This paper addresses the
problem of how to directly read off the ‘fusion coefficients’ (for the tensor-products of
bimodules arising in the ‘tower of the basic construction’) for a subfactor, from the
data of the associated paragroup. The solution to this problem is closely
related to a reformulation, which is obtained here, of the flatness condition to
be satisfied by the connection on a paragroup; our reformulation is best
described by the phrase ‘1 ∗ flatness’, in contrast with Ocneanu’s initial
formulation as ‘4 ∗ flatness’ and Kawahigashi’s subsequent reformulation as ‘2 ∗
flatness’.