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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) Reduction of
        Urban Community Works of the Promotion Nationale - Schedule
        5 to the Loan Agreement
Dear Sirs and Mesdames:
We refer to paragraph 7 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 paragraph, the Borrower shall take all
necessary measures to reduce the share of the Promotion Nationale's
activities devoted to urban community works in accordance with the
schedule set forth below:
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