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The LQP output regulator control problem is considered with the usual state feedback solution. A design technique is described which allows the optimal control performance criterion weighting matrices to be selected under conditions of maximal accuracy. A feature of the design technique is that uncontrollable modes can be made unobservable under limiting conditions. The controllable modes can be made as fast as energy considerations allow. The theoretical basis for the method depends on results from the theory of multivariable root loci. The design procedure was developed to simplify the design of dynamic ship-positioning control systems.