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3 — Modification to the annex may be effected by direct agreement between the aeronautical authorities of the Contracting Parties and shall come into force by an exchange of notes through diplomatic channels.

Article 18 Conformity with multilateral convention

The present Agreement and its annex shall be deemed to be amended without further agreement as may be necessary to conform with any multilateral convention or agreement which may become binding on both Contracting Parties.

Article 19 Settlement of disputes

1 — If any dispute arises between the Contracting Parties relating to the interpretation or application of this Agreement, the Contracting Parties shall in the first place endeavour to settle it by direct negotiations.

2 — If the Contracting Parties fail to reach a settlement by negotiation, they may agree to refer the dispute for decision to some person or body, or the dispute may at the request of either Contracting Party be submitted for decision to a tribunal of three arbitrators, one to be nominated by each Contracting Party and the third to be appointed by the two so nominated. Each of the Contracting Parties shall nominate an arbitrator within a period of sixty (60) days from the date of receipt by either Contracting Party from the other of a notice through diplomatic channels requesting arbitration of the dispute, and the third arbitrator shall be appointed within a further period of sixty (60) days. If either of the Contracting Parties fails to nominate an arbitrator within the period specified or the third arbitrator is not appointed, the president of the council of the International Civil Aviation Organization may be requested by either Contracting Party to appoint an arbitrator or arbitrators as the case requires. In such case, the third arbitrator shall be a national of a third State and shall act as president of the arbitral body.

3 — The Contracting Parties undertake to comply with any decision given under paragraph 2 of this article.

4 — If and so long as either Contracting Party or the designated airline of either Contracting Party fails to comply with the decision given under paragraph 2 of this article, the other Contracting Party may limit, suspend or revoke any rights or privileges which it has granted by virtue of this Agreement to the Contracting Party in default. ,

5 — Each Contracting Party shall pay the expenses of the arbitrator it has nominated. The remaining expenses of the arbitral tribunal shall be shared equally by the Contracting Parties.

Article 20 Termlnattoa

Either Contracting Party may at any time give notice to the other Contracting Party of its decision to terminate the present Agreement; such notice shall be simultaneously communicated to the International Civil Aviation Organization. In such case the Agreement shall terminate twelve (12) months after the date of receipt of the notice

by the other Contracting Party, unless the notice to terminate is withdrawn by agreement before the expiry of this period. In the absence of acknowledgment of receipt by the other Contracting Party, notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

Article 21 Registration

This Agreement and any amendment thereto shall be registered with the International Civil Aviation Organization.

Article 22

Entry Into force

This Agreement shall come into force when the Contracting Parties, by an exchange of diplomatic notes, notify each other of the completion of their constitutional requirements.

In witness whereof the undersigned, duly authorized thereto by the respective Governments, have signed this Agreement.

Done in Lisbon, on the 22nd day of January, 1993, in two originals each in the Portuguese and English languages, both texts being equally authentic.

On behalf of the Government of Malta: Guido de Marco.

On behalf of the Government of the Republic of Portugal:

José Manuel Durão Barroso.

ANNEX Section I

1 — Route to be operated in both directions by the airline designated by the Government of the Republic of Portugal:

Lisbon-intermediate point-Malta-point beyond.

2 — Route to be operated in both directions designated by the Government of Malta:

Malta-intermediate point-Lisbon-point beyond.

3 — To operate the services referred to in paragraph 1 of this section, the airline designated by the Government of the Republic of Portugal shall have the right:

a) To put down in Malta international traffic in passengers, cargo and mail taken on in Lisbon;

b) To take on in Malta international traffic in passengers, cargo and mail destined for Lisbon.

4 — To operate the services referred to in paragraph 2 of this section the airline designated by the Government of Malta shall have the right:

a) To put down in Lisbon international traffic in passengers, cargo and mail taken on in Malta;