xml:base and fragments

A (somewhat Talmudic) discussion on the TEI mailing list (https://listserv.brown.edu/archives/cgi-bin/wa?A0=tei-l) regarding xml:base has come to a conclusion I want to run by XML-DEV readers.

TEI defines some XML attributes as RFC 3986-compliant URIs that fully honor xml:base.

The question is whether a value in this attribute of the form #fragment refers to an XML element in the document that contains the attribute or to a location specified by xml:base.

The (almost) consensus is that to resolve such a standalone fragment, xml:base values should be ignored.

In this excerpt from example.xml

  <div xml:base="http://www.dictionary.com/a.html">
    <p>
      <ref target="#apple">Apple</ref>
    </p>
  </div>

does #apple refer to an element in example.xml that has id="apple" or to http://www.dictionary.com/a.html#apple?

The first, right?

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