Section 1. The area within the following boundaries:
From a point on the Philippine Treaty Limits at latitude 7º40' North and longitude 116º00' East of Greenwich, thence due West along the parallel of 7º40' N to its intersection with the meridian of longitude 112º10' E, thence due north along the meridian of 112º10' E to its intersection with the parallel of 9º00' N, thence northeastward to the intersection of parallel of 12º00' N with the meridian of longitude 114º30' E, thence, due East along the parallel of 12º00' N to its intersection with the meridian of 118º00' E, thence, due South along the meridian of longitude 118º00' E to its intersection with the parallel of 10º00' N, thence Southwestwards to the point of beginning at 7º40' N, latitude and 116º00' E longitude;
including the sea-bed, sub-soil, continental margin and air space shall belong and be subject to the sovereignty of the Philippines. Such area is hereby constituted as a distinct and separate municipality of the Province of Palawan and shall be known as "Kalayaan."