70 OG No. 30, 6180 (July 29, 1974)

[ PRESIDENTIAL DECREE NO. 489, June 24, 1974 ]

AUTHORIZING "THE EASTERN EXTENSION AUSTRALASIA AND CHINA TELEGRAPH COMPANY, LIMITED" TO TRANSFER THE FRANCHISE GRANTED TO THAT COMPANY UNDER REPUBLIC ACT NO. 808, AS AMENDED BY REPUBLIC ACT NO. 5002, TO THE EASTERN TELECOMMUNICATIONS PHILIPPINES, INC.

WHEREAS, the Eastern Extension Australasia and China
Telegraph Company Ltd. is the holder of a franchise to land, construct,
maintain and operate telecommunications system—for the reception and
transmission of messages between any points in the Philippines to points
exterior thereto, including airplanes, airships or vessels even though
such airplanes, airships or vessels may be located within territorial
limits of the Philippines," under Republic Act No. 808, as amended by
Republic Act No. 5002;

WHEREAS, under Section 12 of Republic Act No. 808, as
amended, which was approved and became effective on June 21, 1952, the
franchise thus granted to the Eastern Extension Australasia and China
Telegraph Company Ltd. has a term of fifty (50) years which will expire
only on June 21, 2002;

WHEREAS, under Section 15 of the same Act, the Eastern
Extension Australasia and China Telegraph Company, Ltd. is expressly
prohibited from leasing, transferring, selling or assigning the
franchise thus granted to it without the approval of the then Philippine
Congress being first had;

WHEREAS, the general policy of the State is to limit the
grant of franchise, certificates or other forms of authorization for the
operation of public utilities (such as a telecommunications carrier)
only to citizens of the Philippines or to corporations or associations
at least sixty per centum (60 per centum) of the capital of which is
owned by such citizens;

WHEREAS, the Eastern Telecommunications Philippines,. Inc.
is a duly organized corporation existing under the laws of the
Philippines, with at least 60% of its capital owned at all times by
Filipino citizens;

WHEREAS, in order to promote the achievement of the
aforementioned policy, it is necessary and desirable that the Eastern
Extension Australasia and China Telegraph Company Ltd. be authorized to
sell, transfer or assign the franchise granted to it under Republic Act
No. 808, as amended, to the aforesaid Eastern Telecommunications
Philippines, Inc.;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081 dated September 21, 1972, and General
Order No. 1 dated September 22, 1972 as amended, do hereby authorize the
Eastern Extension Australasia and China Telegraph Company Ltd. to sell,
transfer or assign the franchise granted to it under Republic Act No.
808, as amended by Republic Act No. 5002, to the Eastern
Telecommunications Philippines, Inc., a duly organized corporation
existing under the laws of the Philippines, with at least 60% of its
capital owned at all times by Filipino citizens, upon such terms and
condition as the said grantee and its prospective transferee may agree
upon, subject to the provision of Section 15 of Republic Act No. 808, as
amended.

This Decree takes effect immediately.

Done in the City of Manila, this 24th day of June in the year of
our Lord, nineteen hundred and seventy-four.

Source: Supreme Court E-Library