MTOrrCAN nSHSRY LEGISLATION 



Concerning paragraphs IV and V, the prior approval of the Ministry of Treasury and 

 Public Credit shall be indispensable whenever the actions taken in the use of these powers 

 entail the expenditure of public funds, compromise public credit or affect public properties 

 01- those in the custody of the Government, 



CHAPTER III 

 Concessions, permits and contracts. 



Article 8. In order to construct, establish or exploit general ways of communication 

 or any type of services connected with them, it shall be necessary to have a concession or 

 permit fi^m the Federal Executive, through the Ministry of Coinmunications, and subject to 

 the precepts of tliis Law and its regulations. 



The construction, establishment or exploitation of general ways of communication shall 

 be subject to a general plan in accordance with the necessities of the national economy, 

 which shall be made known to the public and for which purpose the Ministry of Communications 

 shall publish, within the first two weeks of the month of January of each year, the corres- 

 ponding work program which must be in accordance with the following general bases: 



Article 12. The concessions for the construction, establishment or exploitation of 

 general ways of ccuinunication shall be granted only to Mexican citizens or to organizations 

 established in accordance with the laws of the country. 'iShen organizations are concerned, 

 it shall be established in the respective document that in case there are or in the future 

 may be one or more foreign, members, these shall be considered as nationals with respect to 

 the concession, obligating them, in matters referring to the concession, not to invoke the 

 protection of their Governments, under penalty, if they do so, of losing in favor of the 

 Nation, all the property acquired for the construction, establishment or exploitation of 

 the way of communication, as well as the other rights granted them by the concession. 



Article 13. Individuals or companies to whom is granted a concession or permit to 

 construct or exploit general ways of communieation shall themselves carr^,' out such con- 

 struction or exploitation and they may not, under any circumstances, organize associations 

 to which they cede the rights acquired in the concession or permit. 



Nevertheless, the Ministry of Communications sliall be pennitted to authorize cession of 

 the rights and obligations stipulated in the concession or permit, when in its opinion it 

 may be advisable, as long as they have been in effect for a period of not less than five 

 years and the holder has fulfilled all his obligations. 



Article 14, Those interested in obtaining concessions or ptrmits to construct, 

 establish or exploit general ways of communication shall present a request to the Ministry 

 of Communications, in accordance with the precepts of this Law and its regulations, accompany- 

 ing it Tivith the studies referred to in article 8. 



Article 17. The concessionnaires, as a guarantee of fulfillment of their obligations, 

 shall make the deposit or post the guarantee fixed by the Ministry of Communications. 



Article 18. In no case will it be permitted, directly or indirectly, to cede, mortage, 

 nor in any manner encumber or transfer the concession, the rights granted in it, the way of 

 canmimication, buildings, stations, auxiliary services, agencies or accessories, to any 

 foreign Government or State, nor to admit then as members of the concessionary company. 



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