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                    KINGDOM OF MOROCCO
September 27, 1996
International Bank for
  Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
    Re: Loan No. 4026 MOR
       (Social Priorities Program - Coordination and Monitoring
       of Social Programs, and Labor Promotion Project)
       Project Indicators - Schedule 5 to the Loan Agreement
Dear Sirs and Mesdames:
We refer to paragraphs 1 (a) and 2 of Schedule 5 to the Loan Agreement
of even date hereof between the Kingdom of Morocco (the Borrower), on
the one part, and the International Bank for Reconstruction and
Development (the Bank), on the other part, for the above-captioned
Project. We hereby confirm that, for purposes of said paragraphs, the
Project Indicators set forth in the attached Annex shall be used to
monitor progress in the carrying out of the Project.
Very truly yours,
KINGDOM OF MOROCCO
By _____________________
  Authorized Representative
CONFIRMED AND AGREED:
INTERNATIONAL BANK FOR
  RECONSTRUCTION AND DEVELOPMENT
By _________________________
   Regional Vice-President
   Middle East and North Africa