On one occasion the children said: "How happy we are here!" Later they said: "How happy we were there!" What are they referring to in both the cases?

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In the first case, they are referring to the Giant's garden where they would play while returning from school. They had a great time whenever they played in the garden. In the second case, they are again referring to the garden; talking about how happy they were before the Giant stopped them from playing in his garden. In both the cases, the children are referring to the Giant's garden.

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