ESTABLISHING A COCONUT CONSUMERS STABILIZATION FUND.

WHEREAS, an escalating crisis brought about by an abnormal
situation in the world market for fats and oils has resulted in supply and price
dislocations in the domestic market for coconut-based consumer goods, and has
created hardships for consumers thereof;

WHEREAS, the representatives of the coconut industry,
considering their social and moral responsibilities in this respect have
proposed the implementation of an industry-financed stabilization scheme which
will permit socialized pricing of coconut-based commodities; and

WHEREAS, it is the policy of the State to promote the
welfare and economic well-being of the consuming public;

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 that:

1. In addition to its powers granted under Presidential Decree No. 232, the
   Philippine Coconut Authority is hereby authorized to formulate and immediately
   implement a stabilization scheme for coconut-based consumer goods, along the
   following general guidelines:
   1. A levy, initially, of P15.00 per 100 kilograms of copra resecada or its
      equivalent m other coconut products, shall be imposed on every first sale, in
      accordance with the mechanics established under Republic Act No. 6260, effective
      at the start of business hours on August 10, 1973.

      The proceeds from the levy shall be deposited with the Philippine
      National

      Bank or any other government bank to the account of the Coconut Consumers
      Stabilization Fund, as a separate trust fund which shall not form part of the
      general fund of the Government.

   2. The Fund shall be utilized to subsidize the sale of coconut-based products
      at prices set by the Price Control Council, under rules and regulations to be
      promulgated by the Philippine Consumers Stabilization Committee, which is hereby
      created, to be composed of the following:

      1) The Undersecretary of Agriculture and Natural Resources as Chairman;
      2)
      The Chairman of the Price Control Council, or his duly authorized
      representatives;
      3) The Undersecretary of Trade, or his duly authorized
      representative;
      4) A representative of the Secretary of National
      Defense;
      5) The President of the Philippine Coconut Producers Federation, or
      the Federation’s duly authorized representative;
      6) The Chairman of the
      United Coconut Associations of the Philippines or the Association’s duly
      assigned representative;
      7) The President of the Philippine Coconut Oil
      Producers Association, or the Association’s duly authorized representative;
      and
      8) The President of the Philippine Copra Exporters Association, or the
      Association’s duly authorized representative; and
      9) A representative of the
      coconut oil refineries.

   3. To the extent delegated by the Philippine Coconut Authority, the Coconut
      Consumers Stabilization Committee shall have the following powers and functions:

      1) To determine the base price of the raw materials, on which to set the
      subsidy;
      2) To review and revise when necessary the amount of the levy
      imposed. It is understood, however, that when the price of copra equals the
      authorized base price, the collection of the levy shall be suspended
      automatically;
      3) To establish a monitoring system to ascertain that a steady
      and adequate supply of the subsidized products is distributed at socialized
      prices; and to issue subpoena and subpoena duces tecum whenever required for
      effective monitoring and investigation as to compliance with its
      promulgations;
      4) To order the payment of the subsidy;
      5) To establish a
      Secretariat, headed by an Executive Director, who shall attend to the day-to-day
      business and affairs of the Committee, and provide for the Secretariat’s
      operating expenses;
      6) To call on any government agency or entity to assist
      it in carrying out this Decree and the promulgations made thereunder; and
      7)
      To perform such other duties and functions in furtherance of this
      Decree.

2. The collection of the Stabilization Fund levy and the existence of the
   Stabilization Committee shall terminate after one year or earlier, provided the
   crisis for which the measure was instituted no longer exists as determined by
   the Philippine Coconut Authority, whereupon any balance remaining of the Fund
   shall immediately revert to and form part of the Coconut Investment Fund
   constituted under R.A. 6260.

3. Any person or firm who violates any provision of this Decree or the rules
   and regulations promulgated thereunder, shall, in addition to penalties already
   prescribed under existing administrative and special law, pay a fine of not less
   than P2,500 or more than P10,000, or suffer cancellation of licenses to operate,
   or both at the discretion of the Court.

4. All laws, executive and administrative orders, rules and regulations
   inconsistent with the foregoing provisions are hereby repealed or amended
   accordingly.

5. If any provision of this Decree is held unconstitutional, the same shall
   apply only to that provision and the remainder hereof remains valid.

6. This Decree shall take effect immediately.

Done in the City of Manila, this 20th day of August, in the year of Our Lord,
nineteen hundred and seventy-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ROBERTO V. REYES
		Assistant Executive Secretary