ELEVENTH: The CONCESSIONAIRES, their successors or proxies, even when all or some of them be foreigners, as far as this contract is concerned, will be subject to the jurisdiction of the Courts of this Republic in all the negociations whose cause and action take place within its territory, and they never can cite any right of foreigners regarding it (contract) and the affairs relating to it, under any form whatever, and they will have only the rights and means of making them valid which the laws of the Republic grant to Hondurenians; not being able, consequently, to introduce themselves in any way in said affairs the consular agents and foreign diplomats; it being understood that any action or claim thru diplomatic channels, whatever the motive on which it might be founded, be expressly renounced.

TWELFTH: The differences which may occur between the CONCESSIONAIRES and the Government thru interpretation of the terms of this contract, must be submitted to the decision of two amicable adjusters named, one by each side, with power to name a third in case of disagreement, and if they should not be able to agree on this appointment the choice will be made by ballots among four candidates proposed, two each, by the CONCESSIONAIRES and the Government. If either of them should not present candidates within the period which the respective Judge of Civil letters (Juez de Letras de lo Civil) may indicate, this officer will make the choice of said candidates. The arbitrament must be organized in the Capital of the Republic and there carried out, unless the arbiters agree on some other place in the Republic. The decision of the majority will be obligatory for both parties and there will be no recourse against it.

THIRTEENTH: The CONCESSIONAIRES will recognize the jurisdiction of the Laws of Honduras and for the effects of this contract, they also will recognize as the home (office) the capital city of the Republic in which they will always have a legally accredited representative. In case of not having one or in case of his absence without leaving a legal substitute, the Civil Judge of Letters of the First Instance will appoint for them a representative according to the laws of Honduras.

FOURTEENTH: As a guarantee of the compliance (fulfillment) of the obligations which the CONCESSIONAIRES accept by the present contract, they will be obliged to deliver to the National Treasury the sum of TEN THOUSAND DOLLARS AMERICAN GOLD, SIXTY DAYS after the National Congress shall have given its approbation, this sum to be ceded by the CONCESSIONAIRES for the benefit of the State.

FIFTEENTH: The present contract will become void in fact and without the necessity of express declaration (excepting only an Act of God or unforseen event) for any one of the following causes: (a) For failure to deliver on the date indicated the TEN THOUSAND DOLLARS AMERICAN GOLD, to which the preceding article refers; (b) To play (sic) commerce with the goods declared free of duty for the enterprise; (c) For not drilling the wells in the time stipulated in Article 6 of this contract; (d) For transferring the rights and obligations without the approval of the Executive; (e) In general, for failure to comply with any of the obligations which are assumed by the Concessionaries.

SIXTEENTH: For the purpose of proving the Act of God or the unforeseen circumstance to which the previous paragraph refers, the CONCESSIONAIRES will enjoy a period of ninety days from the date on which it may have hap pened. The CONCESSIONAIRES may present all classes of proof, their qualities being left to the prudent arbit (r)ament of the Government. The latter will remember that these proofs may be amplified in the form that it may consider appropriate or which may be practiced by special investigations.

caso

SEVENTEENTH: The Government having declared as proved the fortuito or fuerza mayor" (act or circumstance beyond control) will grant to the CONCESSIONAIRES all the time that the impediment may have endured and the additional period which the Government may deem just in view of the circumstances.

EIGHTEENTH: The CONCESSIONAIRES will present to the Secretary of the Interior, within sixty days following the resumption of work, the notice and proof that they have continued after removal of the impediment. Events occurring outside of Honduras will not be considered as Acts of God or beyond control.

NINETEENTH: It is clearly understood and agreed that this contract will not affect in any manner the rights legally acquired by third parties prior to it. TWENTIETH. The present contract will be submitted to the knowledge of the National Congress, in its regular sessions, and if it be approved by that body, no other person will be able to enjoy from that time in the departments mentioned, any right of those which are conceded to the CONCESSIONAIRES, unless it be thru a contract executed with the Executive and approved by said Congress, in terms identical with the present.

* * *

In testimony of their agreement, they have signed the present contract in Tegucigalpa, April 2, 1919. J. Roman Ramos Valdes, Let the present agreement be placed before the National Congress, thru the proper channels. Let it be communicated. BERTRAND, The Secretary of State in the Office of the Interior, Public Works and Agriculture.—Manuel S. Lopez. Given in Tegucigalpa in the Hall of Sessions, on the 7th. day of April, 1919. Pedro A. Medal, Vice-president; Antonio Bermudez M. Secr'y. J. A. Rivas, Secretary to the Executive Power. Therefore, be it executed: Tegucigalpa, 24th of April, 1919, F. BERTRAND. The Secretary of State in the Office of the Interior, Public Works, and Agriculture, Manuel S. Lopez."

Title II of the Mining Code, to which the contracts are made subject, is as follows:

TITLE II.

OF INVESTIGATING OR PROSPECTING.

Art.-15. The right to examine and dig in lands of whatever ownership in search of mines, may be exercized freely in unfenced lands or those not under cultivation.

Art.-16. To be able to execute works of investigation in unirrigated cultivated lands (terrenos cultivados de secano), permission from the owner or administrator of the estate will be necessary. In case of refusal of the owner or of the administrator, the Judge of Letters of the place will be able to grant or refuse the permission, without further recourse after verbal hearing of the interested parties and, if either of the parties believe it opportune and should request it, of a mining engineer.

Art.-17. The permission granted by the Judge in accordance with the foregoing article, will determine the number of persons who may be employed in the investigation, and it will be understood always under the following conditions: 1st. That the investigation be practised necessarily when there are no crops in the ground.

2nd. That the period of the investigation may not exceed sixty days counting from the date on which the permission was granted.

3rd. That the applicant previously render a bond if the owner of the land exact it to respond for indemnization of all damage that may be caused to the proprietor by the investigation or because of it.

Art.—18. He who may have obtained permission from the Judge to make investigation on a property, may not for any reason, request new permit with reference to that same land.

Art.-19. If, for justified cause, the investigation could not be made in the stated period the permit may be postponed to another opportune time, by virtue of a new decree by the competent authorities.

Art.-20. The Judge may not grant permission for drilling (calicatas) in houses, gardens, orchards, or in any other kind of irrigated properties, nor in unirrigated land that contains trees or vines.

Art.-21. No drilling (calicatas) or other mineral labors may be done at a distance less than forty meters from any building or railroad, nor in the vicinity of land sloping above or below any road or canal, without special permission from the administrative authority, which will grant it if, in the judgment of the respective Engineer, there be no obstacle, and which will dictate the measures of security that the cause may call for. The same (procedure) will be observed when works are to be begun at a distance of less than 100 meters from canals, aqueducts, water-holes, or any kind of spring.

In ports open to traffic (habilitados) no submarine works may be undertaken without permission of the Administrative Authority and report of an expert.

Likewise, and without prejudice to the dispositions of the foregoing paragraph, to execute those works at a distance less than one thousand four hundred meters from fortified points, a permit is necessary from the respective military authorities.

Infraction of this article will be punished by a fine of fifty to five hundred pesos, without prejudice to due indemnization for damages that may be caused.

NICARAGUA.

No petroleum laws have been obtained.

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ART. I. The Nation reserves the right to exploit the natural wealth consisting in petroleum deposits or hydrocarbide gas deposits existing in the territory of the Republic of Panama and which may not have been legitimately acquired by private parties.

ART. II. The Executive Power is hereby authorized to grant permits for the exploration of the sub-soil of any land, lakes, lagoons, and ponds, which may be found in National jurisdiction, for the purpose of discovering any deposits of petroleum or hydrocarbide gases which may exist thereon.

ART. III. The Executive Power is also authorized to make contracts in accordance with the regulations established by the present law for the exploitation of deposits of petroleum or hydrocarbide gases.

ART. IV. The permits which may be granted for the exploration of the subsoil can be issued to persons or companies duly organized and will only last one year, not renewable, to date from the issuing of the permit.

(1) During this lapse of time, nobody except the person or company in whose favor the permit has been issued will have the right to make explorations within the zone referred to therein, for which purpose the boundaries of said zone and its superficial area will be stated in full detail.

(2) The surface area of the land referred to in the permit for explorations can in no case exceed ten hectares.

ART. V. The permits for the explorations will be taxed with .10 of a Balboa per hectare, which sum will be paid in the National Treasury of the Republic before the permit is issued.

ART. VI. Any persons or companies who may discover deposits of petroleum or hydrocarbide gases under the protection of one of the permits issued by the Minister of Finance will immediately notify the said official and will state whether they are prepared to make a contract.

1 Information has been received that a Commission has been appointed to draft a new petroleum law for Panama.