§ Mr. DunnTo ask the Secretary of State for Transport if he is proposing to continue negotiations with the United States Government on the liberalisation of air services between the two countries, following the announcement by British Airways in respect of its plans for further investment in USAir.
§ Mr. MacGregorI have this week made proposals to the United States Government on how we should take forward our discussions on air services following British Airways' announcement. Although the outcome of USAir's restructuring may well influence the shape of the new agreement, I have said that in my view talks should certainly continue on the framework of a new agreement —on which excellent progress has already been made. I have also said that I remain open to an interim limited exchange of new rights to maintain the momentum of the talks; and have suggested that there should be an exchange of views on the economic significance of the code sharing rights granted to United Kingdom carriers under the 1991 agreement, whose renewal is due to be confirmed by the United States Government on 17 March.