WHEREAS, the Government has adopted a policy prohibiting the exportation of logs effective January 1, 1976, and encouraging the expansion of wood processing centers and the establishment of new ones, to process logs for domestic use as well as for exportation; and

WHEREAS, certain economic problems arc expected to arise concomitant to the implementation of the aforesaid policy, such as the reduction of foreign exchange earnings from log exports and expected difficulties on the part of local concessionaires in meeting prior export commitments;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby amend Section 29 of Presidential Decree No. 389, as follows:

"SEC. 29. Mandatory Wood Processing Requirements. — Unless otherwise modified by the President, the exportation of logs cut from public forests and other forested lands is hereby prohibited effective January 1, 1976. All log production thereafter shall be processed domestically.

"During calendar years 1974 and 1975, all logging concessionaires arc authorized to export a maximum of eighty per centum (80%) of their actual log production.

"The Department Head, in consultation with appropriate agencies, shall accelerate the expansion and rationalization of the wood processing industry, taking into consideration, whenever feasible, the report of the Presidential Committee on Wood Industries Development.

"A wood processing plant shall purchase logs only from authorized sources. A licensee who has no processing plant may enter into a contract with a wood processor for purposes of complying with the requirements of this Section, subject to approval by the Department Head upon recommendation of the Director."

Done in the City of Manila, this 1st day of April, in the year of Our Lord, nineteen hundred and seventy-four.

(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines