US, Europe reach draft deal on air data-EU official

LUXEMBOURG, Oct 6 (Reuters) The United States and Europe have reached a preliminary accord on new rules to supply personal data on US-bound air passengers as part of the fight against terrorism, an EU official said today.

''Yes, an agreement has been reached,'' said the official of negotiations aimed at filling a legal vacuum over the transfer of details such as addresses and credit card information, which airlines feared could expose them to breach of privacy suits.

The accord, which would replace former arrangements struck down by a top EU court in May, must still be formally approved by EU justice ministers meeting today.

Details of the draft deal, negotiated by the 25 EU ambassadors, are expected to be revealed at a press conference, scheduled to begin at 1300 ist. The agreement came after EU and US negotiators extended marathon talks which began yesterday aimed at agreeing new rules.

Under arrangements put in place after the September. 11, 2001 attacks on the United States, European airlines pass on data on passengers, including addresses and credit card details, to be allowed to land at US airports.

But the European Court of Justice struck down that pact on a legal technicality in May and failure to find a fast replacement could expose airlines to breach of privacy suits.

POSITIVE PROSPECTS EU Justice Commissioner Franco Frattini expressed hope yesterday that EU justice ministers set to meet in Luxembourg today would be able to approve any preliminary deal reached in the negotiations.

One senior EU diplomat said as negotiations continued that prospects for an accord looked ''rather positive''. Another EU official said the United States had not put any new demands on the table. In Washington, US homeland security officials had no comment on the talks.

Frattini told reporters in Luxembourg that agreement hinged on Washington guaranteeing adequate privacy safeguards.

''(The question) is how to balance ... the security needs of the United States and privacy protection needs,'' he said.

European and US negotiators failed to reach a deal to replace current arrangements before they expired last Saturday.

The EU had wanted to roll over the old agreement on a different legal basis, but Washington demanded wider access to the data for counter-terrorism purposes.

Air traffic has not been affected so far but the industry is concerned about the impact of a prolonged legal void.

Senior EU diplomats said Brussels would yield to the US request to make it easier for more agencies to have access to the data sent to US border and customs services.

But it also wants to ensure the data protection safeguards included in the cancelled accord are reintroduced and extended to any new agencies covered in any future accord.

''The undertakings are the key,'' said one EU official of stipulations such as limits on how long data can be kept, who can access it and bans on inclusion of racial and health data.

EU negotiators are wary about appearing to yield too much to US demands given widespread European public misgivings over President George W Bush's ''war on terrorism''.

Transatlantic ties will not have been helped by the European Commission's proposal on Wednesday that EU states force US diplomats to apply for visas in retaliation for Washington's refusal to waive visa requirements for most new EU countries.

REUTERS SP RK1245