[Congressional Record Volume 141, Number 118 (Thursday, July 20, 1995)]
[Senate]
[Page S10428]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


SENATE RESOLUTION 155--RELATIVE TO UNITED STATES/JAPAN AVIATION DISPUTE

  Mr. PRESSLER (for himself, Mr. Stevens, Mr. Baucus, Mr. Bond, Mrs. 
Boxer, Mr. Brown, Mr. Bumpers, Mr. Cochran, Mrs. Feinstein, Mr. Gorton, 
Mr. Hollings, Mr. Kerry, Mr. Lautenberg, Mr. Lott, Ms. Moseley-Braun, 
Mr. Murkowski, Mr. Packwood, Mr. Pell, Mr. Pryor, Mr. Roth, and Mr. 
Simon) submitted the following resolution; which was referred to the 
Committee on Foreign Relations:

                              S. Res. 155

       Whereas the Governments of the United States and Japan 
     entered into a bilateral aviation agreement in 1952 that has 
     been modified periodically to reflect changes in the aviation 
     relationship between the two countries;
       Whereas in 1994 the total revenue value of passenger and 
     freight traffic for United States air carriers between the 
     United States and Japan was approximately $6 billion;
       Whereas the United States/Japan bilateral aviation 
     agreement guarantees three U.S. carriers ``beyond rights'' 
     that authorize them to fly into Japan, take on additional 
     passengers and cargo, and then fly to another country;
       Whereas the United States/Japan bilateral aviation 
     agreement requires that, within 45 days of filing a notice 
     with the Government of Japan, the Government of Japan must 
     authorize United States air carriers to serve routes 
     guaranteed by their ``beyond rights'';
       Whereas United States air carriers have made substantial 
     economic investment in reliance upon the expectation their 
     rights under the United States/Japan bilateral aviation 
     agreement would be honored by the Government of Japan;
       Whereas the Government of Japan has violated the United 
     States/Japan bilateral aviation agreement by preventing 
     United States air carriers from serving routes clearly 
     authorized by their ``beyond rights''; and
       Whereas the refusal by the Government of Japan to respect 
     the terms of the United States/Japan bilateral aviation 
     agreement is having severe repercussions on United States air 
     carriers and, in general, customers of these United States 
     air carriers: Now, therefore, be it
       Resolved, That the Senate--
       (1) calls upon the Government of Japan to honor and abide 
     by the terms of the United States/Japan bilateral aviation 
     agreement and immediately authorize United States air cargo 
     and passenger carriers which have pending route requests 
     relating to their ``beyond rights'' to immediately commence 
     service on the requested routes;
       (2) calls upon the President of the United States to 
     identify strong and appropriate forms of countermeasures that 
     could be taken against the Government of Japan for its 
     egregious violation of the United States/Japan bilateral 
     aviation agreement; and
       (3) calls upon the President of the United States to 
     promptly impose against the Government of Japan whatever 
     countermeasures are necessary and appropriate to ensure the 
     Government of Japan abides by the terms of the United States/
     Japan bilateral aviation agreement.

  Mr. PRESSLER. Mr. President, I rise today to submit a resolution 
expressing the concern of the United States Senate over the Government 
of Japan's violation of the bilateral aviation agreement between our 
two countries and its continued refusal to respect this agreement.
  I am pleased so many of my colleagues from both sides of the aisle 
have joined me in submitting this resolution. It speaks volumes about 
the importance of the issue. In particular, I thank my good friend from 
Alaska, Senator Stevens, who has worked very closely with me on this 
matter for some time.
  As I said last month when I addressed the Senate at length on the 
United States/Japan aviation dispute, this issue is extraordinarily 
straightforward: Should the United States allow Japan to unilaterally 
deny United States carriers rights guaranteed those carriers by the 
United States/Japan bilateral aviation agreement? The clear and 
unequivocal answer is ``no.''
  If we tolerate and accept this breach, it would establish a very 
dangerous precedent for U.S. international aviation relations. The 
Chinese among others are very carefully watching how the United States 
reacts in this dispute. The potential ramifications are much broader 
than aviation. We would send the nations of the world the message it is 
okay to pick and choose which provisions of agreements with the United 
States they want to abide by. That is a very dangerous message. One we 
must not send.
  I was pleased when the Department of Transportation issued a show-
cause order to the Government of Japan on June 19 in response to its 
violation of our air service agreement. The administration was 
absolutely correct in doing so. If anything, the show-cause order could 
have been issued sooner, but quite correctly, the administration was 
patient in its good faith talks to try to resolve this dispute. The 
Government of Japan left us with no other option.
  A month has passed since the show-cause order was issued. The United 
States continues to negotiate in good faith with the Government of 
Japan. Unfortunately, the Government of Japan continues to refuse to 
honor the United States/Japan bilateral aviation agreement. I am not 
surprised because time is on the side of Japan. The longer Japan 
delays, the longer they prevent our carriers from competing against 
their inefficient carriers. Time is definitely on their side.
  Mr. President, for today and the future, the economic stakes of this 
trade dispute are tremendous and therefore the administration must be 
prepared to impose strong countermeasures. We cannot negotiate 
indefinitely while our carriers suffer severe economic damages.
  I cannot emphasize enough the significance of the economic stakes of 
the United States/Japan aviation dispute. For example, in 1994 the 
total revenue value of passenger
 and freight traffic for United States carriers between the United 
States and Japan was approximately $6 billion. During that same year, 
the value of cargo shipped by air between the United States and Japan 
was roughly $47 billion. This figure increases to approximately $132 
billion when one considers the value of cargo shipped by air between 
the United States and all Asian countries. These figures speak loudly 
for themselves.

  These statistics are indeed impressive. Yet they do not tell the 
whole story. While both the current size and the potential for the 
future of our aviation market to Japan and beyond to other Asian 
countries are impressive, the figures cited earlier do not rise to 
their proper level of significance until one considers the more than 
$65 billion trade deficit the United States currently has with Japan.
  As chairman of the Senate Committee on Commerce, Science, and 
Transportation, all too often I see parochial fighting among U.S. air 
carriers undermine our country's international aviation policy. This 
infighting sets off a chain reaction on Capitol Hill. The political 
firestorm that results unfortunately often prevents the Secretary of 
Transportation from making the strongest possible international 
aviation agreements. Instead, we accept international agreements that 
may serve the best political interest of an administration, but that 
all too often fail to produce the greatest possible economic gain for 
our country. Foreign nations know this is our Achilles heel in 
international aviation negotiations. They know it and they exploit it.
  Mr. President, this resolution puts the Senate on record in clear 
opposition to the actions of the Japanese Government. It is designed to 
place the administration in a position of political strength from which 
it can deal with this vitally important international aviation matter. 
I had hoped the show-cause order would serve as a wake-up call to the 
Government of Japan. Apparently it has not.
  It is my hope this resolution will further drive home the message to 
the Government of Japan that international agreements are to be 
honored, not unilaterally disregarded. I urge all of my colleagues to 
support this resolution.



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