[Congressional Record Volume 142, Number 56 (Monday, April 29, 1996)]
[Senate]
[Pages S4314-S4315]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 UNITED STATES-JAPAN AVIATION RELATIONS

  Mr. PRESSLER. Mr. President, I rise today to discuss the most recent 
in what seems to be a never ending list of crises we have had in the 
past year with the Government of Japan regarding international aviation 
relations.
  The root of the current problem, and a number of those which have 
preceded it, is the Government of Japan's continued refusal to fully 
comply with the United States-Japan bilateral aviation agreement. The 
Government of Japan incorrectly believes selective compliance with our 
bilateral aviation agreement is acceptable. The Japanese are badly 
mistaken. Nothing short of full compliance with the United States-Japan 
bilateral aviation agreement is acceptable.
  Let me explain. The United States-Japan bilateral aviation agreement 
guarantees three United States-carriers--United Airlines, Northwest 
Airlines, and Federal Express--``beyond rights'' which authorize them 
to fly to Japan, take on additional passengers and cargo, and then fly 
to another country. That agreement requires the Government of Japan to 
authorize new beyond routes no more than 45 days after one of these 
three carriers files notice of an intention to initiate new beyond 
service. If this sounds like a relatively straightforward procedure, it 
is.
  Regrettably, the Government of Japan has made the procedure of 
initiating new beyond service anything but straightforward and 
predictable. Instead, contrary to the United States-Japan bilateral 
aviation agreement, they have turned a ``notice and fly'' provision 
into an approval process where the litmus test seems to be whether 
competition from a new route operated by a United States carrier 
threatens less competitive incumbent Japanese carriers. In fact, the 
overriding goal seems to be nothing less than imposing a de facto 
freeze on new air service by United States carriers beyond Japan. This 
violates the letter as well as the spirit of the United States-Japan 
bilateral aviation agreement and is intolerable.

[[Page S4315]]

  Mr. President, I have spoken about the problem at hand numerous times 
in this body. Unfortunately, it remains unresolved. More than a year 
ago, United Airlines notified the Government of Japan of its intention 
to start new beyond service between Osaka and Seoul, Korea. Although 
United Airlines is clearly authorized to operate this new service, the 
Japanese continue to refuse to permit it to do so. Unquestionably, 
United Airlines and its employee-owners have, and are continuing to, 
pay a very steep financial price for Japan's decision to wrongly deny 
it this valuable economic opportunity.
  The Japanese, unfortunately, have repeatedly rebuffed attempts by the 
administration to redress this violation. In fact, the most recent 
attempt was met by a threat from the Japanese that they may impose 
limits on new service by United States carriers between Los Angeles and 
Tokyo, even though the service in question is guaranteed by the United 
States-Japan bilateral aviation agreement without the threatened 
limitations. Make no mistake about it, whenever United States carriers 
are denied opportunities, the U.S. economy loses and tourism-related 
jobs in the United States are lost.
  Consistent with an amendment I offered last year on United States-
Japan aviation relations that is now part of Public Law 104-50, the 
administration has finally drawn a line in the sand to hopefully 
resolve this violation. Namely, the administration has put on hold 
Japan Airlines' request for service between Tokyo and Kona, Hawaii 
until the Japanese respect United Airlines' right to provide new 
service beyond Japan. Even though I regret temporarily depriving Hawaii 
of a new tourism opportunity, we simply should not agree to expand 
commercial opportunities for a Japanese carrier in the United States at 
the same time the Government of Japan is wrongly denying a United 
States carrier opportunities in the Asia-Pacific market.
  Although the words of the Government of Japan suggest it wants to 
move forward in United States-Japan aviation relations, Japan's actions 
are preventing us from doing so. Moreover, the Government of Japan's 
continued failure to fully comply with the existing agreement is 
eroding the trust needed to secure a broader agreement that will create 
new air service opportunities for all United States and Japanese 
carriers between and beyond our two countries.
  Mr. President, let me conclude by saying I hope the Government of 
Japan resolves the Tokyo-Kona problem it created by immediately 
complying with the United States-Japan bilateral aviation agreement. 
Also, I hope the Japanese will not compound the current problem by 
following through on its threat to impose countermeasures against 
United Airlines and Northwest Airlines if the Tokyo-Kona problem is not 
resolved to its satisfaction. Clearly, that would further undermine 
Japan's stated goal of moving forward in our aviation relationship.

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