Abstract
A local realistic theory of single neutral kaons and of correlated neutral kaon pairs is formulated by deducing the most general consequences of three assumptions: (i) the Einstein-Podolsky-Rosen (EPR) reality criterion, (ii) locality, and (iii) no retroactive causality. Variables must be introduced for every kaon determining the stable $\mathrm{CP}$ value and the variable value of strangeness $S.$ Instantaneous $S$ jumps are shown to take place. If kaon pairs are produced in \ensuremath{\Phi} meson decays, the local realistic probability of observing ${\overline{K}}^{0}{\overline{K}}^{0}$ pairs at certain different proper times necessarily differs by 30% from the quantum-mechanical predictions. The size of this difference justifies our systematic neglect of $\mathrm{CP}$ violation. A \ensuremath{\Phi} factory is thus shown to provide a unique tool for the study of the EPR problem
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