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 REMARKS FOR
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION

SIGNING CEREMONY FOR U.S.-CHINA AVIATION SERVICES AGREEMENT

BEIJING, CHINA

JULY 24, 2004
10:30 A.M.

Good morning. Thank you for that kind introduction and warm welcome, Minister Yang.

Let me first begin by expressing greetings from President Bush and Vice President Cheney.

I would also like to express my personal appreciation to Minister Yang, to the Chinese government, and to the Chinese people, for your hospitality and graciousness.

My delegation and I have greatly enjoyed our visit. Over the past three days, I have met with Minister of Communications Zhang, Vice Minister of Railways Wang, and just this morning, with Minister Yang. I come away from those meetings deeply impressed by China’s growth and by its vision for managing that growth.

I also came away from my meetings with a greater appreciation for how much China and the United States have in common in the area of transportation – common strengths and common challenges – and the tremendous potential for cooperation between our two countries in maritime, mass transit, highways, and of course, aviation.

Minister Yang and I met this morning to discuss our efforts of continued cooperation on a range of civil aviation issues.

We had an excellent meeting, discussing issues of mutual interest in the areas of aviation safety, aviation security, the development of aviation infrastructure as well as aviation manufacturing. Building on a long-standing, close relationship between our agencies, we have resolved to continue our partnership in these areas.
Of course, we also discussed the landmark air services agreement that I am very pleased to sign today.

In a sentence, this agreement reflects our common understanding that the air services links between our two countries must grow to keep pace with the growing economic and social ties between our two countries.

Recognizing the extraordinary growth in economic and societal relations, our two governments successfully resolved that aviation services between our two countries must grow to ensure that transportation does not become a bottleneck – a brake on our growing relationship. Negotiated quickly and cordially, the new agreement helps to ensure that aviation is instead an engine of growth.

This agreement builds stronger connections between fast-growing U.S. and Chinese economies, bringing more opportunity, more travel and more jobs on both sides of the Pacific.

This historic pact will permit a nearly five-fold increase in weekly flights between our countries over the next six years, to a total of 249 weekly flights.

In fact, just hours ago in Washington, D.C., the Department of Transportation announced 14 new flights between the United States and China made possible by this agreement.

The Department has awarded United Airlines the rights to begin a new daily nonstop service between Chicago and Shanghai and Northwest Airlines now has the rights to operate a new daily flight from Detroit to Guangzhou, via Tokyo.

These new services will provide much needed additional capacity in new and growing markets, benefiting travelers and shippers.

The agreement will also allow for entry by new carriers. Under the agreement, we will be selecting a new cargo carrier to start service later this year, a new passenger carrier to start service next year, and another passenger or cargo carrier to begin service in 2006.

In addition, this agreement provides unlimited bilateral code sharing and virtually open skies rights at cargo hubs in China beginning in January 2007, as well as expanded air charter services.

This pact represents tremendous progress in our aviation relations, but we know that there’s more we can accomplish.

That’s why we have agreed to resume talks in 2006 to review our aviation relationship, and seek further progress on liberalizing this agreement.

We have also extended our partnership to building the infrastructure needed to support growing aviation traffic.
To that end, I am pleased to announce today the signing of a grant from the U.S. Trade and Development Agency for $500,000.

The funds are the first installment of a grant worth $1 million in total.

Today’s grant will go toward the U.S.-China Aviation Cooperation Program (ACP), otherwise known as the Wright Brothers Partnership.

This public-private program brings together our Federal Aviation Administration and a dozen U.S. aviation companies in China with one goal – to strengthen China’s aviation infrastructure.

I want to commend the American Chamber of Commerce in Beijing for its leadership in organizing and sponsoring this valuable partnership.

I also want to acknowledge the work being done in the private sector by Boeing, General Electric, Honeywell, and other companies that are teaming with their counterparts in China to further aviation safety.

Let me close by congratulating all the distinguished officials from the United States and China, who have worked so hard to make this day happen. In particular, I would like to recognize Minister Yang. Your Excellency, it is your vision, tenacity, and creativity that must be credited for the new era of aviation partnership.

I appreciate this opportunity to speak with you today. Thank you again for your graciousness and hospitality.

May the good relations between the United States of America and the People’s Republic of China continue to grow and flourish.

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