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II SÉRIE-A — NÚMERO 42

Article 7 Passengers and cargo in direct transit

Passengers, baggage and cargo in direct transit across the territory of either Contracting Party and not leaving the area of the airport reserved for such purpose shall, except in respect of security measures against violence and air piracy, be subject to no more than a simplified control. Baggage and cargo in direct transit shall be exempt from customs duties and other similar taxes.

Article 8 Certificates of airworthiness

1 — Certificates of airworthiness, certificates of competency and licences issued, or validated, by one Contracting Party and unexpired shall be recognized as valid by the other Contracting Party for the purpose of operating the agreed services on the specified routes, provided always that such certificates or licences were issued, or validated, in conformity with the standards established under the Convention.

2 — Each Contracting Party, however, reserves the right to refuse to recognize, for flights above its own territory, certificates of competency and licences granted to its own nationals by the other Contracting Party.

Article 9

Security

1 — Consistent with their rights and obligations under international law, die Contracting Parties reaffirm that their obligation to each other to protect the security of civil aviation against acts of unlawful interference forms an integral part of this Agreement.

2 — The Contracting Parties shall provide upon request all necessary assistance to each other to prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such aircraft, their passengers and crew, airports an air navigation facilities, and any other threat to the security of civil aviation.

3 — The Parties shall, in their mutual relations, act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as annexes to the Convention on International Civil Aviation to the extent that such security provisions are applicable to the Parties; they shall require mat operators of aircraft of their registry or operators of aircraft who have their principal place of business or permanent residence in their territory and the operators of airports in their territory act in conformity with such aviation security provisions.

4 — Each Contracting Party agrees that such operators of aircraft may be required to observe the aviation security provisions referred to in paragraph 3 above required by the other Contracting Party for entry into, departure from, or while within, the territory of that other Contracting Party. Each Contracting Party shall ensure that adequate measures are effectively applied within its territory to protect the aircraft and to inspect passengers, crew, carry-on items, baggage, cargo and aircraft stores prior to and during boarding or loading. Each Contracting Party shall also give sympathetic consideration to any request from other Contracting Party for reasonable special security measures to meet a particular threat.

5 — When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the safety of such aircraft, their passengers and crew, airports or air navigation facilities occurs, the Contracting Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat thereof.

Article 10 Representation

The designated airlines of both Contracting Parties shall be allowed:

a) To establish in the territory of the other Contracting Party offices for the promotion of air transportation and sale of air tickets as well as other facilities required for the provision of air transportation;

b) To bring in and maintain in the territory of the other Contracting Party — in accordance with the laws and regulations of that other Contracting Party relating to entry, residence and employment — managerial, sales, technical, operational and other specialist staff required for the provision of air transportation; and

c) In the territory of the other Contracting Party to engage directly and, at that airline's discretion, through its agents in the sale of air transportation.

Article 11

Transfer of earnings

Each Contracting Party grants to the designated airline of the other Contracting Party the right of free transfer at the 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, the above mentioned transfer shall be made in convertible currencies and in accordance with the 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 between their respective territories.

2 — In operating the agreed services, the designate6 airline of 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 latter provides on the 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 the public for transportation on the specified routes and shall have as their primary objective the provision, at a reasonable load factor, of capacity adequate to carry the current' and reasonably anticipated requirements for the carriage of passengers, cargo and mail originating from or destined for the territory of the Contracting Party which has