PRIVATIZATIONS Decree 574/96 Circumscrime the cession of ownership of properties provided by Decree No. 1774/93 in favor of the General Railway Company Belgrano S.A., to those goods that are necessary for the diagram of services and their collateral exploitations, excluding those others that do not review such character.

Bs. As., 30/5/96

VISTO Issue No. 557-000228/95 of the record of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, and

CONSIDERING:

That by Decree No. 1774 of August 23, 1993, the former FENERAL GERENCE of the general FERROCARRIL FERROCARRIL FERROCARRIL General BELGRANO was dispensed with the FERROCARRIL FERROCARRIL FERROCARRIL FERROCARRIL and was created, on the basis of that excision, the General FERROCARRIL ANONIMA excluding jurisdiction for METROPOLITANO FERROCARRILES SOCIEDAD ANONIMA.

That the creation of the aforementioned company constitutes a necessary and convenient intermediate stage to achieve the privatization by concession of the sector of the company Argentine Railways then called Ferrocarril General Belgrano.

That, in transitory form and up to its privatization by concession, the General BELGRAN FERROCARRIL ANONIMA is responsible for the exploitation of the cargo transport service on the network of the former FERROCARRIL General BELGRANO.

That also Article 4 of Decree No. 1774 of 23 August 1993, provides that the FERROCARRILES ARGENTINS shall grant ownership of the real estate located within the jurisdiction of the former General GERENCE of the FERROCARRIL GENERAL BELGRAPHONE SOCIEDAD ANONIMA, excluding those corresponding to the jurisdiction of METROPOLITANO FERROCARRILES SOCIEDAD ANONIMA.

That the intention that has been made in issuing Decree No. 1774 of 23 August 1993 has been to transfer to the General FERROCARRIL EMPRESA FERROCARRIL SOCIEDAD ANONIMA only the properties that may be necessary for the layout of services and their collateral exploitations, excluding those that are unnecessary for that purpose.

That, for its part, Decree No. 407 of 11 March 1991, as amended by its similar Decree No. 2137 of 10 October 1991, establishes precise directives leading to the acceleration of the alienating procedure of unnecessary tax properties for the performance of state functions or the management of their decentralized entities, in accordance with the requirements contained in Act No. 23.697 on Economic Emergency.

That the spirit of this Decree has been that the one produced from the sale of unnecessary properties will serve to cancel the liabilities that the Companies have been dragging.

That Article 10 of Decree No. 1774 of 23 August 1993 provided that the creation of the General FERROCARRIL FERROCARRIL BELGRANO does not imply the transfer of liabilities of the FERROCARRILES FERROCARRILES ARGENTINOS to the new Society, unless it so emerged from the assignment of the contracts then in force.

That, therefore, it is necessary to circumscribe the cession of ownership of properties provided for in Article 4 of Decree No. 1774 of 23 August 1993, in favor of the General BELGRAN SOCIEDAD ANONIMA FERROCARRIL FERROCARRIL, to those goods that are necessary for the diagramming of services and their collateral exploitations, excluding those others that do not review such character.

That the Permanent Legal Service of the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS has taken in these proceedings the intervention that it is responsible for.

That the powers for the dictation of this measure arise from the provisions of Article 7 of Law No. 23,696.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 de Exclude to the provisions of Article 4 of the Decree No. 1774 of 23 August 1993, to the properties which, being located within the jurisdiction of the former General GERENCE of the General FERROCARRIL BELGRANO, are disaffected or in the course of disabling. Art. 2o a Facultase to the GENERAL FERROCARRIL EMPRESA BELGRAN SOCIEDAD ANONIMA to dispose for itself, the breakdown of properties located in its jurisdiction. The corresponding act of disabling shall have the scope and effects provided for in the following article. Art. 3o . It will correspond to the EMPRESA FERROCARRILES ARGENTINOS (e.1.) the ownership of the properties included in Articles 1 and 2 of this decree, as well as the amounts resulting from its sale. Art. 4o . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Jorge A. Rodriguez. . Domingo F. Cavallo.