TO:	The Secretary of Agriculture & Natural Resources The Secretary of Local Government & Community Development The Secretary of Finance The Secretary of National Defense The Secretary of Agrarian Reform The Governor, Central Bank All Provincial Governors

Pursuant to Proclamation No. 1081, dated September 21, 1972, and Presidential Decree No. 262, dated August 2, 1973, the Palayan ng Bayan National Advisory Council, hereinafter known as the Council, is hereby created composed of the following:

	Honorary Chairman	The First Lady
	Honorary Vice Chairman	The Secretary of Agriculture and Natural Resources The Secretary of Local Government & Community Development
	Chairman.	Undersecretary J.D. Drilon, Jr,
	MEMBERS:
	Bureau of Plant Industry	Director Eliseo C. Carandang
	Bureau of Agricultural Economics	Director Leonardo Paulino
	Bureau of Lands.	Director Ramon N. Casanova
	Bureau of Forest Development	Director Jose Viado
	Bureau of Agricultural Extension	Director Francisco Saguiguit
	Bureau of Fisheries	Director Felix R. Gonzales
	Bureau of Soils	Director Juan Mariano
	National Food & Agricultural Council	Executive Director Domingo Panganiban
	Department of Agrarian Reform	Director Jose Medina, Jr.
	National Irrigation Administration	Administrator Alfredo Juinio
	UP College of Agriculture	Director P. Escuro
	Philippine Council on Agricultural Research	Director R. Abordo
	Department of Rural Banks	Mr. Zosimo Topacio, Jr.
	Development Bank of the Philippines	Mr. Emiliano Salvatierra
	Philippine National Bank	Mr. Manuel Soliven
	Bureau of Public Works	Director Desiderio Anolin
	Agricultural Pesticide Institute of the Philippines	Mr. Rene Capinpin
	Philippine Constabulary	General Fidel Ramos
	Department of Local Government & Community Development.	Representative of the Secretary
	Government Service Insurance System	Representative of the General Manager
	Social Security System	Representative of the Administrator

The Council shall provide operational, financial and technical advice to the provincial governors in the identification and management of their respective Palayan na Bayan projects. The following are guidelines which shall be followed in the implementation of this Letter of Instruction:

1. The Council shall meet at least once a month;
2. The Council shall organize a Secretariat of appropriate size to be located in Malacañang and to perform duties as the Council may direct. The Chairman of the Council is hereby authorized to create positions to staff the Secretariat, prescribe their rates and emoluments, appoint or designate officials and employees to fill such positions and approve the grant of allowances to Council members and Secretariat staff.  He is, likewise, authorized to approve detail to the Secretariat of such necessary personnel from any department, office, agency or instrumentality of the National Government, including government owned or controlled corporations and local government instrumentalities.
3. A Land Identification Committee shall immediately be organized in each province, with the District Land Officer as Chairman and the District Forester and Provincial Soil Technologist as members, to promptly assist the provincial governor in the identification of the site for the Palayan ng Bayan project. The Committee shall work in consultation with the provincial DAR representative. The site shall be selected from the following:
   1. Vacant alienable and disposable lands of the public domain.
   2. Public land subdivision projects not actually occupied and cultivated by applicants-settlers.
   3. Vacant unclassified lands of the public domain.
   4. Abandoned, idle o.r unused pasture areas and military, school penal colony reservations.
   5. Timberland without trees of commercial value and/or watershed areas which are suitable for fanning, the use of which will not impair forest and water conservation practices.

Provided, that preference in the selection shall be given to areas that will involve minimum development cost and disturbance of existing property rights or existing arrangements regarding these lands.

4. The provincial governor shall be responsible for the implementation of the Palayan ng Bayan project in his province. He shall organize a provincial development committee to assist him in the management, direction and control of the project. Operational plans shall be prepared by the provincial development committee and approved by the Provincial Governor and this  shall be the basis for audit by the General Auditing Office of funds loaned to the province for the Palayan ng Bayan project;
5. The Council shall provide written guidelines relative to organization, financing and agricultural technology which shall be used by the provincial governors in the management of the projects.
6. The Council shall formulate criteria for the awards to be extended to provinces and governors participating in the Palayan ng Bayan project.

The following awards shall be provided by or through the First Lady, each crop season;

a. P100,000

For the province with the highest
yields and production (1st prize)

b. P70,000

(2nd prize)

c. P50,000

(3rd prize)

d. A National Medal of Award for governors whose provinces win prizes.

7. The provincial governors shall submit monthly management and financial reports to the Chairiaa.ii of the Advisory Council, thru the Secretariat, who in turn, shall inform all the officials of the Palayan ng Bayan project.  The management report shall contain the progress and problems of the respective projects of the governors. A financial report, shall likewise, be rendered by the Council to the Secretary of Finance.

The Council through its chairman is authorized to call1 upon any agency of the government to assist in the implementation of the Palayan ng Bayan Project.

Done in the City of Manila, this 2nd day of August, in the year of Our Lord, nineteen hundred and seventy-three.

				(Sgd.) FERDINAND E. MARCOS
				President
				Republic of the Philippines
	By the President:
	(Sgd.) ALEJANDRO MELCHOR
		Executive Secretary