Official Gazette for March 14, 1973: THE PRESIDENT and the respective managements of the country’s three airline companies agreed that in the interest of the public and for the security of the country, only one airline should operate the international and domestic nights. At a meeting presided over by the President in Malacañang and attended by representatives of all government agencies involved in their operations and the three airline companies, the President ordered that until a definite decision is forged on April 1, the three airlines—Philippine Airlines, Filipinas Orient Airways and Air Manila—will continue operating as usual. The President asked the airlines officials to submit their proposal to Secretary of Defense Juan Ponce Enrile, who is currently the chairman of the board of the Philippine National Bank to which the FOA and the AMI are heavily indebted. The President also; directed the PNB and the NIDC to continue giving the FOA and the AMI financial support for their continuous operations on condition that whatever income they make will be put in special account for the liquidation of their obligations. He said that the government is determined to improve public service and preserve the security of the country.
THE PRESIDENT promulgated Presidential Decree No. 150, amending Republic Act No. 4860 (Foreign Borrowing Act), authorizing the President in behalf of the Republic, to contract foreign loans and credits, including supplier’s credit and deferred payment arrangements. The new decree also empowers the President to enter into and conclude bilateral agreements involving other forms of official assistance, with governments of foreign countries with whom the Philippines has diplomatic or trade relations or which are members of the United Nations, or with reputable international organizations or non-governmental national or international lending institutions, or firms extending supplier’s credit or deferred arrangements. Under these contracts, the government is authorized to undertake—through any government office, agency or instrumentality, or government-owned or controlled corporations-industrial agricultural or other economic and social development projects which may from time to time be recommended by the National Economic and Development Authority and approved by the President.
THE PRESIDENT promulgated Presidential Decree No. 148 imposing a tax of 15 per cent on interest on foreign loans. The decree amends Section 24(b) (1) and 53(b) and (2) of the National Internal Revenue Code. The President also promulgated Presidential Decree No. 149 amending Sections 137 (b) and 156, Title IV, of the National Internal Revenue Code by specifying tax rates on cigars and cigarets. Under Presidential Decree No. 148 the government will impose a 15 per cent tax on interest on foreign loans. It states that in order to attract loans from foreign countries, an appropriate tax on their income should be levied on interest earned and remitted abroad. Presidents Decree No. 149, on the other hand, amends a section of the National Internal Revenue Code pertaining to specific taxes on cigar and cigarets Promulgation of P.D. No. 149 was prompted by a study which showed that the rising cost of cigar and cigaret production leaves the manufacturers no more leeway for any future price adjustments in selling prices. The study also showed that the maximum amount of manufacturers and importers bond provided for under Section 156 of the NIRC has been found to be too numerous and cumbersome on the part of the taxpayers concerned.
BUREAU OF INTERNAL Revenue said that income tax returns filed on or before April 16 this year will not be covered by the revenue code amendments contained in Presidential Decree No. 69 since only incomes earned in 1972 will be declared. The BIR issued the clarification after the approval of Revenue Memorandum Circular No. 2-73 containing the amendments provided for under Presidential Decree No. 69. The circular provides that only the provision imposing a graduated tax on the gross income of Filipinos residing abroad has become effective as of Jan. 1, 1972. The circular, approved by Secretary of Finance Cesar E. A. Virata, directed all BIR officials and fieldmen to conduct a systematic information campaign to assist income tax filers in the filing of their income tax returns to avoid any misunderstanding on the part of the taxpayers in the applicable provisions of Presidential Decree No. 69.
PHILIPPINE MEDICAL Care Commission (PMCC) advised all government hospitals to submit immediately their respective programs of expenditures of their income from medicare. Programs of expenditures are to be approved by the PMCC before they take effect to provide for upgrading and expansion of the facilities, maintenance, and operation of the government hospitals. Under Republic Act No. 6111, otherwise known as the Philippine Medical Care Act of 1969, the income of a government hospital from medicare is to be constituted into a revolving fund for the upgrading and expansion of its facilities and for the maintenance and operations subject to the approval of the Department of Health. In compliance with the directive, the PMCC has issued the following guidelines for government hospitals: 1) Deposit the earnings from medicare in interest-bearing government depository banks doing
The Americans are openly pessimistic of our capability to stop the Muslim rebellion in the south.
Amb. [Henry] Byroade has frankly said so in our conversations with him. He believes the only way to settle it is to negotiate on a higher level with Malaysia and Sabah.
We will do so and negotiate on the lower levels as well.
We have misgivings about the capability of Sabah Chief Minister Tun Mustafa or Malaysian Prime Minister Tun Abdul Razak to stop the Muslim rebels.
And I am sure that only the threat of extinction will force the Muslims to negotiate. So we still have to fight our battles and win them.
There is one big difference (of this conflict) from the Vietnam war—the willingness of the Filipino civilian population to fight the rebels. The Vietnamese were unwilling to do so. Thus the U.S. was compelled to formulate its Vietnamization policy. And had a difficult time making it work.
Here it is not only the military that wants to fight the rebels but the civilians as well. In Cotabato alone about 28,000 civilians want to fight the rebels and are demanding arms and ammunition. In Sulu and Basilan as well as Zamboanga del Norte and del Sur they have organized BSDU’s [Barrio Self-Defense Unit] who are demanding to be armed.
In Cotabato the civilians have been fighting the rebels before Mar. 1, 1973 when the current fighting started.
business in the Philippines, preferably in the Philippine National Bank or in any of its branches or agencies; 2) Formulate plans and programs for the upgrading and expansion of their facilities and for other necessary improvements; and 3) Submit to the PMCC for approval these plans and programs.
THE PRESIDENT conferred the ancient order of Sikatuna, rank of datu, on former Senate President Protempore Camilo Osias, in grateful appreciation for his “long and substantive service to the nation, particularly his lasting contribution to the educational system.” The awardee, who will celebrate his 84th birthday anniversary on March 23, was almost choked with emotion when he accepted the decoration before a large crowd composed of high government officials, close friends and admirers, at the Malacañang Reception Hall. The President described Mr. Osias as one of the pillars of the Philippine independence movement who, together with the late President Quezon, President Osmeña, President Roxas and Senator Recto, worked for political independence and later served his government faithfully. The President recalled that Mr. Osias was the first Filipino superintendent of schools, the first Filipno scholar to the United States when he was only I6 years old, the first director of public schools, the first secretary of education, and resident commissioner to Washington. The President said that the granting of the award to Mr. Osias was necessary “to manifest and demonstrate our gratitude to those who suffered and sacrificed in the name of the Republic.
THE PHILIPPINES shipped to Union of Soviet Socialist Republics (USSR) 18,000 long tons of copra valued at $4.5 million. The copra export approved by the Department of Trade and Tourism, was the biggest export to Soviet Russia since the Philippines started commercial and industrial relations with communist and socialist bloc countries. The bulk of Philippine exports to socialist and communist countries consist of Portland cement, plywood and veneer, crude coconut oil in bulk, desicated coconut, copra and woodenware.
I, also, have to watch out against the deliberate effort of the military to prevent a peaceful settlement as shown by the antagonism of Commodore [Gil] Fernandez, Sowescom [Southwest Command] commander, to Tony [Antonio] Raquiza whom I sent to Sulu with my written authority and safeconduct pass. He threatened to arrest him. Even Sec. of National Defense Juan Ponce Enrile was inclined to feel offended for the alleged utterances of Raquiza against his policy of all-out war and the claim he (Raquiza) will replace him.
The truth is there should be no military solution but our military should compel a negotiated peace.
In a touching ceremony I awarded the Ancient Order of Sikatuna, Rank of Datu to Ex. Senator and Secretary Camilo Osias before the public officials of La Union.
Met Mark Fear of Kuhn Loeb a leading New York Investment firm.
Investments continue to pour in.
I have ordered that only PAL [Philippine Airlines] will be the airline operating both in domestic and international lines and routes. This was the result of the conference this morning.
I attach the outline of results of conference.
I have received the report of Tony Raquiza whom I sent to Sulu to determine if we can peacefully negotiate a settlement of the fighting. He thinks we can. Conferred with him over dinner.
Received the report of Gen. [Fabian] Ver on the activities of Ninoy [Benigno] Aquino [Jr.] inside his cell including the preparation of subversive propaganda.