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During my appearance before your committee on June 17, you asked how could the Hernández-Colón administration possibly spend $120 million on publicity. Fortunately, the Governor has graciously

come to my rescue.

I am enclosing an original copy of a slick, tabloid-sized, twocolor, eight-page newspaper titled "The Governor's Bulletin: Chatting with the People" which has been printed and mailed by the Governor's Office to hundreds of thousands of households in Puerto Rico. I also enclose a partial translation of relevant passages. The blatant use of this government-financed advertising medium to advance commonwealth status is readily apparent in the headlines ("Enhanced commonwealth will expand Latin American integration", p.1; "RHC says: Commonwealth-936 formula of progress for Puerto Rico", p.3) and the content, which includes 13 photos of the Governor in 8 pages.

Assuming conservatively a printing of only 250,000 copies and the bulk mailing of only 150,000, we estimate the cost for this publication at $50,000.

If at all possible, I would appreciate that the information contained herein be included in the hearing record as further substantiation of the points raised in my testimony.

Sincerely,

Kenneth D. McClinto

President

CC: Hon. James McClure
Hon. Daniel P. Moynihan

106 De Diego Ave. Box 5 Santurce PR 00907

Governor's Bulletin: Chatting_with_the_People

[Partial translation of relevant passages]

"Enhanced Commonwealth will expand Latin American integration" (p.1)

"Governor Rafael Hernández Colón said that one of the results that the enhancement of Commonwealth status will have upon its approval by the people and by Congress, will be the expansion of Puerto Rican initiatives in favor of the regional integration of the Caribbean and Central America..."

"...Hernández Colón stated that 'within the framework of commonwealth, we Puerto Ricans have achieved our clear identification as a Latin American people and as American citizens' and added that 'within that formula we want to continue pushing for the development of the region and continue serving as a link, as a point of union, between the two great cultures of the American continent'."

"Government will determine housing needs" (p.2)

"RHC [Governor's initials] creates new urban affairs office" (p.2) "RHC says: Commonwealth-936 formula of progress for PR" (p.3)

"In his message, the Governor affirmed that commonwealth status has made possible the modernization and industrialization of Puerto Rico.

He pointed to the 'governmental autonomy that we enjoy, within our permanent union with the United States, has been the magical formula of Puerto Rico's social progress, economic development, of our identity as a people, of the preservation of our language, of the pacific well-being of all Puerto Rican families, who believe in the dignity of work and not in dependency'.

He emphasized that in 1940 the island had a per capita personal income of barely $118 and that today that income surpasses $5,000, the highest in Latin America. 'The rapid industrialization and modernization of Puerto Rico remains the wonder of America, and it's all possible thanks to the mechanisms inherent in commonwealth', he added.

"Tax exemption assures textile industry jobs" (p.3)

"...He [the Governor] emphasized that the signing of the [tax exemption] decree exemplifies the powerful economic benefits 'that have been made possible and are only possible under commonwealth, to attract industries to the country, that create and retain jobs".

"...He added that this development is possible because commonwealth provides us with a unique fiscal autonomy that is not possible in any state of the Union obligated by the U.S. Constitution to uniform tax treatment.

Hernández Colón emphasized that, thanks to commonwealth's fiscal autonomy, Puerto Rico has the freedom to decide who will pay taxes. 'We can protect our industries from competition from other countries that have low labor costs, thanks to tax exemption', according to the Governor...."

DEMOCRATS
FOR
STATEHOOD

106 De Diego Ave. Box 5 Santurce PR 00907

The CHAIRMAN. Mr. Perusse, let me ask you the same question I asked Mr. McClintock. If Puerto Rico chooses commonwealth in this referendum, should that choice be respected?

Mr. PERUSSE. If Puerto Rico chooses free association, you say?

The CHAIRMAN. Well, if they use commonwealth on the ballot and they choose it as described in the bill, should that choice be respected?

Mr. PERUSSE. would feel the same way. I think that whichever option wins, the people should respect the results of a fair and free election. No question about that.

I would like to see the plebiscite between the two options which I consider fulfill the requirements of decolonization under international law. But if the Estato Libra Associato wants to defend commonwealth, defend the indefensible, as I say in my paper, I think they should be given a chance.

The CHAIRMAN. Well, that is democracy. People have a right to choose what some people think is wrong, and that is what the election process is about.

After-hopefully, we will be able to put out a legislative product, giving the people of Puerto Rico the right to choose between three clearly defined alternatives. And if that happens, then the floor is open for everyone to say what they think about each one-why it is good, and why it is bad, and I suspect you will be a very articulate voice for your point of view.

Mr. PERUSSE. Well, let me tell you, it took me a long time to reach this particular conclusion-that those are the two real alternatives. I am not the only one who feels this way.

The CHAIRMAN. I know you are not.

Let me make one statement here, and that is on the question of whereas clauses. You covered that in your written statement, and I suspect we are not going to have any whereas clauses in any of this legislation, cause whereas clauses are-tend to be adjectives and adverbs that describe, that give a value judgment about what the provisions mean, and we think that that is more properly relegated to the political process.

Senator McClure.

Senator MCCLURE. I will attempt to be brief, Mr. Chairman. I do not intend to cover the areas which you have covered very well in your discussions up to this point. But I do have a few questions.

Mr. McClintock, as I understand what you are saying, you want us to intervene very strongly in the electoral process in Puerto Rico in order to guarantee a fairer process?

Mr. MCCLINTOCK. Either intervene directly, or get assurances from all parties that Puerto Rico itself will intervene in its electoral process.

But in whatever way you do it, whether it is indirect intervention, or it is in the pressure that this committee can informally put on the representatives of the three status options, you have to try to make sure that there are some very fair rules of the game, so that we will have a level playing field.

Senator MCCLURE. I understand that, and I want a level playing field and a fair opportunity to present it, but I am a little bit concerned about how far we can go without becoming guilty of inter

fering in the sovereignty of Puerto Rico in governing in its own processes.

Mr. Perusse, are you troubled by how far we can go in setting up the conditions for the election?

Mr. PERUSSE. Well, my thought is that the U.S. federal court, the U.S. attorney here has the responsibility for seeing that civil rights were observed in Puerto Rico. That includes in the electoral process, so that I feel that he could serve as a watchdog on this process as he does in any electoral process.

Senator MCCLURE. All right. Mr. Passalacqua.

Mr. PASSALACQUA. Senator, I believe that the degree of your intervention requested by my friend, Mr. McClintock, or I think he is my friend-it would be inappropriate. I think what we are involved here in-I believe I almost fear that each one of the ideological groups represented in these hearings, has virtually the same fear.

And that is that if you do not intervene to protect their view, that they will somehow be done in by the electoral process.

You may have noticed, or you may come to the conclusion, after you have finished with us, that we are in some ways, a politically paranoid people.

Senator MCCLURE. That does not mean they are not out to get you. I understand that. [Laughter.]

Mr. PASSALACQUA. Now, I will not let you believe that I do not have my own preferences, but this, I do not think is exactly the place for me to express my preferences.

I believe that the process must be kept as pure as possible, and that includes, shall we say, as judicious an intervention by the United States Congress and the executive as is possible.

How you measure judicious intervention, I have no idea. And I do not propose to suggest that logic, alone, should lead us to a reasonable balance.

Senator MCCLURE. Thank you very much. I am concerned, because I do want the process to be fair. I want the Puerto Rican people to believe the process is fair. How we achieve that, however, bothers me in terms of how far we should go in trying to intervene in the process, even though it is ostensibly to guarantee fairness. Now, if you have any further thoughts, any of you, I would solicit your correspondence with the committee, to give us some further advice on that subject.

Mr. Perusse, I notice that in your statement that you say that the runoff should be deleted-that it would inevitably hurt statehood and help free association, because the Independentistas will vote for free association as the lesser of two evils.

How do we guarantee that we get a free choice on the part of the Puerto Rican public, if we give them only two options in the runoff?

Mr. PERUSSE. Well, my thought would be that the free association option should withdraw.

Senator McCLURE. I understand.

Mr. PERUSSE. I recognize that the two routes to solving this dilemma is statehood or independence. If the commonwealth people insist, I think it would make much more sense to have the option, free association.

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