Dr. Juergen Schaefer

September 2, 1981 Dr. Juergen Schaefer Project Manager Phil.-German Crop Protection Programme Crop Protection Division Bureau of Plant Industry 692 San Andres Street Malate, Manila Dear Dr. Schaefer: This is in connection with your letters dated 29 April 1980 and 26 May 1980 addressed to the Minister of Labor and thereafter referred to the Minister of Trade, Board of Investments and finally to the Securities and Exchange Commission. cdlex According to your letter, the Deutsche Gesellschaft fuer Technische Zusammenarbeit (GTZ) of the German Agency for Technical Cooperation, has been assisting the Philippine Government through the Bureau of Plant Industry on plant protection by virtue of the Bilateral Agreement entered into between the two states for the last ten (10) years; that under said agreement, the Government of the Federal Republic of Germany shall provide the Government of the Republic of the Philippines the necessary German experts and short-term consultants, basic laboratory and field equipment, motor vehicles, etc.;that the implementation thereof known as the Philippine-German Crop Protection Programme (PGCPP) started in March 1969 as a rat control project and later on expanded to cover all aspects of crop protection; that as a result, the bulk of administrative and technical work has increased tremendously, giving little time to follow-up the implementation thereof in the fields; that in view of the above, the head office of GTZ in Eachborn, West Germany has thought of establishing an office in Manila to handle the administrative matter relative to the Bilateral Agreement between the Governments of the Republic of the Philippines and the Federal Republic of Germany on food production. We are happy to inform you that the establishment of an administrative office of GTZ in Manila to handle the administrative aspects of GTZ and/or PGCPP in furtherance of the Bilateral Agreement between the two governments, in order to liberate the technical personnel from the bulk of administrative work so as to give them ample time to follow-up the implementation of the projects in the field does not need the approval of the Securities and Exchange Commission under the Corporation Code of the Philippines (Batas Pambansa Blg. 68). The simple reason is that it will not be doing/transacting business in the Philippines, nor will it act as a branch, subsidiary, agent or representative office of any foreign corporation, entity or firm, but will act as an agency of another sovereign state . Similar findings obtain in the Board of Investments per its first indorsement dated June 2, 1981 and received by this Commission on July 1, 1981. A copy of this indorsement is attached for your reference. Please be guided accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Associate Commissioner