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{
    "localId": "1554456",
    "label": "Puerto Rico - Compact of Permanent Union, November 7, 1975",
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{
    "id": "1554456",
    "sourceUrl": "https://catalog.archives.gov/id/1554456",
    "contentType": "document",
    "title": "Puerto Rico - Compact of Permanent Union, November 7, 1975",
    "citationUrl": "https://catalog.archives.gov/id/1554456",
    "collections": [
        "White House Special Files Unit Files",
        "Issue Decision Papers for the President"
    ],
    "subjects": [
        "Puerto Rico",
        "Intergovernmental relations",
        "Territories and possessions"
    ],
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        "day": 14,
        "logicalDate": "1976-01-14",
        "month": 1,
        "year": 1976
    },
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{
    "seq": 31,
    "pageIndex": 0,
    "type": "photo",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_32_Image_0001.jpg",
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    "ocrText": "- 2 -\nbetween Puerto Rico and the United States. The Department believes\nthe language in this section should be more specific in this regard.\nWe assume that such coastwise laws may continue to apply to Puerto\nRican waters provided that the conditions specified under the\nprovisions of section 3(b), are complied with, although this is far\nfrom clear. There is also some question of the applicability of other\nnavigation laws such as those relating to entry and clearance of\nvessels (see 19 U.S.C. 1434 and 1435 and 46 U.S.C. 91) and to the\nfisheries (46 U.S.C. 251 and 16 U.S.C. 1081-1094). Another question\nrelates to the applicability of laws relating to aircraft, such as the\nreport of arrival requirement, air cabotage prohibitions, etc.\nThe above-stated questions are raised in spite of and particularly\nin light of section 12(a), which states that \"The laws of the United\nStates applicable to the Free Associated State on the date of approval\nof this Compact shall continue in effect except to the extent repealed\nor modified by this Compact or incompatible with it, and except as\nhereafter modified, suspended or repealed in accordance with law.\nIt appears that section 2(a), is, in fact, incompatible with said section\n12(a), and that clarification is especially warranted in view thereof.\nExamples of how the draft bill might be revised to specify applicable\nstatutes are 19 U.S.C. 81e and 43 U.S.C. 1333(c to (g).\nSection 2(d) would authorize Puerto Rico to participate in inter-\nnational organizations and to enter into international agreements with\nother countries with respect to, inter alia, financial and commercial\nrelations consistent with the functions of the United States, as\ndetermined by the President of the United States and the Governor of\nPuerto Rico on a case by case basis. This provision would authorize\nPuerto Rico to join organizations, such as the GATT, the IMF, and the\nIBRD and to enter into financial and commercial agreements with other\ncountries. Puerto Rico's exercise of this authority could conflict\nwith United States international economic and foreign policy. The draft\nCompact of Free Association which the United States has negotiated with\nthe Trust Territory of the Pacific Islands (Micronesia) provides for\nthe United States to have full responsibility for and authority over\nthe foreign affairs of Micronesia while enabling Micronesia to become\na member of certain international organizations of which the U.S. is\na member, to enter into agreements with certain international organiza-\ntions of which the U.S. is a member, and to request the U.S. to negotiate\ncertain types of bilateral agreements which would apply to Micronesia.\nThe preferable, most consistent course of action may be to make section\n2(d) less broad by revising it along the lines of similar provisions in\nthe draft Micronesian Compact.\nSection 2(d) should also be modified to provide specifically that\nPuerto Rico may not enter into income tax agreements with other countriés\ncovering matters generally handled by conventions for the avoidance of\ndouble taxation."
}