CREATING AND ESTABLISHING THE PHILIPPINE CENTER FOR ADVANCED STUDIES AT THE UNIVERSITY OF THE PHILIPPINES, DEFINING ITS ORGANIZATION, POWERS, FUNCTIONS AND RESPONSIBILITIES.

WHEREAS, there is need for total involvement of all sectors
of society in the reform and development of Philippine culture and
society;

WHEREAS, national development is a complex process
requiring the concerted efforts of all sectors of society especially the
expertise and competence of specialists in all fields of endeavor;

WHEREAS, one of the goals of the New Society is for the
Philippines to take a more active role in international affairs and
thereby derive benefits for the country therefrom; and

WHEREAS, there is need to mobilize all institutions of
higher learning especially state institutions, as full partners of
Government in order to (1) bring together specialists from various
disciplines to conduct systematic research at fundamental levels; (2)
assist the central Government in the formulation of policies and
programs; (3) address themselves to the examination of issues of central
concern to the Government, such as problems of national integration,
social, technological and cultural change, social effects of national
policy, international developments and their impact on our national
life, as well as security and strategic problems; and (4) establish
degree programs and participate in existing instructional programs in
order to produce Filipino experts or specialists for the nation;

NOW, THEREFORE, I, FERDINAND E. MARCOS, Commander-in-Chief
of all the Armed Forces of the Philippines, and pursuant to Proclamation
No. 1081, dated September 21, 1972, as amended, in order to effect the
needed mobilization of national institutions for the purpose of
nation-building do hereby order and decree that the law creating the
Asian Center, Republic Act No. 5334, be amended as follows:

1. There is hereby established a Philippine Center for Advanced
   Studies in the University of the Philippines which shall absorb the
   present Asian Center, its personnel, building and facilities.
2. The Philippine Center for Advanced Studies shall be composed
   of the following Institutes and Divisions, which are also hereby ordered
   established:
   1. Institute of Islamic Studies
   2. Institute of Philippine Studies
   3. Institute of Asian Studies
   4. Institute of Strategic Studies
   5. Division of Basic Research
   6. Division of Advanced Projects
   7. Division of Academic Instruction
3. The Philippine Center for Advanced Studies shall be an
   autonomous unit of the University of the Philippines system. The basic
   administrative framework of the Philippine Center for Advanced Studies
   (PCAS) shall follow the organizational and administrative scheme for all
   autonomous units of the University of the Philippines System with the
   following modifications:
   1. There shall be a Board of Trustees
      that formulates and reviews the objectives and policies as well as
      nominate the officers and staff of the PCAS.

      The Board shall have seven (7) members, namely, the Executive
      Secretary, the Secretary of National Defense, the Secretary of Foreign
      Affairs, the Secretary of Education and Culture, the President of the
      University of the Philippines, the Chancellor and Vice Chancellor of the
      PCAS.

   2. The PCAS shall be headed by a Chancellor who shall
      be responsible for the leadership and overall management and
      functioning of the Center.
   3. The following shall constitute the administrative
      officers of the PCAS: the Chancellor, Vice Chancellor, Secretary,
      Directors of the three Institutes, and Chairmen of the three Divisions.

4. The Board of Trustees of the PCAS shall take necessary steps in
   formulating the functions and objectives of the Institutes and
   Divisions created by this Decree

5. To fulfill its purposes, the PCAS shall have the following
   functions:
   1. To adopt, alter, and use a
      corporate seal;
   2. To take and hold by bequest, devise, gift, purchase, or
      lease, either absolutely or in trust for any of its purposes, and
      property and to invest and reinvest any principal, and deal with and
      expand the income and principal of the said Center in such manner as
      will best promote its objectives;
   3. To collect, receive and maintain a fund or funds, by
      subscription or otherwise, and to apply the income and principal thereof
      to the promotion of its aims and purposes herein before set out; and

   4. To contract any obligation, or enter into any agreement
      necessary or incidental to the proper management of its corporate
      powers.

In general, to carry on any activity and to have and exercise
all of the powers of government-owned or -controlled corporations; and
to do any and all of the acts and things herein set forth to the same
extent as juridical persons could do, and in any person, entity,
partnership, association or corporation, domestic or foreign.

6. All funds currently appropriated to the present Asian Center
   shall be incorporated into the budget of the PCAS. In addition, the
   University of the Philippines is hereby directed to appropriate From the
   University budget one and one-half million pesos (P1,500,000) each
   fiscal year beginning June 1974, to finance the Center’s recurring
   operational expenditures.
7. A PCAS endowment fund shall be created for the purpose of
   providing for nonrecurring expenditures of the Center. There is hereby
   appropriated the amount of P20M out of any unappropriated funds in the
   National Treasury and an additional P5M from the same source for the
   initial requirements of the Center.

   The endowment fund shall be administered as a trust with the
   Board of Trustees of the Center as Trustees thereof: Provided,
   That the principal of said endowment shall not be subject to impairment:
   And provided, furthermore, That only the earnings thereof
   shall be available for expenditure.
   

8. Expenditures and disbursements made by the PCAS in the
   conduct of its affairs shall not be subject to the procurement
   requirement and restrictions imposed by existing law upon government
   agencies, Instrumentalities and government-owned or-controlled
   corporations.
9. Any provision of law to the contrary notwithstanding,
   appointments to the teaching, research and administrative staff of the
   PCAS may be on a part-time basis, and shall be exempt from the
   requirement and restrictions of the Civil Service Law, laws, rules and
   regulations on position classification and salary standardization and
   Section Two Hundred Fifty-nine of the Revised Administrative Code: Provided,
   That any government retiree employed in the PCAS shall not be required
   to reimburse or refund any gratuity received from the Government nor
   shall any pension or annuity to which he is entitled be suspended or
   reduced on account of his employment in the PCAS.
10. Any or all savings of the PCAS shall constitute a revolving
    fund and shall not be reverted to the General Fund.
11. The PCAS may, for the purpose of teaching, research, field
    work, and other activities, obtain the services of scholars and
    technical personnel of any agency of the Philippine Government including
    other units of the University of the Philippines to provide
    instruction, perform research or field work and other activities as may
    be needed. Such personnel may be given honorarium by the PCAS, any law
    to the contrary notwithstanding.

Done in the City of Manila, this 22nd day of November, in the year of
Our Lord, nineteen hundred and seventy-three.