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March 18, 1950

Note: The Agreement entered into force, April 14, 1950.

Reference: This Agreement is also published in II DFA TS, No. 2, p. 34 and 127 UNTS, p. 281.

AUSTRALIAN LEGATION
MANILA

14th November, 1950

The Australian Legation presents its compliments to the Department of Foreign Affairs and has the honor, in referring to previous correspondence regarding the air service operated by Qantas Empire Airways between Australia and Japan via Manila, to advise that the present twice weekly service will be replaced by a once weekly service commencing this week.

This change will be effected by cancelling the flight exercising transit rights only. The flight authorized to exercise full traffic rights in Manila will now depart Sydney on Friday of each week arriving Manila northbound on Saturdays and southbound on Mondays.

Department of Foreign Affairs
Manila

AUSTRALIAN LEGATION
MANILA, PHILIPPINES

14th April, 1950

Sir:

I have the honor to refer to your letter No. 10343 of 18th March, 1950 regarding the exercise of transit and traffic rights at Manila for Qantas Empire Airways. I have been instructed by my Government to inform you that the terms and conditions under which you are willing to permit the operation of an air service by an air line designated by the Australian Government are acceptable.

My Government will arrange for Qantas Empire Airways Limited, which would be its designated air line under this agreement, to make the necessary application for temporary authorization with the Philippine Civil Aeronautics Board as requested by you.

I avail myself of this opportunity to renew to you the assurances of my highest consideration.

/s/ J. K. WALLER
/t/ (J. K. WALLER)
Charge d'Affaires a.i.

The Hon. FELINO NERI
Undersecretary
Department of Foreign Affairs
Manila

Manila, March 18, 1950

Sir:

With reference to your letters of January 30th and March 1st, 1950, regarding the desire of your Government to have transit and traffic rights at Manila for the Qantas Empire Airways in its proposed civil air service between Australia and Tokyo I am pleased to advise that the Philippine Government is ready to accede to such desired subject to the following terms and conditions:

"l. The authorized air service to be operated by the airline designated by the Australian Government shall be as follows:

"(a) A service in both directions of not more than one frequency each week on the following route: Sydney, Port Darwin, Manila, Iwakuni, Tokyo with right to pick up and set down traffic at Manila except traffic destined for or coming from points north of Manila;

"(b) In addition to the service authorized in paragraph (a) above, the airline designated by the Government of the Commonwealth of Australia may operate on the route above specified a weekly transit service without right to pick up or set down traffic at Manila."

"2. The air service will be operated in accordance with such conditions as may be imposed by the Philippine Civil Aeronautics Administration, and in ac-cordance with the principles of the International Civil Aviation Convention signed at Chicago on December 7, 1944, and the rates to be charged shall be those fixed in accordance with the rules of the IATA and approved by the Philippine Civil Aeronautics Board.

"3. The Philippine law and regulations as to the admission to or departure from Philippine territory of passengers, crew, or cargo, such as those relating to entry, clearance, immigration, passports, customs, and quarantine shall be com¬plied upon entrance into or departure from, or while within the Philippine territory;

"4. The Philippine Civil Aeronautics Board shall be furnished with monthly statement showing the services operated to and from Manila, together with such other relevant information as may be required from time to time by the said Board;

"5. The inclusion or exclusion of any particular provision in this authority shall in no way prejudice the terms of any agreement that may subsequently be negotiated between the Philippine and Australian governments:

"6. The authority granted hereunder shall remain in force for a period of three months computed from the date of the first flight of the designated airline of the Australian Government in accordance with this agreement, subject to the right reserved by the Philippine Government to terminate this agreement at any time for cause; and

"7. Pending the conclusion of a bilateral air agreement that may be negotiated between the Government of the Philippines and of Australia, the latter shall forthwith grant upon request of the former such reciprocal rights as are granted hereunder in Sydney and Darwin."

If the terms and conditions set forth above be acceptable to the Australian Government, the corresponding application for temporary authorization should be filed with the Philippine Civil Aeronautics Board with a copy of the exchange of notes on this matter.

Very truly yours,

FELINO NERI
Undersecretary

J. K. WALLER, Esquire
Consul-General of Australia
Manila

AUSTRALIAN-CONSULATE-GENERAL
MANILA, PHILIPPINES

14th March, 1950

Aide Memoire:

On 3rd March, 1950, the head o£ the Legal Division discussed informally with the Australian Consul-General conditions under which traffic rights on a service between Australia and Japan might be granted to Qantas Empire Airways pending the negotiation of a bilateral air agreement. The Australian Government suggests that the draft ought to be amended as follows:

Paragraph (1).

"It is the intention of the Government of the Republic of the Philippines and the Government of the Commonwealth of Australia to conclude an agreement relating to air services between their respective territories. Pending conclusion of such an agreement the Republic of the Philippines grants 3 months to an air line to be designated by the Government of the Commonwealth of Australia the rights set out in paragraph (2) hereof. In return the Government of the Commonwealth of Australia shall grant to an air line which may be designated by the Government of the Republic of the Philippines and Australia on a route to be agreed at a later date between the two Governments."

Paragraph (2).

"The authorized air service to be operated by the air line designated by the Australian Government shall be as follows:

"A service in both directions of not more than one frequency each week on the following route; Sydney, Port Darwin, Manila, Iwakuni, Tokyo with right to pick up and set down traffic at Manila except traffic destined for or coming from points north of Manila.

Qantas Empire Airways, in order to meet the wishes of the General Officer Commanding the British Commonwealth Occupation Forces in Japan will continue to operate two services weekly to Japan. It has been customary for the troops to receive airmail twice weekly and General Robertson feels this schedule should be maintained even though it means operating more services than the civil traffic warrants. Qantas Empire Airways wish, if possible, to have the right to pick up and set down traffic on each of these twice weekly services through Manila. If however, the Philippine Government prefer to grant rights for one service only, Qantas Empire Airways would merely transit Manila with the second service in accordance with the International Air Service Transit Agreement. The operation of the second service without traffic rights could be preserved by adding the following:

In addition to the service authorized in paragraph (a) above, the air line designated by the Government of the Commonwealth oF Australia may operate on the said route above specified a weekly transit service without right to pick up or set down traffic at Manila."

Paragraphs (3) and (4)—are acceptable in their present forms.

Paragraph (5)—It is suggested that the word "relevant" be inserted before "information."

AUSTRALIAN CONSULATE-GENERAL
MANILA, PHILIPPINES

1st March, 1950

Sir:

Further to my letter of 30th January, 1950 I desire to inform you that the first commercial air service to Japan by Qantas Empire Airways will transit the Philippines on 4th March, 1950, in accordance with the International Air Service Transit Agreement to which both our Governments are parties. I understand that the Civil Aeronautics Administration requires 24 hours notice of the beginning of such a service and I should be glad if you could arrange that they and any other relevant Philippine Government authorities should be notified. The schedule of the service is as follows:

Northbound.—Arrive Manila Wednesdays and Saturdays 0830 hours G.M.T. 1630 L.S.T.

Depart Manila Thursdays and Sundays 2245 G.M.T. 0645 L.S.T.

Southbound.—Arrive Manila Fridays and Tuesdays 0740 G.M.T. 1540 L.S.T. Depart Saturdays and Wednesdays 2200 G.M.T. 0600 L.S.T.

I should be glad if you could advise me whether your Government has yet reached a decision in regard to the exercise of traffic rights for this service. The present service will, of course, exercise transit rights only.

I am sending two copies of this letter to the Civil Aeronautics Administration.

I avail myself of this opportunity to renew to you the assurances of my highest consideration.

/s/ J. K. WALLER
/t/ (J. K. WALLER)
Consul-General

The Hon. FELINO NERI
Undersecretary
Department of Foreign Affairs
Manila

PHILIPPINE AIR LINES, INC.

March 1, 1950

The Department of Foreign Affairs
Manila

Attn.: Atty. SIMEON ROXAS
Treaty Division

Sirs :

In connection with the note of the Australian Consul General dated January 30th last seeking for traffic rights at Manila in behalf of the Qantas Empire Airways, we have the honor to state that at the moment we do not propose to object to traffic stops by Qantas Empire Airways to and from Manila along intermediate points, provided, no fifth freedom shall be afforded to said airline at Manila in respect of either Hongkong or Tokyo and provided, further, that reciprocal to this grant of limited traffic rights at Manila it should be expressly understood that Philippine Air Lines shall have traffic rights at Sydney and Darwin on a non-scheduled basis.

In relation to the suggestion in the said note that Australia will soon initiate conversations with the Philippine Government for the conclusion of an air bilateral treaty, we beg to state that for the present there exists no practical benefit for airlines of the Philippines to have such a treaty and, therefore, allow us to recommend the indefinite postponement of such conversations.

Respectfully,

PHILIPPINE AIR LINES, INC.

By;

DANIEL ME. GOMEZ
Secretary General

30th January, 1950

Sir:

As you are aware, Qantas Empire Airways at present operates, on behalf of the Australian Government, a military air service between Australia and Japan which, with the authority of your Government, makes technical stops at Manila. This service is used solely for the logistic support of the British Commonwealth Occupation Forces in Japan.

The Australian authorities have been contemplating for some time the substitution of a civil air service for the present military air service and have now obtained authorization from the appropriate authority in Japan for such services to exercise traffic rights there. The civil air service would still continue to be used to the full extent necessary for the logistic support of the British Commonwealth forces in Japan in addition to the carriage of civil air traffic.

The Australian authorities desire to operate a civil air service to Japan via Manila on the same route as that at present used by the military air service. They would also be desirous of exercising traffic rights at Manila on this service, with the authority of Philippine Government, and would wish to undertake at an early date negotiations of an air transport agreement with appropriate Philippine authorities for that purpose.

You will remember that your Government had contemplated some time ago the dispatch of a delegation to Australia to undertake negotiations regarding an Air Transport Agreement. The Australian authorities would be pleased to welcome a Philippine Delegation to Australia for such negotiations. If, however, your Government is unable to arrange for such a Delegation to visit Australia, the Australian Government would be willing to send a Delegation to Manila at a time convenient to your Government to undertake the necessary negotiations there. My Government has requested me to ascertain from you your views on this proposal.

In the meantime, until arrangements can be completed with your Government for the exercise by an Australian civil air service of traffic rights at Manila, the Australian authorities desire that this service exercise rights of transit over Philippine territory and rights of traffic stops at Manila in accordance with the International Air Service Transit Agreement to which both our Governments are parties. In connection with the exercise of these rights my Government has asked me to ascertain from you whether there are any formalities which your Government desires to be met. The civil air service will be operated by Qantas Empire Airways with Skymaster aircraft. Qantas Empire Airways, as you may be aware, is wholly owned and controlled by the Australian Government. The actual date for the commencement of civil air service is expected to be in the near future and the frequency at which it will operate has not yet been determined. I will inform you regarding these matters as soon as I have further advice from my Government,

The Australian authorities have instructed me to say that they would be glad to have advice from you regarding this matter as early as is convenient.

I avail myself of this opportunity to renew to you the assurance of my highest consideration.

/ s/ J. K. WALLER
/t/ (J. K. WALLER)
Consul-General

The Hon. FELINO NERI
Undersecretary
Department of Foreign Affairs
Manila