TO:	The Minister of National Defense, the Minister of the Budget, the Chief of Staff, AFP, the Director General, INP, the National Treasurer

WHEREAS, certain peculiarities inherent or unique to the operations and funds disbursement of an agency must be recognized;

WHEREAS, the adoption of stricter economy measures and improved funds control should not unduly burden an agency in carrying out its functions/activities;

WHEREAS, the nature of AFP and INP operations require some degree of flexibility in the disbursement of funds alloted to it;

WHEREAS, more than ever, because of the many factors that threaten the stability of our nation, the flexibility and operational effectiveness of the AFP must preserved;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order and direct:

1. The logistics activities of the AFP and INP in support of the following are exempted from, the provisions of LOI 1408 and its implementing circulars/instructions:
   
   
   1. Combat/Security Operations
   2. Police Operations
   3. Civil Military Operations
   4. Disaster and Relief Operations
   
   
2. The above-mentioned exemptions are in additions to those provided in implementing circulars/instructions (OBM/COA/MIN OF FIN JR NO. 2-84 AND JC NO. 2-84-A) and those that may still be provided in the future.
   
   
3. Cash Disbursement Ceilings (CDC) for the above-mentioned transactions shall be valid for a period of one year from the date of issuance.

Done in the City of Manila, this 8th day of October, in the year of our Lord, nineteen hundred and eighty-four.