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An adventure in applied science - IRRI books - International Rice ...

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18 History of the <strong>International</strong> <strong>Rice</strong> Research Institute<strong>in</strong>vit<strong>in</strong>g him to New York at a mutually convenient time to sign a formalMemorandum of Understand<strong>in</strong>g, together with President Rusk of theRockefeller Foundation and President Henry Heald of the Ford Foundation.The outl<strong>in</strong>e of the Memorandum as prepared by Harrar and sent to Rodriguezwas subsequently modified somewhat by correspondence between Harrarand me and <strong>in</strong> conversations <strong>in</strong> New York between Harrar and Hill. I, ofcourse, discussed the changes with Rodriguez and Dalisay <strong>in</strong> the Philipp<strong>in</strong>es.The Memorandum of Understand<strong>in</strong>g (the full text of which appears <strong>in</strong>Appendix 3) between the Republic of the Philipp<strong>in</strong>es and the two foundationswas signed <strong>in</strong> New York on 9 December 1959 by Rodriguez, Rusk, and Heald.Its preamble po<strong>in</strong>ted out the importance of rice as a world food crop and theneed for <strong>in</strong>creas<strong>in</strong>g its production <strong>in</strong> order to keep up with the burgeon<strong>in</strong>gpopulations of Asia. It then described the proposed activities and objectives of<strong>IRRI</strong>, its organization, its powers, and the privileges be<strong>in</strong>g granted by theGovernment of the Philipp<strong>in</strong>es. It stated how <strong>IRRI</strong> would be f<strong>in</strong>anced andspelled out the arrangements made with the University of the Philipp<strong>in</strong>es forthe acquisition of land. It <strong>in</strong>dicated that the agreement should last for 50 years,but stated that if at any time it were mutually agreed that the Institute shouldbe term<strong>in</strong>ated, the land, build<strong>in</strong>gs, equipment, funds, and other assets belong<strong>in</strong>gto the Institute would become the exclusive property of the College ofAgriculture of the University of the Philipp<strong>in</strong>es.Soon after my arrival <strong>in</strong> the Philipp<strong>in</strong>es, Undersecretary Dalisay <strong>in</strong>formedme that the tax exemption status of <strong>IRRI</strong> as conta<strong>in</strong>ed <strong>in</strong> the PresidentialExecutive Order would be valid as long as the present adm<strong>in</strong>istration rema<strong>in</strong>ed<strong>in</strong> power. However, a new adm<strong>in</strong>istration could remove that privilegeif it so wished. Dalisay advised that <strong>IRRI</strong> take two steps to assure its cont<strong>in</strong>u<strong>in</strong>goperation <strong>in</strong> the Philipp<strong>in</strong>es. First, it should be <strong>in</strong>corporated as a nonprofit,nonstock philanthropic organization under the regulations of the Philipp<strong>in</strong>eSecurities and Exchange Commission (SEC). Secondly, it should make arrangementsto have a bill <strong>in</strong>troduced before the Philipp<strong>in</strong>e Congress which, ifpassed, would provide full tax exemption for <strong>IRRI</strong> and its foreign staffmembers. Such status could not be revoked unless a separate bill to do so werepassed at a future congressional session, an action that Dalisay felt would bemost unlikely.To register with the SEC, it was necessary that <strong>IRRI</strong> submit its Articles ofIncorporation, which had to be signed by five <strong>in</strong>corporators, the majority ofwhom had to be Filip<strong>in</strong>os.The first draft of the Articles of Incorporation was drawn up by AttorneyCecilio Honorio of Research Associates, Inc., an organization of which Dalisaywas a member. After modify<strong>in</strong>g it somewhat, I sent the draft to New York, <strong>in</strong>November 1959, where Hill and Harrar made further revisions. It was decidedthat the <strong>in</strong>corporators would be Harrar and Hill of New York; and Rodriguez,S<strong>in</strong>co, and Paul<strong>in</strong>o Garcia (chairman of the National Science DevelopmentBoard) of the Philipp<strong>in</strong>es.The revised version of the Articles of Incorporation was checked by AttorneyJovito R. Salonga, well known for his experience <strong>in</strong> such matters, and on

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