This is a rush transcript from "Hannity," April 7, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: You're looking at the Minneapolis Convention Center in Minneapolis, Minnesota where tonight thousands of conservatives are rallying in support of the values to help the Republican Party take back control of the Congress in November.

Great Americans come together tonight all have a message for President Obama, Nancy Pelosi and Harry Reid. They want their country back.

This special edition of "Hannity" from Minneapolis is part of our Conservative Victory Tour. And it all coincides with the release of my brand-new book. It's the first book I've written in six years. It's called "Conservative Victory: Defeating Obama's Radical Agenda." Available in bookstores.

And right now I am joined by two people who are leading the way for conservatives, Minnesota Congresswoman Michele Bachmann.


HANNITY: And the headliner —


HANNITY: And the headliner of today's rally former Alaska governor and Fox News contributor, Governor Sarah Palin is here.


HANNITY: Good to see you. Wow. Welcome, Minneapolis, thank you for being here.


HANNITY: Alright. So I have to tell a funny story as we get started here. I'm interviewing Congresswoman Bachmann and I said to her — I said, Congresswoman, you know, you are the second most hated Republican woman in the country. We know who gets the most press. And she goes no, I would like to think of it as I'm the second most loved Republican woman in the country.


HANNITY: Well, it raises a question. Before we get started, it has been open season on both of you. You both have been outspoken and you've been in the public arena. Even your families have been attacked. You have been criticized for your looks, for your clothes, et cetera, et cetera.

And I'm just — how do you respond to that?

SARAH PALIN, FOX NEWS CONTRIBUTOR: Well, if it's open season us, we're not going to shy way from the message that we have that we need a smaller, smarter government back on the side of the people.

And we're going to certainly not retreat, we're going to reload and we're going to keep standing up for what we believe is right.

HANNITY: You know, and by the way, that term reload has gotten a lot of controversy. What you're saying is, is that it's time to win at the ballot box?

PALIN: Absolutely. It's a ginned up controversy I think by too many in the media making it sound like we're inciting violence. We are not. We want people to have their voices be — made known their arms are their votes this November. That's what we're talking about when we're getting people all riled up.

HANNITY: I think most people know except the media that is on a vendetta that seems to want to attack both of you.

Now, Nancy Pelosi, Congresswoman, has made you her number one target in terms of somebody in Congress that she wants to defeat. Tell us about that.

REP. MICHELE BACHMANN, R-MINN.: Well, I think part of that is because I've been very outspoken against the policies that she's put forward and all of these policies are ones that the American people are roundly disagreeing with and want to get rid of.

And so the more that you see the people here and across the country saying no to the Barack Obama agenda the more upset they are about that.

HANNITY: What do you think the reaction would be if things that were said about either of you were said about either Hillary Clinton or Michelle Obama or Nancy Pelosi? Would there be a difference?

BACHMANN: I think you'd see some alternative cable stations blow up. I think — I think they'd be very, very upset about that. We all know that there's a double standard.


PALIN: It just makes us work harder. It makes us, I think, produce — more produce better, help us articulate our positions even clearer. And that's fine. We're up to the challenge.

HANNITY: Right. If you think, for example, this crowd is the size of the crowd that we — that I saw when I was out on the road with you when you were running for vice president.

PALIN: Right. It's amazing.

HANNITY: Do you think — do you think this is in response to Barack Obama, to Congress, to corruption? How do you explain this?

PALIN: I think this is in response to so many Americans feeling that it is time that we take our country back. The last 18 months have been really tough on Americans. Tough on small businesses and on families. Desiring more freedom, desiring more opportunity for our children.

And this is in response to the opportunity that we have at this point to have our voice be heard. To support these candidates who will be in positions to cast the vote that we need to undo a lot of the things that Obama, Pelosi and Reid are doing to the country.

HANNITY: Congresswoman?

BACHMANN: I agree with everything the governor said. I would just add that I think people are recognizing we're losing something tremendously valuable. And it's happened in the last 18 months.

And people don't want to see our freedom run way but they also don't want to see our prosperity slip through our fingers. We can't have the government run private industry. It doesn't work.

HANNITY: And they're taking over a lot of things, the car companies.


HANNITY: We've gone through all of this. One of the things, and both of you are on the road a lot, and both of you do a lot of public speaking. What — the sentiment that I've gotten since I've been back out on the road is I've never seen people more concerned, more fearful, more anxious about the future of the country.

You know, Harry Reid said, we have transformed America forever. Is he right?

PALIN: Well, as I say, there's going to be a lot of attempts. There have to be attempts to undo a lot of that transformation that they have done to the country.

We were warned about this by candidate Obama. We shouldn't be surprised. He has said that we were just days away in the campaign from fundamentally transforming this country.

This country that so many of us love and do not want to see transformed in a way that they want to see. Steps toward insolvency, steps toward socialism with some of their programs. We don't want to see that transformation so there will be a lot of attempts to undo this.

HANNITY: Is this about Western European socialism? Is this an appeasement mentality the president has adopted, Congresswoman?

BACHMANN: Sure it is. And it's even more than that. This is the most radical president, the most radical speaker, the most radical Senate leader we have ever seen in the history of the country. And the American people are out-of-pocket rejecting everything that they're putting forward.

HANNITY: All right. Let me ask you this. Because we all —

BACHMANN: I think they agree.

HANNITY: I think they agree.


HANNITY: We watched the bribery, we watched the bullying. We watched the intimidation and all that it took to pass this health care bill which is a takeover of one-seventh of the American economy.

You have introduced the bill. You want to repeal the health care bill.

BACHMANN: That's right. Completely.

HANNITY: What is the status of it? And do you think that's doable or is it going to take a victory in November for that to happen?

BACHMANN: It will take a victory for that to happen. And I can't wait. The bill number is 4903. People can go to my Web site, MicheleBachmann.com, sign on to the petition, forward it to other people. We have so many members of Congress that have already signed on.

But what we need, Sean, is what your book is advocating. And that's a constitutional conservative majority in the House and the Senate this November, which I believe we are going to get.


BACHMANN: And then Barack Obama needs to be a one-term president. And then in 2012 we'll replace him with a constitutional conservative president.


HANNITY: One of the things, because you were out on the campaign, you took a lot of heat every time you post something on Facebook. I think you've got more hits on Facebook and more press from a blog that you write. Do you see any tendency in this president? Because he's now pushing cap-and-tax, amnesty.

He came out with a pretty radical plan — we'll get into on national security — in just the last two days.

PALIN: Right.

HANNITY: Do you see any hope that the president may learn from the — from the lesson from Bill Clinton, triangulate, moderate or is it not —

PALIN: No. No, I don't think it's within him. I don't think it's within his DNA. He would have already done that through Obamacare. He would have moderated a little bit and compromise. He did not do that.

In fact, there's been a lot of deception. There's been so many broken promises. There has not been that search towards middle ground. There's certainly been no bipartisanship that he had promised.

So, no, I do not have faith that that's where we're going to head with this administration.

HANNITY: Let me run through some of the things that happened in the past with this health care bill. Nancy Pelosi said we've got to pass the bill before we find without what's in the bill.

The head of the Rules Committee, Alcee Hastings, actually said there are no rules. We make them up as we go along. We've got Phil Hare, a United States congressman, says, I don't worry about the U.S. Constitution.

What's your reaction to that, Congresswoman?

BACHMANN: But also the president said he doesn't spend much time thinking about process. The American people spend a lot of time thinking about process. That's what the Constitution is all about.


BACHMANN: So I think we're seeing they made a huge mistake and they deeply under estimated the resolve of the American people.

HANNITY: Yes. Let me just do as a sample. Can you all hear me out there?


HANNITY: How many — how many people consider yourself part what is described as the Tea Party movement?


HANNITY: Pretty interesting. The Tea Party movement has been compared to the Klans. They've been called segregationists. This is just in the last week. They've been called violent.

Now a poll came out. It shows that 40 percent of people that identify themselves as Tea Party members are Democrats and independents.

PALIN: Right.

HANNITY: Is there a shift? Are we watching before our very eyes a shift in the electorate in this country?

PALIN: There are so many independents too — they're independent for a reason. They don't want to be caught up in a party machine. They don't want obsessive partisanship to get in the way of just doing what's right for this country. So, so many independents, yes, being part of this beautiful groundswell, this movement, that is telling government no, enough is enough. We're going to put you back on our side.

HANNITY: All right, Congresswoman, I'll give you a chance to respond to that when we get back.

This special edition of "Hannity" from the Minneapolis Convention Center continues. We have much more from Governor Sarah Palin and Congresswoman Michele Bachmann after the break.



HANNITY: And our 2010 Conservative Victory Tour continues tonight at the Minneapolis Convention Center, the site of today's massive campaign rally.

Minnesota Congresswoman Michele Bachmann, the event was headlined by former Alaska Governor Sarah Palin. And they are both joining me right now.

All right, I want to go back to what I was saying. I was asking Governor Palin about the Tea Party movement. And one of the questions is, do you — are you concerned that there might be a split in the conservative vote if there's a third-party movement among Tea Party members?

BACHMANN: Sure, but I don't see it. What I'm seeing is a tremendous unity. All of the Tea Party groups are actually coming together to unify with one message. The Tea Party is the new energy for the Republican Party.

And the Republican Party needs to figure out that this is where the American people are at. Join us for the Tea Party movement. That's the fuel that's going to —


BACHMANN: — for this election. And this is the new conservatism here in Minnesota. The state has gone longer for Democrat presidents than any other state but we are the new conservatives taking over Minnesota.


HANNITY: You know, it's interesting. I saw you when we were at the NRCC together. What I kept saying, Governor Palin, is Ronald Reagan talked about a new Republican Party. No pale pastels but bold colors. And I kept saying there needs to be a new conservative Republican Party.

PALIN: Oh, this is it, baby.

HANNITY: Are you confident that it is what is emerging? Is there — is that the movement you see as you travel the country?

PALIN: Yes, I sure do. And I think a lot of Republicans are realizing, too. You know we who have been frustrated by some of the party machine, we're realizing we never left the Republican Party. The Republican Party kind of left us. So now we're bringing that back.

The Tea Party is the movement, though, that is bringing back the values, the principles, the core common sense conservative values that the Republican Party needs to stand on.

HANNITY: It's interesting — what are the main items? Because I don't think is complicated. I thought Reagan left a good model. I thought the Contract with America was a great model. And that is very simply, that they're party of balanced budgets, fiscal responsibility, national security, energy independence.

PALIN: Absolutely.

HANNITY: You know, strong national defense. You don't negotiate without preconditions with a mad man who calls you an amateur.

PALIN: Right.

HANNITY: Which I'll get into in a minute. Is it any more complicated than that?

PALIN: It's not more complicated — those are the time tested truths that built this foundation that allowed America to be the most prosperous, most voluntarily generous, safest nation on this earth. The exceptional nation that we are. Those are the time tested truths. We need to get back to that.


BACHMANN: I think the other thing is don't spend money that we don't have. That's been the big story of the last year. Spending way too much money, putting us in deficits we can never hope to dig out of. People have had enough. Don't spend more than what you take in.

HANNITY: What do you think — what are the odds because I've spoken to a lot of people. For example, Karl Rove who I admire a lot and I think he's one of the greatest political analysts. He knows every district in the country.

He doesn't think the Republicans are there yet. That they don't have the votes to take back the House. They don't have the votes to take back the Senate. Are people underestimating the enthusiasm of crowds like this here today in Minneapolis?

PALIN: I think there's an underestimation —


PALIN: I think this is indicative of what is coming in November. I think that there will be that sweeping of change and you will see that takeover, if you will, a positive, a good valuable takeover of common sense conservatives back in Congress.

HANNITY: And that raises the next question. For example, you — as we mentioned earlier you have this bill to repeal the health care bill.

BACHMANN: Obamacare.

HANNITY: OK. So let's just assume for a minute that conservatives Republicans take back the House of Representatives, maybe not the Senate, maybe the Senate. What can you do specifically? And what do you think can be accomplished to stop the move to socialism, the weakening of our national defense? What do you think can actually happen?

BACHMANN: Number one, we starve the beast of Obamacare. We don't fund Obamacare. And we don't fund any of the initiatives that the president —


BACHMANN: From there we tell the truth about what's in the bill. The more we tell the truth to the American people the more they're going to recognize we must repeal that bill in February of 2013. I think we will.

HANNITY: And you could — what is the ramification if there's not a conservative victory? Last year the president quadrupled the largest deficit that President Bush had, he quadrupled it in a year. $1.43 trillion.


HANNITY: This year it's $1.6 trillion deficits as far as the eye can see. What are the consequences if we don't start pulling our belt tight which is an issue you dealt with as governor?

PALIN: We will obviously become an insolvent nation. And we will be beholden to foreign countries. We will be less free. We will be less secure. That is why it's imperative that we send those people back to Congress who can stand up and fight what Obama, Pelosi and Reid, what that agenda is doing to this country.


BACHMANN: We're looking at certain bankruptcy and certain economic collapse if we don't get our House in order. Within 10 years leading economists tell us the United States will essentially be in the same position as Greece. The United States of America.

PALIN: Now and let me remind you, Sean, too, when we talk like this, when we talk like this, you know that lame stream media, they will get wee-weed up about this. Their heads will spin and they will tell people that we are fear mongers, that we are exaggerating the State of the Union. And yet this is reality.

We cannot keep going down the path that we are going today and expect that it's all just going to magically happen, it's all going to magically cure itself.

HANNITY: Look, you said this earlier, I've been saying this anywhere — to anybody that will listen, radio, television and elsewhere. Barack Obama has already failed as president. Barack Obama is — he's taken a sledgehammer to our children and grandchildren's piggy bank. He's bankrupting the country. When America risks its AAA bond rating.

BACHMANN: That's right. That's right.

HANNITY: Because we're borrowing so much money.

BACHMANN: That's a huge issue right now. And that's happening to country after country across the world. And now to think it could happen to the United States. California is already in worse shape than Greece is. So that's an indicator of where the nation is going.

HANNITY: All right.

BACHMANN: We can't do it.

HANNITY: We got to take a break. When we come back, apparently Ahmadinejad had not some kind words to say about the president. We'll get to that when we come back. We have much more with Governor Palin and Congresswoman Michele Bachmann.


HANNITY: And welcome back to the special edition of "Hannity." We are from Minneapolis Convention Center. This is the latest stop on our 2010 Conservative Victory Tour. And I continue to be joined by former Alaska governor, Fox News contributor, Sarah Palin, and Minnesota Congresswoman Michele Bachmann.

All right, so apparently the administration on national security — my fear is we've talked a lot about the economy and the dangers of the president's socialist policies and take over of health care and record deficits. But the president apparently now is going out there and — report out today that there's no such thing as radical extremism.

And the president is saying that if there is a biological, chemical attack against the United States of America or any type of cyber attack, major cyber attack, if it is a country that is part of nonproliferation treaty, that America has taken nuclear weapons off the table.

Your reaction to that?

PALIN: It's unbelievable. Unbelievable. No administration in America's history would, I think, ever have considered such a step that we just found out that President Obama is supporting today.

You know that's kind of like getting out there on the playground a bunch of kids ready to fight and one of the kids saying go ahead, punch me in the face and I'm not going to retaliate. Go ahead and do what you want to with me.

No, it is unacceptable. This is another thing that the American public, the more that they find out what is a part of his agenda they're going to rise up and they're going to say no more.

National defense, national security is the number one job of the federal government.


HANNITY: I agree and the crowd obviously agrees. But from early on in his administration, he said — and you wrote about this. Man-caused disasters, overseas contingency operations.

PALIN: Right.

HANNITY: I am having a hard time wrapping my arms around the fact that this president doesn't acknowledge that radical extremists, Islamic extremists exist. The very people that killed people that I graduated high school with back in 2001.

What is he thinking? I mean what is the mentality? Where does this come from?

PALIN: I don't know but we miss Ronald Reagan who used to say when he would look at our enemies and say, no, you lose, we win.


PALIN: That is what we miss. And that is what we have to get back to.

Michele, you're going to be dealing with what it is that President Obama is doing to us via some laws.

HANNITY: What is your reaction to this news?

BACHMANN: Well, you can't apply political correctness just to terminology and think that somehow terrorism is going to go away. It isn't. We need to be adults about terrorism and adults about keeping the American people safe.

And so if you think, here we have rogue nations and if they comply with some bureaucratic rules with an international body then it's OK if they attack the United States with chemical or biological weapons? Then we're already agreeing we're not going to use nuclear weapons against them?

It's an insane policy and it's ridiculous.

HANNITY: All right.

BACHMANN: And morally reprehensible.

HANNITY: But here's the situation that's unfolding on the world scene right now. It was interesting. Rudy Giuliani I thought had a good line, he said the only two people that President Obama won't take a picture with is the Dalai Lama and Benjamin Netanyahu.

BACHMANN: And Benjamin Netanyahu. That's right.

HANNITY: But yet he thinks that we can negotiate with Iran without preconditions. He said Iran has a right to nuclear power and he envisions a world without nuclear weapons.

PALIN: Right. Well, that is so perplexing. We are kind of dissing our friends. Israel in this case. And we are kowtowing, bowing and we are coddling those who are not our friends. And — no, that is a scary place for us to be.

It's also a slap in the face to our men and women serving in uniforms today and have served our country in the past. Those willing to lay down their lives for our security, for our freedom.


PALIN: They want to know that all options are on the table. They want to know that the resources, that the strategies are there for them to keep us safe, to be victorious.

HANNITY: Is it that the president doesn't understand or have the moral clarity that say, as you mentioned Ronald Reagan had or that George Bush had, that there's good in the world and that there's evil in the world.

And if people think that they're doing God's work and God's will and that virgins await them in heaven when they kill innocent Americans, does the president lack that moral authority? He called America arrogant. He went on an apology tour.

What do you — where would this just come from?

BACHMANN: Well, I think he's dreaming of a world that he wishes would exist. But what we have to deal with is a world that is. We're probably a more dangerous world than we have ever been before.

Nuclear weapons are more portable than they've been before and can be used in a more vindictive manner. This is the time when we need to be on red hot alert, five alarm alert. And instead of pulling back and taking our weapons off the table, we need to gear up and tell these rogue nations —


BACHMANN: — you better watch out for us, because what's worked in the past for the last 50 years to keep western Europe safe, telling the Soviets, for instance, that we're going to be there to defend if you come in with tanks, that has worked for 50 years. Why change a winning formula.

HANNITY: But it was interesting, too, in the First Gulf War when James Baker went over to Iraq and said if you use chemical weapons against our troops, all options are on the table.

PALIN: Amen.

HANNITY: Saddam Hussein did not use chemical weapons against our troops.

BACHMANN: That's right. And it worked.

PALIN: It is a deterrent.

HANNITY: It is a deterrent.

PALIN: Obviously it is. And I bet you if you ask the majority of Americans they too want to know that all options are on the table.


PALIN: Our federal government will do all they can to keep us safe, to protect our men and women —

HANNITY: I think you just asked the majority of Americans because they're here.


HANNITY: Very well said. It is funny. Because during the campaign, remember Barack Obama said if they bring a knife, we'll bring a gun. Now talk radio is assailed, Fox News is attacked. He said argue with your neighbors, get in their face.

He doesn't seem to have the willingness to get in the face of a guy that threatens to wipe Israel off the map. Adolph Ahmadinejad, a guy that is seeking nuclear power and nuclear weapons or North Korea.

Why do you think the president is so timid when it comes to some of these world dictators?

BACHMANN: I think it's a part of his world view that he's adopted when it comes to foreign policy. It's like everyone is one. He's looking at a transnational view of the world, where American sovereignty seems to be ceded to a transnational authority. It doesn't work that way in reality.

And so it's like it's imaginary thinking. He's engaged in fantasy economics for 18 months. This is fantasy national policy for national security, and it doesn't work. And it's putting our interests at risk.

HANNITY: We're going to take a break. When we come back, we have more with Governor Palin and Congresswoman Michele Bachmann.


HANNITY: And welcome back to this very special edition of "Hannity." We are in Minneapolis tonight, our latest stop on our 2010 Conservative Victory Tour. And I continue to be joined tonight by the two most talked- about conservative women in America today, Governor Sarah Palin and Congresswoman Michele Bachmann.

All right. Governor, let me ask you, there's been talk, for example, that there is a split within the Republican Party and you and Michael Steele. Is there any truth to that?

PALIN: I support Michael Steele. I am glad that he is the leader of the party, administratively. And, you know, if those within the party are choosing to go a different direction, his term is up in a number of months, and they can vote somebody else in. But I think he's doing a great job.

Michael Steele is an outsider. The machine is tough, I think, to penetrate. I know that Michele and I both have kind of felt that in our careers. And I think it's been good to have an independent outsider kind of create some change in the Republican Party.

HANNITY: Certainly, it has turned Virginia, New Jersey, Massachusetts, right?

PALIN: Yes, yes. Yes.

HANNITY: That showed lot of success.

BACHMANN: And Minnesota. And Minnesota.

HANNITY: By the way, I know you said earlier one term — one term for President Obama. What about one term for Al Franken? Is that — can I mention that?


BACHMANN: There's his constituents.

We're the longest-voting Democrat state this country for a Democrat president. I think in 2012, Minnesota will go Republican for a presidential candidate.


HANNITY: Let me ask you this. One of the things I think that really scared a lot of people during the health care debate was, you know, the shredding of the Constitution, is a term that I use, you know, pushing aside the rule of law.

One of the things I'm very concerned about. Have Americans been conditioned by their government to look to the government for the answer? Cradle to grave, womb to the tomb?

PALIN: That is — that is the desire of the left. But no, when you're in a place like this, when you're out across our country, in the cities and the small towns in the U.S., realizing that people still have the independent pioneering spirit, not looking to government for a handout, then you can have that hope. You can understand that there is great hope, and there's hope via these congresspersons who pass the votes in that direction.

HANNITY: This is — this is one of the big battles. Because Democrats are making a lot of promises.

Now, there was an article, the front headline of Drudge today, that people actually, because of the debate, they were calling insurance companies, and they were calling their politicians and calling their state offices: "Where do I get my free health care? Where do I sign up?"

Is that — well, first of all was that because of the lame stream media, to quote Governor Palin, or is that because people believed the president that they were going to get something for free?

BACHMANN: Well, sure, he's made a lot of promises of what things that people are going to get that will be, quote, free. But we all know it's not free. And the overwhelming number of people as Governor Palin has said, they recognize that his fantasy economics don't work. You can't promise something for nothing and think that it's going to work out. And it's simply not working out in our economy.

PALIN: And he steps towards this utopia that he would like to create for — for America, what it does is it erodes the work ethic, the entrepreneurial spirit in this country. And that, too, is why we have to fight so hard to make sure we have persons in these positions to cast the votes to undo what it is that he does want to create.

HANNITY: See the thing, I guess, that I fear is when I look at my grandparents that came here from Ireland. They didn't have any money. They didn't have a safety net. They had no guarantee of health care or anything, but they wanted to live in freedom.

My father grew up really poor, and he worked really hard, and he fought in World War II, and he built a better life because of his grandfather. I kind of look at it that I stand on their shoulders. It seems to me that, if government creates this dependency, that we will never — that people will be disappointed, and they will — they will give up their liberty and their freedom in the process.

Is that what the debate is sort of coming down to, the no pale pastels, the bold differences between the two parties?

PALIN: I think that's what it's coming down to. And again, there is great hope being in a place like this where you can just feel it in air that people are saying no more to that kind of government.


BACHMANN: It's true. And I think the other thing we are seeing is that the American people no longer blindly trust their politicians. That's a very good thing, because they found out they've been had by the politicians that they elected. And they're saying, "No dice, Buddy. We're taking our country back." And that's why this is so exciting because we are!

HANNITY: Listen, what do you — I want to ask this last question for both of them. And I want your reaction in the crowd. Are either one of you considering a run for the presidency in 2012?


Just asking. Governor Palin, I'll start — I'll start with you. How about right — before I get their answers, how many of would you like to see a Palin- Bachmann ticket?


PALIN: Well that sounds kind of cool. That sounds kind of cool.

HANNITY: Governor Palin, are you thinking about a run again?

PALIN: As I have said, I'm not going to close any doors that perhaps would be open. Michele and I both, we have strong faith that we, fighting as hard as we can for our country and supporting those who share our values, share our principles and, at the same time, putting our lives in God's hands and asking him for direction —

HANNITY: Congresswoman?

BACHMANN: Well, I just — I want to thank Governor Palin for breaking the barrier by being a woman as a vice president on the ticket. She did a wonderful job, I think, as the vice presidential candidate. And I think the world is her oyster. If she wants to run, I think that she has tremendous support from the American people.

HANNITY: All right. Well, I'm going to say goodbye to both of you. Congresswoman Michele Bachmann, Governor Palin, thank you both for being here.


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