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{
    "localId": "1554455",
    "label": "Puerto Rico - Compact of Permanent Union, October 1975",
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{
    "id": "1554455",
    "sourceUrl": "https://catalog.archives.gov/id/1554455",
    "contentType": "document",
    "title": "Puerto Rico - Compact of Permanent Union, October 1975",
    "description": "This file contains a published report of the Ad hoc Advisory Group on Puerto Rico.",
    "citationUrl": "https://catalog.archives.gov/id/1554455",
    "collections": [
        "White House Special Files Unit Files",
        "Issue Decision Papers for the President"
    ],
    "subjects": [
        "Puerto Rico",
        "Intergovernmental relations",
        "Territories and possessions"
    ],
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    "coverageEndDate": {
        "logicalDate": "1975-10-31",
        "month": 10,
        "year": 1975
    },
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        "logicalDate": "1975-10-01",
        "month": 10,
        "year": 1975
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{
    "seq": 17,
    "pageIndex": 0,
    "type": "photo",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554455/1554455_Page_018_Image_0001.jpg",
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    "ocrText": "Associated State on economic and trade policy and imple-\nmainland. As in the past, United States duties on imports\nmentation.\ninto Puerto Rico or United States Internal Revenue taxes\ne. Notwithstanding any other provision of law, Puerto Rico\non Puerto Rican products shipped to the mainland are\nmay import materials and articles duty free for subsequent\ntransferred to Puerto Rico.\nshipment and sale to other parts of the United States customs\nThe United States-Puerto Rico common market is a\nterritory provided that the F.A.S. (free at side) shipping price\nfundamental pillar of the association. It has enabled Puerto\ncontains at least 35% value added in Puerto Rico.\nRico, through \"Operation Bootstrap\", to increase gross\nf. It shall be the purpose of the United States and the Free\nproduct from $745.4 million in 1950 to $6,806.5 million\nAssociated State of Puerto Rico to pursue policies of foreign trade\nin 1974 and to increase per capita personal income from\nexpansion and liberalization in a manner compatible with the\n$297 to $1,986 in the same period. This was done pri-\ncontinued expansion of trade and commerce within their common\nmarily by offering tax incentives and other assistance for\nmarket. In international trade negotiations, the United States will\ninvestment, mostly to United States firms, to produce\ntake into account the Free Associated State's stage of economic\narticles largely for the mainland market. In 1974, Puerto\ndevelopment, and in agreement with the Free Associated State,\nRican shipments to the United States totalled $2.8 billion,\nshall protect and promote its economic interests by seeking the\nto the Virgin Islands $121 million and to foreign countries\nmost favorable conditions for Puerto Rico's exports abroad and\n$376 million. Imports from the United States totalled $2.7\nsales to the United States market. The Free Associated State shall\nbillion, from the Virgin Islands $52 million and from\nbe accorded observer status within United States negotiating\nforeign countries $1.5 billion. The Island's overwhelming\ndelegations, shall be kept fully informed and shall be consulted\ndependence on offshore trade is evidenced by the fact that\nconcerning negotiating positions and decisions. On request and\ncombined exports and imports of $7.6 billion represent\nafter consultation and agreement, the United States shall seek to\n112.4% of 1974 gross product.\nhave the Free Associated State accepted as an associated devel-\nYet with all its progress, Puerto Rico remains among\noping state which developed countries recognize as qualifying fully\nthe poorest areas of the United States. In fact, it is con-\nto participate in all benefits from any regional or worldwide\nsiderably poorer than the poorest state. Per capita income\nsystem of preferences for developing countries.\nwas only 40% of the 1974 United States average of\n$5,277. Development is severely handicapped by lack of\nphysical resources, geographical remoteness, dependence\n9. Common Market\non high-cost energy, imported materials and ocean ship-\nping, by population density (more than 900 per square\nIn this section, the Advisory Group reconfirms the\nmile) and by the high costs of upgrading human skills and\ninviolability of the United States-Puerto Rico common\ncapabilities and of providing the physical infrastructure for\nmarket with unrestricted access by Puerto Rico to the\ncontinued growth. Many factors, both new and old,\nmainland and by the mainland to Puerto Rico, the only\ncombine to reduce the investment-drawing effect of\nexception being the long standing Puerto Rican right to\ncurrent tax and other incentives on United States and\nrestrict the import of coffee from foreign countries or the\nforeign investment in Puerto Rico. Quadrupling oil prices\nUnited States. It retains the inclusion of Puerto Rico in the\nhave reversed the previous Puerto Rican advantage over the\nUnited States customs territory, while strengthening and\nUnited States mainland in electric energy, petroleum and\nclarifying Puerto Rico's rights to control direct imports\npetrochemical feedstock prices. More and more capital,\nfrom abroad or transshipments through the United States\nmore complicated technology and longer lead time are\n24\n25"
}