Section 3
SEC. 3. Paragraphs (d) and (e) of Section two of the same Act, as amended, are further amended to read as follows: "(d) Cash payment.&mdashThe twenty million dollars cash payment shall accrue to a Trust fund to be used exclusively for the benefit and rehabilitation of veterans of the Philippines in World War II, and their widows and orphans, as Congress may from time to time provide: Provided, That the procurement of consumers goods intended for veterans, their orphans and widows, of World War II shall be undertaken by the Reparations Mission upon the recommendation of and in consultation with the NAMARCO, and the same shall be disposed by the latter and the proceeds thereof shall be deposited in accordance with the provisions of this section. There shall be advanced from the Special Economic Development Fund created in Section three of this Act such amounts as may be needed to complete the scheduled cash payments of four million United States dollars every year for a period of five years in such a manner that the total cash payments of twenty million United States dollars shall have been collected at the end of five years. "(e) Private sector preferred.&mdashIn general, preference in the procurement of reparations goods and services shall be given to private productive projects: Provided, That during the first year of the effectivity of the Agreement all reparations goods and services which may be procured shall be earmarked exclusively for government projects, and, thereafter, government projects shall be given preference only if they concern electrification, educational material equipment and machineries, cottage industries, fire-fighting equipment, telecommunication or railroad or would foster the growth of private productive capacity, or are needed in the performance of essential public services, or involve productive projects which private enterprise is not yet capable or desirous of developing but which are urgently necessary in the interest of over-all national economic growth and only when there are appropriations providing for their procurement already embodied in existing law: Provided, further, That where goods are procurable under the Agreement in sufficient quantities, no dollar allocation shall be made, nor any bond, debenture, or bond issues be floated for the importation of such goods for use in any government projects: Provided, further, That not more than sixty per cent of the total value of the reparations to be paid by Japan during the twenty-year period shall be allocated to the private sector: Provided, further, That no private person, private company, establishment, or entity shall be granted more than one application for reparations goods and services and in no case the aggregate total of reparations goods and services granted to any such private person, private company, establishment, or entity shall be more than one and a half million dollars, except when a greater amount is necessary for the realization of any project certified by the President of the Philippines after consultation with the National Economic Council to be vital to the economic development of the country and except further that the applicant may further apply for expansion or development purposes when so authorized by the President of the Philippines after consultation with the National Economic Council: Provided, further, That if the private sector does not or cannot make full use of its allocation, then the portion not so used shall be made available to the government Provided, finally, That where there are two applicants for the same reparations goods, all other things being equal, the person who first applied shall be given preference."