62 STAT.] CHILE-AIR TRANSPORT SERVICES-MAY 10, 1947 B) The air transport capacity offered by the airlines of both coun- tries should be closely related to traffic requirements. C) In the operation of common sections of trunk routes, established in Annex "B" of this agreement, the airlines of the contracting parties should take into account their reciprocal interests so as not to affect unduly their respective services. D) The services provided by an airline designated under this agree- ment and its annexes shall retain as their primary objective the pro- vision of capacity adequate to the traffic demand between the country (or points under its jurisdiction) of which such airline is a national and the country of ultimate destination of the traffic. E) The right to embark and to disembark at points under the jurisdiction of the other country passengers, cargo, and mail destined for or coming from third countries shall be applied in accordance with the general principles of orderly development. Both govern- ments agree that traffic capacity shall be related to: 1) The traffic requirements between the country of origin (or points under its jurisdiction) and the countries of destination; 2) The requirements of through airline operation; and 3) The traffic requirements of the zone through which the airline passes, taking previously into account the requirements of local or regional services. F) The appropriate aeronautical authorities of each of the con- tracting parties may consult from time to time, or at the request of one of the parties, to determine the extent to which the principles set forth in this Annex are being followed by the airlines designated by the contracting parties. When these authorities agree on further measures necessary to give these principles practical application, the executive authorities of each of the contracting parties will use their best efforts under the powers available to them to put such measures into effect. G) Each contracting party may, subject to the provisions of this agreement, designate the routes to be followed within its territory by the airline or airlines of the other contracting party. The airline or airlines of either contracting party shall, if the regulations of the other contracting party so require, land at an airport designated by that contracting party for the purpose of customs and other examinations. On departure from the territory of a contracting party, such aircraft shall, if that party so requires, depart from a similarly designated customs airport. H) a. The determination of rates in accordance with the following paragraphs shall be made at reasonable levels, due regard being paid to all relevant factors, such as cost of operation, reasonable profit, and the rates charged by any other airline, as well as the charac- teristics of each service (such as speed and comfort). b. The rates to be charged by the airlines of either contracting party between points in the territory of the United States and points in Chilean territory on the routes described in Annex "B" shall, consistent with the provisions of the present Agreement and its An- 3759 Provision of ade- quate capacity. Right to embark, etc. Consultation re- specting application of measures. I)eslgnation of routes, airports. et. Determination of rates. Pot, p. 3761.
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