WHEREAS, the basic objective of the State is to hasten up the pace of socio-economic development of the country, especially in areas comprising Muslim Mindanao;

WHEREAS, the government has engaged in intensified government projects necessitating close supervision by a well equipped and organized administrative machineries;

WHEREAS, the effective implementation of the declared program of the government on development hinges primarily on the administrative efficiency of each and every local government unit;

WHEREAS, the creation of the proposed municipality will redound and contribute greatly to the maintenance of peace and order and to the pacification drive to restore normalcy in the area;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby order and decree, as part of the law of the land, the following:

SECTION 1. Barangays Payao, Calape, Guinobatan, Balungisan, Balian, Katipunan, Labatan, Dalawe, San Roque, Minundas, Mayabo, Talaptap, Silal, Balugo, Binangonan, Kulisap, Sumilong, Upped Sumilong and Kulasian, all in the Municipality of Siay, Province of Zamboanga del Sur, are hereby detached and eparated therefrom to form and constitute into a distinct and independent municipality which is hereby created to be known as the Municipality of Payao without affecting in any manner the legal existence of the Municipality of Siay. The new municipality shall be bounded as follows:

"Starting from point 1, center of Steel Bridge over Sibu-guey River of Pagadian-Zamboa,nga City Road; thence moving in a Southwesterly direction with an approximate distance of 26,000 meters with bearing of S30°00'W until it intersects the southernmost tip of Lacsiso point called No. 2, thence, following the shoreline of Lacsiso Bay and Sibuguey Bay in a clockwise direction with an approximate distance of 50,500 meters until it intersects the center of the mouth of Sibuguey River called point No. 3; thence following the center of the upstream course of Sibuguey River with an approximate distance of 17,400 meters until it intersects back to point No. 1, the point of beginning."

The Seat of the Government of the newly created municipality shall be in Barangay Payao.

SEC. 2. Except as hereinafter provided, all provisions of law, now or hereafter applicable to regular municipality shall be in Barangay Payao.

SEC. 3. The present elective municipal officials of the Municipality of Siay shall continue to perform their duties as such officials in the newly created Municipality of Payao until the Municipal Officials of said Municipality shall have been appointed by the President. Such officials so appointed shall hold office until their uccessors shall have been elected in the regular elections for municipal officials following the issuance of this Decreeand shall have qualified, unless sooner removed at the pleasure of the President. Such appointive officers and employees as may be necessary to organize or to complete the government personnel of the Mnicipality of Payao shall be appointed as provided for under existing laws.

SEC. 4. Upon the effectivity of this Decree, the proportionate share of Payao in the obligations, funds, assets and other property of the Municipality of Siay shall be transferred by the President to the newly created municipality upon the recommendation of the Commission on Audit.

SEC. 5. All laws or parts of laws as well as all executive orders or regulations inconsistent herewith are hereby repealed or modified accordingly.

SEC. 6. This Decree shall take effect immediately.

Done in the City of Manila this 11th day of November, in the year of Our Lord Nineteen Hundred and Seventy-Seven.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant