Atty. Josefino Cruz

September 29, 1993 Atty. Josefino Cruz 23-D St. Mary Street Cubao, Quezon City S i r : This refers to your letter dated September 16, 1993 requesting an opinion on whether foreign investors are allowed to establish and operate restaurant business inside the Subic Bay Economic and Freeport Zone in Zambales. As stated, the Retail Trade Nationalization Law (RA 1180) covers the restaurant business and as such, it should be one hundred percent (100%) Filipino owned. This is a law passed by legislature. Hence, the aforesaid limitation is provided by a statute. On the other hand, Section 13, paragraph b (2) of the Bases Conversion and Development Act (RA 7227) allows the registration of non-Filipino nationals and business enterprise but confines its restrictions only to those provided by the Constitution of the Philippines. cdll Therefore, a restaurant business established and operated within the Subic Bay Economic and Freeport Zone need not be wholly owned by Filipinos since the Retail Trade Nationalization Law is a statutory limitation and not a Constitutional limitation. Accordingly, your query is answered in the affirmative. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman