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II SÉRIE-A — NÚMERO 32

quirements so permit. Baggage and cargo in direct transit shall be exempt from customs duties and other similar taxes.

Article 9

Financial provisions

1 — Each designated airline shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party directly and, at its discretion, through its agents. Such airline shall have the right to sell such transportation and any person shall be free to purchase such transportation.

2 — Each designated airline shall have the right to convert and remit to its country on demand at the official rate of exchange, the excess of receipts over ex-peditures achieved in connection with the 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 10 Capacity provisions

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 airlines of each Contracting Party shall take into account the interests of the designated airlines of the other Contracting Party so as not to affect unduly the services which the latter provide on the whole or part of the same routes.

3 — The agreed services provided by the designated airlines of the Contracting Parties shall bear a 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 traffic originating in or destined for the territory of the Contracting Party which has designated the airlines.

4 — Provided that designated airlines of both Contracting Parties are operating hereunder agreed services, they shall agree on the frequency and capacity of the services to be offered on the specified routes. The frequency and capacity shall be subject to the approval of the aeronautical authorities of both Contracting Parties. Such capacity shall be adjusted from time to time to traffic requirements and such adjustments shall also be submitted to the approval of the aeronautical authorities of both Contracting Parties.

5 — In order to meet unexpected traffic demands of a temporary character, the designated airlines may, notwithstanding the provisions of this article, agree between them to such temporary increases as are necessary to meet the traffic demand. Every such increase of capacity shall be notified without delay to the aeronautical authorities of the Contracting Parties for approval.

6 — In the case where the designated airlines of one Contracting Party operate points in third countries

along the specified route, a capacity additional to that established in accordance with, paragraphs 3 and 4 above may be operated by those airlines subject to agreement between the aeronautical authorities of the Contracting Parties.

.7 — In so far as the designated airlines of-one Contracting Party may not wish, permanently or temporarily, to operate, in full or in part, the capacity to which they are entitled under the preceding paragraphs, those airlines may arrange with the designated airlines of the other Contracting Party, under terms and conditions to be agreed between them and submitted to the approval of their respective aeronautical authorities, for the second airlines to operate additional capacity so as to maintain the full capacity agreed upon between them in accordance with the preceding paragraphs. It shall, however, be a condition of such arrangements that, if the/first designated airlines at any time decide to commence to operate, or to increase the capacity of their services within the total capacity to which they are entitled), and give reasonable advance notice thereof, the second designated airlines shall withdraw correspondingly some or all of the additional capacity which they had been operating.

Article 11

Representation

Each Contracting Party shall grant the designated airlines of the other Contracting Party the right to bring and maintain on its territory, for the performance of the agreed services, the technical and commercial personnel as may be required by the extent of such services,' provided that the other Contracting Party grants similar rights to the designated airlines of the first Contracting Party. The above, personnel shall be subject to the laws and regulations relating to the admission to, and stay in, the territory of that Contracting Party.

Article 12

Aviation security

1 — Consistent with their rights and obligations under international law, the 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. Without limiting the generality of their rights and obligations under international law, the Contracting Parties s\w& in particular act in conformity with the provisions of the Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on 14 September 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on 16 December 1970 and the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on 23 September 1971.

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 and air navigation facilities, and any other threat to the. security of civil aviation.