Creating The Philippine Cotton Corporation As A Central Authority To Undertake, Implement And Supervise Cotton Production In The Philippines On A Commercial Scale

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 350

CREATING THE PHILIPPINE COTTON CORPORATION AS A CENTRAL AUTHORITY TO UNDERTAKE, IMPLEMENT AND SUPERVISE COTTON PRODUCTION IN THE PHILIPPINES ON A COMMERCIAL SCALE

WHEREAS, the Philippines consumes 200,000 bales of cotton worth $35 million annually requiring the expenditure of precious foreign exchange;

WHEREAS, experiments and experts' opinion have proven conclusively that cotton can be grown in the Philippines on a commercial scale with the proper effort and financing;

WHEREAS, growing of cotton locally will save foreign exchange, provide additional employment, reduce the cost of cotton to textile millers and assure the supply of cotton regardless of the foregoing exchange reserves position of the country;

WHEREAS, a cotton-growing program is fraught with complex problems and requires massive capital, the solution of which will need the cooperation and coordination of the government and private sectors;

WHEREAS, the successful implementation of a program of this magnitude will require a centralized direction, management, and supervision;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President...

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Summary of Presidential Decree No. 350

Creation of the Philippine Cotton Corporation
- The Philippine Cotton Corporation is created as the central authority to undertake, implement, and supervise cotton production in the Philippines on a commercial scale. (Section 1)

Objectives and Powers of the Corporation
- The objective is to achieve self-sufficiency in cotton production for the Philippines. (Section 3)
- The Corporation has the following powers:
    a. Conduct studies and experiments to select suitable cotton strains. (Section 3a)
    b. Purchase, own, lease, and dispose of properties essential for its functions. (Section 3b)
    c. Hire, employ, and dismiss personnel, and enter into contracts with them. (Section 3c)
    d. Enter into contracts with any person or entity to pursue its objective. (Section 3d)
    e. Coordinate the development of infrastructure for cotton growing and marketing. (Section 3e)
    f. Select areas for cotton growing, provide financing and agricultural services. (Section 3f)
    g. Direct, supervise, coordinate, and encourage cotton growing. (Section 3g)
    h. Purchase, store, gin, grade, bale, and market all cotton produced. (Section 3h)
    i. Perform functions necessary for a successful cotton-growing program. (Section 3i)

Ownership and Capital Structure
- The Corporation is a joint venture between the Philippine Government (60% ownership) and the private sector (40% ownership). (Section 4)
- The initial authorized capital stock is ₱20 million, with an initial paid-up capital of ₱1 million. (Section 5)
- The initial contributions are ₱600,000 (60%) from the government and ₱400,000 (40%) from the private sector. (Section 6)
- The government's contribution comes from funds held by the Philippine Textile Research Institute (PTRI). (Section 7)
- The private sector's contribution comes from individual cotton-consuming textile millers through the Textile Millers Association of the Philippines, proportional to their cotton consumption. (Section 7)

Governance and Management
- The Corporation is governed by a Board of 11 members, with 6 from the government sector and 5 from the private sector. (Section 8)
- The Secretary of Agriculture and Natural Resources is the Chairman of the Board. (Section 8)
- The administration is directed by a qualified General Manager from the private sector, appointed by the Board. (Section 9)

Research and Financing
- The Corporation coordinates its research efforts with PTRI and the National Science Development Board (NSDB). (Section 10)
- The Corporation seeks international financing sources for grants or loans. (Section 11)
- PTRI provides a minimum grant of ₱500,000 annually to the Corporation for research and development or feasibility studies. (Section 12)

Feasibility Study
- The Corporation prepares a thorough feasibility study covering:
    a. Organizational study, including personnel requirements and compensation. (Section 13a)
    b. Financial study, including timing of financial requirements and sources of financing. (Section 13b)
    c. Technical study, including agricultural and agronomic aspects, experiments, areas for planting, and timetables. (Section 13c)
- The Corporation should be organized and registered with the Securities and Exchange Commission before the end of January 1974. (Section 13)