RP, Taiwan close on new aviation pact

RP, Taiwan close on new aviation pact

TAIPEI (AFP): Taiwan and the Philippines have reached a
breakthrough in their dispute over a suspended aviation accord,
Taiwan's foreign ministry said.

"After six hours of candid and harmonious negotiations the
unnecessary barriers have been removed and the foundations for
mutual trust and cooperation have been restored," said a ministry
statement released late Saturday.

It said the discussions "have laid a sound basis for the
resumption of the aviation agreement."

Foreign Assistant Secretary Franklin Ebdalin led the
Philippine team while Taiwan was represented by Shih Ting,
director of the foreign ministry's East Asian and Pacific affairs
department.

The Philippine delegation highlighted the serious financial
crisis facing Philippine Airlines.

The Philippines two weeks ago decided to terminate its
aviation agreement with Taiwan, alleging that Taiwanese carriers
China Airlines and Eva Air had violated the pact by carrying more
passengers than allowed and serviced routes not covered in the
accord.

The Philippines gave the Taiwanese carriers until September 30
to stop flying the Manila route unless a new accord is
negotiated. Taiwan responded with threats of economic sanctions.

Taiwan's Civil Aeronautics Administration insisted Manila had
violated international precedents which require a minimum of 12
months notice to terminate aviation agreements.

Taiwan's Vice Foreign Minister David Lee said earlier this
month that his government would use a "carrot and stick" approach
in handling the dispute.

Taiwan has US$1 billion worth of investment projects in the
Philippines including $300 million in the former United States
Subic naval base.

Last year 186,000 Taiwan tourists visited the Philippines and
the island employs some 115,000 Filipino workers and maids.