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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: / / / / / REFERRAL NOTE: / / / / REFERRAL NOTE: COMMENTS: * CALL AND HAVE THE HONOR OF A PHOTOGRAPH WITH HIMSELF AND HIS FAMILY WHEN HE RETURNS TO WASHINGTON IN AUGUST ADDITIONAL CORRESPONDENTS: MEDIA: INDIVIDUAL CODES: MI MAIL USER CODES: (A) (B) (C) *ACTION CODES: *DISPOSITION *OUTGOING * * * *CORRESPONDENCE: * *A-APPROPRIATE ACTION *A-ANSWERED *TYPE RESP=INITIALS * *C-COMMENT/RECOM *B-NON-SPEC-REFERRAL * OF SIGNER * *D-DRAFT RESPONSE *C-COMPLETED * CODE = A * *F-FURNISH FACT SHEET *S-SUSPENDED *COMPLETED = DATE OF * *I-INFO COPY/NO ACT NEC* * *R-DIRECT REPLY W/COPY * OUTGOING * * * *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 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)] 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 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 gift. 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 N 712 ISIS 36 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. 8 712 1818 8 712 1818 38 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- 8 712 1818 8 712 1818 40 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- B 712 1818 8 712 ISIS 42 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- H 712 1818 8 712 ISIS 44 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 8 712 1318 46 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 b 712 ISIS 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 S 712 ISIS 50 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 52 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 S 712 ISIS 54 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 B 713 1818 8 718 1818 58 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 8 712 1818 8 712 ISIS 60 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 N 712 ISIS 62 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 8 712 1818 8 712 ISIS 64 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.". N 712 ISIS 8 712 1818 - 66 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 8 712 ISIS 68 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 N 712 ISIS 70 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 H 712 ISIN 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