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- -6- - The second issue concerns the proposal that the U.S. seek to have Puerto Rico accepted by other developed countries as an "associated developing state" for purposes of inclusion in all benefits from any regional or worldwide system of preferences for developing countries. While we have no pro- blem with the concept of other developed countries according "developing country status" to Puerto Rico and extending it preference benefits, we believe that the United States is not in a position to seek such status and benefits for Puerto Rico because the United States is not prepared to extend reciprocal "beneficiary developing country" status to other areas, such as the French West Indies, which are within the customs territory of a developed country. Moreover, the opportunity for channeling developed country products through such receiving areas within a customs territory are so great and the problems of policing such an arrangement are so formidable as to render such arrangement unacceptable in most instances. Relative to the subject matter of Section 9 is subsection 2(d) which provides that the United States shall be re- sponsible for the international relations and defense of Puerto Rico, but that Puerto Rico may participate in in- ternational organizations and may enter into educational, cultural, health, sporting, professional, industrial, agricultural, financial, commercial, scientific, or technical agreements with other countries consistent with the functions of the United States as determined by the President of the United States and the Governor of Puerto Rico. The implementation of agreements with foreign countries in most of these areas would, no doubt, require the cooperation and agreement of the United States. In particular, almost any industrial, agricultural, or commercial agreement of any substance would require close consultation because of the possible effects on the United States in view of the common market and dual citizenship aspects of the U. S. - Puerto Rican relationship. Financial arrangements would have to be agreed to by the U.S. Treasury so long as the dollar is maintained as a common currency Consideration would also have to be given to requirements of the U.S. regulatory agencies, including such agencies as the U.S. Patent Office (which it is assumed will continue to protect and service the patents of Puerto Ricans) . In short, to

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    "ocrText": "- -6- -\nThe second issue concerns the proposal that the U.S. seek\nto have Puerto Rico accepted by other developed countries\nas an \"associated developing state\" for purposes of inclusion\nin all benefits from any regional or worldwide system of\npreferences for developing countries. While we have no pro-\nblem with the concept of other developed countries according\n\"developing country status\" to Puerto Rico and extending it\npreference benefits, we believe that the United States is\nnot in a position to seek such status and benefits for\nPuerto Rico because the United States is not prepared to\nextend reciprocal \"beneficiary developing country\" status\nto other areas, such as the French West Indies, which are\nwithin the customs territory of a developed country. Moreover,\nthe opportunity for channeling developed country products\nthrough such receiving areas within a customs territory are\nso great and the problems of policing such an arrangement are\nso formidable as to render such arrangement unacceptable in\nmost instances.\nRelative to the subject matter of Section 9 is subsection\n2(d) which provides that the United States shall be re-\nsponsible for the international relations and defense of\nPuerto Rico, but that Puerto Rico may participate in in-\nternational organizations and may enter into educational,\ncultural, health, sporting, professional, industrial,\nagricultural, financial, commercial, scientific, or\ntechnical agreements with other countries consistent\nwith the functions of the United States as determined by the\nPresident of the United States and the Governor of Puerto Rico.\nThe implementation of agreements with foreign countries in\nmost of these areas would, no doubt, require the cooperation\nand agreement of the United States. In particular, almost\nany industrial, agricultural, or commercial agreement of\nany substance would require close consultation because of\nthe possible effects on the United States in view of the\ncommon market and dual citizenship aspects of the U. S. -\nPuerto Rican relationship. Financial arrangements would\nhave to be agreed to by the U.S. Treasury so long as the\ndollar is maintained as a common currency Consideration\nwould also have to be given to requirements of the U.S.\nregulatory agencies, including such agencies as the U.S.\nPatent Office (which it is assumed will continue to protect\nand service the patents of Puerto Ricans) . In short, to"
}