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UNITED AIRLINES CHAIRMAN SAYS MOT'S CALL FOR MANAGED TRADE HURTS THE CONSUMER

 TOKYO, June 29 /PRNewswire/ -- The Japan Ministry of Transportation's (MOT) attempts to restrict the frequency, passenger capacity and routes of U.S. carriers' flights to and beyond Japan are an attempt to institute managed trade, a principle which Japan has always argued against, United Chairman and Chief Executive Officer Stephen M. Wolf said today. Speaking before the Foreign Correspondents Club of Japan, Wolf said, "There is no question competition and free trade benefit the airline passenger just as much as they do the consumer of any other product or service. It is strongly in Japan's interest to come down on the side of open trade, not protectionism."
 Noting that Japan's prime minister and vice minister of international trade and industry have repeatedly stated their opposition to managed trade, Wolf commented: "I find it confusing that -- despite the clear statements of leaders and despite the compelling logic of their arguments for free trade and against unilateral actions -- Japan's Ministry of Transportation is demanding managed trade in air transportation and is taking unilateral action to implement it."
 MOT has asserted it has the right to limit the frequency of U.S. carriers' flights to Japan; to deny U.S. carriers the ability to extend their flights beyond Japan (even though the existing bilateral specifically allows such operations) and to require U.S. carriers to make no more than half of their seats available to passengers traveling only on the beyond-Japan portions of flights (primarily Japanese consumers).
 Wolf said, "MOT's requirements are, by anyone's calculations, a far cry from the prime minister's call for a cooperative spirit based on free-trade principles. Indeed, it appears to constitute precisely the type of managed trade and unilaterialism about which Japan has warned the U.S. The U.S. has no trade barriers that prevent Japanese carriers from expanding their share of the trans-Pacific market as MOT is seeking to impose on U.S. carriers."
 Wolf concluded by saying, "I cannot agree with those in Japan's government who urge that the circumstances of their require the introduction of protectionist measures against U.S. air carriers -- any more than I could agree with the use of such measures by the U.S. Protectionist solutions have been, are now and will always be counterproductive. They have no place in Japan-U.S. trade."
 -0- 6/29/93
 /CONTACT: UAL Corporate Communications: John Kiker, 708-952-4162, or Joe Hopkins, 708-952-5770, or night, 708-952-4088; or Investor Contact: Pamela Hanlon, 708-952-7501/
 (UAL)


CO: United Airlines ST: Illinois IN: AIR SU:

LR -- NY051 -- 6693 06/29/93 12:12 EDT
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Publication:PR Newswire
Date:Jun 29, 1993
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