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TO:	The Administrator Maritime Industry Authority

WHEREAS, the current slump in the demand for oil has idled numerous large tankers resulting in their need to be laid-up in safe harbors throughout the world;

WHEREAS, the favorable weather and hydrographic conditions in certain achorage areas in Mindanao make them ideal lay-up centers for foreign tankers;

WHEREAS, the establishment of lay-up centers in the Philippines will generate certain commercial activities, create employment opportunities and provide new source of revenue for the government;

NOW, THEREFORE, pursuant to Presidential Decree No. 474, you are hereby directed to act as the agency to oversee and coordinate the various activities/programs of the government offices hereunder specified, relative to the establishment in the Philippines of lay-up centers, in such areas as may be suitable for the purpose and in such number as may be deemed necessary, following the manner herein laid down:

1. No foreign vessels shall be laid-up without prior approval from the Maritime Industry Authority and the vessel so laid up shall be represented by an authorized local ship lay-up agent for the duration of the lay-up period;
2. All anchorage areas in Davao Gulf, Pujada Bay, and Mayo Bay, the occupancy of which does not constitute any danger to navigation, and such other areas as may be so selected are designated santuaries for laying-up of foreign vessels;
3. The heads of the following government offices/bureau are hereby enjoined to extend full cooperation and utmost assistance to the Maritime Industry Authority in all spheres of activity where proper coordination is found to be necessary, more specifically, in the easing up or relaxation of normal administrative requirements relative to the entry, lay-up, and departure of foreign vessels and their crew to and from Philippine ports, as may be recommended or brought to their attention by the Maritime Industry Authority, taking into account the interests of national safety and security: Department of Foreign Affairs, Bureau    of Immigration.  Bureau of Customs, Philippine Navy, Telecommunication Control Board, Bureau    of Quarantine Service, Bureau of Coast and Geodetic Survey, Philippine National Oil Company and all other pertinent agencies.
4. In lieu of the berthing fee imposed on vessels under the Tariff and Customs Code, as amended, a nominal daily lay-up fee to be fixed and collected by the Maritime Industry Authority, payable in U.S. dollars or its equivalent in acceptable foreign currency, shall be imposed.
5. The Maritime Industry Authority shall, in consultation with the aforementioned agencies, promulgate such rules and regulations, policy and guidelines  as  may  be  necessary for the proper, effective and efficient implementation of the above instructions.

Immediate and strict compliance with this letter of Instructions is hereby enjoined.

Done in the City of Manila, this 28th day of November in the Year of Our Lord, nineteen hundred and seventy-five.

31 VITAL LEGAL DOCUMENTS, 72 (1976 —)