TO:
In view of the present difficult situation which shipbuilders throughout the world find themselves in, it is necessary to re-study existing plans to set up a shipbuilding complex for ships of 300,000 deadweight tons and above. I understand that shipbuilding trends all over the world is now to build smaller vessels, and small shipowners have observed that large capacity vessels are now being laid-up or mothballed due to under-utilization.  The same is true of shipyards.

Since the funds borrowed from the OECF for the proposed Kawasaki shipbuilding project in Subic is a government loan incurred through the NIDC, any failure of the project will not only be prejudicial to the private shipbuilding industry but to the government as well.

I therefore order an immediate restudy of the project and your recommendations submitted at the earliest date possible.