This work addresses a specific technical question of relevance to cano
nical quantization of gravity using the so-called new variables and lo
op-based techniques of Ashtekar, Rovelli, and Smolin. In particular, c
ertain ''superselection laws'' that arise in current applications of t
hese techniques to solving the diffeomorphism constraint are considere
d, Their status is elucidated by studying an analogous system: 2 + 1 E
uclidean gravity, For that system, these superselection laws are shown
to be spurious. This, however, is only a technical difficulty. The us
ual quantum theory may still be obtained from a loop representation an
d the technique known as ''Refined Algebraic Quantization.'' (C) 1997
American Institute of Physics.