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<text id=90TT0742>
<title>
Mar. 26, 1990: Puerto Rico, the 51st Estado
</title>
<history>
TIME--The Weekly Newsmagazine--1990
Mar. 26, 1990 The Germans
</history>
<article>
<source>Time Magazine</source>
<hdr>
NATION, Page 19
Puerto Rico, the 51st Estado
</hdr>
<body>
<p>Statehood gains momentum with a boost from Bush
</p>
<p> A scale model of the Statue of Liberty evoked memories of
Tiananmen Square. A mock barrier, dubbed the Wall of
Colonialism, was battered down as demonstrators cheered. It
might have been an anti-Soviet prop at an independence rally
in Lithuania. Instead, this was in the city of Ponce in
southern Puerto Rico, and the 125,000 yellow-clad marchers were
not calling for the island's freedom but to join the U.S. as
the 51st state.
</p>
<p> The March 10 rally was surprising for its size, spirit and
the message emblazoned on some banners: LA ESTADIDAD ES PARA
LOS POBRES. Statehood for the poor? In Puerto Rico's
triangulated politics, the statehood cause had been monopolized
by the upper class. A small faction of nationalists and
leftists fought, occasionally with guns, for total
independence. The rest of the population appeared content with
commonwealth status, the pragmatic option in effect since 1952.
As an American commonwealth, or "associated free state" in
island usage, Puerto Rico has received enough benefits and tax
concessions from Washington to make it rich by Caribbean
standards. But it remains impoverished compared with the
mainland, with half the per capita income of Mississippi.
</p>
<p> Now the triangle has been rearranged. The New Progressive
Party, led by former Governor Carlos Romero Barcelo, argues
that statehood would mean not only political equality but also
more food on the table. The Popular Democratic Party, under
incumbent Governor Rafael Hernandez Colon, contends that only
an "enhanced" version of commonwealth can protect the island's
economy as well as its Hispanic culture. Judging by polls and
street-corner opinion, Romero's statehood campaign today enjoys
momentum. When the Popular Democrats staged a rally in
Mayaguez, only 75 partisans showed up. Watching the Ponce
parade, Luisa Rodriguez, an unemployed mother of seven, said,
"I don't know if the North Americans want Puerto Rico, but the
Puerto Ricans want a better form of life. If there is no
statehood, I will move to Ohio. In Ohio, they treat you well."
</p>
<p> Washington helped promote the change in political dynamics.
In January 1989 Hernandez proposed that Congress give formal
blessing to a plebiscite with three options: independence,
statehood or a modified form of commonwealth giving the island
greater self-government. A month later, George Bush endorsed
the proposal and reaffirmed the G.O.P.'s traditional support
for statehood. But Bush signaled that he intended more than the
token effort made by Republican predecessors. Bush and the
Republican National Committee are trying to pry Hispanics from
their traditional Democratic loyalty. Proposing full political
equality for the island seized from Spain in 1898 helps that
effort.
</p>
<p> The Senate Energy and Natural Resources Committee last
summer approved a bill that would sanction a binding plebiscite
in 1991. However, the details horrified the Governor's faction:
under the Senate bill, the statehood option seems an instant
gold mine. Islanders would get a congressional delegation plus
full parity with the other 50 states in federal welfare
assistance immediately, while the present full exemption from
federal taxes on individuals and companies would be phased out
only gradually. About 40% of the island's 3.3 million residents
now qualify for federally supported food assistance. According
to Hernandez, average monthly benefits for a family of four
would climb from $199 to $331.
</p>
<p> These terms allowed Romero to proclaim statehood a bonanza
for ordinary citizens. Hernandez denounced the Senate draft as
"terribly, dangerously and unacceptably unbalanced." Now the
commonwealth faction seeks help from the House. The island
demonstrations coincided with a visit by the House Subcommittee
on Insular and International Affairs, which is writing its own
measure.
</p>
<p> While demands for a swift resolution escalate on the island,
many members of Congress have barely focused on the full impact
of a plebiscite that would commit Washington to the outcome in
advance. A new economic forecast circulated by Hernandez this
month estimates that under the terms of the present Senate
draft, statehood would cost the Treasury nearly $25 billion by
the year 2000. According to this projection, many large
companies would leave the island once they had to pay full
federal taxes, doubling the already brutal unemployment rate to
about 30%.
</p>
<p> These pitfalls and Hernandez's complaints may cause Congress
to delay indefinitely. That could benefit statehooders on the
island and Republicans on the mainland. Hernandez would be
blamed for the derailment, giving Romero a fine opportunity to
recapture the governorship in 1992. In courting Hispanics, Bush
would hold the Democratic Congress responsible for denying
Puerto Rico an opportunity to choose its own political fate at
a time when self-determination is the global fashion.
</p>
<p>By Laurence I. Barrett. With reporting by James Carney/Ponce.
</p>
</body>
</article>
</text>