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August 18, 1954

Note: This Agreement entered into force, October 20, J954.

Reference: This Agreement is also published in 216 UNTS, p. 11.

I

The Department of Foreign Affairs presents its compliments to the Royal Norwegian Consulate and has the honor to refer to the Consulate's Note dated July 1, 1954 informing the Department of the desire of the Government of Norway to conclude an agreement relating to air transport services with the Government of the Republic of the Philippines and, pending the conclusion of such agreement, to secure temporary authorisation for the airline to be designated by it under the designation of Scandinavian Airlines System (SAS) to exercise full traffic rights in Manila on the route Norway via intermediate points to Manila and beyond in both directions.

The Department is pleased to inform the Consulate that the Philippine Government is agreeable to grant to the airline to be designated by the Government of Norway temporary authorisation with full traffic rights in Manila, subject to the following terms and conditions:

1. That the temporary authorisation hereby granted shall be revocable at any time at the pleasure of the Philippine Government;

2. That a service of not more than two frequencies a week in either direction shall be operated on the following route: Norway via intermediate points to Manila and beyond in both directions;

3. That no traffic right shall be exercised by the designated airline of Norway on the above mentioned route between Manila and Bangkok and between Manila and Tokyo in both directions;

4. That as soon as the Philippine Air Lines, Inc. operates flights to any point within Asia and Far East region or to any point previously serviced by it before the curtailment of its international air services, no traffic right shall be exercised by the Norwegian designated airline to any such point or points in respect of Manila;

5. That the air service shall be operated in accordance with the rules and regulations promulgated by the Philippine Civil Aeronautics Board and the Philippine Aeronautics Administration and that the rates to be charged in respect of Manila shall be those approved by the Philippine Civil Aeronautics Board;

6. That the Philippine law and regulations as to the admission to and departure from Philippine territory of passengers, crew, or cargo, such as those relating to entry, clearance, immigration, passports, customs, and quarantine shall be complied with upon entrance into or departure from or while within Philippine territory;

7. That the Norwegian designated airline shall, before commencing operations, supply to the Civil Aeronautics Administrator copies of time tables and tariff schedules and will generally keep him informed with regard to the operation of the air service and any change in time-tables or tariffs; and shall furnish him monthly a statement showing the services operated to, from and across the Philippines, and the origin and destination of such traffic; and

8. That pending the conclusion of a bilateral air agreement that may be negotiated between the Government of the Republic of the Philippines and the Government of Norway, the latter shall forthwith grant upon request of the former such reciprocal rights as are herein granted in points to be designated by the former.

If the terms and conditions set forth above are acceptable to the Norwegian Government, the corresponding application for the necessary temporary permit to operate in accordance herewith should be filed by the Norwegian designated airline with the Philippine Civil Aeronautics Board together with a copy of this note.

Manila, August 18, 1954

II

ROYAL NORWEGIAN CONSULATE

The Royal Norwegian Consulate presents its compliments to the Department of Foreign Affairs and has the honor to refer to the Department's note of August 18, 1954 stating that the Philippine Government in agreeable to grant to the airline to be designated by the Government of Norway temporary authorization with full traffic rights in Manila, subject to the following terms and conditions:

[See note I]

Pursuant to instructions from the Royal Ministry of Foreign Affairs, the Consulate is pleased to state that, pending the conclusion of a formal bilateral air agreement, the Government of Norway is prepared to accept these terms and conditions.

The Royal Consulate has the honor to inform the Department of Foreign Affairs that the Norwegian Government designates Det Norske Luftfartselskap (DNL) to operate the said route: Norway via intermediate points to Manila and beyond in both directions.

In this connection the Royal Consulate is confirming, on behalf of the Norwegian Government, the following understanding reached in the course of the negotiations preceding the conclusion of this temporary arrangement.

(1) Det Norske Luftfartselskap (DNL) co-operating with Det Danske Luftfartselskab (DDL) and Aktiebolaget Aerotransport (ABA) under the designation of Scandinavian Airlines System (SAS) may operate the services assigned to it under this temporary arrangement with aircraft, crews and equipment of either or both of the other two airlines.

(2) In so far as Det Norske Luftfartselskap (DNL) employ aircraft, crews and equipment of the other airlines participating in the Scandinavian Airlines System (SAS), the provisions of the temporary authorization shall apply to such aircraft, crews and equipment as though they were the aircraft, crews and equipment of Det Norske Luftfartselskap (DNL), and the competent Norwegian authorities and Det Norske Luftfartselskap (DNL) shall accept full responsibility therefor under the temporary arrangement.

Referring to paragraph 7, the Consulate has the honor to confirm that the designated airline is filing the prescribed application through Philippine Air Lines, Inc, acting as general agents for the Philippines.

The Royal Consulate takes the opportunity of reiterating the Norwegian Government's desire to conclude with the Government of the Republic of the Philippines a formal bilateral Agreement relating to air transport services on the same route as stated above in paragraph 2 and shall be prepared to commence negotiations to that effect at any time convenient to the Philippine Government. In this connection the Consulate begs to refer to the Draft which was submitted to the Department of Foreign Affairs on July 7, 3954.

Manila, October 20, 1954.