Practice question
A foreign-owned corporation proposes a financial-assistance agreement for large-scale harvesting of standing timber in a State forest. It argues that Article XII, Section 2's foreign assistance provision covers every kind of natural resource because trees have commercial value. Which response is correct?
- All commercially valuable resources automatically fall within the foreign assistance clause.
- The specific clause concerns large-scale minerals, petroleum and other mineral oils, not a blanket authorization for timber harvesting.
- The clause automatically transfers ownership of the forest to the financier.
- The word financial makes every constitutional resource restriction irrelevant.
- Any foreign corporation can remove State control by private contract.
Legal references
- 1987 Constitution, Article XII Section 2 fourth paragraph: https://lawphil.net/consti/cons1987.html
- La Bugal-B'laan Tribal Association v. Ramos, G.R. No. 127882, December 1, 2004, main resolution, mineral-resource assistance framework: https://lawphil.net/judjuris/juri2004/dec2004/gr_127882_2004.html
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