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.