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In bug #3646 I misunderstood the description of an error condition in section 4.14: The static context for an initializing expression includes all functions that are declared or imported anywhere in the Prolog, but it includes only those variables and namespaces that are declared or imported earlier in the Prolog than the variable that is being initialized. If an initializing expression cannot be evaluated because of a circularity (for example, it depends on a function that in turn depends on the value of the variable that is being initialized), a static error is raised [err:XQST0054]. I feel that the last sentance in the paragraph above should be given it's own paragraph, to avoid confusion arising from it's perceived association with the previous discussion on the static context for an initializing expression.
Marking this report as editorial.
John, I have accepted and implemented your editorial suggestion. Thanks! Don Chamberlin, Editor, XQuery spec.