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TO:	The Commandant Philippine Coast Guard
	The Deputy Administrator Maritime Industry Authority

Pursuant to Presidential Decree No. 474, dated June 1, 1974, there shall  be coordination between the Philippine Coast Guard (PCG) and the maritime Industry Authority (MIA) in the exercise of supervision and regulation of the operations of water, transport utilities, and likewise, the MIA shall assist in the performance of Coast Guard's functions especially in the classification and Inspection of vessels.

The areas of cooperation as well as priority programs are to he considered and implemented:

(1) There shall be immediate efforts to further improve the Ship Inspection, and Classification Work.  For this purpose, the following shall be undertaken:

1. The Ship Inspection Group within the Coast Guard shall be strengthened by staffing it with the required experts and managerial personnel: a new staffing, pattern will be agreed upon between the PCG and MIA and such shall be implemented not later than December 315, 1974;
   
2. The MIA and PCG shall coordinate in the formulation and execution of training programs for such personnel;
   
3. Furthermore, MIA and PCG shall implement other institutional changes as shall be identified from time to time.

(2) MIA shall augment the expenses not otherwise sufficiently provided fur in the budget of the Coast Guard for the following: (i) salaries and allowances of provisional staff; (ii) cost of training programs particularly for the Ship Inspection Group; (iii) other items of expenditure directly relevant to the above activities.  The Coast Guard shall furnish MIA a budget for these additional expenses.

(3) In coordination with the Coast Guard, MIA shall maintain a Classification Registry of Vessels.  Both parties shall study with the end in view, of improving the existing system and procedures for ship survey and classification.

(4) The Philippine Coast Guard shill publish the New Merchant Marine Regulations as  soon as possible to ensure that such Regulations  shall be effective not later than January 1,   1975,  modifications, changes and amendments,to said Regulations shall be undertaken with, consultations between PCG and MIA.

Done  in the City, of Manila, this 12th day of August, in the year of Our Lord, nineteen hundred and seventy-four.