EXHIBIT 10.26
                             January 27, 1997


Dr. Henry A. Kissinger
Kent Associates, Inc./
Kissinger Associates, Inc.
350 Park Avenue
New York, New York 10022


Dear Dr. Kissinger:

     Freeport-McMoRan   Inc.  ("FTX")  is  a  party  to  a  consulting
agreement, dated as of December 22,  1988,  with Kissinger Associates,
Inc.  ("Kissinger Associates") and to a second  consulting  agreement,
dated  as  of  May  1,  1989,  with  Kent  Associates,  Inc.  ("Kent")
(collectively,  the  "Kissinger  Consulting  Agreements").  As you are
aware, FTX spun off its ownership interest in  Freeport-McMoRan Copper
&  Gold  Inc.  ("FCX")  to  FTX's  shareholders.   FTX  and  FCX  then
established  a  jointly  owned corporation, FM Services  Company  ("FM
Services"), to manage certain  common  activities on behalf of FTX and
FCX  and  their present and former affiliates  (collectively  with  FM
Services, the "Freeport Entities").

     This letter  evidences  the agreement of Kissinger Associates and
Kent to the assignment of the  Kissinger  Consulting  Agreements to FM
Services effective as of January 1, 1996.  All rights and  obligations
of  FTX  under  the  Kissinger  Consulting Agreements shall be deemed,
effective as of January 1, 1996,  to  have  vested in and to have been
assumed  by FM Services.  All references in either  of  the  Kissinger
Consulting  Agreements  to  FTX shall be deemed to be references to FM
Services.   Although  FM Services  shall  be  solely  responsible  for
exercising and fulfilling  FTX's  former  rights and obligations under
the Kissinger Consulting Agreements, FM Services  may direct Kissinger
Associates and Kent to provide services under the Kissinger Consulting
Agreements   to   any  of  the  Freeport  Entities.   All  duties   of
confidentiality under  the  Kissinger  Consulting  Agreements shall be
owed  to each of the Freeport Entities, and all notices  by  Kissinger
Associates  or Kent under the Kissinger Consulting Agreements shall be
provided to the Chairman or President of FM Services.

     Please execute  the  acknowledgment  blank  below  to confirm the
agreement  of  Kissinger  Associates  and  Kent  to the terms of  this
letter, and please return one executed original of  this letter to the
undersigned for FM Services' records.


                                  Freeport-McMoRan Inc.
                                  Freeport-McMoRan Copper & Gold Inc.
                                  FM Services Company


                                  By:  /s/ James R. Moffett
                                     --------------------------------
                                     James R. Moffett

AGREED TO AND ACKNOWLEDGED
THIS 27th DAY OF JANUARY, 1997.


Kissinger Associates, Inc.
Kent Associates, Inc.

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By:  /s/ Henry A. Kissinger
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       Henry A. Kissinger