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TO:	The Ministry of Industry The Board of Investments The Metals Industry Research & Development Center The National Development Company The Development Bank of the Philippines

WHEREAS, the development of heavy engineering industries is vital and fundamental to industrial growth;

WHEREAS, the Philippine heavy engineering industry is a critical factor in the implementation of the country's major industrial projects through domestic manufacture of substantial quantities of heavy equipment and heavy machinery, including earth moving equipment end construction machinery;

WHEREAS, it is the policy of the Government to provide the heavy engineering industry with all the necessary support in terms of upgraded infrastructure, utilities, and other support services;

NOW, THEREFORE, I , FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order the following:

SECTION 1. A Commission for Heavy Engineering Industries (hereafter referred to as the Commission) is hereby created, composed of the Minister of Industry as Chairman, and representatives from the Beard of Investments, Metals Industry Research and Development Center, National Development Company, and Development Bank of the Philippines, as members.  The Board of Investment, shall serve as the technical staff of the Commission.

SEC. 2. The Commission shall adopt a developmental strategy for the industry to enable it to produce an average of 50% of the equipment and machinery requirements of large-scale industrial plants, within a prescribed development period.

SEC. 3. The development strategy shall include, among others, the immediate implementation of a local content program applicable to the machine and equipment requirements for all major industrial projects to be implemented in the Philippines within the period  from 1980 to 1985 as follows:

Staring Year of Construction	Prescribed Local Content
1980	15%
1981	20%
1982	25%
1983	30%
1984	40%
1985	50%

SEC. 4. The Commission shall formulate an action plan consisting of the immediate establishment of the following projects:

	a)	Heavy Casting and Porting Complex,
	b)	Heavy Machining, Fabrication, and Equipment/Machinery Assembly Complex, and
	c)	Improvement of "Downstream" Fabrication Capability of the Private Sector.

SEC. 5. The effective implementation of the action plan shall take place within a viable time frame to be decided by the Commission upon the effectivity of this Letter of Instructions.

SEC. 6. All enterprises, both in public and private sectors, shall comply with the rules and regulations to be issued by the Commission in the implementation of this Letter of Instructions.

SEC. 7. The provisions of this Letter of Instructions shall take effect immediately.

DONE in the City of Manila, this 25th day of October, in the year of Our Lord, nineteen hundred and seventy-nine