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II SÉRIE — NÚMERO 98

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 Contracting 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 notification 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 Contracting Party shall, subjected 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 international air services by such authorities in conformity with the provisions of the Convention.

4 — Each Contracting Party shall have the right to refuse to grant 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 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 relating to those services have been approved in accordance with the provisions of article 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 operating 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, or to impose such conditions as it may deem necessary on the exercise of those rights, whenever:

a) It is not satisfied that substancial ownership and effective control of that airline are vested in the Contracting Party designating the airline or in nationals of such Contracting Party; or

Z>) That airline fails to comply with the laws or regulations of the Contracting Party granting those rights; or

c) The airline otherwise fails to operate in accordance 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 after consultation with the other Contracting Party. In such a case the consultation shall begin within 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 international air services and the operation and navigation of aircraft while within the limits of its territory shall also be applied to the aircraft of the designated airline of the other Contracting Party.

2 — Crew, passengers and shippers, either personally or through a third party acting on their behalf or in their name, shall be subject to the laws and regulations in force in the territory of either Contracting Party governing the admission to, remaining in and departure in and departure from its territory of crew, passengers and cargo, in particular those regarding emmigration, immigration, passports, customs, sanitary control and foreign exchange control.

3 — Should entry visa be required for the admission of foreigners to the territory of a Contracting Party, the crew of the aircraft used in the operation of the agreed services shall be exempt from passport and visa provided they hold a document of identification craft used in similar international service.

4 — The laws and regulations above referred to shall be identical to those applicable to national aircraft used in similar international service.

ARTICLE 6 (Certificates and licences)

1 — Certificates of airworthiness and certificates of competency and licences issued or rendered valid by a Contracting Party and not lapsed shall de recognized as valid by the other Contracting Party for the operation of the air services specified in the Annex to this Agreement.

2 — Each Contracting Party reserves, however, the right to refuse to recognize the validity for the purpose of flight above its own territory of certificates of competency and licences granted to its nationals by another State.

ARTICLE 7 (Capacity)

1 — There shall be fair and equal opportunity for (the airlines of both Contracting Parties to operate the agreed services on the specified routes.

2 — In operating the agreed services, the airline elf each Contracting Party shall take into account the interests of the airline of the other Contracting Party so as not to affect unduly the services which the litter provides on the whole or part of the specified routes.

3 — The agreed services operated by the airlines designated by the Contracting Parties shall be adjusted to meet the requirements of the public for trans-