INTERNATIONAL AGREEMENTS OTHER THAN TREATIES Regular air routes, etc., consent required. Submission of ap- plication for operating rights through dip- lomatic channels. Jurisdiction over aircraft, passengers, etc. "Air commerce" de- fined. It is, however, agreed that no regular air route or service may be established or operated to, within or over territory of either Party, with or without a landing there, except by prior consent of such Party. Any air transport company of either Party applying for operating rights in territory of the other Party, on a route or service between the territories of the two Parties, shall be required to submit its application through diplomatic channels. ARTICLE 5. The aircraft of each of the Parties to this arrangement, their crews and passengers, and goods carried thereon shall, while within the territory of the other Party, be subject to the laws in force in that territory, including all regulations relating to air traffic applica- ble to foreign aircraft, the transport of passengers and goods, and public safety and order, as well as any regulations concerning immi- gration, quarantine and customs. Subject to the provisions of the preceding paragraph and to the laws and regulations therein specified, the carriage of passengers and the import or export of all merchandise which may be legally im- ported or exported will be permitted in aircraft of the one Party into or from the territory of the other Party and, subject to the provi- sions of the preceding paragraph and to the laws and regulations therein specified, the aircraft of the one Party their crews, passen- gers and cargoes shall enjoy in the territory of the other Party the same privileges as the aircraft of such other Party, their crews, pas- sengers and cargoes enjoy in that territory, and shall not merely by reason of the nationality of the aircraft be subjected to duties or charges other or higher than those which are or may be imposed on aircraft of the territory referred to, or on aircraft of any foreign country engaged in international commerce, or on their crews, pas- sengers or cargoes, it being understood that n this respect the claim- ant has the choice of national or most-favored-nation treatment. Each of the Parties to this arrangement may reserve to its own aircraft air commerce as defined in the last paragraph of this article. Nevertheless the aircraft of each Party may proceed from any aero- drome in the territory of the other Party which they are entitled to use to any other such aerodrome either for the purpose of landing the whole or part of their cargoes or passengers or of taking on board the whole or part of their cargoes or passengers, provided that such cargoes are covered by through bills of lading, and such passengers hold through tickets, issued respectively for a journey whose starting place and destination are not both points between which air com- merce has been duly so reserved, and such aircraft, while proceeding as aforesaid, from one aerodrome to another, shall, notwithstanding that both such aerodromes are points between which air commerce has been duly reserved, enjoy all the privileges of this arrangement. The term "air commerce" as used in the preceding paragraph shall, with respect to the Parties to this arrangement,be understood to mean:-(a) navigation of aircraft in territory of either Party in furtherance of a business; (b) navigation of aircraft from one place in territory of either Party to another place in that territory in the conduct of a business; and (c) the commercial transport of persons or goods between any two points in the territory of either Party. 320
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