Diliman, Quezon City
        The Minister of Human Settlements
        Metro Manila
        The Director of Lands
        Manila
        The Municipal Mayor
        Kapalong, Davao del Sur

I.    The Minister of Natural Resources is hereby directed:

a)    To set aside the whole area of 344,800 square meters, more or less, of public lands situated in the Poblacion of Kapalong, Province of Davao as townsite of the Municipality of Kapalong, Province of Davao, and for other public purposes;

b)    To promulgate such rules and regulations as may be necessary to carry out effectively the subdivision and disposition of the property.

a)    To cause the subdivision survey of the aforesaid area in accordance with the Land Use Plan of the Municipality of Kapalong to be prepared in coordination with and the assistance of other Government agencies concerned;

b)    To dispose of the residential lots under the provisions of R.A. No. 730, whenever applicable, and commercial and industrial lots in accordance with the provisions of Chapter IX of the Public Land Act in the following manner:

c)    To sell one lot to each of the actual occupants; and Actual occupants whose occupancies are or have to be converted into roads, plazas or set aside in favor of any government agency or to be disposed of in favor of any government agency or to any other persons or entity, shall be reimbursed by the aforesaid government agency, entity or persons who will own or make use of the said portions, of the value of the occupants respective improvements on the land in accordance with the appraisal to be made by the provincial assessor or the value declared by the actual occupants, whichever is lower.

a)    To develop the area phase by phase or in its entity as its funds and resources may warrant within the shortest period possible but not beyond the year 2,000.

1.    Proceeds of sale.

All proceeds realized or to be realized from the sale of disposition of the subdivided lots shall accrue to the general fund of the Municipality of Kapalong to be used solely for the development, maintenance and improvement or beautification of the Townsite.

2.    Disposition of lands actually occupied.

Actual occupants of areas that are not or have not yet in the meantime been developed as part of the townsite or disposed of may continue occupying the same and enjoying their improvements thereon, subject to the supervision and control of the Bureau of Lands, in coordination with the Sangguniang Bayan of Kapalong.

3.    Creation of a Committee.

The Director of Lands or his duly authorized representative, the Municipal Mayor of Kapalong or his duly authorized representative, the Minister of Human Settlements or her duly authorized representative, and two representatives of the actual occupants of the area to be appointed by the Mayor are hereby constituted as a Committee, with the Municipal Mayor of Kapalong or his duly authorized representative, as Chairman, to coordinate with other government agencies in the implementation of this Letter of Instructions.

Since 19.07.98.