English translation: source of state power and sovereignty
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Explanation: I really don't like "holder", because it's an unnatural use of the word in English, and I can't find many references. I can't find many more for "source", but it is a natural word to use in the context. It's also used by other translators for the constitutions of FSU countries (see refs).
The people are the sole source of state power. State power in the Republic of Uzbekistan shall be exercised in the interests of the people and solely by the ...