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A new rated-based congestion control algorithm is presented by using a two-degree-of-freedom Smith predictor for ABR traffic control over high-speed ATM networks with large propagation delays. The new control scheme can not only guarantee the stability but also decouple the disturbance response from the setpoint response. It is simple and transparent in design and corporation of performance and robust stability issues of the ABR traffic control system over ATM networks. Simulation examples are provided to illustrate the proposed method.