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common currency, common economic policies
The proposed
clause would deprive the Puerto Rican Treasury States of Treasury a good
This its revenue; for, in the words of the United taxes on
bill would take a step backward from a common market and
of is dependent on excise
economic union
[for it would allov
different external
even recently imposed a 5% emergency
tariffs.'
excise tax on to additional revenues.
Second, one can object to the matter of allowing Puerto Rico
to establish its own tariffs for two very important reasons:
Subsection tariffs, a continues, or taxes of "nor any shall kind the on articles United imported States the
impose into
a. The Compact states that Puerto Rico "may levy, increase,
restrictions, United States from Puerto Rico. This prohibits (which
United
reduce, or eliminate tariffs and quotas on articles im-
the from levying excise taxes on Puerto Rican products Puerto
ported
provided that the action assured "conformity
generate may argue that lack of the excise tax would bring if even this
States $60 million annually for the Island's treasury). in
with international obligations." Under this section, Puerto
Rico would have the ability to lower its duties and tariffs
Ricans revenue due to greater sales on the mainland. Yet, example,
imposed on foreign imports into the Island. The result
more it would hardly be fair to the Virgin Islands, for
would be lower prices on foreign goods for Puerto Rican
were whose so, economy is also dependent on the export of similar
consumers and may price mainland firms out of the
products.
market. (For example, were Puerto Rico to lower the tariff
Section 14
on rice, the Island could import rice from Thailand,
Burma, and China; and since its price would be lower than
I am of the opinion that if the Commission were composed of
rice coming from California, Arkansas, Louisiana, and
three members representing the mainland and three members
Texas, it could result in losses for American mainland
representing only Puerto Rico, it would be extremely small and unable have
companies.)
deal effectively with the many areas of responsibility we
b. Section 9, subsection e further provides that Puerto Rico
could eliminate duties on products coming into the Island,
to assigned to it. I am concerned that such a Commission would not
adequately represent the many varying interests (economic, Rican
then add 35% value to those products, and export them
duty-free to the United States. (For example: an entre-
political, social, cultural and security) regarding Puerto
issues. If the Commission is to have authority and respect, it must
preneur could set up a textile processing plant in Puerto
Rico, which the Puerto Rican Government would encour-
be representative.
Further, I am only too well aware, as a result of working with and
age in order to improve the Island's economy. Subse-
the Ad Hoc delegation, of the difficulty we had in obtaining
quently, raw, unfinished textiles from abroad could be
imported duty-free. Next, the merchandise would be
maintaining a quorum, since our Advisory Group had such a small be
number of members. Although I realize the Commission would
processed, adding at least 35% value to the finished
a permanent organization, I would still suggest a change.
product. As a consequence, clothing could be shipped to
Therefore, I recommend a Commission composed of 14
the United States, again duty-free, permitting sale of the
members; seven appointed by the President of the United States;
finished product in the fifty states at a much cheaper rate
and seven appointed by the Governor of Puerto Rico. The repre-
than that produced on the mainland.)
sentation on this Commission as selected by the President and
Third, Puerto Rico, for its own sake, may be wise to recon-
the Governor, respectively, should assure a balance between the
sider subsection a of section 9. The wording prohibits Puerto
major political parties.
Rico from imposing "restrictions, tariffs, or taxes of any kind on
articles imported into Puerto Rico from the United States
63
62
Document source description
This file contains a published report of the Ad hoc Advisory Group on Puerto Rico.
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"ocrText": "common currency, common economic policies\nThe proposed\nclause would deprive the Puerto Rican Treasury States of Treasury a good\nThis its revenue; for, in the words of the United taxes on\nbill would take a step backward from a common market and\nof is dependent on excise\neconomic union\n[for it would allov\ndifferent external\neven recently imposed a 5% emergency\ntariffs.'\nexcise tax on to additional revenues.\nSecond, one can object to the matter of allowing Puerto Rico\nto establish its own tariffs for two very important reasons:\nSubsection tariffs, a continues, or taxes of \"nor any shall kind the on articles United imported States the\nimpose into\na. The Compact states that Puerto Rico \"may levy, increase,\nrestrictions, United States from Puerto Rico. This prohibits (which\nUnited\nreduce, or eliminate tariffs and quotas on articles im-\nthe from levying excise taxes on Puerto Rican products Puerto\nported\nprovided that the action assured \"conformity\ngenerate may argue that lack of the excise tax would bring if even this\nStates $60 million annually for the Island's treasury). in\nwith international obligations.\" Under this section, Puerto\nRico would have the ability to lower its duties and tariffs\nRicans revenue due to greater sales on the mainland. Yet, example,\nimposed on foreign imports into the Island. The result\nmore it would hardly be fair to the Virgin Islands, for\nwould be lower prices on foreign goods for Puerto Rican\nwere whose so, economy is also dependent on the export of similar\nconsumers and may price mainland firms out of the\nproducts.\nmarket. (For example, were Puerto Rico to lower the tariff\nSection 14\non rice, the Island could import rice from Thailand,\nBurma, and China; and since its price would be lower than\nI am of the opinion that if the Commission were composed of\nrice coming from California, Arkansas, Louisiana, and\nthree members representing the mainland and three members\nTexas, it could result in losses for American mainland\nrepresenting only Puerto Rico, it would be extremely small and unable have\ncompanies.)\ndeal effectively with the many areas of responsibility we\nb. Section 9, subsection e further provides that Puerto Rico\ncould eliminate duties on products coming into the Island,\nto assigned to it. I am concerned that such a Commission would not\nadequately represent the many varying interests (economic, Rican\nthen add 35% value to those products, and export them\nduty-free to the United States. (For example: an entre-\npolitical, social, cultural and security) regarding Puerto\nissues. If the Commission is to have authority and respect, it must\npreneur could set up a textile processing plant in Puerto\nRico, which the Puerto Rican Government would encour-\nbe representative.\nFurther, I am only too well aware, as a result of working with and\nage in order to improve the Island's economy. Subse-\nthe Ad Hoc delegation, of the difficulty we had in obtaining\nquently, raw, unfinished textiles from abroad could be\nimported duty-free. Next, the merchandise would be\nmaintaining a quorum, since our Advisory Group had such a small be\nnumber of members. Although I realize the Commission would\nprocessed, adding at least 35% value to the finished\na permanent organization, I would still suggest a change.\nproduct. As a consequence, clothing could be shipped to\nTherefore, I recommend a Commission composed of 14\nthe United States, again duty-free, permitting sale of the\nmembers; seven appointed by the President of the United States;\nfinished product in the fifty states at a much cheaper rate\nand seven appointed by the Governor of Puerto Rico. The repre-\nthan that produced on the mainland.)\nsentation on this Commission as selected by the President and\nThird, Puerto Rico, for its own sake, may be wise to recon-\nthe Governor, respectively, should assure a balance between the\nsider subsection a of section 9. The wording prohibits Puerto\nmajor political parties.\nRico from imposing \"restrictions, tariffs, or taxes of any kind on\narticles imported into Puerto Rico from the United States\n63\n62"
}