The foundation of implementation of algebraic specifications in a modular way is investigated. Given an algebraic specification with visible and hidden signature an observing signature is defined. This is a part of the visible signature which is used to observe the behaviour of the implementation. Two correctness criteria are given for the implementation with respect to the observing signature. An algebraic correctness criterion guarantees initial algebraic semantics for the specification as seen through the observing signature, while allowing freedom for other parts of the signature, to the extent that even final semantics may be used there. A functional correctness criterion allows one to prove the correctness of the implementation for one observing function in Hoare logic. The union over all observing fimefions of such implementations provides an actual implementation in any programming language with semantics as described above. Note: Partial support has been received from the European Communities under ESPRIT project no. 348 (Generation of Interactive Programming Environments-GIPE).
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