administers 5,157 acres of lands acquired by the Puerto Rico Reconstruction Administration and which now have title III Bankhead-Jones Act status by virtue of Executive order. The national-forest lands in Puerto Rico would under provisions of article VII of S. 2023 be transferred to the Commonwealth upon determination by the President that such lands are not needed for essential public purposes of the United States. Those that were crown lands would be donated. The remainder would be transferred upon payment by the Commonwealth of the cost thereof. National-forest lands in Puerto Rico are part of the national-forest system maintained by the Federal Government in 39 States and Puerto Rico. They should not be transferred to the Commonwealth. Conveyance of these lands to Puerto Rico would establish a precedent with respect to the entire national-forest system which the States might cite to demand transfers of national-forest lands to their ownership. In addition, the Department administers approximately 5,000 acres of land having title III Bankhead-Jones Act status. Article VII, paragraph (c), would require transfer of these lands to the Commonwealth at what they cost the United States. Paragraph (d) of article VII would require a real property report similar to one now required of Federal agencies by the General Services Administration except for the required justification of continued Federal ownership and control of such property. We believe that continued Federal ownership should be otherwise considered and decided and that the report required by paragraph (d) is undesirable and unnecessary. For the foregoing reasons we consider that article VII as it would be amended by S. 2023 is objectionable. To be made acceptable we recommend that this article be amended to provide that (1) Federal property would not be transferred if it is needed to be retained by the Federal Government for public purposes, and (2) the requirement for reporting under paragraph (d) be eliminated. The Bureau of the Budget advises that there is no objection to the submission of this report. Sincerely yours, TRUE D. MORSE, Acting Secretary. U.S. DEPARTMENT OF LABOR, OFFICE OF THE SECRETARY, Hon. HENRY M. JACKSON, Chairman Designate, DEAR SENATOR JACKSON: This is a further reply to your request for our views on S. 2023, a bill to provide for amendments to the compact between the people of Puerto Rico and the United States. Among other things, the bill would indicate those laws of the United States which are to be applicable to the Commonwealth of Puerto Rico. It would provide that, with certain exceptions, the internal revenue laws of the United States shall have no application to Puerto Rico. However, it provides that certain social insurance laws of the United States would be extended to Puerto Rico as if it were a State. Provisions of the bill would become effective only after approval by a majority of the qualified voters in Puerto Rico in a referendum held for that purpose. With respect to statutory laws of special interest to the Department of Labor, we assume that the bill is intended to effect the extension of the Federal-State unemployment insurance system to the Commonwealth of Puerto Rico as a social insurance law. The Department of Labor favors such an extension and has supported specific legislative proposals designed to achieve this result. The bill is not clear, however, as to its effect on the Federal-State unemployment insurance system, since it merely provides that "social insurance" laws shall be applicable and does not relate this to specific provisions of law which may create difficulties. The Federal Unemployment Tax Act, for example, which is one of the statutes applicable to the Federal-State unemployment insurance system, is also one of the internal revenue laws of the United States. According to the literal terms of subsection (g) of article III of section 4 of the compact as amended by the bill, such laws are to have no force or effect in Puerto Rico. If extension of the Federal-State unemployment insurance system to Puerto Rico is to be effected, you may wish to give consideration to inclusion in the bill of language which would deal with the specific problems that may be involved. We would be happy to furnish the committee and its staff with technical assistance for this purpose. Certain other provisions of the bill, particularly subsections (b) and (c) of article IX of section 4 of the compact as amended, are worded in general terms which make it difficult to determine what effect they may have upon unemployment compensation laws or other statutes administered by or of concern to the Department of Labor. The Bureau of the Budget advises that there is no objection to the submission of this report. Sincerely yours, JAMES O'CONNELL, Acting Secretary of Labor. (Committee Note: Subsequent to the hearings on S. 2023 the following additional reports from executive agencies were received and are included in the printed record at the direction of Senator Jackson.) STATE DEPARTMENT, Washington, D.C., August 10, 1959. Hon. HENRY M. JACKSON, Chairman Designate, DEAR SENATOR JACKSON: The Department of State has studied the bill (S. 2023) to provide for amendments to the compact between the people of Puerto Rico and the United States, forwarded by your letter of May 26, 1959. The Department of State views with favor legislation which would clarify and strengthen the full measure of self-government which the United States has granted to Puerto Rico. It is pertinent to recall that in 1953 the U.S. Government notified the United Nations that, with the establishment of the Commonwealth on July 25, 1952, the people of Puerto Rico had obtained a full measure of self-government. The U.S. Government memorandum to the United Nations at that time traced the successive advances which had been made in the growth and development of self-governing institutions in Puerto Rico and in the vesting of powers of government in the Puerto Rican people and their elected representatives. It concluded that as a result of the change in the position and status of Puerto Rico the United States considered it unnecessary to transmit further information to the United Nations on Puerto Rico under article 73(e) of the United Nations Charter. The U.S. memorandum described the present Commonwealth status as a voluntary relationship with the United States. The term "Commonwealth," it was explained, was adopted by Puerto Rico as the official English designation of the body politic created by the constitution of Puerto Rico. Within the responsibilities of the Department of State for the conduct of foreign affairs of the United States are included those affairs as they affect Puerto Rico or its citizens. It is believed that the continuance of this responsibility in the Secretary of State of the United States would not be altered by the bill nor does there appear to be intent to the contrary. This is made clear by the context of the proposed bill and especially by article IX (a) of the draft revision to section 4 of Public Law 600 as contained in the bill. The phraseology in the preamble of the bill, however, where the words "the Commonwealth of Puerto Rico is associated with the Federal Union on the basis of common citizenship, common defense, and international political relations, a common market ***" are used, seems not to express clearly this concept. The Congress might wish to give consideration to a change in the preamble to correct any confusion which might exist or arise on this point. In any rephrasing that might be agreed upon, the Department of State would recommend that the term "foreign relations" or "international affairs" or a combination of these words be used instead of "international political relations." The foreign relations of the United States though in the broad sense political in nature, are also conducted in other fields which might be construed to be excluded by a narrow interpretation of the word "political." In addition to the foregoing general comment on the bill and its preamble, the Department wishes to make the following observations on specific sections of the proposed revision of section 4 of Public Law 600, 81st Congress. Except as explained in general in the above paragraphs, the Department has no comments at this time on articles I, II, III, VI, VII, IX, X, XIÌ, XIII, XIV, or XV of the proposed revisions to section 4 of Public Law 600 contained in the bill, nor to section 2 and section 3 of the bill, to the extent its responsibilities for the conduct of the foreign relations of the United States or other delegated responsibilities are concerned. Article IV S. 2023, recently introduced in Congress, provides for amendments to the compact between the people of Puerto Rico and the United States. Among other things, it provides that the President may negotiate trade agreements or special provisions in such agreements applicable only to Puerto Rico. The intention of the trade and tariff provisions of the bill appears to be to give greater recognition to Puerto Rico's special status as a Commonwealth by providing a legal basis for the negotiation of trade agreements by the United States under which Puerto Rico would be entitled to tariffs and to customs regulations differing from those applied by the Federal Union and its possessions. From the point of view of foreign policy, the Department of State has no objection to such a result; however, it has the following comments. Article IV (b) of S. 2023 provides that Puerto Rico's "tariffs, customs and duties" shall be the same as those upon articles imported into the United States except for coffee and for articles which Puerto Rico and the Congress agree shall receive different treatment. The Department assume that it is not the intention of this paragraph to narrow the authority to negotiate trade and commercial agreements, or special provisions in such agreements, for Puerto Rico which article IV (f) grants to the President. The Department also assumes that this paragraph intends to apply the same prohibition against the use of quantitative restrictions on imports into Puerto Rico from ports other than those of the United States which article IV (a) applies to the use of such restrictions on articles produced or manufactured in the United States and transported into Puerto Rico. To clarify these two points the Department suggests that article IV (b) be amended to read: "All articles imported into Puerto Rico from parts other than those of the United States shall be free of quantitative restrictions other than those that could be placed on such commerce if Puerto Rico were a state of the Union and subject to the provisions of Sec. 8 of Article I of the Constitution of the United States, and the tariffs, customs and duties levied, collected and paid upon all such articles shall be the same as those required by law to be collected upon articles imported into the United States from foreign countries except as modified by a trade or commercial agreement, or special provisions in such agreements negotiated by the President under Article IV (f), or as Congress may otherwise provide: Provided, however, that on all coffee in the bean or ground imported into Puerto Rico, there shall be levied and collected a duty in such amount as may be fixed by the Commonwealth of Puerto Rico, any law or part of law to the contrary notwithstanding." The Department assumes that article IV (f) is not intended to be retroactive in effect; that is, that it is intended to cover only trade and commercial agreements, or special provisions in such agreements, negotiated after the passage of this bill. The Department suggests that this point be clarified by amending that paragraph to read: "The President of the United States may, within the limits of the President's authority under applicable Federal law, negotiate future trade and commercial agreements, or special provisions in such agreements, applicable to Puerto Rico, and relating to commodities or articles of particular importance to the economy of Puerto Rico." Article IV (b) and (f) of S. 2023 require the "request of the Commonwealth of Puerto Rico" for the application to it of tariff and customs regulations differing from those applicable to the United States, while article XV requires the "consent of Puerto Rico" before the laws of the United States may be applied in Puerto Rico. Section 3 of this bill requires that, before it goes into effect, the bill be approved "by a majority of the qualified voters of Puerto Rico participating in a referendum to be held in accordance with the laws of the Commonwealth of Puerto Rico." Thus it appears that the bill intends to provide for increasing popular participation in determining the position of Puerto Rico on actions affecting it which may be taken for it by the United States. The question whether and to what extent the powers conferred by the sections of the bill which are discussed herein should be limited or conditioned by "requests," "consents," or other similar expressions denoting Puerto Rican action, involves matters which are outside the functions of this Department. Whatever the disposition of these questions, as to which we express no opinion, the bill, if such consents or requests are ultimately included, should precisely delineate the procedure that is required to show such "request" and the "consent" of Puerto Rico. The redrafted articles IV (b) and (f) set forth above therefore have omitted reference to such "requests" or "consents." They could be amended, if necessary, to conform with the formula, if any, decided upon in this respect. Article V This article deals with the U.S. citizenship status of citizens of Puerto Rico and persons born in Puerto Rico, and with residence in Puerto Rico as a basis for naturalization as a citizen of the United States. The matter of naturalization is one over which the Attorney General has jurisdiction under the provisions of section 103 of the Immigration and Nationality Act. Section 104 of that act charges the Secretary of State with the determination of nationality of a person not in the United States. The Department would perceive no problem in the administration of the provisions of this section in regard to persons outside the United States. Article VIII The terms of this article do not appear to be in conflict with this Government's position on the breadth of territorial seas, the Continental Shelf, or other law of sea matters and hence should raise no international problems. Article XI This article provides that the Commonwealth of Puerto Rico shall be represented in the Congress of the United States by a Commissioner of Puerto Rico to the United States. It further provides that the Commissioner shall be entitled to receive official recognition as such Commissioner by all departments of the Government of the United States upon presentation, to the Department of State, of a certificate of election issued by the Governor of the Commonwealth of Puerto Rico. These provisions are identical in most respects with section 36 of the Puerto Rican Federal Relations Act, [39 Stat. 963 (1917), 48 U.S.C. 891, (1952)] and with the provisions of the act of April 11, 1900 [31 Stat. 86]. In regard to the Department of State responsibilities the only difference appears to be that the proposed bill provides that the presentation of the certificate of the Commissioner of Puerto Rico shall be "to" rather than "through" the Department of State as now contained in the Federal Relations Act. Pursuant to the provisions of these laws the Department of State has for much of the period since 1900 received the certificate of election from the Resident Commissioner or the Resident Commissioner-elect and has presented him a certificate acknowledging this fact. The Department of State formerly engaged in a number of other domestic activities such as certifying presidential electors, maintaining Federal statutes and caring for the official papers of the territories. It was relieved of these responsibilities by Reorganization Plan No. 20 of 1950 [63 Stat. 203 (1949), 5 U.S.C. 133z (1952)]. It seems anomalous to continue this archaic practice with respect only to Puerto Rico unrelated as it is to the conduct of the foreign relations of the United States. Therefore, unless there is some special significance attached to the present procedure, it is recommended that the words "to the Department of State" be eliminated from article XI(a) of the bill. The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this report. Sincerely yours, WILLIAM B. MACOMBER, Jr., Hon. HENRY M. JACKSON, Assistant Secretary (For the Secretary of State). GENERAL SERVICES ADMINISTRATION, Chairman Designate, Committee on Interior and Insular Afiairs, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: Your letter of May 26, 1959, requested the views of the General Services Administration on S. 2023, 86th Congress, a bill to provide for amendments to the compact between the people of Puerto Rico and the United States. GSA is concerned only with article VII (b) and (c) of the proposed "Articles of Permanent Association" of the people of Puerto Rico with the United States, hereinafter referred to as the Articles of Permanent Association which pertains to land, buildings, and other interests or property in Puerto Rico owned or controlled by the Federal Government, and article IX (b) which relates to the effectiveness of statutory laws of the United States in the Commonwealth of Puerto Rico. Article VII (b) provides that all property ceded by Spain to the United States pursuant to the treaty of peace entered into on December 10, 1898, and which is reserved to the United States for public purposes shall continue under the control of the United States provided that the President from time to time notwithstanding any other provisions of law, shall transfer to the Commonwealth of Puerto Rico, without cost, control over or rights in such property, as such control or rights are no longer needed for essential public purposes of the United States. Public lands and appurtenant property acquired by the United States by cession from Spain were transferred to the Government of Puerto Rico by virtue of section 7 of the act of Congress of March 2, 1917, as amended (39 Stat. 954, 48 U.S.C. 747) except for property reserved by the United States for public uses. Article VII(b) provides that the Commonwealth shall pay the depreciated cost or appraised fair value of any improvements on the property which have been made by the United States and which are or may be useful to the Commonwealth. This provision offers two different bases for computation of the payment which may be vastly different in resulting values, without designating who should determine which formula to use. GSA recommends that the appraised fair value be the sole basis for computing the payment and that article VII(b) be amended by the deletion of the words "depreciated cost or" from line 2 on page 12 of S. 2023. Article VII (c) of the "Articles of Permanent Association" provides that the President, from time to time notwithstanding any other provision of law, shall dispose of land, buildings, and other interests or property in Puerto Rico owned or controlled by the United States (otherwise than by virtue of the treaty of peace with Spain) and which are not needed for essential public purposes of the United States. It further provides that the President shall first offer such property to the Commonwealth of Puerto Rico and if the Governor certifies that it is needed for public purposes, it shall be transferred to the Commonwealth at cost to the United States; and if the Commonwealth has no need for the property, it would presumably be disposed of to other interested parties. Article IX(b) provides that statutory laws of the United States, insofar as they are consistent with the articles and are otherwise applicable, shall have force and effect in respect to Puerto Rico to the same extent they would be applied to a State. If executive agencies of the United States cannot utilize Federal property pursuant to section 202 of the Federal Property and Administrative Services Act of 1949, as amended, then section 203 (e) (3) (H) of the 1949 act provides that surplus property of the United States may be disposed of by negotiation to States, territories, possessions, political subdivisions thereof or tax-supported agencies therein at the estimated fair market value of the property if satisfactory terms of disposal are obtained by negotiation. The 1949 act provides adequate authority for disposal to others of such property if disposal is not made to the Commonwealth. Since the property considered in article VII (c) would be within the definition of "property" in section 3(d) of the 1949 act, as amended, and should be disposed of under the 1949 act, without granting the Commonwealth of Puerto Rico a price preference not granted to the States, territories, or possessions of the Union, GSA is not in favor of the enactment of the proposed article VII (c) of the "Articles of Permanent Association." It is therefore recommended that S. 2023 be amended by the deletion of the text of article VII (c) of the "Articles of Permanent Association" and that the following be inserted in lieu thereof: "(c) Disposal of land, buildings, and other interests or property in Puerto Rico, owned or controlled by the United States, and not falling within the provisions of paragraphs (a) and (b) of this article, shall be accomplished in accordance with the provisions of the Federal Property and Administrative Services Act of 1949, as amended." The financial effect of the enactment of S. 2023 cannot be ascertained at this time. The Bureau of the Budget has advised there is no objection to the submission of this report to your committee. Sincerely yours, EDWARD K. MILLS, Acting Administrator. |