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required for each new manufacturing job. Other develop-
sional, political, technical, sporting, cultural, industrial, agricultural,
ing countries are able to provide tax and other incentives,
and educational purposes.
equivalent to or better than those offered by Puerto Rico,
b. Nothing included in any of the provisions of this section
including much lower labor costs. Puerto Rico has lost and
shall affect in any way the right of unimpeded transit between the
is threatened by accelerated losses of existing and planned
United States and Puerto Rico of citizens of the United States.
industries to developing countries which compete with and
displace Puerto Rico's products in the United States
market.
10. Entry of Aliens into Puerto Rico
This section of the Compact proposes a new incentive
for industries to locate in Puerto Rico, similar to those
Puerto Rico needs some degree of control over the
available to Guam and the Virgin Islands. This provision
flow of immigration to the Island to assist its economic and
permits duty free imports of materials for processing,
industrial development to overcome its extremely high
provided that not less than 35% in value is added in Puerto
population density and its unemployment rate which is
Rico before shipment to the United States mainland
twice the national average of the United States.
market. The right to import duty free for export to foreign
Puerto Rico, as a result of economic and industrial
countries with or without processing is also implicit.
development, finds itself in the paradoxical situation of
Additionally, this section of the Compact provides that
having the highest standard of living of any Latin Amer-
Puerto Rico be represented by an observer on United
ican community, and a per capita income distinctly lower
States trade negotiating delegations and that the interests
than any state. Further, the impact of oil price increases
of Puerto Rico will be taken into account as part of United
upon Puerto Rico's energy resources, as well as the
States negotiating positions, including acquisition of
two-pronged erosion of economic growth by inflation and
developing country preferences for Puerto Rico within the
recession, has had a devastating effect on its predo-
confines of the international trade obligations of the
minantly export-based manufacturing industry and on its
United States.
unemployment rate.
At the same time, the high Puerto Rican standard of
living, its Hispanic culture, and its proximity to less
economically advanced Hispanic communities have, in
10. Entry of Aliens into Puerto Rico
recent years, drawn a large number of immigrants to
a. Immigration laws, rules, regulations and procedures of the
Puerto Rico from many parts of Latin America, especially
United States shall apply to the Free Associated State in ac-
from the Caribbean. This, coupled with a population
cordance with their terms; Provided, That unless expressly prohi-
density of more than 900 persons per square mile, has
bited by Federal law, the President of the United States and the
caused, and may continue for some time to cause, Puerto
Governor of the Free Associated State may from time to time
Rico difficulties in aiding its three million inhabitants to
obtain suitable jobs and decent housing.
agree, in the light of economic and demographic considerations
applicable to the Free Associated State, to limit the number of
In 1975, more than 46,000 legal aliens were in Puerto
aliens who may be admitted to Puerto Rico or to increase the quota
Rico, of whom almost 40,000 are permanent residents.
of aliens who may be admitted to Puerto Rico as resident aliens to
Statistically, Puerto Rico ranks 16th among the states, the
meet the needs of the Free Associated State for scientific, profes-
Virgin Islands and Guam in the number of legal aliens
26
27
Document source description
This file contains a published report of the Ad hoc Advisory Group on Puerto Rico.
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"ocrText": "required for each new manufacturing job. Other develop-\nsional, political, technical, sporting, cultural, industrial, agricultural,\ning countries are able to provide tax and other incentives,\nand educational purposes.\nequivalent to or better than those offered by Puerto Rico,\nb. Nothing included in any of the provisions of this section\nincluding much lower labor costs. Puerto Rico has lost and\nshall affect in any way the right of unimpeded transit between the\nis threatened by accelerated losses of existing and planned\nUnited States and Puerto Rico of citizens of the United States.\nindustries to developing countries which compete with and\ndisplace Puerto Rico's products in the United States\nmarket.\n10. Entry of Aliens into Puerto Rico\nThis section of the Compact proposes a new incentive\nfor industries to locate in Puerto Rico, similar to those\nPuerto Rico needs some degree of control over the\navailable to Guam and the Virgin Islands. This provision\nflow of immigration to the Island to assist its economic and\npermits duty free imports of materials for processing,\nindustrial development to overcome its extremely high\nprovided that not less than 35% in value is added in Puerto\npopulation density and its unemployment rate which is\nRico before shipment to the United States mainland\ntwice the national average of the United States.\nmarket. The right to import duty free for export to foreign\nPuerto Rico, as a result of economic and industrial\ncountries with or without processing is also implicit.\ndevelopment, finds itself in the paradoxical situation of\nAdditionally, this section of the Compact provides that\nhaving the highest standard of living of any Latin Amer-\nPuerto Rico be represented by an observer on United\nican community, and a per capita income distinctly lower\nStates trade negotiating delegations and that the interests\nthan any state. Further, the impact of oil price increases\nof Puerto Rico will be taken into account as part of United\nupon Puerto Rico's energy resources, as well as the\nStates negotiating positions, including acquisition of\ntwo-pronged erosion of economic growth by inflation and\ndeveloping country preferences for Puerto Rico within the\nrecession, has had a devastating effect on its predo-\nconfines of the international trade obligations of the\nminantly export-based manufacturing industry and on its\nUnited States.\nunemployment rate.\nAt the same time, the high Puerto Rican standard of\nliving, its Hispanic culture, and its proximity to less\neconomically advanced Hispanic communities have, in\n10. Entry of Aliens into Puerto Rico\nrecent years, drawn a large number of immigrants to\na. Immigration laws, rules, regulations and procedures of the\nPuerto Rico from many parts of Latin America, especially\nUnited States shall apply to the Free Associated State in ac-\nfrom the Caribbean. This, coupled with a population\ncordance with their terms; Provided, That unless expressly prohi-\ndensity of more than 900 persons per square mile, has\nbited by Federal law, the President of the United States and the\ncaused, and may continue for some time to cause, Puerto\nGovernor of the Free Associated State may from time to time\nRico difficulties in aiding its three million inhabitants to\nobtain suitable jobs and decent housing.\nagree, in the light of economic and demographic considerations\napplicable to the Free Associated State, to limit the number of\nIn 1975, more than 46,000 legal aliens were in Puerto\naliens who may be admitted to Puerto Rico or to increase the quota\nRico, of whom almost 40,000 are permanent residents.\nof aliens who may be admitted to Puerto Rico as resident aliens to\nStatistically, Puerto Rico ranks 16th among the states, the\nmeet the needs of the Free Associated State for scientific, profes-\nVirgin Islands and Guam in the number of legal aliens\n26\n27"
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