the Navy filed a US$590 million damages suit against Thomson-CSF (by then Thales) in 2003, culminating in a 2010 Paris arbitration ruling that ordered Thales to repay over US$100 million in disputed commissions, affirming liability for improper payments. French courts convicted individuals like Dumas on related charges and, in 2011, fined Thales a record €500,000 (about US$700,000 at the time) for failing to prevent in the frigate sale, though critics noted the penalty's modesty relative to alleged sums, potentially reflecting prosecutorial focus on lapses rather than proving company-wide orchestration of . By 2021, partial of frozen kickback funds—estimated at US$520 million—advanced through bilateral talks, with Taiwan recovering portions held in accounts tied to the . No systemic by Thomson-CSF was conclusively established in rulings, as courts emphasized individual accountability and contractual irregularities over institutional conspiracy, amid broader debates on whether media amplification overstated graft versus the pragmatic necessities of arms in geopolitically sensitive sales.

South African Arms Deal Involvement

In December 1999, Thomson-CSF, as part of the German Frigate Consortium, secured a contract valued at approximately R5.473 billion to supply combat management systems and suites for four MEKO A-200 patrol corvettes under South Africa's Strategic Defence Package, a broader procurement totaling around R30 billion (equivalent to about $4.7 billion at the time) aimed at modernizing the post-apartheid South African National Defence Force. The deal included local partnerships, such as with African Defence Systems (ADS), a South African firm subcontracted for integration work, which facilitated technology transfer and industrial participation offsets projected to generate over 10,000 jobs through downstream manufacturing and skills development in the defense sector. Allegations of corruption surfaced shortly after, with claims that Thomson-CSF paid commissions exceeding R1 billion in bribes to influence decision-makers, including (ANC) figures like then-Deputy President , via intermediaries such as and his Nkobi Holdings. These stemmed primarily from a 2004 by Thomson-CSF executive Alain Thétard, revealed during Shaik's 2005 , detailing attempts to offer Zuma roughly €500,000 annually for political protection against investigations into prior deals. The Joint Investigation Report of 2001 and subsequent probes, including the 2011–2016 Arms Procurement Commission (Seriti Commission), examined these claims, though the latter controversially found no evidence of systemic graft in the corvette subsystem, a conclusion later partially overturned by courts in 2019 for failing to adequately address testimony on irregularities. Thomson-CSF maintained that all payments were legitimate advisory fees or offsets compliant with contract terms, denying direct bribery and emphasizing ADS's role in fulfilling goals through local content requirements that boosted South African industry. In legal outcomes, while parent company executives faced no convictions, South African subsidiaries and ADS directors pleaded guilty or were convicted on related and charges by 2011–2012, including of offset benefits; Thales (Thomson-CSF's successor post-2000 ) continues to contest broader liability in ongoing Zuma-linked trials, with no final parental culpability established despite persistent allegations. These offsets demonstrably created verifiable employment—e.g., via at local yards—countering narratives of pure waste by evidencing causal economic multipliers in a transitioning , though critics argue inflated costs undermined fiscal priorities.

Other Corruption Allegations and Investigations

In the mid-2000s, the Clearstream affair centered on allegations that fictitious bank accounts at the Luxembourg-based clearing house held slush funds from international arms deals, including commissions linked to Thomson-CSF's contracts. Investigations revealed that key dossiers listing accounts for French executives and politicians, purportedly tied to illicit payments, were largely fabricated by figures including Jean-Louis Gergorin and Imad Lahoud, with motives traced to political rivalry ahead of the 2007 presidential election. Courts convicted three individuals in 2010-2011 for in spreading false , influence peddling, and related offenses, but no broad evidence emerged of systemic corporate involvement beyond isolated claims, and higher-profile targets like were cleared. Critics, including trial observers, attributed the affair's amplification to efforts by opponents to discredit Sarkozy, highlighting gaps in verifiable financial trails despite initial media and judicial scrutiny. Separate probes in the U.S. and have examined Thales (Thomson-CSF's successor) for compliance and risks, typically resolving via fines without admissions of core operational faults. For example, authorities opened a 2016 investigation into suspected and in equipment sales to from 2007 to 2010, culminating in coordinated office searches across , the , and in June 2024, yet no convictions have been documented as of late 2024. In , probes into the multibillion-euro contract awarded in 2009 implicated Thales in potential via intermediaries tied to the scandal, prompting a 2025 Dutch court remit of an for further review of inadmissible in Brazilian proceedings, but without finalized corporate penalties. These cases underscore recurring scrutiny of state-influenced firms for agent commissions—practices argued by industry analysts as normalized for deal facilitation amid opaque foreign markets—though court records emphasize procedural lapses over proven causal links to . Ongoing U.K. Serious Fraud Office and French Parquet National Financier inquiries, announced in November 2024, target Thales for suspected in Asian contracts predating the Taiwan frigate resolution, with the company denying knowledge of violations and citing zero-tolerance policies; resolutions remain pending without evidence of business disruption. Such investigations reflect heightened regulatory focus on global defense exports post-2000s reforms, yet empirical outcomes—fines averaging under 1% of annual revenue in prior non-Taiwan cases—suggest limited systemic impact, contrasting claims of inherent risks in partially state-owned entities with defenses of competitive necessities in high-stakes sectors.

Transition and Legacy

Renaming to Thales Group

In December 2000, Thomson-CSF completed its rebranding to , a move prompted by the June 2000 acquisition of the British defence electronics company for approximately £1.2 billion, which expanded the firm's footprint in , , and communications systems. The name "Thales" drew from the philosopher , evoking foundational principles in science and innovation, while also acronymically incorporating elements from predecessor entities such as "TH" for Thomson-CSF, "AL" for Alcatel, and "ES" for associated electronics divisions. The French state maintained a of about 33% in the newly , preserving oversight of strategic assets amid partial efforts and ensuring alignment with imperatives. Core Thomson-CSF technologies in , optronics, and were retained intact, avoiding dilution of established expertise developed over decades. Immediately post-rebranding, the integration of Racal's operations facilitated initial revenue opportunities in and emerging markets, alongside the launch of the defense sector's first major France-U.S. for air defense systems, yielding early synergies estimated in the tens of millions of euros from combined procurement contracts. This positioned Thales for enhanced global competitiveness without immediate erosion of its French technological heritage.

Enduring Impact on Global Defense Industry

Thomson-CSF's advancements in defense electronics, particularly and systems, established a for by enabling indigenous development of critical technologies less dependent on U.S. or other external suppliers. For instance, the Cyrano IV , developed in the for all-weather , continues to operate in upgraded forms on aircraft like Mirage F1 variants, providing detection ranges up to 50 km despite limitations against low-altitude threats, as evidenced in ongoing military inventories as of 2025. This persistence in service underscores causal linkages from Thomson-CSF's innovations to sustained operational capabilities in and allied forces, where upgrades extend platform lifespans amid fiscal constraints on full replacements. Economically, Thomson-CSF's 1980s restructuring, including the merger of its division with SGS Microelettronica in 1987, spawned , which generated approximately $800 million in revenue by the late 1980s and evolved into Europe's leading firm, supporting high-tech and global exports in automotive, industrial, and defense applications. The defense electronics core transitioned into Thales in 2000, preserving export-oriented capabilities that bolstered France's balance-of-payments through sales of legacy-derived systems, contributing to a robust industrial ecosystem generating verifiable value in skilled jobs and . These legacies highlight Thomson-CSF's role in deterrence architectures essential for countering geopolitical threats, where empirical evidence from post-Cold War conflicts affirms the strategic necessity of maintained arms production capacities over reductions that could erode readiness. Scandals incurred financial and reputational costs, yet the net causal impact favors technological sovereignty, as underinvestment in such sectors—often critiqued through pacifist lenses—has historically correlated with vulnerability to aggressive adversaries, per analyses of . This foundation persists in upgraded platforms, affirming the industry's irreplaceable function in causal chains of .

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