  This paper is a revised version of our preprints IMUJ Preprint 2012/04 and
RAAG Preprint 343 from May 2012. It provides an example of a quasianalytic
structure which, unlike the classical analytic structure, does not admit
quantifier elimination in the language of restricted quasianalytic functions
augmented by the reciprocal function. It also demonstrates that Lojasiewicz's
theorem that every subanalytic curve is semianalytic is no longer true in
quasianalytic structures. Our construction applies rectilinearization of terms,
established in our earlier papers, as well as some theorems on power
substitution for Denjoy-Carleman classes and on non-extendability of
quasianalytic function germs. The last result relies on Grothendieck's
factorization and open mapping theorems for (LF)-spaces.
