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PRESIDENTIAL DECREE NO. 1715
PRESIDENTIAL DECREE NO. 1715 -
AMENDING PRESIDENTIAL DECREE NO. 618 WHICH AMENDED REPUBLIC ACT NO.
1789, OTHERWISE KNOWN AS THE REPARATIONS LAW
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WHEREAS,
Presidential Decree No. 618 amended Section 12 of Republic Act No.
1789, as amended, otherwise known as the Reparations Law, to allow
foreign equity not exceeding 30%, in recipient corporations or
associations which have fully paid for the machinery and equipment
granted under the said Act, subject to the approval of the President
upon recommendation of the National Economic and Development
Authority;rep
WHEREAS, the minimum requirement of seventy per cent (70%) Filipino
capitalization or stock ownership in said corporation had to be imposed
because the benefit of using said machinery and equipment should accrue
to Filipinos;chanroblesvirtualawlibrary
WHEREAS, after continued use, said machinery and equipment have
depreciated considerably since the bulk of these equipment were
acquired in the early days of the reparations grant which started in
1956 and ended in 1976;chanroblesvirtualawlibrary
WHEREAS, at present time, these equipment may no longer have any
meaningful value; and
WHEREAS, in order to facilitate the entry of foreign investments in the
said recipient corporations or associations in line with the government
policy of encouraging foreign equity participation in certain areas of
economic activity, the above limitation should be lifted since it
serves no useful purpose.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by
virtue of the powers vested in me by the Constitution, do hereby decree
and order, and make as part of the law of the land, the amendment of
Section 12 of Republic Act No. 1789, as amended, as follows:cralaw:red
Section 1. The fifth paragraph of Section 12 of
Republic Act No. 1789, as amended, is hereby amended to read as follows:cralaw:red
"The contract of sale shall bear the conditions that no capital goods
thus acquired shall be resold, leased or in any other manner disposed
of except to Filipino citizens or to entities wholly owned by Filipino
citizens who shall continue the utilization thereof in the projects for
which the goods were originally intended or in similar projects
included in the economic development program of a similar priority,
subject, however, to the further condition that groups, associations
and corporations which are recipient of such goods shall not permit any
subsequent change in ownership or control as shall at any time
thereafter change the control or ownership wholly held therein by
Filipino citizens; Provided, however, That, subject to the approval of
the Board of Investments, taking into account the condition of the
equipment involved and criteria for the entry of foreign investment
under Republic Act No. 5455, recipient corporations or associations
which have fully paid for such goods may allow foreign equity
participation therein when the same is necessary for further
development and expansion.
Section 2. All provisions of existing laws, decrees,
orders, rules and regulations, or parts thereof, in conflict or
inconsistent herewith, are repealed or modified accordingly.
Section 3. This Decree shall take effect immediately.
Done in the City of Manila,
this 21st day of August, in the year of Our Lord, nineteen hundred and
eighty.
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