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Reported speech is handled in the XTAG grammar by having the reporting
clause adjoin into the quote. Thus, the reporting clause is an
auxiliary tree, anchored by the reporting verb. See [#!doran-diss!#]
for details of the analysis. There are trees in both the Tnx0Vs1 and
Tnx0nx1s2 families to handle reporting clauses which precede, follow
and come in the middle of the quote.
XTAG Project
http://www.cis.upenn.edu/~xtag