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See bug #4065 against test case stZ073b. We allow xsi:type to reference one of the member types of a union even if the union has facets. This breaks substitutability. This has been fixed in 1.1 but remains a serious error in 1.0. Although the 1.1 solution would be too disruptive for an erratum, a possible fix would be to say that a member type of a union is not validly derived from the union type in the case where the union type has one or more facets.