04/30/1998 02:12 PM Senate TRA

                                                                               
             HJR 67 - AIR FLIGHTS RUSSIAN FAR EAST                             
                                                                               
IRENE SHIELDS, staff to Representative Williams, sponsor of HJR 67,            
read the sponsor statement.  HJR 67 urges the U.S. Department of               
Transportation to negotiate renewal of the bilateral agreement to              
retain the mandatory stopover in Anchorage for the trans-Pacific               
flights between the Russian Far East and the U.S.  The current                 
bilateral agreement is due to expire in May of 1998.  The                      
continuation of mandatory stopovers of Russian air carriers is                 
important to preserve the position of Anchorage as the American                
gateway to the Russian Far East.  Alaska has established agreements            
with many cities and territories in the Russian Far East to help               
with their transition into the market based economy.                           
Discontinuation of direct Alaskan air service will severely hamper             
these efforts.  Absent the agreement, Anchorage International                  
Airport could experience an additional decline in international air            
traffic and local jobs.                                                        
                                                                               
RHONDA THOMPSON informed committee members that Senator Stevens                
announced in a press release the previous Friday that the bilateral            
agreements were being negotiated, that the Russian mandatory                   
stopover was indeed on the table, and that they had successfully               
negotiated continuation of that route.  However, after further                 
discussion, it was learned the bilateral negotiations are ongoing              
and will conclude in June.  Therefore, passage of HJR 67 is                    
imminent.  Alaska Airlines will cease operations in the Russian Far            
East in the event that the mandatory stopover from the Russian side            
is not retained.                                                               
                                                                               
VICE-CHAIR announced HJR 67 would be held until a quorum was                   
present.                                                                       
VICE-CHAIR WILKEN announced that HB 386, HJR 63, and HJR 67 are                
pending in committee and that the 24 hour rule is now in effect.               
He asked participants to await Chairman Ward's direction on                    
movement of the legislation.   He then adjourned the meeting.