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REMARKS FOR
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION

INDONESIA OPEN SKIES AGREEMENT
BALI, INDONESIA

JULY 26, 2004
10:30 A.M.

Good morning. Thank you, Minister Soenarno for that gracious and warm introduction. It is indeed a pleasure to be here in Bali today.

On behalf of President Bush and Vice President Cheney, let me convey the best wishes of the people of the United States of America to the people of Indonesia.

Minister Soenarno and I have just concluded a cordial and productive meeting. We discussed the transportation priorities and initiatives facing APEC that we look forward to addressing at the Fourth APEC Transportation Ministerial meeting that starts here tomorrow.

I believe that it will be a good and productive ministerial meeting, one that helps ensure that safe, secure, and efficient transportation keeps up with the tremendous economic growth in the APEC region.

Minister Soenarno and I also discussed transportation issues of bilateral interest to both the United States and Indonesia.

Indonesia is an important transportation partner of the United States, and, in our meeting, there was a mutual commitment expressed to growing and deepening our relationship.

To that end, I am pleased to announce a major development in our bilateral transportation relationship, and that is, a new Open Skies Aviation Agreement.

For many years, Indonesia-U.S. aviation relations have been governed by an outdated agreement from the 1960s that provided only limited commercial opportunities for air carriers between our two countries.

Today, ladies and gentlemen, is a new day. Today, we are replacing that relic with a state-of-the-art aviation agreement that will open the door to more passenger and cargo services in the U.S.-Indonesia market.

Under the agreement, air carriers will have open routes, pricing freedom, charter rights, code-sharing, and open “doing business” rights. These are rights that are critical to airlines operating in today’s global aviation market.

This Open Skies agreement will encourage airlines to connect our countries, our economies, and our citizens – over 500 million people strong.

The agreement will open new opportunities for tourism, trade, and investment, encouraging Indonesians to travel to the United States and Americans to visit this beautiful country.

Our experience shows that Open Skies agreements result not only in new and increased passenger and cargo services, but also in better, lower-priced and more competitive services.

This agreement comes on the heels of the expanded aviation services agreement that I recently signed with China. Together, they represent an important step forward in the Bush Administration’s effort to create open markets for aviation services throughout the Asian region.

To fully realize the potential of aviation liberalization, Indonesia must have the proper aviation infrastructure in place to support the economic growth that will come from a new aviation regime.

Toward that end, I am pleased today to also announce three grants from the U.S. Trade and Development Agency totaling over $1.1 million.

The first grant, in the amount of $627,000, will be used to put in place the needed air traffic control systems and equipment for Indonesia to safely manage its airspace above Natuna Islands.

The second grant of $117,000 will help identify and recommend regulations for the Indonesian airline industry’s passenger reservation system.

The third grant of $443,000 will fund the assessment of security and safety at four Indonesian airports.

Minister Soenarno, the United States is pleased to provide these grants to one of our most important allies in Asia – a longstanding friend of the United States of America and a fellow democracy.

Working together, we are building a strong partnership to ensure that our nations can succeed and enjoy greater prosperity in the years to come.

I’d like to close by acknowledging the work of a large team of people who are responsible for today’s Open Skies agreement and TDA grants.

On the air services front, let me especially acknowledge our Ambassador to Indonesia Ralph Boyce, Doug Koneff, Samantha Yoder and Hugo Yon from the U.S. Embassy in Jakarta; John Byerly, Laura Faux-Gable, and Jennifer Gergen from the Department of State; and David Modesitt from our Department of Transportation, who worked assiduously on the agreement.

On the Trade and Development Agency grant, let me acknowledge the head of the TDA, Thelma Askey, who is here today, as well as her Director for the Asia Pacific Region, Geoff Jackson.

Let me also acknowledge and thank Foreign Minister Wirauda, Minister Soenarno, Director General Cucuck, and the Indonesian government team for all their tremendous hard work and vision in bringing today’s agreements about.

Have a good summer, travel safely, and thank you very much for being here today.

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