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PRESIDENTIAL DECREE NO. 350
PRESIDENTIAL DECREE NO. 350
- CREATING THE PHILIPPINE COTTON CORPORATION AS A CENTRAL AUTHORITY TO
UNDERTAKE, IMPLEMENT AND SUPERVISE COTTON PRODUCTION IN THE PHILIPPINES
ON A COMMERCIAL SCALE
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WHEREAS,
the Philippines consumes 200,000 bales of cotton worth $35 million
annually requiring the expenditure of precious foreign
exchange; chanroblesvirtualawlibrary
WHEREAS, experiments and experts' opinion have proven conclusively that
cotton can be grown in the Philippines on a commercial scale with the
proper effort and financing;chanroblesvirtualawlibrary
WHEREAS, growing of cotton locally will save foreign exchange, provide
additional employment, reduce the cost of cotton to textile millers and
assure the supply of cotton regardless of the foregoing exchange
reserves position of the country;chanroblesvirtualawlibrary
WHEREAS, a cotton-growing program is fraught with complex problems and
requires massive capital, the solution of which will need the
cooperation and coordination of the government and private sectors;chanroblesvirtualawlibrary
WHEREAS, the successful implementation of a program of this magnitude
will require a centralized direction, management, and supervision;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of the Armed Forces of the Philippines and pursuant
to Proclamation No. 1081 dated September 21, 1972, and General Order
No. 1 dated September 22, 1972, as amended, do hereby create the
Philippine Cotton Corporation which shall be the central authority
vested with the responsibility of organizing and implementing the
Philippine cotton-growing program and which shall be organized in
accordance with the following guidelines:cralaw:red
1. The authority shall be called the "Philippine
Cotton Corporation."
2. The Corporation will be registered with the
Securities and Exchange Commission in accordance with the Corporation
Law;chanroblesvirtualawlibrary
3. The objective of the Corporation is
"self-sufficiency of the Philippines in cotton" — To enable the
Corporation to achieve this objective in the shortest possible time,
the Corporation will have the following general powers:cralaw:red
a. to undertake all the appropriate studies and
experiments necessary to select or develop the cotton strain(s) most
suited to Philippine climatic and soil conditions;chanroblesvirtualawlibrary
b. to purchase, own, hold, lease, and dispose of all
types of property, real or chattel, essential for carrying out its
functions;chanroblesvirtualawlibrary
c. to hire, employ and dismiss personnel and to enter
into contracts or agreements with them;chanroblesvirtualawlibrary
d. to enter into contracts with any person or
juridical entity in the pursuit of its objective;chanroblesvirtualawlibrary
e. to coordinate the development of roads,
irrigation, facilities and other infrastructure requirements necessary
for the efficient growing and marketing of cotton;chanroblesvirtualawlibrary
f. to select the general areas for growing cotton, to
educate, to provide financing and agricultural services and generally
to perform such activities as are necessary for the successful growing
of cotton of high quality in commercial quantities; chanroblesvirtualawlibrary
g. to direct, supervise, coordinate or otherwise
encourage the growing of cotton;chanroblesvirtualawlibrary
h. to purchase, store, gin, grade, bale, and market
all cotton produced under the program; and
i. to perform such functions as are necessary to
ensure a successful cotton-growing program in the Philippines.
Depending on the findings of subsequent studies, the Corporation will
have the option to exercise all or only some of the powers enumerated
above.
4. The Corporation will be a joint venture between
the Philippine Government and the private sector on a 60-40 ownership
ratio. The Philippine Government shall be represented by the Department
of Agriculture and Natural Resources. The private sector shall be
represented by the textile millers using cotton as a raw material in
its textile-milling operations.
5. The Corporation will have an initial authorized
capital stock of P20 million and an initial paid-up capital of P1
million.
6. Initial contributions of the Philippine Government
and the private sector will be P600,000 (60%) and P400,000 (40%)
respectively. The 60-40 ownership ratio between the government and
private sector shall be maintained at all times.
7. The contribution of the Philippine Government
shall be paid out of the funds held in trust by the Philippine Textile
Research Institute (PTRI). The contribution of the private sector shall
be made by the individual cotton-consuming textile millers through the
Textile Millers Association of the Philippines. The share of each
cotton-consuming Textile mill in the capital contribution of the
private sector shall be established pro rata based on the actual cotton
consumption of the mills.
8. The Corporation shall be governed by a Board of
eleven members, six from the government sector and five from the
private sector. The government sector will be represented in the Board
by the incumbent Secretary of Agriculture and Natural Resources, the
Director of the PTRI, the Chairman of the Advisory Committee of the
PTRI and three others who will be appointed by the Secretary of
Agriculture and Natural Resources.
The private sector shall be represented by the incumbent president of
the Textile Millers Association and four others appointed by the Board
of the Textile Millers Association. The Secretary of Agriculture and
Natural Resources shall be the Chairman of the Board.
9. The Administration of the Corporation will be
directed by a qualified General Manager who will come from the private
sector and who will be appointed by the Board.
10. The Corporation shall coordinate its research
efforts with the PTRI and the National Science Development Board
(NSDB).
11. In financing its developmental functions, the
Philippine Cotton Corporation will approach international sources of
financing, both multilateral and bilateral, for assistance in terms of
either grants of loans, or both. chanroblesvirtualawlibrary
12. In order to provide additional financing for
research and development or feasibility studies, the PTRI will make
available as a grant to PCC, not later than 30 days after the beginning
of each fiscal year, the minimum sum of P500,000. Thus funding from
PTRI should obtain in no case, prejudice the efforts of PCC to obtain
financing from other sources as mentioned in paragraph 11 above.
The PTRI is hereby authorized to invest the Special Textile Research
Fund in any financial instruments, including commercial papers, which
will yield a sufficiently high level of earnings to enable the
organization to assist the Philippine Cotton Corporation and other
cotton research projects contemplated by R.A. 4086.
13. Upon its organization, the Corporation will cause
to be prepared a thorough feasibility study of the cotton-growing
project which will be the basis for further action by the Corporation.
The feasibility study should recommend specifically the detailed steps,
the timetables and the financial requirements thereof, necessary to
carry-out the project. In general, the feasibility study include the
following:cralaw:red
a. the organization study of the Philippine Cotton
Corporation including manning requirements, personnel compensation and
other organizational requirements;chanroblesvirtualawlibrary
b. financial study, including the timing of financial
requirements and the sources of financing; and
c. technical study, including all agriculture and
agronomic aspects of the project, such as what experiments to carry
out, the areas to be planted with cotton, project timetables,
etc. chanroblesvirtualawlibrary
The Corporation should be organized and registered with the Securities
and Exchange Commission before the end of January 1974.
This Decree takes effect immediately. chanroblesvirtualawlibrary
Done in the City of Manila,
this 22nd day of December, in the year of Our Lord, nineteen hundred
and seventy-three.
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