WHEREAS, a number of government agencies and instrumentalities, including the Armed Forces, have a need for helicopter and fixed wing aircraft.

WHEREAS, such aircraft are available, and unutilized, in the inventory of Philippine Aerospace Development Corporation, a fully owned government corporation, which aircraft the PADC have already paid for in full.

WHEREAS, transfer of the equipment from PADC, to the aforesaid other government agencies and instrumentalities would be to the advantage of the country inasmuch as resources which would otherwise be idle would then become usable.

WHEREAS, such transfer, on the other hand, requires compensation to PADC, considering that the Corporation bears the debt service obligations for these aircraft, but such transfers, have not been made because of budgetary limitations of the potential user agencies.

In view thereof, I hereby declare it a desirable policy that such aircraft when needed, shall be made available. When budget limitations of an agency specifically authorized by the President of the Philippines to purchase such aircraft from the Philippine Aerospace Development Corporation prevent direct purchase, arrangements for lease purchase or installment payments may be entered into by the agency authorized to make such purchase.

I hereby instruct the following, in coordination with the Commission on Audit, to devise a system whereby such installment purchases may be concluded:

Secretary of Finance Commissioner of the Budget Chairman of the Board, Philippine Aerospace Development Corporation

They shall submit the necessary rules and regulations governing the system 30 days from even date, for final approval.

Done in the City of Manila, this 11th day of March, in the year of Our Lord, nineteen hundred and seventy-six.