WHEREAS, small and medium industries play a vital role in economic development;

WHEREAS, it is the policy of the Government to assist and protect the interest of small and medium industries, to encourage and develop their actual and potential capacities, to safeguard their stable growth and to secure their development;

WHEREAS, the creation of a viable small and medium industries sector which can operate efficiently and compete effectively in domestic and foreign markets requires an ad interim agency to exclusively attend to, advise and assist in the various problem areas faced by small and medium entrepreneurs until such time that a permanent body is created for this purpose;

WHEREAS, the findings of the U.P. Institute for Small-Scale Industries positively indicate that small and medium industries are beset with serious financial difficulties and other problems such as technological know-how, general management and manpower development;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby create a National Council for Small and Medium Industries which shall be composed of the following:

The Chairman of the National Economic Council

Chairman

Director, U.P. Institute for Small Scale and Medium Industries

Action Officer

The Secretary of Commerce and Industry

Member

Chairman, Board of Governors, Development Bank of the Philippines

Member

President, Philippine National Bank

Member

General Manager, Government Service Insurance System

Member

Administrator, Social Security System

Member

Representative, Filipino Chamber of Small Industries

Member

Representative, Philippine Chamber of Industries

Member

SEC. 1. Functions and Duties. - The Council shall have the following functions and duties:

a) To make studies on and integrate all proposed measures relative to the promotion and development of small and medium industries;

b) To propose and adopt policies, objectives and priorities affecting small and medium industries;

c) To formulate a credit program for small and medium industries for government financial institutions and follow up its implementation by said institutions;

d) To coordinate and integrate the activities of all government agencies relative to small and medium industries to the end that all efforts may be effectively channeled to the objective of attaining the promotion and development of small and medium industries; and

e) To undertake such other measures as may be necessary to the attainment of the objectives herein established.

Sec. 2. Council Secretariat. - The U.P. Institute for Small-Scale Industries shall be the Secretariat of the Council. The Chairman of the Council may request the detail of such additional personnel from other government agencies as may be required.

Sec. 3. Meetings and Reports. - The Council shall meet at such times as may be determined by the Chairman and shall render to the President of the Philippines period and annual reports of its activities.

Sec. 4. Funding. - Operating expenses of the Council shall be chargeable against the annual appropriation for the U.P. Institute for Small-Scale Industries. Additional expenses as may be necessary shall be chargeable against other available funds of the government.

Sec. 5. All Departments, bureaus, offices, agencies and instrumentalities of the government, including government-owned or controlled corporations, and local governments shall extend assistance to the Council whenever the Council shall need and request such assistance.

Sec. 6. Effectivity of the Order. - This Executive Order shall take effect immediately.

Done in the City of Manila, this 16th day of June, in the year of Our Lord, nineteen hundred and seventy.


By the President:
(SGD.) ALEJANDRO MELCHOR
Acting Executive Secretary