The Chairman, Philippine Sugar Marketing Corporation
        The Executive Director, Economic Support Fund Council

1.    The equivalent in local currency of US$2 Million from the Economic Support Fund authorized under LOI 1452 shall be released to the government-mandated Philippine Sugar Marketing Corporation (PHILSUMA) established pursuant to Presidential Decree No. 1971, as amended, which funds shall be entirely utilized for the immediate implementation of assistance schemes, programs and projects responsive to the problems of the distressed sugar farmers and displayed workers in the sugar industry.

2.    The PHILSUMA or through an appropriate institution or foundation it may create or establish for the purpose, shall administer and utilize the released funds for the sole benefit of the sugar farmers and workers. As such, PHILSUMA or the appropriate institution or foundation is hereby authorized to enter into such agreements and arrangements with government agencies and/or the private sector for the proper and effective utilization of the funds.

3.    The Executive Director of the ESF Secretariat is hereby authorized to effect the immediate release to PHILSUMA of the aforestated amount from the ESF proceeds.

4.    A periodic report on the utilization of the total amount released shall be submitted by PHILSUMA, to the President, through the ESF Secretariat.

5.    All laws, executive orders, administrative orders, rules, and regulations or parts thereof, which are inconsistent with any provision of this Letter of Instruction are hereby repealed, amended or modified accordingly.

6.    This Letter of Instruction shall take effect immediately.

Since 19.07.98.