INDUSTRIAL PROMOTION

Decree 745/97

Protract the deadline for the tendering, awarding and transfer of the project for the construction, installation, commissioning and exploitation of an industrial plant for the development of cookies such as Cream Cracker, Lincoln and Marie, approved by Decree No. 303/76.

Bs. As., 4/8/97

B.O.: 08/08/97

VISTO Issue No. 060-002279/97 of the Register of the MINISTERY of ECONOMY AND PUBLIC SERVICES, and

CONSIDERING:

That by Decree No. 303 of January 27, 1976 a project for the construction, installation, commissioning and exploitation of an industrial plant was promoted in the framework of Law No. 20,560, for the elaboration of cookies of type Cream Cracker, Lincoln and Marie, with location in the Department of Albardon, Province of San Juan, which was to be carried out by the company SASETRU

That Decree No. 2352 of 13 November 1980 authorized the change of ownership and covered the project referred to in the framework of Decree No. 1879 of 3 August 1979, a regional regulation of Law No. 21.608.

That Decree No. 2352/80 also established that the promotional benefits would be transferred to the acquirer of the plant, as long as it meets the requirements required by the Implementation Authority.

That the change of ownership is not concrete and the project promoted did not come into operation due to the declaration of bankruptcy of SASETRU SOCIEDAD ANONIMA, COMERCIAL, INDUSTRIAL, FINANCIAL, INMOBILIARIA, AGROPECUARIA, IMPORTADORA and EXPORTADORA occurred in February 1981, despite having carried out several tests or production tests in the facilities.

That in view of the state of the procedures for the liquidation of the goods of the firm, among which is the industrial plant mentioned, and having decreed the judicial realization of the same, it is necessary for the purpose of sustaining the uniqueness of the project, avoiding the dismemberment and transfer of the equipment, the maintenance of the benefits of the industrial promotion.

That if the sale was made with the agreed promotional benefits, the interest to stay and produce locally would be accentuated, while in the opposite case the sale could determine the award of the equipment separately in different locations.

It is the interest of the Government of the Province of San Juan to maintain the project since it generates it at least MIL CUATROCIENTS SESENTA AND OCHO (1468) new jobs.

That, therefore, the provincial authority requests the granting of an extension of the deadline for the start-up of the project in order for the new holder to be able to give due fulfillment to all the emerging obligations of the promotional regime.

That, also, the extension of the start-up in the past inactivity time is based, which requires the replacement of pipes, cables and the change or expansion of machinery to the eventual obsolescence of part of the equipment.

That tests of equipment and installations should also be performed prior to the start-up and the silos electrical installation and the connection of the gas network from the plant to the troncal access.

That of the findings of the technical report it is advisable to grant a period of SEIS (6) months for the tendering, awarding and transfer of the project and another of NUEVE (9) months counted from the effectivization of the transfer for the start of the plant.

The deadline for compliance with the requirements for the incorporation of the project into the promotional benefit substitution regime established by Act No. 23,658 and Decree No. 2054 of 10 November 1992 and its supplementary rules, which makes it necessary to establish new deadlines for compliance.

That the amount of the Theoretical Tax Cost of the project arises from the working tables in the administrative proceedings in which Decree No. 2352/80 was processed.

That, in addition, the necessary budgetary quota should be foreseen for the purpose of the FEDERAL ADMINISTRATION OF PUBLIC INCOME, an autonomous entity within the scope of the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICOS credits the fiscal cost that the project demands.

That the GENERAL DIRECTION OF THE MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICOS has taken the intervention that belongs to him.

That in the case the normal procedure for sanctioning and enacting the laws provided for in the NATIONAL CONSTITUTION cannot be expected because of the urgency that arises to specify the necessary instances to ensure the realization of the project and the consequent generation of jobs that it will require.

That the present decree is issued in the General Agreement of MINISTERS and in the use of the powers conferred by article 99, paragraph 3 of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION IN GENERAL AGREEMENT OF MINISTERS

DECRETA

Article 1A time limit of CENTO OCHENTA (180) corrected days, counted from the date of the present decree, for the tendering, awarding and transfer of the industrial project referred to in Decrees No. 303/76 and No. 2352/80.

Art. 2o-Prorrógase en DOSCIENTOS SETENTA (270) días corridos, cuenta de la fecha en que se effectivice la transfer a la que se refiere el artículo 1o del presente Decreto, el periodo para la iniciar del proyecto Promote.

Art. 3o-Maintain the validity of the emerging obligations of the Industrial Promotion Contract approved by Decree No. 303/76 and the benefits granted in the terms of Decree No. 2352/80, which shall be used in the form of Tax Credit Bonuses and shall be governed by the provisions of Act No. 23.658 and Decree No. 2054 of 10 November 1992 and its supplementary rules.

Art. 4o-The industrial project referred to in Decree No. 303/76 and No. 2352/80 shall not be considered to be covered by the provisions of Decree No. 2054/92 to the extent that it is established in accordance with the provisions of Decrees No. 311 of 7 March 1989 and No. 1355 of 9 July 1990, within SESENTA (60) working days of the transfer provided for in the present decree.

Art. 5o-It is empowered to the FEDERAL ADMINISTRATION OF PUBLIC INCOME, autarchical entity within the scope of the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICS to enable the respective computed current account and to credit in this the amounts corresponding in accordance with the provisions of Resolution No. 1280 of the MINISTERY of ECONOMY and ARTWORKS and SERVICES dated 11 November 1992. The agency is also empowered to reformulate the theoretical fiscal cost of the Tax on the Value Added in accordance with the applicable law at the time of the entry into force of Decree No. 2054/92.

Art. 6o-Proposals for the General Budget of National Administration to be elevated to the HONORABLE CONGRESO OF NATION should provide for the budgetary quota within which the FEDERAL ADMINISTRATION OF PUBLIC INCOME, autarchical entity within the scope of the MINISTERY OF ECONOMY AND ARTH AND SERVICES PUBLICOS will perform the accreditation in the computer current account corresponding to the project promoted,

Art. 7o-To account for the HONORABLE CONGRESS OF NATION under article 99, paragraph 3, of the NATIONAL CONSTITUTION.

Art. 8o-Contact, post, give to the National Directorate of the Official Register and archvese.- MENEM.- Jorge A. Rodríguez.- Roque B. Fernández.- Jorge M. Domínguez.- Guido Di Tella.- Alberto J. Mazza.- José A. Caro Figueroa.- Raúl E. Granillo Ocampo.- Susana B. Decibe.- Carlos V. Corach.