Page:United States Statutes at Large Volume 63 Part 3.djvu/190

 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [63 STAT. SECTION V There shall be a fair and equal opportunity for the airlines of the contracting parties to operate between their respective territories (as defined in the Agreement) the international air services covered by this Agreement and Annex. SECTION VI Cooperation. In the operation by the airlines of either contracting party of the services described in the present Annex, the interest of the airlines of the other contracting party shall be taken into consideration so as not to affect unduly the services which the latter provide on all or part of the same routes. SECTION VII Capacity. It is the understanding of both contracting parties that services pro- vided by a designated airline under this Agreement and Annex shall retain as their primary objective the provision of capacity adequate to the traffic demands between the country of which such airline is a national and the country of ultimate destination of the traffic. The right to embark or disembark on such services international traffic destined for and coming from third countries at a point or points on the routes specified in this Annex shall be applied in accordance with the general principles of orderly development to which both contract- ing parties 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 VIII Consultations. It is the intention of both'contracting parties that there should be regular and frequent consultation between their respective aeronauti- cal authorities (as defined in the Agreement) and that there should thereby be close collaboration in the observance of the principles and the implementation of the provisions outlined in the present Agree- ment and Annex. SECTON IX Rates. (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 airlines, as well as the charac- teristics of each service. (B) The rates to be charged by the airlines of either contracting party between points in the territory of the United States and points Po, pp.24 '7,. in Canadian territory referred to in the attached Schedules shall, 2494

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