1. For the purpose of a more effective administration of the natural resources in Mindanao and Sulu and to curb practices of certain government officials and employees who take advantage of their official position in acquiring directly or indirectly interests therein, I, Manuel L. Quezon, President of the Philippines, by virtue of the powers vested in me by law, do hereby promulgate the following rules and regulations governing the acquisition of public lands, forest licenses, leases or concessions, license agreements, fishpond permits, commercial fishing boat licenses, mining and oil concessions, or any license or permit for the exploitation of any natural resources in Mindanao and Sulu, by officers and enlisted men of the Philippine Army, provincial governors, government officials and employees having something to do with the disposition of natural resources and other officials holding positions of responsibility, in Mindanao and Sulu:

(a) No application filed by any official or employee, or officer or enlisted man of the Philippine Army, their wives or immediate relatives shall be allowed for any of the above-enumerated resources within the areas of their immediate jurisdiction, nor in any areas in which they had in their present or former official capacity classified and surveyed land or were employed in the direct administration of rules and regulations governing the aforesaid resources.

(b) Applications for the above-mentioned resources must have the endorsement of their immediate chief of section, of their division chief, and the director or chief of the bureau, office or establishment concerned, the last endorsement to include a short history of the services in the Government of the applicant, his aptitude, finances, character and possible infringement of his duty as a government employee if any. All the papers relative thereto shall then be submitted for the approval of the Head of the Department under which the applicant serves. No final action on the application shall be taken unless the comment of the Commissioner of Civil Service has been first secured.

(c) Any government applicant must make a sworn statement as to the finances available and the party or parties financially interested, and if foreigners are involved an additional statement must be sworn to that all the provisions of the constitutional laws, rules, regulations governing the acquisition of the applied for resources are complied with.

(d) Any application granted to a government employee which subsequently has been found to be not true to fact shall be automatically cancelled and all improvement shall accrue to the Government and the employee subject to expulsion from the service.

(e) Any government employee, officer or enlisted man of the Philippine Army who has been found not following these regulations, and it is evident that he has tried to circumvent these rules shall be subject to the provisions of paragraph (d).

2. All orders, circulars, instructions or announcements inconsistent with this Order are herby revoked.

Done at the City of Manila, this 14th day of January, in the year of Our Lord, nineteen hundred and thirty-eight, and of the Commonwealth of the Philippines, the third.