Subject:      ADJUSTING THE DIVIDEND RATES OF SELECTED
                    GOVERNMENT-OWNED AND/OR CONTROLLED
                    CORPORATIONS ON THEIR 1997 NET EARNINGS
                    PURSUANT TO SECTION 5 OF REPUBLIC ACT NO.
                    7656.

    "Section 1.  Declaration of Policy. - It is hereby declared the policy of the State that in order for the National Government to realize additional revenues, government-owned and/or controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the National Government."

WHEREAS, to support the viability and mandate of government-owned and/or controlled corporations [GOCCs], the liquidity, retained earnings position and medium-term plans and programs of these GOCCs were considered in the determination of the reasonable dividend rates of such corporations on their 1997 net earnings.

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance recommended the adjustment on the percentage of annual net earnings that shall be declared by the Manila International Airport Authority [MIAA] and Phividec Industrial Authority [PIA] in the interest of national economy and general welfare.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

    SECTION 1.  The percentage of net earnings to be declared and remitted by the MIAA and PIA as dividends to the National Government as provided for under Section 3 of Republic Act No. 7656 is adjusted from at least fifty percent [50%] to the rates specified hereunder:

        1.  Manila International Airport Authority    -    35% [cash]
        2.  Phividec Industrial Authority                -    25% [cash]

    SECTION 2.  The adjusted dividend rates provided for under Section 1 are only applicable on 1997 net earnings of the concerned government-owned and/or controlled corporations.

    SECTION 3.  This Executive Order shall take effect immediately.

DONE in the City of Manila, this 2nd day of June, in the year of Our Lord, Nineteen Hundred and Ninety-Eight.

FIDEL V. RAMOS
President

By the President:

ALEXANDER AGUIRRE
Executive Secretary