TEXT: DOT 10/29 ON U.S.-CHINA CIVIL AVIATION RELATIONSHIP
(U.S., China agree to expand and modernize relationship)

Washington -- U.S. Secretary of Transportation Rodney E. Slater agreed with the head of China's Civil Aviation Administration to begin "informal consultations on expanding and modernizing the U.S.-China civil aviation relationship," according to a Department of Transportation press release.

"Currently, the U.S.-China aviation bilateral agreement imposes significant limits on the number of carriers that may serve the U.S.-China market, the routes they can serve, the frequencies they can operate, and the fares they can charge. In agreeing to have their officials begin an exchange of views on expanding the current relationship, Secretary Slater and Minister Chen underscored the importance of enhanced international aviation service to the development of the overall U.S.-China relationship," the Department of Transportation said.

Following is the text of the press release:

(begin text)

Slater Announces Informal Consultations
on U.S.-China Civil Aviation Relationship

U.S. Secretary of Transportation Rodney E. Slater today agreed with the head of China's Civil Aviation Administration to begin informal consultations on expanding and modernizing the U.S.-China civil aviation relationship.

During a meeting this morning, Secretary Slater and Minister Chen discussed the interest of both the U.S. and China in expanding opportunities for additional aviation services, noting that the limits on the allowable number of flights for each country will soon be exceeded. They also noted the importance of additional routes and points to be served in each country.

Currently, the U.S.-China aviation bilateral agreement imposes significant limits on the number of carriers that may serve the U.S.-China market, the routes they can serve, the frequencies they can operate, and the fares they can charge. In agreeing to have their officials begin an exchange of views on expanding the current relationship, Secretary Slater and Minister Chen underscored the importance of enhanced international aviation service to the development of the overall U.S.-China relationship.

"Consistent with President Clinton's initiative to engage China in a positive dialogue to expand our economic relations, we look forward to working with China to expand and modernize our aviation relationship," said Secretary Slater. "By bringing a more market-oriented approach to bear in the important aviation sector, we can also enhance the opportunities for commerce, trade and tourism between our two nations.

U.S.-China aviation relations are governed by a 1980 transport agreement which was last modified in 1995. It limits the number of international airlines serving the market to three for each side, restricts the number of routes and points that may be served, and limits to 27 the number of scheduled weekly flights for each country.

A report of the Air Transport Action Group this year projected that China will become the largest Asia-Pacific country for international and domestic passenger travel by the year 2010, with a total traffic projected of quadruple from 1995 to 2010. China's share of total Asia-Pacific traffic is projected to rise from 16 percent in 1995 to 26 percent in 2010, eclipsing Japan's share, with is projected by ATAG to decline from 30.8 percent in 1995 to 20.1 percent in 2010.

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