CREATING A PHILIPPINE COCONUT AUTHORITY.

WHEREAS, the Coconut Industry has attained magnitudes that
necessitate a more concerted effort at integrating the diffused efforts
currently being exerted towards its development;

WHEREAS, the global perspective on international fats and
oil supply situation indicates a need for developing other industrial and food
uses of coconut through a more purposeful and integrated research activity;

WHEREAS, the present stage of the development of the coconut
and other palm oils in the country is generally characterized by relatively low
yields and quality that could be substantially improved given the necessary
support from concomitant development activities such as research extension work,
marketing and the strengthening of credit institutions;

WHEREAS, the economic well-being of a major part of the
population depends to a large extent on the viability of the industry and its
improvement in the areas of production, processing and marketing; and

WHEREAS, the industry needs an intensive, extensive and
sustained foreign trade promotion effort in order that its position in markets
abroad will be maintained and enhanced;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, pursuant to
Proclamation No. 1081, dated 21 September 1972, as amended by Proclamation No.
1104, dated 17 January 1973 and General Order No. 1, dated 22 September 1972, as
amended, in order to effect the desired and necessary changes and reforms in the
social and economic structure of our society, do hereby decree the creation of a
Philippine Coconut Authority, as follows:

SECTION 1. Declaration of Policy. — It shall be the
policy of the State to promote accelerated growth and development of the coconut
and other palm oils industry so that the benefits of such growth shall accrue to
the greatest number, and to provide continued leadership and support in the
integrated development of the industry.

SEC. 2. Purposes and Objectives. — The Authority
shall have the following purposes and objectives:

a. To promote the accelerated development of the coconut and other palm oils
industry in all its aspects;
b. To provide general directions for the steady
and orderly development of the industry;
c. To achieve vertical integration
of the coconut industry so that coconut farmers become participants in and
beneficiaries of the development and growth of the coconut
industry.

SEC. 3. Powers and Functions. — To carry out the
purposes and objectives mentioned in the preceding Section, the Authority,
through its Board as hereinafter constituted, is hereby vested with the
following powers, in addition to those transferred to it under Section 6 of this
Decree:

a. To formulate and adopt a general program of development for the coconut
and other palm oils industry;
b. To evaluate the existing policies, programs
and projects of all agencies and instrumentalities having to do with industry
development and to integrate and coordinate the various facets of such
activities into the approved general development program;
c. To recommend to
the President of the Philippines and, upon his approval, to effect the
integration of agencies charged with the prosecution of certain aspects of
industry development with the view of attaining efficiency and effectiveness in
implementation of the general program;
d. To supervise, coordinate and
evaluate the activities of all agencies charged with the implementation of the
various aspects of industry development, and to allocate and/or coordinate the
release of public funds in accordance with approved development programs and
projects;
e. To regulate the marketing and export of coconut products and
by-products, as well as those of other palm oils, including the establishment of
quotas thereon, whenever the national interest so requires;
f. To receive and
administer funds provided by law; to draw, with the approval of the
President, funds from existing appropriations as may be necessary in support of
its program, and to accept donations, grants, gifts and assistance of all kinds
from international and local private foundations, associations or entities, and
to administer the same in accordance with the instructions or directions of the
donor or, in default thereof, in the manner it may in its discretion
determine;
g. To borrow the necessary funds from local and international
financing institutions, and to issue bonds and other instruments of
indebtedness, subject to existing rules and regulations of the Central Bank, for
the purpose of financing programs and projects deemed vital and necessary for
the early attainment of its goals and objectives;
h. To formulate and
recommend for adoption credit policies affecting production, marketing and
processing of coconut and other palm oils;
i. To formulate and recommend for
adoption by other agencies and instrumentalities, such programs and projects as
are necessary to accelerate industry development;
j. To enter into, make and
execute contracts of any kind as may be necessary or incidental to the
attainment of its purposes and, generally, to exercise all the powers necessary
to achieve the purposes and objectives for which it is
organized.

SEC. 4. Governing Board. — The Authority shall be
governed by a Board of eleven members, who shall meet as often as necessary,
composed of:

a. Three representatives at-large of the private sector, to be appointed by
the President, who shall have recognized competence in the many facets of the
industry and be leaders of the industry, acknowledged by both the Government and
private sector members of the coconut community;
b. The Chairman, National
Science Development Board;
c. The Undersecretary of Agriculture and Natural
Resources;
d. The Undersecretary of Trade;
e. The President, Philippine
Coconut Producers Federation;
f. The Chairman, United Coconut Associations of
the Philippines;
g. The Chairman of the Board, Coconut Investment
Company;
h. The Director, Bureau of Plant Industry; and
i. The Director,
Bureau of Agricultural Extension.

A Chairman shall be designated by the President from among the members of the
Board. The Board shall elect a Vice-Chairman who shall assume the functions of
the Chairman, whenever the latter is absent or incapacitated, and an Executive
Committee of five from among its members, to which it may delegate such of its
powers as it deems fit.

SEC. 5. Management. — The management of the
Authority shall be vested in an Administrator, to be appointed by the Board, who
shall have the following powers and duties:

a. To direct and manage the affairs and business of the Authority, in
accordance with, policies and plans enunciated by the Board.
b. To recommend
and, upon approval by the Board, to establish and maintain an organization with
specific functions and responsibilities for each operating unit;
c. To
appoint and fix the number, with the approval of the Board, of such officials
and employees of the Authority as may be necessary for the proper discharge of
its functions and responsibilities, and with the approval likewise of the Board,
to remove, suspend and otherwise discipline, for just cause, any subordinate
personnel thereof;
d. To prepare and submit thirty days after the close of
each fiscal year an annual report to the President, and such periodic reports of
activities as may be required from time to time; and
e. To perform such other
duties as may be designed to him by the Board from time to
time.

SEC. 6. Abolished Agencies and Transitory
Provisions. — The Coconut Coordinating Council (CCC), the Philippine
Coconut Administration (PHILCOA) and the Philippine Coconut Research Institute
(PHILCORIN) are hereby abolished and their powers and functions transferred to
the Philippine Coconut Authority, together with all their respective
appropriations, funding from all sources, equipment and other assets, and such
personnel as are necessary: Provided, That personnel separated from the
service hereby shall have the same rights and privileges accorded to other
government employees separated as a result of implementation of the Integrated
Reorganization Plan: Provided, further, That the Authority, through its
Board, shall effect the transfers herein provided in a manner that will
insure the least disruption of on-going programs and projects: Provided,
finally, That in the period prior to the actual assumption of duties by the
Board and its functioning as such, all officers and employees of the abolished
agencies shall continue to exercise all their functions and discharge all their
duties and responsibilities until ordered otherwise by the Board of the
Authority, except that the Board of the PHILCORIN and the PHILCOA as well as the
Council itself, shall immediately cease to exist upon the effectivity of this
Decree, and their functions shall be exercised in the interim by the Chairman of
the National Science Development Board in the case of the PHILCORIN and by the
Secretary of Agriculture and Natural Resources in the case of the PHILCOA and
the CCC, with their incumbent Director, Chairman-General Manager and Executive
Director, respectively, as executive officers.

SEC. 7. For purposes of coordinating plans and policies, in
accordance with Part II, Chapter IV, Article III, Par. 2 of the Integrated
Reorganization Plan, the Authority shall be attached to the Department of
Agriculture and Natural Resources.

SEC. 8. Repealing Clause.— All laws, executive and
administrative orders, rules and regulations inconsistent with the foregoing
provisions are hereby repealed or amended accordingly.

SEC. 9. Separability Clause. — If any provision of
this Decree is held unconstitutional, the same shall apply only to the provision
and the remainder hereof remains valid.

SEC. 10. Effectivity. — This Act shall take effect
immediately.

Done in the City of Manila, this 30th day of June, in the year of Our Lord,
nineteen hundred and seventy-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ROBERTO V. REYES
		Assistant Executive Secretary