TO:    
WHEREAS, it is the policy of the Government to promote and increase export trade, particularly of products which are made out of indigenous raw materials and are of high labor content, in order to increase the foreign exchange earnings of the country, enhance the utilization of otherwise idle resources in the countryside, and expand the opportunities for gainful employment;

WHEREAS, it is also the policy of Government to promote rapid development of small and medium scale industries to widen the base of participation in national economic development;

WHEREAS, the export of Philippine products, particularly cottage industry products, indicate a high market potential and has been given first priority in the development of industries with high export potentials;

WHEREAS, the Philippine cottage industry today urgently needs for increased productivity and maintain competitiveness in the export market the following: infusion and new technology, syndicated marketing, ready financing, organized Procurement of raw materials, more aggressive sales promotion programs;

WHEREAS, the development and promotion of the cottage industry products could be best achieved through a direct, specific and highly organized effort;

Whereas, it is imperative that credit scheme with liberalized collateral requirements be made available to the entrepreneurs of this industry for sustained growth.

In order to realize these objectives, you are instructed to give effect to the following:

1. The Cottage Industries Development Council be reactivated with the following additional powers  and functions:
   
   
   1. To provide the guidelines as well as the working mechanism for the integration and implementation of programs and projects for the cottage industry which have been identified as supportive of the priorities of government;
      
      
   2. To devise a comprehensive supervised credit program with concessionary and liberal collateral and amortization schemes for cottage industry producers/entrepreneurs;
      
      
   3. To supervise and control such a comprehensive credit program.
      
      
2. The CIDC membership be expanded to include a representative from each of the following agencies: the Ministry of Human Settlements, the Ministry of Trade, the Ministry of Industry, the Ministry of Natural Resources, the National Economic Development Authority, the Development Bank of the Philippines and the Central Bank.
   
   
3. The CIDC shall have a Technical Staff to be headed by an Executive Director, who shall be appointed by the President upon recommendation of the Council.  He shall execute, administer and implement the policies, plans and measures approved by the Council and perform such functions as may be necessary to carry out specific responsibilities in connection with said plans and measures.  He shall sit as an ex-officio member of the Council.
   
   
4. The Staff shall be appointed by the Executive Director subject to the approval of the Council and in accordance with the Civil Service Law.  Where necessary, the services of technical personnel, including consultants, shall be contracted for by the Executive Director subject to the approval of the Council.
   
   
5. The Council may call upon any official, agent, employee, agency or instrumentality, of the Government for staff or any other assistance that may be deemed necessary to carry out the purpose of these instructions, and said agency or instrumentality of the Government shall, with the approval of the Office of the President, assign the official, agent or employee to the Center or provide the assistance requested by it.
   
   
6. To carry out its functions, the initial funding of Council Technical Staff shall be contributed by the member agencies of the Council; forty percent to be provided by the Development Bank of the Philippines and the rest to be divided, equally among the Ministries and Offices concerned.

This Letter of Instructions amends Executive Order No. 313 and all other instructions and orders inconsistent with this order are hereby repealed or modified accordingly.

Done in the City of Manila, this 4th day of October, in the year of Our Lord, nineteen hundred and seventy-nine.