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As a result of the understanding reached yesterday, new traffic rights for both Hong Kong and US carriers will become immediately available. These include:

opportunities for new direct routings between up to 14 US cities and Hong Kong;

significantly increased rights for the airlines of both sides to carry both passengers and cargo to third countries.

All sides expressed satisfaction over the outcome of the talks, which is expected to widen consumer choice and provide a stable framework for the future development of US/Hong Kong air services.

news.

The acting Secretary for Economic Services, Mr Leo Kwan, welcomed the

He said: "The traffic rights package announced today is both balanced and expansionary, and represents the culmination of eight years of negotiations. It provides exciting opportunities for our airlines to fly to new points in the USA.

"We expect a range of new passenger and cargo routes to be launched soon by the airlines of both sides which will strengthen Hong Kong's position as the pre- eminent aviation hub in this region up to and beyond 1997."

Elaborating on points of interest to US carriers, the Director of the State Department's Office of Aviation Negotiations and Chairman of the US Delegation, Mr Edward O'Donnell, said: "The new stand alone agreement will provide the stability in this important aviation relationship that US carriers, shippers and travellers require."

Referring to the significant new opportunities under the agreement, Mr O'Donnell said: "US cargo carriers are looking forward to bringing new services to Hong Kong's trading community.

"We are also glad that another piece of United Airline's soon-to-begin Round- the-World service has fallen into place with this agreement."

End/Saturday, September 30, 1995