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Rational harmonic mode-locking of an Erbium-doped fiber ring laser (EDFL) at repetition frequency of 40 GHz is demonstrated by using a purely loss-modulated Fabry-Pe´rot laser diode (FPLD) at 1 GHz. The FPLD is neither lasing nor gain-switching, which requires a threshold modulation power of 18 dBm to initiate harmonic mode-locking of the EDFL. After chirp compensation, the nearly transform-limited pulsewidth and spectral linewidth of 3 ps and 1.3 nm are obtained at repetition frequency of 40 GHz, which corresponds to a time-bandwidth product of 0.31. The EDFL gradually evolves from harmonic mode-locking to injection-locking mode as the FPLD changes from loss-modulation to gain-switching mode by increasing its dc driving current.