PAL refuses to recognize '96, 2000 Taiwan accords (Despite MECO's efforts to end air dispute).

Flag carrier Philippine Airlines, Inc. (PAL) remains adamant not to recognize the 1996 and January 2000 air agreements with Taiwan, although it has agreed to a higher passenger traffic capacity.

Manila Economic and Cultural Office (MECO) managing director and resident representative Rodolfo T. Reyes, however, has overridden PAL's stand in a bid to end a dispute which has affected Philippine-Taiwan bilateral relations.

In a letter to his Taiwanese counterpart, Hsien-Ching Chan of the Taipei Economic and Cultural Office (TECO) dated Aug. 7, Mr. Reyes said the Philippines is willing to "recognize" the 1996 air services agreement.

The letter, a copy of which was obtained by BusinessWorld, contained the Philippines' position and proposals for the next round of talks between MECO and TECO representatives.

"We fully recognize the letter and spirit of the 1996 Agreement on Exchange of Traffic Rights between MECO and TECO," Mr. Reyes said in the letter.

"Realistically taking into account the historical passenger traffic between the Philippines and Taiwan (approximately …