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TO:	The Chairman-General Manager Philippine Virginia Tobacco Administration

In view of the increased costs in the redrying and processing of tobacco, which have adversely affected local manufacturers of cigarettes and exporters of tobacco, it is necessary that an adequate incentive be provided to said manufacturers and exporters to enable them to maintain the present level of selling prices of cigarettes, with respect to the manufacturers, and that of buying prices of leaf tobacco, in the case of the exporters.

Likewise, it is necessary that tobacco farmers be relieved of the present burden of contributing to the support of trading centers.

To accomplish the above aims, it is hereby directed that the research and regulation fee of four per cent of the gross purchase price of every kilogram of flue-cured tobacco sold, paid by the producer-seller, as provided in Letter of Instructions No. 166 dated February 25, 1974, be reduced to a straight fee of ten centavos (P0.10) per every kilogram of flue-cured tobacco sold, to be paid by the buyer.

This takes effect immediately.