Page:United States Statutes at Large Volume 61 Part 3.djvu/182

 2460 Provision of ade- quate capacity. Determination of rates. Approval of rates. "IATA". Filing of proposed new rates. INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [61 STAT. this Annex shall bear a close relationship to the requirements of the public for such services. (E) That the services provided by each designated airline under this Agreement and its Annex shall retain as their primary objective the provision of capacity adequate to the traffic demands between the country which designates such airline and the country of ultimate des- tination of the traffic. The right to embark or disembark on such serv- ices international traffic destined for and coming from third countries at a point or points on the route specified in the Annex to this Agree- ment shall be applied in accordance with the general principles of orderly development to which both Governments subscribe and shall be subject to the general principle that capacity should be related: (a) to traffic requirements between the country of origin and the countries of destination; (b) to the requirements of through airline operation; and (c) to the traffic requirements of the area through which the airline passes after taking account of local and regional services. SECTION IV (A) The determination of rates in accordance with the following paragraphs shall be made at reasonable levels, due regard being paid to all relevant factors, such as cost of operation, reasonable profit, and the rates charged by any other airline, as well as the characteristics of each service. (B) The rates to be charged by the designated airline of either Contracting Party between points in the territory of the United States and points in New Zealand territory referred to in this Annex, shall, consistent with the provisions of the present Agreement and its Annex, be subject to the approval of the aeronautical authorities of the Con- tracting Parties, who shall act in accordance with their obligations under the present Agreement and its Annex, within their respective constitutional powers and obligations. (C) The Civil Aeronautics Board of the United States having ap- proved the traffic conference machinery of the International Air Trans- port Association (hereinafter called "IATA"), for a period of one year beginning in February 1946, any rate agreements concluded through this machinery during this period and involving any United States airline will be subject to approval by the Board. (D) Any new rate proposed by the designated airline of either Contracting Party shall be filed with the aeronautical authorities of both Contracting Parties at least thirty days before the proposed date of introduction; provided that this period of thirty days may be re- duced in particular cases if so agreed by the aeronautical authorities of both Contracting Parties. (E) The Contracting Parties agree that the procedure described in paragraphs (F), (G), and (H) of this section shall apply (1) if, during the period of the Civil Aeronautics Board's ap- proval of the IATA traffic conference machinery, either any specific

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