The government will make prompt return of the railways to private management, details of which are to be arranged.

Ten per cent (10 per cent) annually of the gross receipts of the railways is to be set aside and paid over currently as herein provided towards the government debt service including the railway debt, and proper provision is to be made therefor in the rates by surcharge or otherwise.

Until the full cash payment of current interest on the bonds is resumed the net operating revenues of the railways are to be added to the fund provided for the government debt service and thereafter are to be applied to the service of the railway securities.

The Mexican Government recognizes the obligation to restore the railroads, including rolling stock, to the same condition that they were in when the Government took them over and will make every effort to do it (viz., such restoration) as soon as possible.

Railway notes that have matured or are about to mature will be extended for a reasonable length of time.

6. RECOGNITION OF OBLIGATIONS

The Mexican Government recognizes all obligations assumed by it, either direct or by way of guarantee and all provisions of the contracts and pledges under which the several bonds were issued, these provisions to be in full operation at the end of five years and prior thereto will be subject to the modifications herein provided for.

7. RESUMPTION OF RIGHTS

The bondholders will resume all their contractual rights if for any reason this plan is not fully carried out during the period of five years.

8. COMMISSION

Any difficulties that may arise in connection with the execution of this agreement will be settled by a special commission nominated by both parties.

This agreement is subject to the ratification of the President of Mexico. June 16, 1922.

SCHEDULE OF OBLIGATIONS—(Continued)

23,000,000.

24,740,000.

National Railroad Prior Lien 42s.
National Railroad 4s, 1951.

5,850,000. Mexican International Prior Lien 42s.
Mexican International Prior Lien 4s, 1977.

4,206,500.

NOTE: In the foregoing schedule provision has not been made for (1) such bonds of the Huerta issues (following so-called issue "A") which are held by banks as collateral; nor (2) for the bonds of the so-called DeKay issue which the Government does not recognize.

To the above may be added such other issues as may be agreed on by the Minister and the International Committee as provided in the agreement. Amounts are stated according to latest available information and are given in gold dollars.

Miscellaneous (including hospitals, dispensaries and kindred charitable institutions).