INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [63 SrAT. authorities of both contracting parties do not approve any rates set by such airlines, the question shall become the subject of consultation between the aeronautical authorities of the two contracting parties. In considering such rates the aeronautical authorities shall have re- Anu, p. Wo. gard particularly to Section IV of this Annex and to the desire of both contracting parties to foster and encourage the development of efficient and economically sound trunk air services by the designated airlines over the specified routes. If the aeronautical authorities can- not reach agreement, both contracting parties shall submit, at the request of either party, the question in dispute to arbitration as pro- Ante, p. 237. vided for in Article 10 of the Agreement. Filing of rates. C. Any rate proposed by the airline or airlines of either contracting party shall be filed with the aeronautical authorities of both con- tracting parties at least thirty (30) days before the proposed date of introduction; provided that this period of thirty (30) days may be reduced in particular cases if so agreed by the aeronautical authorities of both contracting parties. Aeprovnaics Byad. D. The Civil Aeronautics Board of the United States having ap- proved the traffic conference machinery of the International Air Transport Association (hereinafter called IATA) for a period of two years beginning in February 1948, any rate agreements concluded through this machinery during this period and involving United States airlines will be subject to approval of the Board. Rate agree- ments concluded through this machinery will also be subject to the approval of the aeronautical authorities of Switzerland pursuant to the principles enunciated in paragraph B above. E. The contracting parties agree that the procedure described in paragraphs F, G and H of this Section shall apply: 1) if during the period of the Civil Aeronautics Board's ap- proval of the IATA traffic conference machinery, either any specific rate agreement is not approved within a reasonable time by either contracting party or a conference of IATA is unable to agree on a rate, or 2) at any time no IATA machinery is applicable, or 3) if either contracting party at any time withdraws or fails to renew its approval of that of the IATA Traffic Conference machinery relevant to this Section. F. In the event that power is conferred by law upon the aero- nautical authorities of the United States to fix fair and economic rates for the transport of persons and property by air on international services and to suspend proposed rates in a manner comparable to that in which the Civil Aeronautics Board at present is empowered to act with respect to such rates for the transport of persons and property by air within the United States, each of the contracting parties shall thereafter exercise its authority in such manner as to prevent any rate or rates proposed by one of its airlines of services from the terri- tory of the other contracting party from becoming effective, if in the judgment of the aeronautical authorities of the contracting party whose airline or airlines is or are proposing such rate, that rate is 2442
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