April 19, 1973

[1] Official Gazette for April 20, 1973: THE PRESIDENT has directed the immediate implementation of a provision in the new Constitution requiring educational institutions to be solely owned by Philippine citizens or Filipino-controlled corporations to effect the desired changes and reforms in the country’s educational system. The President’s order was contained in Presidential Decree No. 176. Aside from the requirement that all educational institutions be vested in the citizens of the country, the presidential decree also provides that membership in the governing bodies or boards of such educational institutions shall be limited to Filipino citizens. Henceforth, no educational institution shall be established exclusively for aliens, nor shall any school offer any curriculum exclusively for aliens. The enrolment of aliens in any school is limited to not more than one-third of the total enrolment therein. Full compliance with this requirement in any school shall be effected not later than the beginning of the schoolyear 1976-1977. These provisions, however, shall not apply to schools established for foreign diplomatic personnel and their dependents and, unless otherwise provided by law, for other foreign temporary residents. FRUIT TREES and bamboo plants are exempt from real property taxes unless they are grown principally for commercial purposes. This clarification was issued by Secretary of Finance Cesar E. A. Virata following reports that landowners are planning to cut down trees grown in their lands because all fruit trees will be subject to taxation under Presidential Decree No. 76. Secretary Virata stressed that fruit trees and bamboo plants not grown for commercial purposes are not subject to real property tax under the old law or even under Presidential Decree No. 76. THE PRESIDENT initiated a massive tree-farming program to prevent soil erosion and floods, and pinpointed the watershed areas of Ambuklao and Binga as pilot projects in the nationwide reforestation campaign. The President made this move after expressing grave concern over reports that the water level in the hydro-electric power projects in Northern Luzon has been going down and might trigger power problems as far south as Greater Manila. In a conference with forestry officials, Northern Luzon governors and officials at the Mansion House in Baguio City, the President stressed the necessity of the tree-farming program because of the continuous deforestation of the country’s forest due to unscrupulous logging and kaingin. He called on the people to coordinate in this massive tree-farming program. THE PRESIDENT ordered the release of P2 million for the improvement of the water system of Baguio City, following reports of a serious water shortage in the country’s summer capital. The President made the order of release to the city government with the condition that it will turn over one-half of the amount to the National Power Corporation in partial settlement of its electric power and light bills. The President assured the Baguio City officials that the national government is interested in their problems and that the release of P2 million should help improve the city’s water and sewerage system. BUREAU OF INTERNAL Revenue officials and men who divulge trade secrets will be penalized by an imprisonment of not less than six months nor more than five years or both or a fine of not more than P5,000. This warning has been issued by Secretary of Finance Cesar E. A. Virata as he called the attention of all BIR officials and men to Section 347 of the National Internal Revenue Code as amended by Presidential Decree No. 69. “Trade secrets” are spelled out as information regarding the business, income, or inheritance of any taxpayer, the secret operation, style of work, or apparatus of any manufacturer or producer, or confidential information regarding the business of any taxpayer. PLANT AND SOIL experts have discovered that the use of potassium in lowland rice production has yielded excellent results in terms of soil fertilization. This new boost to rice production was underscored by the Bureau of Plant Industry. The seminar was held in San Agustin, Pili, Camarines Sur. Dr. S. K. de Datta, agronomist of the International Rice Research Institute, reported the dramatic response of high-yielding rice varieties to potassium fertilization in cooperative experiments conducted in various BPI stations. Dr. de Datta added that in areas where continuous rice cropping is done, the application of complete fertilizers (NPK) is needed to sustain high yield grains.

[2] Official Gazette for April 21, 1973: THE PRESIDENT has formulated plans to revitalize the country’s tobacco and coconut industries in a move to boost their dollar earning capabilities. In two separate moves, the Chief Executive directed the Philippine Tobacco Administration to immediately draw up its program for the purchase of native leaf tobacco starting next month and created a three-man ad hoc committee to pave the groundwork for the con­solidation of the country’s coconut agencies into one body. The President’s directive to the PTA is aimed at stabilizing the prices of native tobacco leaf to protect farmers from the fluctuations in domestic prices of the commodity. The ad hoc committee on the other hand was directed to study the mechanics of stabilizing a consolidated Philippine coconut administration which is calculated to revitalize the country’s top foreign earner. It has been noted that proliferation of coconut agencies with overlapping functions has done more harm than good to the industry. THE GOVERNMENT has now collected a total of P750,059,700 from five tax amnesties, according to the Department of Finance. The figure is contained in the latest report on revenue collections submitted to Secretary of Finance Cesar E. A. Virata by the Bureau of Internal Revenue and the Bureau of Customs. Topping the collections were tax amnesty on previously untaxed income or wealth which amounted to P538,316,327. This amount was paid by 137,579 individuals and corporations who took advantage of the amnesty. Collection from another tax amnesty (Presidential Decree No. 157 which provides amnesty of income for the taxable year 1972) have now reached P172,102,426. The Bureau of Customs on the other hand, collected P19,429,295 from previously untaxed or improperly taxed motor vehicles. The Government also collected P6,852,290 from previously untaxed or improperly taxed goods in commercial quantities. The tax amnesty on contested assessments netted the Government P13,359,360. BUREAU OF INTERNAL Revenue issued several clarifications in the interpretation of the new Internal Revenue Code. These are: 1) A person who is both a certified public accountant (CPA) and lawyer is subject to two fixed taxes if he is engaged in the practice of both profession. 2) A public utility operating under a legislative franchise is not subject to income tax under Presidential Decree No. 69. 3) Quarterly returns are actually intended to reflect correct figures although a percentage leeway for errors is provided for. Inventories must be actual, not estimated. 4) The two per cent common carrier’s tax is based on gross receipts. The taxable gross receipts cannot include the two per cent tax itself or any other tax paid by the carrier. All common carriers are subject to Income tax. 5) Claims for representation expenses must be justified and only taxpayers whose work requires representation can claim for such expenses. However, representation expenses not exceeding P1,000 or 5 per cent of taxpayer’s gross income whichever is lesser need not be justified. 6) The tax on foreign income, of non-resident citizens is based on gross and on business, the basis is on net computed in accordance with the provisions of Title II. 7) The conversion rate of the foreign income of non-resident citizens for 1972 is P6.70. 8) The interest income of foreign companies from money market placements of temporarily idle funds is subject to percentage tax. THE PRESIDENT appointed nine officials for three examining boards and one director for the Export Processing Zone Authority. The three examiners boards were the board of examiners for social welfare, the Philippine Licensing Board for contractors, and the Board of Examiners for Geology. The new appointees were: 1) For the board of examiners for social welfare: Guillerma L. Batto, chairman; Mrs. Editha G. Mar-tillano, Miss Teresita L. Silva, and Sister Amelina Villegas, members. 2) For the Philippine Licensing Board for Contractors: Eduardo Escobar, senior member, promoted to chairman of the board; Quintin K. Calderon and Vicente Esguerra Jr., members. 3) For the Board of Examiners for Geology: Oscar A. Crispin and Generoso R. Oca, members. 4) For the Board of Commissioners of the Export Processing Zone Authority: Rolando P. de la Cuesta, member.

[3] Official Gazette for April 22, 1973: THE PRESIDENT directed the Department of Local Governments and Community Development to stop the suspension or dismissal of local officials by provincial governors without his prior approval. The Chief Executive issued the directive in Baguio City after receiving reports that some provincial governors have been suspending municipal officials without corresponding charges being filed against them. In issuing the directive, the President stressed he wanted to prevent possible disruption of essential services in the local government level. He explained that the country cannot afford a breakdown in the administrative machinery at this time when the development programs are being rigorously pursued down to the grassroots level. DEPARTMENT OF FINANCE said it expected government revenue to increase further with the automatic abolition of many tax exemption laws by Presidential Decree Nos. 34 and 69. In the past, the Government had lost some P400 million annually because of the proliferation of tax exemption laws granted by Congress. Secretary Virata also said that the National Internal Revenue Code, as amended by Presidential Decree No. 69, abolished the grant of tax exemption on the payment of compensating tax except on the following cases: 1) Those enumerated under Section 190 of the Tax Code; 2) Exemption granted under the Investment Incentives Act, Export Incentives Act and R.A. No. 5490; 3) Those granted in pursuance of or in compliance with international treaties or commitments, such as ADB-RP Host Agreement (1966), the 1947 convention on privileges and immunities of the United Nations and its specialized agencies, the United States Agency for International Development-RP Agreement, the 1947 Military Base Agreement, and other similar treaties or commitments; and 4) Those that may be granted by the President upon recommendation of the NED A in the interest of economic development. DEPARTMENT OF FINANCE announced that a bigger share of the Government’s tax money will be channeled to accelerate economic and social development projects. The announcement was made as Secretary of Finance Cesar E. A. Virata noted with satisfaction the increase of percentage of the national Government’s tax effort. Secretary Virata said that emphasis will be placed on farm-to-market roads and projects so that farmers will not meet difficulties in marketing their products and thus increase not only their income but also their purchasing capacity. EFFECTIVITY of several tax ordinances enacted by local govern­ments, considered unjust, oppressive and contrary to national economic policies, have been suspended by the Department of Finance. Secretary of Finance Cesar E. A. Virata said that some tax ordinances passed by various municipalities are clear cases of multiple taxation. Among the suspended tax ordinances were those passed by: 1) A suburban town imposing a graduated fixed license tax on a certain kind of business, the rate of which was 500 per cent higher than those prescribed by adjacent cities and municipalities. 2) A municipality in the South increasing the production tax on a manufacturing firm to as much as 2,000 per cent of the original tax being levied. 3) A municipality in Central Luzon imposing different kinds of taxes on a certain kind of business, which if added together, would amount to a staggering amount. PHILIPPINE RICE prices have remained the cheapest in the world despite an upward price spiral in the international rice market caused by an acute worldwide rice shortage. National Grains Authority Ad­ministrator Jess Tanchanco disclosed that rice prices in the United States, Europe and Asia have increased to more than twice the price of rice in the Philippines. The NGA administrator said that the price of rice in the United States has risen to about $300 per metric ton; in Egypt and Italy, $280 per metric ton; in Thailand, from $150- to $180 per metric ton; and in Pakistan, from $150 to $260 per metric ton. On the other hand, he pointed out, the retail price of rice in the Philippines only from P1.00 to P1.25 per kilo, while in other parts of the world the cost of rice is more than P2.00 per kilo. The worldwide shortage of grains, he added, coupled with the upward price movement in the international market, is expected to add to the cost of rice importations by the Philippines. However, despite this added cost of importations, rice prices in the Philippines will still remain within the price ceiling of P3.00 per ganta set by law, Mr. Tanchanco said.

[4] Official Gazette for April 24, 1973: THE PRESIDENT was apprised by the Trans World Airlines’ recognition of the tourism potentials of the Philippines which it has included in the “Getaway Orient Tour Series” for the first time. Joseph L. Brumit, TWA Vice-president, presented to the President a brochure on the $4.2 million orient tour program during a courtesy call in Malacañang. The program, which started last month, is expected to draw more tourists to the country. It features three tours and year-round monthly departure from the United States of at least 2,000 tourists yearly. The President expressed gratitude for the program and was confident that it will boost local tourism. THE NEW SOCIETY has given the country a new image that is winning the respect and admiration of neighboring Asian countries. Department of Foreign Affairs Secretary Carlos P. Romulo made this assessment during a panel discussion on the 6th ASEAN conference of foreign ministers held in Pattaya, Thailand, last April 16-18. Secretary Romulo said the fact that the Asian Forum, which is a proposal of the President, was unanimously approved showed “the confidence and respect that our Southeast Asian colleagues have in our New Society.” On the matter of the Asian Forum, Mr. Romulo stated that its approval was the outstanding achievement of the conference. The Forum, initially called the All Southeast Asian Nations Conference, will discuss matters of vital interest to the region, including the establishment of political and economic stability and social tranquility in this area of the world. INFORMATION SECRETARY Francisco S. Tatad called on the trained manpower of the country to share its expertise with the rest of the people in order to accelerate national development. Speaking at the opening day of the Rural Broadcasting Week in Pasig, Rizal, the Secretary said the progress of the nation can be achieved fastest through a “share of expertise” program along with the fundamental “share the wealth” program. He asked the farmers to show their children pride in their own toil so that they would take up work, not as a punishment for the inferior or the unfortunate but as the self-expression of those who desire to create their own future. Paying a tribute to the rural broadcasters for choosing what he called “a real vocation in the service of our people,” Mr. Tatad lauded the program “Sanggunian sa Himpapawid” which was launched last December by the Department of Public Information through the Rural Broadcasters Council for agricultural workers. He said that despite the various dialects and geographical barriers that divide the masses, the rural broadcasters have been able to communicate to the people, because “theirs is a message of hope and salvation.” FOR 11,927 farmers in the country, everything, including the meaning of the New Society, revolves around the plow and a piece of priceless document—the land transfer certificate. This number of tenant-tillers has received such certificates since the promulgation of the historic presidential decree on agrarian emancipation. A total of 412,619 tenant-tillers, who have been identified and interviewed, will soon be granted the same certificates. These official figures are included in the latest report which was submitted to the President by the Department of Agrarian Reform Secretary Conrado F. Estrella. The report also indicated that the parcellary mapping of lands with areas of 100 hectares and above had been completed and the sworn statements of 6,331 landowners in 33 provinces had been taken. PERSONS INVOLVED in swindling and other crimes of deceit punishable under Article 315 and 316 of the Revised Penal Code will be arrested and detained. The President issued this directive in General Order No. 29 which amends General Order No. 2, dated September 22, 1972. Swindling or estafa, as defined under articles 315 and 316, involves crimes committed by any person who shall defraud another through unfaithfulness or abuse of confidence, false pretenses or fraudulent acts and means. Deceitful acts covered by the articles including the disposing of real property by any person who pretends to be the owner; the disposing of property falsely represented as free from its lawful possessor; the execution of fictitious contracts; the acceptance of compensation for services not rendered; and the disposing of properties by surety in a bond. MANUFACTURERS HANOVER Trust, a large US-based banking institution, offered to form a consortium of American and European banks to extend a $100 million loan to finance some priority imports of the Philippine government. The offer was made to the President by Mr. Tristan Beplat, senior vice president of Manufacturers Hanover Trust, who was with two groups of American businessmen who called on the Chief Executive. The American businessmen informed the President of plans to expand investment in the country’s development program. They also offered to renegotiate on easier terms the reconstruction loan granted to the Philippines in 1970 and to extend further credit for the modernization of the country’s communication facilities. BUREAU OF CUSTOMS collectors are now authorized to accept and process export documents and to allow immediate loading of export products except sugar and copra in their respective ports. This was announced by Customs Commissioner Rolando Geotina even as he ordered the holding of an intensive on-the-job training of customs collectors and examiners on the latest export regulations and procedures. The customs head warned customs personnel against any form of harrassment against exporters or undue delay in the processing of export .documents. LAND APPLICANTS in far-flung areas of the country need no longer travel all the way down to Manila to follow up the verification and approval of land survey applications. The first groups to rid themselves of this time-consuming procedure included the residents of Region IX of the lands bureau in Zamboanga City. The signing of the land survey applications was held in simple ceremonies attended by local officials, district land officers and prominent Zamboanga residents. ROLE OF THE country’s more than 125,000 farmers in the New Society will be the highlight of the farmers’ forthcoming convention in Baguio City from May 9 to 13. The three-day convention of the Federation of Farmers’ Association of the Philippines, Inc., which is under the auspices of the Bureau of Agricultural Extension, will have for its main speaker Secretary of Information Francisco S. Tatad, Secretary Arturo R. Tanco of the Department of Agriculture and Natural Resources, National Grains Authority Administrator Jess Tanchanco and Secretary Jose A. Roño of the Department of Local Governments and Community Development. Some 400 delegates and observers representing the country’s farmers are slated to attend the FFAP’s 9th convention at the r Teachers’ Camp in Baguio. FFAP National Chairman Lucio A. Lim said that the convention theme is doubly significant in that the farmers are now free from the “bondage of the soil.” “They should be acquainted with the roles expected of them as a new breed of farmers under the New Society,” he added.

[5] Official Gazette for April 26, 1973: THE PRESIDENT sought a coordinated effort by the Government, management and labor to solve the country’s unemployment problem in order to complement the successful land reform and peace and order programs of the New Society. The Chief Executive, in addressing the opening session of the three-day tripartite labor congress, also cited the need for a corollary program to build the competitive edge in local products through better skills and craftmanship. In seeking for a new social contract wherein the individual, the laborer, the employe and the lowest class will be considered an important element in society, the President outlined the following policies: 1) All energies and resources of both Government and the private sector will be focused on the paramount goal of national development. 2) Employment is a top priority objective of social and economic planning. 3) Industrial peace will be maintained to make possible the fullest use of the productive energies of the people. 4) Efforts will be exerted to improve working conditions of employes and laborers. THE GOVERNMENT has released P1.5 million for the “small fishermen’s credit fund.” An additional outlay of P10 million is also expected to beef up this non-collateral financial assistance to small fishermen. The release of the outlay came a few days after the President directed the creation of cooperatives for the country’s small fishermen. Under the experimental program, small fishermen have been able to avail themselves of loans (at an average of P5,000 each without collateral) after meeting two conditions, namely: 1) That the fishermen of an area organize themselves into a cooperative which would serve as their guarantor, collection agency and marketing outlets; and 2) That they will submit to close supervision by government technicians who would see to it that the loan proceeds are used properly. To finance the pilot scheme, the Government released a total of P3.5 million to initially form the small fishermen’s credit fund. The three government agencies which chipped in to raise the P3.5 million are the Department of rural banks of the Central Bank, the DANR and the Agricultural Credit Administration (ACA). THE PRESIDENT called on the Asian Development Bank to establish multi-lateral forum to safeguard developing nations against the harmful effects of realignments among powerful currencies. He said that such a forum should be consulted before monetary decisions affecting world trade are made, and should also set up means for absorbing currency losses caused in the developing nations by such monetary decisions. The President made this appeal in welcoming more than 100 finance ministers and senior officials from 40 countries attending the 6th Annual Meeting of the ADB Board of Governors at the ADB headquarters in Pasay City. He said the development of the poorer nations is not the exclusive concern of these developing nations, but it is equally in the interest of the fully developed and affluent nations that the advancement of the poorer nations toward prosperity is accepted by them as a condition to world peace. PHILIPPINE MEDICAL CARE Commission recommended the assignment of at least one government physician in every municipality in the country. PMCC Chairman Dr. Pacifico E. Marcos said that the recom­mendation should be embodied in the Rural Health Act as he observed that “there are many places where there is neither a private nor govern­ment physician resulting in the death of many people without the benefit of medical consultation.” In a meeting of the PMCC during the convention of the Philippine Medical Association, Dr. Marcos also recommended: 1) The activation of all ghost hospitals; 2) The organization of a lineal roster of all government physicians so that promotions in rank, place of assignment and areas of responsibility could be more systematically defined: 3) An inspection of services should be established in the Department of Health. AIR TRANSPORT AGREEMENT between the Philippines and Indonesia for the operation o£ bilateral air services is now in effect. Foreign Secretary Carlos P. Romulo said the Indonesian Embassy has informed the Department of Foreign Affairs through a diplomatic note that the formalities required for the approval of the Air Transport Agreement have been complied with by the Indonesian government. The air agreement, signed in Manila on March 24, 1972, provided that each country shall have the right to designate one airline for the purpose of operating the agreed air services. Both countries agreed to operate weekly services from points in the Philippines to Jakarta with Singapore and Bangkok as points beyond for Philippine carrier and from points in Indonesia to Manila with Hongkong, Taipei and Tokyo as points bey ond for the Indonesian carrier. THE GOVERNMENT is set to clamp closure proceedings on mining companies that refuse to install anti-pollution facilities in vital agricultural areas in Benguet. Department of Agriculture and Natural Resources Secretary Arturo Tanco Jr. served this stern warning in the ultimatum following reports that several mining companies in Benguet have not complied with orders to treat or contain mining mill wastes or slime. Mr. Tanco said that the discharges from the mills have poisoned irrigation water and killed rice crops in adjacent farm areas. He also stressed the importance of the cooperation of the mining companies in the anti-pollution campaign. The Government has so far undertaken the following: 1) The Bureau of Mines has instructed mining companies to implement the second phase of chemically treating affected rivers in the Benguet area. 2) The National Science Development Board has funded a study on the effect of mine tailings on marine and animal life in the disposal area.

[6] No Official Gazette entry for this day.

[7] It is unknown where this text came from because this entry is missing.

[8] No Official Gazette entry for this day.

[9] No Official Gazette entry for this day.