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Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Declaration of Policy.—The Government hereby declares it its policy to achieve within a reasonable time self-sufficiency in small arms, mortars, and other weapons, ammunition for these weapons, and other monitions for the use of the military establishments.

SEC. 2. Designation of Agency; Creation of the Office of the Undersecretary of Defense for Munitions.—

1. In addition to the functions and duties vested in him by existing laws, the Secretary of National Defense will exercise supervision and control over the government arsenal and is hereby authorized to establish, operate and maintain such an arsenal, as well as accessory plants for the continued and efficient operation of this arsenal, for the design, research, development of production technique, manufacture and repair of small arms, mortars and other weapons, ammunition for these weapons, and other munitions.
   
2. There is created in the Department of National Defense an Office of the Undersecretary of Defense for Munitions. The Undersecretary of Defense for Munitions will be charged with the responsibility of making continuous study of and to advise the Secretary of National Defense on all matters pertaining to the design, development, manufacture, procurement, stockpiling, and allocation of small arms, mortars and other weapons, ammunition for these weapons, and other munitions; to recommend policies, rules and regulations to the Secretary of National Defense for the efficient operation, maintenance and security of the government arsenal; and to devise ways and means for the efficient mobilization of civilian industry to augment the production of the government arsenal in an emergency.
   
   The Undersecretary of Defense for Munitions shall appointed by the President of the Philippines with the consent of the Commission on Appointments and receive an annual compensation of nine thousand pesos.
   
   
3. Subject to the approval of the Secretary of Natural Defense, the Office of the Undersecretary of Defense for Munitions will have such number of military and civilian personnel as the Undersecretary of Defense for Munitions may deem necessary by detail, whenever possible, from the Armed Forces of the Philippines.
   
4. No person shall be appointed Undersecretary of Defense for Munitions unless he be a natural born citizen of the Philippines, a person with technical education and with at least five (5) years experience in MUNITION.

SEC. 3. The small arms ammunition plant and all other plants to be established should be located and constructed at such places suitable and consistent with the safety of communities adjacent to such plants and with the requirements of security and the principles of modern warfare.

SEC. 4. Appropriations.—For the purposes provided for in this Act, there is hereby authorized to be appropriated and made available from funds in the National Treasury not otherwise appropriated the sum of five million six hundred forty-five thousand one hundred ninety-three pesos (P5,645,193.00) to implement initially the provisions of this Act for a period of THREE fiscal years: Provided, however, That of the said amount of five million six hundred forty-five thousand one hundred ninety-three pesos (P5,645,l93.00) not more than two hundred thousand pesos (P200,000.00) shall be spent for overhead expenses, nor more than three million three hundred fifty-seven thousand pesos (P3,357,000.00) for fixed assets nor more than two million eighty-seven thousand seven hundred forty-five pesos (2,087,745.00) for working capital.

SEC. 5. This Act shall take effect upon its approval.

Approved, June 22, 1957.