Written at the State Dining
Room where Imelda was entertaining
her old classmates
I devoted the morning to basic economic policies and decisions:
- The floating of Asian Dollar Bonds.
- Organization of the cement manufacturers into a coordinated group to prevent the present losses. The Price Control Council has set the price of cement at P4.30 a bag when the cost of production may be P5.30 a bag with the factories at 50% production
Official Gazette for December 3, 1971: PRESIDENT MARCOS as usual had a busy day of callers and desk work, not to mention conferences and special concerns.
The President first received Takahiro Yamauchi, president of the Daiwa Securities of Tokyo, who paid a courtesy call. Yamauchi arrived on a business survey.
Then he met with representatives of the Cement Association of the Philippines, led by A. Diokno, president, on the problems of the industry.
During the meeting, the President took steps to help the cement industry and at the same time to protect the government’s investment in the industry. He directed:
1. The Presidential Economic Staff to review the cost studies submitted by the various cement manufacturers and determine the merits of their petition for an increased price ceiling, and to submit its recommendations so he could confer with Acting-Secretary of Commerce and Industry Troadio T. Quiazon, Jr., concurrent chairman of the Price Control Council.
2. Executive Secretary Alejandro Melchor, Jr. to meet with Chairman Leonides S. Virata of the DBP, which has large investments in the industry, and representatives of the Cement Association, with the view to authorizing the DBP to regulate the production, sale and/or exportation of cement.
The President, at the same time, assured the group that the government would do everything to save the industry while also protecting DBP loans extended to the industry.
He also asked PES Director-General Apolinario Oroso to prepare a memorandum study on the Free Trade Zone (FTZ) in order to speed up its completion.
The President expressed concern over the slow pace of development in the FTZ, even as he stressed that it should not be engaged by lack of funding because it is tied to the government policy^ of creating a strong export trade.
Others received by the President included:
1. NBI Director Jolly Bugarin, who reported on his trip to Canberra where he attended an international conference on illegal drugs; and
2. Rep. Indanan Anni, who came with former Gov. Arzad Salih. They took up the unstable peace and order situation in Mindanao with the President.
The President received visitors up to early afternoon, but devoted the rest of the day to his desk work.
of rated capacity. At full production, there would be an over supply of 60-70 million bags annually. The domestic price is sought to be increased to P5.80 per bag with 40% of full production being sold abroad. We could replace Taiwan in the export market.
I ordered the matter to be studied by Chairman Leo[nides] Virata, Central Bank Gov. [Gregorio] Licaros and NEC [National Economic Council] Chairman [Gerardo] Sicat.
3. The National Power Corp. increases in rates, proclamation of watersheds specially in Caliraya, and the creation of a bidding committee for the PNR [Philippine National Railways], NPC [National Power Corporation] and PHHC [People’s Homesite and Housing Corporation].
4. The Free Trade Zone development. I ordered a zone at the International Airport to be established for the marketing of Free Trade Zone goods free of tax if sold to tourists and subject to tax if sold to local residents.
I ordered that the PES [Presidential Economic Staff] and FTZ prepare a complete package of development of the Free Trade Zone—the plan including costs to be submitted to the Asian Development Bank for financing or to be included in the Commodity Loan from Japan.
5. Ordered that Usec. [Jose] Drilon [Jr.] procure 50% of the rice deficiency for the coming year by December and the other 50% by January. And a buffer stock not for 21 days but for 60-90 days.
In the afternoon and evening I reviewed the Progressive Car Manufacturing project and the intensification of extractive mining as well as the copper-smelter project.