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Viewing cable 07BEIJING2748, TRANSPORTATION SECRETARY PETERS' VISIT TO CIVIL

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Reference ID Created Released Classification Origin
07BEIJING2748 2007-04-24 09:17 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO4729
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2748/01 1140917
ZNR UUUUU ZZH
R 240917Z APR 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 7195
RULSDMK/DEPT OF TRANSPORTATION WASHDC
INFO RUCPDOC/USDOC WASHDC
RUEHOO/CHINA POSTS COLLECTIVE
RHEHNSC/NSC WASHDC
UNCLAS SECTION 01 OF 02 BEIJING 002748 
 
SIPDIS 
 
SIPDIS 
 
TRANSPORTATION FOR X1, X40 
USDOC FOR ITA/OCEA/MCQUEEN 
USDOC FOR ITA DAS KASOFF 
NSC FOR TONG, SHRIER 
 
E.O. 12958: N/A 
TAGS: EAIR ECON BEXP PGOV OVIP SECRETARY PETERS CH
SUBJECT:  TRANSPORTATION SECRETARY PETERS' VISIT TO CIVIL 
AVIATION MANAGEMENT INSTITUTE OF CHINA (CAMIC) 
 
1. (U) Secretary of Transportation Mary E. Peters visited 
the Civil Aviation Management Institute of China (CAMIC) in 
Beijing on April 13 to deliver a speech on United States- 
China aviation cooperation.  Tian Baohua, President of 
CAMIC, hosted the Secretary, and Minister Yang Yuanyuan of 
the General Administration of Civil Aviation of China (CAAC) 
delivered brief remarks.  Secretary Peters' remarks were 
well-received by the more than 150 CAMIC students and 
United States industry representatives in attendance, and 
audience questions following the speech covered a wide 
range of issues, including aviation sector liberalization, 
Open Skies, and improving United States-China aviation 
cooperation. 
 
Growing Bilateral Aviation Relationship 
--------------------------------------- 
 
2. (U) In his introductory remarks, CAMIC President Tian 
said the CAMIC event was significant for bringing together 
the representative of the largest aviation sector in the 
world with that of the fastest growing aviation sector. 
Tian stated that CAMIC maintains a positive attitude 
towards further opening of China's aviation sector and 
trains mid-level and top-level civil servants in aviation 
management and safety.  According to Tian, China's aviation 
sector has grown by 16.2 percent annually since 2002. 
 
3. (U) CAAC Minister Yang lauded the long-term cooperation 
between the United States and China on civil aviation 
issues, and thanked representatives from both the 
government and private sector for attending the event. 
With rapidly growing passenger and cargo volumes, China's 
aviation sector will need even more top quality civil 
aviation professionals in the future, Yang said, and CAMIC 
will help supply that need.  Yang stated that China's 
safety record is improving, and CAAC also places a high 
priority on economic concerns such as macro-policy controls, 
macro-oversight and deregulation. 
 
Questions on the Way Forward 
---------------------------- 
 
4. (U) Following the Secretary's speech, an attendee from 
the Air China Group asked about the perceived gap between 
American and Chinese carriers, while another asked why 
there are more United Airlines flights to China than there 
are Chinese carriers traveling to the United States. 
Secretary Peters said that the development of China's 
 
SIPDIS 
international aviation markets will depend largely on 
allowing the market and demand to determine flight routes 
rather than implementing artificial restrictions that 
inhibit market growth.  She said that American carriers are 
using more of their allocated slots to fly to China than 
their Chinese counterparts are using to fly to the United 
States, but the Department of Transportation would "like 
nothing better" than to see more Chinese flights to the 
United States. 
 
5. (U) American attendees asked Minister Yang his views on 
China's progress in general aviation, handling fees at 
airports, and Open Skies.  The Minister acknowledged that 
China's progress in general aviation has been slower due to 
China's status as a developing economy, China's 
restrictions in its aerospace policy, and CAAC's own 
management policy.  On high handling fees at airports, he 
said he would like to study the matter as fees are not 
uniform.  He cautioned, however, that while international 
airlines pay higher handling fees than domestic airlines, 
they do not pay the same 5 percent surcharge required for 
local carriers.  Yang said there remain some obstacles to 
reaching an agreement on Open Skies with the United States, 
but Open Skies is a goal that China will continue to work 
on. 
 
United States Participants 
-------------------------- 
 
6.  (U) United States Government attendees at the 
Secretary's speech at CAMIC on Friday, April 13 were: 
 
SIPDIS 
 
Secretary of Transportation Mary E. Peters 
 
SIPDIS 
Deputy Chief of Mission David Sedney 
Assistant Secretary for Aviation and International Affairs 
Andrew Steinberg 
 
BEIJING 00002748  002 OF 002 
 
 
Deputy Chief of Staff Simon Gros 
Assistant to the Secretary for Policy Jana Weir 
Assistant to the Secretary for Public Affairs Sarah Echols 
Special Assistant to the Secretary for Scheduling and 
Advance Brooke Evans 
Embassy Economic Section Trade and Investment Policy Unit 
Chief Eric Madison 
Embassy Economic Officer Matthew Murray (note taker) 
Embassy Economic Officer Kamal Latham 
Embassy Economic Officer Brian Klein 
Embassy Economic Officer Michael Pignatello 
 
Chinese Participants 
-------------------- 
 
7.  (U) Chinese Government attendees included: 
 
Minister of General Administration of Civil Aviation of 
China (CAAC) YANG Yuanyuan 
CAAC Director General of International Affairs and 
Cooperation LI Jiangmin 
CAMIC President TIAN Baohua 
CAMIC Party Secretary WEI Jincai 
 
8.  (U) Secretary Peters' delegation has cleared this 
report. 
 
RANDT