766-(8)

II SÉRIE-A — NÚMERO 41

d) The term «territory» in relation to a State shall mean the land areas and territorial waters adjacent thereto under the sovereignty of that State;

e) The terms «air Service», «international air Service», «airline» and «stop for non-ü-affic pur-poses» shall have the meanings assigned to them in article 96 of the Convention;

f) The term «tariff» shall mean the prices to be paid for the carriage of passengers, baggage and freight and the conditions under which those prices apply, including prices and conditions for agency and other auxiliary services, but excluding remuneration or conditions for the carriage of mail; and

g) The term «annex» shall mean the Route Schedules attached to the present Agreement and any clauses or notes appearing in such annex.

2 — The annex to this Agreement is considered an inseparable part thereof.

Article 2

Operating rights

1 — Each Contracting Party grants to Ute outer Contracting Party the rights described in the present Agreement and its annex, for the establishment and the operation of scheduled international air services on die routes specified in die annex. Such services and routes are hereinafter called «the agreed Services» and «the specified routes» respectively.

2 — The airline designated by each Contracting Party shall enjoy while operating an agreed service on a specified route, die folowing rights:

a) To fly without landing across the territory of the other Contracting Party;

b) To make stops in die said territory for non-traffic purposes;

c) To make stops in die said territory for the purpose of putting down and taking on passengers, mail and cargo coming from or destined for points on the specified routes, subject to 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 the right of taking on in the territory of die other Contracting Party passengers, cargo and mail carried for remuneration or hire and destined for another point in the said territory.

Article 3 Designation of airlines

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 die Contracting Party having desingated die airline to the aeronautical authorities of the other Contracting Party.

2 — On receipt of such notification, the aeronautical authorities of the othter Contracting Party, subject to the provisions of paragraphs 3 and 4 of this article shall grant without delay the appropriate operating autorization to the designated airline.

3 — The aeronautical authorities of one Contracting Party may tequüx the airlines designated by the other Contracting Party to satisfy them that it is qualified to fulfil the conditions prescribed under the laws and regulations normally and reasonably applied to the operations of 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 authorization referred to in paragraph 2 of this article, or to impose such conditions as it may deem necessary on the exercise by a designated airline of me rights specified in article 2 of this Agreement in any case where the said Contracting Party is not satisfied that substantial ownership and effective control of mat airline are vested in the Contracting Party designating die 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 that flight-schedules have been approved and tariffs are in force in respect of those services, as required respectively under article 13 and article 15 of this Agreement.

6 — Each Contracting Party shall have the right to withdraw, by written notification to the other Contracting Party, the designation of its own airline and to substitute it by the designation of another airline.

Article 4

Revocation, suspension and limitation of rights

1 — The aeronautical authorities of each Contracting Party shall have die right to revoke an operating authorization or to suspend exercise of die rights specified in article 2 of the present Agreement by die airline designated by die outer Contracting Party, or to impose such conditions as it may deem necessary on the exercise of these rights:

a) In any case where it is not satisfied that substantial ownership and effective control of that airline are vested in die Contracting Party designating the airline or in nationals of such Contracting Party; or

b) In the case of failure by that airline to comply with the laws or regulations of die Contracting Party granting these rights; or

c) In case the airline fails to operate in accordance with the conditions prescribed under the present Agreement.

2 — Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph 1 of Ulis article is essential to prevent further infrigements of laws or regulations, such right shall be exercised only after consultation with the other Contracting Party. Such consultation shall take place within a period of thirty (30) days from the date of die proposal to hold it.

Article 5

Entry and dearence laws and regulations

1 — The laws, regulations and procedures of a Contracting Party relating to die admission to, sojourn in, or departure from its territory of aircraft engaged in international air navigation, or to die operation and navigation of such aircraft while withing its territory, shall be applied to the aircraft of both Contracting Parties without distrinction as to nationality, and shall be complied with by such aircraft upon entering into or departing from or while within the territory of mat Party.

2 — The laws, regulations and procedures of a Contracting Party relating to the admisson to, sojourn in, or departure from its territory of passengers, crew, cargo and mail, transported on board the aircraft, such as regulations relating to entry, clearance, immigration, passports, customs, and sanitary control shall be complied with by or on behalf of such passengers, crew, cargo and mail, upon entrance into or departure from or while within the territory of that 'Party.