Sorry have to disagree....
I would remove the dead wood so the tree has a bit more taper, this will improve the overall tree in years to come...there will be an even flow of the trunk and not a large bulge at that point.
Picture 1 is definatly your front.
In addition I would remove it from this pot and put it in a slightly larger shallow pot to aid in its growth, this will help it grow and also help in healing the scar.
Placing clear plastic all around the tree will help improve humidity if you do not have a hothouse and will boost the tree even more.
For added root growth try placing a layer of damp sphagnum moss on the surface of the soil to keep this area moist for root development (right up to the trunk).
Jbhayman
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Originally Posted by wolverine
I would just cut a line around the callus,not too deep,and it will grow up around the woody part
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