US broke aviation subsidy accord, says EU

The European Union today accused the United States of violating a 1992 agreement on subsidies to aircraft makers and demanded…

The European Union today accused the United States of violating a 1992 agreement on subsidies to aircraft makers and demanded consultations before Washington gives any aid to Boeing's 7E7 project.

In a letter released in Brussels, the European Commission said it rejected the US action to terminate the pact since it was unsubstantiated by proper grounds, and the EU considered the agreement was still in force.

"We have . . . the feeling that this may be a way for them to escape from the disciplines in the 1992 agreement. We also request that we hold consultations before they make any definitive decision as to the provision of subsidies to the Boeing 7E7," a spokeswoman told a news conference.