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In answer to your tons of hazardous

This is in response to your inquiry of June 20, 1988. request, it is estimated that approximately 40 million materials moves over Puerto Rico's highways each year. A large percentage is gasoline, diesel fuel, flammable gases, and corrosive materials transported in cargo tanks.

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Puerto Rico is part of the Motor Carrier Safety Assistance Program, funded by the U.S. Department of Transportation as a 80% 20% matching basis. The inspectors who inspect vehicles on the highways work under the Office of Transport Safety and Hazardous Materials of the Public Service Commission, and you may contact its director, Mrs. Enid Martinez, 758-5643, should you have any questions about their duties. Enclosed is some information you may find useful. Please contact me should you have any other questions.

Sincerely yours,

Patrick B. Meano

Patrick B. Miano
Officer-In-Charge

Enclosure

The CHAIRMAN. Thank you very much, Mr. Cerame.
Mr. Juan Bauza Salas.

STATEMENT OF HON. JUAN BAUZA SALAS, SECRETARY OF

AGRICULTURE, PUERTO RICO

Mr. BAUZA. Good afternoon, Mr. Chairman, distinguished Congressmen. My name is Juan Bauza Salas. I am Secretary of Agriculture of Puerto Rico until the end of this month.

The special condition of being a tropical island separated from the continental United States by hundreds of miles with cultures similar to most Latin American countries but with a much higher standard of living creates serious problems to all farmers in our agriculture which need to be dealt with creativity, flexibility, and justice by all the authorities involved.

Puerto Rico has a land area of 3,435 square miles with a population of over 3.3 million, a density of almost 1,000 inhabitants per square mile, one of the highest in the world.

In some important food items that we can fully produce, we only supply from 30 to 90 percent of our consumption with a few exceptions like plantains and fresh milk where we are self-sufficient.

The problem is augmented by the marked difference between the standards of living of people primarily dependent on agriculture and those dependent on industry. We have to produce as much food as possible locally because we live on an island and we are more exposed to the extreme risks that could overcome us by acts of God or manmade disasters or decisions.

In any instance, freshly produced and abundant supplies of food should be an essential goal of a government for its people.

In addition to the previous considerations, we still face another great problem that cripples our farmers in their efforts to produce more food for the country and to make a better living off their lands. That is the unfair competition from the production of other countries with nearly uncontrolled access to our markets.

Competition in itself is good. But when the imports of food and food products cannot be regulated, they hurt the farmers which in turn not only lose money, but also their hopes and their sense of commitment with their land. In the end, they abandon agriculture to find other means of support in order to survive leaving the field open to the imports of food that could be produced locally.

All countries protect themselves from imports that hurt their capability of being at least partially self-sufficient in food production. This is a matter of security and well-being of the people.

In the case of Puerto Rico, these controls are planned and enforced by the United States with the difference in cultural and geographical conditions between the mainland and our island, the decisions that affect the international trade very seldom are beneficial to us and tend to affect us negatively.

Examples of these are those related to the beef imports and the imports of pigeon peas from countries which have eliminated a considerable amount of Puerto Rican farmers from their natural occupations, reducing greatly the local production.

We have dealt with the problem by subsidizing directly or indirectly our farmers, but the subsidy strategy cannot compensate the

extremely low wages and working conditions that subsidize the imported production at its place of origin.

We have also provided a great deal of technical assistance to promote and to increase efficiency and high productivity, but this is not sufficient to compensate for the difference in prices due to dumping of products and the reduction of prices when local produc tion faces indiscriminate importations which exceed the demand from the consumers in our market.

We also have to deal with the implementation of many federal and local laws and regulations which are made to protect our citizens and consumers and which are considered necessary by other countries that export their products to Puerto Rico or do not invest in the protection of their people or their environment, which in the end increases the cost of production.

Our tropical products have to compete in the market under great disadvantages, and are fighting an impossible battle in competing with those importations without the means or mechanisms to regulate those indiscriminate importations of agricultural products that are also grown or produced in the island.

We strongly recommend that Puerto Rico be given within the scope of the proposed changes in the commonwealth the authority to locally impose tariffs on agricultural products imported from foreign countries and that the discretion of the imposition of such tariffs be regulated by the Gatt treaties signed or agreed by the United States.

The CHAIRMAN. Mr. Bauza, let me interrupt at this point so we will have time for questions.

[The prepared statement of Mr. Bauza follows:]

PRESENTATION OF THE PUERTO RICO DEPARTMENT OF AGRICULTURE
BEFORE THE COMMITTEE ON ENERGY AND NATURAL RESOURCES
OF THE UNITED STATES SENATE
JUNE 17, 1989

IT IS OUR PURPOSE IN THIS PRESENTATION TO EXPRESS THE POSITION OF THE PUERTO RICO DEPARTMENT OF AGRICULTURE IN REGARDS TO CHANGES REQUIRED TO MAKE OUR AGRICULTURE AND OUR FARMERS MORE COMPETITIVE TO ENSURE A CONTINUOUS AGRICULTURAL PRODUCTION FOR THE BENEFIT OF THE PEOPLE LIVING IN OUR ISLAND. THE SPECIAL CONDITION OF BEING A TROPICAL ISLAND, SEPARATED FROM THE CONTINENTAL UNITED STATES BY HUNDREDS OF MILES, WITH CULTURE SIMILAR TO MOST LATIN AMERICAN COUNTRIES, BUT WITH A MUCH HIGHER STANDARD OF LIVING, CREATES SERIOUS PROBLEMS TO OUR FARMERS WHICH NEED TO BE DEALT WITH CREATIVITY, FLEXIBILITY AND JUSTICE BY ALL THE AUTHORITIES INVOLVED.

PUERTO RICO HAS A LAND AREA OF 3,435 SQUARE MILES WITH A POPULATION OF 3.3 MILLION. A DENSITY OF ALMOST 1,000 INHABITANTS PER SQUARE MILE, ONE OF THE HIGHEST IN THE WORLD. IN SOME IMPORTANT FOOD ITEMS THAT WE CAN PRODUCE, WE ONLY SUPPLY BETWEEN 30 AND 90 PERCENT OF OUR CONSUMPTION, WITH A FEW EXCEPTIONS LIKE PLANTAINS AND FRESH MILK WHERE WE ARE SELF SUFFICIENT. THE PROBLEM IS AUGMENTED BY A MARKED DIFFERENCE BETWEEN THE STANDARDS OF LIVING OF PEOPLE PRIMARILY DEPENDENT ON AGRICULTURE AND THOSE

DEPENDENT ON INDUSTRY.

LOCALLY,

YET, WE HAVE TO PRODUCE AS MUCH AS POSSIBLE

BECAUSE WE LIVE IN AN ISLAND AND WE ARE MORE EXPOSED TO THE EXTREME RISKS THAT COULD OVERCOME US BY ACTS OF GOD OR MAN-MADE DISASTERS OR DECISIONS. IN ANY INSTANCE, FRESHLY PRODUCED AND ABUNDANT SUPPLIES OF FOOD SHOULD BE AN ESSENTIAL GOAL OF A GOVERNMENT FOR ITS PEOPLE.

IN ADDITION TO THE PREVIOUS CONSIDERATIONS, WE STILL FACE ANOTHER GREAT PROBLEM THAT CRIPPLES OUR FARMERS IN THEIR EFFORTS TO PRODUCE MORE

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