AIRLINES
U.S., Japan Open Talks to Avert Aviation Sanctions: The negotiations will focus on Japan’s refusal to allow expanded cargo flights by Federal Express Corp. U. S. Transportation Secretary Federico Pena has threatened sanctions on Japanese cargo flights to the United States if the proposed services are denied to FedEx. He said the restrictions will be imposed in mid-July. Japan has refused to allow added flights between Japan and FedEx’s new facility at Subic Bay in the Philippines, a move the United States claims should be automatic under existing aviation accords. The threatened sanctions would restrict Japan Air Lines and Nippon Cargo Airlines Co. from carrying some goods to the United States that they had carried to Japan from other Asian nations.
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