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TO:	The Chairman, Presidential Commission on Reorganization The Commissioner of the Budget The Chairman, Civil Service Commission All Heads of Departments and Agencies Concerned

1. The full implementation of the reorganization in accordance with the Integrated Reorganization Plan (IRP) which was enacted into law under Presidential Decree No. 1, including changes thereto as embodied in subsequent decrees and other executive issuances, is hereby directed.
2. Accordingly, except as hereinbelow indicated, full implementation of the remaining provisions of the plan, as amended, which are not yet implemented, is directed to be effected for the agencies and Parts included therein.
3. The implementation of the activation of newly created agencies whose heads need Presidential appointment shall be contingent upon the prior issuance of appointments by the President to such heads.
4. Implementation of the following provisions of the IRP is hereby suspended:
   
   

   (1)	Creation of the Career Revenue Service (Article III, Part IV)
   (2)	Creation of the Budget-Treasury Data Processing Center (Article III, Chapter I Part V)
   (3)	Management Constancy Group (Article II, Chapter II, Part III)
   (4)	Unimplemented portions, Department of Foreign Affairs (Part XVIII)
   (5)	Administrative Regulation Filing Office(Part XXII)

   
   
5. Further amendments to the IRP as per "Annex A," attached, are hereby directed to be implemented.
6. In the implementation of the reorganization, the appointment cf personnel to positions in the new staffing patterns of the reorganized agencies shall be in accordance with the applicable provisions of Memorandum Circular No. 650 dated July 21, 1973.
7. The Department Secretary concerned may recommend for Presidential approval deferment or phased implementation of the reorganization of the agencies under his department; likewise, he may submit proposed modifications for approval before implementation is made.  In this connection, changes in the structures of agencies which involve units below the bureau level may be done through the national budget in consultation only whenever necessary with tho Presidential Commission on Reorganization.
8. The administrative actions needed to be taken for the full implementation of the reorganization, including appointments to positions in the staffing patterns as reorganized, shall be effected not later than December 31, 1976.

Done in the City of Manila, this 18th day of August, in the year of Our Lord, nineteen hundred and seventy-six.

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

1.  PART II—DEPARTMENTAL ORGANIZATION
   
   
   1. A new paragraph, as Paragraph 3, is added to Article I, Chapter II of this Part to read as follows:
      
      "3. When the Director is unable to perform his duties owing to illness, absence, or other cause, or in case of vacancy in the office, the Assistant Director shall temporarily perform the functions of said office.  Where there are two or more Assistant Directors, the Secretary shall designate any one of them to act temporarily as Director.
   
   
2. PART III—CIVIL SERVICE
   
   
   1. Paragraph 3-a, Article VII, Chapter II of this Part is amended to read as follows;
      
      "3-a. Public and private colleges and universisities and similar institutions shall be encouraged to organize and carry out continuing program of executive development.
      
      
   2. Paragraph 1-a, Article II, Chapter III of this Part is amended to read its follows:
      
      "1-a. Recruitment and examination for positions in the second level as defined in Paragraph 1-b, Article III, Chapter II of this Part in department-wide regional offices and in the Department proper.  For positions existing in two or more departments or agencies, inter-departmental agreements shall be worked out, subject to supervision and coordination by the Civil Service Commission."
      
      
   3. Paragraph 1-c, Article II, Chapter III of this Part is amended to read as follows:
      
      "1-c. Appointment, promotion, transfer and reinstatement of personnel of department-wide regional offices to positions in the second level as defined in Paragraph 1-b, Article III, Chapter II of this Part, and of personnel of the Department proper, except the undersecretary, assistant secretary and chiefs of department services who shall be governed by the provisions of Paragraph 5, Article IV, Chapter I of this Part, subject to appeal under the conditions specified in Section 19-(6), Article VIII of Presidential Decree No. 807."
      
      
   4. Paragraph 1-a, Article III, Chapter III of this Part is amended to read as follows:
      
      "1-a. Recruitment and examination for positions in the second level as defined in Paragraph 1-b, Article,III, Chapter II of this Part in the bureau and its regional offices.  For positions existing in two or more bureaus,  inter-bureau agreements shall be worked out under the coordination of the proper Department Head (s) and subject to supervision by the Civil Service Commission."
      
      
   5. Paragraph 1-c, Article III, Chapter III of this Tart is amended to read as follows:
      
      "1-c. Appointment, promotion, transfer and reinstatement of personnel of the bureau, to include, in the case of a line bureau, personnel of its regional offices, if any, who are to be appointed to positions  in the second level as defined to Paragraph 1-b, Article III, Chapter II of this Part, except the assistant head of the bureau and other members of the Career Executive Service who shall be governed by the provision Paragraph 5, Article IV, Chapter I, of this Part, subject to appeal appeal under the conditions specified in Section 19-(6), Article VIII of Presidential Decree No. 807."
      
      
   6. Paragraphs 1-a and 1-b, Article IV, Chapter III of this Part are deleted, and Paragraph 1-c thereof, which is renumbered as Paragraph 1-a, is amended to read as follows:
      
      "1-a. Appointment, promotion, transfer and reinstatement of employees of the regional office to positions in the first level as defined in Paragraph 1-a, Article III, Chapter II of this Part, subject to appeal under the conditions specified in Section 19-(6), Article VIII of Presidential Decree No. 807."
      
   
   
3. PART XXIII—GENERAL PROVISIONS
   
   
   1. A new paragraph, as Paragraph 15, is added to Article I, Chapter I of this Part to read as follows:
      
      "15. As a transitional measure, department secretaries shall initially appoint personnel to all positions at the first and second levels, except those requiring Presidential appointment, provided in approved staffing patterns notwithstanding the pertinent provisions of Chapter III of Part III: Provided, however, That subsequent appointments shall be in accordance with the applicable provisions of the said Part."