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