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WHEREAS, the tasks of maintaining peace and order and of making the Government responsive to the needs and the best interest and welfare of the people demand the cooperation of every inhabitant;

WHEREAS, the successful accomplishment of these task urgently require additional funds for carrying out the purposes hereinafter stated; and

WHEREAS, responsible elements of the nation have manifested their spirit of adherence and cooperation in this respect and have signified their desire to contribute in the campaign to raise such funds;

NOW, THEREFORE, I, Ramon Magsaysay, President of the Philippines, by virtue of the powers vested in me by law, do hereby create the Peace and Amelioration Fund Commission which shall be charged with the responsibility of raising funds from voluntary contributions to carry out the purposes of this Order.

Said funds shall be (1) for the purchase of loose firearms and such other arms and equipment as can be used to resist the violent elements in accordance with the provisions of Republic Acts Nos. 486 and 482; (2) for the compensation of additional members of the Armed Forces to be employed in the peace campaign; (3) for indemnity to the heirs of those who may die or receive injuries in line of duty; (4) for other relief and assistance to civilians who may be engaged in the peace campaign; (5) for aid in the protection of the civilian population in case of emergency; (6) for payment of cash rewards to civilians for the surrender, capture or killing or for information leading to the capture or killing of leaders of the dissidents and subversive organizations or for such other assistance rendered directly in connection with the current peace and order campaign and for intelligence, counter-intelligence and psychological warfare expenses of the Department of National Defense; and (7) for payment of expenses in connection with investigation of complaints filed with the Office of the President against the manner the various executive departments, bureaus, offices, agencies, instrumentalities, and government-owned or controlled corporations are performing the duties entrusted to them by law, or complaints against the acts, conduct or behaviour of any officer or employee thereof. The amounts collected shall be allotted by authority of the President of the Philippines, upon the recommendation of the Chairman of the Commission, the Treasurer of the Commission and the Commissioner of the Budget. All the contributions and disbursements of the Commission shall be audited by the Auditor General or his representative in accordance with law.

The Commission shall be composed of a Chairman, a vice-Chairman and Treasurer, a Member and Secretary, and not more than twelve members, all to be chosen by the President of the Philippines.

The unexpended balance of the Peace Fund and all the records, properties and equipment of the Peace Fund Campaign Commission created under Executive Order No. 345 dated September 19, 1950, which were transferred to the Department of National Defense under Executive Order No. 655 dated December 18, 1953, are hereby transferred to the Peace and Amelioration Fund Commission herein created.

The Commission is hereby authorized to create local committees to assist in the performance of its functions and to adopt such rules and regulations as it may deem necessary to carry out the purposes of this Order. It may secure the services of officers and employees of any department, bureau, agency, board, commission, office or instrumentality of the Government, whose assistance it may require in accomplishing its task.

Done in the City of Manila, this 7th day of January, the year of our Lord, nineteen hundred and fifty-four, and of the Independence of the Philippines, the eighth.

(Sgd.) RAMON MAGSAYSAY
President of the Philippines

By the President:
(Sgd.) FRED RUIZ CASTRO
Executive Secretary