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<i> Arts and entertainment reports from The Times, national and international news services and the nation's press</i>

Woody Allen may think that director David Lynch’s “Blue Velvet” was the best picture of 1986, but it is not a candidate for the Oscar in that category. Allen, director of “Hannah and Her Sisters,” said in Tuesday’s Morning Report that he “just liked everything” about Lynch’s film. Allen and Lynch are competing in the best director category.

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