The Minister of Local Government
        The Minister of Budget
        The Chairman, Commission on Audit
        The Presidents of State Universities and Colleges
        The Heads of Vocational, Technical and Agricultural Schools

1.    The Heads of state universities and colleges, vocational, technical and agricultural schools, local schools, and other institutions of learning shall assess their respective production capabilities and shall submit to the Minister of Education, Culture and Sports, an indication of their capability in producing items needed by the public schools system. They shall specifically indicate maximum production capacity, unit selling prices, project delivery schedules, and other pertinent details;

2.    The Ministry and its Regional/Division Offices, national schools, local schools, and state universities and colleges shall summarize their needs for the procurement of supplies, materials and equipment which can be supplied by state schools, indicating quantity and delivery dates desired which are covered by available funds;

3.    The Ministry of Education, Culture and Sports shall collate the submitted information and shall match demand and supply data, for the purpose of channelling to state schools as much business as possible on such products as chalk, garden tools, desks, science kits, construction material (particularly wood), food items, and so on;

4.    The Chairman, Commission on Audit and the Minister of the Budget shall devise an efficient procedure for the settlement of obligations and the use of proceeds arising from these transactions. Net proceeds shall be used for purposes of augmenting the compensation of personnel in the producing/selling institutions or generally for the improvement of facilities and furtherance of the activities of the said institutions.

5.    The Minister of Education, Culture and Sports, the Minister of the Budget and the Chairman, Commission on Audit, shall issue the rules and regulations implementing this Letter.

Since 19.07.98.