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December 14, 1999
International Bank for Reconstruction
  and Development
1818 H Street, N.W.
Washington, D.C. 20433
Re:
MEXICO: Loan 7002- ME (Decentralization Adjustment Loan)
Implementation Letter
This letter, with the Annex attached hereto, constitutes the Implementation
Letter defined in Article 1, Section 1.01 (g) of the Guarantee Agreement of even date
herewith between the United Mexican States (the Guarantor) and the International Bank
for Reconstruction and Development (the Bank) for the above-captioned Loan.
Sincerely yours,
Sincerely yours,
UNITED MEXICAN STATES
BANCO NACIONAL DE OBRAS Y
SERVICIOS
   PUBLICOS, S.N.C.
By /s/
By /s/
Authorized Representative
     Authorized Representative
CONFIRMED:
INTERNATIONAL BANK FOR
   RECONSTRUCTION AND DEVELOPMENT
By /s/
Authorized Representative
Date: