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II SÉRIE - NÚMERO 62

Convention and any amendment of the annexes or Convention, so far as those annexes and amendments have been adopted by both Contracting Parties;

c) The term «territory» in relation to a State

means the land areas and territorial waters adjacent thereto under the sovereignty of that State;

d) The term «air Service», «international air

service», «airline» and «stop for non traffic purposes)) have the meaning respectively assigned to them in paragraphs a), b), c) and d) of article 96 of the Convention;

e) The term «designated airline» means an airline

which has been designated by the Aeronautical Authorities of a Contracting Party in accordance with article 3 of this Agreement for the purpose of operating the agreed international air services on the routes specified in the annex to this Agreement and authorized in accordance with said article 3 by the Aeronautical Authorities of the other Contracting Party; /) The term «annex» means the annex to this Agreement including any amendments thereto under article 18 of this Agreement.

ARTICLE 2 (Granting of rights)

1 — Eeach Contracting Party grants to the other Contracting Party the rights specified in the present Agreement for the purpose of operating scheduled international air services on the routes specified in the annex to the present Agreement. Such services and routes are hereafter called «the agreed Services» and «the specified routes».

2 — The airline designated by each Contracting Party shall enjoy, while operating aji agreed service on a specified route, the following rights:

a) To fly without landing across the territory of

the other Contracting Party;

b) To land in the said territory for non traffic

purposes;

c) To take up and put down international traffic

in passengers, cargo and mail in accordance with the provisions of this Agreement and its annex.

3 — Nothing in this article shall be deemed to confer on the airline of one Contracting Party rhe privilege of taking uip in the territory of che other Contracting Party passengers, cargo and mail carried for r&nrvuneration or hire and destined for another point in the territory of that other Contracting Party (cabotage).

4 — Each Contracting Party shall have the right to specify prescribed routes over its territory as well as the airports to be used by the airline designated by the other Corotracf'ng Party.

ARTICLE 3 (Airline designation)

1 —Each Contracting Party shall have the right to designate one airline for the purpose of operating the agreed services on the Specified routes. The noti-

fication of such designation shall be made in writing by the Aeronautical Authorities of the Contracting Party designating the airline to the Aeronautical Authorities of the other Contracting Party.

2 — On receipt of such designation, the other Con-tcacting Party shall subject to the provisions of paragraphs 3 and 4 of this article, without delay, grant to the designated airline the appropriate operating permit.

3 — The Aeronautical Authorities of one Contracting Party may require the airline designated by the other Contracting Party to satisfy them that it is qualified to fulfill the conditions prescribed under the laws and regulations normally and reasonably applied to the operation of international air services by such authorities in conformity with the provis:ons of the Convention.

4 — Each Contracting Party shall have the right to refuse to grämt the operating permit referred to in paragraph 2 of this article, or to impose such conditions as it may deem necessary on the exercise by the designated airline of the rights specified in article 2, in any case where the said Contracting Party is not satisfied that substantial ownership and effective control of that airline are vested in the Contracting Party designating the airline or in its nationals.

5 — When an airline has been so designated and authorized, it may begin at any time to operate the agreed services, provided time tables and tariffs re-la,t:ng to those services have been approved in accordance with the provisions of articles 8 and 11 of this Agreement.

ARTICLE 4

(Revocation of the permit, suspension of rights and imposition of conditions)

1—Each Contracting Party reserves the right to revoke the operatiing permit or to suspend the exercise of the rights specified in article 2 of this Agreement by the airline designated by the other Contracting Party, o>r to impose such conditions as it may deem necessary on the exercise of those nights, whenever:

a) It is not satisfied that substantial ownership

and effective control of that airline are vested in the Contracting Party designating the airline or in nationals of such Contracting Party; or

b) That airline fa'ls to comply with the laws

or regulations of the Coatracting Party granting those rights; or

c) The airline otherwise fails to operate in accor-

dance with the conditions prescribed under this Agreement.

2 — Unless revocation, suspension or imposition of the conditions mentioned in paragraph 1 of this article, is essential to prevent further infringements of laws or regulations, such right shall be exercised only &fter consultation shall begin w:thin a period of -thirty days of the date of request for the consultation.

ARTICLE 5 (Laws and regulations)

1 — The laws and regulations of each Contracting Party governing the admission to, remaining in and departure from its territory of aircraft engaged in