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Thursday, 9 December 1971
Page: 4547


Mr Lionel Bowen asked the Minister representing the Minister for Civil Aviation, upon notice:

(1)   Did the Government make any objection to the covenant in section 8 (d) of the agreement with the Boeing company and Eximbank for the purchase of four Boeing 747 aircraft.

(2)   Does the restrictive covenant in this agreement prevent Qantas from using these aircraft in many countries of the world.

(3)   Are the countries to which such a flight embargo applies determined by section 620 (f) of the Foreign Assistance Act 1961 of the United States of America.

(4)   Which countries are defined in this Act.

(5)   Can he say whether Pan-Am and other United States airlines operate to and from these defined counties; if so, what are these countries.

(6)   Can he say whether other airlines operate to and from these defined countries using United States manufactured aircraft, if so, what are the airlines and which countries do they operate to and from.


Mr Swartz - The Minister for Civil Aviation has provided the following answer to the honourable member's question:

(1)   No. However, representations have been made to Eximbank seeking the omission of this covenant from future agreements for aircraft borrowings.

(2)   No. The covenant precludes the aircraft from being used principally in certain countries but does not prevent Qantas from flying these aircraft into 01 out of any country in the world.

(3)   Yes. However, in the light of the response to question (2), the term 'flight embargo' is clearly not appropriate in this context.

(4)   The countries defined in section 620 (f) of the Foreign Assistance Act 1961 of the United States are as follows:

Peoples Republic of Albania,

Peoples Republic of Bulgaria,

Peoples Republic of China, .

Czechoslovak Socialist Republic,

German Democratic Republic (East Germany),

Estonia,

Hungarian Peoples Republic,

Latvia,

Lithuania,

North Korean Peoples Republic, North Vietnam,

Outer Mongolia - Mongolian Peoples Republic, Polish Peoples Republic, Rumanian Peoples Republic, Tibet,

Federal Peoples Republic of Yugoslavia, Cuba, and

Union of Soviet Socialist Republics (including its captive constituent Republics).

(5)   According to the latest available published information, Pan American Airways is the only United States airline currently operating scheduled airline services to and from any of the countries defined in paragraph (4) above. Countries defined in paragraph (4) above to and from which Pan American Airways currently operates services are as follows:

Czechoslovak Socialist Republic,

Rumanian Peoples Republic,

Polish People's Republic,

Federal Peoples Republic of Yugoslavia, and

Union of Soviet Socialist Republics.

(6)   According to the latest available published information, airlines (other than United States airlines) operating scheduled airline services to and from countries defined in paragraph (4) above using United States manufactured aircraft, and the countries to and from which each airline operates, are as follows:

 

 

 







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