For Immediate Release
Office of the Press Secretary
November 5, 2003
Message to the Senate of the United States
To the Senate of the United States:
I transmit herewith, for Senate advice and consent to ratification,
the Convention on International Interest in Mobile Equipment and the
Protocol on Matters Specific to Aircraft Equipment, concluded at Cape
Town, South Africa, on November 16, 2001. The report of the Department
of State and a chapter-by-chapter analysis are enclosed for the
information of the Senate in connection with its consideration.
The essential features of the Convention and Aircraft Protocol are
the establishment of an international legal frame-work for the
creation, priority, and enforcement of security and leasing interests
in mobile equipment, specifically high-value aircraft equipment
(airframes, engines, and helicopters), and the creation of a worldwide
International Registry where interests covered by the Convention can be
registered. The Convention adopts "asset-based financing" rules,
already in place in the United States, enhancing the availability of
capital market financing for air carriers at lower cost. The
Conventions and Protocols finance provisions are consistent with the
Uniform Commercial Code with regard to secured financing in the United
States.
This new international system can significantly reduce the risk of
financing, thereby increasing the availability and reducing the costs
of aviation credit. As a result, air commerce and air transportation
can become safer and environmentally cleaner through the acquisition of
modern equipment facilitated by these instruments. The new
international system should increase aerospace sales and employment,
and thereby stimulate the U.S. economy.
Negotiation of the Convention and Protocol has involved close
coordination between the key Federal agencies concerned with air
transportation and export, including the Departments of State,
Commerce, and Transportation, as well as the EXIM bank, and U.S.
interests from manufacturing, finance, and export sectors.
Ratification is in the best interests of the United States. I
therefore urge the Senate to give early and favorable con-sidera-tion
to the Cape Town Convention and Aircraft Protocol, and that the Senate
promptly give its advice and consent to ratification, subject to the
seven declarations set out in the accompanying report of the Department
of State.
GEORGE W. BUSH
THE WHITE HOUSE,
November 5, 2003.
# # #
|