ENLARGING THE POWERS AND PURPOSES OF THE METALS INDUSTRY RESEARCH AND DEVELOPMENT CENTER; FURTHER RECONSTITUTING ITS BOARD OF TRUSTEES, AND FOR OTHER PURPOSES

WHEREAS, the Metals Industry Research and Development Center
(MIRDC) was created by Republic Act No. 4724 as amended by Republic Act No. 6428
to develop and expand the metals Industry, by providing both the government and
the private sector with professional management and technical expertise in such
vital activities as training of engineers and technicians, information exchange,
trade accreditation service, Quality control and testing of metal products,
research and business economics advisory services;

WHEREAS, Executive Order No. 602 dated July 10, 1980
transferred the MIRDC to the Ministry of Industry to reorient its program thrust
from research and development to direct assistance to the metals industry;

WHEREAS, to achieve the above-cited purposes and the
reorientation of its program thrust as enunciated in the above-mentioned
Executive Order, there is a need to accelerate MIRDC’s facilities for testing
and inspection to aid in the establishment, review and enforcement of quality
standards;

WHEREAS, in order that the purposes and objectives of the
MIRDC can fee effectively and satisfactorily attained, it is necessary to
enlarge its purposes and powers and define its operation and structural
organization:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
decree as part of the law of the land the following:

SECTION 1. The Center shall, thru the availment of its
Existing personnel, expertise and facilities for testing and inspection assist
the Ministry of Industry in the establishment, review and enforcement of
quality/ standards provided in P.D. 1520, including safety and performance tests
of the metals industry as defined in Section 2 of Republic Act No. 4724 as
amended by Republic Act No. 6428.

SEC. 2. To enable the Center to effectively fulfill the
above cited function and pursuant to other objectives express declared in its
statutes, its shall:

1. Assist in the organization, maintenance and operation of product testing
   facilities, whether organized as a separate foundation or not to carry out the
   activities of the Center related to review and enforcement of quality standards
   thru testing and inspection of manufactured metal products, machineries,
   equipment, appliances, and their accessories and parts.
2. Obtain funds from government or private sources in the Philippines or
   elsewhere or from international public or private lending institutions, to
   support or carry out its purposes and/or to arrange financing of equipment or
   other credit facilities, or secure any kind of assistance for its own account or
   for the account of its clients in such manner and under such terms as the Board
   of Trustees of the Center may deem reasonable.
3. Apply for, register, purchase or otherwise acquire, use, protect and renew
   any patents, patent rights, licenses, concessions, trademarks, trade-names,
   inventions, formulas and processes used or capable of being used in connection
   with any of the functions/activities of the Center, the acquisition of which may
   directly or indirectly benefit the Center and to use, exercise, develop, sell,
   assign, or otherwise dispose of, or grant licenses in respect of the property,
   rights, trademarks, or other information so acquired, and to disburse money in
   experimenting upon, testing arid improving any patents, inventions or rights
   which the Center may acquire or propose to acquire. Organize, manage and operate
   subsidiaries, stock or non-stock, solely or in joint venture with the
   private-sector, to undertake any of the activities of the Center as authorized
   by its Charter and this Decree. Provided, that the subsidiaries of the MIRDC,
   created and registered with the Securities end Exchange Commission shall be
   entitled to all the incentives and privileges granted by law to private
   enterprises engaged in business activities.
4. Secure its own obligations and those incurred by its subsidiaries.
5. Contract loans, issue bonds and other obligation as security therefore, and
   for property purchased or acquired by it, or for any object in or about its
   business.
6. Compromise, remit or condone claims arising from contract expressed or
   implied, or from any other source.
7. Invest its Corporate Fund, as it may deem proper and necessary.

SEC. 3. The Board of Trustees of the Center is hereby
reconstituted and shall be composed of the Minister of Industry as Chairman, and
a representative each from the Board of Investments the National Science
Development Board, the Ministry of Natural Resources, the National Economic and
Development Authority, the Metals Industry Research and Development Center and
three representatives from the metals, engineering and allied industries,
sub-sector to be appointed by the Minister of Industry as members.

The Chairman shall likewise appoint a Vice-Chairman from among the members.
The appointive members from the private sector shall serve as follows or until
their successors shall Eve been appointed and qualified: one shall serve for
three 5) years, one for two (2) years and one for one-(l) year,
respectively.

SEC. 4. The Chairman of the Board of Trustees shall appoint,
with the approval of the Board, the Executive Directors of the Center.

SEC. 5. The Board is hereby authorized to reorganize the
Eternal structure of the Center and to determine the compensation ad allowances
of its officers and personnel, taking into account the need to attract highly
technical men.

SEC. 6. For services rendered to its clients, the Cent or
empowered to charge reasonable fees which together with any contributions
received by it, shall be used for its operations.

SEC. 7. Any income, fees, donations or contributions
received by the Center from the private sector shall form part of its Corporate
Fund and the unexpended balance of such receipts the end of fiscal year shall
not revert to the General Fund.

SEC. 8. The Commission on Audit shall appoint the Auditor
the Center. The Auditors of the subsidiaries of the Center d any foundation
organized by it and under its supervision, shall be appointed by their
respective Boards of Directors or Trustees.

SEC. 9. Pursuant to Section 2 hereof, the Center shall set a
foundation, entitled MIRDC Testing Foundation of the Philippines which shall be
registered with the Securities and Exchange Commission as non-stock, non-profit
foundation and which shall have the following powers:

1. To operate product testing facilities as are necessary and desirable for the
   purpose of product testing of manufactured products which are vital to the
   economy and charge reasonable fees therefore;
2. To receive donations and contributions from the private sector;
3. To adopt and establish an independent system for the procurement of
   supplies, materials or equipment, produced or manufactured locally or elsewhere,
   and for the contracting of services, which shall not be subject to further
   approval by any other government office or committees;
4. Grant honoraria, allowances and other emoluments to employees detailed to
   the Foundation from other offices on full or part time basis when deemed
   desirable; and
5. The Foundation shall use the MIRDC facilities, expertise and personnel to
   carry out the purposes of the Foundation.

Any donations or contributions to the Foundation shall be considered as
deduction deductible in full from the taxable income of the donor.

The Foundation, its assets, acquisitions, and its operations and transactions
shall be exempted from any and all taxes, fees, charges, imposts, licenses and
assessments, direct or indirect, imposed by the Republic of the Philippines, or
any of its political subdivisions of taxing authority thereof.

SEC. 10. All laws, decrees, administrative orders,
proclamations, rules and regulations or parts thereof, which are inconsistent
with any of the provisions of the Decree are hereby repealed, amended or
modified accordingly.

SEC. 11. If any provision of this Decree shall be held
valid, the remainder shall not be affected thereby.

SEC. 12. This Decree shall take effect immediately.

Done in the City of Manila, this 11th day of January, in e year of Our Lord,
nineteen hundred and eighty-one.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Deputy Presidential Executive Assistant