MR. BARRALES: Thank you all for being on the call. This is Ruben Barrales. And, again, Kevin Marshall is with us on another phone, as well. I'm just going to briefly go over the report, which happens to be very short, very simple and very straightforward, and then I and Kevin are available to answer any questions that you might have.

We were pleased to be able to take the report to members of Congress this afternoon, to the President for his review, to other elected officials around Puerto Rico and other interested individuals in Puerto Rico and throughout the mainland who have expressed interest in the issue.

I assume you all have a copy of the report. It is, again, as I said, fairly simple, going over the guiding principles, the executive orders pertaining to Puerto Rico, an historical overview that gives those of you who don't have any experience with Puerto Rico and this issue gives you a quick overview, and a legal analysis of the options for Puerto Rico's status. In there we identify what we consider to be the three options allowed for -- (inaudible).

Number one is the current status, which is called the commonwealth status, which is a territorial status. It is the one that Puerto Rico has now, allows for limited self-government. Then there is statehood, which, obviously, is a permanent status. And there is independence, which is another permanent status. I need to reiterate that commonwealth or territorial status is one that we see as can be indefinite, but really at the will of Congress.

The task force makes its recommendations, and in the recommendations we do ask that Congress take up the issue within a year and allow for the people of Puerto Rico to be able to vote and decide whether they wish to retain the current territorial status or move towards a permanent status. And it provides for another recommendation that if the people choose to elect and vote for permanent status, that they be given the option of one of the two, statehood or independence. And then if they initially vote to retain the current status, which they can do, and keep it as a territory indefinitely -- (inaudible) -- periodically, Congress may wish to provide for a vote to gauge the people's will as time moves one.

So it's pretty straightforward. It really is -- as you all know, I'm sure many of you know that the issue has been going on for over a hundred years. There have been attempts to resolve it. We have worked with all parties on the island. The task force has met with anyone who has requested a meeting. We've read volumes and volumes of material. We have been, and are willing to work with any of the parties on the island or here on the mainland to help move the process forward successfully. And we hope to work in cooperation with all of those involved. And at this point, we hope that Congress will take a look at the recommendations and hopefully move the question forward.

So with that, I'm going to see if -- or ask if Kevin has anything he might want to add. MR. MARSHALL: I just want to comment on the legal question a little bit. The primary issue is whether the Constitution allows for some commonwealth status that couldn't be altered without the consent of Puerto Rico. And we conclude that it -- the Constitution does not. In reaching that conclusion, we're reaffirming the position that the Justice Department has taken for the last 14 years in both the first Bush administration and the Clinton administration and in the current administration.

But appreciate the importance of the question for Puerto Rico and for the United States. We have in the Office of Legal Counsel done a thorough reconsideration of issue, and concluded that that position is correct. And as part of that, I have met with several superb lawyers representing various interested parties and I've also received excellent written material from them, including from the former head of the office where I work and the former attorney general. And we've appreciated that input very much and I think it's made the report better. Read more Comment (0), Email this.

MR. BARRALES: Well, it is, again, for those who are not very familiar with the issue, it does provide an historical overview very briefly -- so in that sense, maybe, a road map of what's happened to date. And then it provides what I hope is a level playing field for those who are interested in moving the process forward in terms of what we think the options are that are available and our recommendations for a way to move forward, in terms of our recommendations within the report.

There may be other ways to move forward, and we're interested in working with anyone who wants to help in that regard. Read more Comment (0), Email this.

MR. BARRALES: No, this is an inter-agency report. The executive order was very specific that it is an inter-agency report, review the information, met with individuals, read material and is now presenting its recommendations and report -- more of a progress report, you might describe it as -- to the President and to members of Congress. So it is not construed as a position of the administration. MR. MARSHALL: Can I add something? This is Kevin. It was not part of our mission to state a preference or pick among the options. Our job was simply to identify what the options were under the Constitution and what a good way of getting them might be. So the report shouldn't be interpreted as endorsing any of the options that it lays out for the status of Puerto Rico. Read more Comment (0), Email this.

MR. BARRALES: We did electronically and in hard copy deliver copies of the report to members of Congress, and also to the governor's office -- and mainly electronically to other folks who are interested in the issue. Read more Comment (0), Email this.

MR. BARRALES: It's an excellent question. There's absolutely no requirement, and so I think that's important for people to understand. We are trying to help move the process forward, and so we've provided what we hope are helpful recommendations and analysis of the issue. Read more Comment (0), Email this.

MR. BARRALES: As a matter of fact, in the recommendations, we do recommend that Congress set a date certain for an election, hopefully within a year, or at least start hearings within the year to begin moving the process forward. Read more Comment (0), Email this.

Q Okay. And let's just say that they don't take any action, I mean, in the status. As you said, this is an attempt to try to get -- to move things forward. So if there was no action taken, it would still be the status quo, then, here? ... Read more Comment (0), Email this.

MR. BARRALES: No, I do not believe so. Read more Comment (0), Email this.

MR. BARRALES: No. Read more Comment (0), Email this.

MR. BARRALES: I understand. I'm very familiar with that. No, it doesn't -- the report, itself, doesn't change the status quo at all, and basically we think the people of Puerto Rico should be given an option to choose the particular status that (inaudible) that they think would work best for (inaudible). And, no, I don't think it conflicts at all with what happened in the -- Read more Comment (0), Email this.

Q The popular Democratic Party, or the executive branch, is saying already that it's a vague report, that, in some sense, you are forcing the issue because that will be -- you are trying Puerto Rico to go to statehood or independence, and probably the alternative to have the votes is the commonwealth or a new commonwealth. ... Read more Comment (0), Email this.

Q I have a question regarding the time between the second -- or between the first and the second recommendation. You said that Puerto Rico should hold a plebiscite next year. And depending on the result, so the next plebiscite would be on the current status or the independence or the conversion of Puerto Rico in another state of the U.S. So do you have a time for this second plebiscite in Puerto Rico? ... Read more Comment (0), Email this.

Q I have a couple of questions, if I could. The first one is, why did you -- why do you, in your proposal, why do you suggest that there be a plebiscite between -- for people to decide whether they want to remain as a commonwealth or go into either independence or say -- why don't you just have a plebiscite where all three choices were given at the same time? ... Read more Comment (0), Email this.

MR. BARRALES: Kevin may want to -- Read more Comment (0), Email this.

MR. MARSHALL: I would just say that in the recommendations, we do make the point that in ascertaining the will of the people of Puerto Rico, which is, of course, paramount, we want to try to do it in a way that gives clear guidance to Congress or future actions. Some of the prior votes, I think we'd all agree, have not provided clear guidance. And it seemed to us that there was a clear distinction between on the one hand, the current status -- which can be indefinite, but wouldn't be described as permanent -- and on the other hand, statehood and independence. And even though those two are different from each other, they're both a change and what could be called a permanent status, so that choice seemed like a natural first step. Read more Comment (0), Email this.

MR. BARRALES: Let me address -- Kevin, I'm sure, will have something to add. Actually, no, we think it is quite independence. We really think free association would be a configuration of the people and Congress choosing independence. In other words, we could see a scenario where if the people and Congress chose to move in the direction of independence, they might (inaudible), but we want to remain closely associated with the United States, that that would be moving towards independence. And then the details of which we don't get into in the report, but there are issues that relate to dual citizenship, that relate to other ties that would bind the two together. Read more Comment (0), Email this.

MR. MARSHALL: I can grab that, if you want. MR. BARRALES: All right, Kevin, please. MR. MARSHALL: I think in terms of the recommendations we laid out, I think that would fit in recommendation two. If they were to decide between statehood and independence and to choose for independence, that would be a kind of independence. I think you'll see a fuller explanation of that in the legal analysis. We could talk about Micronesia and the Marshall Islands in Palau. We make clear that free association is a form of independence, but still a variation.

So I think ultimately that would be for Congress, the kind of step two stage, to spell that out and determine how to go about determining the exact nature of the independence, because we do explain that. Read more Comment (0), Email this.

MR. BARRALES: I'm sorry? Read more Comment (0), Email this.

MR. BARRALES: Potentially. We do not prohibit that, in terms of our recommendation. Read more Comment (0), Email this.

Q I just have one last issue I wanted to discuss with you guys. You very clearly say in the recommendation that it is the people of Puerto Rico -- and you reiterated that in this conference -- that it is the people of Puerto Rico that would have to make a choice as to status, right? ... Read more Comment (0), Email this.

Q Now, it makes me think -- and I want you to react to that conclusion -- that this report could be interpreted as more the White House passing the ball along to the Congress and the people, than actually intervening with a voice as to what should be done. ... Read more Comment (0), Email this.