Letter of Instructions No. 122Sep 3, 1973Presidential Issuances

Letter of Instructions No. 122, issued on September 3, 1973, directs key officials to enhance the supply of critical raw materials for cottage industries in the Philippines. The cottage industries, which significantly contribute to the country's export revenues, are to receive support through the importation of essential materials not available locally, such as varnish, leather, and various chemicals. A stockpile of these materials is to be established for one year to ensure uninterrupted production. Additionally, P5 million is allocated to cover procurement and operational costs, with materials provided to registered cottage producers at nominal prices. This initiative aims to bolster employment and income within the sector while stabilizing the national currency.

September 3, 1973

LETTER OF INSTRUCTIONS NO. 122

TO : Chairman Blas F . Ople
    Cottage Industries Development Council 
     
    Commissioner Faustino Sy-Changco
    Budget Commission
     
    Administrator Mario R. Reyes
    Executive Director, Cottage Industries Development Enterprise 

In order to minimize the hardships encountered in the procurement of the supply of critical raw materials which are utilized as component parts in the production or processing of products of cottage industries, ways and means to procure and ensure a steady and continued supply thereof should be devised and undertaken. The cottage industries and their products have recently made significant gains in the field of exports by occupying 6th place among the commodity exports of the country. These industries produce products which are exported to earn dollars to stabilize our currency as well as to save dollars through the manufacture of import substitutes, in addition to providing more employment opportunities and increased income to our people.

Chairman Blas F. Ople of the Cottage Industries Development Council, Budget Commissioner Faustino Sy-Changco and Administrator Mario R. Reyes, Executive Director, Cottage Industries Development Enterprise, are hereby directed:

1. To import critical raw materials which are utilized in the production and/or manufacture of cottage industry products which are not locally obtainable. These raw materials may consist of: cdt

1. varnish

2. straws

3. sandpaper (cloth and paper backing)

4. peroxide

5. brass sheets

6. cotton thread for knitting or sewing

7. leather for shoes

8. cork

9. band saw blades

10. circular blades

11. corrugated paper and paper board in rolls and sheets

12. abrasives

13. nylon straws

14. cellophane

15. lacquer sealer

16. dyes

17. lamination chemicals

18. plastic sheets

19. methanol

20. glue

21. other materials not locally available or obtainable

2. To accumulate, carry on, maintain and set up a stockpile of the foregoing materials in such amounts and quantities as may be determined by the National Cottage Industries Development Authority (NACIDA), sufficient for the continued operation of cottage industries registered with the NACIDA for a period of one year; acd

3. To release Five Million Pesos (P5,000,000) to the Cottage Industries Development Enterprise (CIDE) from the unprogrammed funds of the NACIDA to defray the cost of the acquisition and disposition thereof, including expenses for storage, distribution, handling, transportation and other operation costs; and

4. To make available to all cottage industries producers registered with the NACIDA the above-enumerated critical raw materials at nominal costs to assure the continued and steady operation of the cottage industries.

DONE in the City of Manila, this 3rd day of September, in the year of Our Lord, Nineteen Hundred and Seventy-Three. cd i