Question:
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In this reaction OH- eliminates HCl from the chloroform. A Dichlorcarben is formed.
OH- + CHCl3 => H2O + Cl- + :CCl2
This will react in ortho position to the phenolate.
https://upload.wikimedia.org/wikipedia/commons/thumb/b/b3/Reimer-Tiemann-Reaktion_3.svg/590px-Reimer-Tiemann-Reaktion_3.svg.png