Secretary-General Jose P. Leviste, Jr.

November 8, 1983 Secretary-General Jose P. Leviste, Jr. Office of the Prime Minister Manila Sir : In reply to your letter dated October 11, 1983 relative to the call of the National Congress of Farmers' Organization (NCFO) for the suspension of the business expansion of multinational corporations (DOLE, Ayala, SMC) in South Cotabato, please be advised that the same was referred to the National Economic and Development Authority in our letter dated November 7, 1983, a copy of which is herewith attached for ready reference, pursuant to Section 1, Article XIV of the Philippine Constitution and Section 140 of the Corporation Code of the Philippines which provides as follows: prcd Philippine Constitution : "SECTION 1. The National Assembly shall establish a National Economic and Development Authority to be headed by the Prime Minister, which shall recommend to the National Assembly, after consultation with the private sector, local government units, and other appropriate public agencies, continuing, coordinated and fully integrated social and economic plans and programs." Corporation Code : "SECTION 140. Stock Ownership in Certain Corporations . Pursuant to the duties specified by Article XIV of the Constitution, the National Economic and Development Authority shall, from time to time, make a determination of whether the corporate vehicle has been used by any corporation or by business or industry to frustrate the provisions thereof or of applicable laws, and shall submit to the Batasang Pambansa, whenever deemed necessary, a report of its findings, including recommendations for their prevention or correction. Maximum limits may be set by the Batasang Pambansa for stockholdings in corporations declared by it to be vested with public interest pursuant to the provisions of this section, belonging to individuals or groups of individuals related to each other by consanguinity or affinity or by close business interests, or whenever it is necessary to achieve national objective, prevent illegal monopolies or combinations in restraint of trade, or to implement national economic policies declared in laws, rules and regulations designed to promote the general welfare and foster economic development. In recommending to the Batasang Pambansa corporations, businesses or industries to be declared vested with a public interest and in formulating proposals for limitations on stock ownership, the National Economic and Development Authority shall consider the type and nature of the industry, the size of the enterprise, the economies of scale, the geographical location, the extent of Filipino ownership, the labor intensity of the activity, the export potential, as well as other factors which are germane to the nationalization and promotion of business and industry." Very truly yours, (SGD.) MANUEL G. ABELLO Chairman