ALLOWING CITIZENS OF THE PHILIPPINES OR CORPORATIONS OR ASSOCIATIONS AT LEAST SIXTY PER CENTUM OF THE CAPITAL OF WHICH IS OWNED BY SUCH CITIZENS TO ENTER INTO SERVICE CONTRACTS …

WHEREAS, the general policy of the State is to limit the
disposition, exploration, development, exploitation or utilization of
lands of the public domain in the Philippines to citizens of the
Philippines or to corporations or associations at least sixty per
centum of the capital of which is owned by such citizens; and

WHEREAS, the national interest demands that such citizens,
corporations or associations be allowed to enter into service contracts
for financial, technical, management or other forms of assistance with
any foreign person or entity for the exploration, development,
exploitation or utilization of such lands of the public domain.

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. 1081, dated September 21, 1972, and General
Order No. 1, dated September 22, 1972, as amended, do hereby decree and
order the following:

1. Citizens of the Philippines or corporations or associations
   which have acquired lands of the public domain or which now own, hold or
   control such lands under the Public Land Act or any other law, are
   hereby allowed to enter into service contracts for financial, technical,
   management or other forms of assistance with any foreign person or
   entity whenever and wherever such contracts are vital to achieve sound
   and more expeditious exploration, development, exploitation or
   utilization of such lands owned, held or controlled by such citizens or
   corporations.
2. For purposes of this Decree, a service contract with a foreign
   citizen or entity for financial, technical, management and other forms
   of assistance shall be considered vital to national interest if,
   consistent with requirements for national security, the exploration,
   exploitation or utilization of land subject thereof is necessary for
   carrying out agricultural, industrial and commercial development
   projects such as the development of export oriented industries, import
   substitution and other dollar saving industries, cottage industries,
   cooperative development, land reform, research projects, and such other
   activities which may be certified by the President upon recommendation
   of the National Economic Development Authority as vital to national
   interest.
3. No service contract for financial, technical,
   management or other forms of assistance shall be valid without the
   prior approval of the Secretary of Agriculture and Natural Resources.
   The Secretary of Agriculture and Natural Resources shall promulgate such
   rules and regulations as may be necessary to carry this Decree into
   effect.
4. Service contracts for financial, technical, management or other
   forms of assistance that are valid and existing as of January 17, 1973,
   shall be recognized and the terms and conditions thereof shall remain
   in full force and effect unless modified by the parties thereto.
5. Any provision of existing law, rule, regulation or order that
   is contrary to, or inconsistent herewith is hereby amended or repealed
   as the case may be.
6. This Decree takes effect immediately.

Done in the City of Manila, this 13th day of March, in the year of
Our Lord, nineteen hundred and seventy-three.