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BOEING CEO CALLS FOR END TO CIVIL AIRCRAFT SUBSIDIES

 BOEING CEO CALLS FOR END TO CIVIL AIRCRAFT SUBSIDIES
 NEW YORK, Jan. 23 /PRNewswire/ -- Boeing Chairman and Chief


Executive Officer Frank Shrontz warned today that an open global marketplace without subsidies is crucial for continued U.S. leadership in commercial jet manufacturing.
 Speaking to the Council on Foreign Relations, Shrontz said the United States has much to gain from a strong commercial aircraft manufacturing industry, and "much to lose if trade distortions limit our ability to compete."
 Shrontz noted that the industry supports nearly 2 million direct and indirect jobs in the United States.
 Boeing, he said, has ranked as the nation's leading exporter for the past two years, and accounted for about 80 percent of America's $17 billion in commercial jet exports during 1990.
 Shrontz said, however, that Boeing "cannot ignore the threat of subsidized competition" and called for "a prompt resolution to the Airbus subsidy issue and a strong position against new commercial aircraft subsidies anywhere in the world."
 He noted that the U.S. government has estimated the Airbus subsidies at about $26 billion over the past 21 years or "about $8 million for every airplane Airbus has sold."
 Shrontz said that the 1979 GATT Tokyo Round and the accompanying Civil Aircraft Code prohibited government subsidies for commercial airplanes and said, "We believe the European governments that support Airbus Industrie have not honored the GATT agreements in these matters."
 In summarizing Boeing's position on the subject, Shrontz said: "This issue must be resolved. Twenty-one years of subsidy is far too much. Enough is enough."
 Commenting on the proposed McDonnell Douglas/Taiwan Aerospace transaction, Shrontz said, "We hope that our government will insist that (the deal) include a clear agreement that there will be no government subsidy and no bar to full market access."
 Shrontz said Boeing is committed to maintaining its position as the world's leading maker of commercial jet aircraft.
 He said that the company has invested heavily in facilities and research and development, spending about $12 billion over the past six years, or "about 9 percent of total revenue preparing for the future."
 The Boeing chairman said the company is "building on its existing strengths and core competencies" and "attempting to transform the rhetoric of quality into everyday practice at every level of the company."
 Predicting that airline revenue passenger miles will double by 2005, Shrontz said, however, "We cannot take too much comfort from this growing market: Boeing's challenge is to focus on maintaining the competitive edge that has so far sustained our leadership."
 -0- 1/23/92
 /CONTACT: T. Craig Martin, 206-237-8050, or Paul Binder, 206-655-6123, both of the Boeing Company/
 (BA) CO: Boeing ST: New York IN: AIR SU:


SB-DC -- DC005 -- 2790 01/23/92 12:04 EST
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Date:Jan 23, 1992
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