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Public Papers - 1990 - May

Excerpts of White House Fact Sheets on Soviet-United States Scientific and Commercial Agreements

1990-05-31

Ocean Studies Agreement

Provides for a broad range of oceanographic research cooperation, use of port facilities in each other's countries, and far-reaching scientific exchanges.

Intellectual property rights (IPR) provisions are included.

Results of joint studies will be published openly.

Shared use of research vessels will result in substantial savings for both sides.

Expanded Civil Aviation Agreement

Total passenger and cargo flights per side would increase from 7.6 Boeing-727 equivalents/week to 15.1 immediately; to 42 on April 1, 1991; to 58 on April 1, 1992.

U.S. airlines could increase services to Moscow and Leningrad. They would gain new rights over the North Atlantic to four additional cities and over the Pacific to two additional cities.

Soviet airlines could increase services to New York and Washington. They would gain new rights over the Atlantic to two additional cities (with onward service to South America) and over the Pacific to two additional cities.

Each side could designate up to seven airlines to serve the other, with no more than two passenger airlines per side serving a city pair.

A charter article would be added guaranteeing each side annual approval of 100 charter flights over the Atlantic, within certain national constraints, and positive consideration of charter flight requests over the Pacific.

Soviet airlines would retain unrestricted rights to sell tickets in the United States. Until Soviet currency becomes convertible for purchase of air transportation, U.S. airlines could only sell tickets in the U.S.S.R. for hard currency. To ensure U.S. sales access to Soviet citizens in absence of ruble convertibility, Soviet airlines would sell ruble tickets on U.S. airlines equal to 8.75 percent of our airlines' round-trip capacity, and remit the profits to U.S. airlines in hard currency.

Maritime Transportation Agreement

The agreement commits both parties to eliminate discriminatory treatment, although it permits Soviet shippers to pay Soviet carriers in rubles as an interim measure.

The agreement contains no provisions for cargo-sharing, but does require Soviets to charter U.S.-flag carriers for Soviet Government controlled bulk cargoes whenever U.S. carriers are available on terms and conditions equal to or better than those offered by non-U.S. carriers. U.S. carriers wishing to participate in bilateral bulk trade are encouraged to inform Soviets of their interest, time availability, and price.

The agreement establishes a forecast mechanism to trigger consultations on U.S. liner trade. The agreement goes into effect following the conclusion of first joint forecast, expected to take place within a few months of signature.

It grants 2-day reciprocal notification access to 42 U.S. and 42 Soviet ports.

Soviet-flag vessels are permitted to reenter U.S. cross-trades, subject to Soviet assurances with regard to past Soviet predatory rate practices.

Note: This item contains information excerpted from three fact sheets released by the Office of the Press Secretary.

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