WHEREAS, the International Declaration of the Rights of the Child states that mankind owes to the child the best it has to give";

WHEREAS, one of the priority thrusts of the New Society is to plan and carry out a comprehensive program for the development of children and youth of our nation;

WHEREAS, the Children and Youth Welfare Code (PD 603) recognizes the child as one of the most important assets of the nation; and

WHEREAS, it is the concern of Government to assist and provide material and financial support in the establishment and maintenance of a Lungsod ng Kabataan, primarily to benefit the children of the Philippines, and to further enhance the research in pediatric diseases, training of medical and technical personnel, and specialized medical services for the prevention and treatment of children's diseases;

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

SECTION 1. Creation of the Lungsod ng Kabataan.— There is hereby created a trust, for the benefit primarily of the Filipino people, under the name and style of Lungsod ng Kabataan.

The Lungsod ng Kabataan shall be administered by a Board of Trustees, composed of seven (7) members, to be appointed by the President of the Philippines. The Director of the Center shall be appointed by the Board of Trustees.

The six appointive members of the Board of Trustees shall serve without compensation for a period of four (4) years and until their successors shall have been appointed, and qualified. Any vacancy in the Board shall be filled by appointment by the President of the Philippines, and the appointee shall serve for the unexpired term. The Board of Trustees of the Lungsod ng Kabataan shall elect a Chairman from among themselves, who shall be presiding officer of the Board of Trustees.

The Director of the Lungsod ng Kabataan shall serve as Vice-Chairman of the Board. The Director shall act as the chief executive officer of the Lungsod ng Kabataan, with authority, among others, to appoint, remove, and fix the compensation of the personnel thereof, subject to the approval of the Board of Trustees.

Four (4) members of the Board of Trustees shall constitute a quorum to transact business and any decision of such four members on any matter duly presented to the Board of Trustees shall constitute a valid and binding act of the Lungsod ng Kabataan.

SEC. 2. Property of the Center.? The Property of the Lungsod ng Kabataan shall consist of such real, personal, mixed, and other type of property, now owned or reserved for, or may hereafter be given, donated, acquired, transferred or conveyed to, the Lungsod ng Kabataan by the Philippine Government, its branches and instrumentalities, by any foreign government, as well as by trust, foundations, corporations, or persons, alien or domestic, in order to carry out its purposes and objectives as set forth herein.

SEC. 3. Purposes and objectives.—The purposes and objectives of the Lungsod ng Kabataan are:

1. To construct, establish, operate and maintain facilities for the children's welfare, including a specialized hospital for children;
2. To promote, encourage and engage in scientific research on the prevention of pediatric diseases and the care and/or treatment of pediatric patients and related activities, including sponsorship and conduct of relevant congresses, conventions, seminars, and conferences;
3. To stimulate and/or underwrite scientific researches on biological, demographic, social, economic, eugenic, physiological aspects of pediatric disorders and abnormalities and their control; and gather, compile, and publish the findings of such researches for public dissemination;
4. To facilitate and encourage the dissemination and exchange of ideas and information on the prevention, treatment and control of pediatric diseases; to arouse, enhance and develop public interest in children, general health and physical fitness, especially on the promotion of health and rehabilitation, and other relevant or related fields;
5. o encourage and/or undertake the training of physicians, nurses, medical technicians, health officers and social workers on the practical and scientific conduct and implementation of pediatric services;
6. To assist universities, hospitals and research institutions in their studies of congenital and acquired anomalies, to encourage advanced training on matters of, or affecting the child, and related fields and to support educational programs of value to general health;
7. To encourage the formation of other organizations on the national, provincial, city, municipal or barangay level and to coordinate their various efforts and activities for the purpose of achieving a more effective approach to the common problem relative to the objectives herein enumerated; and
8. To extend pediatric services to the general public, to help prevent, relieve or alleviate the afflictions and maladies of children and youth specially the poor and less fortunate in life, without regard to race, creed, color or political belief.

SEC. 4. Powers.—For the attainment and/or furtherance of the above purposes and objectives, the Lungsod ng Kabataan as a body corporate, acting through its Board of Trustees, shall have all the powers pertaining to a juridical person, and is therefore authorized, among other things:

1. To acquire and hold in any manner property of whatever nature or description, and to dispose of such property under any mode of encumbrance or conveyance;
2. To contract and be contracted with;
3. To mortgage, lease, sell, transfer, convey or otherwise dispose of its properties;
4. To solicit and receive donations, endowments and funds in the form of contributions, whether in cash or in kind, from both the public and private sectors;
5. To open such accounts in banks and other financial institutions, and to disburse such funds or invest the same as the Board may direct to accomplish or advance the purposes or interest of the Lungsod ng Kabataan;
6. To invite foreign pediatric specialists and similar experts in the various medical fields not available in the country; to train the personnel or trainees or residents of Lungsod ng Kabataan;
7. To send the personnel of the Lungsod ng Kabataan to research institutes, medical institutes or universities for advance training or observation and to attend international or regional conventions, conferences, congresses, seminars as the Board may deem necessary to accomplish the purposes and objectives of the Lungsod ng Kabataan;
8. To adopt a set of by-laws, rules and regulations not inconsistent with law and the provisions hereof to govern the administration and operation of the affairs of the Lungsod ng Kabataan; and
9. To do all such other acts and things as are or may be necessary or incidental for the accomplishment of the purposes and objectives of the Lungsod ng Kabataan.

SEC. 5. Tax exemptions, etc.—All donations, contributions or endowments which may be made by entities or persons to the Lungsod ng Kabataan shall be exempt from income and gift taxes, and the same shall be further deductible in full for purposes of computing the maximum amount deductible under Section 30, paragraph (h) of the National Internal Revenue Code, as amended.

The Lungsod ng Kabataan shall be exempt from the payment of all taxes, charges and lees imposed by the Government or any political subdivision or instrumentality thereof.

All income earned by foreign doctors who shall use the facilities of the Center shall be tax exempt.

SEC. 6. Assistance from government offices. —The Lungsod ng Kabataan may call upon any ministry, bureau, office, agency or instrumentality of the Government, including government-owned or controlled corporations, for such assistance as it may need in the pursuit of its purposes and objectives.

All individuals, entities and institutions are hereby enjoined to render full assistance and cooperation to the Lungsod ng Kabataan in the accomplishment of its objectives and activities.

SEC. 7. Government contributions.— The amount of ten million pesos (P10,000.00) is hereby appropriated as contribution of the National Government for the initial operations and maintenance of the Lungsod ng Kabataan. The Lungsod ng Kabataan shall be under the Ministry of Human Settlements and the necessary amount to support the continued operation and maintenance of the Children's City shall be appropriated and released, subject to the approval of the President of the Philippines.

SEC. 8. Auditing.—The books and accounts of the Children's City shall be under the charge of a Resident Auditor, subject to periodic auditing by the Chairman of the Commission on Audit, or his duly authorized representative.

SEC. 9. Annual report.—The Lungsod ng Kabataan shall render to the President of the Philippines an annual report of its activities and recommendations.

SEC. 10. Effect of dissolution of the Center.—If, for any reason the Lungsod ng Kabataan is dissolved, its property remaining at the time of such dissolution shall revert to the Philippine Government for disposition in accordance with law.

SEC. 11. Effectivity.? This Decree shall take effect immediately.

Done in the City of Manila, this 10th day of August, in the year of Our Lord, nineteen hundred and seventy-nine.

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