tenance, passenger and cargo, customs, immigration and health, which they require. If these proposals are acceptable to the Government of Canada this note, and your reply thereto accepting the proposals, shall be regarded as placing on record the understanding arrived at between the two Governments concerning this matter. Please accept, Excellency, the renewed assurances of my highest consideration. His Excellency the Honorable The Secretary of State for External Affairs, LAURENCE A. STEINHARDT Ottawa. The Canadian Secretary of State for External Affairs to the American Ambassador DEPARTMENT OF CANADA Ante, p. 2486. No. 182 EXCELLENCY: OTTAWA, June 4, 1949 I have the honour to acknowledge your Note No. 134 of June 4, 1949, in which you propose that an agreement be entered into between the Governments of the United States and Canada relating to civil aviation at the Leased Bases in Newfoundland. The agreement as proposed in your Note is acceptable to the Government of Canada. Your Note and this reply are regarded as placing on record the understanding arrived at between the two Governments. Accept, Excellency, the renewed assurances of my highest consideration. A. D. P. HEENEY. for Secretary of State for External Affairs. His Excellency the Honourable LAURENCE A. STEINHARDT, 100 Wellington Street, June 4, 1949 [T. I. Agreement between the United States of America and Canada respecting 1. A. 8. 1934) air transport services, superseding the agreement of February 17, 1945, as amended. Signed at Ottawa June 4, 1949; entered into force June 4, 1949. AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF 61 Stat., Pt. 2, The Government of the United States of America and the Government of Canada, hereinafter called the Contracting Parties, having ratified the Convention on International Civil Aviation signed at Chicago on December 7, 1944, and desiring to conclude an agreement p. 1180. to further promote commercial air services in a manner best suited to foster world-wide international air transport, have accordingly appointed authorized representatives for this purpose, who have agreed as follows: ARTICLE 1 For the purpose of the present Agreement, and its Annex, except where the text provides otherwise: Post, p. 2493. "Aeronautical au (A) The term "aeronautical authorities" shall mean in the case of thorities." the United States of America, the Civil Aeronautics Board and any person or agency authorized to perform the functions exercised at the present time by the Civil Aeronautics Board and, in the case of Canada, the Minister of Transport and the Air Transport Board or any person or agency authorized to perform the functions exercised at present by the said Minister and said Board. (B) The term "territory" shall have the meaning given to it by Article 2 of the Convention on International Civil Aviation, signed at Chicago on December 7, 1944. (C) The definitions contained in Article 96 of the Convention on International Civil Aviation signed at Chicago on December 7, 1944 shall be applied to the present Agreement. ARTICLE 2 "Territory." 61 Stat., Pt. 2, p. 1181. 61 Stat., Pt. 2, p. 1207. Rights for establish services. Each contracting party grants to the other contracting party the ing international air rights specified in this Agreement and the Annex thereto for the purpose of establishing the international air services therein described, whether such services be placed in operation immediately or at a later date at the option of the contracting party to whom the rights are granted. ARTICLE 3 Any air service described in the Annex hereto may be placed in operation as soon as the contracting party to whom the rights have Inauguration of services. Prevention of discriminatory practices, etc. Charges. Customs duties, etc., for fuel, lubricat parts. been granted has designated an airline or airlines to operate such service, and has so notified the other contracting party. Each contracting party reserves the right to withdraw at any time the designation of an airline and substitute the designation of another. The contracting party granting the rights shall, subject to Article 7 hereof, be bound to give, with a minimum of procedural delay, the appropriate operating permission to the airline or airlines concerned; provided that the airline or airlines so designated may be required to qualify before the competent aeronautical authorities of the contracting party granting the rights under the laws and regulations normally applied by those authorities before being permitted to engage in the operations contemplated by this Agreement; and provided that in areas of hostilities or of military occupation, or in areas affected thereby, such operation shall be subject to the approval of the competent military authorities. ARTICLE 4 In order to prevent discriminatory practices and to assure equality of treatment, both contracting parties agree that: (a) Each of the contracting parties may impose or permit to be imposed just and reasonable charges for the use of public airports and other facilities under its control. Each of the contracting parties agrees, however, that these charges shall not be higher than would be paid for the use of such airports and facilities by its national aircraft engaged in similar international services. (b) Fuel, lubricating oils and spare parts introduced into the tering oils, and spare ritory of one contracting party by the other contracting party or its nationals, and intended solely for use by aircraft of the airlines of such contracting party shall, with respect to the imposition of customs duties, inspection fees or other national duties or charges by the contracting party whose territory is entered, be accorded the same treatment as that applying to national airlines engaged in international services and to airlines of the most-favored-nation. Post, p. 2493. Non preference treatment. Validity of certificates of airworthiness, etc. (c) The fuel, lubricating oils, spare parts, regular equipment and aircraft stores retained on board civil aircraft of the airlines of one contracting party authorized to operate the services described in the Annex shall, upon arriving in or leaving the territory of the other contracting party, be exempt from customs, inspection fees or similar duties or charges, even though such supplies be used or consumed by such aircraft on flights in that territory. (d) Each of the contracting parties agrees not to give a preference to its own airlines against the airlines of the other state in the application of its customs, immigration, quarantine and similar regulations or in the use of airports, airways or other facilities. ARTICLE 5 Certificates of airworthiness, certificates of competency and licenses for aircraft and personnel to be used in operating the services described in this Agreement and its Annex issued or rendered valid by one contracting party and still in force shall be recognized as valid by the other contracting party. Each contracting party reserves the right, however, to refuse to recognize, for the purpose of flight above its own territory, certificates of competency and licenses granted to its own nationals by another state. ARTICLE 6 (a) The laws and regulations of one contracting party relating to the admission to or departure from its territory of aircraft engaged in international air navigation, or to the operation and navigation of such aircraft while within its territory, shall be applied to the aircraft of the airlines designated by the other contracting party, and shall be complied with by such aircraft upon entering or departing from or while within the territory of the first party. (b) The laws and regulations of one contracting party as to the admission to or departure from its territory of passengers, crew, or cargo of aircraft, such as regulations relating to entry, clearance, immigration, passports, customs, and quarantine shall be complied with by or on behalf of such passengers, crew or cargo of the other contracting party upon entrance into or departure from, or while within the territory of the first party. ARTICLE 7 Reciprocity of laws and regulations. Withholding or revocation of exercise of Post, p. Notwithstanding the provisions of Article 10 of this Agreement, each contracting party reserves the right to withhold or revoke per- rights. mission to exercise the rights specified in this Agreement and the Annex thereto by an airline designated by the other contracting party in the event that it is not satisfied that substantial ownership and effective control of such airline are vested in nationals of the other contracting party, or in case of failure by such airline or the government designating such airline to comply with the laws and regulations referred to in Article 6 hereof, or otherwise to perform its obligations hereunder or to fulfill the conditions under which the rights are granted in accordance with this Agreement and its Annex. ARTICLE 8 This Agreement shall be registered with the International Civil Aviation Organization. ARTICLE 9 2493. Continuation in and privileges. Existing rights and privileges relating to air transport services force of existing rights which may have been granted previously by either of the contracting parties to an airline of the other contracting party shall continue in force in accordance with the terms under which such rights and privileges were granted. ARTICLE 10 Either of the contracting parties may at any time notify the other of its intention to terminate the present Agreement. Such a notice Termination. Modifications; con sultation. Effect of future multilateral convention. Settlement of dis putes. tors. Designation. shall be sent simultaneously to the International Civil Aviation Organization. In the event such communication is made, this Agreement shall terminate one year after the date of receipt of the notice to terminate, unless by agreement between the contracting parties the communication under reference is withdrawn before the expiration of that time. If the other contracting party fails to acknowledge receipt, notice shall be deemed as having been received 14 days after its receipt by the International Civil Aviation Organization. ARTICLE 11 If either of the contracting parties considers it desirable to modify any provision of this Agreement or the Annex thereto, it may request consultation between the aeronautical authorities of both contracting parties, such consultation to begin within a period of sixty days from the date of the request. When these authorities mutually agree on new or revised conditions affecting the Agreement or the Annex thereto, their recommendations on the matter will come into effect after they have been confirmed by an exchange of notes between the contracting parties. ARTICLE 12 If a general multilateral air transport Convention accepted by both contracting parties enters into force, the present Agreement shall be amended so as to conform with the provisions of such Convention. ARTICLE 13 Except as otherwise provided in this Agreement or its Annex, any dispute between the contracting parties relative to the interpretation or application of this Agreement or its Annex, which cannot be settled through consultation, shall be submitted for an advisory report to a Tribunal of arbitra tribunal of three arbitrators, one to be named by each contracting party, and the third to be agreed upon by the two arbitrators so chosen, provided that such third arbitrator shall not be a national of either contracting party. Each of the contracting parties shall designate an arbitrator within two months of the date of delivery by either party to the other party of a note requesting arbitration of a dispute; and the third arbitrator shall be agreed upon within one month after such period of two months. If the third arbitrator is not agreed upon, within the time limitation indicated, the vacancy thereby created shall be filled by the appointment of a person, designated by the President of the Council of ICAO, from a panel of arbitral personnel maintained in accordance with the practice of ICAO. The executive authorities of the contracting parties will use their best efforts under the powers available to them to put into effect the opinion expressed in any such advisory report. The expenses of the arbitral tribunal shall be borne in equal parts by the parties. Expenses. 59 Stat. 1353. ARTICLE 14 This Agreement supersedes that relating to civil air transport effected by an Exchange of Notes of February 17, 1945, amended by |