WHEREAS, the creation of the Municipality of Kalinga-lan Caluang for the purpose of accelerating the economic development of the Municipality of Luuk and making it responsive to the present drive on peace and order under the New Society was made possible by Presidential Decree 838;

WHEREAS, in the implementation of the said Decree there has been a consensus among the constituents concerned that further refinements have to be made with respect to the definition of the boundary between the two municipalities as well as the reconstitution of barangays to preserve their integrity as political and social units;

WHEREAS, these refinements will serve to enhance even further the attainment of the goals for which Presidential Decree 838 was intended; and

WHEREAS, it is necessary that funds should be provided for the initial operation of the new Municipality of Kalingalan Caluang;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution do hereby amend Presidential Decree 838 as follows:

1. The boundary between the Municipalities of Luuk and Kalingalan Caluang shall be a line connecting these points: Mt. Tayungan; Junction of the Kulay-Kulay-Pang Road and the Camp Andres-Karungdung Road; Mapal Hill Linghab Hill; and one kilometer due west of Guimbaon, In case of conflict, all barangays and sitios generally southwest of this dividing line shall belong to the Municipality of Kalingalan Caluang while those generally northeast of this line shall belong to the Municipality of Luuk.
2. The barangays of Karungdung, Pitogo, Kan Lagay, Kambing Pangdan-Pangdan, Tunggol, Maskid Punjungan, Pang and Maskid Bayli shall comprise the Municipality of Kalingalan Caluang; all other barangays shall remain with the Municipality of Luuk.
3. The sum of one hundred fifty thousand pesos (P150,000.00) is hereby authorized to be appropriated from funds in the National Treasury not otherwise appropriated and release to the new Municipality of Kalingalan Caluang for organizational and initial operating expenditures of the new municipality.

This Decree shall take effect immediately.

Done in the City of Manila, this 5th day of February, in the year of Our Lord, nineteen hundred and seventy-six.