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If you want to configure a relay replication server, i.e. make the replication to pass data from slave to another slave as
A->B->C
you need to start B with --log-bin and --log-slave-updates. You can read more about this from the section "Replication Startup Options" of our manual at
http://www.mysql.com/doc/en/Replication_Options.html (http://www.mysql.com/doc/en/Replication_Options.html)