766-(10)

II SÉRIE-A — NÚMERO 41

official rate of exchange, of the excess of receipts over expenditures achieved in connection with die carriage of passengers, cargo and mail. In the absence of the appropriate provisions of a payments agreement, die above mentioned transfer shall be made in convertible currencies and in accordance with die national laws and foreign exchange regulations applicable.

Article 12

Capacity

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

2 — In operating the agreed services, the designated airline of each Contracting Party shall take into account the interests of die airline of the outer Contracting Party so as not to affect unduly die services which the latter provides on die whole or part of the same routes.

3—The agreed services provided by the designated airlines of the Contracting Parties shall bear close relationship to the requirements of die public for transportation on the specified routes and shall have as their primary objective me provision, at a reasonable load factor, of capacity adequate to carry the current and reasonably anticipated requirements for die carriage of passengers, cargo and mail originating from or destined for die territory of die Contracting Party which has designated the airline. Provision for die carriage of passengers, cargo and mail both taken up and put down at points on the specified routes in the territories of States other than those of that designating the airline shall be made in accordance with die general principles that capacity shall be related to:

a) Traffic requirements to and from die territory of the Contracting Party which has designated the airline;

b) Traffic requirements of the area through which the airline passes, after taking account of other transport services established by airlines of the States comprising die area; and

c) The requirements of through airline operation.

4 — The frequency and capacity shall be submitted to the approval of the aeronautical authorities of both Contracting Parties. Such capacity shall be adjusted from lime to time to traffic requirements and such adjustments shall also be submitted to the approval of the aeronautical authorities of both Contracting Parties.

5 — The designated airlines of both Contracting Parties shall endeavour to agree on the frequency and capacity which shall be submitted for approval in accordance with the provisions of this article.

Article 13

Approval of conditions of operation

The flight schedules of the agreed services and in general the conditions of their operation shall be submitted by die designated airline of one Contracting Party to the approval of the aeronautical authorities of me other Contracting Party at least thirty (30) days before the intended dale of their implementation. Any modification to such flight schedules or conditions of their operation shall also be submitted to the aeronautical authorities for approval. In special cases, die above set time limit may be reducet subject to the agreement of die said authorities.

Article 14

Statistics

The aeronautical authorities of one Contracting Party shall supply the aeronautical authorities of the other

Contracting Party, at their request, with such statistics as may be reasonably required for the purpose of reviewing the capacity provided on the agreed services.

Article 15 Tariffs

1 —The tariffs to be charged by the designated airline of one Contracting Party for carriage to or from the territory of die other Contracting Party shall be established at reasonable levels, due regard being paid to all relevant factors, including cost of operation, reasonable profit and the tariffs of other airlines operating die whole or part of die same route.

2 — The tariffs referred to in paragraph 1 of this article shall, if possible, be agreed by die designated airlines of both Contracting Parties, after consultation, if necessary, with other airlines operating over the whole or part of the route, and such agreement shall, wherever possible, be reached by the use of the procedures of die International Air Transport Association for the working out of tariffs.

3 — The tariffs so agreed shall be submitted for the approval of die aeronautical authorities of both Contracting Parties at least forty five (45) days before the proposed date of their introduction. In special cases, this period may be reduced, subject to the agreement of the said authorities.

4 — This approval may be given expressly. If neither of die aeronautical authorities has expressed disapproval within thirty (30) days from the date of submission, in accordance with paragraph 3 of this article, these tariffs shal be considered as approved. In the event of die period for submission being reduced, as provided for in paraghaph 3 of this article, die aeronautical authorities may agree that the period within which any disapproval must be notified shall be less than thirty (30) days.

5 — If a tariff cannot be agreed in accordance with paragraph 2 of this article, or if, during the period applicable in accordance with paragraph 4 of this article, one aeronautical authority gives the other aeronautical authority notice of its disapproval of any tariff agreed in accordance with die provisions of paraghaph 2, the aeronautical authorities of the two Contracting Parties shall endeavour to the determine the tariff by mutual agreement.

6 — If the aeronautical authorities cannot agree on any tariff submiteed to them under paragraph 3 of this article, or on the determination of any tariff under paragraph 5 of this article, die dispute shall be setüed in accordance with the provisions of article 19 of this Agreement for the settlement of disputes.

7 — A tariff established in accordance with the provisions of this article shall remain in force until a new tariff has been established. Nevertheless, a tariff shall not be prolonged by virtue of this paragraph for more than twelve (12) months after the date on which it otherwise would have expired.

Article 16

Consultations

1 — In order to ensure close co-operation concerning all die issues related to the implementation of this Agreement, die aeronautical authorities of each Contracting Party shall consult each outer whenever it becomes necessary, on request of either Contracting Party.

2 — Such consultation shall begin within a period of sixty (60) days from the date of written request by the other Contracting Party unless otherwise agreed by both Contracting Parties.

Article 17 Modification of Agreement

1.— If either of ihe Contracting Parties considers it desirable to modify any provision of this Agreement, it majj