U.S., Britain in row over airline taxes

LONDON, June 7 (UPI) -- British Prime Minister Gordon Brown is clashing with U.S. officials over plans to raise taxes on transatlantic flights, a diplomatic letter reveals.

The Daily Telegraph reported Saturday it obtained a copy of an official letter sent by the U.S. Embassy in London to Brown stating its displeasure over the British government's plans to raise taxes from its current $80 to $200 per person on long-haul, transatlantic flights starting next year, and that American officials could force Brown to back down.

The letter, which reportedly refutes claims by Chancellor Alastair Darling that the higher taxes will benefit the environment, came as President George Bush was preparing to make an official visit to Britain.

The Telegraph quotes the letter as saying, "The Treasury's proposal, although cast as an environmental measure, appears in reality to constitute nothing more than a device for generating additional revenue from the airline community," and goes on to warn it could be in violation of several international treaties.

A Treasury spokesman defended the proposed tax, insisting to the Telegraph that it did indeed offer environmental benefits.