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Recently I asked my staff, before they archived old records, to make sure that there were no unpaid bills in those records. During that process, my staff discovered correspondence about travel I took on American Continental's aircraft, but they could find no cancelled checks or other documented evidence that such travel had been paid for. In following up with your office, my staff was able to obtain from you a list of flights I took on your aircraft.

It has always been my policy and directive to my staff to promptly reimburse for such travel. I thought all this travel had been paid for, but I don't have the documentary evidence that this occurred. I deeply regret that this policy apparently had not been complied with in every instance. I also appreciate your prompt assistance in identifying for my staff all such travel in question.

I have enclosed checks in the amount of $1,794.14 and $7,884.32 to provide full payment for all travel that Cindy, my family, and I took on American Continental Aircraft during 1984 and 1985. Again, I regret any previous nonpayment. I was never aware that this situation existed, and I am embarrassed that apparently it did. If your records show that any of these flights were in fact already paid for, please either return that amount or I can have a new check drawn. Please accept my apologies, and please let my Senate office know immediately if you ever encounter any other question in this regard.

Thank you for your understanding and assistance.

CO515/MIS/RD
JM/ck

Sincerely,

John McCain

United States Senator

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One Thousand Seven Hundred Ninety Four and 14/100

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$1,794.14

DOLLARS

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−1912 21000 241: 10600433-8316* T

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DOLLARS

American Continental Corporation

Seven Thousand Eight Hundred Eighty Four and 32/100

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Senator John McCain

WASHINGTON, D.C. 20510

June 30, 1989

Mr. David E. Stevens

Director of Taxation

American Continental Corporation

P.O. Box 29099

Phoenix, Arizona 85038

Dear Mr. Stevens:

In a careful review of travel made by me and my family, my staff has compiled a list of flights taken on American Continental aircraft, or paid for by the American Continental Corporation, which should have been paid for by me. My policy has always been to reimburse promptly for such travel, and I regret this oversight.

This travel is in addition to those flights you identified for me in your letter of May 12, 1989, and for which we have fully reimbursed American Continental.

I have enclosed payment of $2.415.00 for flights taken by me, Cindy and a babysitter on Chalks International Airlines from Miami, Florida to the Bahamas, chartered helicopter flights for me to and from the same, and $1,339.60 for a flight taken by Cindy and a babysitter on American Continental aircraft in 1985 from Washington, D.C. to Phoenix. I have attached a meno delineating the costs (estimated at the cost of a first class flight) and approximate dates of this travel.

Again, I regret this oversight and any inconvenience this may have caused. Please contact me if you need anything else, or if any additional information comes to light regarding necessary reimbursement for travel on American Continental aircraft. Thank you once more for your attention to this matter.

Sincerel

McCain

John McCain

U.S. Senator

JM/VC
Enclosure

EXHIBIT 7

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