WHEREAS, the continuous management, development and utilization of the forest resources are indispensable to the economic development of the country and social well-being of the Filipino people;

WHEREAS, scientific forest management, rational development and vigilant protection are essential to the continuous productivity and economic utilization of these resources;

WHEREAS, Government efforts in the scientific treatment of these forests have been invariably inadequate and inappropriate to cope with the accelerating rate of utilization, resulting in the increasing hectarage of unproductive forests and eroded lands, decreasing areas of commercial forests and raising incidence of damaged watersheds, ravaged wildlife sanctuaries, and abused grazing lands;

WHEREAS, if this critical trend continues unabated and unless forest management, development, and protection methodologies are improved through intensified forest biological and economic research, it is inevitable that these valuable resources will no longer be able to meet the increasing demands of the growing population and the country's economic development needs;

WHEREAS, the root cause of this situation is the grave inadequacy of forest research which is the basis for forest management, development and protection practices;

WHEREAS, the current accelerated wood utilization research should be properly accompanied by an equally aggressive forest production and harvesting research in order to attain a balance necessary for the forest resource to contribute its maximum share to the economic development of the country;

WHEREAS, in order to initiate and maintain an effective research program attuned to the needs of forest management, production and protection, it is necessary to set up a semi-autonomous organization free from the administrative complexities of bureaucratic agencies.

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

SECTION 1. A Forest Research Institute, hereinafter referred to as FORI is hereby created in the Department of Natural Resources to integrate and to conduct forest production and harvesting researches all over the country in line with national forestry research program developed by the Philippine Council for Agricultural Research (PCAR); Provided, That policy-oriented economic research of the Bureau of Forest Development shall remain with the said Bureau.

SEC. 2. All forest research functions of the Bureau of Forest Development, including applicable appropriations, records, equipment, property and qualified personnel, except the economic and organization researches being conducted by it for the purposes of planning, programming and policy formulation, are hereby transferred to the FORI. In order to avoid jurisdictional conflict in the conduct of field research the FORI and the Bureau of Forest Development shall draw up a memorandum of agreement regarding working arrangements and other conditions as may be necessary to ensure the smooth operation and implementation of forest research programs.

SEC. 3. There is hereby created a Board of Trustees, hereinafter referred to as Board, which shall be the policy-making and governing body of the FORI, to be composed of:

a.	Secretary of Natural Resources		Chairman
b.	Director General, Philippine Council for Agricultural Research.		Member
c.	Director, Bureau of Forest Development		Member
d.	Dean, U.P. College of Forestry		Member
e.	Commissioner, Forest Products Research and Industries Development Commission.		Member
f.	President, Philippine Forest Research Society		Member
g.	Director, Forestry Research Division, Philippine Council for Agricultural Research		Member
h.	Two (2) representatives of the Forestry "Sector who shall be appointed by the Secretary of Natural Resources, upon recommendation of the wood industry association		Member

SEC. 4. The Board shall meet before the end of each fiscal year to deliberate and approve the ensuing year's research and budgetary programs. It may also meet anytime upon call by the Chairman to deliberate on urgent matters, including, but not limited to, the consideration of appointments of personnel, policy changes and matters requiring immediate attention.

SEC. 5. The Board is hereby authorized to formulate appropriate rules and regulations governing the operations of FORI, including the staffing and the remunerations or compensation of its officers and employees. It is likewise authorized to construct the necessary research and office buildings and facilities and to acquire or purchase the necessary site or equipment.

SEC. 6. The Board shall establish, for the efficient and effective implementation of the research programs of the FORI, at least five (5) Forest Experiment Stations or Regional Research Centers the location of which shall be representative of each climatic type.

SEC. 7. The FORI shall be headed by a Director, who shall be assisted by an Assistant Director. The Director of the PCAR Forestry Research Division shall be the ex-officio Director of the FORI.

The Assistant Director shall be appointed by the Board and must have the following qualifications:

1. A natural-born citizens of the Philippines;
2. A holder of at least a Master of Science in Forestry degree or its equivalent in experience as determined by the Board;
3. Has at least ten (10) years experience in Forestry research and administration.

SEC. 8. The Director shall be charged with all the administrative and supervisory functions of the FORI, as well as the implementation of the policies and programs adopted by the Board.

SEC. 9. The Director shall, except as otherwise provided for herein, appoint the officers and employees of the FORI, subject to the approval of the Board: Provided, That priority shall be given to qualified personnel of the Bureau of Forest Development.

SEC. 10. The Director may, with the approval of the Board, create as many divisions and sections in such divisions as may be necessary. He shall recommend to the Board the establishment of additional experiment stations or research centers as may be required in carrying out effectively its research program.

SEC. 11. Aside from general appropriations as may be provided by law, there shall be collected the amount of P1.00 for every cubic meter of timber cut for commercial purposes inside public forests and other forested lands to be used or expended strictly for forest research under the FORI in accordance with the provisions of this Decree, and the policies and research and budgetary programs adopted by the Board. The amount shall be collected by the Bureau of Forest Development which shall remit to the National Treasury its monthly collection to form a Special Fund from which 90% shall be credited to the account of FORI and 10% to the Bureau of Forest Development to maintain the latter's policy-oriented and economic researches: Provided, That the imposition of this amount shall commence only after Forestry Administrative Order No. 64, series of 1972, shall have been revoked or superseded by law or subsequent order.

SEC. 12. The Board shall promulgate such rules, regulations, definitions and instructions for the effective implementation of the provisions of this Decree.

SEC. 13. Should any of the provisions herein be subsequently declared unconstitutional, the same shall not affect the validity or legality of the other provisions.

SEC. 14. All laws, decrees, orders, rules, and regulations, or any part thereof which are inconsistent herewith are hereby revoked or amended accordingly.

SEC. 15. This Decree shall take effect upon approval.

Done in the City of Manila, this 18th day of December, in the year of Our Lord, nineteen hundred and seventy-four.