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TO:	The Chairman Reparations Commission
	The Board of Directors National Steel Corporation
	The Solicitor General
	The General Manager Government Service Insurance System

In view of the worldwide unavailability of cargo vessels and the urgent need therefor in connection with the shipment, of the raw materials required by and the finished products of the National Steel Corporation, a subsidiary of the Development Bank of the Philippines which has been formed to engage in the production of steel products critical to the national economy and the security of the country, it is hereby directed that the M/V "Philippine Admiral," a reparations vessel, be immediately released and transferred in absolute ownership to the National Steel Corporation for the amount of TEN MILLION TWO HUNDRED THOUSAND , pesos (P10,200,000) only.

The National Steel Corporation (NSC) shall pay the Reparations Commission (REPACOM) the above amounts as follows;

1. NSC shall reimburse REPACOM the costs and expenses already incurred and to be incurred by REPACOM in connection with the transfer of the vessel to NSC, provided that the total reimbursement shall not exceed the amount of THREE MILLION TWO HUNDRED THOUSAND PESOS (P3,200,000) only.
   
2. NSC shall pay REPACOM, upon the cancellation of the mortgage on the vessel in favor of the Government Service Insurance System, as well as any and all liens on the vessel arising from act's, contracts on transaction prior to this date, the amount of SEVEN MILLION PESOS (P7,000,000) plus any remaining undisclosed portion of the maximum amount stated under the foregoing letter (a) on terms to be agreed upon between REPACOM and NSC.  NSC's total liability for the acquisition of the vessel shall in no case exceed P10,200,000.

It is also directed that NSC recognize the aforementioned mortgage lien of GSIS on the vessel.

Strict compliance with this Letter of Instruction is desired.

Done in the City of Manila, this 16th day of July, in the year of Our Lord, nineteen hundred and seventy-four.