WHEREAS, Section 1 of Presidential Decree No. 488, dated June 21, 1974, created a Department of Industry, which shall be the primary policy, planning, programming, coordinating, implementing and administrative entity of the executive branch in the development, expansion and diversification of industry;

WHEREAS, to increase the effectiveness of this new Department in performing its functions of promoting stability and growth on the industrial sector, it has become necessary to improve its basic organizational structure;

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

SECTION 1. Section 2 of Presidential Decree No. 488 is hereby amended to read as follows:

"SECTION 2. Authority and Responsibility.—The authority and responsibility for the exercise of the powers and discharge of the functions of the Department shall be vested in the Secretary of Industry, hereinafter referred to as the Secretary. The Secretary shall be assisted by two Undersecretaries.

Whenever the Secretary is unable to perform his duties owing to illness, absence or other cause, or in case of vacancy in the office, the Undersecretary designated by the President shall temporarily perform the functions of said office."

SEC. 2. Section 6 of Presidential Decree No. 488 is hereby amended to read as follows:

"SECTION 6. Small and Medium Industries Commission.—There is hereby created in the Department a Commission on Small and Medium Industries which shall, among others, promote, assist and develop medium and small-scale industries; undertake studies, surveys, researchers and technical assistance programs in connection therewith; coordinate and integrate policies and programs for technical, financial, marketing, purchasing and promotional assistance to medium and small-scale industries rendered by the following government agencies:

1. Department of Local Government and Community Development
2. Department of Trade
3. U. P. Institute of Small-Scale Industries
4. Development Academy of the Philippines
5. National Manpower and Youth Council
6. Central Bank of the Philippines
7. Development Bank of the Philippines
8. NEDA/CB Industries Guarantee Loan Fund
9. National Science Development Board
10. Food Terminal, Inc.
11. Design Center Philippines

The above-named agencies shall nominate one (1) representative each to the Commission for purchase of coordination, consultation and liaison. This Commission shall replace the National Council for Medium and Small-Scale Industries. The Commission shall be headed by one of the Undersecretaries of the Department."

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 19th day of August in the year of Our Lord, nineteen hundred and seventy-five.