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How to use Merge or Append in this case? Additional Observations issue

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Hi everyone,
I have two datasets. Both have the same variables: Country, Year, Code, Output. Dataset1 covers the period 1962-2014.But this dataset has values for Output only for period 1962-1964.
While Dataset2 has values for Output for period 1965 only. So, I want the new merged dataset to have values of output for 192-1965.
I used 'merge m:m output using...., nogen', which actually works but for the output values of 1965 it creates an additional observation (missing values) for each observation in that year.
While when I used 'append' it didn't insert the output of 1965 at all. Any idea?
I read before posting this post in here http://www.stata.com/statalist/archi.../msg00060.html but no clear answer was provided.
Thanks in advance

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