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August 18, 1954

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

Reference: This Agreement is also published in 200 UNTS, p. 121 and 216 UNTS, p. 426.

I

THE DEPARTMENT OF FOREIGN AFFAIRS OF THE PHILIPPINES TO THE SWEDISH LEGATION

The Department of Foreign Affairs presents its compliments to the Royal Swedish Legation and has the honour to refer to the Legation's Note dated July 1, 1954 informing the Department of the desire of the Government of Sweden 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 (S.A.S.) to exercise full traffic rights in Manila on the route Sweden via intermediate points to Manila and beyond in both directions.

The Department is pleased to inform the Legation that the Philippine Government is agreeable to grant to the airline to be designated by the Government of Sweden 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: Sweden via intermediate points to Manila and beyond in both directions;

3. 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 laws 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 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.

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

Manila, August 18, 1954

II

THE SWEDISH LEGATION TO THE DEPARTMENT OF FOREIGN AFFAIRS OF THE PHILIPPINES

The Swedish Legation presents its compliments to the Department of Foreign Affairs, and are pleased to note that the Philippine Government is agreeable to grant to the Swedish Government's designated airline, temporary authorization with full traffic rights in Manila, subject to the terms and conditions as put forth in the Department's letter of August 18.

Royal Swedish Legation in Manila

Manila, August 20, 1954