ANNEX III
                            Schedule of Mexico


I.   The Mexican State reserves the right to perform exclusively,
and to refuse to permit the establishment of investments in, the
following activities: 


1.   Petroleum, other Hydrocarbons and Basic Petrochemicals

     (a)  Description of activities

          (i) exploration and exploitation of crude oil and
 natural gas; refining or processing of crude oil
 and natural gas; and production of artificial gas,
 basic petrochemicals  and their feedstocks and
 pipelines; and,

          (ii) foreign trade; transportation, storage and
 distribution up to and including first hand sales
 of the following goods: crude oil; natural and
 artificial gas; goods obtained from the refining 
 or processing of crude oil and natural gas; and
 basic petrochemicals.

          (b) Legal citation:

          Constitución Política de los Estados Unidos Mexicanos,
Articles 25, 27 and 28 (United Mexican States Political
Constitution, Articles 25, 27 and 28).

          Ley Reglamentaria del Artículo 27 Constitucional en el
Ramo del Petróleo y sus reglamentos (Regulatory Law of
Article 27 of the United Mexican States Constitution
related to Oil, and its regulations).

          Ley Orgánica de Petróleos Mexicanos y Organismos
Subsidiarios (Statutory Law of Petróleos Mexicanos and
its Subsidiaries). 

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                            Schedule of Mexico




2.   Electricity

     (a) Description of activities: the supply of electricity as
 a public service in Mexico, including, except as
 provided in Annex 602.3 of the Energy Chapter, the
 generation, transmission, transformation, distribution
 and sale of electricity.

     (b) Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Articles 25 and 28).

     Ley del Servicio Público de Energía Eléctrica y su
reglamento (Public Service of Electric Energy Law, and
its Regulations)

3.   Nuclear Power and Treatment of Radioactive Minerals

     (a) Description of activities: the generation of nuclear
 energy; the exploration, exploitation and processing of
 radioactive minerals; the nuclear fuel cycle; the use
 and reprocessing of nuclear fuels and the regulation of
 their applications for other purposes; the
 transportation and storage of nuclear wastes; and the
 production of heavy water.

     (b) Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
Articles 25, 27 and 28 (United Mexican Constitution,
Article 25, 27 and 28).

     Ley Reglamentaria del Artículo 27 Constitucional en
Materia de Energía Nuclear (Regulatory Law of the
Aticle 27 of the United Mexican Constitution related to
Atomic Energy).

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                            Schedule of Mexico




4.   Satellite Communications

     (a) Description of activities: the establishment, operation
 and ownership of satellite systems and earth stations
 with international links. 

     (b) Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States, Articles 25
and 26).

     Ley de Vías Generales de Comunicación y sus reglamentos
(General Means of Communication Law)

5.   Telegraph Services

     Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
     Articles 25 and 28 (United Mexican States, Articles 25 and
     28)

     Ley de Vías Generales de Comunicación y sus reglamentos
     (General Means Communication Law)

6.   Radiotelegraph Services

     Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
     Articles 25 and 28 (United Mexican States Political
     Constitution, Article 25 and 28)

     Ley de Vías Generales de Comunicación y sus reglamentos
     (Genral Means of Communication Law).

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                                 ANNEX III
                            Schedule of Mexico



7.   Postal Services

     (a) Description of activities: operation, administration
 and organization of first class mail.

     (b) Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Articles 25 and 28).

     Ley del Servicio Postal Mexicano (Mexican Postal
Service Law)

8.   Railroads

     (a) Description of activities: the operation,
 administration and control of traffic within the
 Mexican railway system; supervision and management of
 railway right-of-way; operation, construction and
 maintenance of basic railway infrastructure.

     (b) Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Articles 25 y 28).

     Ley Orgánica de Ferrocarriles Nacionales de México
(Statutory Law of Mexican Railroads).

9.   Issuance of Bills (currency) and Minting of Coinage 

     Legal citation:

     Constitución Política de los Estados Unidos Mexicanos,
     Articles 25 and 28 (United Mexican States Political
     Constitution, Articles 25 and 28).

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                            Schedule of Mexico



     Ley Orgánica del Banco de México (Statutory Law of Banco de
     México).

     Ley Orgánica de la Casa de Moneda de México (Statutory Law
     of the Mexican Coining Agency).

10.  Control, Inspection and Surveillance of Maritime and Inland
(Lake and River) Ports

     Legal citation:

     Ley de Navegación y Comercio Marítimo (Commercial and
     Navigation Law), Articles 43 and 47. 

     Ley de Vías Generales de Comunicación (General Means of
     Communication Law) Article 272.

11.  Control, Inspection and Surveillance of Airports and
Heliports

     Legal citation:

     Ley de Vías Generales de Comunicación (General Means of
     Communication) Article 327.

The legal citations are provided only for transparency purposes.

II.  Deregulation of Activities Reserved to the State

1.   The activities set out in Section I are reserved to the
Mexican State, and private equity investment is prohibited under
Mexican Law. Where Mexico allows private investment to
participate in such activities through service contracts,
concessions, lending arrangements or any other type of
contractual arrangement, such participation shall not be
construed to affect the State's reservation of those activities.

2.   If Mexican laws or regulations are amended to allow private
equity investment in an activity set out in Section I, Mexico may 
impose restrictions on foreign investment

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                                 ANNEX III
                            Schedule of Mexico



participation notwithstanding Article 1102 and describe them in
Annex I. Mexico may also impose derogations from 1102 on foreign
equity investment participation when selling an asset or
ownership interest in an  enterprise in activities set out in
Section I and describe them in Annex I.


III.  Activities Formerly Reserved to the Mexican State

     Where an activity was reserved to the Mexican State on
January 1, 1992 and is not reserved to the Mexican State upon
entry into force of this Agreement, Mexico may restrict the 
initial sale of a state-owned asset or an ownership interest in a
state enterprise that performs that activity to enterprises with
majority ownership by Mexican nationals, as defined by the
Mexican Constitution. For a period not to exceed three years from
the initial sale, Mexico may restrict the transfer of such asset
or ownership interest to other enterprises with majority
ownership by  Mexican nationals, as defined by the Mexican
Constitution.  Upon expiration of the three year period , the
obligations of national treatment set out in Article 1102
(National Treatment) shall apply. This provision is subject to
Article  1108 (Reservations and exceptions).