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TO:	Chairman Blas F. Ople Cottage Industries Development Council
	Commissioner Faustino Sy-Changco Budget Commission
	Administrator Mario R. Reyes Executive Director, Cottage Industries Development Enterprise

In order to minimize the hardships encountered in the procurement of supply of critical raw materials which are utilized as component parts in the production or processing of products of cottage industries, ways and means to procure and ensure a steady and continued supply thereof should be devised and undertaken. The cottage industries and their products have recently made significant gains in the field of exports by occupying 6th place among the commodity exports of the country. These industries produce products which are exported to earn dollars to stabilize our currency as well as to save dollars through the manufacture of import substitutes, in addition to providing more employment opportunities and increased income to our people.

Chairman Bias F. Ople of the Cottage Industries Development Council, Budget Commissioner Faustino Sy-Changco and Administrator Mario R. Reyes, Executive Director, Cottage Industries Development Enterprise, are hereby directed;

1. To import critical raw materials which are utilized in the production and/or manufacture of cottage industry products which are not locally obtainable.  These raw materials may consist of:
   
   
   1. varnish
   2. straws
   3. sandpaper (cloth and paper backing)
   4. peroxide
   5. brass sheets
   6. cotton thread for knitting or sewing
   7. leather for shoes
   8. cork
   9. band saw blades
   10. circular blades
   11. corrugated paper & paper board in rolls and sheets (200 lbs. test)
   12. abrasives
   13. nylon straws
   14. cellophane
   15. lacquer sealer
   16. dyes
   17. lamination chemicals
   18. plastic sheets
   19. methanol
   20. glue
   21. other materials not locally available or obtainable
       
   
   
2. To accumulate, carry on, maintain and set up a stockpile of the foregoing materials in such amounts and quantities as may be determined by the National Cottage Industries Development Authority (NACIDA), sufficient for the continued operation of cottage industries registered with the NACIDA for a period of one year;
   
3. To release Five Million Pesos (P5,000,000) to the Cottage Industries Development Enterprise (CIDE) from the unprogrammed funds of the NACIDA to defray the cost of the acquisition and disposition, thereof, including expenses for storage, distribution, handling transportation and other operation costs; and
   
4. To make available to all cottage industries producers registered with the NACIDA the above-enumerated critical raw materials at nominal costs to assure the continued and steady operation of the cottage industries.

Done in the City of Manila, this 3rd day of September, in the year of Our Lord, nineteen hundred and seventy-three.