Written in both Spanish and English, this document details each of the nine Articles of the Loan Agreement for Rural Primary Education made between the U.S. and Guatemala through the Agency for International Development (AID) in 1975. The Articles address the following: the loan; terms of repayment, interest, and payment procedures; conditions precedent to disbursement; general covenants and warranties; special covenants; procurement; disbursements; cancellation and suspension; and miscellaneous. As described in Annex I, the Project consists of a coordinated program to introduce basic reforms in the rural primary education systems of the Western Highland and Eastern Regions of Guatemala by stressing the problem solving approach to learning and including the following activities: large scale in-service training program for supervisors, directors, teachers, and other technicians; expansion of school facilities and the construction of new schools where considered essential; procurement of teaching equipment, materials, and textbooks necessary to support the new teaching methodology; and development of a research and evaluation unit responsible for on-going curriculum reform and various studies to improve the quality and relevance of the primary education process. Costs are presented in a summary table divided into qualitative and quantitative components (of the total project cost, $7,000,000 will be financed by the loan and Guatemala will contribute Q4,000,000 in new funds and Q1,700,000 in recurring costs to the Project). (JC)