Tax Treatment of U. S. Concerns with Puerto Rican Affiliates

Lombardo, Anthony, secretary-manager, Better Business Bureau of
Puerto Rico, 1900 Fernandez Juntos Avenue, Santurce, P.R..
Martinez, John, vice president, Government Development Bank for
Puerto Rico, Edificio Flamingo, Parada 19, Ponce de Leon Avenue,
Santurce, P.R...

Ondina, Danilo, vice president of finance of the Puerto Rico Industrial
Development Co., Post Office Box 2672, San Juan, P.R.; accom-
panied Rafael Durand__

Pedraza, I. P., de, Director, Santurce Field Office, U.S. Department
of Commerce, room 628, 605 Condado Avenue, Santurce, P.R..
Ramírez, Hon. José Ramón, Under Secretary of Commerce, Common-
wealth of Puerto Rico, Apartado 9177, Santurce, P.R.; accom-
panied by Paula Van Hyning, Special Assistant to the Secretary..
Van Hyning, Paula, Special Assistant to the Secretary, Department
of Commerce, Commonwealth of Puerto Rico, Apartado 9177,
Santurce, P.R.; accompanied José Ramón Ramírez..

Vélez, Hon. Ramón, Under Secretary of the Treasury, Commonwealth

of Puerto Rico, Calle San José, Edificio La Intendensia, San Juan,

P.R...

179.

167

178

158

124

Yordán, Hon. Antonio, branch manager for Puerto Rico and the

Virgin Islands, Small Business Administration, 1200 Ponce de Leon

Avenue, Santurce, P.R..

147

EXHIBITS

1. Passenger traffic to and from Puerto Rico, 1940-62, and July 1963 to

March 1964__.

2. Organization of Puerto Rico Planning Board, chart..

3. Organization of the government of the Commonwealth of Puerto

Rico, chart..

4. "The Puerto Rico Planning Board," speech by Chairman Ramón

Garcia Santiago.......

5. Summary of economic-social indicators of Puerto Rico, 1940–63_.

6. Comparative cost of living in Puerto Rico, figures.--

7. Production of beef, poultry, and fresh milk in Puerto Rico, tables..

8. Hourly wages, comparison between Puerto Rico and various other

countries, tables..

9. Average hourly earnings of production workers in manufacturing

(United States and Puerto Rico), March 1963, table_-.

10. United States-Puerto Rico wage differentials, table...--

11. Average annual rate of growth in the real per capita income for selected

countries, table..........

12. Percentage increase over previous year of gross product in 1954 dollars,

chart.....

13. Gross product of the Commonwealth of Puerto Rico for the fiscal years

of 1940 and 1947 to 1963__

14. Puerto Rico's gross national product: 1942-63, chart....

15. Rate of growth of the gross national product: comparison between

Puerto Rico and continental United States, chart..

16. Rates of growth, comparison between Puerto Rico and continental

United States, chart..

17. Growth of exports from Puerto Rico, 1940-63, chart..

18. Exports from Puerto Rico to the United States and foreign countries,

table...

19. Exports from Puerto Rico, by principal groups, chart.

20. Value of exports and imports to and from continental United States

and foreign countries, fiscal years 1901-56, table---

21. Members of the Puerto Rico Planning Board...

22. Federal programs from 1932-33 to 1939-40, and from 1940-41 to 1946-
47, tables

23. Puerto Rico's development program, statement of philosophy..

24. Functional distribution of public expenditures in Puerto Rico, table...

25. Private accredited schools-selected statistics: school years 1956-57 to

1960-61, table___.

26. School age population and enrollment: fiscal years 1958-61, table---

27. Number of classrooms and total enrollment at college level, by institu-

tion: school years 1956-57 to 1960-61, table_.

28. Literacy table (English), 1950 and 1960--

29. Bibliography of economic development program of Puerto Rico___

30. Studies and papers prepared by office of economic research of the

economic development administration__

31. Financing economic development, statement, including:

(a) Table of sources of investment capital from 1947-60–

(b) External capital financing, table_-

Puerto Rico, 1958-63, chart..

Page

***** * * * * ** * ** ** ** *58 99 *** * ** *58 885 8RF* 2 ** ** *

32. Personal consumption expenditures in Puerto Rico by type of product. 50-57

33. "Investment Patterns," statement on capital formation___

34. "Local Investment in Puerto Rican Manufacturing," SBA manage-
ment research summary of May 1961..

35. Industrial buildings constructed by PRIDCO, chart--

36. Organization of economic development administration, chart_

37. Annual increments in employment Fomento-promoted plants: June

1951-63, chart___

38. Plants that started operation since 1947 and up to 1963, chart_-

39. Puerto Rico as U.S. fifth largest market, chart.-

40. Net migration from Puerto Rico, chart_ _ -

41. Leading executives of the American Development Administration

and Puerto Rico Industrial Planning Co., list.

42. Staffing of the department of industrial promotion of EDA's con-

tinental operations branch -

43. U.S. plants in Puerto Rico (1953-63), graph...

44. Record of Fomento-promoted and assisted manufacturing plants, by

calendar year as of February 1964, table---

45. Reports on profit shifting transmitted to Office of Tax Exemption_...
46. "The Tax Man Cometh," an article by A. W. Maldonado of the San
Juan Star__.

Page

47. Reinvestment of profits of Fomento corporations, memorandum.

48. Table of sources and uses of capital funds: fiscal years 1960-63-

49. Incentives currently relied upon by Fomento to attract industries

to Puerto Rico_

50. Profitability of Puerto Rican affiliates, statement-

51. Instruction as to allocation problem, statement.

52. Overcoming weaknesses or mistakes in economic development program,

statement__

53. Puerto Rico's program of technical assistance to developing areas-

54. "Tax Exemption as a Factor in Puerto Rico's Development," study

by economic development administration _ --