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Rh The first of these rates is assigned—

a. For correspondence originating in the Union and addressed to foreign countries, to the dispatching office in case of prepayment, and to the office of exchange in case of non-prepayment.

b. For correspondence originating in foreign countries and addressed to the Union, to the office of exchange in case of prepayment, and to the office of destination in case of non-prepayment.

The second of these rates is, in every case, assigned to the office of exchange.

With regard to the expenses of transit within the Union, the correspondence originating in or addressed to a foreign country is assimilated to that from or for the country of the Union which maintains relations with the country foreign to the Union, unless such relations imply obligatory and partial prepayment, in which case the said Union country has the right to the territorial transit rates fixed by Article 4 preceding.

The general settlement of the rates chargeable for the conveyance beyond Union limits takes place upon the basis of statements which are prepared at the same time as the statements drawn up by virtue of Article 4 preceding for the calculation of the expenses of transit within the Union.

As regards the correspondence exchanged in closed mails between a country of the Union and a country foreign to the Union, through the intermediary of another country of the Union, the transit thereof is subject as follows:

Within the limits of the Union, to the rates fixed by Article 4 of the present Convention.

Beyond the limits of the Union, to the conditions arising from special arrangements concluded or to be concluded for that purpose between the Administrations interested.

The exchange of letters of declared value and that of postal money-orders form the subject of special arrangements between the various countries or groups of countries of the Union.

The Postal Administrations of the various countries composing the Union are competent to establish by mutual agreement, in a Regulation of Execution, all the measures of order and detail which are judged necessary.

The several Administrations may, moreover, make among themselves the necessary arrangements on the subject of questions which do not concern the Union generally, provided that these arrangements are not contrary to the present Convention.

The Administrations interested are, however, permitted to come to mutual arrangements for the adoption of lower rates of postage, within a radius