GENERAL DIRECTION OF MILITARY FABRICATIONS

Decree 2332/91

Disposed the sale in National and International Public Licitation of the assets that make up the Siderúrgico Center and the Forest Center as well as the transfer of the Mining Rights that make up the High Hornos Zapla Foundation.

Bs. As., 6/11/91.

I look at the Nros Laws. 23,696 and 23.809, and

CONSIDERING:

That by Law No. 23,809 the declaration of "Subject to Privatization" was approved to the establishment "ALTOS HORNOS ZAPLA" under the General DIRECCION DE FABRICATIONS MILITARES, formulated by Decree No. 1131/90 and its amended Decree No. 1213/90.

It is necessary to establish the rules that allow for the realization of orderly privatization.

That the assets to be transferred are made up of the total assets that make up the Siderurgical Centre and the Forestry Centre, and in addition to the mining rights, of which the General DIRECTION OF MILITARY FABRICATIONS under the MINISTERY OF DEFENSA is held.

It is convenient to condition the transfer of such goods to the maintenance of the exploitation for a minimum period of TEN (10) years.

That the sale of the assets will be carried out through the procedure of National and International Public Litigation.

That the MINISTERY OF ECONOMY has taken pre-intervention in accordance with article 15, paragraph 94 and 12, of Law No. 23,696.

That the Participated Property Programme provided for in Chapter III of Law No. 23.696 shall be concluded in the solicitation of this Decree.

That for the purposes mentioned above it is necessary to approve the Bases and Conditions Pledge which will govern the invitation to bid.

That this Decree is within the framework of Article 71 of Decree No. 1757/90.

That the Directorate-General for Juridical Affairs of the Ministry of Defence has taken the necessary intervention.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION
RIGHT:

Article 1 - Disposed the sale in National and International Public Litigation of the assets that make up the Siderurgical Center and the Forestry Center, as well as the transfer of the Mining Rights that make up the Establishment HORNOS ZAPLA PRODUCTION under the GENERAL DIRECTION OF MILITARES FABRICATIONS, whose description is included in the Annex and the fold approved in Article 24 of the present decree.

Art. 2o - Apply the Bases and Conditions Form that integrates this decree as an Annex, and set its price in the sum of DOLARES STADOUNIDENSES SEIS MIL (USS 6,000).

Art. 3o - The MINISTERY OF DEFENSA shall be the Authority of Implementation, for all purposes of Law No. 23,696, of its regulatory decree No. 1105 dated 20 October 1989 and of this decree; it shall be entitled to dictate all the administrative acts that are complementary to that which are necessary. The date of the opening ceremony shall be set by the Authority of Application within the seventh (7th) working day of the publication in the Official Gazette of this Decree.

Art. 4o — The Implementation Authority shall have the necessary measures for the purpose of the dissemination of this call abroad, in accordance with article 18, paragraph 1 and 2 (b) of Decree No. 1105 of 20 October 1989.

Art. 5o — The Application Authority may, in the event that the first tender has been declared disallowed or annulled, make a new call within the QUINCE (15) days from the declaration, adopting in the same any of the modalities set out in Law No. 23.696 subject to the fold approved by this decree and with the corresponding modifications required by the chosen modality.

Art. 6o - Remind the debts linked to Altos Hornos Zapla and, as a establishment dependent on the general DIRECTION OF FABRICATIONS MILITARES, keep with other official records, until the date of the effective transfer of assets, as set out in article 15, paragraph 9 of Act No. 23,696, following the intervention of the MINISTERIO DE ECONOMIA.

Art. 7o — The NATIONAL STATE shall, after the intervention of the MINISTERY OF ECONOMY, assume the liabilities referred to in the Bases and Conditions Approved by Article 2 of this Decree; until the date of the effective transfer of assets, as set out in Article 15, paragraph 12 of Law No. 23,696.

Art. 8th — The General SCRIBANY OF THE GOVERNMENT OF NATION shall be present at the opening of the offers and shall grant all the legally required instruments in which the NATIONAL STATE, through the respective ministries, intervenes in compliance with the privatization process ordered by Law No. 23,696. The above-mentioned entity shall provide its performance without charge to the State, in charge of the awardees or acquiring the rest of the expenses, as appropriate eb each case. The General Writer of the Government of the Nation or, in its replacement, the corresponding subscribers will be responsible for the notaral actions necessary in the process of privatization, under the conditions foreseen.

Art. 9o - The base value of all the goods to be transferred will be composed of the following payment modality: TEN BY SCIENTO (10%) of the actual base price; the balance in titles of Argentina Debt, of which up to a CINCUENTA per SCIENTO (50%) may be those created by Law No. 23.982 and the rest in titles of the Argentine External Debt Sovereign. La
part in titles shall be considered at its nominal value and as set out in the Bases and Conditions Approved by this Decree.

Art. 10. - The acquirer is obliged to assign, at least, the DIEZ BY CIENTO (10%) of the social capital to the Participated Property Program provided for in Chapter III of Law N9 23.696, following the constitution of an anonymous company, which must be constituted within a maximum period of CINCO (5) days, to count from the day after the signing of the contract.

Art. 11. - They are excluded from the sale and/or transfer referred to in Article 14 of the present, housing and any other good, whether for community or individual use, and that currently integrates the so-called High Hornos Zapla Complex not included in the annexed fold. The MINISTERY OF DEFENSA is the body authorized to perform any future act of administration or provision, as appropriate, in relation to such assets.

Art. 12. - The MINISTERY OF DEFENSA will agree with The representative organizations of the workers the conditions of withdrawal of the staff dependent on the General DIRECTION OF MILITARY FABRICATIONS, linked to the establishment of Altos Hornos Zapla and which was not transferred to the society created by the ADJUDICATARIO, within the existing legislative framework in the matter.

Art. 13. - The MINISTERY OF DEFENSA will ensure the continuity in the same conditions, the provision of the services of the Social Work under the General DIRECTION OF MILITARY FABRICATIONS currently a period not exceeding the SCIENTA (180) days, counted from the day after the award.

Art. 14. - The MINISTERY OF DEFENSA will agree with the future Social Work, the form and conditions of the transfer of the staff currently affected to the aforementioned service as well as the facilities necessary for the provision of such service.

Art. 15. - Please comply with Article 14 of Law No. 23,696.

Art. 16. - Contact, post, give to the NATIONAL DIRECTION OF THE OFFICIAL REGISTRATION and archvese. — MENEM — Antonio E. González. — Domingo F. Cavallo

NOTE: This Decree is published without an Annex.