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TO:	All Concerned

WHEREAS, it cannot be denied that the Balikbayan program has been a resounding success and that since it was launched on September 1, 1973, up to July 1, 1974, a total of 59,534 overseas Filipinos visited the homeland, more than thrice the number of Filipinos who visited the country in 1972 which numbered 16,131, who, at an average expenditure of $500.00 each, spent $29.7 M in the Philippines;

WHEREAS, returning Filipinos under the Balikbayan program have been given the opportunity jo find out for themselves the unprecedented progress of the country under the New Society which they shall cherish when they return to their adopted countries.

WHEREAS, tourist experts of the United Nations have commended the Balikbayan program and would recommend similar programs to other countries which, like the Philippines, have a large number of emigrants.

WHEREAS, the United Nations experts have recommended that instead of being effective only for a period of six months at a time, the Balikbayan Program should be relieved of anxiety of not being able to meet the deadline; and

WHEREAS, it is now our duty to encourage overseas Filipino scientists and technicians to come home and apply their knowledge to the development programs of the country, and to take advantage of the Balikbayan program which is an opportune time for them to come to the Philippines;

NOW, THEREFORE, I extend the Balikbayan program to another period beginning September 1, 1974, to February 293 1976. Pursuant to this extension the following instructions are hereby issued;

1. Unless otherwise specified in this Letter of Instruction, all policies, orders and instruction issued by every Department, Bureau or entity of the Government in the implementation of LOI Nos. 105 and 163, issued on July 31, 1973, and February 7, 1974, respectively, shall remain valid and effective.
2. The Department of Justice, through the Commission on Immigration and Deportation shall issue policies and recommendations to the effect, that any overseas Filipino driving in the Philippines under the Balikbayan program shall be authorized to remain in the country for a period of one year from the date of his arrival.  Provided, That such arrival is within the period from September 1, 1974 to February 29, 1976.
3. The awarding of development funds as prizes to local governments for bringing in the most number of homecoming Filipinos will be discontinued at the end of phase II on, August 31, 1974, its purpose of making local governments' appreciate the significance and value of Balikbayan having been accomplished.
4. All concerned are reminded about the benefits extended by Presidential Decree No. 439, issued on 22 April 1974, exempting from the provisions of Section 105 of the Tariff and Customs Code, as amended, certain possessions of overseas Filipinos who shall officially signify their intention. to reside permanently in the Philippines, and exempting such overseas Filipinos from the provisions of Sections 184-A, 185, 185-A, 135-B, 186, 186-A and 186-B of the Internal Revenue Code, as amended, in connection with their purchase of certain items and articles in the Philippines.

I enjoin my countrymen to keep open their hearts, their homes and their communities to our homecoming brothers and sisters in the finest tradition, of Filipino hospitality and" solidarity.

Done in the City of Manila, this 20th day of August, in the year of Our Lord, nineteen hundred and seventy-four.