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From that diagram you can't tell if it's in the F or R brake line. That's irrelevant though, since it's used in conjunction with the ABS system, once you remove the ABS from the equation, it's a whole different ball game.
I've never heard of reducing front brake pressure ( via a prop. valve) to adjust brake balance. You always want full pressure to the front, and control balance by reducing rear line pressure. To adjust overall brake effort, you can reduce or eliminate boost, change master or caliper piston sizes, or change the mechanical pedal ratio.
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