GRANTING TAX RELIEF TO DISTRESSED COPPER MINING COMPANIES

WHEREAS, LOI 1416 has authorized the suspension of payment
of taxes, duties, fees, imposts and other charges, whether direct or indirect,
due and payable by the copper mining companies in distress to the national and
local governments:

WHEREAS, copper mining companies continue to suffer because
of the continued drop in world copper prices;

WHEREAS, said industry will continue to deteriorate without
further assistance from the government;

WHEREAS, the government is determined to keep the industry
viable considering that it earns substantial foreign exchange for the
country;

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

1. The accumulated taxes, duties, fees, imposts and other charges of copper
   mining companies which have been suspended pursuant to LOI 1416, may be waived
   under the conditions herein provided.
2. Only mining companies as determined by the Ministry of Trade and Industry to
   be in distress such that the payment of accumulated taxes, duties, fees, imposts
   and other charges under present economic conditions will cause irreparable
   injury to their viable operations may avail of the above waiver.
3. The evaluation of the Ministry of Trade and Industry will be done on a
   quarterly basis upon application by a distressed mining company and shall take
   into account the existing copper world market prices, foreign exchange earnings
   of the applicant, cash position of the company, profitability of the company,
   and such other criteria indicative of the continuing inability to pay the
   aforesaid obligations to the government.
4. The Ministry of Trade and Industry shall have the authority to certify
   copper mining companies as eligible for waiver of accumulated taxes, duties,
   fees, imposts and other charges. The actual waiver shall be effective upon
   approval by the President.
5. The Ministry of Trade and industry is authorized to promulgate the
   implementing rules of this Order.

This Order shall take effect immediately.

Done in the City of Manila, this 4th day of February, in the year of Our
Lord, nineteen hundred and eighty-six.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant