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Economics of a Mercenary Campaign

Originally posted by atpollard:
A 400 dTon ship with a few points of starship armor and 4 tripple turrets integrated with its unit would make a heck of a gun platform for support. Huey's eat your heart out.

Could that be added to the fee for the unit, like a tank or apc?
It should be added to the fees. In EA6, the unit is actually expected to use their Javelin Class Mercenary Unit and the fees in no way reflect the potential losses incurred if the ship were to take a hit.
 
One thing to consider here is that expendables used during the course of the job would be considered as part of the fee that should be negotiated in advance. Those multiple rocket launchers are all pretty devices until you press the button to launch them at the enemy. The problem isn't so much as an accounting action where the patron is required to pay in advance for everything, nor is the patron obligated to remunerate any losses of war per se. It is a business contract/agreement between the Mercenary unit's negotiator and the patron. If the unit needs to use an 800 dton broadsword in the contract up front, then it is likely the contract will include this in their fees up front. If on the other hand, it is not required, and the fee was not negotiated, you can be certain that the Leader of the unit is going to perform what is otherwise known as "risk assessment" and act accordingly. If using the asset will insure the survival of the unit or make it a certain proposition it will fulfill its contract, that's one thing. If on the other hand, there is a good chance that the asset would be lost AND the unit not be able to fulfill its contract, you can be certain that a tense drama laced moment will be endured as the order to use the asset is either not given (giving rise to disappointment and even fear) or directly countermanded by someone who controls the asset itself. The thinking would be "We can get more bodies easily enough, but we can't get another ship".

All things considered - being a mercenary captain/outfit owner requires that you assess what the risks are ahead of time, determine if you have the assets to perform the task without incurring a major loss, or bet on the whole affair as if it were a horserace with unknown horses. Those that bet as if it were a horserace, often fail and go bankrupt. Those who guess well enough and hedge their bets well enough to make what seems to be excessive profits, but in reality are hedging against failures and are survival margins when times are lean - survive. Those that not only succeed constantly, but make what seem to be obscene profits and also never need to dig into the "survival bank" margins - end up being wildly successful.

Trick is - which category does the "unit in question" fall under ;)
 
Originally posted by BetterThanLife:
</font><blockquote>quote:</font><hr />Originally posted by Employee 2-4601:
Ofcourse, a polity might subsidize merc units under certain conditions.
Absolutely. Though in this case are they also subsidizing the Inherent Transport?</font>[/QUOTE]If the polity would want a merc unit with legs, it would probably either subsidize a transport for it or arrangefor it to be carried on a subsidized merchant (or detached-duty scout for small commando or cadre outfits). It all boils down to what mission the polity has in mind for the merc outfit it subsidizes.
 
BTL:
This confused me, though that is easily accomplished. Did you mean that you could build a Jump 2 Subsidized Merchant? Wouldn't that be 44 tons? (Including the tanks.)
You missed the mention of the demountables. By using demountables for the second parsec, you don't drastically impair the on-mains performance. You only lose the 40 tons of cargo for fuel when you need to. Collapsables are better for travel, but can't be used for jump fuel, however, they to have a place. Demountables and drops ARE useable.
 
Originally posted by Aramis:
BTL:
</font><blockquote>quote:</font><hr />This confused me, though that is easily accomplished. Did you mean that you could build a Jump 2 Subsidized Merchant? Wouldn't that be 44 tons? (Including the tanks.)
You missed the mention of the demountables. By using demountables for the second parsec, you don't drastically impair the on-mains performance. You only lose the 40 tons of cargo for fuel when you need to. Collapsables are better for travel, but can't be used for jump fuel, however, they to have a place. Demountables and drops ARE useable. </font>[/QUOTE]I didn't miss it. I thought you did. You still need the 40 tons to actually go someplace. You have to plan the full load of the ship to be with the full fuel load, even though you could leave the tanks behind and travel a short distance without them. Filling the hold, planning on not using them is a bad idea.
 
Depends upon one's needs, BTL, depends upon one's needs. A subbie can make a good run of it on many different mains and clusters. Having the drive is nice, and under MT, DOES reduce your fuel costs for J1 (1/2 of 15%, for J2 is 7.5%, versus 10% for J1 on a J1 drive). There's no FUEL benefit under CT/T4/T20... but the flexibility to fill the hold when working a main IS a benefit to the subsidy owner.

No typo, no overlook... Type R's base carry is about 195 Td... and a company can move (in varying shades of easy) in 150. Which means you have room for the extra 40 Td of fuel to use the second parsec when moving troops.

Even light armor (5-6 Td light Tanks) company can load up in a 150 ton allotment.
 
i went over the 5 example tickets and extrapolated
up or down my platoon unit to fit ea. one.
All would be profitable and the pattern tends to be what i thought.
When DESIGNING the tickets your
gonna have to offer someone basiclly a dbl fee.
whatever the merc's expenses are X 2 to get any
kind of merc to take your offer.

I.E

if it costs him 1 million per operation to run it
your gonna have to offer 2 million for any kind
of merc to take it. that extra million would go
to the company and shares....the company end
would probably still get a redcution for ammo.
and it doesnt matter if transport is provided
for or not. if the ticket takes care of transport
then its not part of your expenses, if you provide
the transport its part of the expenses, end of
discussion.

from the merc side it would be very unwise
to take ANYTHING below a 50%+ profit per
expenses esp. if HE provides the transport.
you just run to great of risk at going red
over ammo and shares.


the 500k ticket in LBB4 would have to be run by
only a fireteam or 2 to provide any kind of profit.
if your expenses for your 2 teams is
gona be more the 250k for the operation i wouldnt
take it.

-----------------------------------------------
ammo seems to be a wildcard to me...but then thats
the idea with an RPG...can you get it done for less or not...

i'm baseing this on ammo for a SAS team video
that i saw where they (for 2-3 weeks?) ASSumed
they could get it done with 400-600 rounds per
man.
 
If you include Salaries in the expenses category then I was thinking about 1.5 to 2 times the expenses. Mostly because you are going to have down time between tickets. The issue is still a reasonable estimate on expenses.

Average firefight is a basic load of ammunition. (About 6-10 magazines for bullet launchers.) Basic Load for the typical Energy weapons is 2 packs, Laser rifle is one. Typical combat environment figure a basic load per day. For a lower threat area, figure half that. For a high threat situation, like take and hold a key piece of terrain, against serious resistance until relieved, figure twice that.(More in some extreme circumstances.)

Vehicles run about the same, A basic load being integral magazines in most cases. The exception that most energy weapon systems can run a good long time, as long as you keep them in fuel. You may have to park and charge the battery up, with some vehicles, between firefights, but there will be down time to do that. On the opposite end of the spectrum is the MRL's which will likely need to be reloaded 6-12 times a day.

As long as you are dealing with bullet launchers ammunition isn't all that expensive, (Especially when you buy in bulk.) but it will still add up.

I keep coming back, in my mind to arming Mercenary units with Laser rifles. Ammo is definitely cheaper, it doesn't appreciably weigh more, and short term it isn't that much more expensive. However it lacks any suppressive capability and it lacks the RAM Grenade launcher for light anti-armor work. Of course there is no high tech squad/platoon suppressive fire weapon in the bullet launcher variety either, in Traveller.
 
There's really no reason you can't have a rapid fire sqaud laser like a Heavy MG. Figure one to carry the gun and tripod, one to carry the powerfeed, and one to carry a couple extra energy packs. Grant it a reasonable ROF and use the Laser Rifle stats with autofire bonuses.

Unless you're thinking suppressive fire won't work because there's no readily available evidence that you're under heavy fire and no clear sign of just where the beaten zone is. That can be fixed by changing the laser frequency. Or if you're worried that they might then pop smoke you could have the laser fire a "tracer round" every cycle of x "rounds" so you fire through the smoke most of the time and the rest of the time they see they are still under fire.

Of course using visible laser fire has a nasty consequence of leaving a very accurate trace right back to your position


There's also no reason to not have a ruggedized Laser Rifle with an underslung grenade launcher. To make it more high-techy I've used small plasma grenades and an electromagnetic launcher.
 
With units working for a fee of double their expenses, the expression “solitary, nasty, short and brutish” sure seems to describe a mercenary life. I would expect to earn more than that just driving a truck across Iraq. Aren’t these units usually outnumbered and in harm’s way? What ever happened to the concept of “High Risk, High Gain” – where is the potential for high gain.

You need a sign that says “Will Kill For Food – God Bless”.
 
From the news desk:
Mercenary / Private Military Companies (PMCs)
The term mercenary is applied to a variety of historical situations which do not appear to have elements in common. Casca, the eternal mercenary, pulled the duty of nailing Christ to the Cross and was doomed to spend eternity as a soldier, a career that can lead to billets like sitting on five-gallon water cans in the cold desert wind on Christmas Eve in Saudi Arabia.

Estimates of the number of private international security personnel range from 15,000 to 20,000. That is as much as 15 percent of the total US presence of about 130,000 soldiers. These private contractors -- who most often work for corporations, diplomats, or journalists -- have no accountability to the US military. These private security contractors can earn up to $1,000 a day. NATO forces have used private soldiers for security in the Balkans. But the proportion of private security personnel to regular military soldiers was no greater than 10 percent.
How much is $1000 per day in credits?
 
Originally posted by far-trader:
There's really no reason you can't have a rapid fire sqaud laser like a Heavy MG. Figure one to carry the gun and tripod, one to carry the powerfeed, and one to carry a couple extra energy packs. Grant it a reasonable ROF and use the Laser Rifle stats with autofire bonuses.
These days a Squad Automatic Weapon is actually a one man weapon. With the fireteam carrying extra ammo. The Russian RPK, the British LSW, and the M249 being typical of the current genre. At Platoon level it is the General Purpose Machinegun. (Which is typically a 3 man crew, though one of them simply carries extra ammo and uses their individual weapon.) Either of them can be fired on the move if need be and neither needs a tripod, though the GPMG does generally have one. (And it is definitely better on a tripod.)


Unless you're thinking suppressive fire won't work because there's no readily available evidence that you're under heavy fire and no clear sign of just where the beaten zone is. That can be fixed by changing the laser frequency. Or if you're worried that they might then pop smoke you could have the laser fire a "tracer round" every cycle of x "rounds" so you fire through the smoke most of the time and the rest of the time they see they are still under fire.
That is definitely a concern. Machineguns put people's heads down by the noise and the collateral damage.
For example, going back to WWII. You are just as likely to get dead if a BAR or Bren Gun (about 7.62mm) was shooting at you as you would if a M2 (12.7mm) was firing at you. Even though there would be many more 30 caliber rounds flying around, (rate of fire of a typical 30 caliber machinegun was 2 to 3 times that of a 50 cal.) the .50 would put heads down faster. It is bigger, noisier and blows through light to medium cover like it isn't there. Psychologically, it is a nastier customer.

Getting fired on by a laser psychologically isn't as scary. (And you don't want nice straight lines showing where you are so I wouldn't go with visible light.
) Though how well suppressive fire would work in a vacuum with no noise is untested. I don't see it working as well as big noisy machineguns.

On the other side of a coin, a Sniper can suppress a unit with a handful of careful shots. There is something scary about the guy next to you suddenly getting killed without warning as well.

The objective of most suppressive fire, isn't to kill people, it is to put their heads down. Mostly so you can maneuver someone close enough to kill them, or so you can go around them. A weapon with no visible or auditory effect won't be as effective in that role.

Of course using visible laser fire has a nasty consequence of leaving a very accurate trace right back to your position


There's also no reason to not have a ruggedized Laser Rifle with an underslung grenade launcher. To make it more high-techy I've used small plasma grenades and an electromagnetic launcher.
I agree here but the RAM grenades were originally rifle grenades, not M203 style launchers. (Though IMTU they have always been M203 style.) There are no rules for this. (But then again we are working on a consensus for how to do this in the absence of rules.


I remember reading about a Gauss SAW in TNE. Does anyone have the stats for it? (And the TNE stats for a Gauss Rifle and an ACR for comparison sake.
)
 
Originally posted by atpollard:
With units working for a fee of double their expenses, the expression “solitary, nasty, short and brutish” sure seems to describe a mercenary life. I would expect to earn more than that just driving a truck across Iraq. Aren’t these units usually outnumbered and in harm’s way? What ever happened to the concept of “High Risk, High Gain” – where is the potential for high gain.

You need a sign that says “Will Kill For Food – God Bless”.
i guess i have to be more specific again... :(
i thought i implied that would be MINIMUM a dbl fee....
to get a better deal i'm sure is a given if your a savy ticket finder.....
 
Originally posted by sid6.7:
i guess i have to be more specific again... :(
i thought i implied that would be MINIMUM a dbl fee....
to get a better deal i'm sure is a given if your a savy ticket finder.....
I understand the point you were making and I agree. I was also just pointing out that that was a minimum and not a normal fee. Grocers charge a 100% mark up, they should pay you more when someone is trying to kill you.

I don't want you to think I was criticizing your comments.
 
Gents,

As usual, superb thread and excellent posts.

FWIW:

After tackling the economics issues for campaigns IMTU many years ago, I decided that many merc outfits were patrons of larger, more powerful, more wealthy organizations. For lack of a better term, they are 'owned' by someone else.

You've all parsed the numbers in this thread; transport, kit, heavy equipment, personnel, all of it. The money required adds up quickly. The 'buy-in' fee for even a platoon-sized outfit is substantial.

But what if someone helped with the 'check'?

IMTU, the larger a unit is and more equipment it owns, the better chance that someone has a 'string' on it. Just how substantial that 'string' is - first call on services, vetting prospective tickets, arranging tickets, arranging transport, limiting tickets within a certain region, etc. - depends on how much help the merc unit recieves.

Look at the OTU, we've got corporations of various sizes, noble families, world governments, national governments, ministries, even inviduals with loads of credits. Each and every one of them is either actively engaged in power politics or threatened by the same.

The canonical references are myriad. Al Morai keeps a flotilla of Gazelles. SuSAG is said to have substantial security services because of its business. Nobles are allowed huscarles. All of this costs money, so why not have those troopers earn a little money to help defray the cost?

The references in fiction are there too. Drake's 'Slammers' started out as 'foreign legion' of sorts for Freidland, a legion that mutinied and bugged out after winning the war Freidland recruited it for. Pournelle's Falkenberg was in reality a covert asset of the CoDo Fleet, a covert asset that occasionally had to fund itself but one that always kept its master's agenda in mind.

The references in real life exist too. During the heyday of the merc trade; 1960/70s Africa, most outfits were working for the US, USSR, or apartheid-era South Africa. There may have been many levels between the mercs and their ultimate paymasters, but the links were still there. That Biafran tommygunner was an independent, but the folks hiring him weren't.

IMTU, independent outfits like Broadsword are the exception and not the rule.

IMTU, most outfits exist as cadre and only 'bulk up' when a contract is signed. Many don't even flesh out completely until they reach the job!

IMTU, most independent outfits are light infantry. Specialized kit and heavy equipment costs money and money means 'strings'.

IMTU, looking at the classic LBB:4 tickets:

Striker Mission: Marastan - Definitely a 'strings' contract. It even states that LSP is providing the money for Clan Hardretter. You can bet the LSP district manager told the clan hetman exactly who to hire.

Commando: Poroszlo - Fighting between two blocs, one of which wants fewer restrictions on corporations? Got 'strings' written all over it.

Cadre: Aramis - Training a horde of militia and leading only two full-time infantry companies? Independents could have a chance here.

Security: Jokotre - Bodyguard work and could easily be an independent job.

Dream: Aramanx - Nothing but 'string' outfits here. Megacorp interest is mentioned explicitly.

YMMV.


Have fun,
Bill
 
Well Bill, Except for one minor little detail. It doesn't really matter who is funding the Mercenary Unit. In general a wealthy backer is required up front, one way or another, however wealthy people or Corporations, are not going to get into this without an expectation of Profit. Sure you might get someone occasionally that wants to own a Mercenary Unit for the sake of owning one, but the rule, not the exception, should be that they show a profit.

LBB4 stated that after expenses for an operation, the profits were divided in half. Half goes to the owners of the unit and the other half is divided as shares. While a long ranged thinker might think it is OK to not show a profit for 5 years, this isn't exactly a low risk investment. So it needs to start showing some kind of reasonable return with the first ticket.

Too many people think that rich patrons and governments have no problem with just shelling out money at a loss to fund Player Characters on one scheme or another. Just like bank loans for Starships, if there is no return then the money doesn't flow.

If Units are unstable, in general, then nobody will back them and their gear has to come from someplace. Can you have a rag tag band of ad hoc Mercs. Sure. But only someone desperate would hire them and they are definitely unlikely to be bankrolled. The Mercs hired in LBB4, 76 Patrons, Adventure 7, and EA 6 and EA 7, are professionals. The majority of them are standing units. In Traveller Mercenary units are generations old with long histories. Some will be newer, some will be ad hoc units, and some tickets will require multiple small units brought together to accomplish the mission.

To bankroll an endeavor such as this, where you are providing weapons and letting them go out and shoot at people and in return get your investment shot at, requires some serious convincing that the person or people you are backing are indeed the right person or people to lead the unit and have a solid business plan for it, to include a reasonable return on your investment.
 
All of the tickets in Book 4 are capable of generating a profit; in some cases, a substantial profit. Whether they actually do or not is largely in the hands of the referee.

The ticket as originally presented in Adventure 7 is potentially profitable. The situation on the ground presents the players with new challenges but also provides new opportunities. Given that the opposition is substantially different from what was indicated in the original contract, re-negotiation would seem a likely option. The Escort scenario, in particular, is arguably outside the scope of the original contract and could be negotiated as a separate ticket. These factors require interaction between the players and the referee.

Patron financing, client support in equipment, logistics and transportation, the size and nature of the opposition are major factors in determining the success and/or profitability of any given ticket. These fall within the responsibility of the referee.

If you're running a mercenary campaign, you need to craft tickets to suit the size and equipment of the unit in play and the style of game desired. Overall profit from a series of tickets is more important than a straight formula because it allows you to maintain control over the unit.
 
Originally posted by Piper:
All of the tickets in Book 4 are capable of generating a profit; in some cases, a substantial profit. Whether they actually do or not is largely in the hands of the referee.

The ticket as originally presented in Adventure 7 is potentially profitable. The situation on the ground presents the players with new challenges but also provides new opportunities. Given that the opposition is substantially different from what was indicated in the original contract, re-negotiation would seem a likely option. The Escort scenario, in particular, is arguably outside the scope of the original contract and could be negotiated as a separate ticket. These factors require interaction between the players and the referee.

Patron financing, client support in equipment, logistics and transportation, the size and nature of the opposition are major factors in determining the success and/or profitability of any given ticket. These fall within the responsibility of the referee.

If you're running a mercenary campaign, you need to craft tickets to suit the size and equipment of the unit in play and the style of game desired. Overall profit from a series of tickets is more important than a straight formula because it allows you to maintain control over the unit.
The Ticket in Adventure 7 has the most potential for profit. Yet as originally written, is the only canon ticket that pays that well. Further it has serious potential for loss. If the cutters are deployed in support of the unit, then damage to one of them, given the actual vs. perceived threat, is clearly possible, will quickly run the ticket well into the loss column.

Using the Broadsword in Naval combat, is definitely not covered in the ticket, and could run the entire ticket so far into the loss column that the unit could never recover. (Just a couple of points of damage to the powerplant, loss of a couple of laser turrets and you are losing more than twice what the ticket pays.)

LBB4 tickets, have potential for profit. (I never said they didn't.) However looking at the company tickets. The commando company has the best potential for serious profit. (Especially since it is a light force where the Patron is supplying transport in, which implies little to no vehicles.) However attacking an Air Cav Company, with a Company, then holding the ground with light forces against the balance of the Air Cav Battalion and counter attacks from Mechanized forces in Battalion Strength means that a light force is unlikely to survive to spend the money. (Especially without Artillery or Air Support.) The backers would be happy though, less people to pay.

In a light commando company the only real assets that the unit has is the people and you will lose lots of them. (It feels like Operation Market Garden and the opposition in that mission couldn't mount this kind of strength to retake the bridges.)

This ticket is actually likely to pay no more than the ticket in Adventure 7 and that is for a Platoon.

The Security Mission while again you have no heavy equipment to lose. Doesn't pay all that well but can make a profit. However it doesn't actually define success, which for a success only ticket is kind of rough. What percentage of breakage are you allowed among the ruling Junta? What Percentage of breakage among the family members? (Yes it is the Referee's job to make that determination.) Does success mean you don't lose any of them? (And what does that say about the success value of the complementary ticket in 76 Patrons?) The Platoon attacking the convoy gets paid 3 times the Company that is tasked to protect it.

"The Dream Ticket" isn't even close to covering probable expenditures. It looks good at first glance, after all MCr30 in equipment up front, looks impressive. However this is a ticket for a "Heavily Reinforced Mechanized Battalion." With organic Armor, Air, Commando, and Artillery support which is on point for the heavily outnumbered local army.

MCr30 is what, 2-3 tanks, a pair of fighters? A Mech Infantry Battalion, is at least 30 APCs. Cheap (And if you are actually expecting to take fire in them, buy cheap, get cheap) TL9-10 APC's run more MCr1+ each. This ticket calls for 60+ Armored vehicles just to accept it.

Writing off 4 tanks is the entire ticket amount. Failing to act aggressively, scattered across the battlefield and putting your tanks in harms way means that the indigenous army will get overwhelmed and your side loses. Did I mention that it was Success Only? You see potential for huge profit, I see more potential for significant losses well in excess of the paycheck, and I don't see the Ticket covering the probable expenses of the unit even if their side wins.

Further a Mech BN of this nature is a specialized unit that really can only operate on nice hospitable worlds. So even if you make a profit on this ticket, then what? You certainly can't make a profit recruiting, training and equipping this unit then disbanding it. (Providing you actually have time to build, equip and train the unit before the war is scheduled to start.)
 
The referee bears the responsibility for determining the level of opposition and client support. For the sake of brevity, I'll use one example with the understanding that the same process can be applied to any ticket.

Originally posted by BetterThanLife:
LBB4 tickets, have potential for profit. (I never said they didn't.) However looking at the company tickets. The commando company has the best potential for serious profit. (Especially since it is a light force where the Patron is supplying transport in, which implies little to no vehicles.) However attacking an Air Cav Company, with a Company, then holding the ground with light forces against the balance of the Air Cav Battalion and counter attacks from Mechanized forces in Battalion Strength means that a light force is unlikely to survive to spend the money.
Here's a different set of assumptions:
The camp is to be seized by an airmobile coup-de-main. The client is willing to provide a number of air/rafts, several of which are armed with autocannons and tac missiles. A point defense sled mounting a VRF Gauss gun is provided for artillery defense. The 10% bonus for returned equipment applies to these so the potential for additional profit is not insignificant.

The bulk of the defending air cavalry battalion will be cut off by the striker incursion and is not expected to be a factor.

The most likely force for the mechanized counter-attack is a battalion of "People's Revolutionary Guards". The officer corp of this unit was heavily purged after the coup, and the new officers were selected for loyalty to the coup rather than tactical ability. The intelligence assessment indicates that morale is low and as much as 20 to 25% of their vehicles may be deadlined due to shoddy maintenance.

The majority of their vehicles are BTR-60 style wheeled APC's. One company is equipped with more modern IFV's.

The approaches to the camp are heavily wooded and steep. Only two roads access the camp. One crosses a ravine over a bridge which can be destroyed. The other road passes through several gorges and switchbacks allowing numerous places for anti-armor ambush.

The client has provided demolitions equipment (also available in bulk at the mining camp) and a number of TL10 mines which are difficult to detect. The counter-attacking battalion has only limited engineering support.

Where you see Arnhem, someone else can see Pegasus bridge.
 
Piper,
An interesting set of assumptions. (Though not as described in the ticket.) And like I said of the LBB4 tickets, that one has the most potential for a reasonable rate of return. (Of course using a light Company to hold a position against Battalion Level Mechanized Counter Attacks (Which doesn't sound like one Battalion attacking a platoon or a company at a time.) I can see someone claiming that the Air Cav Battalion that is supposedly based there is grounded because of Local Air Superiority, but even that is a bit far fetched. They will want their base of operations back, though they are likely to straggle in. (And since they know the terrain, they are at least as dangerous as getting counterattacked by Mech Battalions. It could be done but like the Battle of Serenity Valley, or Arhnem there won't be lots of people walking out afterwards.

The only other one with real potential for making a decent profit is the Battalion striker Mission. But that would depend on the level of armor support the Battalion is going to field. (And MCr30 is only 2-3 tanks.)

The Dream Ticket is nothing of the sort. And the Escort Mission is is poorly defined and low pay for a comoany that if they lose one member of the government, the Patron might decide to declare the mission a failure.
 
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