ive nature is to be transferred from the Military Governor of
the islands to this Commission, to be thereafter exercised by them in
the place and stead of the Military Governor, under such rules and
regulations as you shall prescribe, until the establishment of the civil
central government for the islands contemplated in the last foregoing
paragraph, or until Congress shall otherwise provide. Exercise of this
legislative authority will include the making of rules and orders,
having the effect of law, for the raising of revenue by taxes, customs
duties, and imposts; the appropriation and expenditure of public funds
of the islands; the establishment of an educational system throughout
the islands; the establishment of a system to secure an efficient civil
service; the organization and establishment of courts; the organization
and establishment of municipal and departmental governments, and all
other matters of a civil nature for which the Military Governor is now
competent to provide by rules or orders of a legislative character.

The Commission will also have power during the same period to appoint to
office such officers under the judicial, educational, and civil-service
systems and in the municipal and departmental governments as shall be
provided for. Until the complete transfer of control the Military
Governor will remain the chief executive head of the government of the
islands, and will exercise the executive authority now possessed by him
and not herein expressly assigned to the Commission, subject, however,
to the rules and orders enacted by the Commission in the exercise of the
legislative powers conferred upon them. In the meantime the municipal
and departmental governments will continue to report to the Military
Governor and be subject to his administrative supervision and control,
under your direction, but that supervision and control will be confined
within the narrowest limits consistent with the requirement that the
powers of government in the municipalities and departments shall be
honestly and effectively exercised and that law and order and individual
freedom shall be maintained.

All legislative rules and orders, establishments of government, and
appointments to office by the Commission will take effect immediately,
or at such times as they shall designate, subject to your approval
and action upon the coming in of the Commission's repor