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That is correct. Mine works with standard Starret collets after I retapped the drawbar. When I bought mine they did not offer the .275-40 drawbar thread. It is a fine machine and from what I can tell the only drawback is the stigma attached to it because it is made in China. A German company buys these machines, puts them in a wooden box, jacks the price up, and sells them as a German product. You can see one of these on Youtube.