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CONFIDENTIAL -5- Enclosure No. 1 Airgram # Dated Mexico, D.F. tract which would not be incorporated into Mexico in the Chamizal tract would be compensated for by cutting to Mexico an equivalent acreage from the territory under the jurisdiction of the United States immediately to the east of Cordova Island. (b) Also, 193 acres of territory under the jurisdiction of the United States in the area immediately to the east of Cordova Island would be cut to Mexico and would be compensated for by an equivalent acreage which would be cut to the United States from territory under the jurisdiction of Mexico in the northern portion of Cordova Island. 3. Finally, the Department of State and the Ministry of Foreign Relations have reached the following supplementary agreement: (a) The lands in the Chamizal tract and in the * zone immediately to the east of Cordova Island which would pass to Mexico would be free of any encumbrance of any kind including any private titles. The land in Cordova Island which will remain north of the relocated river channel and would pass to the United States would also be free of any encumbrance of any kind including any private titles. No payments would be made, as between the two Governments, for the value of the lands which would pass from one country to the other as a result of the relocation of the river channel. (b) The transfer of lands in Cordova Island referred * to in the penultimate sentence of the preceeding paragraph would not require the adoption of any special measures by the Government of Mexico as they are the property of the Government of Mexico and are uninhabited. (c) In the lands which will pass from the United States to Mexico in the Chamizal zone as well as in the area immediately to the east of Cordova Island there are 381 structures and approximately 3,900 residents. All these structures are owned by private individuals with the exception of the Navarro School and the offices of the United States Border Patrol which are in the zone to the east of Cordova Island. Consequently it is recommended that the procedure outlined below be established: CONFIDENTIALEpson Perfection 4870 Photo, 400 dpi, 8 bit, 2,148,689 byte