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The change to the SDK to treat project refs as transitive has been merged in. SDK build 20161221-2 has the changes. You are unblocked on this now. When you have this change let me know and we can insert that CLI into VS to unblock @333fred from working on dotnet/project-system#734
Once dotnet/project-system#199 is implemented, we should stop raising the closure of a project references to the top level.
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