and lower HR$_1$. The flare state was interpreted by Belloni et al. (1997a) as oscillations between the other two, not as a separate state. An example of this is shown in Fig. 5, where the CD and HID for a “flaring” interval of the same observation are shown. It is evident that, although the high-flux points (state B, circles) are indeed located in roughly the same region of the CD as before, the low-flux points (state C, squares) are considerably softer than those from the long state intervals in Fig. 4). From their analysis of observation K-33-00, Belloni et al. (1997b) showed that the position of the state points in the CD depends on the length of the low-flux interval: the shorter the state event is, the softer it is and the more it will be shifted to the left in the CD. Since the oscillations shown in Fig. 4 have a time scale considerably shorter than those in Fig. 2, a softening of the state C spectrum occurs. The identification of these parts of the oscillations with state C is strengthened by the fact that during them 1-10 Hz QPOs are seen (see Markwardt et al. 1999; Muno et 