TO:   SUBJECT:

1. Intelligence and confidential funds provided for in budgets of agencies of the national government, with the exception of the Armed Forces of the Philippines and other agencies in the Ministry of National Defense shall be released on a project basis as may be approved by the President.
2. Intelligence and confidential funds in the budget of the Ministry of National Defense and its component/attached agencies shall be released in accordance with the following guidelines:
   1. The Minister of the Budget shall automatically release only such funds as are budgeted for the itemized personal services positions at the NISA, ISAFP and other intelligence agencies and for the basic operating requirements of the agencies;
   2. Funding for ongoing intelligence projects as of the beginning of the year shall be released by the Minister of the Budget only upon approval and recommendation of the Minister of National Defense, who shall prepare an estimate of the funding requirements for such projects for the year;
   3. Funding for projects as may be approved in the course of the year shall be released by the Minister of the Budget only upon approval and recommendation of the Minister of National Defense;
   4. Total releases of intelligence funds as stated above shall not exceed the amount programmed for the purpose,  Unprogrammed intelligence appropriations or amounts held in reserve shall not be released without the approval of the President.

Done in the City of Manila, this 4th day of October, in. the year of Our Lord, nineteen hundred and seventy-eight.