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CONTRACTS Decree 1.386/94 Authorize the inclusion of clauses establishing the extension of urisdiction in favor of state and federal courts in New York, and the waiver of opposing the defense of sovereign immunity, in contracts that the Argentine Republic subscribes for operations defined by article 12 of Act No. 24.307.

Bs. As., 11/8/94

VISTO Issue No.001-002051/94 of the registration of MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES and Law No. 24,307, and

CONSIDERING:

It is appropriate for the ARGENTINA REPUBLIC to take advantage of possible favourable circumstances in international financial markets for public credit operations.

That Section 12 of Act No. 24.307 authorizes HACIENDA SECRETARIAT to conduct transactions of purchase or sale of NATIONAL TESORO liabilities, pass operations, options, conversions and any other type of usual market operation with the public credit instruments acquired through such operations.

In order to carry out such operations in the most favourable terms for the ARGENTINA REPUBLIC, it is necessary to include clauses that establish the extension of jurisdiction in favour of state and federal courts of NEW YORK, the United States of AMERICA and the waiver of opposing the defence of sovereign immunity.

That the NATIONAL EXECUTIVE POWER is entitled to the dictation of this measure in accordance with the provisions of article 16 of the 1994 Permanent Supplementary Budget Law.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 , Authorize, in contracts signed by the ARGENTINA REPUBLIC for operations defined by article 12 of Act No. 24,307, the inclusion of clauses establishing the extension of jurisdiction in favor of the state and federal courts of the city of NUEVA YORK, the United States of AMERICA, and the renunciation of opposing the defense of sovereign immunity, with the inembarbility to be preserved:

(a) Assets that constitute reserves of free availability, within the framework of the Law on Convertibility, the amount, composition and investment of which is reflected in the General Balance and Accounting Status of the ARGENTINA REPUBLIC BANCO, prepared in accordance with Article 5 of Law No. 23.928.

(b) Public domain assets located in the territory of the ARGENTINA REPUBLIC or property belonging to it and which are located in its territory and are intended for the purpose of an essential public service.

Art. 2o . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Domingo F. Cavallo