    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
    [November 5, 2003]
    [Page 1468]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 1468]]

    Message to the Senate Transmitting the Convention on International
    Interest in Mobile Equipment and the Protocol on Matters Specific to
    Aircraft Equipment
    November 5, 2003

    To the Senate of the United States:
        I transmit herewith, for Senate advice and consent to ratification,
    the Convention on International Interest in Mobile Equipment and the
    Protocol on Matters Specific to Aircraft Equipment, concluded at Cape
    Town, South Africa, on November 16, 2001. The report of the Department
    of State and a chapter-by-chapter analysis are enclosed for the
    information of the Senate in connection with its consideration.
        The essential features of the Convention and Aircraft Protocol are
    the establishment of an international legal framework for the creation,
    priority, and enforcement of security and leasing interests in mobile
    equipment, specifically high-value aircraft equipment (airframes,
    engines, and helicopters), and the creation of a worldwide International
    Registry where interests covered by the Convention can be registered.
    The Convention adopts ``asset-based financing'' rules, already in place
    in the United States, enhancing the availability of capital market
    financing for air carriers at lower cost. The Convention's and
    Protocol's finance provisions are consistent with the Uniform Commercial
    Code with regard to secured financing in the United States.
        This new international system can significantly reduce the risk of
    financing, thereby increasing the availability and reducing the costs of
    aviation credit. As a result, air commerce and air transportation can
    become safer and environmentally cleaner through the acquisition of
    modern equipment facilitated by these instruments. The new international
    system should increase aerospace sales and employment, and thereby
    stimulate the U.S. economy.
        Negotiation of the Convention and Protocol has involved close
    coordination between the key Federal agencies concerned with air
    transportation and export, including the Departments of State, Commerce,
    and Transportation, as well as the EXIM bank, and U.S. interests from
    manufacturing, finance, and export sectors.
        Ratification is in the best interests of the United States. I
    therefore urge the Senate to give early and favorable consideration to
    the Cape Town Convention and Aircraft Protocol, and that the Senate
    promptly give its advice and consent to ratification, subject to the
    seven declarations set out in the accompanying report of the Department
    of State.

                                                              George W. Bush

     The White House,

     November 5, 2003.