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TO:	1.	The Chairman Board of Investments
	2.	The Secretary Department of Agriculture and Natural Resources
	3.	Governor, Central Bank of the Philippines

WHEREAS, it is to the national interest that exports be promoted in order to hasten the economic development of the country;

WHEREAS, the Export Banana Industry in particular, in which the private sector has investments exceeding P300-million, is beginning to reach its maximum capacity;

WHEREAS, it is the intention of the Government to protect these dollar-earning investments and secure the employment of those directly or indirectly employed in the Industry;

WHEREAS, a concerted and determined effort to establish and maintain a stable market and stable prices is necessary to sustain the development of the Industry;

WHEREAS, this market stability may be obtained by achieving and maintaining an optimum hectarage planted to export bananas;

WHEREAS, a stable industry, a stable market, and stable prices can be achieved by regulation of production.

NOW THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 108l, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby direct the Board of Investments, the Department of Agriculture and Natural Resources and the Central Bank of the Philippines to take the necessary steps immediately to limit the hectarage planted for banana exports as follows:

1. The area to be planted for export bananas shall be the optimum hectarage which can be absorbed by the Japanese market and other markets as may be developed in the future without creating a surplus situation and depressing the export price of bananas.
   
2. Under present conditions, and until new markets can be developed or an unexpected increase in the Japanese market occurs, the hectarage to be planted to export bananas shall be limited to not more than 21,000 hectares, to be distributed among growers as follows:
   
   

   (a)	Only growers with actual plantings as of November, 1972, as shown in Annex "A" (which is made an integral part of this Letter of Instruction) shall be permitted to make new plantings of bananas for export.
   (b)	Such growers with actual plantings as of November 1972 and listed in Annex "A" shall be permitted to increase their hectarage planted to bananas by an amount equal to the lesser of the following:
   	(i)	The area indicated by them in the industry survey made in November, 1972 for additional planting, as contained in Annex "A" hereto; or
   	(ii)	The area reported to be actually planted by them as of November, 1972, as shown in said Annex "A".

   
   Provided, however. That any grower registered with the Board of Investments as of the date of this Letter of Instruction shall be permitted to expand to the total area required to achieve his production capacity by the BOI as shown in Annex "B" (which is also made an integral part of this Letter of Instruction: ) hereof, even if the new plantings exceed the limits above.
   
   
3. At such time that the Japanese market has expanded sufficiently, or new markets have been developed so as to make available additional hectarage for export bananas, a committee composed of the Chairman of the Board of Investments, the Secretary of Agriculture and Natural Resources, the Governor of the Central Bank and four (4) representatives of the growers, representing not less than eighty (80%) percent of the area then planted shall meet to decide on the additional hectarage to be planted and the distribution of such hectarage.

Done in the City of Manila, this 22nd day of February, in the year of Our Lord, nineteen hundred and seventy-three.