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oh the magic tricks were ok too
Took me a little while to work it out, but it goes like this:
The shoelace he undoes at the start is the one on the pulley thingy...his shoe is still tied by the real lace and is hidden under his trouser/pant leg.
He undoes the fake lace, wiggles his leg about, retracts the fake lace into his trousers/pants, and reveals the real lace. Simple.