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TO:	The Minister, Ministry of Budget The Minister, Ministry of Finance The Minister, Ministry of Labor The Minister, Ministry of Energy The Minister, Ministry of Justice The Chief Justice, Supreme Court
		of the Philippines
	The Governor, Central Bank of the
		Philippines
	The President, Land Bank of the
		Philippines
	The President, Philippine Veterans
		Bank
	The Administrator, National Grains
		Authority
	The President, M E R A L C O The President, Food Terminal,
		Incorporated
	All Others Concerned

WHEREAS, Food is a basic need of man and Government is committed to insure continuous and adequate food supply at reasonable price to the Filipino people;

WHEREAS, there is need to stabilize farm price of basic food items to assure fair returns on investments and to serve as incentive for higher productivity;

WHEREAS, it is imperative to integrate and conserve Government resources for a systematic marketing of basic food commodities;

WHEREAS, the food terminal, incorporated, has to re-orient its socio-economic thrusts and to re-structure its organizational and financial framework with the end in view of streamlining its operations,

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, in order to attain the above objectives, do hereby direct that:

1. The organizational framework of the food terminal, incorporated (FTI), be re-structured in order to effectively attain socio-economic objectives;
   
   
2. The FTI be included in the category of government owned/controlled corporations with the same compensation structure as the agriculture, trading and promotions sector;
   
   
3. The FTI be made a beneficiary of the price stabilization subsidy under the social pricing end development adjustments fund for government entities covered by the Annual General Appropriations Act;
   
   
4. The FTI be reimbursed the stun of P20 M incurred as losses in 1979 for food trading operations, which amount shall be taken from the Price Stabilization subsidy of the General Appropriations Act;
   
   
5. The Philippine National Bank and the Land Bank of the Philippines shall extend an initial credit line to FTI in the amount of P50 Million each, to be utilized for food trading operations.  Provided, that all availments by FTI from said credit line shall be (guaranteed by the national government;
   
   
6. The Philippine National Bank and the Philippine Veterans Bank shall re-structure FTI's outstanding obligation with them amounting to P60.183 Million and P7.032 Million, respectively, to be authorized within five years at preferred interest rate;
   
   
7. The Central Bank of the Philippines shall rediscount the commercial papers of FTI presented by PNB and LBP at the rate of 3 per cent per annum and said banks shall, in turn, charge FTI 3 per cent over and above the said CBP rediscounting rate or a total rate of 6 per cent per annum;
   
   
8. The National Grains Authority and the FTI shall evolve a linkage arrangement with the primary objective of complementing the latter's capability to stabilize prices of basic commodities and to assure continuous and adeciuate food supply to the nation;
   
   
9. The National Grains Authority shall assist the FTI' s marketing operations by directly engaging in the procurement of Farm and Marine Products at their respective sources, utilizing FTI funds and NGA's own facilities and personnel, Provided, however, that in the event FTI funds could not immediately be made available, NGA shall make use of its own fund for said procurement operations subject to reimbursement by FTI of the expenses incurred relative thereto;
   
   
10. The FTI shall be exempted from the payment of all income taxes, franchise taxes and realty taxes to the National Government, its provinces, cities, municipalities and other government agencies and instrumentalities; from all filing/ docket, and service fees, bonds and other charges or costs in any court or administrative proceedings in which the FTI may be a party litigant, and from documentary and science stamp taxes for all documents or contracts executed by or in favor of FTI;
    
    
11. The FTI, in coordination with the appropriate government agencies entities, shall have the power to enforce all price ceilings in food commodities set by the government and to issue such rules and regulations as may be necessary to implement the same.  For this purpose, the President, Food Terminal, Incorporated, shall henceforth, be a member of the Price Stabilization Council created by virtue of Presidential Decree No. 1674;
    
    
12. The MERALCO shall reduce its power charges to FTI at the same rates for hospitals and other institutions performing socialized functions;
    
    
13. The FTI President shall form a selection board to evaluate and screen officials and employees of the FTI; Provided, that all personnel who cannot be absorbed by the new organization, or who cannot transfer or be transferred to other agencies, or who prefer to retire, or are to be laid off, shall be given gratuity pay equivalent to one month salary for every year of service but in no case more than twenty-four months in addition to all other benefits to which they are entitled under existing laws and regulations and for this purpose, there is hereby appropriated the sum of Five Million Pesos or such amount as may be necessary, out of the funds of the National Treasury not otherwise appropriated.

The sum of P9,665 Million due as real estate taxes to the municipality of Taguig, Rizal and the amount of P7.794 Million due as duties and taxes to the Bureau of Customs shall be condoned.

DONE in the City of Manila, this 19th day of April, in the year of Our Lord, Nineteen Hundred and Eighty.