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TO:	1.	The Secretary of National Defense
	2.	Philippine National Bank
	3.	Secretary of Finance, Commissioners of Customs BIR.

I hereby confirm my verbal orders given to you by telephone to the effect that:

1. All movement of export sugar be stopped immediately ;
2. That all warehouses containing sugar be listed down and guarded;
3. That a complete inventory of all sugar stock both for export and domestic consumption  be  immediately conducted ;
4. That the Philippine Exchange be directed to freeze all clearances and shipping documents that may have been given to any party whatsoever for export; Movement of domestic sugar shall be suspended for the next 48 hours and all papers shall be cleared with my office immediately before resumption of trade and movement of domestic sugar;
5. All officers and men of the Armed Forces of the Philippines who may have been reported or suspected as having participated  in the massive smuggling of sugar out of the country either directly or through negligence should be kept out of these operations.

The reason for this sudden and swift stopping of movement of sugar is the reported massive smuggling of sugar from the country.

It is reported that Victorias refined sugar in the amount of 180,000 tons is being peddled in Hongkong and in Thailand.  The warehouses in Kota Kinabalu are full of both refined and brown sugar. Smuggling is not only rampant but openly boasted about in trading and commercial circles outside of the Philippines.

It is also reported that documents such as quedans and the releases from warehouses or shipping documents can be obtained without any difficulty.

In view of the possible loss of 15% of the sugar crop because of typhoon Auring which hit the Visayas specially Negros, the massive smuggling of sugar from the Philippines may result in shortages which would be fatal to our economic plans.

Because of the Australian sale of 600,000 tons of sugar annually for five years to Mitsubishi at an average price of US$.24 per pound all sellers and suppliers of sugar are now seeking long term contracts of at least five years.

The Philippines, upon the recommendation of the Federation of Sugar Planters as well as the Philippine Sugar Institute, the Philippine Exchange and other persons participating in sugar production, and sale should now obtain long term contract for the sale of sugar at the best possible price but certainly not less than the price at which Australia has sold sugar to Mitsubishi Corporation of Japan at US$.24 per pound.

You will implement this letter of instructions immediately and report compliance thereof.