Letter to the Speaker of the House of Representatives and the President of the Senate on the Designation of Guyana as a Beneficiary Developing Country

 

November 18, 1988

 

Dear Mr. Speaker: (Dear Mr. President:)

 

Pursuant to section 212 of the Caribbean Basin Economic Recovery Act (CBERA), I wish to inform you of my intent to designate Guyana as a beneficiary of the trade-liberalizing measures provided for in this Act. Designation will entitle the products of Guyana, except for products excluded statutorily, to duty-free treatment for a period ending on September 30, 1995. As a beneficiary, Guyana also may become eligible for investments using funds generated in Puerto Rico under section 936(d)(2) of the Internal Revenue Code and re-lent to eligible Caribbean Basin countries at favorable rates, and for the convention expense tax deduction under section 274(h) of the Internal Revenue Code of 1954, by entering into an exchange of information agreement with the United States on tax matters.

 

Designation is an important step for Guyana in its effort to revitalize and rebuild its weakened economy. Designation also is significant because it is further tangible evidence of the constructive cooperation between the United States and the peoples and governments of the Caribbean Basin.

 

My decision to designate Guyana flows out of discussions concluded last month between this Administration and the Government of Guyana regarding the designation criteria set forth in section 212 of the CBERA. Guyana has demonstrated to my satisfaction that its laws, practices, and policies are in conformity with the designation criteria of the CBERA. The Government of Guyana has communicated on these matters by letters to Secretary of State Shultz and Ambassador Yeutter and in so doing has indicated its desire to be designated as a beneficiary (copies of the letters are enclosed). On the basis of the statements and assurances in these letters, and taking into account information developed by the U.S. Embassy and through other sources, I have concluded that the objectives of the Administration and the Congress with respect to the statutory designation criteria have been met and that designation is appropriate at this time.

 

I am mindful that under section 212(e) of the CBERA, as amended, I retain the authority to suspend, withdraw, or limit the application of CBERA benefits from any designated country if a beneficiary's laws, policies, or practices are no longer in conformity with the designation criteria. The United States will keep abreast of developments in Guyana that are pertinent to the designation criteria.

 

This Administration looks forward to working closely with the Government of Guyana and with the private sectors of the United States and Guyana to ensure that the wide-ranging opportunities opened by the CBERA are fully utilized.

 

Sincerely,

 

Ronald Reagan

 

Note: Identical letters were sent to Jim Wright, Speaker of the House of Representatives, and George Bush, President of the Senate.