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CIRCULAR OF THE STATE COUNCIL CONCERNING THE CUTTING DOWN THE STATE'S FOREIGN EXCHANGE EXPENDITURE IN THE INTERNATIONAL AIR TRANSPORT OF PASSENGERS, CARGOES AND MAIL

    The following Circular is hereby issued with reference to the general
practice of various countries in the world for the purpose of safeguarding
the State's interests, cutting down the State's foreign exchange expenditure
and developing China's civil aviation undertakings:

    All Chinese and foreigners who are travelling at the expense of the
relevant units of China (including private individuals who are going abroad
with foreign exchange paid by the Bank of China) on international routes where
the Civil Aviation Administration of China (CAAC) operates its flights
(whether they are going abroad, or returning to China, or travelling between
two localities abroad) shall take CAAC flights; cargoes that are to be
transported by air shall also be carried by the CAAC if the Transport expense
is to be covered by the State; and, when the time limit for delivery is the
same, the CAAC shall have the priority of carrying airmail. The CAAC shall
grant appropriate preferential treatment at its discretion. Under special
circumstances, where emergencies render it impossible to wait until CAAC
flights are available, the carrying may be performed by foreign airlines
through the arrangement by the CAAC; the CAAC shall issue a certificate
to facilitate the reimbursement of the expenses thus incurred. Violators of
the aforesaid provisions may not have their expenses reimbursed by their
respective finance departments.

    Various regions and departments are requested to earnestly implement the
aforesaid provisions and the Civil Aviation Administration of China and the
Ministry of Finance shall supervise the implementation thereof.