TO:  
                     
WHEREAS, Proclamation No. 1628 established the concept of Regional Autonomy and created a Provisional Government covering thirteen (13)  provinces and cities in Southern Philippines;

WHEREAS, the members of the Provisional Government have been duly appointed and have begun to discharge their function;

WHEREAS, the full support of all agencies of national and local government is necessary to ensure the sue of the Provisional Government;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President the Philippines, do hereby issue these instructions:

Organization and Staffing

1. The Provisional Government shall design its organization, a staffing pattern, and a budgetary program and project structure, and shall prepare estimates of its budget for operational needs for submission to the President through the Budget Commission, within a period of thirty (30) days.
2. In the meantime that the Provisional Government is organizing itself, the Regional Offices of DLGCD in Regions IX and XII shall act as its administrative unit and the NEDA Regional Offices in Regions IX and XII as its planning unit.  The said Regional Offices shall target for phase-out of such direct assistance no earlier than December 31, 1977.
3. In order to expedite the conduct of the operations of the Provisional Government, it is hereby authorized to ask for the detail of staff members from the Regional Commissions IX and XII, the national government agencies operating within the region, the various local government units, and the Southern Philippines Development Authority and other government owned and controlled corporations operating in the Region.  The basic salaries of such detailed personnel shall be shouldered by their mother organizations but the Provisional Government is hereby authorized to pay the allowances, travel and other necessary costs at standard national government rates, for personnel of local government units detailed to it.

Project Development and Implementation

4. The Provisional Government shall be responsible for planning, supervision, monitoring and enforcement of projects funded by or through the said Provisional Government.  Implementation, however, shall be done through local government units, the Regional Commissions, national government agencies, or government owned and controlled corporations as the Provisional Government may decide.
5. The Regional Commissions in Regions IX and XII and the Southern Philippines Development Authority shall implement only those development project within the Autonomous Region as may be approved by the Provisional Government, regardless of funding source.
6. All agencies of the national government, including government owned and controlled corporations and the various Regional Development Councils, shall furnish the Provincial Government with a copy of their existing programs and projects pertaining to the thirteen (13) provinces and cities in the Southern Philippines Autonomous Program Region.  They shall, moreover, prepare future plans, programs, and  projects, in close and continuous consultation with the Provisional  Government through their Regional Offices.

Relationship to Other Government Agencies

7. The Provisional Government shall independently monitor, with the assistance of local government units, the physical accomplishment of national government projects (including those of government corporations) in the Autonomous Region, particularly national highways and public works projects.  Monitoring reports with recommendations for modification, suspension, or other action as may be needed to improve effectiveness and economy, shall be sent directly to the President, copy furnished the Secretary of Local Government and Community Development, the head of the National government implementing agency concerned, and the Budget Commission.
8. The Presidential Commission on Reorganization shall study and recommend on the details of organizational relationship and related matters concerning the governments of Autonomous Regions, the Regional Development Councils, the Regional Commissions, the DLGCD Regional Offices, the SPDA, local governments, and other agencies of government.

Funding Releases and Coordination

9. All requests of local government units for national government assistance under P.D. No. 144 shall be considered only with the approval of the Provisional Government as part of an integrated program of national government assistance to local governments.
10. Releases of national government public works, roads, and maintenance funds to the Provisional Government shall be made without any deductions for overhead or other administrative expenses imposed by DPWTC, DPH, or other national agency.  Neither shall the Provisional Government nor the Regional Commissions impose any deductions.  Administrative/overhead expenses shall be borne from the regular budgetary allotment of these agencies.
11. Releases of national government funds to the Provisional Government shall be made by the Budget Commission in care of the Department of Local Government and Community Development Regional Office in Zamboanga City.  The DLGCD regional office shall then sub-allot the funds to the implementing agencies as may be approved by the Provisional Government.  In the event that project implementation is undertaken by local government units, funds shall be released by DLGCD through the Regional Commissions concerned, except for Palawan, Davao del Sur and South Cotabato, where funds shall be released directly to the Provincial governments concerned.
12. The acting Commissioner of the Budget shall release the sum of five hundred thousand pesos (P500,000) from the Special Activities Fund to the Provisional Government, to enable it to meet its operational requirements, including allowances to detailed personnel, equipment and operating and maintenance expenses.  Its staffing pattern and compensation scales shall however be subject to approval by the Budget Commissioner following standard budgetary procedure and the compensation plans, salary ranges and allowances shall follow the national compensation plans and policies. Effective immediately.

Done in the City of Manila, this 13th day, of May in the year of Our Lord, nineteen hundred and seventy-seven.