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470766438
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July 1, 1989-July 15, 1989 [1]
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470766438
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document
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July 1, 1989-July 15, 1989 [1]
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CF00302-001
collections
Records of the National Security Council (George H. W. Bush Administration)
Latin American Directorate Chronological Files
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1989
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Originally Processed With FOIA(s):
FOIA Number:
2015-0017-S
2015-0017-S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin: National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
OA/ID Number:
CF00302
Folder ID Number:
CF00302-001
Folder Title:
July 1, 1989-July 15, 1989 [1]
Stack:
Row:
Section:
Shelf:
Position:
V
8
5
6
2
Withdrawal/Redaction Sheet
(George Bush Library)
Doc. No. / Type
Subject/Title
Date
Restriction
Classification
01.
Memorandum
To: Brent Scowcroft From: David Pacelli
7/14/89
(b)(1)
&
Re: Cuba (1 pp.)
02a. Memorandum To: Robert Gates From: David Pacelli
7/14/89
(b)(i)
&
Re: Request (1 pp.)
02b. Memorandum To: Andy Card From: Robert Gates
n.d.
(b)(1)
/
Re: Interest (1 pp.)
03a. Memorandum To: Robert Gates From: David Pacelli
7/14/89
(b)(1)
&
Re: Presidential Statement (1 pp.)
03b. Statement
Nicaragua: Proposed Presidential Statement [handwritten
3/4
(b)(i)
&
annotations] (2 pp.)
04a. Memorandum To: President Bush From: Brent Scowcroft
n.d.
(b)(6)
Re: Your Interest in the Health of Sixto Duran-Ballen's Daughter
(1 pp.)
04b. Letter
To: President Bush From: Sixto Duran-Ballen
6/7/89
(b)(6)
Re: Health of daughter (1 pp.)
05. Memorandum From: David Pacelli
7/13/89
(b)(1)
&
Re: Phone Call (1 pp.)
Page 1 of 2
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Pinksheet Number:
MB8078
OA/ID Number:
CF00302-001
Date Closed:
11/18/2014
FOIA/Sys Case #:
2015-0017-S
Re-review Case #:
P-2/P-5 Review Case #:
Withdrawal/Redaction Sheet
(George Bush Library)
Doc. No. / Type
Subject/Title
Date
Restriction
Classification
06a. Memorandum To: Robert Gates From: David Pacelli
7/13/89
(b)(1)
S
Re: Request for Report (1 pp.)
06b. Memorandum To: Stapleton Roy From: Philip Hughes
n.d.
(b)(1)
S
Re: Request for Report (1 pp.)
07. Report
Trip Report - El Salvador, February 13-16, 1989 (50 pp.)
2/89
(b)(1)
08. Cable
171437z Mar 89 (12 pp.)
3/17/89
(b)(1)
C
09. Memorandum To: William Sittann From: David Pacelli
7/13/89
(b)(1)
/
Re: Pan AM Games (1 pp.)
Page 2 of 2
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Pinksheet Number:
MB8078
OA/ID Number:
CF00302-001
Date Closed:
11/18/2014
FOIA/Sys Case #:
2015-0017-S
Re-review Case #:
P-2/P-5 Review Case #:
CONFIDENTIAL
CONFIDENTIAL
4112
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
July 14, 1989
ACTION
CHRON FILE
MEMORANDUM FOR BRENT SCOWCROFT
THROUGH:
EVERETT ELLIS BRIGGS DAS for
FROM:
DAVID A. PACELLI
DAP
SUBJECT:
Note from Dr. Harry Goldsmith Concerning a Medical
Dialogue with Cuba
Dr. Harry Goldsmith of Boston University wrote you (apparently in
May, but date is unclear) following up a conversation concerning
his contacts with the Cuban medical establishment on his research
into the procedure of omental transposition (Tab II). Dr.
Goldsmith said that he would be happy to give you further
information if there is interest in beginning a medical dialogue
between the United States and Cuba.
You have also written a note to Andy Card in which you say, "We
were looking at this as medical diplomacy VS. 'gunboat'
diplomacy! I wouldn't do this without your imprimatur."
Although we are unclear as to the circumstances concerning this
exchange, you may want to let Dr. Goldsmith know that current
policy discourages a medical dialogue with Cuba. Cuba has indeed
built up its medical establishment, but Havana uses it in the
service of various foreign policy interests which we oppose--such
as support for the Sandinistas. As you know, medical sales are
not ordinarily exempted from the embargo (unless equipment cannot
be obtained anywhere else).
It is true that we do have exchanges with the Cubans through the
Pan American Health Organization, of which we are both members.
Cuban doctors visit the United States, and American doctors like
Dr. Goldsmith have little difficulty visiting Cuba if they travel
on a fully hosted basis to honor our embargo restrictions.
Although a reply to Dr. Goldsmith may not be necessary, we have
prepared one for your possible use.
RECOMMENDATION:
That you approve the draft reply at Tab I.
Approve
Disapprove
Attachments
Tab I
Scowcroft to Goldsmith Letter
Tab II
Incoming Correspondence
DECLASSIFIED
PER NSC WAIVER #2021-02
CONFIDENTIAL
Declassify on: OADR
By MC NARA, Date 7/16/21
CONFIDENTIAL
THE WHITE HOUSE
WASHINGTON
Dear Harry:
I have circulated your note on omental
transposition and cooperation with Cuba to
my staff and to the State Department. I
am afraid that any official U.S.
Government program of promoting medical
contacts such as yours--however
worthy--awaits a more general improvement
in our relations with Castro.
As you know, we cooperate with Cuba on a
multilateral basis through our mutual
participation in the Pan American Health
Organization. Cuban physicians are free
to come to the United States, and our
medical personnel have little difficulty
in traveling to Cuban on a fully hosted
basis. Your own experience confirms that.
I was pleased that the Cubans recognized
you for your work and I am sure that our
own countrymen hold you in no less esteem.
With best wishes for your work,
Sincerely,
Harry S. Goldsmith, M.D.
Professor of Surgery
University Hospital at
Boston University Medical Center
75 East Newton Street
Boston, MA 02118
4112
THE WHITE HOUSE
WASHINGTON
Date:
May 15, 1989
FOR:
Bill Roper
NSC
FROM:
ANDY CARD
Action
Your Comment
Let's Talk
FYI
THE WHITE HOUSE
WASHINGTON
Andy -
Soldsmith is a Gol.
of Surgery at B.u. +
has the Righest credentials.
We were looking at
this as medical diplomacy
us. "amboat dislowery.
!
4 wouldn to dd this with
him intents your imprimatur.
University Hospital
at Boston University Medical Center
THE
5 East Newton Street
Boston. Massachusetts 02118
MIR U.S.
617 247.
Dear But
to you today. It seems
everyone gets older except us.
an your new position & how In
sure you will do a wonderful pt - and
its going to L uterating.
Enclosed find some unformation an could the overture. do
together progest with & hope you fund The materal of
a Cuba is something we and
Did to in tond -
$ 10
Han
I
BONTON
UNIVERSITY
MIDICAl
CINTIN
The
University
Hospital
During the past twenty-five years, I have shown that the omentum, a
structure located in the abdomen, can be surgically lengthened and
brought to practically any place in the body. Biochemical substances in
the omentum, such as angiogenic, neurotransmitter and nerve growth
factors, make omental placement especially attractive when placed on the
brain or spinal cord because many neurological disabilities are related
to decreased blood flow, neurochemical and regeneration capabilities.
Omental transposition has stimulated a great deal of basic research
in our laboratory and for the past ten years there has been increasing
interest in using the omentum for clinical conditions. Many countries
throughout the world have adopted our surgical techniques and have begun
reporting clinical success in such neurologic conditions as stroke,
spinal cord injuries, post-encephalitis and brain trauma. The ability of
a stroke patient to regain his speech or a paralyzed patient to walk -
years after their neurological insult has been dramatically
documented.
The Cuban government has become extremely interested in establishing
their country as a major medical center in Latin America and throughout
the world. One of the areas that they are targeting specifically is in
the field of neuroscience.
Recently, Fidel Castro has built in Havana the Latin-American Center
for Neurotransplantation and Regeneration. At this institution they are
carrying out pioneering work in clinical neuroscience. Recently, I was
personally invited by the Cuban Minister of Health to the inauguration of
the new center which is the referring center for neurotransplant
activities in South America, Spain and several medical schools in Italy.
While I was in Cuba, I was treated at a very high protocol level and had
the pleasure, during a national television address, to hear Fidel Castro
allude to my work which has become an integral part of his
neurotransplant center activities. He subsequently asked to see me at
which time we discussed the place of omental transposition in
neuroscience. I was surprised at his familiarity with the use of the
omentum in neurotransplantation.
Page Two
March 9, 1989
My position with the medical people in Havana is excellent. They
had asked if they might call me at least once a month to discuss the
progress of several clinical studies which I suggested and believe are
highly promising; i.e., new treatments for schizophrenia, Alzheimer
disease, Parkinson disease, and incipient blindness secondary to
decreasing blood flow to the eye. Fidel Castro is very interested in
these projects and has requested that I send him all of my papers on the
subjects.
It would seem that if the United States has any interest in trying
to initiate even preliminary contacts with Cuba, especially on a
non-political basis, the area of improved health care seems ideal.
Everyone should want to help the sick and the crippled - regardless of
country or political persuasion. Medicine must always come before
politics.
If there is any interest in beginning a possible medical dialogue
between the United States and Cuba, I would be happy to respond further.
Sincerely,
Harry S. Goldsmith, M.D.
Professor of Surgery
Adjunct Professor of Neurosurgery
Boston University Medical Center
HSG:h1h
CONFIDENTIAL
CONFIDENTIAL
5513
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
July 14, 1989
ACTION
MEMORANDUM FOR ROBERT M. GATES
CHRON FILE
THROUGH:
EVERETT ELLIS BRIGGS DAS for
FROM:
DAVID A. PACELLI DAP
SUBJECT:
Letter from William Timmons on ABC Broadcasting
Request for Permission to Televise the Pan
American Games in 1991
Andy Card forwarded to General Scowcroft a letter which he had
received from Bill Timmons regarding ABC Broadcasting Company's
attempt (using Trans World International as its agent) to secure
permission to broadcast the 1991 Pan American Games from Havana
(Tab A). Timmons says he is told that State and Treasury oppose
TWI's application for a license because it would transfer funds
to the Cuban Government, and thus violate our embargo.
Timmons is sympathetic to our Cuban policy but believes it could
be a "major problem" if the American public can not view the
Games, and therefore recommends that we bring the matter to the
attention of the President.
We have asked that State and Treasury pass this matter to the NSC
because of its political sensitivity, and we expect to have
memorandums from them next week. Both oppose allowing ABC to pay
Cuba for exclusive broadcasting rights (and both report that TWI
has already--perhaps illegally--cooked a $9 million deal).
We recommend that you advise Andy Card that this matter will be
considered by the NSC staff which will explore what options are
available.
RECOMMENDATION:
That you approve the memorandum to Andy Card at Tab I.
Approve
Disapprove
Attachments
Tab I
Gates to Card Memorandum
Tab A
Timmons Letter to Card
CONFIDENTIAL
DECLASSIFIED
Declassify on: OADR
PER NSC WAIVER, #2021-02
By MC NARA, Date 7/16/21
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
5513
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR ANDY CARD
FROM:
ROBERT M. GATES
SUBJECT:
Letter from Bill Timmons on ABC's Interest in
Broadcasting the 1991 Pan American Games in Havana
Bill Timmons wrote you on June 23, 1989 on behalf of ABC
Broadcasting which is seeking exclusive rights to televise the
1991 Pan American Games from Havana (Tab A). Bill realizes that
this would violate our embargo, but expresses his hope that
something can be worked out and that the President should be
informed of the issue.
You may tell Bill that the NSC staff is aware of this issue and
that it expects to receive the recommendations of the Departments
of State and Treasury in the near future. We will carefully
explore what options are available, taking into account the
American public's interest in the Games and our foreign policy
position that the embargo should continue in full force until
Havana changes its behavior.
Attachment
Tab A
Timmons Letter to Card
CONFIDENTIAL
DECLASSIFIED
Declassify on: OADR
PER NSC WAIVER, 152021-02
By MC NARA, Date: 7/16/21
-CONFIDENTIAL
staff
TIMMONS AND COMPANY, INCORPORATED
1850 K STREET, N.W. WASHINGTON, D.C. 20006 (202) 331-1760
WILLIAM E. TIMMONS
Chairman, Executive
June 23, 1989
Committee
TOM C. KOROLOGOS
President
HOWARD G. PASTER
Executive Vice President
Dear Andy:
WILLIAM H. CABLE
Vice President
I suspect the country was pretty much split
MARY A. SIDLEY
Vice President
over President Carter's refusal to allow U.S.
Olympic teams to compete in Moscow in 1980.
MICHAEL J. BATES
Vice President
It was very controversial as you recall.
There is now another smoldering issue which
could break out in a firestorm if it's not
handled properly.
The Pan American Games are scheduled to be
held in Cuba in 1991. They were last held in
Indianapolis. Our client, Capital Cities/ABC,
has an option for U.S. broadcast rights
through Trans World International.
An international body Pan American Sports
Organization - rotates the site of the Games
every four years from country to country.
Congress, by law, gave exclusive jurisdiction
to the U.S. Olympic Committee for fielding
teams to the Pan American Games.
The U.S. Olympic Committee will organize a
national team to participate in the Pan
American Games, and ABC believes the public
will be most interested in watching the sports
competitions.
As you know, there are policy restrictions on
doing business with Cuba. Treasury
Department's Office of Foreign Assets Control
is the licensing authority and takes foreign
policy recommendations from the State
Department. I'm told both Treasury and State
are opposed to the Trans World International
petition because it would require transfer of
funds to Cuba and travel there by sports
announcers, cameramen, and technicians.
Andy, this could be a major problem for the
Administration if the American public cannot
June 23, 1989
Page 2
view the Games. On the other hand, I am
personally sympathetic to U.S. policy towards
Cuba. Surely, something can be worked out.
At any rate, I believe the President should be
made aware of the issue.
Please let me know whatever guidance you can
give us.
Thanks.
Sincerely,
Bill
William E. Timmons
The Honorable Andrew H. Card, Jr.
Assistant to the President and
Deputy to the Chief of Staff
The White House
Washington, DC 20500
CONFIDENTIAL
CONFIDENTIAL
5563
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
July 14, 1989
CHRON FILE
ACTION
MEMORANDUM FOR ROBERT M. GATES
THROUGH:
EVERETT ELLIS BRIGGS DAS for
FROM:
DAVID A. PACELLI DAY
SUBJECT:
Presidential Statement for July 19, Tenth
Anniversary of the Sandinista Revolution
We recommend that the President read a short statement at the
White House press room on the 10th anniverary of the Sandinista
revolution.
The proposed statement at Tab I emphasizes that the Sandinistas
have failed to fulfill their promise to establish democracy and
are not complying with their commitments under the regional peace
agreement. It was based on a State Department draft which was
approved by the Deputy Assistant Secretary for Inter-American
Affairs.
Not available
Not widable
Concurrence by: Bill Harlow and Peter Rodman
RECOMMENDATION:
That you approve the draft remarks at Tab I.
Approve
Disapprove
Attachment
Tab I
Draft Presidential Statement
DECLASSIFIED
PER NSC WAIVER, #2021-02
CONFIDENTIAL
By MC NARA, Date 7/16/21
Declassify on: OADR
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
3/4 double spaced
NICARAGUA: PROPOSED PRESIDENTIAL STATEMENT FOR JULY 19
Ten years ago there was widespread satisfaction here
and in Latin America that the anti-Somoza effort in Nicaragua had
welenued
triumphed. The Sandinistas had promised the Organization of
Revalution
American States to establish a democracy. Sadly, this promise
scene
remains unfulfilled today.
Nicaragua's neighbors have chosen the path of
democracy, while the Sandinistas continue arbitrarily to imprison
WH
their citizens and to deny complete press freedom. The army
belongs to the Sandinista party. The Government has blocked the
opposition's marches, broken up its meetings, and taken its
leaders' property. And while the rest of Central America enjoys
economic growth, Sandinista misrule has left Nicaragua a
shambles.
The Sandinistas have repeatedly promised free, fair and
(steal election
honest elections, and said they would allow international
observation. But they have imposed conditions and put pro-
Sandinista electoral officials in charge of the process. They
have avoided good faith talks with the united opposition. They
have tried to impose heavy-handed constraints on the diplomatic
community in Managua, including explusions of U.S. diplomats,
designed to discourage international observers.
In Nicaragua, the Sandinistas promised much. So far,
they have delivered poverty and hardship to the Nicaraguan
people, hundreds of thousands of whom have fled. Recently-
discovered arms caches in El Salvador indicate that the
DECLASSIFIED
GONFIDENTIAL
Declassify on: OADR
PER NSC WAIVER, #2021-02
CONFIDENTIAL
By-Mc MC NARA, Date 116/21
CONF IDENTIAL
CONF IDENTIAL
Sandinistas continue to spread their doctrine to the rest of
Rev.
Central America. And they are now making common cause with the
actived
Noriega dictatorship in Panama.
The Bipartisan Accord with Congress offers an opportunity
for better relations between our two countries. We still want to
see democracy and national reconciliation work in Nicaragua. For
this to happen, the internal opposition and the Nicaraguan
Resistance must be active participants in the reconciliation
process. Let me emphasize that we remain willing to respond
positively if the Sandinistas fulfill their promises, made to the
OAS over ten years ago, at Esquipulas, and again last February in
El Salvador, to take genuine steps toward democracy.
Despite the somber prospects, our sincerest hope is for
free elections and democracy in Nicaragua, so that next year the
Nicaraguan people will truly have something to celebrate.
CONF IDENTIAL
CONF IDENTIAL
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
5070 re-do
July 14, 1989
MEMORANDUM FOR G. PHILIP HUGHES
TB
CHRON FILE
THROUGH:
EVERETT ELLIS BRIGGS
FROM:
WILLIAM T. PRYCE
JB
SUBJECT:
NSC Reply to Letter to John Sununu from Senator
Graham
As requested, we have incorporated the NSC portion of the follow-
up reply to Senator Graham's letter to Chief of Staff Sununu into
a letter to Senator Graham for your signature (Tab I).
RECOMMENDATION:
That you sign the letter to Senator Graham.
Attachments
Tab I
Letter to Senator Graham
Tab II
Incoming Correspondence
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
Dear Senator Graham:
Governor Sununu has asked the National Security
Council to reply directly to the portion of your
recent letter to him concerning Panama.
We share your concern with the need to keep working
on a number of fronts to help the Panamanian people
secure a democratic government. We are continuing
to make clear both publicly and privately our
position that this can not happen while Noriega
remains in power. We are concentrating on our
multilateral efforts through the OAS at this point,
but are also continuing to take unilateral steps and
considering what else we may need to do. We
appreciate your offer of assistance in building a
bipartisan White House/Congress coalition, and will
be in touch with your office regarding further
action.
Sincerely,
G. Philip Hughes
Executive Secretary
The Honorable Bob Graham
United States Senate
Washington, D.C. 20510
Received 20g
NATIONAL SECURITY COUNCIL
TIME STAMP
EXECUTIVE SECRETARIAT STAFFING DOCUMENT
SYSTEM LOG NUMBER:
5070 (REDO)
PRYCE
ASAP
ACTION OFFICER:
DUE:
Prepare Memo For Scowcroft/Gates
Appropriate Action
Prepare Memo For Cicconi
Prepare Memo for Hughes
Prepare Memo
to
CONCURRENCES/COMMENTS*
PHONE* to action officer at ext.
6942
FYI
FYI
FYI
Basora
Lampley
Rademaker
Beers
Leach
Reiss
Blackwill
Levin
Rice
Briggs
Lewis
Rodman
Brooks
Mahley
Rostow
Charles
Mandel
Salvetti
Coulson
McCue
Snider
Deal
Melby
Tilley
Donley
Menan
Tobey
Dyke
Miller
Welch
Ebner
Miskel
Whitley
Grant
Needels
Working
Haass
Paal
Zelikow
Hoffmann
Pacelli
Hutchings
Passage
Jackson
Popadiuk
LaMagna
Porter
Kanter
Pryce
INFORMATION
Hughes
Gates (advance)
Exec. Sec. Desk
Scowcroft (advance)
Secretariat
COMMENTS
PER HUGHES PLS CONSOLIDATE ALL COMMENTS/CONCURRENCES
INTO ONE REPLY
CDM
Logged By
Return to Secretariat
5070
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
June 30, 1989
ACTION
MEMORANDUM FOR G. PHILIP HUGHES
THROUGH:
EVERETT ELLIS BRIGGS
FROM:
WILLIAM T. PRYCE
SUBJECT:
Reply to Letter to John Sununu from Senator Graham
Attached at Tab I is our suggested reply to the portion of
Senator Graham's letter to Chief of Staff, John Sununu concerning
Panama.
Concurrence by: Virginia Lamp
RECOMMENDATION
That the language at Tab I be incorporated in to the reply to
Senator Graham.
Approve
Disapprove
Attachments
Tab I
Hughes to Sununu Memorandum
Tab II
Incoming Correspondence
Suggested language for on Panama for use in reply to Senator
Graham's June 6 letter.
On the of We covern
question Panama we share your preoccupation with the
need to keep working on a number of fronts to help the Panamanian
people secure a democratic government. We are continuing to make
clear both publicly and privately our position that this can not
happen while Noriega remains in power. We are concentrating on
our multilateral efforts through the OAS at this point, but are
also continuing our bilateral efforts and considering what else
further steps we may need to take. We appreciate your offer of
assistance in building a bipartisan White House/Congress
coalition, and will be in touch with your office regarding
further action.
100%
mooss
we
of
initateral step
to tale
5070
THE WHITE HOUSE
WASHINGTON
June 19, 1989
Dear Bob,
Thanks for following up on our meeting last
month.
You have covered alot of different issues and I
have asked our staff to review your specific
points and follow up with you directly.
See you soon.
Sincerely,
John H. Sununu
Chief of Staff
The Honorable Bob Graham
United States Senate
Washington, D.C. 20510
bcc: NSC Secretariate w/ incoming for follow-up
OMB w/ incoming for follow-up
Chase Untermeyer w/ incoming for follow-up
Fred McClure w/ incoming (FYI)
BOB GRAHAM,
43899
FLORIDA
United States Senate
WASHINGTON, DC 20510
5070
June 6, 1989
Mr. John Sununu
Chief of Staff to the President
The White House
Washington, D.C. 20500
Dear John:
Thank you for the opportunity to meet with you on May 11. I
apologize for the delay in following up on the items we discussed,
but this has been an unusually busy time for me, and from the
preparation and successful completion of your European trip, even
more so for you. Congratulations on the President's visionary
proposal to our NATO allies and the pride which his ideas and
presence before our European allies have given to all Americans.
The following is a summary of the topics that we discussed and a
request for assistance:
1. Refugee related matters: Attached is a memo which covers
the several refugee related issues. I would particularly
like to underscore the urgency of starting a policy process
NSC
which has as its objective the development of national
position on the acceptance of financial responsibility for
extraordinary cost imposed on a community as a result of
unanticipated undocumented alien and refugee arrivals.
2. Panama: Over four weeks have now passed since the
abortive election in Panama. Each day that passes the
reservoir of domestic and international outrage against
General Noriega wanes. If much additional time passes, the
United States will be seen to have acquiesced in Noriega's
theft of democracy from the people of Panama. I do not
underestimate the cost and consequences of forceful action.
NSC
While there is some of that public sentiment remaining, the
price of accommodation through a failure to escalate actions
sufficient to accomplish the objective of the elimination of
Noriega will be even higher. The vote last week in the
Senate on appointing a Panamanian to head the Panama Canal
commission is an early signal of what lies down the road in
domestic politics. What appears to be an emboldened
Sandinista regime increasingly unwilling to fulfill its
election obligations will be another. I again offer my
assistance to assist in building a bipartisan White
House/Congress coalition behind steps which I believe must be
taken and taken before the end of this month.
3. Drug initiatives: The President has been effectively
raising our collective awareness of the severity of this
problem. I believe that he now has the opportunity to
convert this into political action firmly assuming the
offensive on this national scourge. To accomplish this, I
would encourage the Office of Management and Budget to review
its pending budget recommendations on various drug
Darman
initiatives. Enclosed is an analysis prepared by the
Congressional Budget Office contrasting the Fiscal Year 1990
authorizations under the 1988 anti-drug bill and the
Administration's budget request. Either we should downscale
or redirect our policies from those set last fall, or be
prepared to fund them. The alternative to doing so is to
incur the charge of political scam which A. M. Rosenthal
leveled at us in the enclosed column which was reprinted in
the Tampa Tribune May 14th.
4. Health Care Financing Administration Vacancy: This
position continues to be vacant while there is tremendous
concern in our state and I gather elsewhere as to the
untermeyers
administration of critical health care programs. Enclosed is
an article from the Orlando Sentinel relative to a hearing on
the delayed payment situation in Florida, a circumstance
which is substantially and adversely affecting the
credibility of the medicare program and discouraging provider
participation. Prompt attention to the appointing of the
administrator for this program is critical to health care
financing everywhere.
John, thank you for allowing me to cover so many items during our
brief meeting. I congratulate you on the effective support which
you are giving to the President, and if I can be of assistance to
you, I would be pleased to attempt to do so.
With kind regards,
Sincerely,
Box
United States Senator
BG/vrj
Enclosures
MEMORANDUM
DATE:
June 6, 1989
TO:
Governor John Sununu
FROM:
Senator Bob Graham
RE:
Follow up on May 11 meeting
As you requested, I am providing background information relative
to our discussion last week on refugee issues.
1) It is my position that the federal government should assume
the primary financial responsibility for the excessive
community impacts caused by the immigration of refugees and
undocumented aliens. The State of Florida was severely
impacted by the Mariel and Haitian surges between 1978 and
1980 and is now feeling the financial impact of an influx of
Nicaraguans.
Relative to this recent surge, Dade County Public Schools
alone have registered 5,437 Nicaraguan students in the first
four months of 1989. At this rate, a new school could be
built every eight weeks. Jackson Memorial Hospital served
7,000 Nicaraguans in 1988 at a cost to Dade County of
$3.5 million. The City of Miami spent $200,000 housing
Nicaraguans in the municipal stadium. Dade County estimates
that it will spend more than $1 million on social services
and law enforcement for this population in 1989.
ACTION REQUESTED: Please provide me with the names of
Administration officials I can work with to develop a policy
statement regarding the federal responsibility for costs
associated with refugee and alien influxes. I would like to
include such a policy statement in the context of the
upcoming reauthorization of the Refugee Act of 1980.
2) When I served as Governor, I had lengthy discussions with INS
Commissioner Nelson and other Reagan Administration officials
in an attempt to develop a contingency plan to provide a
federal response in the period immediately following a mass
influx of refugees or aliens in South Florida. Development
of this plan was never completed.
ACTION REQUESTED: I would like these negotiations to be
reactivated to include new officials in the Bush Admin-
istration, as well as the State of Florida, with the goal of
completing the development of a contingency plan as soon as
possible.
3) On January 25, the Office of Refugee Resettlement proposed
new regulations for the Targeted Assistance Program. If
adopted, these regulations would drastically reduce Florida's
allocation in FY89 and eliminate Florida entirely in ensuing
years. This program was specifically designed to supplement
existing federal refugee programs to assist counties
experiencing an unexpectedly large or sudden influx of
refugees.
Since most Nicaraguans who have entered the United States in
the last twelve months do not meet the legal definition of
the term "refugee", they cannot be counted for the purposes
of allocating Targeted Assistance dollars. Regardless of
legal definitions, they are nonetheless a very real, human
impact on communities in South Florida. The timing of the
formula change and the impending elimination of Florida from
this program could not have been more inappropriate given the
financial impact outlined in #1 above.
ACTION REQUESTED: I am requesting that the proposed
regulations be rescinded and that FY89 targeted assistance
dollars be released. At a minimum, I would like the
implementation of the regulations postponed until FY90, since
Florida's targeted assistance programs are predicated upon
the availability of these funds and will close down at the
end of this month due to the uncertainty of their funding
source.
June 1, 1989
CONGRESSIONAL RECORD -
S 5949
COMPARISON OF THE PRESIDENT'S (BUSH) FUNDING PROPOSALS FOR DRUG-RELATED ACTIVITIES AND THE ANTI-DRUG ABUSE ACT OF 1988
(Extrapolated authorizations for 1990)
(1) Total authorization
(2) Baseline funding
(3)=(2)-(1) = (1) Unfunded
(4)
Bush
budget
increment
(5)=(3)-(4) = Unfunded
authorization
authorization
Budget
Outlays
Bodget
Authority
Outlays
Budget
Budget
Authority
Outlays
Authority
Outloys
Bodget
Authority
Authority
Outlays
Function:
150-Internation affairs
300-Natural resources:
138
50
110
41
28
9
10
4
15
18
5
400-Transportation
12
0
0
15
12
11
9
4
450-Community development
291
3
69
121
25
170
43
25
19
145
21
25
500-Education and training
12
1
20
11
3
2
17
550-Health
456
9
74
436
68
20
6
2,225
(12)
1,339
(10)
33
"
600-Income security
1,268
792
957
548
63
35
894
700-Veterans affairs
19
513
17
0
0
19
17
0
0
19
17
11
750-Administration of justice
14
0
0
17
14
0
0
17
2,631
14
800-General Government
1,672
1,976
1,363
655
309
(48)
(21)
703
155
329
18
4
4
152
14
144
,
or
/
Total
5,967
3,279
3.916
2,294
2.052
985
195
44
1,857
940
THE ANTI-DRUG ABUSE ACT OF 1988-UNFUNDED AUTHORIZATIONS (FISCAL YEAR 1990) ACCOUNTS WITH UNFUNDED AUTHORIZATIONS OF MORE THAN $50 MILLION
[By Fiscal year, in millions of dollars]
(1) Total authorization
(2) Basefine lunding
(3) (2)-(1) Unfunded
(4) Bush budget increment
(5)-(3)-(4) Unfunded
Function/account
authorization
authorization
Authorization
Outlays
Budget
authority
Outlays
Authorization
Budget
level
Outlays
authority
Outlays
Authority
level
level
Outlays
Function 400-Transportation:
U.S. Coast Guard
Other
229
39
121
25
108
14
16
13
92
I
62
29
0
0
62
29
9
6
54
24
Total
291
69
121
25
170
43
25
19
145
25
Function 550-Health:
ADAMHA
Other
2,174
1,301
1,263
788
911
414
57
32
854
51
481
38
5
4
46
34
6
2
40
32
Total
2,225
1,339
1,268
792
957
548
63
35
894
513
Function 750-Administration of justice:
DEA.
81
U.S. Customs Service
61
32
24
49
37
(14)
(11)
63
47
1,350
Federal Frison System. buildings and facilities
1.085
1.267
1,031
83
54
(118)
(92)
201
147
208
Office of Justice Programs
21
100
10
108
11
17
2
91
9
Other
562
208
327
121
235
87
(82)
(30)
317
117
428
297
249
177
180
120
149
III
31
9
Total
Other functions
2,631
1,672
1,976
1,363
655
309
(48)
(21)
703
329
821
199
551
114
270
85
155
11
115
74
Grand total
5,967
3,279
3,916
2,294
2,052
985
195
44
1,857
940
OFFICE OF JUSTICE PROGRAMS AUTHORIZATIONS AND
business leaders In Miami. So what are
One other example, and that Is in
FUNDING FOR FISCAL YEAR 1990
we going to be doing about the treat-
the State and local grant. I think we
[In millions of dollars)
ment program? According to the bill
all agree that one of the key parts of
we passed which has an upward in-
fighting the war on drugs Is going to
Author.
Unfunded Amounts
CBO
clined slope as we get closer and closer
ized
Bush
be to have some allies. The big part of
Program
level
baseline
request
C80
Bush
to this goal of treatment on request,
those allies would be local and State
baseline
request
we should be spending this year, in the
law enforcement personnel. We recom-
State and local grants
350
160
fiscal year 1990, $2 billion 174 million
mend for the 1990 authorization level
150
190
200
Juvenie justice
83
67
0
16
83
in authority and $1 billion 301 million
$350 million to reach out and help
Bureau of Justice
statistics
30
21
22
in outlays. That is an indication of
local and State law enforcement do a
9
8
National Institute of
how we are beginning to lay an
better Job. The President has recom-
Justice
30
22
25
8
5
Public safety officer
upward guide slope to get prepared to
mended $150 million. We are $200 mil-
death benefits
25
21
25
4
0
meet this challenge of treatment on
lion short of what we had authorized
Other
45
37
24
8
21
request.
as against what the President has rec-
Total
563
328
246
235
316
The President's recommendations,
ommended.
however, would only fund approxi-
Mr. President, we are going to go
Mr. GRAHAM. It would underfund
mately 65 percent of both of those two
beyond cynicism. We are going to
in terms of budget outlays by $940 mil-
categories. We would be $854 million
appear to be fools, if we continue this
lion.
short in budget authority, and $481
course of action, in terms of our com-
So, Mr. President, by our actions last
million short in budget outlay in the
mitment to fighting the war on drugs.
year. and the actions we are going to
treatment program arca.
I know that it is not popular, Mr.
be taking today on this supplemental
How are you going to tell those
President, to talk about raising taxes
appropriations bill, we are setting our-
people back in Marianna that we are
and spending money on anything. We
selves up for a much bigger failure if
credible, we are going to be supporting
have read people's lips, but people's
we refuse to recognize the legitimacy
of this issue for 1990 than the one we
their efforts to provide treatment?
lips said lots of things; people's lips
have already inflicted upon ourselves
What message are we going to give to
said we were going to win the war on
for 1989.
the folks in Key West or Miami who
drugs. We heard it just on the steps of
Let me just point out two out of a
are crying out for treatment programs,
the Capitol on the 20th of January,
potential set of examples of what this
when we say here is what the Presi-
one of the commitments of the new
dent has requested, and we are not
President Is that we are not going to
means. I mentioned the importance of
prepared today to start to show that
declare defeat, retreat, and declare un-
drug treatment to that city commls-
conditional surrender in the war on
sion in Key West, to the emergency
the Congress is not going to be part of
this scam.
drugs. To the contrary. we are going to
room in Madison, and to the black
fight and win that war.
FEDER. DRUG LAW ENFORCEMENT AND ABUSE SUMMARY
09-Feb-89
(Buket Authority and Outlays in millions)
A1
File name: ROLLUP
1989
1990
By Agency
Drug Bill
Total
President's
1987
1981
Supplemental
1989 Enacted
February Budget
BA
Outlays
BA
a
are
RA
Outlays
BA
Outlays
BA Outlays
Office of National Drug
Control Policy
0.0
0.0
0.0
0.0
3.5
2.6
3.5
2.6
12.0
9.0
Special fortaiture fund
0.0
0.0
0.0
1.0
0.0
0.0
0.0
0.0
1360
00
Department of Justice
DEA
486.1
411.7
492.5
1.0
30.0
22.5
534.5
487.2
551.2
526.0
FBI
97.1
91.2
124.9
1.3
15.0
12.0
129.3
131.3
91 6
87.4
OCDE
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
214.9
161.2
Criminal Div.
3.3
3.0
9.4
2.4
1.0
0.9
10.7
10.6
10.1
10.2
Tax Div.
2.0
2.0
2.2
2.1
0.0
0.0
2.2
2.1
08
0.7
U.S. Attorneys
74.2
69.8
80.7
0.8
55.9
49.2
141.4
130.9
1132
112.2
U.S. Marshals
65.8
62.6
91.6
5.8
8.0
6.4
123.9
120 6
151.0
1484
Prisons
304.2
762.9
614.5
1.4
43.0
4.3
579.5
498 8
6640
614 4
Support
27.9
24.0
53.3
1,1.9
9.0
5.4
58.4
563
79.6
70.8
PCOC
0.0
0.0
0.0
1.0
0.0
0.0
0.0
0.0
0.0
0.0
INS
31.2
30.1
70.0
68.0
26.2
21.0
109.2
105.2
89.0
85.7
OJP
242.6
21.1
96.6
0.1
90.0
33.3
182.8
120.4
164.8
216.7
forfeiture fund
120.0
75.0
161.0
).0
0.0
0.0
326.0
145.5
337.0
281.0
INTERPOL
0.6
0.6
0.8
1.8
0.8
0.6
1.1
1.0
1.1
1.0
Inspector Ceneral
0.0
0.0
0.0
1.0
0.0
0.0
0.6
0.4
1.2
1.0
1,454.9
1,053.9
1,597.5
.6
278.9
155.6
2,199.6
1,819.3
2,469.1
2,316.7
Department of Treasury
Customs
459.5
488.3
425.8
21.5
15.2
10.9
444.0
435.0
441.5
431.9
IRS
66.6
66.6
059
1.9
0.0
00
68.3
68.3
55.6
55.6
BATE
11.3
11.1
82
30
0.0
0.0
8.8
8.6
1.2
1.2
Payments to Puerto Rico
7.8
7.8
78
18
0.0
0.0
0.0
0.0
0.0
0.0
545.2
573 B
5057
.3
15 ?
10.9
521.1
511.9
4983
488.7
Department of Transportation
Coast Guard
557 1
5218
1130
:6
532
177
6329
was
189.9
654.1
FAA
10
10
63
33
00
00
43
is
217
21.7
WHISA
00
00
00
10
00
00
0.4
07
90
16
558 1
522 8
5,00
:
51;
12 :
6376
was
1:00
6:36
Department of State
is
11M
118.4
59.6
98 8
5.0
0.0
0.0
101.0
97.0
115.0
112.0
AID (Direct)
12.3
136
143
17
0.0
00
17.9
27.0
132
25.7
USIA
2.0
18
10
10
0.0
00
1.0
10
10
1.0
S&E
0.0
0.0
00
00
5.0
4.0
5.0
4.0
0.0
0.0
132.8
75.0
114.1
1.7
50
4.0
124.9
128 9
170 ?
138.7
FEDE "L DRUG LAW ENFORCEMENT AND ABUSE SUMMARY
09-Feb-89
(F,get Authority and Outlays in millions)
A1
File name: ROLLUP
1989
1990
By Agency
Drug Bill
Total
President's
1987
19 0
Supplemental
1989 Enacted
february Budget
BA
Outlays
BA
(ways
BA
Outlays
BA
Outlays
BA
Outlays
Department of Agriculture
Agriculture Research Service
1.4
1.4
1.3
1.3
0.0
0.0
1.3
1.3
1.3
1.3
U.S. forest Service
3.2
3.2
5.2
5.2
0.0
0.0
5.2
5.2
5.3
5.3
4.6
6.6
6.5
6.5
0.0
0.0
6.5
6.5
6.6
6.6
Department of Interior
Bureau of Land Management
1.0
1.0
1.5
1.5
0.0
0.0
1.3
13
6.8
6.8
U. 5. Park Service
1.2
1.2
1.2
1.2
0.0
0.0
1.2
1.2
7.6
7.6
Bureau of Indian Affairs
12.4
7.0
6.5
6.8
0.0
0.0
6.8
8.6
9.9
11.8
Fish and Wildlife Service
0.4
0.4
0.4
0.4
0.0
0.0
0.4
0.4
0.4
0.4
15.0
9.6
9.6
9.8
0.0
0.0
9.7
11.5
24.7
26.6
Department of Defense
Interdiction
405.3
164.1
94.7
67.9
0.0
0.0
308.3
303.1
317.6
312.9
Demand reduction
98.7
91.9
105.9
'0.5
0.0
0.0
112.0
107.0
117.5
112.4
504.0
256.0
200.6
8.4
0.0
0.0
420.3
410.1
435.1
425.3
Department of HHS
ADAMHA
503.4
434.4
520.8
8.9
283.0
209.5
890.8
732.6
986.0
940.5
IHS
4.8
4.8
16.2
16.2
0.0
0.0
18.7
18.7
18.7
18.7
FDA
1.6
1.6
1.6
1.6
5.0
4.4
6.7
4.7
1.8
3.8
Other
0.0
0.0
0.0
0.0
30.0
3.0
30.0
3.0
30.0
29.0
509.8
440.8
538.6
76.7
318.0
216.9
946.2
759.0
1,036.5
992.0
Department of Education
203.0
41.8
279 8
119.8
108.0
13.3
354.5
210.9
301.6
357.7
Department of tabor
5.8
5.8
11
1.8
2.0
1.2
5.7
36
37
2.2
ACTION
7.8
7 B
50
38
20
1.2
7.9
50
5.9
3.8
White House Conference
20
07
25
30
00
00
00
00
00
00
Veterans Administration
85.2
810
88 5
A ?
00
00
03.0
366
of 5
on
::
TOTAL FEDERAL DRUG PROGRAM
4,026.3
3,075.6
3,822.5
3
84
785.8
423.3
5,331.6
4,5687
5,965.9
5,542.8
A1
09-Feb-89
FEDERAL DRUG LAW ENFORCEMENT AND ABUSE SUMMARY
File name: ROLLUP
(Budget Authority and Outlays in millions)
By Agency
1981
1982
1983
1984
1985
1986
BA
Outlays
BA
Outlays
BA
Outlays
BA
Outlays
BA
Outleys
BA
Outlays
Office of National Drug
Control Policy
0.0
0.0
0.0
00
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Special forfeiture Fund
0.0
0.0
0.0
#0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Department of Justice
DEA
216.1
216.8
239.1
2.46
254.9
259.9
291.9
281.8
344.0
331.8
372.3
347.7
FBI
8.3
8.3
40.2
.02
136.9
136.9
99.3
99.3
103.9
103.9
102.5
98.6
OCDE
0.0
0.0
0.0
00
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Criminal Div.
1.6
1.5
1.9
18
1.8
1.7
1.9
1.8
2.7
2.5
2.7
2.6
Tax Div.
0.0
0.0
0.0
00
0.8
0.6
0.8
0.8
1.6
1.6
2.0
2.0
U.S. Attorneys
19.5
19.5
20.9
,04
32.7
32.0
47.7
40.7
54.8
53.7
57.3
53.3
U.S. Marshals
26.3.
25.0
29.4
7 9
31.1
29.5
36.0
34.2
48.1
45.7
52.2
49.5
Prisons
79.7
83.1
99.4
18
114.5
102.4
120.9
119.3
178.8
162.6
221.7
227.8
Support
5.9
5.4
8.0
13.1
12.0
16.4
15.0
19.5
17.9
21.1
19.3
PCOC
0.0
0.0
0.0
00
0.2
0.2
1.6
1.5
2.2
2.0
1.0
1.3
INS
0.3
0.2
0.3
03
0.4
0.4
0.5
0.5
0.5
0.5
6.5
6.5
OJP
4.5
14.7
4.4
80
8.8
7.1
7.4
8.4
12.9
8.1
19.9
13.3
forfeiture Fund
0.0
0.0
0.0
00
0.0
0.0
0.0
0.0
0.0
0.0
43.0
37.0
INTERPOL
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.2
0.2
Inspector General
0.0
0.0
0.0
(.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
362.2
374.5
443.5
4.3
595.3
583.0
624.7
603.4
769.2
730.5
902.3
859.0
Department of Treasury
Customs
136.8
137.0
141.5
185
137.9
133.3
227.3
177.9
302.0
260.8
311.6
278.8
IRS
35.2
35.2
44.2
42
50.3
50.3
57.4
57.4
61.6
61.6
63.5
63.5
BATE
0.0
0.0
1.5
: 5
4.6
2.9
8.3
8.1
9.5
9.3
7.5
7.3
Payments to Puerto Rico
0.0
0.0
0.0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
172.0
177 2
187 2
1'2
192.8
186.5
293.0
243.4
373 1
331.7
382.6
349.6
Department of Transportation
Coast Guard
227.8
227 7
329 2
1.2
360.1
3/0.1
508.6
508 6
508.2
508.2
601.4
444.3
FAA
0.4
04
02
: 2
0.5
05
0.5
05
0.5
0.5
0.6
0.6
WHISA
0.0
0.0
00
0
0.0
00
0.0
0.0
0.0
0.0
0.0
0.0
228.2
228.1
320.5
1.5
360.5
360 5
509.1
5021
508 6
508 6
402.0
444.0
Department of State
B.
1NM
34.7
28.4
36.7
23
36.7
36.6
41.2
33 3
50.2
51.6
55.1
58.3
AID (Direct)
0.0
0.0
15.7
10
9.2
5.8
10.6
7.4
7.9
4.3
25.4
16.6
USIA
1.0
0.5
1.0
10
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
S&E
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
35.7
28.8
53.4
46.9
43.4
52.8
41.7
59.1
56.9
81.5
75.9
FEDERAL DRUG LAW ENFORCEMENT AND ABUSE SUMMARY
A1
09-Feb-89
(Budget Authority and Outlays in millions)
File name: ROLLUP
By Agency
1983
1984
1985
1986
1981
1982
Outlays
BA
Outlays
BA
Outlays
BA
Outlays
BA
Outlays
BA
Outlays
BA
Department of Agriculture
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.3
1.3
Agriculture Research Service
3.1
3.1
U.S. forest Service
0.5
0.5
0.7
0.7
0.8
0.8
2.6
2.6
3.0
3.0
1.9
2.1
2.2
2.2
4.0
4.0
6.4
6.4
4.4
6.4
1.9
2.1
Department of Interior
0.0
0.0
0.0
0.0
0.2
0.2
0.2
0.2
0.2
0.2
1.0
1.0
Bureau of Land Management
0.8
0.2
0.2
0.1
0.2
1.2
0.5
0.5
0.7
0.7
0.8
U. S. Park Service
0.1
Bureau of Indian Affairs
1.7
1.7
1.9
1.9
1.9
1.9
2.0
2.0
3.1
2.0
4.5
4.5
0.1
0.1
0.1
0.1
0.2
0.2
0.2
0.2
0.4
0.4
0.3
0.3
Fish and Wildlife Service
6.5
3.4
6.0
6.0
1.9
1.9
2.2
2.2
2.8
2.8
3.1
3.1
Department of Defense
0.0
0.0
4.9
..0
9.7
8.0
14.6
13.0
54.8
44.0
105.7
73.7
Interdiction
33.6
24.6
57.6
0.2
69.7
63.9
73.9
70.2
81.5
77.0
83.0
79.8
Demand reduction
83.2
136.3
121.0
188.7
153.5
33.6
24.6
62.5
1.2
79.4
71.9
88.5
Department of HHS
239.0
233.3
161.1
....2
183.1
181.7
193.4
193.0
210.6
210.7
219.4
217.4
ADAMHA
1.5
1.5
1.6
1.7
2.1
2.0
2.3
2.2
2.4
2.4
2.4
2.4
IXS
0.7
0.7
0.7
0.7
1.6
1.6
1.4
1.4
0.8
).8
0.7
0.7
FDA
0.0
0.0
0.0
1.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Other
241.9
236.2
163.5
...7
185.9
184.4
196.4
195.9
213.7
213.8
223.4
221.4
2.9
2.1
2.9
2.7
3.0
3.7
2.9
2.3
Department of Education
2.0
2.9
2.9
3.5
3.4
3.4
1.4
14
0.6
06
0.4
0.2
04
0.3
0.1
0.3
Department of Labor
2.5
25
68
68
6.0
60
6.8
68
60
6.9
6.9
6.9
ACTION
00
00
00
0.0
00
00
0.0
0.0
0.0
White House Conference
00
00
00
52.0
51.8
55.8
10
605
60 3
63.3
611
666
643
684
68.1
Veterans Administration
:::
1,138.0
1,128 8
1,310.6
1
'A'
1,536.6
1,50%
1,844.8
1,754.5
2.145
9
2,045.5
2,269.1
2,192.3
TOTAL FEDERAL DRUG PROGRAM
Medicare's
late checks
taking a toll
Debts piling up for patients,
doctors after computer foul-up
By Mike Oliver
OF THE SUNDINED STATE
5-21-89
In the past five months, Ormond Beach fam-
ANGELA PETERSON/SENTINEL
ily physician Dr. Roman Hendrickson has bor-
Aide Jay Hakes whispers advice to Graham during meeting on Medicare.
rowed money twice to pay his employees, put-
ting his building up as collateral.
Graham said he would like to eliminate a
Scott, a vice president at Blue Cross and Blue
The reason: or the 1,784 Medicare claims he
federal law that requires Medicare claims to be
Shield.
has sent in for reimbursement since January,
held a minimum of 14 days without payment
The number of unprocessed claims peaked
1,404 of them still have not been paid.
The 14-day hold was a cost-cutting measure for
at 2.6 million in January but has been decreas-
"I have $60,000 pending," Hendrickson said,
the federal government, but Graham said the
ing since January. By June 30, the system
using Medicare's term for a claim that has not
government shouldn't be trying to balance its
should be operating at national standard lev-
G3
been processed.
budget on the backs of Medicare patients and
els, which in Florida means that no more than
Hendrickson spoke at a hearing Saturday
providers.
1.1 million claims will be pending, or unpro-
called by U.S. Sen. Bob Graham on problems
Graham said he also would like to come up
cessed, in any month.
caused by a computer foul-up last December
with a monitoring system to ensure reim-
Physicians and medical equipment suppli-
that has backlogged millions of Medicare re-
bursements are paid in a timely manner and
ers remained skeptical at the news of progress
imbursements.
to delay another scheduled computer modifi-
at Saturday's hearing.
Blue Cross and Blue Shield of Florida Inc. is
cation until the backlog is cleared up.
"And I understand Exxon is cleaning up the
under contract to distribute the payments to
It was a change from one computer system
oil spill," said Ted Shaeffer, a Sarasota medi-
elderly patients, doctors and medical equip-
to another that put Blue Cross behind in the
cal supplies dealer.
ment suppliers throughout Florida
first place.
George Holland, the Regional Administrator
After the hearing at Orlando International
A computer system overhaul combined with
of Health Care Finance Administration that
Airport. Graham said congressional action may
higher-than-expected Medicare submissions
oversees Medicare programs, said the prob-
caused the number of unprocessed claims to
2022246843
be needed to help those who are waiting for
lems should be smoothed out soon. "I'll admit
jump from about 500,000 in November to more
money.
it's been a horrible experience but we hope
than 2 million in December, said Charles
the worst is over."
#12
ID# 043899
THE WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
INCOMING
ND016
DATE RECEIVED: JUNE 12, 1989
NAME OF CORRESPONDENT: THE HONORABLE BOB GRAHAM
SUBJECT: FOLLOW-UP TO MAY 11 89 MEETING REGARDING
REFUGEE RELATED MATTERS, PANAMA, DRUG
INITIATIVES AND HEALTH CARE FINANCING
ADMINISTRATION VACANCY
ACTION
DISPOSITION
ROUTE TO:
ACT DATE TYPE C COMPLETED
OFFICE/AGENCY
(STAFF NAME)
CODE YY/MM/DD RESP D YY/MM/DD
JOHN SUNUNU
ORG 89/06/12 JS 489/06/19
REFERRAL NOTE:
NSSCOW
A 89/6/23
/ /
REFERRAL NOTE:
990MB
TR
A 89/6/23
77
/ /
REFERRAL NOTE:
IPPUNTE
A 89/6/23
7 /
REFERRAL NOTE:
LAMCCL
89/6/23 PYI
/ /
REFERRAL NOTE:
COMMENTS:
ADDITIONAL CORRESPONDENTS:
MEDIA:L INDIVIDUAL CODES: 1210
CS MAIL
USER CODES: (A)
(B)
(C)
*ACTION CODES:
*DISPOSITION
*OUTGOING
*
*
*
*CORRESPONDENCE:
*
*A-APPROPRIATE ACTION
*A-ANSWERED
*TYPE RESP=INITIALS
*
*C-COMMENT/RECOM
*
OF SIGNER
*
*D-DRAFT RESPONSE
*C-COMPLETED
*
CODE = A
*
*F-FURNISH FACT SHEET
*S-SUSPENDED
*COMPLETED = DATE OF
*
*I-INFO COPY/NO ACT NEC*
*
OUTGOING *
*R-DIRECT REPLY W/COPY *
*
*
*S-FOR-SIGNATURE
*
*
*
*X-INTERIM REPLY
*
*
*
REFER QUESTIONS AND ROUTING UPDATES TO CENTRAL REFERENCE
(ROOM 75,OEOB) EXT-2590
KEEP THIS WORKSHEET ATTACHED TO THE ORIGINAL INCOMING
LETTER AT ALL TIMES AND SEND COMPLETED RECORD TO RECORDS
MANAGEMENT.
Medicare's
late checks
taking a toll
Debts piling up for patients,
doctors after computer foul-up
By Mike Oliver
OF
THE
SUNDINEL
STAFF
5-1-89
In the past five months, Ormond Beach fam-
ANGELA PETERSON/SENTINEL
ily physician Dr. Roman Hendrickson has bor-
Aide Jay Hakes whispers advice to Graham during meeting on Medicare.
rowed money twice to pay his employees, put-
ting his building up as collateral.
Graham said he would like to eliminate a
Scott, a vice president at Blue Cross and Blue
The reason: or the 1,784 Medicare claims he
federal law that requires Medicare claims to be
Shield.
has sent in for reimbursement since January,
held a minimum of 14 days without payment.
The number of unprocessed claims peaked
1,404 of them still have not been paid.
The 14-day hold was a cost-cutting measure for
at 26 million in January but has been decreas-
"I have $60,000 pending," Hendrickson said,
the federal government, but Graham said the
ing since January. By June 30, the system
using Medicare's term for a claim that has not
government shouldn't be trying to balance its
should be operating at national standard lev-
been processed.
budget on the backs of Medicare patients and
els, which in Florida means that no more than
Hendrickson spoke at a hearing Saturday
providers.
1.1 million claims will be pending, or unpro-
called by U.S. Sen. Bob Graham on problems
Graham said he also would like to come up
cessed, in any month.
caused by a computer foul-up last December
with a monitoring system to ensure reim-
Physicians and medical equipment suppli-
that has backlogged millions of Medicare re-
bursements are paid in a timely manner and
ers remained skeptical at the news of progress
imbursements.
to delay another scheduled computer modifi-
at Saturday's hearing.
Blue Cross and Blue Shield of Florida Inc. is
cation until the backlog is cleared up.
"And I understand Exxon is cleaning up the
under contract to distribute the payments to
It was a change from one computer system
oil spill," said Ted Shaeffer, a Sarasota medi-
elderly patients, doctors and medical equip-
to another that put Blue Cross behind in the
cal supplies dealer.
ment suppliers throughout Florida
first place.
George Holland, the Regional Administrator
A computer system overhaul combined with
of Health Care Finance Administration that
After the hearing at Orlando International
higher-than-expected Medicare submissions
oversees Medicare programs, said the prob-
Airport, Graham said congressional action may
caused the number of unprocessed claims to
lems should be smoothed out soon. "I'll admit
be needed to help those who are waiting for
jump from about 500,000 in November to more
it's been a horrible experience
but we hope
money.
than 2 million in December, said Charles
the worst is over."
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
5446
July 14, 1989
ACTION
MEMORANDUM FOR BRENT SCOWCROFT
h
CHRON FILE
THROUGH:
FROM:
WILLIAM T. PRYCE'
EVERETT ELLIS BRIGGS N/6
SUBJECT:
President's Interest in the Health of Sixto A.
Duran-Ballen's Daughter
The President asked Ambassador Holwill in Quito to inquire about
the health of the daughter of a close friend of a former neighbor
and friend of his and to advise him when the contact had been
made.
Ambassador Holwill made the contact and received a letter for the
President from the father of the sick daughter. The letter,
which informs the President about the daughter's medical problems
and prognosis, and thanks him for his interest is attached at Tab
A. A recommended reply is attached at Tab B.
RECOMMENDATION:
That you sign the memorandum to the President forwarding Mr.
Duran-Ballen's letter to him together with a proposed reply.
Attachments
Tab I
Memorandum for the President
Tab A
Recommended Reply from the President
Tab B
Letter to the President from Mr. Duran-Ballen
Tab C
President's Letter to Ambassador Holwill
Tab D
Ambassador Holwill's Letter to the President
Tab II
Roy to Scowcroft Memorandum
Withdrawal/Redaction Sheet
(George Bush Library)
Document No:
Subject/Title of Document
Date
Restriction
Class.
and Type
04a.
To: President Bush From: Brent Scowcroft
n.d.
(b)(6)
Memorandum
Re: Your Interest in the Health of Sixto Duran-Ballen's
Daughter (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Date Closed:
11/18/2014
OA/ID Number:
CF00302-001
FOIA/SYS Case #:
2015-0017-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information |(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency I(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
THE WHITE HOUSE
WASHINGTON
Dear Mr. Duran-Ballen:
Thank you very much for your letter telling
me about your daughter's health. I was
delighted to learn that, after her ordeal,
she is well and working in her field of
communications. I hope and pray that she
will continue to improve.
Mrs. Bush joins me in sending you and your
family thanks for your kind words to us.
Sincerely,
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
04b. Letter
To: President Bush From: Sixto Duran-Ballen
6/7/89
(b)(6)
Re: Health of daughter (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Date Closed:
11/18/2014
OA/ID Number:
CF00302-001
FOIA/SYS Case #:
2015-0017-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRAJ
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRAJ
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA)
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile
THE WHITE HOUSE
WASHINGTON
May 8, 1989
Dear Mr. Ambassador:
Sixto Duran-Ballen is a close friend of our
former neighbor and friend, Dr. Bud Abendschein.
Sixto's daughter, Tita, has been ill.
Will you please contact Sixto Duran-Ballen and
inquire on my behalf as to Tita's health.
Extend to him our best wishes for his daughter's
recovery. Please advise me after you have
contacted him.
Sincerely,
CyBl
The Honorable Richard N. Holwill
American Ambassador
Quito
EMBASSY OF THE
UNITED STATES OF AMERICA
Quito, Ecuador
June 16, 1989
Dear Mr. President:
As you requested in your letter of May 8,
I have been in contact with Sixto Duran-Ballen
regarding the health of his daughter, Tita.
I am enclosing a letter that Mr. Duran asked I
forward to you.
Respectfully yours,
Richard Janun N. Holwill
Ambassador
The President
The White House
5446
S/S 8915769
United States Department of State
Washington, D.C. 20520
July 8, 1989
UNCLASSIFIED
MEMORANDUM FOR BRENT SCOWCROFT
THE WHITE HOUSE
Subject: Letter to President Bush from Sixto A.
Duran-Ballen
Attached is a letter to the President from Mr. Sixto A.
Duran-Ballen. The President wrote to Ambassador Holwill in
Quito, Ecuador on May 8 asking that Mr. Duran-Ballen be
contacted concerning the health of his daughter.
J. Stapleton Roy
Executive Secretary
Attachments:
Tab 1 - Letter from Mr. Duran-Ballen
Tab 2 - Letter from Ambassador Holwill to the President
Tab 3 - Letter from the President to Ambassador Holwill
UNCLASSIFIED
UNCLASSIFIED
RECORD ID: 8905556
NSC/S PROFILE
RECEIVED: 14 JUL 89 14
TO: PRESIDENT
FROM: REICH, 0
DOC DATE: 06 JUL 89
SOURCE REF: 53499
KEYWORDS: VENEZUELA
AP
PERSONS:
SUBJECT: LTR TO THE PRES FM US AMB OF VENEZUELA
ACTION: APPROPRIATE ACTION
DUE DATE: 18 JUL 89
STATUS: S
STAFF OFFICER: PRYCE
LOGREF:
FILES: WH
NSCIF:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
PRYCE
BRIGGS
HILLIARD
PACELLI
WORKING
CHRON FILE
COMMENTS:
Recomed that And Revl he
give aplit app
DISPATCHED BY up
DATE 7/14/89 BY HAND W/ATTCH
OPENED BY: NSTAS
CLOSED BY:
DOC 1 OF 1
UNCLASSIFIED
5556
Scheduling
" g.Burnection
TISC
"
EMBASSY OF THE
UNITED STATES OF AMERICA
Caracas, Venezuela
July 6, 1989
THE AMBASSADOR
Dear Mr. President:
I have not responded to your kind notes of January 13
and 16 because I know how busy you are. I do so now
because in a few weeks I will be finishing my three-year
tour in Venezuela and returning to the private sector.
I want to thank you for all your support and
encouragement in these past ten years. As a long-time
supporter of yours, I hope I have contributed my grain of
sand to the foundation of your successful presidency. I
am proud to have volunteered in your campaign as early as
1979, and I am also proud to have worked for you for eight
years as Vice President and now as President.
As you know, I am a foreign-born American, a refugee
from communist Cuba, who would have been eternally
grateful to the United States simply for the privilege of
being allowed to live in our wonderful, free country. But
the United States, instead, enabled me to participate in
the American dream: to acquire a higher education; to
serve proudly as an officer in the U.S. Army; to work
freely in private enterprise; and then to receive three
consecutive Presidential appointments, culminating with my
assignment of U.S. Ambassador to the friendly democracy of
Venezuela. Leaving government service was, therefore, a
very difficult decision, especially with you in the White
House.
Although I made the decision to return to the private
sector last year, I hope there is some way that I can
return and work for you in what I know will be the eight
years of the Bush presidency. I would consider it a
privilege to serve you, but since I am not a career
government official, I feel that I should return to
private enterprise at least for a while to renew my
experience.
The President
The White House
Washington, D.C. 20500
- 2 -
I know I am going to miss being a part of your "team"
but, at the risk of sounding corny, I feel a bit like
Cincinnatus: I think the nation is in good hands and I
can return to the plow. If at any time you need me, I
will come back.
There is one favor I would like to ask: I would like
to pay a personal farewell call on you and, time
permitting, that you do my family and me the honor of
having our photograph taken with you. I have a couple of
photos with you as Vice-President, but Connie, our
children and I, would be very pleased if we could have a
family photo with our President. We will be back in
Washington in August and, if you agree, I will call your
office to set up an appointment.
Please give our regards to Mrs. Bush. We look forward
to seeing you again soon.
Sincerely
Oth
Otto J. Reich
P.S. - I had lunch with Jeb at
a Cuban restaurant in Miami last
month. fudging from the reception
he got, I believe he could win
the mayor's race, at least. (H
he wanted to.)
ID# 053499
THE WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
INCOMING
DATE RECEIVED: JULY 14, 1989
NAME OF CORRESPONDENT: THE HONORABLE OTTO J. REICH
SUBJECT: PERSONAL LETTER OF APPRECIATION AND SUPPORT,
HE WILL BE FINISHING HIS 3-YEAR TOUR IN
VENEZUELA AND RETURNING TO THE PRIVATE SECTOR
AND WOULD LIKE TO PAY A PERSONAL FAREWELL *
ACTION
DISPOSITION
ROUTE TO:
ACT DATE TYPE C COMPLETED
OFFICE/AGENCY
(STAFF NAME)
CODE YY/MM/DD RESP D YY/MM/DD
JOSEPH HAGIN
ORG 89/07/14
/ /
REFERRAL NOTE:
JAN BURMEISTER
RSI 89/07/14
C 89/07/14
REFERRAL NOTE:
BRENT SCOWCROFT
RSI 89/07/14
C 89/07/14
REFERRAL NOTE:
/
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/ /
REFERRAL NOTE:
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REFERRAL NOTE:
COMMENTS: * CALL AND HAVE THE HONOR OF A PHOTOGRAPH
WITH HIMSELF AND HIS FAMILY WHEN HE RETURNS
TO WASHINGTON IN AUGUST
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REFER QUESTIONS AND ROUTING UPDATES TO CENTRAL REFERENCE
(ROOM 75,OEOB) EXT-2590
KEEP THIS WORKSHEET ATTACHED TO THE ORIGINAL INCOMING
MANAGEMENT. LETTER AT ALL TIMES AND SEND COMPLETED RECORD TO RECORDS
UNCLASSIFIED
RECORD ID: 8905536
NSC/S PROFILE
RECEIVED: 14 JUL 89 09
TO: SCOWCROFT
FROM: ROY, J
DOC DATE: 13 JUL 89
SOURCE REF: 8916220
KEYWORDS: FOREIGN TRAVEL
HONDURAS
COSTA RICA
GUATEMALA
EL SALVADOR
PERSONS:
SUBJECT: FORN TRAVEL REQUEST FOR ARONSON TO HONDURAS / COSTA RICA / GUATAMALA
/ EL SALVADOR ON 14 - 16 JUL
ACTION: CONCURRENCE TO EXEC SECRETARY
DUE DATE: 18 JUL 89
STATUS: S
STAFF OFFICER: PACELLI
LOGREF:
FILES: WH
NSCIF:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
PACELLI
WILSON, M
CHRON FILE
We concur, but note dates:
Armson leaves m 7/14
This package arrived after he left
COMMENTS:
and concunence is due 7/18- after
he returns. what of are say no ?
DISPATCHED BY
DATE
BY HAND
W/ATZ David Paelh
OPENED BY: NSRSC
CLOSED BY:
DOC 1 OF 1 7/14/89
UNCLASSIFIED
8916220
United States Department of State
Washington, D.C. 20520
DATE:
July 13, 1989
MEMORANDUM FOR: Mr. Brent Scowcroft
National Security Council
The White House
SUBJECT: Foreign Travel Request
Key Event or Purpose: Travel to Central America
Trip Objectives:
Meet with Presidents and Foreign Ministers to
discuss regional peace process issues in
advance of the Central American Summit.
Senior Participants:
Bernard Aronson, Assistant Secretary of State
(Name/Title/Agency)
for Inter-American Affairs
Itinerary:
Date
City/Country
Major Event and Meetings
7/14
Tegucigalpa Honduras Bilateral discussions
7/14
San Jose Costa Rica
Bilateral discussions
7/15
Guatemala City, Guatemala Bilateral discussions
7/16
San Salvador, El Salvador Bilateral discussions
J
Stapleton Roy
Executive Secretary
DRAFT CODEL SCHEDULE
Friday, July 14
7AM
Depart Andrews AFB
9AM
Arrive Toncotin AFB (Tegucigalpa)
9:30 AM
Depart Tegucigalpa for Yamales via helicopter
10:15 - 12:15
Visit with Nicaraguan Resistance troops in
Yamales
12:15
Depart for Soto Cano
1:00 - 2:00
Lunch with American Troops at Soto Cano Base
2:00 PM
Depart for Managua
3:00 PM
Arrive Managua
3:30 PM
Briefing by Embassy Country Team
Meeting with Cardenal Obando y Bravo, LaPrensa
Editor Violetta Chamorro, Internal Opposition Parties
and Nicaraguan Government.
-- Overnight in Managua
Saturday, July 15
-- Meetings in Nicaragua
-- Travel in Nicaragua to provincial town
3:00 PM
Depart Managua
4:00 PM
Arrive San Salvador
5:00 PM
Embassy Country Team Briefing
Meetings with President Cristiani, businessmen Ceman
and Miguel Miguel.
-- Overnight in San Salvador
Sunday, July 16
AM Additional leaders. Meetings with Party, Government and Military
12 noon
Depart from San Salvador
1:00 PM Aircraft departs from El Salvador
7:00 PM Arrive Andrews AFB
DRAFT ARONSON SCHEDULE
Friday, July 14
7AM
Depart Andrews AFB
9AM
Arrive Toncotin AFB (Tegucigalpa)
10:00 AM Meeting with President Azcona, FonMin Lopez and COS
Regelado
2:00 PM
Depart for San Jose
3:00 PM
Arrive San Jose
4:00 PM Meeting with President Arias
5:30 PM Meeting with FonMin Madrigal
8:00 PM Dinner with President Arias
Saturday, July 15
8:30 AM
Depart for Guatemala
9:30 AM
Arrive Guatemala
10:00 PM Meeting with President Cerezo and FonMin Palencia
12 Noon
Depart for San Salvador
12:30 PM Arrive El Salvador Airport
1:15 PM
Arrive San Salvador
1:15
Informal Lunch
2:30 PM
Meeting with President Cristiani and FonMin Pacos
Meetings with Military Officers, Chavez Mena, Zamora
and Ungo
Overnight in San Salvador
Sunday, July 16
AM
Additional Meetings with Party, Government and Military
leaders.
12 noon
Depart from San Salvador
1:00 PM
Aircraft departs from El Salvador
7:00 PM Arrive Andrews AFB
CONFIDENTIAL
NATIONAL SECURITY COUNCIL
13-Jul-1989 20:07 EDT
CONFIDENTIAL
MEMORANDUM FOR:
David Pacelli
( PACELLI )
FROM:
David Pacelli
(PACELLI)
SUBJECT:
CHRON FILE
Don Vannerman Phone Call
Don Vannerson called me at approximately 4 p.m. on July 7 from Bogota.
Vannerman is an American citizen with Republican ties--his wife was on the
Steering Committee of the George Bush for President Committee-who we have
Bates' office.
assisted in setting up meetings at the American Embassy, at the request of David
[Background: Vannerson was evasive about the nature of his mission on
a earlier death phone call to me before he left, saying only that he needed help an to get
certificate for a family member. He called me again from Miami, en
Embassy. It turns out that he is on a criminal investigation. Phil McLean, the
route to Bogota, to make sure his request for assistance had been relayed to the
DCM, had called this office to find out about some guy claiming White House
connections, saying that he was going to get killed if he wasn't more careful.
Apparently, around the guy that got bumped off was into bad business, and you don't go
careful.]
asking questions about that type of individual without being real
Vannerman said that he had been put in touch by McLean with the local DEA to
see if the deceased was a known drug trafficker. Off the record, the DEA man
it acknowledged that the subject was deceased, but he could not officially confirm man
DEA any type of investigation, where an official determination is necessary.) The
without instructions from higher authority. (Of course, this is no good for
guy said that another alternative was if Vannerman got "someone in
Washington" to request that he release the information officially.
I was not about to be dragged into this. I said that his options were to
the through the Freedom of Information Act route or that he could get the name go of
here. DEA superior in Washington from the guy in Bogota and pursue it further up
friendly. He did not indicate any intention to contact me again.
He did not press me for direct assistance and everything was very
The call lasted about 5 minutes.
CONFIDENTIAL
DECLASSIFIED
PER NSC WAIVER, #2021-02
By MC NARA, Date 7/16/21
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
06a.
To: Robert Gates From: David Pacelli
7/13/89
(b)(1)
S
Memorandum
Re: Request for Report (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Date Closed:
11/18/2014
OA/ID Number:
CF00302-001
FOIA/SYS Case #:
2015-0017-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA)
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA)
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRAJ
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRAJ
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as apersonal record misfile
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
06b.
To: Stapleton Roy From: Philip Hughes
n.d.
(b)(1)
S
Memorandum
Re: Request for Report (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Date Closed:
11/18/2014
OA/ID Number:
CF00302-001
FOIA/SYS Case #:
2015-0017-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act |44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
13 JULY 1989
UNCLASSIFIED
RECORD ID: 8901617
NSC/S PROFILE
RECEIVED: 13 MAR 89, 12
TO: SCOWCROFT
FROM: MCCURDY, DAVE
DOC DATE: 10 MAR 89
SOURCE REF:
KEYWORDS: EL SALVADOR
NCO
PERSONS: BILBRAY, JAMES H
CHRON FILE
SUBJECT: TRIP RPT / MCCURDY TO EL SALVADOR
ACTION: PREPARE MEMO FOR SCOWCROFT
DUE DATE: 16 MAR 89
STATUS: S
STAFF OFFICER: PASTORINO
LOGREF:
FILES: WH
NSCIF:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
PASTORINO
LAMPLEY
WORKING
Paulle
COMMENTS: No response necessary
Downst hfalth 7/12/89
DISPATCHED BY
DATE
BY HAND W/ATTCH
OPENED BY: NSJEC
CLOSED BY:
DOC 1 OF 1
UNCLASSIFIED
I-
stoff for
ANTHONY C. BELENSON, CALIFORNIA, CHAIRMAN
DAVE McCURDY. OKLAHOMA
ROBERT W. KASTENMEIER, WISCONSIN
BS reply
ROOM H-405, U.S. CAPITOL
(202) 225-4121
ROBERT A ROE, NEW JERSEY
THOMAS K. LATIMER, STAFF DIRECTOR
MATTHEW F. MCHUGH, NEW YORK
MICHAEL J. O'NEIL CHIEF COUNSEL
BERNARD J. OWYER. NEW JERSEY
U.S. HOUSE OF REPRESENTATIVES
THOMAS R SMEETON. ASSOCIATE COUNSEL
CHARLES WILSON. TEXAS
BARBARA B. KENNELLY, CONNECTICUT
PERMANENT SELECT COMMITTEE
DAN GLICKMAN, KANSAS
NICHOLAS MAVROULES. MASSACHUSETTS
ON INTELLIGENCE
1617
BILL RICHARDSON, NEW MEXICO
STEPHEN J. SOLARZ. NEW YORK
WASHINGTON, DC 20515-6415
HENRY J. HYDE, ILLINOIS
DICK CHENEY, WYOMING
808 LIVINGSTON, LOUISIANA
BUD SHUSTER, PENNSYLVANIA
LARRY COMBEST, TEXAS
DOUG BEREUTER NEBRASKA
JOHN G. ROWLAND. CONNECTICUT
MAR 1 J 1989
THOMAS S. FOLEY, WASHINGTON, EX OFFICIO
ROBERT H. MICHEL, ILLINOIS, EX OFFICIO
March 7, 1989
Honorable Brent Scowcroft
Assistant to the President for
National Security Affairs
The White House
Washington, D. C. 20500
Dear General Scowcroft:
I recently completed a four day visit (February 13-16, 1989) to El
Salvador accompanied by Congressman Jim Bilbray (D. Nev.), a member of the
Armed Services Committee. Knowing of your interest, I am enclosing a copy of
the trip report which is unclassified. In addition to the meetings described,
I visited Colonel Vargas at the 3rd Brigade in San Miguel and met with our
intelligence officials.
The dynamic of El Salvador is changing daily out the discussions that were
conducted with Embassy officials, Salvadoran government and political leaders,
as well as human rights and election officials, provide a good foundation upon
which to understand future policy and intelligence initiatives.
Notwithstanding what happens in the election or in the developing peace
process, there will be a continuing need to work together to maintain a
bipartisan foreign policy toward El Salvador.
There is more here than you want to read but I trust you will find parts
of it useful.
Dave DAVE McCURDY
Sincerely,
Chairman, Subcommittee on
Oversight and Evaluation
Enclosure
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
07. Report
Trip Report - El Salvador, February 13-16, 1989 (50 pp.)
2/89
(b)(1)
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Date Closed:
11/18/2014
OA/ID Number:
CF00302-001
FOIA/SYS Case #:
2015-0017-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRAJ
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRAJ
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM. Removed as a personal record misfile.
NATIONAL SECURITY COUNCIL
Breakfast This 11/11
- 7 walker & Ct Merino
smilardy t doms
basic Thrust
Barly Byron
5 please w/damr
ssypt for just
talk off / 660 D FAA 0/1961
ant many to for potice
and - publit forces
ES $14m. . MAP for police example strff rm of
lost 2 demonstration years 9/88 m which police
were violent very profisional
WAIVER ABOUT to /a pse
- no move money
THE WASHINGTON POST
Dave McCurdy
Help for El Salvador-With Conditions
When Alfredo Cristiani, El Salva-
This country never had a free election
most welcome change on the Salva-
The performance of the military still
ness community to join in a campaign
dor's new president-elect, arrives
until 1982; it has had five since then.
doran left. Guillermo Ungo and Ruben
leaves much room for improvement,
against human rights abuses and raw
here today he will find a mood of
An estimated 56 percent of the eligi-
Zamora, who eight years ago were
both in fighting the guerrillas and in
economic exploitation. El Salvador's
pessimism and foreboding on Capitol
ble voters went to the polls on March
driven by repression into an alliance
respecting human rights. But even Ma-
hard-working people are more likely
Hill. After eight years and more than
19, compared with the bare 50 per-
with the Marxist guerrillas, came
ria Julia Hernandez, a staunch critic of
to yield profits to entrepreneurs who
$3 billion in U.S. aid, the democratic
cent of those eligible who voted in our
home to work openly in Ungo's presi-
the Salvadoran military who heads the
lead them rather than gouge them.
experiment in El Salvador yielded a
own presidential election last Novem-
dential campaign. As the campaign
Catholic Church's human rights group,
Lawlessness breeds economic as well
victory for his right-wing Arena par-
ber. Given the circumstances, the
unfolded, both the freedom they expe-
concedes that the deaths of civilians are
as political instability: members of the
ty. In response, veterans of past poli-
turnout was impressive: the FMLN
rienced and the thuggish conduct of
today usually the responsibility of rogue
death squads have at times even
cy wars in Congress have been gird-
guerrillas shut down transportation
the FMLN created a growing dis-
or panicked subordinates. Those in
waged kidnaping and extortion cam-
ing for another battle. Just as it seems
and threatened to shoot voters on
tance between these democrats of the
command may cover up afterward-
paigns against the business elite.
that we may be putting our long
election day.
left and the hardened totalitarians.
which is unconscionable-but at least
conflict over Nicaragua behind us,
Yes, Roberto d'Aubuisson, once
This is an achievement to build on.
We should applaud El Salvador's
now they apparently are not giving the
some are preparing for a new fight
thought to have masterminded El Sal-
The growing political isolation of
orders to shoot.
struggle to establish a democratic
over El Salvador.
vador's infamous death squads, is a
the hard left appears to be matched,
All this might suggest to Cristiani a
process, and offer our support to the
This is one scrap we all should
founder and legislative leader of the
contrary to popular wisdom, by its
way out for El Salvador. The center-
new government. There is no contra-
avoid. For if the election outcome in
Arena party. This is indeed some-
declining military capability. In the
piece of the government's strategy to
diction in taking this positive stance
El Salvador does provide some cause
thing to worry about. We have always
early 1980s, there were some 12,000
end the civil war should be a political
while also setting firm but responsible
for concern, it also should give us
argued, however, that Salvadorans
guerrillas in the field. Now their num-
effort to undermine the violent left. A
conditions, on the use of our aid,
some satisfaction and cause for hope.
should turn from bullets to the ballot
bers have been cut in half, and they
military component is also necessary.
especially as these conditions help
It has created new possibilities for
box. Perhaps we never expected our
are increasingly young and less deep-
However, more brute firepower-
strengthen democracy and human
strengthening Salvadoran democracy
success would be quite so-shall we
ly committed. On the other hand, the
such as the carpet bombing dreamed
rights in El Salvador.
and demonstrating a firmness of U.S.
say?-extreme. If some are leery
Salvadoran military seems now to un-
of by some Air Force officers-can
purpose-purpose we need to reas-
about claiming this success, they
derstand and appreciate the value of
The writer, a Democratic
only make things worse. Instead, the
sert in a year that will be crucial for
should at least wait to see how much
popular support. Defense Minister
Salvadoran military needs better in-
representative from Oklahoma and
all of Central America.
influence d'Aubuisson really has, and
Carlos Vides Casanova recently told
telligence, better communications and
a member of the House rmed
In a country with El Salvador's
how it is exercised, before they an-
me, "I used to think: first the war,
more effective field tactics.
Services and Intelligence
history, democracy is not something
nounce our failure.
then elections. Now I know different-
Just as important, Cristiani must
committees, recently traveled to El
to be flicked on by remote control.
This election campaign also saw a
ly: first democracy, then the war."
persuade his supporters in the busi-
Salvador.
Bush Library Photocopy Preservation
THE SECRETARY OF STATE
WASHINGTON
David-
as disgussed.
ow
Dear Mr. McCurdy:
I have just finished reading your very thoughtful op-ed
piece, "Help for El Salvador-With Conditions". Your outspoken
and reasoned defense of the outcome of the presidential
elections in El Salvador not only advances the cause of
democracy in that critical part of the world, but also serves
to promote greater understanding of our foreign policy goals
between our two branches of government.
Your assertion that we and Congress should avoid a "scrap"
over El Salvador could not be more timely. In the words of
President Duarte, "The Christian Democrats lost, but democracy
won". The Salvadoran voters again braved intimidation and
bullets to cast their ballots for the party of their choice in
an election that was universally viewed as honest and fair. We
fully support this process. In our own country where rain on
election day can affect voter turnout, Salvadorans braved a
rain of bullets to exercise the fundamental right of all true
democracies in determining their leaders.
By travelling to El Salvador to observe the campaign and
the democratic process you have shown that you were not content
with being an armchair expert. Through your first-hand
observation of these elections you were witness to the fact
that faith in the democratic process demonstrated in El
Salvador is all the more remarkable given its brief history
there. As you quite aptly point out, the democratic process
has been expanded to include the political allies of the
guerrilla commanders. The FMLN campaign of violence to disrupt
the voting has clearly unmasked their totalitarian
underpinnings and driven the political wing of their alliance
further into the camp of those seeking a- just political
solution to the conflict. It also cast serious doubt on their
sincerity and proposed interest in a negotiated peaceful end to
the conflict.
The task before us now is to maintain a firm bipartisan
commitment to human rights and democratic improvements. For
this we will need to consult and work closely to support the
The Honorable
Dave McCurdy,
House of Representatives.
-2-
vast majority in Salvadoran society who work within
constitutional parameters to bring about a democratic
resolution to the conflict there. I note that you and your
colleagues in both the Senate and the House are scheduled to
meet with Mr. Cristiani during his Washington visit. We need
to transmit an unequivocal message to him that our support to
his country will continue as long as the Government of El
Salvador continues down the path of constitutional government,
enhanced human rights performancé, judicial reform and the
defense of basic civil liberties.
I look forward to hearing, from you after your meeting with Mr.
Cristiani.
Sincerely,
James A. Baker III
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
08. Cable
171437z Mar 89 (12 pp.)
3/17/89
(b)(1)
C
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Chronological Files
WHORM Cat.:
File Location:
July 1, 1989-July 15, 1989 [1]
Date Closed:
11/18/2014
OA/ID Number:
CF00302-001
FOIA/SYS Case #:
2015-0017-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
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(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRAJ
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA)
financial information [(a)(4) of the PRAJ
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRAI
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
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financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as a personal record misfile.
FOR OFFICIAL USE ONLY
CHRON FILE
National Security Council
DATE: 13 Jul 1989
Memorandum for: PACELLI
From:
NSC/S
CREATE DATE: 890327
Subject: TRANSMITTAL OF MEMCON TO STATE
Log #8902064 has been issued to your office
We need the necessary data/copies in order to maintain the
active suspense file or index the item for further reference
and tracking purposes.
Your help is needed. Thanks.
Check as may be appropriate:
Action completed, file attached.
Action still pending, copy attached.
Action transferred to
.
Action sent forward, copy attached.
Cannot
find,
will
continue
to
check
Please Other: return Please to NSC/S. concept Dal path
birily
FOR OFFICIAL USE ONLY
Chron
NATIONAL SECURITY COUNCIL
13-Jul-1989 09:26 EDT
CONFIDENTIAL
MEMORANDUM FOR:
William F. Sittmann
( SITTMANN )
FROM:
David Pacelli
(PACELLI)
SUBJECT:
ABC and 1991 Pan Am Games
from Havana. ABC for a license to broadcast the ready to
Treasury's to us on the Office request of of Foreign Assets Control has its recommendation send
Department It requested a delay, however, to receive 1991 Pan Am Games
position in giving our memo its anyway. position. I agreed, since we would a have memo to from get the State's State
which I did not is not tell yet Treasury that I already have a bootleg copy of State's
grounds for granting fully a coordinated. In the draft, State sees no position,
account. no This would to not a deal if ABC agrees to pay the funds say to that a State would
have objection to domestic political pressures, it will Nevertheless,
in a concession license which would violate our embargo. foreign policy
they did not go through with violate the deal. the embargo and put the onus on fully the Cubans blocked if
of I mentioned the Office this of as a possibility to Treasury, and it sounded ok to
Foreign Assets Control. We'll see how it prospers at the Treasury. Director
I I have understand indicated, that that the State is who memo you is have with to Kimmit. pester. If you want things faster than
CC: Everett E. Briggs
( BRIGGS )
DECLASSIFIED
PER NSC WAIVER, #2021-02
By MC NARA, Date 7/16/21
FOR OFFICIAL USE ONLY
CHRON FILE
National Security Council
DATE: 13 Jul 1989
Memorandum for: PACELLI
From:
NSC/S
CREATE DATE: 890623
Subject: SP RE ARIAS SUMMIT
Log #8904988 has been issued to your office
We need the necessary data/copies in order to maintain the
active suspense file or index the item for further reference
and tracking purposes.
Your help is needed. Thanks.
Check as may be appropriate:
Action completed, file attached.
Action still pending, copy attached.
Action transferred to
Action sent forward, copy attached.
Cannot find, will continue to check.
Other: Please cancel Before it was completed,
we received # 5337 - a memo to Scoweroft
Please return
from to NSC/S. State which will substitute for
# 4988.
- #5337 still being waked on
David Daull
FOR OFFICIAL USE ONLY
7/13/89
UNCLASSIFIED
RECORD ID: 8904645
NSC/S PROFILE
RECEIVED: 14 JUN 89 17
TO: HUGHES
FROM: JUKES, J
DOC DATE: 13 JUN 89
SOURCE REF:
KEYWORDS: PUERTO RICO
LEGISLATIVE REFERRAL
PERSONS:
SUBJECT: REVISED VERSIONS / S-711 & S-712 / RE PUERTO RICO POLITICAL STATUS
ACTION: ANY ACTION NECESSARY
DUE DATE: 17 JUN 89
STATUS: S
STAFF OFFICER: PACELLI
LOGREF:
FILES: WH
NSCIF:
CODES:
DOCUMENTDISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
PACELLI
LAMPLEY
ROSTOW
CHRON FILE
COMMENTS: No ACTION NECESSARY ON A 4645
Action THROUGH FOLLOW-UP LEGISLATIVE
REFERRAL MMORANDUMS FROM OMB
DISPATCHED BY
DATE
BY HAND W/ATTCH
OPENED BY: NSWJR
CLOSED BY:
Darista Paulh OF
1
UNCLASSIFIED
7/13/89
4645
OFFICE . STATE 8 UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
June 13, 1989
TO:
SEE ATTACHED DISTRIBUTION LIST
SUBJECT: REVISED version of S. 711 and S. 712, relating to the
political status of Puerto Rico. (Also attached is
S. 710, which has not been revised.)
A. White House-chaired interagency working group on Puerto Rico
has been asked to consider the above-referenced bills. Members
have been asked to provide analyses of the subject bills directly
to the working group at its next meeting (expected in a few
days). Your agencies' members of this group are shown in the
attached list. Consequently, copies of these bills should be
forwarded to your working group member as soon as possible.
This memorandum supersedes the guidance contained in our two
previous legislative referral memoranda on these bills, dated
April 20, 1989 and May 25, 1989.
Direct your questions to Branden Blum (395-3454), the legislative
attorney in this office:
James Jame J. Jukes for
Assistant Director for
Legislative Reference
Enclosures
CC: C. Boyden Gray/Rob Portman
Ann DeBlasi
Bob Damus
Donna Rivelli
Sara Brentlinger
Tracy Davis
Bill Hannon
Barry Clendenin
Ron Ketter
Bob Rideout
Arnold Schwartz
Cora Beebe
DISTRIBUTION LIST
AGENCY
CONTACT
PHONE NUMBER
Department of Agriculture (201)
Marvin Shapiro
382-1516
Department of Commerce (204)
Mike Levitt
377-3151
Department of Defense (206)
Sam Brick
697-1305
Department of Health
and Human Services (214)
Frances White
245-7760
Department of Housing
and Urban Development (215)
Ed Murphy
755-7093
Department of the Interior (216)
Ralph Hill
343-4547
Department of Justice (217)
Jack Perkins
633-2113
Department of Labor (218)
Seth Zinman
523-8201
Department of State (225)
Bronwyn Bachrach
647-4463
Department of Transportation (226)
Tom Herlihy
366-4687
Department of the Treasury (228)
Carole Toth
566-8523
United States
Trade Representative (223)
Joshua Bolten
395-3150
General Services Administration (237) Al Vicchiolla
523-3956
National Security Council (249)
G. Philip Hughes
456-2224
MEMBERS OF PUERTO RICO WORKING GROUP
Chairman - Andy Card - White House
Department of Agriculture
Ann Chadwick - Acting Assistant Secretary
for Food and Consumer Services
447-7711
Department of Commerce
Richard L. Johnston - Acting Assistant Secretary for
International Economic Policy
377-5444
Department of Defense
Brig. General Michael Byron - Regional Director for
Interamerican Affairs, Office of International Security Affairs
697-4946
Department of Health and Human Services
Arnold Tompkins - Assistant Secretary, Planning Evaluation
245-1858
Department of Housing and Urban Development
Assistant Secretary for Fair Housing
755-7252
Department of the Interior
Ralph Tarr, Solicitor
343-4423
Department of Justice
Ronald Noble - Special Counsel to the Assistant
Attorney General - Criminal Division
633-3674
National Security Council
David Pacelli
Office of Management and Budget
Janet Hale
2
Department of State
David Zweifel - Director for Caribbean Affairs
647-9210/647-3210
Department of Transportation
Jeff Shane - Assistant Secretary for Policy
and International Affairs
Department of the Treasury
Robert Gillingham - Acting Deputy Assistant Secretary
for Economic Policy
566-2551
Office of the United States Trade Representative
Melissa Coyle, Director for Caribbean Affairs
White House
Gordon Wheeler - Legislative Affairs
Lanny Griffith - Intergovernmental Affairs
Emily Mead - Office of Policy Development
II
1018T CONGRESS
1ST SESSION
S.710
To provide for a referendum on the political status of Puerto Rico.
IN THE SENATE OF THE UNITED STATES
APRIL 5 (legislative day, JANUARY 3), 1989
Mr. JOHNSTON (for himself and Mr. McCLURE) introduced the following bill;
which was read twice and referred to the Committee on Energy and Natural
Resources
A BILL
To provide for a referendum on the political status of Puerto
Rico.
1
Be it enacted by the Senate and House of Representa-
2 lives of the United States of America in Congress assembled,
3 That this Act may be referred to as the
4 SEC. 2. REFERENDUM.
5
(a) IN GENERAL.-An islandwide referendum shall be
6 held in Puerto Rico in which qualified voters of the Common-
7 wealth of Puerto Rico shall be presented a choice of selecting
8 and negotiating one of three status options for Puerto Rico as
9 follows:
2
3
1
(1) Statehood with full powers and cultural
1 SEC. 3. NEGOTIATIONS TO DEVELOP LEGISLATION BASED ON
2
identity duly recognized;
2
REFERENDUM.
3
(2) Independence with full economic guarantees;
3
(a) NEGOTIATIONS.-Following certification by the
4
or
4 Governor as provided in section 2(c), then the process, in-
5
(3) Enhanced Commonwealth in permanent union.
5 volving representatives of the principal political party repre-
6
(b) DATE OF REFERENDUM.-The first referendum
6 senting the status option selected, and in full consultation
7 shall occur on
, 1991.
7 with the other two principal political parties, shall begin to
8
(c) RETURNS OF REFERENDUM.-The returns of the
8 develop implementing legislation in consultation with the
9 referendum held under this Act shall be made to the Gover-
9 Committee on Energy and Natural Resources of the United
10 nor of Puerto Rico, who shall cause them to be canvassed in
10 States Senate and the appropriate committees of jurisdiction
11 the manner provided by law for the canvass of votes cast in
11 in the United States House of Representatives. Such legisla-
12 general elections in the Commonwealth of Puerto Rico. If
12 tion shall, upon enactment, authorize a further referendum of
13 there is, not a majority in favor of one of the three options,
18 the people of Puerto Rico to approve or disapprove the se-
14 then there shall be, on
, 1991, a runoff refer-
14 lected status as defined in the legislation. A change of status
15 endum between the two status options which had received
15 shall not be effective unless or until approved in such a refer-
16 the largest number of votes. The Governor shall certify to the
16 endum.
17 President and to the Congress of the United States that deci-
17
(b) TIME LIMIT.-The second referendum to approve or
18 sion of the people of Puerto Rico which received a majority
18 disapprove the selected status as defined in the legislation
19 of the votes cast.
19 developed under this section shall occur no later than the end
20
(d) APPLICABLE ELECTION LAWS.-The election laws
20 of the Congress which is in session on the fourth anniversary
21 of the Commonwealth of Puerto Rico shall apply to the refer-
21 of the date of the Governor's certification provided for
22 endum held under this Act.
22 under section 2(c), or as may be otherwise provided in such
23 legislation.
8 710 18
B 710 IS
II
1018T CONGRESS
18T SESSION
S.711
To provide for a referendum on the political status of Puerto Rico.
IN THE SENATE OF THE UNITED STATES
APRIL 5 (legislative day, JANUARY 3), 1989
Mr. JOHNSTON (for himself, Mr. McCLuss, and Mr. SIMON) introduced the fol-
lowing bill; which was read twice and referred to the Committee on Energy
and Natural Resources
A BILL
To provide for a referendum on the political status of Puerto
Rico.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That-
4
(1) the United States of America recognizes the
5
principles of international law with respect to its rela-
6
tionship with Puerto Rico; and
7
(2) the United States is committed to a process of
8
consultation and negotiation with the people of Puerto
9
Rico leading to a referendum on the issue of political
10
status to be conducted in a fair and equitable manner.
(Star Print)
2
3
1 SEC. 2. REFERENDUM.
1 would provide for a smooth process of adjustment from the
2
(a) IN GENERAL.-An islandwide referendum shall be
2 tax structure of the territorial status to the Federal fiscal
3 held in Puerto Rico in which qualified voters of the Common-
3 system.
4 wealth of Puerto Rico shall be presented a choice of negotiat-.
4
The Commonwealth of Puerto Rico would be assured of
5 ing one of three status options for Puerto Rico as follows:
5 its reserved state right under the Constitution to continue to
6
(1) Statehood;
6 maintain both Spanish and English as its official languages,
7
(2) Independence; or
7 as well as of its right to preserve and enhance its particular
8
(3) Commonwealth.
8 cultural characteristics.
9 For the purpose of these negotiations it is understood that the
9
Statehood creates the only permanent union with the
10 initial position of the people of the Commonwealth of Puerto
10 United States that is consistent with the "more perfect
11 Rico and of the Congress of the United States is that the
11 union" of equal states established by the United States
12 terms shall be as follows;
12 Constitution.
13
(b) INITIAL DEFINITIONS.-
18
Statehood would entail fundamental political and eco-
14
(1) Statehood: Upon admission as a state, Puerto Rico
14 nomic betterment for the Commonwealth of Puerto Rico.
15 would cease being a territory of the United States. The Com-
15
Statehood means economic self-reliance and social jus-
16 monwealth of Puerto Rico would be admitted as a sovereign
16 tice, including parity for its residents in those aspects of fed-
17 State of the Union, with its current Constitution, on an equal
17 eral legislation that cover the residents of the several states
18 footing and in true permanent union with the other fifty
18 at the time of admission and in the future.
19 States.
19
Statehood means political equality, and specifically, the
20
The new State of Puerto Rico shall be known as The
20 right to participate in the process of election of the President
21 Commonwealth of Puerto Rico. In Spanish it shall be known
21 and Vice-President of the United States as well as the right
22 as "Estado Soberano de Puerto Rico".
22 to elect two (2) U.S. Senators and the corresponding number
23
Admission to the Union has historically been a flexible
23 of members of the U.S. House of Representatives.
24 and varied process which has been adapted to the individual
24
Statehood means that all benefits and protections of the
25 circumstances of each new state. Congress, which has the
25 United States Constitution would be fully bestowed on the
26 constitutional power to facilitate the admission of new States,
8 711 1818
8 711 ISIS
4
5
1 People of the Commonwealth of Puerto Rico together with
1
(B) The following shall constitute the Principles under
2 the guarantee of full protection by the Federal judicial
2 which the Congress shall recognize Puerto Rico's independ-
3 system.
3 ence in accordance with the provisions of section 3:
4
Statehood entails the immediate full extension of federal
4
(I) HUMAN BIGHTS. The people of Puerto Rico
5 entitlements and legislation providing parity for the residents
5
shall, through a Constitutional Convention, establish a
6 of Puerto Rico in all Federal programs. The Commonwealth
6
republican form of government which shall guarantee
7 will assume all responsibilities of a State of the Union.
7
the full protection of fundamental human rights.
8
Statehood is a political formula recognized by the inter-
8
(II) CITIZENSHIP. The Republic of Puerto Rico
9 national community through Resolution 1541 (XV) of the
9
shall establish its own citizenship, and there shall be
10 General Assembly of the United Nations and through Resolu-
10
agreements between the United States and the Repub-
11 tion 1469 (XIV) of that body, which was adopted upon the
11
lic of Puerto Rico to ensure the compatibility between
12 admission of the new States of Alaska and Hawaii.
12
the citizenships of both nations.
13
Statehood embodies the highest degree of autonomy and
13
(III) DEFENSE. The United States and the Re-
14 sovereignty in true permanent union with the several States.
14
public of Puerto Rico shall enter into agreements that
15
(2) INDEPENDENOE: (A) In order to ensure the legiti-
15
will make possible the ultimate demilitarization of the
16 mate interests of Puerto Rico and the United States, to
16
Republic of Puerto Rico.
17 strengthen bonds of friendship and cooperation, and to pro-
17
(IV) TRADE. The United States shall allow free
18 vide for equitable economic relations between both nations,
18
access into its market to all imports of goods and serv-
19 the United States shall recognize the independence of Puerto
19
ices originating in the Republic of Puerto Rico for a
20 Rico in accordance with the principles set forth below, thus
20
period of twenty years after the proclamation of inde-
21 guaranteeing the necessary conditions for a rational and mu-
21
pendence.
22 tually advantageous transition before and after the proclama-
22
(V) TAXATION. The United States shall guaran-
23 tion of Puerto Rico's independence.
23
tee that the tax credit currently allowed under section
24
936 of the Internal Revenue Code shall remain in full
!
25
effect upon the proclamation of Puerto Rico's inde-
B 711 1818
8 711 ISIS
6
7
1
pendence and during the fifteen years immediately
1
ments to individuals, and to the Government of Puerto
2
thereafter.
2
Rico, its instrumentalities and municipalities, at cur-
3
(VI) PUBLIC DEBT. The Republic of Puerto Rico
3
rent-level funding in the form of block grants for the
4
shall assume the outstanding debts and obligations of
4
discretionary use of the government of the Republic of
5
the Commonwealth of Puerto Rico, its instrumental-
5
Puerto Rico for ten years after the proclamation of in-
6
ities and municipalities, and the United States shall for
6
dependence, and thereafter for ten additional years on
7
a period of twenty-five years maintain the income tax
7
a decreasing basis.
8
exemption currently provided by law on interest pay-
8
(IX) CURRENOY. The Republic of Puerto Rico
9
ments derived from debts and obligations incurred into
9
may establish its own monetary system, provided that
10
before or after the proclamation of independence.
10
during the ten years following the proclamation of in-
11
(VII) VESTED BIGHTS. The United States shall
11
dependence both the United States dollar and Puerto
12
guarantee all vested rights and benefits accruing to
12
Rican currency shall be accepted as legal tender in all
13
residents of Puerto Rico under the laws of the United
13
transactions in Puerto Rico.
14
States from past services or contributions, such as ben-
14
(X) FRIENDSHIP AND COOPERATION. To ensure
15
efits for Veterans of the Armed Forces of the United
15
the effectiveness of the purposes of this Act after the
16
States and their relatives, benefits for retired govern-
16
proclamation of the independence of Puerto Rico, the
17
ment employees, and old age and/or disability pay-
17
United States and the Republic of Puerto Rico shall
18
ments under the Social Security Act, until their extine-
18
set forth the details of their bilateral relations in a
19
tion under the applicable laws of the United States;
19
Treaty of Friendship and Cooperation.
20
and contributions made to the Social Security System
20
(3) Enhanced Commonwealth:
21
by those not yet eligible for benefits at the time of the
21
SUBPART 1. STATEMENT OF PURPOSES.
22
proclamation of independence shall be transferred for
22
In 1952 the Congress of the United States, fully recog-
23
administration by the Republic of Puerto Rico.
23 nizing the principle of government by consent, and the
24
(VIII) ECONOMIC ASSISTANCE. The United
24 People of Puerto Rico, in the exercise of their right of self-
25
States shall guarantee the continuation of transfer pay-
25 determination, entered upon a compact which established a
8 711 1818
B 711 1818
8
9
1 Commonwealth relationship between Puerto Rico and the
1
SUBPART 2. REFERENDUM PROPOSITION:
2 United States.
2
COMMONWEALTH
3
Under the compact the People of Puerto Rico adopted
8
The referendum proposition regarding Commonwealth,
4 in their own sovereign right their own Constitution and
4 to be presented to, and voted upon, by the People of Puerto
5 formed an autonomous political community in permanent
5 Rico shall be as follows:
6 union with the United States of America based on the irre-
6
"The Commonwealth association with the United
7 versible bond of American citizenship.
7
States shall be enhanced to enable the People of
8
In 1953 the General Assembly of the United Nations
8
Puerto Rico to accelerate their economic and social de-
9 recognized the creation of the Commonwealth and removed
9
velopment and attain maximum cultural and political
10 Puerto Rico from the list of nonself-governing territories.
10
autonomy within permanent union with the United
11
This association has enabled the People of Puerto Rico
11
States based on the irreversible bond of American citi-
12 to advance their economic and social development and to pre-
12
zenship, a common defense, a common market, and a
13 serve their distinct historical heritage and cultural person-
13
common currency.".
14 ality.
14
The proposition will appear in the ballot, in Spanish, as
15
As inherent in all political relationships freely entered
15 follows:
16 upon, it was based on the understanding that it would evolve
16
"El Estado Libre Asociado se fortalecerá para acelerar
17 and develop within its particular political nature upon mutu-
17
el desarrollo económico y social y alcanzar la máxima
18 ally agreeable terms.
18
autonomia cultural y politica del pueblo de Puerto Rico
19
It is the purpose of section 2(b)(3) to provide for the
19
on su unión permanente con los Estados Unidos sobre
20 enhancement of the Commonwealth relationship by enlarging
20
los pilares de común defensa, común mercado, común
21 the scope of self-government of the Puerto Rican people upon
21
moneda, y el vinculo indisoluble de la ciudadania amer-
22 the approval of a proposition to that effect by a majority of
22
icana.".
23 the eligible voters of the Commonwealth of Puerto Rico.
23
SUBPART 3. PRINCIPLES OF COMMONWEALTH
24
When the Governor certifies to the President and to the
25 Congress of the United States in accordance with section 2(d)
26 that the decision of the People of Puerto Rico which received
S 711 IS1S-2
8 711 1818
11
10
1
lateral nature of the relationship between the Common-
1 the majority of the votes cast favors the proposition of on-
2
wealth of Puerto Rico and the United States.".
2 hanced Commonwealth in permanent union with the United
3
SUBPART 4. IMPLEMENTATION OF FEDERAL
3 States, as set forth in subpart 2, above, section 1 of the
4
POLICY
4 Puerto Rico Federal Relations Act, 39 Stat. 954, as amend-
5
When the new federal policy is established in accord-
5 ed, 48 U.S.C. section 731, shall be repealed, and replaced by
6 ance with subpart 3, then section 9 of the Federal Relations
6 the following:
7 Act, 39 Stat. 954, as amended, 48 U.S.C. section 734, is
7
"(1) The provisions of this Act shall apply to the
8 amended by inserting at the beginning thereof the term "(a)"
8
Commonwealth of Puerto Rico, an autonomous body
9 and by adding at the end thereof the following:
9
politic joined in permanent union with the United
10
"(b) A federal statutory law, or provision of such law, is
10
States on the basis of common citizenship, common de-
11 locally inapplicable unless it is consistent with the policy es-
11
fense, common market and common currency.
12 tablished under subpart 3 and unless such federal statutory
12
"(2) The policy of the United States shall be to
13 law has proper regard for the economic, cultural, ecological,
13
enhance the Commonwealth relationship enjoyed by
14 geographic, demographic and other local conditions of the
14
the Commonwealth of Puerto Rico and the United
15 Commonwealth of Puerto Rico. This subsection shall not
15
States to enable the People of Puerto Rico to acceler-
16 apply to-
16
ate their economic and social development and attain
17
"(i) any Federal statutory law in which the Con-
17
maximum cultural and political autonomy within per-
18
gress makes a specific finding that there is an overrid-
18
manent union with the United States, to secure more
19
ing national interest that such law should apply to the
19
equitable participation for the People of the Common-
20
Commonwealth of Puerto Rico, or
20
wealth of Puerto Rico in all federal programs that pro-
21
"(ii) any Federal statutory law, or provision there-
21
vide grants or services to citizens of the United States
22
of, establishing directly or indirectly grants and/or
22
as individuals, to secure increased participation by the
23
services to citizens of the United States as individuals,
23
People of Puerto Rico in U.S. governmental decisions
24
or
24
affecting them, to safeguard the distinct cultural identi-
25
ty of the People of Puerto Rico, and to protect the bi-
8 711 ISIS
B 711 1818
12
13
1 such Representatives shall be in addition to the membership
1 extent, and with like right of appellate review, as if such
2 of the House of Representatives as now prescribed by law.
2 State had been created and such State courts had been estab-
3
LAWS IN EFFECT
9 lished prior to the accrual of such causes of action or the
4
SEC. 9. Upon admission of the Commonwealth of
4 commission of such offenses. The admission of the State shall
5 Puerto Rico into the Union, all of the territorial laws then in
5 effect no change in the procedural or substantive laws gov-
6 force in the Commonwealth of Puerto Rico shall be and con-
6 erning causes of action and criminal offenses which shall have
7 tinue in force and effect throughout the State, until amended,
7 arisen or been committed, and any such criminal offenses as
8 modified or repealed by the Commonwealth. All of the laws
8 shall have been committed against the laws of the Common-
9 of the United States shall have the same force and effect
9 wealth of Puerto Rico, shall be tried and punished by the
10 within the State as elsewhere in the United States.
10 appropriate courts of the State, and any such criminal of-
11
CONTINUATION OF SUITS
11 fenses as shall been committed against the laws of the United
12
SEC. 10. (a) No writ, action, indictment, cause, or pro-
12 States shall be tried and punished in the United States Dis-
13 ceeding pending in any court of the Commonwealth of Puerto
13 trict Court for the District of Puerto Rico.
14 Rico, shall abate by reason of the admission of the Common-
14
APPEALS
15 wealth of Puerto Rico into the Union, but shall proceed
15
SEO. 11. Parties shall have the same rights of judicial
16 within such appropriate State courts as are now established
16 review of final decisions of the United States District Court
17 under the Constitution of the Commonwealth, or shall contin-
17 for the District of Puerto Rico or the Supreme Court of the
18 us in the United States District Court for the District of
18 Commonwealth of Puerto Rico, in any case finally decided
19 Puerto Rico, as the nature of the case may require.
19 prior to the admission of the State of Puerto Rico into the
20
(b) All civil causes of action and all criminal offenses,
20 Union, whether or not an appeal therefrom shall have been
21 which shall have arisen or been committed prior to the ad-
21 perfected prior to such admission. The United States Court of
22 mission of the Commonwealth, but as to which no writ,
22 Appeals for the First Circuit and the Supreme Court of the
23 action, indictment, or proceeding shall be pending at the date
23 United States, shall have the same jurisdiction in such cases
24 of such admission, shall be subject to prosecution in the ap-
24 as by law provided prior to the admission of the State into
25 propiate State courts or in the United States District Court
25 the Union. Any mandate issued subsequent to the admission
26 for the District of Puerto Rico in like manner, to the same
26 of the State, shall be to the United States District Court for
8 712 1818
8 712 ISIS
14
15
1 the District of Puerto Rico or a court of the State, as appro-
1 committed within the State but outside of such tracts or par-
2 priate. Parties shall have the same rights of appeal from and
2 cels of land.
3 appellate review of all orders, judgments, and decrees of the
3
(2) The reservation of authority in the United States for
4 United States District Court for the District of Puerto Rico
4 the exercise by the Congress of the United States of the
5 and of the Supreme Court of Puerto Rico, in any case pend-
5 power of exclusive legislation over such lands shall not oper-
6 ing at the time of admission of the State into the Union, and
6 ate to prevent such lands from being a part of the Common-
7 the Supreme Court of the Commonwealth of Puerto Rico and
7 wealth of Puerto Rico, or to prevent the State from exercis-
8 the Supreme Court of the United States shall have the same
8 ing over or upon such lands, concurrently with the Federal
9 jurisdiction therein, as by law provided in any case arising
9 Government, any jurisdiction which it would have in the ab-
10 subsequent to the admission of the State into the Union.
10 sence of such reservation of authority and which is consistent
11
MILITARY LANDS
11 with the laws hereafter enacted by the Congress pursuant to
12
Sec. 12. (a) Subject to the subsection (b) and notwith-
12 such reservation or authority.
13 standing the admission of the Commonwealth of Puerto Rico
13
(3) The power of exclusive legislation shall vest and
14 into the Union, authority is reserved in the United States for
14 remain in the United States only 80 long as the particular
15 the exercise by the Congress of the United States of the
15 tract or parcel of land involved is controlled or owned by the
16 power of exclusive legislation, as provided by article I, sec-
16 United States and used for defense on Coast Guard purposes,
17 tion 8, clause 17, of the Constitution of the United States, in
17 except that the United States shall continue to have sole and
18 all cases whatsoever over such tracts or parcels of lands as,
18 exclusive jurisdiction over such military installations as have
19 immediately prior to the admission of the State, are con-
19 been or may be determined to be critical areas as designated
20 trolled or owned by the United States and held for defense or
20 by the President of the United States or the Secretary of
21 Coast Guard purposes.
21 Defense.
22
(b)(1) The Commonwealth of Puerto Rico shall always
22
UNITED STATES NATIONALITY
23 have the right to serve civil or criminal process within such
23
SEC. 13. No provision of this Act shall operate to confer
24 tracts or parcels of land in suits or prosecutions for or on
24 United States nationality, to terminate nationality lawfully
25 account of rights acquired, obligations incurred, or crimes
25 acquired, or to restore nationality terminated or lost under
8 712 1818
8 712 1818
16
17
1 any law of the United States or under any treaty to which
1
(b) Provision shall be made by Congress 80 that
2 the United States is or was a party.
2
economic and fiscal exceptions of the Internal Revenue
3
REPEAL AND AMENDMENT OF INCONSISTENT LAWS
3
Code, already granted, such as those allowed under
4
SEC. 14. All Acts or parts of Acts in conflict with the
4
section 936 of said code, shall remain in full effect for
5 provisions of this Act, whether passed by the Legislature of
5
years and will be smoothly and gradually phased
6 the Commonwealth of Puerto Rico or by Congress, are
6
out thereafter, in such a way as to eliminate the preva-
7 hereby repealed or amended to conform with the provisions of
7
lent uncertainty which impairs an orderly planning and
8 this Act.
8
which impedes the fulfillment of the job creation re-
9
NATIONAL FEDERAL LANDS AREA
9
quirements for such credit, thus promoting investments
10
SEC. 15. (a) The Federal Lands reserved for the United
10
and higher rate of employment, which will in turn
11 States Government referred to in section 4 are those now
11
reduce governmental and individual dependence while
12 held by the Federal Government.
12
enhancing the economy of the State and the fiscal
13
ECONOMIC ADJUSTMENT FROM TERRITORY TO STATE
13
soundness of its government.
14
SEC. 16. Congress adopts the following economic provi-
14
(c) Pursuant to Congress, powers under the Con-
15 sions to expedite the adjustment of the Commonwealth of
15
stitution, an omnibus act with multiple provisions shall
16 Puerto Rico from the tax structure of the territory to the
16
be enacted to ensure that the people of Puerto Rico
17 fiscal and economic system of the State.
17
attain equal social and economic opportunities with the
18
(a) Provisions of the Internal Revenue Code con-
18
residents of the several States. Said omnibus act shall
19
cerning Federal Income Taxes shall immediately apply
19
also provide for measures necessary to assure appropri-
20
to Puerto Rico, provided that the proceeds of said
20
ate continuity in the treatment given to Puerto Rico as
21
taxes shall be transferred to the Treasury of Puerto
21
a principal coffee producer and in the treatment of al-
22
Rico in an amount to be diminished by
percent of
22
cohol excise taxes; and shall also continue to provide
23
the monies collected each year for a
year period.
23
for the transfer to the Treasury of Puerto Rico, for a
24
Existing income tax laws of the Commonwealth shall
24
period of
years, of the proceeds of Federal cus-
25
stand repealed upon admission of the State.
B 712 IBIB
712 IS1S-3
18
19
1
toms and duties levied on imports coming from foreign
1 provisions of paragraph 1 section 2 of article IV of the Con-
2
sources to Puerto Rico.
2 stitution of the United States.
3
[Detailed economic provisions, addressing the above
3
TITLE II-INDEPENDENCE
4 proposals among others, will be furnished to the committee
4
SUBTITLE 1-STATEMENT OF PURPOSES
5 as soon as final technical work is completed.]
5
First: The United States hereby recognizes that Puerto
6
TERMS AND CONDITIONS
6 Rico is historically, socially and culturally a Latin American
7
SEC. 17. The Commonwealth of Puerto Rico is assured
7 nation which has been under the sovereignty of the United
8 of its reserved State right under the Constitution to continue
8 States since 1898.
9 to maintain both Spanish and English as its official lan-
9
Second: The United States recognizes Puerto Rico's in-
10 guages, as well as of its right to preserve and enhance its
10 alienable right to independence.
11 rich Hispanic cultural heritage. However, all records and
11
Third: In order to best promote Puerto Rico's develop-
12 proceedings of all agencies, departments, offices and courts of
12 ment according to its needs and resources and within the
13 the United States Federal Government operating in Puerto
13 framework of present day interdependence, the United States
14 Rico, shall continue to be conducted and kept in the English
14 recognizes Puerto Rico's sovereignty as a means to provide
15 language as heretofore. The Commonwealth of Puerto Rico's
15 Puerto Rico with the political powers and the flexibility nec-
16 present Official Languages Act, 1 L.P.R.A. 51-55 (Laws of
16 essary to achieve this objective.
17 Puerto Rico, 1902), making Spanish and English official
17
Fourth: In order to insure lasting friendship, equitable
18 State languages is a State prerogative protected by the Con-
18 economic relations, and the gradual elimination of the burden
19 stitution of the United States.
19 which Puerto Rico's extreme economic dependence repre-
20
SEC. 18. The State shall never enact any law restricting
20 sents for both nations, the United States declares its intention
21 or abridging the right of suffrage on account of race, color,
21 to guarantee all necessary conditions for a rational and mutu-
22 previous condition of servitude, or ability to read, write,
22 ally advantageous transition before and after independence.
23 speak, and understand any language sufficiently; and the
23
Fifth: It is the purpose of this title to recognize the inde-
24 rights, privileges and immunities of citizens of the United
24 pendence of Puerto Rico as a sovereign and democratic
25 States shall be respected in Puerto Rico according to the
25 nation, to provide the conditions necessary for an orderly
B 712 1818
8 712 ISIS
20
21
1 transition from the present status to independence, and to
1
(c) The laws of the Commonwealth of Puerto Rico relat-
2 guarantee the legitimate interests of both Puerto Rico and
2 ing to additional voter qualifications and the electoral process
3 the United States.
3 shall apply to this election.
4
SUBTITLE 2-TRANSITION PROCESS PRIOR TO
4
(d) The Constitutional Convention shall meet within
5
PROCLAMATION OF INDEPENDENCE
5 three months of the election of delegates at such time and
6 SEC. 2.1. CONSTITUTIONAL CONVENTION.
6 place as the Legislative Assembly of the Commonwealth of
7
(a) Should the results of the referendum provided for in
7 Puerto Rico shall determine.
8 title I of this Act favor independence as a status alternative
8
(e) The Constitutional Convention shall exercise juris-
9 for Puerto Rico, the Legislative Assembly of the Common-
9 diction over all of the territory of Puerto Rico ceded to the
10 wealth of Puerto Rico shall provide for the election of dele-
10 United States by Spain by virtue of the Treaty of Paris the
11 gates to a Constitutional Convention to formulate and draft a
11 10th day of December 1898.
12 Constitution for the Republic of Puerto Rico. The election of
12 SEC. 2.2. CHARACTER OF THE CONSTITUTION.
13 delegates must by held within six months after the celebra-
13
(a) The Constitutional Convention mandated under the
14 tion of the aforementioned referendum.
14 previous section shall formulate and draft a Constitution 68-
15
(b) Those qualified to vote in the election of delegates to
15 tablishing a republican form of government which shall guar-
16 the Constitutional Convention shall be: (1) all persons born
16 antee the protection of fundamental human rights.
17 and residing in Puerto Rico; (2) all persons residing in Puerto
17
(b) The fundamental human rights guaranteed by the
18 Rico and one of whose parents was born in Puerto Rico; (3)
18 aforementioned Constitution shall include such rights as due
19 all persons who at the time of the adoption of this Act shall
19 process and equal protection under the law, freedom of
20 have resided in Puerto Rico for a period of twenty years or
20 speech, press, assembly, association, and religion, as well as
21 more; and (4) all persons who established their residence in
21 the rights of the accused, and economic, social and cultural
22 Puerto Rico prior to attaining voting age and still reside in
22 rights such as the right to education, adequate nutrition,
23 Puerto Rico; and (5) spouses of all persons included in (1),
23 health services, adequate housing, and work or employment.
24 (2), (3), and (4) above.
8 712 ISIS
8 712 IBIS
22
23
1 SEC. 2.3. RATIFICATION OF THE CONSTITUTION.
1
(c) The aforesaid election shall be held in accordance
2
(a) The Constitution elaborated by the Constitutional
2 with the procedures and requirements established in the Con-
3 Convention shall be sumitted to the people of Puerto Rico for
3 stitution of the Republic of Puerto Rico.
4 its ratification or rejection.
4
(d) The Governor of the Commonwealth of Puerto Rico
5
(b) The Legislative Assembly of the Commonwealth of
5 shall certify the results of the election to the President of the
6 Puerto Rico shall call for a special election for such ratifica-
6 United States.
7 tion or rejection; to be held within three months of the adop-
7 SEC. 2.5. JOINT TRANSITION COMMISSION.
8 tion of the Constitution elaborated by the Constitutional
8
(a) A Joint Transition Commission shall be appointed in
9 Convention.
9 equal numbers by the President of the United States and the
10
(c) The special election providing all qualified voters the
10 Constitutional Convention of Puerto Rico as soon as the fa-
11 opportunity to cast a vote for or against the proposed Conati-
11 vorable results for the independence option in the referendum
12 tution shall be held in the manner prescribed by the Legisla-
12 provided for in title I of this Act are announced.
13 tive Assembly of the Commonwealth of Puerto Rico.
13
(b) The Joint Transition Commission shall be responsi-
14
(d) Those qualified to vote in this election shall be those
14 ble for expediting the orderly transfer of all functions current-
15 possessing the qualifications established in section 2.1 of this
15 ly exercised by the Government of the United States in
16 title.
16 Puerto Rico, or in relation to Puerto Rico; including the
17 SEC. 2.4. ELECTION OF OFFICERS OF THE REPUBLIC.
17 recommendation of appropriate legislation.
18
(a) Within thirty days of the ratification of the Constitu-
18
(c) Any necessary task forces under the aegis of the
19 tion as provided for by section 1.3 of this title, the Governor
19 Joint Transition Commission shall be constituted in the same
20 of the Commonwealth of Puerto Rico shall issue a proclama-
20 manner as the Commission.
21 tion calling for the election of such officers of the Republic of
21
(d) The Government of the Commonwealth of Puerto
22 Puerto Rico as may be required by the ratified Constitution.
22 Rico and the agencies of the Government of the United
23
(b) The election of officers of the Republic shall be held
23 States shall collaborate with the Joint Transition Commis-
24 not later than six months after the date of ratification of the
24 sion and subsequently with the new officers of the Republic
25 Constitution.
5 712 1618
S 712 ISIS
24
25
1 of Puerto Rico, to provide for the orderly transfer of the func-
1 proclamation withdraw and surrender all rights of possession,
2 tions of government.
2 supervision, jurisdiction, control or sovereignty then existing
3
(e) All members representing the Puerto Rican side on
3 and exercised by the United States over the territory and
4 the Joint Transition Commission or on any task force shall be
4 people of Puerto Rico, and shall furthermore recognize on
5 bona-fide supporters of Puerto Rican independence.
5 behalf of the United States of America the independence of
6 SEC. 2.6 RESOLUTION OF CONTROVERSIES PRIOR TO INDE-
6 the Republic of Puerto Rico and the authority of the govern-
7
PENDENCE.
7 ment instituted by the People of Puerto Rico under the Con-
8
(a) From the date of the referendum provided for in title
8 stitution of their own adoption. The proclamation shall state
9 I of this Act, and until the date of proclamation of independ-
9 that the effective date of withdrawal of the sovereignty of the
10 ence, the Supreme Court and all inferior courts of the United
10 United States and recognition of independence shall be the
11 States shall have no jurisdiction over any case or controversy
11 same as the date of the proclamation of independence, as
12 arising from the operation of this Act.
12 provided in subsection (c).
13
(b) Any question arising from the operation of this Act
13
(b) The President of the United States shall forward a
14 shall be referred to the Joint Transition Commission estab-
14 copy of the proclamation issued by him to the presiding offi-
15 lished in section 2.5 for disposition through negotiation.
15 cer of the Constitutional Convention of Puerto Rico within a
16 Should the Commission be unable to reach a negotiated solu-
16 week after signature.
17 tion to a question, it shall submit all points in question to
17
(c) Within one week after receiving the presidential
18 international arbitration.
18 proclamation and with the advice of the officer elected as
19
SUBTITILE 3-PROCLAMATION OF INDEPENDENCE
19 head of state of the Republic, the presiding officer of the
20 SEC. 3.1. PROCLAMATIONS BY THE PRESIDENT OF THE
20 Constitutional Convention shall determine the date in which
21
UNITED STATES AND THE HEAD OF STATE OF
21 the Government of the Republic shall take office, and shall 80
22
THE REPUBLIC OF PUERTO RICO.
22 notify the Governor of the Commonwealth of Puerto Rico
23
(a) Not later than one month after the official certifica-
23 and the President of the United States.
24 tion of the elected officers of the Republic of Puerto Rico
24
(d) Upon taking office, the head of state of the Republic
25 under section 2.4, the President of the United States shall by
25 of Puerto Rico shall immediately issue a proclamation declar-
712 IS1S-4
8 712 ISIS
26
27
1 ing: (1) that Puerto Rico has become a sovereign, independ-
1
the proclamation of independence shall no longer apply
2 ent nation; (2) that the Constitution of the Republic is
2
in the Republic of Puerto Rico; and
3 thenceforth in effect; (9) that the Commonwealth of Puerto
3
(3) all laws and regulations of the Commonwealth
4 Rico and its Government have ceased to exist; and (4) that
4
of Puerto Rico in force immediately before the procla-
5 the Government of the Republic will henceforth exercise its
5
mation of independence shall continue in force and
6 powers and duties under its Constitution.
6
shall be read with such modifications, adaptions, quali-
7
SUBTITLE 4-EFFECTS OF THE PROCLAMATION OF
7
fications and exceptions as may be necessary to bring
8
INDEPENDENCE
8
them into conformity with the Constitution of the Re-
9 SEC. 4.1. ON LEGAL AND CONSTITUTIONAL PROVISIONS.
9
public of Puerto Rico until such time as they shall be
10
(a) Upon the proclamation of independence as provided
10
replaced with the new legislation: Provided, That any
11 in this subtitle, and except as otherwise provided in this title
11
provisions that may be incompatible with the sover-
12 or in any separate agreements hereinafterwards concluded
12
eignty of the Republic of Puerto Rico shall be deemed
13 between the United States and the Republic of Puerto
13
invalid.
14 Rico-
14 SEC. 4.2. ON JUDICIAL PRONOUNCEMENTS.
15
(1) all property, rights and interests which the
15
(a) The Republic of Puerto Rico shall recognize and
16
United States may have acquired over Puerto Rico by
16 give effect to all orders and judgments rendered by United
17
virtue of the Treaty of Paris of 1898, and thereafter by
17 States or Commonwealth courts prior to the proclamation of
18
cession, purchase, or eminent domain, with the excep-
18 independence pursuant to the laws of the United States then
19
tion of such land and other property, rights, or inter-
19 applicable to the Commonwealth of Puerto Rico.
20
ests as may have been sold or otherwise legally dis-
20
(b) All judicial proceedings pending in the courts of the
21
posed of prior to the enactment of this Act, shall vest
21 Commonwealth of Puerto Rico prior to the proclamation of
22
ipso facto on the Republic of Puerto Rico;
22 independence shall be continued in the corresponding courts
23
(2) all laws of the United States applicable to the
23 under the Constitution of the Republic of Puerto Rico.
24
Commonwealth of Puerto Rico immediately prior to
24
(c) Upon the proclamation of independence, the judicial
25 power of the United States shall no longer extend to Puerto
8 712 1818
N 712 1818
28
29
1 Rico. All proceedings pending in the United States District
1
(b) Every person born in Puerto Rico after proclamation
2 Court for the District of Puerto Rico shall be transferred to
2 of independence, and subject to the jurisdiction thereof, shall
3 the corresponding Puerto Rican courts of competence under
3 be a citizen of the Republic of Puerto Rico.
4 the Constitution of the Republic of Puerto Rico for disposi-
4
(c) Every person born in Puerto Rico but not a resident
5 tion in conformity with laws applicable at the time when the
5 thereof on proclamation of independence shall become a citi-
6 controversy in process arose. All proceedings pending in the
6 zen of the Republic of Puerto Rico upon residing for six
7 United States Court of Appeals for the First Circuit, or in the
7 months and taking the oath of allegiance.
8 Supreme Court of the United States, which may have initiat-
8
(d) Every person not born in Puerto Rico before or after
9 ed in the courts of the Commonwealth or in the United
9 proclamation of independence, and residing therein, shall
10 States District Court for the District of Puerto Rico shall
10 become a citizen of the Republic of Puerto Rico if either of
11 continue until their final disposition and shall be submitted to
11 his parents becomes a citizen of the Republic of Puerto Rico
12 the competent authority of the Republic of Puerto Rico for
12 pursuant to subsections (a), (b), and (c).
13 proper execution: Provided, That neither the United States
18
(e) Every person not born in Puerto Rico but married to
14 nor any of its officers is a party, in which case any final
14 a citizen of the Republic of Puerto Rico before or after proc-
15 judgment shall be properly executed by the competent au-
15 lamation of independence shall become a citizen of the Re-
16 thority of the United States.
16 public upon residing in Puerto Rico for six months and taking
17
SUBTITLE 5-TBANSITION ASPECTS SUBBEQUENT TO
17 the oath of allegiance.
18
PROCLAMATION OF INDEPENDENCE
18
(f) All other persons not specified in subsections (a), (b),
19 SEC. 5.1. CITIZENSHIP AND MIGRATION.
19 (c), (d), and (e) but residing in Puerto Rico shall be granted
20
(a) Every person who, having been born in Puerto Rico,
20 citizenship in accordance with the Constitution and laws of
21 is on proclamation of independence a citizen of the United
21 the Republic.
22 States and a resident of Puerto Rico, shall become a citizen
22
(g)(1) Every person who is a citizen of the United States
23 of the Republic of Puerto Rico on that date.
23 and a citizen of the Republic of Puerto Rico in accordance
24 with subsections (a), (b), (c), (d), (e), and (f) shall retain his
25 United States citizenship and all rights, privileges, benefits
8 712 1818
8 712 ISIS
30
31
1 and obligations pertaining thereto in an equal footing with all
1 vote. They shall also be entitled to be naturalized as citizens
2 other United States citizens: Provided, That while residing in
2 of the Republic in accordance with nondiscriminatory laws of
3 Puerto Rico that person shall not be subject under United
3 the Republic.
4 States laws to compulsory military registration and service or
4
(j) Citizens of the Republic of Puerto Rico residing in
5 to any other condition or obligation contrary to the sover-
5 the United States but not citizens thereof shall be entitled to
6 signty of the Republic of Puerto Rico.
6 the fundamental rights and freedoms accorded to all persons
7
(2) Every person specified in subsection (g)(1) shall
7 in the United States but shall not be eligible for political
8 retain his Puerto Rican citizenship and all rights, privileges
8 office and shall not be entitled to vote in the United States.
9 and benefits pertaining thereto in an equal footing with all
9 They shall also be entitled to be naturalized as citizens of the
10 other Puerto Rican citizens, and shall retain all of his obliga-
10 United States in accordance with nondisoriminatory laws of
11 tions as a Puerto Rican citizen, except that while residing in
11 the United States.
12 the United States that person shall not be subject under
12
(k) Citizens of the Republica of Puerto Rico who are not
13 Puerto Rican laws to compulsory military registration and
13 United States citizens may, for a period of twenty-five years
14 service or to any other condition or obligation contrary to the
14 after proclamation of independence, enter into, lawfully
15 sovereignty of the United States.
15 engage in occupations, and establish residence as immigrants
16
(h) Every citizen of the United States who becomes a
16 in the United States. These immigrants may be subject to
17 citizen of the Republic of Puerto Rico in accordance with
17 nondiscriminatory limitations as provided for by laws and
18 subsections (a), (b), (c), (d), (e), and (f), can elect: (1) to relin-
18 regulations of the United States.
19 quish his United States citizenship in accordance with United
19
(1) Every resident of the United States born in Puerto
20 States laws; or (2) to relinquish his Puerto Rican citizenship
20 Rico but not a citizen thereof, and his sons and daughters,
21 in accordance with the laws of the Republic.
21 may enter into, lawfully engage in occupations, and establish
22
(i) United States citizens residing in Puerto Rico, but
22 residence as immigrants in Puerto Rico subject to nondis-
23 not citizens thereof shall be entitled to the fundamental rights
23 oriminatory laws and regulations of the Republic.
24 and freedoms accorded to all persons in Puerto Rico but shall
24
(m) Every person lawfully admitted for permanent resi-
25 not be eligible for political office and shall not be entitled to
25 dence within the United States and who is a resident of
8 712 IBIB
8 712 1818
32
33
1 Puerto Rico on proclamation of independence shall continue
1 suant to section 2.5 of this title. Should this special task,
2 as resident and shall be entitled to be naturalized as citizen of
2 force be unable to reach an agreement prior to the proclama-
3 the Republic of Puerto Rico in accordance with nondiscrim-
3 tion of independence, the negotiations shall continue between
4 inatory laws of the Republic.
4 representatives appointed by the United States and the Re-
5 SEC. 5.2. DEFENSE.
5 public of Puerto Rico, until such time as an agreement may
6
(a) The UnitedStates shall collaborate with the Republic
6 be reached.
7 of Puerto Rico toward the ultimate goal of disarmament,
7
(d) The Republic of Puerto Rico shall be a nuclear free
8 peace, and international relations based on the principles of
8 zone. The United States and the Republic of Puerto Rico
9 equality, mutual respect and interdependence. Furthermore,
9 shall adhere and fully comply with the provisions of the
10 the United States recognizes the right of the People of
10 Treaty for the Proscription of Nuclear Weapons in Latin
11 Puerto Rico to strive toward the total demilitarization of its
11 America of 1967 (Treaty of Tlatelolco).
12 territory, with the purpose of gearing all its efforts and re-
12
(e) The Government of the Republic of Puerto Rico
13 sources to the goals of economic and social development.
13 shall, as soon as may be practicable, seek integration into the
14
(b) The Republic of Puerto Rico shall be closed to any
14 Inter-American defense system by subscribing the provisions
15 and all military forces of foreign nations. In furtherance of
15 of the Treaty of Mutual Defense of 1948 (Treaty of Rio de
16 this policy, and to expedite the orderly and gradual transfer
16 Janeiro).
17 of properties presently under the control of the United States
17 SEC. 5.3. TRADE RELATIONS.
18 for military purposes in Puerto Rico, the Governments of the
18
(a) Until proclamation of independence: (1) no trade bar-
19 United States and the Republic of Puerto Rico shall sub-
19 riers or quotas of any kind shall be imposed on merchandise
20 scribe a separate agreement for a reasonable and mutually
20 and articles going into Puerto Rico from the United States or
21 convenient period of transition.
21 coming into the United States from Puerto Rico; and (2)
22
(c) Negotiations leading to the eventual agreement pro-
22 trade relations shall be as currently provided by law.
23 vided in paragraph (b) shall begin in a special task force des-
23
(b) during the twenty years following the proclamation
24 ignated for such purposes by the President of the United
24 of independence, the United States shall not impose trade
25 States and the Constitutional Convention of Puerto Rico pur-
25 barriers or quotas of any kind on merchandise and articles
*S 712 IS1S-5
8 712 1818
34
35
1 coming into the United States from the Republic of Puerto
1 (e). If the regular corporate tax rate of the United States is
2 Rico.
2 changed before said twenty-fifth year, the difference between
3 SEC. 5.4. TAXATION.
8 the rate to which the earning repatriations are subject during
4
(a) The tax credit currently allowed under section 936
4 the year of said change and the new regular rate shall be
5 of the United States Internal Revenue Code shall remain in
5 divided, if the latter is higher, by the number of years re-
6 full effect upon proclamation of independence and during the
6 maining from the year which follows the year of said change
7 fifteen years thereafter with respect to income derived by
7 until said twenty-fifth year, and the result of such division
8 corporations that begin to fulfill or continue to fulfill the cur-
8 shall constitute the extent to which the rate applicable to the
9 rent requirements for such credit.
9 dividends shall increase every year from the year which fol-
10
(b) On the tenth year after proclamation of independ-
10 lows the year of said change until said twenty-fifth year. If
11 ence, a Joint Commission on Taxation shall be appointed in
11 the new regular United States corporate tax rate is lower
12 equal numbers by the President of the United States and the
12 than the rate to which the earning repatriations are subject
13 head of state of the Republic of Puerto Rioo to study and
13 during the year of said change, then the new lower rate shall
14 report on changes to be made, if any, to the tax credit al-
14 immediately apply to such repatriations. No other change
15 lowed under subsection (a) at the expiration of the fifteen-
15 shall occur before the expiration of said twenty-fifth year
16 year period. If no agreement is reached with respect to such
16 with respect to income derived by companies subject to this
17 changes, then all earning repatriations received by residents
17 subsection.
18 of the United States shall be subject to taxation by the
18
(c) With respect to income not subject to subsections (a)
19 United States, beginning on the sixteenth year after the proc-
19 or (b), the profits of an enterprise of either nation shall be
20 lamation of independence, at a rate that shall increase on a
20 taxable only on the nation of residence of said enterprise,
21 straight-line basis by 10 percent of the regular United States
21 unless the enterprise carrier on business in the other nation
22 corporate tax rate each year until it reaches 100 percent of
22 through a permanent establishment situated therein. If the
23 said regular rate in the twenty-fifth year after the proclama-
23 enterprise carriers on business as aforesaid, the profits of the
24 tion of independence, provided that a tax credit will be al-
24 enterprise may be taxed in the other nation but only 80 much
25 lowed on such earning repatriations pursuant to subsection
25 of them as is attributable to that permanent establishment.
8 712 1818
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37
1
(d) Each nation shall have taxing jurisdiction over
1 cording to the terms of a joint treaty for the avoidance of
2 income earned by individuals who are residents of either
2 double taxation to be entered into by both nations promptly
3 nation from sources within its territorial jurisdiction, property
3 upon the proclamation of the Republic of Puerto Rico. Nego-
4 situated therein, including transfers of such property by gift
4 tiations leading to such treaty shall be initiated by a special
5 or at death, and products consumed therein.
5 task force designated pursuant to section 2.5 of this title.
6
(e) Where a resident of either nation derives income
6 Until such treaty is executed, such determination shall be
7 from the other nation, the amount of tax payable in that
7 made according to the current tax laws of the United States
8 other nation in respect to that income pursuant subsections
8 and the Commonwealth of Puerto Rico.
9 (c) and (d), and the amount of tax payable in the Republic of
9 SEC. 5.5 CURRENCY AND FINANCE
10 Puerto Rico that does not exceed for any specific year the
10
(a) After proclamation of independence, the Republic of
11 amount of tax payable in the United States for that same
11 Puerto Rico shall have all powers concerning the issuance
12 year pursuant to subsection (b), shall be allowed as a credit
12 and control of currency and all powers concerning monetary
13 against the tax payable in respect to that income in the
13 and financial matters, provided that during the ten years fol-
14 nation of residence of the taxpayer. A withholding tax on
14 lowing the proclamation of independence both United States
15 dividends shall be considered a tax on income for these pur-
15 currency and Puerto Rican currency shall be accepted as
16 poBeB. If the United States amend its laws concerning the
16 legal tender in all transactions in Puerto Rico.
17 provision of tax sparing credits or if the United States
17
(b) The current value of all stock bought by Puerto
18 reaches an agreement on the provision of a tax sparing credit
18 Rican banks in the Federal Reserve System, Federal Deposit
19 with any other nation, Puerto Rico shall ipso facto be grant-
19 Insurance Corporation and the Federal Home Loan Bank
20 ed the most favorable degree of tax sparing credit allowed
20 System will be transferred to the Republic of Puerto Rico,
21 under such amended laws or under such agreement or agree-
21. including the proportion held by United States national,
22 ments.
22 Spanish and Canadian banks that correspond to the level of
23
(f) The determination under this section of the residence
23 their activities of its branches operating in Puerto Rico
24 of any taxpayer, the source of any income, the situs of any
24 during the year immediately prior to the proclamation of
25 property or any other necessary definitions shall be made ac-
25 independence.
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39
1
(c) The monetary authority of the Republic of Puerto
1 SEC. 5.6. PUBLIC DEBT.
2 Rico shall establish an integrated system of insurance for de-
2
(a) The debts, liabilities, and obligations of the Common-
3 posits in Puerto Rico's financial institutions similar to the
3 wealth of Puerto Rico, its municipalities and instrumental-
4 Federal Deposit Insurance Corporation. Negotiations will be
4 ities, valid and outstanding upon proclamation of independ-
5 undertaken with United States monetary authorities to obtain
5 ence, shall be assumed by the Republic of Puerto Rico.
6 their assistance in the design and establishment of the insur-
6
(b) After proclamation of independence the United
7 ance system, and to determine the extent of financial support
7 States shall maintain full income tax exemption, as currently
8 to be provided for the system by United States insurance
8 provided by law, on interest payments derived from debts of
9 organizations in which Puerto Rico's financial institutions
9 the Commonwealth of Puerto Rico assumed by the Republic,
10 currently participate.
10 as specified in subsection (a).
11
(d)(1) The guarantees provided by the Government of
11
(c) During the twenty-five years following the proclama-
12 the United States to investors in the secondary market for
12 tion of independence, the United States shall extend full
13 loans, particularly mortgage loans guaranteed by the Govern-
13 income tax exemption, as currently provided by law, to inter-
14 ment National Mortgage Association (G.N.M.A.), the Federal
14 est payments derived from debts of the Republic of Puerto
15 National Mortgage Association (F.N.M.A.), the Federal
15 Rico.
16 Home Loan Mortgage Corporation (F.H.L.M.) and other
16 BEC. 5.7. INDIVIDUAL RIGHTS TO ECONOMIC BENEFITS AND
17 United States Government instrumentalities, shall be main-
17
GRANTS TO THE REPUBLIC OF PUERTO RICO.
18 tained for Puerto Rico-originated loans until maturity.
18
(a) All vested rights and benefits which accrue to resi-
19
(2) Negotiations shall be carried out to ensure that after
19 dents of the Commonwealth of Puerto Rico under the laws of
20 proclamation of independence Puerto Rico-originated loans,
20 the United States from past services or contributions, such as
21 particularly housing mortage loans, can continue to be guar-
21. rights and benefits for veterans or relatives of veterans of the
22 anteed by G.N.M.A., F.N.M.A., F.H.L.M. and other United
22 Armed Forces of the United States, retired Government em-
23 States Government instrumentalities and can continue to be
23 ployees, or beneficiaries of old age, disability of survivors'
24 sold to investors in the United States secondary markets.
24 insurance benefits under the Social Security Act, shall not be
25 interrupted after the proclamation of independence but will
26 continue until such time as said rights and benefits are com-
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41
1 pletely extinguished according to the applicable laws of the
'1
(1) During the ten fiscal years following the proc-
2 United States. All services which must be rendered as part of
2
lamation of independence, the annual block grants shall
3 these rights and benefits shall be made available through the
8
amount to the annual aggregate funding of all pro-
4 Government of the Republic of Puerto Rico in accordance
4
grams which currently extend to the Commonwealth of
5 with agreements reached by the two nations.
5
Puerto Rico, or of all programs which shall have been
6
(b) Notwithstanding the provisions in subsection (a), all
6
extended to the Commonwealth of Puerto Rico during
7 contributions made by employees and employers in Puerto
7
the fiscal year immediately prior to the proclamation of
8 Rico to the Social Security System with respect to persons
8
independence, whichever shall be greater.
9 who, upon the proclamation of independence, are residents of
9
(2) The annual block grants shall decrease there-
10 the Republic of Puerto Rico and are not yet eligible for old
10
after on a straight-line basis, at the rate of ten percent
11 age, disability, or survivors' insurance benefits under the
11
each year, beginning on the eleventh fiscal year after
12 system, shall be transferred to the Government of the Repub-
12
the proclamation of independence. At any time during
13 lic of Puerto Rico once said Government establishes its own
18
the aforementioned transition period the terms of this
14 social security system. The Government of the Republic of
14
subsection may be modified by agreement between the
15 Puerto Rico may not use these funds for any purpose other
15
United States and the Republic of Puerto Rico.
16 than the establishment and operation of a social security
16
SUBTITLE 6-RELATIONS BETWEEN THE UNITED
17 system. Upon the transfer described herein, the obligations of
17
STATES AND THE REPUBLIO OF PUERTO Rico
18 the United States Government under the Social Security Act
18 SEC. 6.1. TREATY OF FRIENDSHIP AND COOPERATION.
19 with respect to such residents of the Republic of Puerto Rico
19
To insure that all provisions of this title which shall
20 shall cease.
20 have effect after the proclamation of independence will in
21
(c) All other Federal transfer payments to individuals
21 effect be binding, the United States and the Republic of
22 and to the Government of the Commonwealth of Puerto Rico
22 Puerto Rico shall embody said provisions in a treaty of
23 shall be maintained in the form of annual block grants to be
23 friendship and cooperation.
24 used discretionally by the Government of the Republic of
25 Puerto Rico-
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43
1
TITLE IV-COMMONWEALTH
1
It is the purpose of this Act to provide for the enhance-
2
SUBPART 1. STATEMENT OF PURPOSES
2 ment of the Commonwealth relationship by enlarging the
3
In 1952 the Congress of the United States, fully recog-
3 scope of self-government of the Puerto Rican people upon the
4 nizing the principle of government by consent, and the
4 approval of a proposition to that effect by a majority of the
5 People of Puerto Rico, in the exercise of their right to self-
5 eligible voters of the Commonwealth of Puerto Rico.
6 determination, entered upon a compact which established a
6
SUBPART 2. REFERENDUM PROPOSITION:
7 Commonwealth relationship between Puerto Rico and the
7
COMMONWEALTH
8 United States.
8
The referendum proposition regarding Commonwealth,
9
Under the compact the People of Puerto Rico adopted
9 to be presented to, and voted upon, by the People of Puerto
10 in their own sovereign right their own Constitution and
10 Rico shall be as follows:
11 formed an autonomous political community in permanent
11
"The Commonwealth association with the United
12 union with the United States of America based on the irre-
12
States shall be enhanced to enable the People of
13 versible bond of American citizenship.
13
Puerto Rico to accelerate their economic and social de-
14
In 1953 the General Assembly of the United Nations
14
velopment and attain maximum cultural and political
15 recognized the creation of the Commonwealth and removed
15
autonomy within permanent union with the United
16 Puerto Rico from the list of non-self-governing territories.
16
States based on the irreversible bond of American citi-
17 This association has enabled the People of Puerto Rico to
17
zenship, a common defense, 8 common market, and a
18 advance their economic and social development and to pre-
18
common currency."
19 serve their distinct historical heritage and cultural person-
19
The proposition will appear in the ballot, in Spanish, as
20 ality.
20 follows:
21
As inherent in all political relationships freely entered
21
"El Estado Libre Asociado 86 fortalecerá para
22 upon, it was based on the understanding that it would evole
22
acelerar el desarrollo econmico y social y alcanzar la
23 and develop within its particular political nature upon mutu-
23
máxima autonomia cultural y politica del pueblo de
24 ally agreeable terms.
24
Puerto Rico en su unión permanente con los Estados
25
Unidos sobre los pilares de común defensa, común mer-
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45
1
cado, común moneda, y el vinculo indisoluble de la ciu-
1
tect the bilateral nature of the relationship between the
dadania americana."
2
Commonwealth of Puerto Rico and the United States.
2
3
SUBPART 3. PRINCIPLES OF COMMONWEALTH
3
SUBPART 4. IMPLEMENTATION OF FEDERAL
Section 1 of the Puerto Rico Federal Relations Act, 39
4
POLICY
4
5 Stat. 954, as amended, 48 U.S.O. section 731, shall be re-
5
Section 9 of the Federal Relations Act, 39 Stat. 954, as
6 pealed, and replaced by the following:
6 amended, 48 U.S.C. section 734, is amended by inserting at
7
"(1) The provisions of this Act shall apply to the
7 the beginning thereof the term "(a)" and by adding at the end
8
Commonwealth of Puerto Rico, an autonomous body
8 thereof the following:
9
politic joined in permanent union with the United
9
"(b) A Federal statutory law, or provision of such law,
10
States on the basis of common citizenship, common de-
10 is locally inapplicable unless it is consistent with the policy
11
fense, common market and common currency.
11 established under subpart 3 and unless such Federal statuto-
12
(2) The policy of the United States shall be to en-
12 ry law has proper regard for the economic, cultural, ecologi-
13
hance the Commonwealth relationship enjoyed by the
13 cal, geographic, demographic and other local conditions of
14 the Commonwealth of Puerto Rico. This subsection shall not
14
Commonwealth of Puerto Rico and the United States
15
to enable the People of Puerto Rico to accelerate their
15 apply to:
economic and social development and attain maximum
16
16
(i) any Federal statutory law in which the Con-
17
cultural and political autonomy within permanent union
17
gress makes a specific finding that there is an overrid-
with the United States, to secure more equitable par-
18
18
ing national interest that such law should apply to the
ticipation for the People of the Commonwealth of
19
19
Commonwealth of Puerto Rico, or
20
Puerto Rico in all Federal programs that provide
20
(ii) any Federal satutory law, or provision thereof,
21
grants or services to citizens of the United States as
21
establishing directly or indirectly grants and/or serv-
individuals, to secure increased participation by the
22
ices to civilizen of the United States as individuals, or
22
People of Puerto Rico in United States governmental
23
23
(iii) any Federal statutory law or provision thereof
decisions affecting them, to safeguard the distinct cul-
24
24
relating to citizenship, or
25
tural identity of the People of Puerto Rico, and to pro-
8 712 1818
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47
1
(iv) any Federal statutory law or provision thereof
1
(ii) In addition, the Governor of the Commonwealth of
2
pertaining to the foreign relations, defense or national
2 Puerto Rico may take any official action to promote the
3
security of the United States that requires uniform ap-
8 international interests of Puerto Rico that requires the con-
4
plicability throughout the United States, including the
4 sent of the United States Government and is not expressly
5
Commonwealth of Puerto Rico, to achieve its intended
5 prohibited by law. The Governor of the Commonwealth of
6
purposes.
6 Puerto Rico shall provide written notice to the President of
7
(c) In addition to judicial determinations of the inappli-
7 the United States of any official action he contemplates
8 cability of Federal laws under subsection (b), the Governor of
8 taking pursuant to the authorization of this part of this sub-
9 the Commonwealth of Puerto Rico may certify from time to
9 section and not pursuant to any other authorization of con-
10 time to the Speaker of the House of Representatives, the
10 sent. The President may, within thirty days of his receipt of
11 President of the Senate, and the President of the United
11 such notice, sign and transmit to the Governor of the Com-
12 States, that a Federal statutory law or provision thereof,
12 monwealth of Puerto Rico a document expressing his deter-
13 other than one excluded from the operation of subsection (b),
13 mination that the contemplated official action would imperil
14 is inconsistent with a Puerto Rican statute and the policy
14 the foreign relations or national defense of the United States,
15 established under subsection (b). Unless within sixty days of
15 in which case the authorization hereby granted shall be with-
16 the receipt of such certification, a statute is enacted embody-
16 drawn as regards such contemplated official action.
17 ing the finding required under subsection (b)(i), the President
17
(e) All departments and agencies of the Government of
18 shall issue a proclamation that such Federal statutory law or
18 the United States shall be guided by the policy stated in sub-
19 provision thereof identified in the Governor's certification is
19 part 3 when carrying out their duties under Federal statutory
20 not applicable in Puerto Rico.
20 laws and Federal regulations applicable in or affecting the
21
(d)(i) The Commonwealth of Puerto Rico may continue
21 Commonwealth of Puerto Rico. Every such department or
22 to enter in its own name into international cultural, commer-
22 agency shall, before taking any major Federal action applica-
23 cial, educational and sports agreements, and other agree-
23 ble in or affecting the Commonwealth of Puerto Rico, sepa-
24 ments of like nature.
24 rately evaluate the consistency of such action with such
25 policy and shall state, in a document accompanying the major
8 712 ISIB
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48
49
1 Federal action, the extent, nature, and result of its consider-
1 in which event such rule, whether or not previously applica-
2 ation.
2 ble in the Commonwealth of Puerto Rico, shall not be 80
3
(f) Any rule, as defined in 5 U.S.C. section 551(4),
3 applicable. Unless the agency for good cause finds that a rule
4 issued by an agency, as defined in 5 U.S.C. section 551(1),
4 that is the subject of such determination by the Governor of
5 shall apply in the Commonwealth of Puerto Rico only to the
5 Puerto Rico as is described in this subsection shall be appli-
6 extent that it is consistent with the policy set forth in subsec-
6 cable to the Commonwealth of Puerto Rico pending its con-
7 tion (b). After the effective date of this amendment, when any
7 sideration of such determination, and publishes such finding
8 such rule, other than a rule issued after notice and hearing
8 in the Federal Register, such rule, whether or not previously
9 required by statute, that does not in terms provide that it is
9 applicable in the Commonwealth of Puerto Rico, shall not be
10 inapplicable in the Commonwealth of Puerto Rico is pub-
10 80 applicable pending such consideration. An agency's deci-
11 lished in the Federal Register, the Governor of the Common-
11 sion to make a rule applicable or inapplicable in Puerto Rico
12 wealth of Puerto Rico may submit to the agency within thirty
12 shall be subect to judicial review.
13 days in writing (or such longer period as the agency may
13
(g) The laws, rules and regulations of the United States
14 have prescribed as the period between publication of the rule
14 applicable in the Commonwealth of Puerto Rico when the
15 and its effectiveness) the Governor's determination that such
15 new Federal policy is established in accordance with subpart
16 rule is inconsistent with the policy stated in subsection (b).
16 3 shall continue in effect except to the extent repealed or
17 Thereupon, the agency shall reconsider the question of con-
17 modified by this Act, or inconsistent with it, and except as
18 sistency of the rule with the policy stated in subsection (b)
18 hereafter modified, suspended or repealed in accordance with
19 and shall, within forty-five days of its receipt of the Gover-
19 law.
20 nor's determination, publish in the Federal Register its find-
20
SUBPART 5. AVIATION
21 ing either that there is an overriding national interest that
21
Section 1102 of the Federal Aviation Act is amended by
22 the rule be applicable in the Commonwealth of Puerto Rico,
22 adding a new section (e) to read as follows:
23 in which case the rule, whether or not previously applicable
23
"(e)(i) The Government of the Commonwealth of Puerto
24 in the Commonwealth of Puerto Rico, shall thereafter be 80
24 Rico shall have authority to negotiate on its own behalf bilat-
25 applicable, or that the rule is not compatible with such policy,
25 eral air transportation agreements governing the operation of
8 712 ISIS
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51
1 air services by United States and foreign air carriers between
1 with the appropriate officials of the Commonwealth of Puerto
2 the Commonwealth and foreign points. Such agreements may
2 Rico in the implementation of any air transportation agree-
3 also include authorization of service by United States and
8 ment entered into pursuant to the authority herein estab-
4 foreign air carriers to use any point in the Commonwealth as
4 lished.".
5 an intermediate or beyond point on routes between points in
5
SUBPART 6. DEVELOPMENT OF TOURISM
6 the United States and foreign nations for which the carrier
6
Section 4a(l) of the Coastal Barrier Resources Act of
7 holds certificate or foreign air carrier operating authority
7 1982, 16 U.S.C. section 3503(a)(I), is amended by adding to
8 from the Department of Transportation. Such agreements
8 the end of the subsection: "Notwithstanding the foregoing, no
9 may authorize such carriers to engage in common carriage of
9 area within the Commonwealth of Puerto Rico shall be in-
10 persons and property between such authorized points in the
10 cluded within the Coastal Barrier Resources System.".
11 United States and the Commonwealth, notwithstanding the
11
SUBPART 7. INTERNATIONAL TRADE
12 provisions of sections 416(6)(7) and 1108 of this Act.
12
(a) Section 2 of the Act of April 12, 1900, 48 U.S.C.
13
"(ii) Operating rights contained in Commonwealth bilat-
13 739, is amended by inserting the following subsection.
14 eral air transportation agreements shall be subject to the
14
"1. To the extent consistent with the interna-
15 grant of necessary operating authority by the Department of
15
tional obligations of the United States, the Common-
16 Transportation and the Administrator. The responsibilities of
16
wealth of Puerto Rico is authorized to impose tariff
17 the Department and the Administrator under subsection (a) of
17
duties on foreign origin products imported into Puerto
18 this section shall extend to such bilateral agreements.
18
Rico. Such tariff duties shall be in addition to the gen-
19
"(iii) Operating authority issued by the Department of
19
eral tariff duties applicable to products imported into
20 Transportation in implementation of bilateral agreements ne-
20
the customs territory of the United States.".
21 gotiated by the Government of the Commonwealth of Puerto
21
(b) Section 1102 of the Omnibus Trade and Competi-
22 Rico shall be subject to the President's right of disapproval
22 tiveness Act of 1988, 19 U.S.C. 2902, is amended by adding
23 as contained in section 801(a) of this Act.
23 a new subsection (e) as follows:
24
"(iv) The officials of the Federal Aviation Administra-
24
"(e) During the negotiation of any trade agreement af-
25 tion of the United States are directed to assist and cooperate
25 fecting Puerto Rico under subsections (a), (b), and (c), the
8 712 1818
B 712 ISIN
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53
1 President shall seek the participation of the Commonwealth
1
(b) Section 1 of the Shipping Act, 1916, as amended, 46
2 of Puerto Rico in the negotiation process, and shall consult
2 U.S.C. App. section 801, is amended by inserting after the
3 with the Governor of the Commonwealth of Puerto Rico con-
3 second "possession of the United States" and at the end of
4 cerning the potential impact of any proposed tariff rate
4 the provision, the following phrase: "not including the Com-
5 change on the economy of Puerto Rico.
5 monwealth of Puerto Rico.".
6
The Government of the United States shall seek to
6
SUBPART 9. JURISDICTION OVER MARITIME
7 obtain* favorable treatment from foreign countries for exports
7
RESOURCES
8 from the Commonwealth of Puerto Rico and shall encourage
8
(a) Amend section 3(21) of the Magnuson Fishery Con-
9 other countries to consider Puerto Rico as a developing area
9 servation and Management Act, as amended, 16 U.S.C.
10 for purposes of their respective General Systems of Trade
10 1802(21) to read as follows:
11 Preferences, and any such regional systems of trade prefer-
11
"(21) The term 'State' means each of the several
12 ences.".
12 States, the District of Columbia, American Samoa, the
13
SUBPART 8. MARITIME
18 Virgin Islands, Guam, and any other territory or possession
14
(a) Section 9 of the Puerto Rican Federal Relations Act,
14 of the United States, but does not include the commonwealth
15 48 U.S.C. section 744, is amended to add at the end of the
15 of Puerto Rico.".
16 provision: "except that those provisions of the Shipping Act,
16
(b) Amend the first sentence of section 2(6) of the Mag-
17 1916, administered by the Federal Maritime Commission
17 nuson Fishery Conservation and Management Act, as amend-
18 shall not be applicable to the trade between Puerto Rico and
18 ed, 16 U.S.O. 1802(6) to read as follows: "The term 'exclu-
19 the States of the United States. The Commonwealth of
19 sive economic zone' means the zone established by Proclama-
20 Puerto Rico is authorized to establish its own maritime com-
20 tion Numbered 5030, dated March 10, 1983, except that
21 mission which, when established in accordance with Puerto
21 such zone shall not include zones contiguous to the territorial
22 Rico law shall exercise exclusive jurisdiction over service,
22 sea of the Commonwealth of Puerto Rico, provided that the
23 rates, fares, and practices governing the trade between
23 Commonwealth of Puerto Rico shall take no action that
24 Puerto Rico and the states of the United States."
24 would purport to restrict or charge fees to vessels of the
25 United States for the right to fish for highly migratory spe-
S 712 INIS
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55
1 cies of fish within any fishing jurisdiction the 'Commonwealth
forms are related by repeating design elements
2 of Puerto Rico may establish beyond its territorial waters.".
2
consistently applied in 4 national system, to the
3
SUBPART 10, INTELLECTUAL PROPERTY
8
extent that the repeating design elements in the
4
(a) Section 101 of title 17 of the United States Code is
4
combination employed in a notational system are
5 amended as follows:
5
(A) original, (B) distinct, and (0) incorporated in a
6
(1) By inserting the following new definitions in
6
useful article whose normal upe is in composing
7
alphabetical order:
7
text or other cognizable combination of charac-
8
"The "design of 4 useful article,' hereinafter
8
ters."
9
referred to in this Title OF & 'design,' consists of
9
(2) By adding, after the semicolon in the second
10
those aspects or elements of the article, including
10
sentence of the definition of "Piptorial, graphic, and
11
its two dimensional qr three dimensional features
11
soulptural. works," the following: "except where
a
12
of shape and surface, which make up the appear-
12
design of Puerto Rican origin is involved,"
13
ance of the article, and shall include a 'typeface'
18
(b) Section 102 of title 17 of the United States Code is
14
M herein defined
14 amended by adding A new subsection 102 (a)(8) as follows;
15
"A design is of Puerto Ricap origin' (a) if
15
"(8) designs of useful articles, where such designs
16
more than 50 percent of its development costs
16
are of Puerto Rican origin."
17
have been incurred within the Commonwealth of
17
(c) Section 118 of title 17 of the United States Code is
18
Puerto Rico, irrespective of whether such design
18 amended by adding & new subsection (d) 44 follows:
19
is fixed in A useful article in the Commonwealth
19
"(d) In the case of A design of Puerto Rioap origin, the
20
of Puerto Rico; 95 (B) if it is first fixed in the
20, scope of exclusive rights in a copyrighted work does not
21
Commonwealth of Puerto Rico in a useful article
31 extend to a design that is (i) staple or commonplace, such as
22
intended to be distributed to the public for com-
22 a standard geometric figure, familiar symbol, emblem, or
23
mercial purposes
23 motif, or other shape, pattern, or configuration which has
24
"A 'typelace' consists of a set of letters,
24 become common, prevalent, or ordinary; (ii) different from a
25
numbers, or other symbolic characters, whose
25 design excluded by (i) hereof only in insignificant details or in
8 713 1818
8 712 1818
56
57
1 elements which are variants commonly used in the relevant
:
1 "@ 306. Designs of Puerto Rican origin
2 trades; (iii) dictated primarily by a utilitarian function of the
2
(a) The provisions of section 802 through 305 of this
3 article in which it is fixed, (iv) composed of three-dimensional
8 chapter shall not apply to copyrights in designs of Puerto
4 features of shape and surface with respect to men's,
4 Rican origin.
5 women's, and children's apparel; or (v) fixed in 8 semiconduo-
5
(b) Copyright in a design of Puerto Rican origin subsiets
6 tor chip product that is protected under chapter 9 of this title.
6 from its creation and endures for a period of ten years.
7 Notwithstanding the foregoing, the scope of exclusive rights
7.
(c) A term of copyright provided by this section shall run
8 shall not be limited by the employment in the design of sub-
8 to the end of the calendar year in which in would otherwise
9 ject matter excluded under (i) through (iii) hereof, if the
9 expire.".
10 design is a substantial revision, adaptation, or rearrangement
10
(e) Section 407 of title 17 of the United States Code is
11 of said subject matter: Provided, however, That such exclu-
11 amended by adding the following language before the semi-
12 aive rights shall be available for a design employing subject
12: colon in section. 401(b)(1): ". or, in the case of a design of
13 matter protected under chapters 1 through 8 of this title or
18 Buerto Rican origin, the symbol D (the letter D in & circla),
14 title 35' of the United States Code, only if such protected
14 or the words "Design Copyright,' or the abhreviation 'Des.
15 subject matter is employed with the consent of the proprietor
15 Copr.'.".
16 thereof. Such protection shall be independent of any subsist-
16
(f) Section 407 of title 17 of the United States Code is
17 ing protection in subject matter employed in the design, and
17. amended by striking the period the end of section 407 (c) and
18 shall not be construed as securing any rights to subject
18 adding the following language: ", or the work is a design of
19 matter excluded from protection or as extending any subsist-
19 Puerto Rican origin.".
20 ing protection."
20
(g) Section 901 (a) of title 17 of the United States Code
21
(d) Chapter 8 of title 17 of the United States Code is
21, ja amended by adding A new subsection (10) as follows:
22 amended by the addition of a new section 806 as follows:
22
"(10) a mask work is "of Puerto Rican origin' (a)
28
if more than 50 percent of its development costs have
24
been incurred within the Commonwealth of Puerto
25
Rico, irrespective of whether such mask work is fixed
26
in a computer chip in the Commonwealth of Puerto
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59
1
Rico; or (B) if it is first fixed in the Commonwealth of
1
"(a) At the request of the Governor of the Common-
2
Puerto Rico in a computer chip intended to be distrib-
2 wealth, any department or agency of the Government of the
3
uted to the public for commercial purposes.".
3 United States which administers any Act of Congress which
4
(h) Section 906 of title 17 of the United States Code is
4 specifically provides for making grants to the Commonwealth
5 amended by adding at the end thereof the following:
5 under which payments received may be used by the Com-
6
"(c) The limitations on exclusive rights provided under
6 monwealth only for certain specified purposes (other than
7 subsections (a) and (b) of this section shall not apply to mask
7 direct payments to classes of individuals, including, but not
8 works of Puerto Rican origin.".
8 limited to, Aid to Families with Dependent Children, title
9
(i) The foregoing sections (a) through (h) shall apply
9 IV-A of the Social Security Act, 42 U.S.C. 601; Medicaid,
10 after the date of enactment to all acts of manufacture or dis-
10 title XIX of the Social Security Act, 42 U.S.C. 2396; Sup-
11 tribution that occur in the United States after such date, to
11 plemental Security Income, title XVI of the Social Security
12 all acts of importation into the United States that occur after
12 Act, 42 U.S.C. 1381; Foster Care, title IV-E of the Social
13 such date, and to all violations of the exclusive rights of the
13 Security Act, 42 U.S.O. 670; and Nutrition Assistance Pro-
14 copyright's owner under of title 17, United States Code that
14 gram, 7 U.S.O. 2028) shall, acting through appropriate ad-
15 occur after such date.
15 ministrative authorities of such department of agency, consol-
16
SUBPART 11. FEDERAL PROGRAMS
16 idate any or all grants made to the Commonwealth for any
17
(a) CONSOLIDATION OF GRANT-IN-AID PROGRAMS.-
17 fiscal year or years.
18 The Puerto Rico Federal Relations Act is amended by insert-
18
"(b) Any consolidated grant for the Commonwealth
19 ing a new section 59, as follows:
19 shall not be less than the sum of all grants which the Com-
20 SECTION 59.
20 monwealth would otherwise be entitled to receive for such
21
In order to minimize the burden caused by existing ap-
21 year.
22 plication and reporting procedures for grant-in-aid programs
22
"(c) The funds received under a consolidated grant shall
23 available to the Commonwealth of Puerto Rico it is hereby
23 be expended in furtherance of the programs and purposes au-
24 declared to be the policy of the Congress, notwithstanding
24 thorized for any of the grants which are being consolidated,
25 any provision of law to the contrary, that:
25 which are authorized under any of the Acts administered by
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61
1 the department or agency making the grant, and which
1 ment that the Commonwealth submit an application or report
2 would be applicable to grants for such programs and purposes
2 in writing with respect to any consolidated grant.
3 in the absence of the consolidation, but the Commonwealth
3
(b) EQUITABLE TREATMENT IN SOCIAL PROGRAMS.-
4 shall determine the proportion of the funds granted which
4 The Puerto Rican Federal Relations Act is amended by in-
5 shall be allocated to such programs and purposes.
5 serting a new section 60 as follows:
6
"(d) Each department or agency making grants-in-aid
6 "SECTION 60.
7 shall, by regulations published in the Federal Register, pro-
7
"(a) It is the policy of the United States that the alloca-
8 vide the method by which the Commonwealth may submit: (i)
8 tions to the Commonwealth of Puerto Rico of the following
9 a single application for a consolidated grant for any fiscal
9 programs shall achieve full parity with the States of the
10 year period, but not more than one such application for a
10 Union as soon as possible but in no event later than the fifth
11 consolidated grant shall be required by any department or
11 anniversary of the date of enactment hereof with allocations
12 agency unless notice of such requirement is transmitted to
12 to States of the Union in the following programs or their
13 the appropriate committees of the United States Congress to-
13 successor thereof: Nutrition Assistance Program (NAP); Aid
14 gether with a complete explanation of the necessity for re-
14 to Families with Dependent Children (AFDC); and Medicaid;
15 quiring such additional applications, and (ii) 8 single report to
15 and in no event later than the ninth anniversary of the date
16 such department or agency with respect to each such consoli-
16 of enactment hereof with allocations to States of the Union
17 dated grant: Provided, That nothing in this paragraph shall
17 for the Supplemental Security Income (SSI) program, or its
18 preclude such department or agency from providing adequate
18 successor.".
19 procedures for accounting, auditing, evaluating, and review-
19
SUBPART 12. PROTECTION OF WORKERS
20 ing any programs or activities receiving benefits from any
20
(a) Amend section 3 of the Labor Management Act, as
21 consolidated grant. The administering authority of any de-
21 amended, (29 U.S.C. 153(b)), by adding after the first sen-
22 partment or agency, in its discretion, may (i) waive any re-
22 tence: "; with the exception of cases arising under the juris-
23 quirement for matching funds otherwise required by law to be
23 diction of the Commonwealth of Puerto Rico which are
24 provided by the Commonwealth and (ii) waive the require-
24 hereby exclusively delegated to the Labor Relations Board of
25 Puerto Rico. Decisions of the Labor Relations Board of
8 712 1818
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63
1 Puerto Rico may be appealed to the Federal Court of Ap-
1 SUBPART 14. REPRESENTATION IN UNITED STATES
2 peals for the First Circuit.".
2
SENATE
3
(b) The Puerto Rican Federal Relations Act is amended
8
Section 36 of the Puerto Rican Federal Relations Act,
4 by adding a new section 61, as follows:
4 48 U.S.C. section 891-895, is amended as follows:
5
"Puerto Rico shall maintain exclusive jurisdiction over
5
"SUBCHAPTER V. RESIDENT COMMISSIONERS
6 employee benefits, other than the benefits currently covered
6 SECTION 891. RESIDENT COMMISSIONERS; ELECTION.
7 under the Fair Labor Standards Act, the Employee Retire-
7
"The qualified electore of Puerto Rico shall choose a
8 ment Income Security Act, and the Occupational Safety and
8 Resident Commissioner to the United States Senate and a
9 Health Act. Puerto Rico's exclusive jurisdiction shall include,
9 Resident Commissioner to the United States House of Repre-
10 but not be limited to Christmas bonuses, sick and vacation
10 sentatives at each general election, whose terms of office
11 pay, worksman's compensation, and any other benefits not
11 shall be four years from the 3rd of January following such
12 covered under the current aforementioned Federal legisla-
12 general election, and who shall be entitled to receive official
13 tion.".
13 recognition as such commissioner by all of the departments of
14
SUBPART 13. PUERTO RICO PARTICIPATION IN
14 the Government of the United States, upon presentation,
15
FEDERAL APPOINTMENTS
15 through the Department of States, of a certificate of election
16
Section 301 of title 3, is amended by inserting at the
16 of the Governor of Puerto Rico.
17 beginning thereof the term "(a)" and by adding at the end
17 "SECTION 892. QUALIFICATIONS OF COMMISSIONERS;
18 thereof the following:
18
APPOINTMENT TO FILL VACANCY.
19
"(b) The highest ranking Federal officer serving in the
19
"No person shall be eligible to election as a Resident
20 Commonwealth of Puerto Rico for any Federal department
20 Commissioner who is not a bona fide citizen of the United
21 and agency, or division thereof, and any other appointment in
21 States and who is not more than twenty-five years of age,
22 the Commonwealth of Puerto Rico subject to Senate confir-
22 and who does not read and write the English language. In
23 mation, shall be appointed by the President from a list of
23 case of a vacancy in either office of Resident Commissioner
24 eligible candidates recommended by the Governor of the
24 by death, resignation, or otherwise, the Governor by and
25 Commonwealth of Puerto Rico.".
25 with the advice and consent of the Senate of the Common-
26 wealth of Puerto Rico shall appoint a Resident Commissioner
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65
1
SUBPART 15. JUDICIARY
1 to fill the vacancy, who shall serve until the next general
2
2 election and until his successor is elected and qualified.
Section 42 of the Puerto Rico Federal Relations Act, 48
3 "SECTION 893. SALARY OF COMMISSIONERS; ALLOWANCES,
3 U.S.C. section 864, is amended by deleting the last sentence
FRANKING PRIVILEGE.
4 and inserting the following paragraph:
4
5
5
"The Resident Commissioners shall receive a salary
"Notwithstanding any other provision of law:
6
6 payable monthly by the United States. The Resident Com-
"(1) The District Court shall not undertake to
7
construe a theretofore unconstrued Puerto Rico statute
7 missioners shall be allowed the same sum for stationary and
8
8 for the pay of necessary clerk hire as is allowed Members of
or regulation or decide a theretofore undecided point of
9
9 the Senate of the United States and Members of the House of
substantive Puerto Rico nonstatutory law without
10
10 Representatives of the United States. The Resident Commis-
having given the Supreme Court of Puerto Rico the
11
11 sioners shall be allowed the franking privilege granted Mem-
opportunity to construe such statute or regulation or to
12
12 bers of Congress.
rule upon such point of Puerto Rico law.
13
13 "SECTION 894. SALARY AND TRAVELING EXPENSES; PAY-
"(2) The proceedings of the United States District
14
Court for the District of Puerto Rico shall be conduct-
14
MENT.
15
"The salary and traveling expenses of the Resident
ed in the Spanish language upon the request of any
15
16
16 Commissioners from Puerto Rico to the United States shall
party to the proceedings.
17
17 be paid in the same manner as the salaries of the Members of
"(3) Any issue of law arising under the Puerto
18
18 the Senate and the House of Representatives are paid.
Rico Federal Relations Act in any action or controver-
19
By brought in federal court shall be certified to the Dis-
19 "SECTION 895. OTHER PRIVILEGES.
20
20
"The appropriate sections of title 2 of the United States
trict of Columbia Court of Appeals. In addition, the
21
21 Codes and any other statutory law that relates to the privi-
Commonwealth of Puerto Rico, its departments, agen-
22
cies and instrumentalities, as well as officials and
22 leges afforded United States Senators shall be amended to
23
23 include the Resident Commissioner from the Commonwealth
agents, in both their official and personal capacity, may
24
24 of Puerto Rico to the United States Senate.".
transfer any action brought against them in the District
25
Court for Puerto Rico to the District Court for the
26
District of Columbia.".
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67
1
SUBPART 16. PASSPORTS
1
thirty days. The District Office for Puerto Rico of the
2
(a) Section 211a of title 22, is amended by adding after
2
Immigration and Nationality Service shall issue the
3 the provision "by the chief or other executive officer of the
3
special temporary entry visit visas, as well as other
4 insular possessions of the United States,"; "and the Gover-
4
entry visas.
5 nor of the Commonwealth of Puerto Rico,".
5
"(2) If adequate appropriated funds to carry out this
6
(b) The following new section shall be added to title 22
6 subsection are not otherwise available, the Director of the
7 as section 211b;
7 Immigration and Nationality Service is authorized to accept
8 "SECTION 211b. UNITED STATES PASSPORT OFFICE IN PUERTO
8 from the Government of the Commonwealth of Puerto Rico
9
RICO.
9 such funds as may be tendered to cover all or any part of the
10
"The Secretary of State shall establish a Passport
10 costs of administration and enforcement of this subsection.".
11 Office for the Caribbean located in San Juan, Puerto Rico
11
SUBPART 17. LAW ENFORCEMENT
12 and shall authorize the Governor of the commonwealth to
12
Section 287 of the Immigration and Nationality Act, 8
13 administer such office as required by law.".
13 U.S.C. section 1357, is amended as follows:
14
(c) Section 212 of the Immigration and Nationality Act,
14
"(a) Any officer or employee of the Service authorized
15 8 U.S.C. section 1182 is amended by adding a new subsec-
15 under regulations proscribed by the Attorney General, and
16 tion (m) as follows:
16 any officer or employee of and within the Commonwealth of
17
"(m) COMMONWEALTH OF PUERTO Rico; WAIVER OF
17 Puerto Rico authorized by the Governor of the Common-
18 REQUIREMENTS; NONIMMIOBANT VISITORS.-
18 wealth of Puerto Rico shall have the power without war-
19
"(1) The requirement of paragraph 26(B) of sub-
19 rant.".
20
section (a)-of this section shall be waived by the At-
20 SUBPART 18. HISTORIC SITES AND CONSERVATION
21
torney General upon the request of the Government of
21
LANDS
22
the Commonwealth of Puerto Rico, in the case of an
22
Section 8 of the Puerto Rico Federal Relations Act, 48
23
alien applying for admission as a nonimmigrant visitor
23 U.S.C. section 749 is amended by redsignating it section 8A
24
at the invitation of the Government of the Common-
24 and enacting a new Section 8B:
25
wealth and solely for!entry into and stay in the Com-
26
monwealth of Puerto Rico for a period not to exceed
8 712 ISIS
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69
1 "SECTION 8b.
1
SUBPART 19. COMMUNITY VALUES
2
"(a)(i) Lands. Title to all lands, buildings, and interests
2
The Puerto Rican Federal Relations Act is amended by
3 in lands, and other property now owned by the United States
3 inserting a new section 61 as follows:
4 and within the territorial limits of the Commonwealth of
4 "SECTION 61.
5 Puerto Rico, and the harbor areas and navigable streams and
5
"(a) DEFINITIONS.-
6 bodies of water and submerged lands underlying the same in
6
"(1) The term 'antitrust laws' has the same mean-
7 and around the island of Puerto Rico and the adjacent islands
7
ing given such term in the first section of the Clayton
8 and waters, owned by the United States, which may have
8
Act, 15 U.S.C. section 12, and shall also include sec-
9 been acquired in Puerto Rico by the United States under the
9
tion 5 of the Federal Trade Commission Act, 15
10 cession of Spain in the treaty of peace entered into on De-
10
U.S.C. section 45.
11 cember 10, 1898, and the lands owned by the United States,
11
"(2) The term 'person in the entertainment indus-
12 and administered under the Caribbean National Forest, is
12
try' means any organization, or an individual connected
13 hereby conveyed to the people of Puerto Rico and placed
13
with any organization, that produces, distributes, trans-
14 under the control of the Government of the Commonwealth
14
mits, or exhibits any form of audio or visual entertain-
15 of Puerto Rico; Provided, That the United States and the
15
ment.
16 Commonwealth of Puerto Rico may negotiate to establish
16
"(3) The term 'audio or visual entertainment' in-
17 mutually agreed terms and conditions for the continued use
17
cludes:
18 and administration of such lands and properties.
18
"(i) video, audio, or mixed programs trans-
19
(ii) The conveyance described in subsection (i) of this
19
mitted via electromagnetic waves of any frequen-
20 section shall be effective thirty days after the enactment of
20
cy, whether transmitted to all receivers of a given
21 this section and the Legislature of the commonwealth of
21
type within transmission range, or to only select-
22 Puerto Rico shall have the authority to legislate as it shall
22
ed receivers on the basis of a subscription fee or
23 deem advisable with respect to all such Crown Lands con-
23
any other criteria;
24 veyed under this section.".
24
"(ii) programs transmitted by cable systems
25
as defined in section 602(5)-(6) of the Cable Com-
26
munications Policy Act of 1984, 47 U.S.C. sec-
N 712 1818
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71
1
tion 522(5)-(6), except that reference in 47
1 cohol and drugs in all audio or visual entertainment in Puerto
2
U.S.C. section 522(6) to 'video' shall be read as
2 Rico, or in any subset of audio or visual entertainment in
3
'video or audio' and references in 47 U.S.C. sec-
3 Puerto Rico as the Governor may designate in any declara-
4
tion 522(6) to 'television' shall be read as 'televi-
4 tion under this section, provided that
5
sion or radio'; and
5
"(1) no declaration by the Governor under this
6
"(iii) motion pictures, which include enter-
6
section shall operate to exempt from the antitrust laws
7
tainment, using film, videotapes, videocassettes,
7
any joint discussion, consideration, review, action, or
8
compact diacs, or any other functionally substan-
8
agreement that results in a boycott of any person; and
9
tially equivalent medium, if admission is generally
9
"(2) no declaration by the Governor under this
10
charged for such entertainment, or if such enter-
10
section shall operate to exempt from the antitrust laws-
11
tainment is generally made available to the public
11
any activities conducted more than 36 months after
12
on a rental or purchase basis for private viewing.
12
such declaration by the Governor. The Governor may
13
"The term 'audio or visual entertainment' does
13
limit the effect of any declaration to a shorter period if
14
not include printed or otherwise written material unless
14
he or she does 80 in the declaration itself.
15
such printed or otherwise written material is used in
15
"(c) A declaration by the Governor under section 2 con-
16
any form of audio or visual entertainment described
16 cerning any forms of audio or visual entertainment shall not
17
above.
17 limit his or her authority to make future declarations con-
18
"(b) Upon declaration by the Governor of Puerto Rico
18 cerning those forms of audio or visual entertainment."
19 (the Governor) and publication of such declaration in the offi-
19 SUBPART 20. ASSUMPTION OF BUDGETARY RE-
20 cial register of the Commonwealth of Puerto Rico, the anti-
20
SPONSIBILITIES AND TRANSFER OF FEDERAL
21 trust laws shall not apply to any joint discussion, consider-
21
FUNCTIONS
22 ation, review, action, or agreement by or among persons in
22
The Puerto Rican Federal Relations Act is amended by
23 the entertainment industry for the purpose of, and limited to,
23 inserting a new section 63, as follows:
24 developing and disseminating voluntary guidelines designed
24
"The Commonwealth of Puerto Rico shall assume the
25 to alleviate the negative impact of violence, pornography, al-
25 expenses inherent in all governmental authority transferred
8 712 ISIB
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72
1 pursuant to this Act. The Government of the United States,
2 or any agency thereof; may from time to time delegate to the
3 Commonwealth of Puerto Rico the total or partial perform-
4 ance of functions vested in the United States, including the
5 administration of such Federal laws and programs on the
6 island, as may be mutually agreed.".
7
SUBPART 21.
8
The enhancements to the Commonwealth relationship
9 adopted pursuant to this Act shall form part of the Compact
10 entered upon by the Congress and the People of Puerto Rico
11 in 1952. It may be amended in the same manner as entered
12 upon in order to provide for the continuing enhancement of
13 the Commonwealth relationship.
N 712 ISIS
FOR OFFICIAL USE ONLY
National Security Council
DATE: 13 Jul 1989
Memorandum for: PACELLI
From:
NSC/S
CREATE DATE: 890623
Subject: SP RE ARIAS SUMMIT
Log #8904988 has been issued to your office
We need the necessary data/copies in order to maintain the
active suspense file or index the item for further reference
and tracking purposes.
Your help is needed. Thanks.
Check as may be appropriate:
Action completed, file attached.
Action still pending, copy attached.
Action transferred to
-
Action sent forward, copy attached.
Cannot find, will continue to check.
X Other: Please cancel. Before at was completed,
we received # 5337 - a memo to Scoweroft
Please return to
from NSC/S. State which will substitute for
# 4988.
- #5337 still being waked in
David Caull
FOR OFFICIAL USE ONLY
7/13/89