Preamble
WHEREAS, it is the policy of the government to encourage the foreign investments in the Philippines to augment domestic capital; WHEREAS, some domestic corporations and resident foreign corporations obtain loans from abroad to be used in acquiring equity capital in other domestic corporations WHEREAS, some intercorporate dividends are derived from equity investments in domestic corporations financed with foreign borrowings; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby order and decree the following: