[Senate Hearing 110-1217] [From the U.S. Government Publishing Office] S. Hrg. 110-1217 NOMINATION OF JOHN P. HEWKO TO BE ASSISTANT SECRETARY OF TRANSPORTATION ======================================================================= HEARING before the COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED TENTH CONGRESS SECOND SESSION __________ JULY 29, 2008 __________ Printed for the use of the Committee on Commerce, Science, and Transportation U.S. GOVERNMENT PRINTING OFFICE 80-090 WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED TENTH CONGRESS SECOND SESSION DANIEL K. INOUYE, Hawaii, Chairman JOHN D. ROCKEFELLER IV, West TED STEVENS, Alaska, Vice Chairman Virginia JOHN McCAIN, Arizona JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine BARBARA BOXER, California GORDON H. SMITH, Oregon BILL NELSON, Florida JOHN ENSIGN, Nevada MARIA CANTWELL, Washington JOHN E. SUNUNU, New Hampshire FRANK R. LAUTENBERG, New Jersey JIM DeMINT, South Carolina MARK PRYOR, Arkansas DAVID VITTER, Louisiana THOMAS R. CARPER, Delaware JOHN THUNE, South Dakota CLAIRE McCASKILL, Missouri ROGER F. WICKER, Mississippi AMY KLOBUCHAR, Minnesota Margaret L. Cummisky, Democratic Staff Director and Chief Counsel Lila Harper Helms, Democratic Deputy Staff Director and Policy Director Christine D. Kurth, Republican Staff Director and General Counsel Paul Nagle, Republican Chief Counsel C O N T E N T S ---------- Page Hearing held on July 29, 2008.................................... 1 Statement of Senator Inouye...................................... 1 Statement of Senator Stevens..................................... 1 Witnesses Hewko, John P., Nominee to be Assistant Secretary for Aviation and International Affairs, Department of Transportation........ 2 Biographical information..................................... 4 NOMINATION OF JOHN P. HEWKO TO BE ASSISTANT SECRETARY OF TRANSPORTATION ---------- TUESDAY, JULY 29, 2008 U.S. Senate, Committee on Commerce, Science, and Transportation, Washington, DC. The Committee met, pursuant to notice, at 10:30 a.m. in room SR-253, Russell Senate Office Building, Hon. Daniel K. Inouye, Chairman of the Committee, presiding. OPENING STATEMENT OF HON. DANIEL K. INOUYE, U.S. SENATOR FROM HAWAII The Chairman. Mr. Hewko, I thank you very much for appearing before us today to consider your nomination to become Assistant Secretary for Aviation and International Affairs, United States Department of Transportation. We look forward to learning about your views on relevant issues and how your past experiences have prepared you to live up to the job. The DOT, as you know, Mr. Hewko, faces significant challenges in ensuring our transportation system operates swiftly and safely and efficiently. As the Assistant Secretary for Aviation and International Affairs, you will be directly involved in three policy issues that are of special concern to us--the implementation of slot auctions in New York City airports, the Essential Air Service Program, and the ongoing Open Skies negotiations between the United States and the European Union. And in dealing with these issues, we expect you to work closely and communicate clearly with this Committee because I believe we must work together to find the best path for both the White House and the legislative branch. A good relationship between Congress and DOT is vital if we are going to find solutions to these challenges and improve the quality of our transportation system. So I look forward to listening to your testimony. And may I now call upon the Vice Chairman of the Committee, Mr. Stevens? STATEMENT OF HON. TED STEVENS, U.S. SENATOR FROM ALASKA Senator Stevens. Mr. Chairman, thank you very much for holding this hearing. I think this vacancy should be filled as quickly as possible. I don't think I need to mention to our witness that my state depends upon air transportation more than any other state in the union. The Chairman. Other than Hawaii. [Laughter.] Senator Stevens. Well, I even challenge that, Mr. Chairman, because we have 241 villages, 70 percent of our areas can be reached only by air year round. I think you have more passengers than we do, obviously. It is much easier to go to the sun country than it is to the snow country. But as a general problem, our state is different. One out of every 58 people in our state is a pilot. We have 6 planes for every 10 pilots. We have more general aviation per capita than, I think, anywhere in the world, and yet we have to rely upon this type of transportation, the unscheduled planes that fly food to our villages, and medical service. They deliver babies. They do every single thing that taxis and buses and trains do in what we call the ``South 48.'' So I think rural air service is absolutely essential to our State, and I hope you have been to Alaska. If you haven't, I want to invite you to come to Alaska and really see. We pioneered Capstone. We pioneered changes in the air system. We have proven the new systems. If they can work in Alaska, they will work anywhere in the United States. So we are proud to be part of that activity of proving new technology, and we want to hasten the advent of new technology. But we want to preserve the ability to continue to have these small aircraft fly and fly safely for our people. So I look forward to working with you, and I really thank the Chairman for having this hearing. I do hope this is not one of the nominations that will be held up. I think that it is essential that that one spot that you will occupy be filled as quickly as possible. Thank you, Mr. Chairman. The Chairman. Thank you very much. Before we proceed, Mr. Hewko, our apologies to you. I was just advised that we called you out of vacation. So your family must be not quite happy about it, but we will make it up to them. And you have your parents here. Why don't you present them for the record? Mr. Hewko. Thank you very much. Mr. Chairman, I would like to acknowledge my parents, Lubomyr and Natalie Hewko, who traveled from Detroit to be here today. And I would also like to say hello to my wife, Margarita, and my daughter, Maria, who weren't able to come today, but are hopefully watching the proceedings by Internet in Utah, and to thank my colleagues from the Millennium Challenge Corporation for having joined me here this morning. The Chairman. Please proceed, sir. STATEMENT OF JOHN P. HEWKO, NOMINEE TO BE ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS, DEPARTMENT OF TRANSPORTATION Mr. Hewko. Chairman Inouye, Vice Chairman Stevens, and Members of the Committee, thank you for the opportunity to appear before you today as you consider my nomination to be Assistant Secretary of Transportation for Aviation and International Affairs at the Department of Transportation. It is a great honor to be asked by President Bush and Secretary Peters to serve in this important position. If confirmed, I look forward to working closely with the Members of this Committee and your staffs in addressing the many crucial aviation and international transportation issues facing the United States today. I would like publicly to thank and acknowledge my wife, Margarita, and daughter, Maria, and my siblings Marc and Annetta Hewko. Unfortunately, they are unable to be here today. I would also like to recognize my parents, Lubomyr and Natalie Hewko, who came to this country after the Second World War from Ukraine by way of displaced persons refugee camps in Bavaria. Their experiences, particularly those under Stalin's Communism and Hitler's Nazism, have given me a keen appreciation of the extraordinary country we live in and of the importance of freedom, democracy, hard work, and dedication. This appreciation and a desire to give back to the country that opened its arms to my parents has motivated my interest in public service. If confirmed, there are a number of skills that I would bring to this position. I have a very strong international background, having spent many years living and working outside the United States. In my current position at the Millennium Challenge Corporation, I have primary responsibility for negotiating MCC's foreign assistance agreements with 26 countries in Africa, Asia, Latin America, the Middle East, and the former Soviet Union. Most of these agreements contain significant transportation projects, and the experience of negotiating them underscored to me the critical importance of the transportation infrastructure to a country's economic prosperity. If confirmed, I will also bring a strong management background to the position. This management experience will be particularly important during the upcoming transition to the new administration. Finally, as someone from outside the aviation sector, I would bring a fresh perspective to many of the issues currently facing the industry. Although the term of this administration will soon end, there still remain many important issues that need to be addressed. The state of the domestic air transportation industry, resulting from the rising cost of fuel and how the industry is responding, will require significant attention. A number of smaller, yet very important programs, such as Essential Air Service, will need continued and effective stewardship. I would hope to focus on a number of the Open Skies Agreements currently being negotiated, with the goal of increasing access for American carriers and communities to international markets. Finally, it is important to ensure a smooth, efficient, and orderly transition to the new administration in January 2009. Mr. Chairman, if confirmed, I look forward to working with you and the Members of Congress on these and other critical issues. I would come to this position with an open mind and a keen desire to find solutions to problems that are fair and take into account the concerns of the affected stakeholders and the best interests of the American people. Again, I am grateful for the opportunity to appear before you today as you consider my nomination, and I look forward to answering any questions you may have. [The biographical information of Mr. Hewko follows:] a. biographical information 1. Name (Include any former names or nicknames used): John Paul Hewko. 2. Position to which nominated: Assistant Secretary of Transportation (Aviation and International Affairs). 3. Date of Nomination: April 2, 2008. 4. Address (List current place of residence and office addresses): Home: Information not released to the public. Office: 1875 15th Street, NW, Washington, D.C. 20005. 5. Date and Place of Birth: November 18, 1957; Detroit, Michigan. 6. Provide the name, position, and place of employment for your spouse (if married) and the names and ages of your children (including stepchildren and children by a previous marriage). Margarita Eugenia Hewko, Homemaker (spouse); Maria Emilia Hewko (15), (daughter). 7. List all college and graduate degrees. Provide year and school attended. Hamilton College, A.B Government and Soviet Studies--1975-1979. University of Oxford, M. Litt. Modern History--1979-1981. Harvard University, J.D.--1982-1985. 8. List all post-undergraduate employment, and highlight all management-level jobs held and any non-managerial jobs that relate to the position for which you are nominated. Post-undergraduate Employment Dino's Restaurant--Lakeside, Ohio--Bartender, 6/79-8/79. Colegio Sworn--Buenos Aires, Argentina--English Teacher, 2/82- 8/82. Bustamante & Crespo--Quito, Ecuador--Summer Associate, 6/83-8/ 83. Bryan & Gonzalez--Juarez and Mexico City, Mexico--Summer Associate, 8/83-9/83. Gibson, Dunn & Crutcher--New York, New York--Summer Associate, 6/84- 8/84. Hornsby & Whisenand--Miami, Florida--Summer Associate, 8/84-9/ 84. Gibson, Dunn & Crutcher--Washington, D.C.--Summer Associate, 6/ 85-7/85. Dickinson, Wright, Moon et al.--Detroit, Michigan--Summer Associate, 7/85- 9/85. Klein & Mairal--Buenos Aires, Argentina--Foreign Associate, 1985-86. Pinheiro Neto--Sao Paulo, Brazil--Foreign Associate, 1987. Gibson, Dunn & Crutcher--Washington, D.C.--Associate, 1987-89. Baker & McKenzie--Moscow, USSR--Associate, 1989-91. Georgetown University Law Center--Washington, D.C.--Adjunct Professor of Law, 2001-03. Carnegie Endowment for International Peace--Washington, D.C.-- Visiting Scholar, 2001-02. Management Level Positions Executive Secretary to the International Advisory Council to the Ukrainian Parliament--Kyiv, Ukraine--1991-92. Baker & McKenzie--Kyiv, Ukraine--Founding and Managing Partner, 1992-96. Baker & McKenzie--Prague, Czech Republic--Managing Partner, 1996-2001. Baker & McKenzie--Washington, D.C.--Partner, 2002-04. Millennium Challenge Corporation--Washington, D.C.--Vice- President for Country Relations/Operations/Compact Development, 2004-present. 9. Attach a copy of your resume. A copy is attached [not published]. 10. List any advisory, consultative, honorary, or other part-time service or positions with Federal, State, or local governments, other than those listed above, within the last 5 years: None. 11. List all positions held as an officer, director, trustee, partner, proprietor, agent, representative, or consultant of any corporation, company, firm, partnership, or other business, enterprise, educational, or other institution within the last 5 years. The Hewko Family Charitable Foundation (Board Member; Treasurer; Secretary) (2003-present). The Ukrainian Catholic University (Member of Board of Trustees (Senate)) (2007-present). The Leavitt Institute for International Cooperation (Member of Board) (2006-present). Western Reserve Academy (Member of Board of Visitors) (2002- present). The Washington Group (former Member of Board) (2002-2005). Altemus Foundation (former Member of Board) (2001-2005). Baker & McKenzie (Partner) (1992-2004); As a partner with Baker & McKenzie, I provided legal advice to a number of the firm's clients. 12. Please list each membership you have had during the past 10 years or currently hold with any civic, social, charitable, educational, political, professional, fraternal, benevolent or religious organization, private club, or other membership organization. Include dates of membership and any positions you have held with any organization. Please note whether any such club or organization restricts membership on the basis of sex, race, color, religion, national origin, age, or handicap. D.C. Bar Association (1988-present). PA Bar Association (1987-2005). American Bar Association (no longer member; cannot recall exact dates of membership). Ukrainian-American Bar Association (no longer member; cannot recall exact dates of membership). Association of Marshall Scholars (2002-present). Holy Trinity Church--Georgetown (parishioner) (2001-present). St. Thomas Catholic Church--Prague (parishioner) (1996-2001). 13. Have you ever been a candidate for and/or held a public office (elected, non-elected, or appointed)? If so, indicate whether any campaign has any outstanding debt, the amount, and whether you are personally liable for that debt: No. 14. Itemize all political contributions to any individual, campaign organization, political party, political action committee, or similar entity of $500 or more for the past 10 years. Also list all offices you have held with, and services rendered to, a state or national political party or election committee during the same period. David Leavitt for Congress--$1,000--3/10/08. David Leavitt for Congress--$1,000--12/10/07. Mitt Romney for President--$1,000--3/2/07. George W. Bush for President--$2,000--6/18/03. Marc Nuttle for Congress--$1,000--8/5/02. 15. List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals, and any other special recognition for outstanding service or achievements. Marshall Scholarship to study at Oxford--1979-1981. Phi Beta Kappa. 16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relevant to the position for which you have been nominated. Do not attach copies of these publications unless otherwise instructed. ``Foreign Direct Investment--Does the Rule of Law Matter?'', Carnegie Endowment for International Peace, Working Paper No. 26, April 2002. ``New Czech Commercial Code Amendments'', BNA's Eastern Europe Reporter, March 2001. ``New Soviet Tax Legislation'', Newsletter of the International Law Section of the Texas Bar, October 1990. ``Bolivia: A Successful Debt Relief Programme'', The Economist Publications, 1989. ``Argentine Laws on Foreign Investment and the Transfer of Technology'', The International Lawyer, Spring 1987. ``Las Empresas Conjuntas y la Legislacion de Defensa de la Competencia'', Revista del Derecho Comercial y de las Obligaciones, Buenos Aires, October 1986. ``Haiku'', The Washington Post, October 9, 2005. ``Keep the U.S. English Speaking'', The Christian Science Monitor, December 3, 2002. ``Lessons for Cuba after Communism'', The Christian Science Monitor, June 24, 2002. ``O'Neill/Bono Road Show Offers Golden Opportunity'', The Wall Street Journal, June 5, 2002 (Letter to the Editor). ``Private Sector vs. Foreign Aid'', The Washington Times, June 1, 2002 (Letter to the Editor). ``Development Role of the Private Sector'', The Times (of London), May 14, 2002 (Letter to the Editor). ``Good Catholics, Good Priests--and Married'', The Washington Post, March 23, 2002. ``No Need to Cry for Argentina'' The Boston Globe, February 26, 2002. ``Soviets' Nuclear Question'', The Christian Science Monitor, June 12, 1991. ``The Fire of Ukrainian Unity Starts to Spread'', The Wall Street Journal (Europe), August 23, 1990. ``Bolivia's Restructuring Deserves More Than a Pat on the Back'', The Wall Street Journal, April 28, 1989. ``A Yankee Attorney Shakes His Booty at Carnival'', The Wall Street Journal, February 23, 1989. ``The Economic and Political Awakening of Argentina's Peronists'', The Wall Street Journal, March 1, 1988. ``Brazil on Argentina's Heels'', The Christian Science Monitor, January 21, 1988. ``Peronist Reformers Keep the Focus on Democracy'', Los Angeles Times, September 11, 1987. ``Aid to CIS Countries: Waste Not, Want Not'', The Ukrainian Weekly, April 26, 1992. ``Western Delays in Recognizing Ukraine Based on Unfounded Arguments'', The Ukrainian Weekly, December 1, 1991. ``The End of the Soviet Union'', The Ukrainian Weekly, September 1, 1991. ``Bush Visit to Kiev Raises Stakes in Debate between Moscow and Republics'', The Ukrainian Weekly, August 4, 1991. ``Proliferation by Disintegration or an End to the Arms Race?'', The Ukrainian Weekly, May 26, 1991. ``Is the West Ready to Respond when the USSR Disintegrates?'', The Ukrainian Weekly, October 28, 1990. ``El Futuro del Brasil es Motivo de Pesimismo'', La Nacion, February 27, 1988. ``Nos EUA, o Futebol Agora e Esporte de `Yuppies','' Folha de S. Paulo, December 27, 1987. ``Legendary Stadiums'', Soccer America, February 5, 1987. ``As Licoes da Moratoria da Costa Rica'', O Estado de S. Paulo, March 29, 1987. ``Africa--Um Caminhao Rasga os Mundos da Africa'' Folha de S. Paulo, March 19, 1987. ``A Praia Carioca Segundo um Turista'', Jornal do Brasil, December 21, 1986. ``Por Mirar el Pasado'', Somos, Buenos Aires, August 27, 1986. ``Argentina's Victory'', Soccer America, July 24, 1986. ``El Imperialismo de los EE.UU. Visto por un Norteamericano'', Ambito Financiero, Buenos Aires, July 2, 1986. ``Los Argentinos Vistos por un Extranjero'', Somos, Buenos Aires, April 23, 1986. ``America's Surprise: Falklands Conflict Pitted Essentially `European Nations' '', The Oakland Press, August 29, 1982. I have given over 100 speeches and presentations through the years in the U.S. and abroad. The topics have generally fallen into the following categories for: Speeches related to MCC or official USG matters.Several commencement speeches at universities. Doing business in the former Soviet Union. Doing business in the Russia, Ukraine and the Czech Republic. Doing business in emerging markets. Speeches describing my travel experiences. Speeches to foreign audiences on the U.S. political system. Speeches on foreign affairs, particularly with respect to the former Soviet Union and Latin America. Commentary on foreign affairs on television news and talk shows. Participation in panel discussions on legal and foreign affairs issues. Lectures at universities on legal and foreign affairs issues. 17. Please identify each instance in which you have testified orally or in writing before Congress in a governmental or non- governmental capacity and specify the date and subject matter of each testimony: None. 18. Given the current mission, major programs, and major operational objectives of the department/agency to which you have been nominated, what in your background or employment experience do you believe affirmatively qualifies you for appointment to the position for which you have been nominated, and why do you wish to serve in that position? I returned to the United States in 2001 after many years abroad because I wanted to become involved in public service. My parents immigrated to the United States after the Second World War and I very much wished to give back to the country that was so open and hospitable to my parents and family. I have been very fortunate to have had the opportunity to serve for the past 4 years as a senior executive with the Millennium Challenge Corporation, a U.S. Government agency, and would be honored to be able to continue my public service, if confirmed, for this position. I believe that my strong management and extensive international experience in both the public and private sectors qualifies me for appointment to this position. Transportation infrastructure and systems are crucial to the growth and well-being of the U.S. economy. Many of the MCC Compacts that I negotiated with our partner countries include significant transportation related projects; this has further increased my interest in, and understanding of, transportation issues, particularly in the international context. 19. What do you believe are your responsibilities, if confirmed, to ensure that the department/agency has proper management and accounting controls, and what experience do you have in managing a large organization? I have extensive management experience in both the public and private sectors. I was the founding and managing partner of the Baker & McKenzie office in Kyiv, Ukraine. In that capacity, I was responsible for starting a practice and office in a very difficult environment and had primary oversight for all aspects of office management: human resources, client development, associate training, financial and budget matters, billing, negotiation of office leases, government relations, etc. I was also the managing partner of the Baker & McKenzie Prague office where I was asked to revive a troubled office in a very competitive market. This position had managerial responsibilities similar to that of the Kyiv position, with the added complexity of having to terminate a large number of individuals and then to rebuild an office almost from the beginning. As a Vice President at the Millennium Challenge Corporation (MCC), I managed the largest department in the institution and was responsible for managing MCC's relationship with its 26 Compact eligible countries in Africa, Asia, the Middle East, Latin America and the former Soviet Union. My position at MCC requires significant foreign travel, extensive dealings with heads of state and senior foreign government officials, public outreach and participation in interagency policy discussions. 20. What do you believe to be the top three challenges facing the department/agency, and why? (1) The agency's principal challenge is maintaining and improving safety throughout the country's transportation network. A focus on safety not only reduces transportation related deaths and injuries, but instills public confidence in the transportation system. (2) Addressing congestion in the transportation network is a further challenge. U.S. economic growth, particularly in an era when international trade is becoming increasingly important, depends on an efficiently functioning transportation system. Inefficient domestic and international freight movement, long delays at airports and congestion on our Nation's highways inhibit economic growth and affect negatively overall prosperity in the United States. (3) The country's highway and air traffic infrastructure is aging and in need of repair and renovation. Transportation infrastructure is the backbone of the U.S. economy and it must be maintained and upgraded to keep pace with population growth and to permit the United States to compete effectively in an increasingly global market. b. potential conflicts of interest 1. Describe all financial arrangements, deferred compensation agreements, and other continuing dealings with business associates, clients, or customers. Please include information related to retirement accounts: None. 2. Do you have any commitments or agreements, formal or informal, to maintain employment, affiliation, or practice with any business, association or other organization during your appointment? If so, please explain: No. 3. Indicate any investments, obligations, liabilities, or other relationships which could involve potential conflicts of interest in the position to which you have been nominated: Please refer to the DOT General Counsel's opinion letter. 4. Describe any business relationship, dealing, or financial transaction which you have had during the last 10 years, whether for yourself, on behalf of a client, or acting as an agent, that could in any way constitute or result in a possible conflict of interest in the position to which you have been nominated: None other than matters referenced within the DOT General Counsel's opinion letter. 5. Describe any activity during the past 10 years in which you have been engaged for the purpose of directly or indirectly influencing the passage, defeat, or modification of any legislation or affecting the administration and execution of law or public policy: None. 6. Explain how you will resolve any potential conflict of interest, including any that may be disclosed by your responses to the above items: Please refer to the DOT General Counsel's legal opinion. c. legal matters 1. Have you ever been disciplined or cited for a breach of ethics by, or been the subject of a complaint to any court, administrative agency, professional association, disciplinary committee, or other professional group? If so, please explain: No. 2. Have you ever been investigated, arrested, charged, or held by any Federal, State, or other law enforcement authority of any Federal, State, county, or municipal entity, other than for a minor traffic offense? If so, please explain: No. 3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, please explain: No. 4. Have you ever been convicted (including pleas of guilty or nolo contendere) of any criminal violation other than a minor traffic offense? If so, please explain: No. 5. Have you ever been accused, formally or informally, of sexual harassment or discrimination on the basis of sex, race, religion, or any other basis? If so, please explain: No. 6. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination: None. d. relationship with committee 1. Will you ensure that your department/agency complies with deadlines for information set by Congressional committees? Yes. 2. Will you ensure that your department/agency does whatever it can to protect Congressional witnesses and whistleblowers from reprisal for their testimony and disclosures? Yes. 3. Will you cooperate in providing the Committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters of interest to the Committee? Yes. 4. Are you willing to appear and testify before any duly constituted committee of the Congress on such occasions as you may be reasonably requested to do so? Yes. The Chairman. I thank you very much, Mr. Hewko. I just have one question. In recent days, front pages have been covered with congestion in the skies and also near misses. Would the auction slots in New York and Newark ease this congestion? Mr. Hewko. Well, Senator, congestion is a significant and serious problem. Delays are a big problem in our system. They cost the economy billions of dollars each year, not to mention the inconveniences that consumers face in terms of missed holidays, weddings, delays at the airport. I know that the administration is attempting to increase capacity and efficiency, and my understanding is that the administration has proposed limited market-based mechanisms as a potential part of the solution to congestion in areas such as New York. I am not familiar with the details of the auction system. I do understand that it is opposed by the airlines and is a controversial measure. But if confirmed, I look forward to understanding this issue better, and if confirmed, I certainly would commit to working very closely with you on the various issues that these mechanisms give rise to. The Chairman. Thank you very much. Senator Stevens? Senator Stevens. Mr. Hewko, I have been reading your background, and I think that we should congratulate you for being willing to leave the very interesting position you have had to take on this very serious and difficult job. And I am interested in particular that you were a visiting scholar at the Carnegie Endowment for International Peace, your time that you spent overseas. I am sure you have seen the difference between traveling in Europe and traveling in the United States. I like to remind people that my State alone is larger than Italy, Germany, France, and Spain. What we have here, we are only one-fifth the size of the United States. So that is at least five times the area that Europe deals with on their daily transportation that we deal with, very complex mechanism, but one that has to be improved. New technology will give us the opportunity to decrease the spacing between these large planes that now land at better than 100 miles an hour. And I do think that a person with your background will have the ability to take a look at this situation and see what can be done now. We get increasing complaints, I am sure you know, from the public, the traveling public as far as these delays and the failure to be able to handle some of the things that happen these days. Have you had a chance to be briefed as far as your activities as far as the transportation side of your job as compared to the international affairs side of your job? Mr. Hewko. Well, first of all, Senator, I would like to thank you for your kind invitation to visit your state. I have not had the pleasure of visiting Alaska, but I very much hope that during the course of my tenure in the job, I will be able to visit your State and experience firsthand the various transportation challenges that you have outlined. And I also share your concern about the congestion issue, and again, I very much appreciate the unique nature of Alaska and Hawaii as well, Mr. Chairman, when it comes to transportation issues. In terms of my briefings with the department, I have had several short meetings with staff there, and they have been very helpful in giving me a general sense of some of these issues, especially the issue that you just raised, Senator. And again, if confirmed, I look forward to understanding the issues better and to working very closely with you and your staff to try to come to some practical solutions to these very, very important problems. Senator Stevens. Well, how much do you feel that your task will involve international affairs as compared to domestic affairs? Mr. Hewko. Well, it is hard to say at this point because I have not had a chance to be in the job. But my understanding is that the portfolio includes aviation, but it also includes international transportation and trade issues. And given that my background is in the international area, I would certainly hope to devote a considerable amount of my energies to that area. But everything is important. I think all of the issues that this office will face merit attention--some, obviously, more than others. But I would anticipate a great deal of time spent, both on the aviation side of things and on the international side. Senator Stevens. Have you had any occasion to study the European systems of regulation of traffic as compared to ours? Mr. Hewko. Well, again, I don't come to this job with a strong aviation background, but I do understand that the staff at the department is extremely strong and has been looking at these issues for many years. I do have a good feel for the European system in general, having lived and worked in European countries for many years. And my overall impression is that in Europe, things are often a little bit more bureaucratic, a little more burdensome than in our system. But again, if confirmed, this is an issue that I would clearly want to get up to speed on and work closely with you and your staffs on. Senator Stevens. Well, they don't have as much general aviation traffic like we do, as I understand it. I do hope you will take a chance to learn something about that before you make judgments concerning the activities of rural general aviation and what it means to this country. That is why we would like to have you visit Alaska and see some of the places that small planes serve. They are the only form of transportation. Without that general aviation, there wouldn't be any transportation. In days gone by, it was the dog sled in summer and walking, literally walking--it was in the wintertime when my first partner walked from Nome to Fairbanks, when he wanted to move to Fairbanks. Now this is a changing country. We don't do that anymore. But we now rely on general aviation in such ways as I am becoming too redundant here and now, but I do hope that you will take time to understand general aviation before you make decisions that might affect us in the international area. Thank you very much, Mr. Chairman. The Chairman. I thank you very much. The record will show that Mr. Hewko has filed all the necessary documents, responded to all, and I think people should read your record. It is a very impressive one. Without objection, this matter will be referred to the full Committee on Thursday, and at that time, I am certain it will be approved and reported to the Senate. Congratulations, sir. And the hearing is adjourned. Mr. Hewko. Thank you, Mr. Chairman. [Whereupon, at 10:50 a.m., the hearing was adjourned.]