Preamble
WHEREAS, it is the policy of the government to dispose of its shares in the Philippine National Lines, to the private sector at a propitious time; WHEREAS, the government, cognizant of the vital role that shipping plays in the economic growth of the country, has given various incentives to Philippine shipping companies for the accelerated expansion and modernization of their fleet; WHEREAS, despite these incentives given to the industry, private shipping companies have failed to expand and modernize their fleet due to the heavy capital requirement involved; WHEREAS, statistics show that in 1974, the Philippine overseas fleet carried only a measly 7.8% of the country's foreign trade which accounted for a drain of some 600 million dollars representing freight payments to foreign flag carriers; WHEREAS, the situation is expected to get worse in the years to come unless the government will take an active part by way of pioneering the operation of a national line that will augment but not compete with the fleet requirement of the Philippine international trade; WHEREAS, such government involvement and initiative shall further the national objective and policy of developing national self-reliance, best serve the interest of national security, and facilitate the performance of other essential governmental functions; WHEREAS, a well developed shipping industry shall serve to meet the market demands and service requirements of neighboring countries in Southeast Asia. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following: