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August 18, 1954

Note: The Agreement entered into force, October 20, 1954.

Reference: This Agreement is also published in 216 UNTS, p. 3.

The Royal Swedish Legation 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 is agreeable to grant to the airline to be designated by the Government of Sweden temporary authorization with full traffic rights in Manila, subject to the following terms and conditions:

1. That the temporary authorization 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; Sweden via intermediate points to Manila and beyond in both directions;

That no traffic right shall be exercised by the designated airline of Sweden 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 served by it
before the curtailment of its international air services, no traffic right shall be exercised by the Swedish 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 Philipine territory;

7. That the Swedish 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 Sweden, 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.

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

The Legation has the honor to inform the Department of Foreign Affairs that the Swedish Government designates Aktiebolaget Aerotransport

(A.B.A.) to operate the said route: Sweden via intermediate points to Manila and beyond in both directions.

In this connection the Legation is confirming, on behalf of the Swedish Gov­ernment, the following understanding reached in the course of the negotiations preceding the conclusion of this temporary arrangement:

1. Aktiebolaget Aerotransport (A.B.A.) cooperating with Det Norske Luftfartselskap (D.N.L.) and Det Danske Luftfartselskab (D.D.L.) under the designation of Scandinavian Air Lines 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. Insofar as Aktiebolaget Aerotransport (A.B.A.) 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 Aktiebolaget Aerotransport (ABA), and the competent Swedish authorities and Aktiebolaget Aerotransport (ABA) shall accept full responsibility therefor under the temporary arrangement.

Referring to paragraph 7 of the conditions quoted above, the Legation has the honor to confirm that the designated airline is filing the prescribed information through Philippine Air Lines, Inc., acting as general agents for the Philippines.

The Legation takes this opportunity of reiterating the Swedish 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 Legation begs to refer to the draft which was submitted to the Department of Foreign Affairs on July 7, 1954.

Manila, October 20, 1954