Ministry of Economy National Development Council Approve the contract signed with the General Directorate of Military Manufacturing for the development of the San Nicolás industrial complex.

DECRECT N° 9.029

Buenos Aires, October 14, 1965.

VISTO, Contract No. 1.115 and Additional 1 signed between the National Development Council and the General Directorate of Military Manufacturing dated 30 May 1963, and

CONSIDERING:

That, through such an agreement, both agencies will jointly undertake a study of the basic aspects for the programming of the development of the San Nicolás industrial complex, as well as related problems and how to resolve them;

That the objective pursued is to stimulate the harmonious growth of the industrial production of the area and to achieve the proper formation of a regional space that interdependently involves socio-economic relations;

To that end, the National Development Council and the General Directorate of Military Manufactures have committed to affecting their respective budgets to the sum of $4,000,000 and m$n. 12,000,000, for the purpose of financing the expenses required for the performance of the work;

The provisions of Article 56, paragraph 3, paragraph 3 (i), of the Accounting Act are set forth and attentive;

The President of the Argentine Nation, Decreta:

Article 1 . Approved Contract No. 1.115 and its Additional I, signed in due course by the National Development Council and the General Directorate of Military Manufacturing, which are an integral part of this Decree.

Art. 2° al Authorize the National Development Council to transfer to the General Directorate of Military Manufacturing to the sum of four million pesos national currency (m$n. 4,000.000), as agreed in the third paragraph of Article 3 of the above-mentioned Additional I.

Art. 3° . This Decree will be endorsed by the Ministers Secretaries in the Departments of Economy and National Defence and signed by the Secretaries of State of Finance and War.

Art. 4° pub Communicate, publish, give to the General Directorate of the Official Gazette and Prints and archvese.

ILLIA. . Juan C. Pugliese. Leopoldo Suarez. . Carlos A. García Tudero.

CONTRACT N° 1.115

Between the National Development Council, in the future "CONADE", represented by its Vice-President, Doctor Manuel San Miguel, with legal domicile and the street Hipólito Yrigoyen N° 250, Piso 8°, de esta Capital, and the General Directorate of Military Manufacturing, henceforth "DGFM", represented by its Director General and President of the Honorable Directory, General of Brigada D. Carlos Guido Blanco, with legal domicile in the Avda. Cabildo No. 65 of this City agree to celebrate this contract "ad referendum" by S. E. Mr. War Secretary.

Article 1: "CONADE" and "DGFM" will jointly undertake the study of the basic aspects for the programming of the development of the industrial complex of San Nicolás, as well as the related problems and the way of solving them, all with the basic purpose of stimulating the balanced growth of the industrial production of the zone and achieving the proper formation of a regional space that harmoniously conforms the socio-economic relations. This study will include the following points:

(a) The regional and national location and impact of the development of the San Nicolás industrial complex.

(b) The linking of the development of the industrial complex with the region and the physical planning and in detail, on the urban scale, of the industrial complex, with particular emphasis on the study of the chronological priority of the services regarding industrial development;

(c) The assessment of demand, the analysis of the effects of linking the various industries of the complex, the financial aspects and suggestions for promotional measures.

(d) Text of the legal and regulatory norms, national, provincial and municipal, whose sanction and/or dictation must be promoted in relation to all orders that interest the planning of regional development and the realization of it, as well as the institutional, administrative, fiscal and financial organization of the industrial complex and its area of influence.

(e) The promotion of the training of Argentine personnel in the techniques for the development and administration of the industrial complex.

Article 2: The work will be led by a Steering Committee consisting of a representative of "CONADE" and another of "DGFM", who will act as Co-directors.

The Committee shall develop the methodology of work, establish the order of pre-approvals and may decide not to perform some of the aspects indicated in the programme or to add new ones, if the circumstances so advise.

Article 3: "CONADE" is committed to affecting, to finance the expenses that demand the realization of this work, up to the sum of four million pesos national currency (m$n. 4,000.000) and the "DGFM" up to the sum of twelve million pesos national currency (m$n. 12,000.000), thus totaling an amount of sixteen million pesos national currency (m$n. 16,000.000).

It is included in such expenses, as a statement, that:

Payment of retributions to both national and foreign staff, which "CONADE" contracts on the proposal of the Board of Directors.

Payment of remuneration for special work that "CONADE" contracts at the request of the Board of Directors.

Payment of office expenses, stationery, telephone or cable communications, rental of machines and vehicles, hired personnel, etc.

The tasks to be performed, the remuneration of the staff engaged and the definition of amounts and timelines of the special work contracted with third parties shall be set by the Steering Committee.

Article 4: The Management Directorate of "CONADE" shall bear the accounting of these operations and the Board of Directors shall submit a report on the movement of funds.

Article 5: The work plan is expected to be completed within one (1) year of the date of approval of this contract. The presentation of the complete work will be printed in "rotaprint" by "CONADE" who will reserve, for use and distribution, one hundred (100) copies and will deliver three hundred (300) to "DGFM".

Without prejudice to the above provisions, as partial studies are completed, "CONADE" through the Board of Directors will produce the advice corresponding to the "DGFM".

Article 6: "CONADE", according to its available resources, will facilitate the training in the techniques of programming and planning of industrial complexes to the professionals that in effect agree with "DGFM". This training can be complemented by scholarships and study trips, both in the country and abroad.

Article 7: The "DGFM" will provide "CONADE" with the information material available to it, as well as the collaboration, to the extent of its possibilities, for the collection of necessary elements of judgment in official agencies or private institutions.

Article 8: Except where special circumstances, to value exclusively for "DGFM" require it, it shall not definitively award more land from the area expropriated by San Nicolás, until the work referred to in this contract is terminated.

However, and to facilitate the fastest implementation of the industrial complex, "CONADE" will provide "DGFM", as early as possible, with all the information and advice that it can advance, in order to accelerate the distribution of the land among the stakeholders.

Article 9: Two (2) copies of the same tenor and one effect are signed in the City of Buenos Aires, on the thirty days of the month of May of the year thousand nine hundred sixty-three.

ANNEX I TO CONTRACT CONADE-DGFM N° 1.115

OBJECTIVE

Planning of an industrial complex to be established in the land located in the vicinity of the SOMISIA plant, owned by the General Directorate of Military Manufacturings, which has the necessary and indispensable instruments to allow the immediate award and sale to the interested, of such land, on a basis that ensures the harmonious and functional development of the whole of the industrial plants to be installed. Creation of an entity in charge of the administration and operation of the complex, bearing in mind the criterion expressed by Military Manufactures, in the sense that they remain outside the orbit of their administrative action.

This will take into account:

(a) The regional and national location and impact of the development of the San Nicolás industrial complex.

(b) Its link to the region and physical planning and in detail to the urban scale, with particular emphasis on the study of the priority of the services.

(c) Text of the legal and regulatory norms, national, provincial and municipal, whose sanction should be promoted in relation to all orders that interest the planning of regional development and the realization of it, as well as the institutional, administrative, fiscal and financial organization of the industrial complex and its area of influence.

GENERAL PLAN OF WORK

SUMMARY

I ­ Determination of industries derived from the existence of SOMISIA and other similar plants in the region.

I.1. List of industries. Average dimensions of plants.

I.2. Neighborhood required.

II - Infrastructure.

III - Economic and financial studies.

IV - Legal system.

V. Integration of the pilot plan.

VI. Regional impact study (legal-physical social-economic).

VII - Final report.

VIII. Personnel training.

I... General analysis and projections of the industrial complex derived from steel plants.

1.1.) Analysis:

1.1.1.) Classification of industries: (a) by type of processes; (b) by size of plants according to the programmed capacity of SOMISA; (c) characteristics of raw materials and materials both inside and outside plants; (d) need and character of services to be used; (e) special requirements of technological processes.

1.1.2.) Relative locations of the various industries.

1.1.3.) Complementary general and common services.

1.1.4.) Depending on 1.1.1.) and 1.1.3: Estimated evaluation of:

1.1.4.1) Number of persons occupied

s Directions s Technicians

Administrative

es Supervisors

rios Operators

1.1.4.2.) Energy to consume by industrial plants.

1.1.5.) This study will be carried out with the presentation of the following elements.

1.1.5.1.) List of industries linked to steel, with a complementary appreciation of their possibilities, depending on the characteristics derived from the current state of our economic development and regional pecualiarities.

1.1.5.2.) Statistical summary of the average dimensions of industrial plants derived and their requirements, taking into account economic and financial aspects (see: III: 3.1., 3.2., 3.3).

1.2. ) On the basis of people occupied in plants (1.1.4.1.), it will be defined:

1.2.1.) Neighborhood required.

1.2.1.1.) Elements: Housing, communal centers (administrative, commercial and supply; health, education, etc.).

1.2.1.2.) Predictable location and development of the urban nucleus.

1.2.1.3.) Communications or access to the industrial core.

1.2.1.4.) General services.

1.2.2.) Based on the population and the energy consumed, all facilities will be studied for the provision and distribution of electricity, gas, water and drainage with treatment plants, traced of streets of service and access to railway routes and branches.

1.2.3.) The reserve of the land fraction necessary to project an industrial park will also be projected to integrate the complex by placing it in plots of surfaces appropriate to the dimensions of the small and medium plants that are expected to be located in the same.

1.2.4.) Taking into account the results of 1.2.1, 1.2.2 and 1.2.3, the inter-project of the complex will also be selected in its physical aspect.

II. - Infrastructure.

1st. INFORMATION

2.1.) Analysis of the aspects listed below 2.1.1. to 2.1.8. (the list is not taxative but enumerative and may be expanded or regrouped if the progress of the work is advised, but no point may be deleted).

Description, analysis and judgement of value on the current situation (works and services in operation and/or under construction).

Compilation, analysis and trial of existing studies and projects to date, indicating the stage reached. In each case, it will be clear whether they have been approved, suspended or dismissed and the reasons for the decision.

2.1.1.) Description of the site.

relative location

planialtymetry

ecology

paisaje cultural landscape

2.1.2.) Access

fluvile

Land

aéreo aerials

2.1.3.) Communications

te telecommunications

s transports

2.1.4.) Supply

local local

regional regional (opening)

2.1.5.) Public services

agua water supply

: drains: rainfall

sewers

Industrial

energía Electric power

gas gas

2.1.6.) Public security

2.1.7.) Urban sanitation

2.1.8.) Health units.

2da. STATUS

2.2.) Definition of the development of the infrastructure elements necessary for the complex, the industrial park and the urban nucleus. Modifications and/or extensions to be introduced in the works and projects mentioned in 2.1. New works and services required. Estimated global budget for each case (2.1.1 to 2.1.8).

3rd. OPERATTIVE STATUS

3.) Definition of the necessary instruments for implementation, including types of conventions to be held with the relevant public or private bodies (see IV. 4.3, and 4.4.).

III. Economic and financial studies:

3.1.) Market study of the main products produced in the complex.

3.2.) Determination of the "examination effects" of the various industries that can form the complex, based on the analysis of chapter I.

3.3.) Specialization and optimal dimension of the scales of the possible plants. Capacity installed and used. Cost chart.

3.4.) Identification of complementary industries of an anticyclical nature.

3.5.) Examine the possibility of constructing a matrix of interrelationship of the established industries, to establish more accurately the interdependencies of them.

3.6.) Analysis of the interrelationship of this industrial complex with the rest of the country's economy, in the following aspects:

3.6.1.) Contribution to balanced economic development.

3.6.2.) Regional location.

3.6.3.) Industrial decentralization.

3.6.4.) Effects on the balance of payments.

3.6.5.) Level of occupation of the workforce.

3.6.6.) The adoption of modern technological methods and their impact on national average productivity.

3.7.) Financing

3.7.1.) Investments in infrastructure.

3.7.2.) Investments in directly productive activities.

3.7.3.) Internal and external financial resources channelling mechanism.

3.8.) Complementary advocacy measures

3.8.1.) Tax exemptions.

3.8.2.) Selective credit for equipment and evolution.

3.8.3.) Channelling of internal and external technical assistance to installed industries.

IV. Legal system

1st. INFORMATION

(Exclusively legal).

4.1.) Background

4.1.1.) Analysis of the legal and regulatory rules currently governing the complex under study.

4.1.2.) Analysis of international policy precedents that govern similar situations.

4.1.3.) Comparison 4.1.1 and 4.1.2.

4.1.4.) Conclusions including definition and evaluation of specific purposes to be covered in 4.2. and 4.3.

2da. STATUS

(Juridic, after reporting other disciplines).

4.2.) Legal location of the complex

4.2.1.) Taking into account the plan ' s objective, the creation of the appropriate operational entity will be studied in order to achieve it.

4.2.2.) Analysis of the legal figures appropriate for the construction of the entity including its virtues and defects and an evaluation of them for the purpose of defining the optimal regime.

4.2.3.) Current rules to be maintained; amendments to existing regulations; new standards. The conclusions of this point will detail, hierarchically, the subjects whose rules will be modified, including a comprehensive commentary to demonstrate ). in each case). the legal viability of the reforms to introduce, their logical coordination with the rules that are not modified and their inter-relationship with the right of substance in force (E.g. D. Constitutional). It is expressly clarified that one of the responsibilities to be covered in this second stage is to ensure Ga satisfaction of the DGFM. that the rules to advocate, modify and/or maintain are unobjetable in their approaches: legal, constitutional, political and social.

3rd. OPERATTIVE STATUS

(Juridica, with the contest of other disciplines).

4.3.) Legislation

4.3.1.) Drafting of the preliminary draft of the legal structure of the operating entity, with presentation of reasons and procedures to be carried out for approval.

4.3.2.) Drafting of the modifications and new rules indicated in 4.2.3. with presentation of reasons and procedures to comply with for approval.

4.3.3.) Drafting of a final summary of the work carried out in 4.1, 4.2 and 4.3, with quotes from all sources and backgrounds consulted, how the work is approached, problems raised, solutions adopted and a deep overview of the advantages offered by the regime for which it has been chosen.

GENERAL NOTE:

CONADE will provide on loan at the request of the General Directorate of Military Manufacturing and to the extent required, the works, background, sources, etc., that it has used in the preparation of the work programmed in this chapter.

V. Integration of the pilot.

The pilot or pre-plan plan of subdivision, zoning and services will be a project that will be completed before the start of the 3rd. Stage (see diagram). The relevant technical specifications and legal rules shall be included in the final report. Basically you will understand the following documents: industrial zoning pilot plane, location of the urban nucleus drawn main yard; main distribution networks of: electricity, gas, water, drainage. The plan will be made at the last stage, once the regional impact has been evaluated.

ESTIMATIVE BUDGET FOR THE IMPLEMENTATION OF THE WORKING PLAN FOR THE PROGRAMME OF THE DEVELOPMENT OF THE INDUSTRIAL COMPLEX OF SAN NICOLAS

(Constrate CONADE )DGFM N° 1.115)

Comments

(1) The partials indicated include: Director of sectoral work, professionals, assistant technicians, drawers, dactilographers, travel, road, general expenses.

(2) In the event of obtaining funding for the payment of the foreign consultants, the respective amount shall decrease proportionally the contribution of each party.

ADDITIONAL I TO THE CONTRACT N° 1.115

Between the National Development Council, henceforth "CONADE", represented by its Vice-President, Dr. D. Manuel San Miguel diet.. and the General Directorate of Military Manufactures, henceforth "DGFM", represented by Brigadier General D. Carlos Guido Blanco, Director General and President of the Honorable Board of Directors, it is worth holding the additional present first to the contract number one hundred and fifteen, subject to the following clauses:

Article 1: The study referred to in article 1 of the original contract shall be carried out by the author of the selection carried out by the Management Committee established by article 2 of the above-mentioned contract, under the supervision and control of the Advisory Committee set out in article 2 of this additional contract.

Article 2: Article 2 of the original contract reads as follows:

The work will be led by an Advisory Committee composed of a Director, who will be the Director of Mobilization of the "DGFM", by an advisor appointed by the "CONADE" and another Advisor for the "DGFM". The decision-making authority shall be vested in the Director, in all cases and in the sole and final instance.

It will be the responsibility of the Advisory Committee to approve, in its case and in an all-in accordance with the outcome of the contract to be signed with the awardee of the selection referred to in article 1, the different stages of the studies carried out in accordance with the respective work plan, and to reject them. You may also decide not to perform some of the aspects indicated in the program or to add new ones, if the circumstances so advise.

Article 3: Article 3 of the original contract reads as follows:

"CONADE" is committed to financing the expenses that demand the realization of this work, up to the sum of four million pesos national currency (m$n. 4,000.000) and the "DGFM" up to the sum of twelve million pesos national currency (m$n. 12,000.000) with which a total of sixteen million pesos national currency (m$n. 16,000.000)".

"CONADE" will transfer its contribution of four million pesos national currency (m$n. 4,000.000) to "DGFM" prior to the date on which it subscribes the corresponding contract with the awardee of the study."

Article 4: Articles 4°, 6° and 7° of the original contract are deleted.

Article 5: Article 5 of the original contract shall read as follows:

The work plan is expected to be completed within one year of the date of this contract.

Article 6: Article 8 of the original contract reads as follows:

"Unless they require special circumstances, to value exclusively for "DGFM", it will definitely not award more land from the area expropriated by San Nicolás, until the work referred to in this contract is terminated."

Article 7: "DGFM" as an executive agency shall sign the contract to celebrate with the signature that is awarded the selection referred to in Article 1.

Article 8: Two (2) copies of the same tenor and one effect are signed in accordance.

Buenos Aires, July 19, 1965.