Legal and Historical Basis for Sovereignty
- The decree recognizes that much of the area is part of the continental margin of the Philippine archipelago.
- The territory is deemed to belong to the Philippines by reason of history, indispensable need, and effective occupation and control in accordance with international law.
- It is asserted that claims made by other states have lapsed due to abandonment and thus cannot prevail over the Philippine claim.
Government and Administrative Structure
- The area within the defined boundaries is constituted as a distinct and separate municipality under the Province of Palawan.
- This municipality is named "Kalayaan."
Transitional Governance and Administration
- Pending the election of regular officials and during the period of emergency declared under Proclamation No. 1081, the administration and government of Kalayaan shall be vested in the Secretary of National Defense.
- Alternatively, the President may designate officers from the Civil government or the Armed Forces of the Philippines to administer the area.
- This arrangement is temporary until otherwise provided by law.
Effectivity of the Decree
- The decree took effect immediately upon issuance.
- It was signed by the President of the Philippines and his Presidential Executive Assistant in Manila on June 11, 1978.