S45:ected Documents No. 18 U. SonChinaAgreements

September 17, 1980 TIA~ 103a6 United States Department of State Bureau of Public Affairs Washington, D.C.

Following are texts of the civil air trans- ARTICLE1 Definitions For the purpose of this Agreement, the signed by the United term: States a?d the People's Republic of China !a) 'Aeronautical authorities" means, in on Septewzber 17,1980. the case of the United States of A~nerica,the Civil Aeronautics Board or the Department of Civil Air Transport Agreement Transportation, whichever has jurisdiction, and in, the case of the People's Republic of - AGREEMENT BETWEEN China, the General Administration of Civil THE GOVERNMENT OF THE Aviation of China, or in either case any other UNITED STATES OF AMERICA authority or agency empowered to perform the AND THE GOVERNblENT OF THE functions now exercrsed by the'said ac- PEOPLE'S REPUBLIC OF CHINA thorities; RELATING TO CIVIL AIR TRAYSPORT (b) "Agreement" means this Agreement, its annexes, and any amendments thereto; The Government of the United States of (c) "Convention" means the Convention America and the GovernmenLof the People's on International Civil Aviation, opened for Republic of China, signature at Chicago on December 7,1944, iri- Desiring to develop mutual relations be- cluding tween their countries, to enhance friendship any amendment which has entered into between their peoples, and to facilitate inte2r force under Article 94 (a) of the Convention national transport; and has been ratified by both Parties, and Acting in the spirit of the Joint Com- any annex or any amendment thereto munique of December 15, 1978 on the Estab- adopted under Article 90 of the Convention, lishment of Diplomatic Relations between the insofar as such annex or amendment is effec- United States of America and the People's Re- tive for both Parties; public of China; Observing the principles of mutu,al.respect (dl "Airline" means any air transport ell- for independence and sovereignty, non- terprise dfering or operating international air interference in each other's internal affairs, serrices; equality and mutual benefit and friendly coop (el "Designated airiine" means an airline eration; designated and authorized in accordance with Recognizing the importance of reasonable Article 3 of this Agreement; bkance of rights and benefits between both (0 "Air service" means scheduled air ser- Parties under this Agreement; vice performed by aircraft for the public Being Parties to the Convention on Inter- transport of passengers, baggage, cargo or national Civil Aviatiori opened for signature at m.ai1, separately or in combination, for remun- Chicago on December 7,1944; eration or hire; -Have agreed on the establishment and op- (g) "International air service" mzsns an eration of air transportation involving their re- air service which passes through the air space spective territories as follows: over the territory of more tha.1 one State; (h) "Stop for non-trafFic purposes" means a landing for any purpose other than taking on or discharging passengers, baggage, cargo or Inail. (4) On receipt of such designation the are required for the operation of the agreed other Party shall, subject to the provisions of services, as set forth in Annex I11 to this paragraphs (2) and 13) of this Article and of Agreement. (1) Each Party grants to the other Party Article 7, grant to the airline so designated the (2) The designated airHne(s) of each Party the rights apetified in this Agreement to ena- appropriate authorizations with minimum shall be charged for the use of airports, ble its designated airline(s1 to establish and procedural delay. equipment and technical services of the other operate scheduled air services on the route(s) (5) When an airline has been so desig- Party at fair and reasonable rates. Neither specified in Annex I to this Agreement. Such nated and authorized it may commence opera- Party shall impose on the designated airline(s) mute(s) and services shall hereinafter be re- tions on or after the date(s) specified in the of the other Party rates higher than those im- ferred to as "the specified route(~)*and 'the appropriate authorizations. posed on any other foreign airline operating in- agreed servicesn respectively. ternational air service. (2) Subject to the provisions of the (3) All charges referred to in paragraph Agreement, the designated airline(s) of each (2) of this Article imposed on the designated Party, while operating the agreed services on Revocation of Authorizations airline(s) of the other Party may reflect, but the specified route(s), shall enjoy the following (1) %sch Party shall have the right to re- shall not exceed, an equitable portion of the rights: voke, suspend, or to impose such conditions as full economic cost of providing the facilities or it may deem necessary on the appropriate au- services in question. Facilities and services for (a) to make stops at points on the which charges are levied shall be provided on specified route(& in the territory of the other thorizations granted to a designated airline of the other Party where: an efficient and economic basis. Reasonable Party for the purpose of taking on board and notice shall be given prior to changes in discharging international traffic in passengers, (a) it is not satisfied that substantial charges. Each Party shall encourage consulta- baggage, cargo and mail; and ownership and effective control of that airline tions between the competent charging au- (b) subject to the approval of the aemS are vested in the Party designating the airline thorities in its territory and the airline($) using nautical authorities of the other Party, to make or its nationals; or the services and facilities, and shdl encourage stops for non-traffic purposes at points on the (b) that airline fails to comply with the the competent charging authorities and the air- specified route(& in the territory of the other laws and regulations of the Party granting the line(~)to exchange such information as may be Party. rights specified in Article 2 of this Agreement; necessary to permit an accurage review of the (3) Nothing in paragraph (2)(a) of this Ar or reasonableness of the charges. (c) that other Party or that airline ticle shall be deemed to confer on the desig- A~ICLE7 nated airline(s) of one Party the right of taking otherwise fails to comply with the conditions on at one point in the territory of the other as set forth under this Agreement. - Safety Party Wlcin passengers, baggage, cargo or (2) Unless immediate revocation, suspen- mait destined for another point in the territory (I) Mutually acceptable aeronautical facil- sion or imposition of the conditions mentioned ities and services shall be provided by each of the other Party (stopover and cabotage traf- in paragraph (1) of this Article is essential to fic), except the non-revenue traffic in person- Party for the operation of the agreed services, prevent further non-compliance with subpara- which facilities and services shall at least equal nel of such airline(s), their families, baggage graphs l(b) or (c) of this Article, such rights . and household effects, articles used by the the minimum standards which may be estab- shall be exercised only after consultations with lished pursuant to the Convention, to the representative offices of such airline(s.1 and air- the other Party. are craft stores and spare parts of such airlineb) extent that such minimum standards for use in the operation of the agreed services. applicable. Any exchange of rights between the Parties to (2) Each Party shall recognize as valid, allow the designated airline(s) of either Party Application of Law8 for the purpose of operating the agreed ser- vices, certificates of airworthiness, certificates to carry on-line stopover between the (1) The laws and regulations of eachnParty points on the specified route(s) in the territory of competency, and licenses isstled or rendered dating to the admission to, operation within valid by the other Party and still in force, pro- of the other Party shall be subject to consulta- and departure from its territory of aircraft en- tions at an appropriate time in the future. vided that the requirements for such certifi- gaged in the operation of international air ser- cates or licenses at least equal the minimum (4) The operation of the agreed services vice shall be complied with by the designated by the designated airline(s) on routes over standards which may be established pursuant airline(s) of the other Party, while entering, to the Convention. Each Party may, however, third countries shall be conducted on routes within, and departing from the territory of the available to the airlines of both Parties, unless refuse to recognize as valid, for the purpose of frrst Party. flight above its own territory, certificates of otherwise agreed. (2) The laws and regulations of each Party competency and licenses granted to or ren- (5) Charter air transportation shall be relating to the admission to, presence within, governed by the provisions of Annex 11. dered valid for its own nationals by the other and departure from its territory of passengers, Party. crew, baggage, cargo and mail shall be appli- (3) Each Party may request consultations cable to the designated airline(s) of the other concerning the safety and security standards Designation and Authm-i.zation Party, and the passengers, crew, baggage, maintained by the other Party relating to cargo and mail carried by such airline(s), while aeronautical facilities and services, crew, air- (1) Each Party shall have the right to des- entering, within and departing from .thekerri- , craft and operations of the designated airlines. ignate in writing through diplomatic channels tory of the first Party. If,following such consultations, one Party is of to the other Party two airIines to operate the (3) Each Party shall promptly supply to the view that the other Party does not effec- agreed services on the specified route(s), and the other Party at the latter's request the tively maintain and administer safety and se- to withdraw or alter such designations. In the texts of the laws and regulations referred to in curity standards and requirements in these operation of the agreed services, the desig- paragraphs (1) and (2) of this Article. areas that at least equal the minimum stand- nated airlines may operate combination or all-, ards which may be established pursuant to the cargo service or both. Convention, to the extent that they are appli- (2) Substantial ownership and effective cable, the other Party shall be informed of control of an airline designated by a Party Rchnical Services and Charges Party such views together with suggestions for ap- shall be vested in such or its nationals. (1) Each Party shall desi@ate in its terri- propriate action. Each Party reserves its (3) The aeronautical authorities of the tory regular airports and altentate airports to rights under Article 4 of this Agreement. other Party may require an airline designated be used by the designated airline(s) of the by the fvst Party to satisfy them that it is other Party for the operation of the agreed qualified to furifill the conditions prescribed services, and shall provide the latter with such under the laws and regulations normally communications, navigational, meteorological Aviation Security applied to the operation of international air and other auxiliary services in,its territory as services by the said authorities. The Parties reaffirm their grave concern about acts or threats against the security of &craft, which jeopardize the safety of persons. Parties. Each designated airline shall be per sure that there exist fair and equal rights for or property, adversely affect the operation of mitted such number of staff as is adequate to the designated airlines of both Parties to oper- air services and undermine public confidence perform the functions described in this ate the agreed services on the specified routes in the safety of civil aviation. The Parties Agreement associated with the provision of so as to achieve equality of opportunity, rea- agree to Implement appropriate aviation secu- the agreed services, and in no event shall be sonable balance and mutual benefit. rity measures and to provide necessary aid to less than that permitted to any foreign airline (3) The apedservices to be operated by each other with a view to preventing hijack- performing comparable services, Each Party the designated airlines of the Parties shall ing~and sabotage to aircraft, airports and air shall by diplomatic note notify the other Party have as their primary objective the provision navigation facilities and threats to aviation se- of the authorities which shall be considered the of capacity adequate to meet the traffic re- curity. When incidents or threats of hijackings competent authorities for purposes of this quirements between the territories of the two or sabotage against aircraft, airports or air p81"agmph. Parties. The right to embark on or disembark navigation facilities occur, the Parties shall as- from such services international traffic des- sist each other by facilitating communications tined for or coming from points in third coun- intended to terminate such incidents rapidly tries shall be subject to the general principle and safely. Each Party shall give sympathetic Market Access that capacity shall be related to: consideration to any request from the other (1) Matters relating to ground handling Party for special security measures for its ab (a) traffic requirements to and from the pertaining to the operation of the agreed ser- territory of the Party which has designated craft or passengers to meet a particular vices may be agreed upon between the airlines threat. the airline and tdcrequirements to and of both Parties, subject to the approval of the from the territory of the other Party; aeronautical authorities of both Parties. (b) the requirements of through airline (2) The sale, in the territory of each operation; and * Representstive Omes Party, of air transportation on the agreed seF (c) the traffic requirements of the area vices of the designated airline($) of the other (1) For the operation of the agreed ser be through which the airline passes after taking Party shall effected through a general sales account of local and regional services. vices on the specified route(s), the designated agent(s). The designated airlinefs) of each airline(s) of each Party shall have the right to Party shall serve as general sales agent(s) for (4) Each Party and its designated air- set up representative offices at the points on the designated airline(s) of the other Party un- line(~)shall take into consideration the inter- the specified route(s1 within the territory of less such airline(s) is offered and declines such ests of the other Party and its designated air- the other Party. The staff of the representative agency. The terms and conditions of each gen- line(~)so as not to affect unduly the services offices referred to in this paragraph shall be eral sales agency agreement shall be subject to which the latter provides. subject to the laws and regulations in force in the approval of the aeronautical authorities of (5) If, after a reasonable period of opera- the country where such offices are located. both Parties. The Parties shall ensure that, if tion, either Party believes that a service by a (2) Each Party shall to the maximum ex- either Party designates d second airline for designated airline of the other Party is not tent practicable ensure the safety of the repre- provision of the agreed services, both desig- consonant with any provision of this Article, sentative offices and their staff members of the nated airlines shall be given the opportunity to the Parties shall consult promptly to settle the designated airlinds) of the other Party, as well act as general sales agents for the designated matter in a spirit of friendly cooperation and as safeguard their aircraft, stores, and other airline(s) of the other Party on the same terms mutual understanding. properties in its territory for use in the opera- and conditions. (6) If, at any time, either Party is of the tion of the agreed services. (3) Notwithstanding paragraph (2)of this view that traffic is not reasonably balanced, (3) Each Party shall extend assistance Article, the designated airline(s) of each Party, that Party may request consultations with the and facilities to the representative ofices and in its representative office(s) in the territory of other Party for the purpose of remedying the their staff members of the designated airline(s1 the other Party, may sell air transportation on imbalanced situation in a spirit of friendly of the other Party as necessary for the effi- the agreed services and on all of its other ser- cooperation and equality and mutual benefit. cient operation of the agreed services. vices, directly or through the agents of its own (4) The designated airline(s) of each Party appointment. Any person shall be free to pur- shall have the right to convert and remit to its chase such transportation in the currency of country at any time on demand local revenues that territory or, in accordance with applicable Pricing in excess of sums locally disbursed. Conversion law, in foreign exchange certificates or freely (1) Each Party may require the filing with and remittance shall be effected without convertible currencies. In addition the repre- its aeronautical authorities of fares to be restrictions at the prevailing rate of exchange sentative office(s) may be used for manage- charged for transportation of passengers to in effect for current transactions and remit- ment, informational; and operational activities and from its territory. Such filing shall be tance and shall be exempt from taxation on the of the designated airline($. made sixty (60) days prior to the date on which basis of reciprocity. Wherever the payments (4) The general safes agent for a desig- the fares are proposed to go into effect. In ad- system between the Parties is governed by a nated airline appointed in accordance with dition, the aeronautical authorities of both special agreement, that special agreement paragraph (2) of this Article shall be respon- Parties agree to give prompt and sympathetic Wl apply. sive to the preferences expressed by the consideration to short-notice filings. If the traveling and shipping public regarding airline competent authorities of a Party are dissatis- selection, class of services and other related fied with a fare, they shall notify the compe- matters. tent authorities of the other Party as soon as Personnel possible, and in no event more than thirty (30) days after the date of receipt of the filing in (1) The crew members of the designated question. The competent authorities of either Capacity and Carriage of Zkqffic &line(s) of either Party on flights into and out Party may then request consultations which of the territory of the other Party shall be na- (1) The designated 'airlines of both Parties shall be held as soon as possible, and in no tionals of the Party designating such airline(s). shall be permitted to provide capacity in event more than thirty (30) days after the date Xf a designated airline of either Party desires operating the agreed services as agreed by the of receipt of the request by the competent au- to employ crew members of any other national- Parties and set forth in Annex V of the thorities of the other Party. If agreement is ity on flights into and out of the territory of Agreement. Within two and one-half years reached during consultations, the competent the other Party, prior approval shall be ob- after the commencement of any agreed service authorities of each Party shall ensure that no tained from that other Party. under this Agreement, the Parties shall con- fare inconsistent with such agreement is put (2) The staff of the representative offices sult with a view to reaching a new agreement into effect. If agreement is not reached during of the designated airline(s) of each party in the which shall apply to the provision of capacity. consultations, the fare in question shall not go territory of the other Party shall be nationals (2) In keeping with the principles set into effect, and the fare previously in force of either Party, unless otherwise agreed. The forth in the Preamble to this Agreement, each shall remain effective until a new fare is number of such staff shall be subject to the ap- Party shall take all appropriate action to en- established. proval of the competent authorities of both (2) If the competent authorities do not the normal economy fare for the purpose of es- used on a part of the journey performed over express dissatisfaction within thirty (30) days tablishing the 30 percent zone of pricing flexi- the territory of the Party in which they are after the date of receipt of the filing of a fare bility set forth in subparagraph (a) shall re- taken on board; made in accordance with prwpaph (1) above, main unchanged absent mutual agreement of (b) ground equipment and spare parts it shall be considered as appmved. both Parties. including engines introduced into the territory (3) Notwithstanding paragraph (1) above, Nothing in subparagraph (a) or (b) shall be of a Party for the servicing, maintenance or each Party shall permit any designated airline construed as requiring a designated airline to repair of aircraft of a designated airline of the to file and institute promptly, using short- institute any specific fare. other Party used in the operation of the agreed notice procedures, if necessaly, a fare for (4) (a) Each Party may require the filing services; and scheduled passenger servicca between a point with its aeronautical authorities of rates to be (c) fuel, lubricants and consumable or points in the United Statins of America and charged for transportation of cargo to and from technical supplies introduced into or supplied a point or points in the People's Republic of its territory by the designated airline(s) of the in the territory of a Party for use in an aircraft China, provided that: other Party. Such filing shall be made forty- of a designated airline of the other Party en- (a) the fare is subject to terms and con- five (45) days prior to the date on which the gaged in the operation of the agreed services, ditions as agreed in Annex f V to this Agree- rates are proposed to go into effect. In addi- even when these supplies are to be used cjn a ment, and such fare would not. be less than 70 tion, the aeronautical authorities of both Par part of the journey performed over the terri- percent of the lowest normal economy fare ap ties agree to give prompt and sympathetic tory of the Party in which they are taken on proved for sale by any designated airline for consideration to short-notice filings of the board. travel between the same point or points in the designated airlines. (3) Aircraft stores, equipment and United States of America aild the same point (b) The competent authorities of each supplies referred to in paragraph (1) of this Ar- or points in the People's Rtyublic of China; or Party shall have the right to disapprove cargo ticle retained on board the aircraft of the des- (b) the fare on the syttcified route(s) rates. Notices of disapproval shalt be given ignated airline(s) of either Party engaged in (hereinafter, the matching frrtu) represents a within twenty-five (25) days after receipt of the operation of the agreed services may be reduction of an approved faw but is not below the filing. A rate which has been disapproved unloaded in the territory of the other Party any approved fare or any cotnbination of fares, shall not go into effect, and the rate previously with the approval of the customs authorities of whether or not approved, for the provision of in force shall remain effective until a new rate that other Party. The aircraft stores, equip- international air service betivc3en the United is established. ment and supplies unloaded, as well as aircraft States of America and the Pt\c.~ple'sRepublic of (c) A Party shall not require the desig- stores, equipment and supplies introduced into China (hereinafter, the matrhcd fare), and is .nated airline(s) of the other Party to charge the territory of the other Party referred to in subject to similar terms and conditions as the rates different from those it authorizes for its paragraph (2) of this Article, shall be subject matched fare, except those conditions relating own airline(s) or those of other countries. to the supervision or control of the said au- to routing, connections, or aimraft type, pro- (5) Notwithstanding the provisions of this thorities, and if required to fair and reasonable vided that: Article, each Party shall p6rmit any desig- storage charges, up to such time as they are nated airline to file and institute promptly, re-exported or otherwise disposed of in ac- (i) if the matched fan. is for services using shart-notice procedures, if necessary, a cordance with the regulations of such au- provided in whole or in part by a designated fare or rate identical to that offered by any . thorities. airline over the specified routtl(s), the desig- other designated airline in accordance with the (4) The exemptions provided for by this nated airline(s) of the other I'arty shall be provisions of this Article for transportation be- Article shall also be available where a desig- permitted to institute a matching fare over the tween the same points and subject to compar- nated *line of one Party has contracted with specified route(s1; able tenps and conditions. another airline, which similarly enjoys such (ii) if the matched fmv is for services (6) Each Party shall by diplomatic note exemptions from the other Party, for the loan provided in whole or in part hy a designated notify the other Party of the authorities which in the territory of the other Party of the items airline over a route(s) other th:m the specified shall be considered the competent authorities specified in paragraphs (1)and (2) of this Arti- route($), the designated airLnt.(s) of the other for purposes of this Article. cle. The treatment by a Party of a sale of any Party shall be permitted to ~llbtitutea match- such item within its territory shall be deter- ing fare over the specified nwte(s) which is not mined by agreement of the Parties. less than 70 percent of the lo\vt.st comparable (5) Each Party shall use its best efforts to approved fare, excluding discinmt fares; Customs Duties and nxes secure for the designated airline(s) of the other (iii) if the matched fa~vis offered solely (1) Aircraft of the designated airline(s1 of Party, on the basis of reciprocity, an exemption by a non-designated airline(a) over the from taxes, charges and fees imposed by state specified route(s), a designatt$tf airline shall be either Party engaged in the operation of the agreed services, as well as their regular or provincial, regional and local authorities on permitted to institute a mat ibl\ingfare over the the items specified in paragraphs (1) and (2) of specified route(s) which is not less than 70 per equipment, spare parts, fuel, oils (including hydraulic fluids), lubricants, aircraft stores this Article, as well as an exemption from fuel cent of the lowest comparablt. spproved fare, through-put charges, in the circumstances des- excluding discount fares; and, (including food, beverages, liquor, tobacco and other products for sale to or use by passengers ignated in this Article, with the exception of (iv) if the matched fiuv is offered solely in limited quantities during the flight) and charges based on the actual cost of the services by a non-designated airline(s1 over a route provided. other than the specified routtw), a designated other items intended for or used solely in con- airline shall be permitted to it~atitutea match- nection with the operation or servicing of the ing fare over the specified rout c(s)which is not aircraft, which are retained on board such aif- less than 80 percent of the lu\vest comparable craft shall be exempt on the basis of reciproc- Provision of Statistics approved fare, excluding discount fares. ity from all customs duties, inspection fees and k other national charges on arrival in and depar The aeronautical authorities of both Par- The Parties shal1 review the practice of ture from the territory of.the other Party. ties will consult from time to time concerning, , matching of fares before the t.1111 of three years (2) The following shall also be exempt on and will provide, as agreed, statistics of traEfic after commencement of any akmd service. the basis of reciprocity from all customs duties, carried on the agreed services between the Each Party also agrees t ~r spply subpara- inspection fees and other national charges, two countries. graph (b), mutatis mutandts, to fares of the with the exception of charges based on the designated airline(s) of the other Party for the actual cost of the service provided: provision of international air service between the territory of the fwst Party and a third (a) aircraft stores introduced into or Consultations supplied in country. the territory of a Party and taken (I) The Parties shall ensure the correct If, under the terms of subparagraph (b), a an board, within reasonable limits, for use on implementation of, and satisfactory compliance designated airline institutes a lower normal aircraft of a designated airline of the other with, the provisions of this Agreement in a economy fare than the fare, or fws, put into Party engaged in the operation of the agreed services, even when these stops are to be spirit of close cooperation and mutual support. effect pursuant to paragraph (1) of this Article, To this end, the aeronautical authorities of the Partis shall consult each other from time to B- For tJre People's Republic of China: (4) Subject to the provisions of Annex V, time. The first airline designated by the the designated airline(s) of each Party may (2) Either Party may, at any time, re- People's Republic of China shall be entitled to make a change of gauge in the territory of the quest consultations relating to this Agmement. operate the agreed mvices on the following other Party or at an intermediate point or Such consultations shall begin at the earliest mute, in both directions: points on the specif~edrouteis) provided that: possible date, in no event later than sixty (60) Beijing, Shanghai, Tokyo or another point days from the date the other Party receives in Japan, Honolulu, Los Angeles, San (a) operation beyond the point of the request unless otherwise agreed. Francisco, New York. Anchorage may be change of gauge shdl be performed by an air- (3) If any dispute arises between the P~F utilized as a technical stop in both diic- craft having capacity less, for outbound ser- ties relating to the interpretation or applica- tions on this route. vices, or more, for inbound services, than that tion of this Agreement, the Parties shall, in a of the arriving aircraft. spirit of friendly cooperation and mutual II. Second Route (b) aircraft for such operations shall be understanding, settle it by negotiation or, if scheduled in coincidence with the outbound or the parties so agree, by mediation, concilia-. The Parties shall consult during the fwst inbound aircraft, as the case may be, and may tion, or arbitration. two years following the commencement of any have the same flight number; and qpeed service to decide on a route for opera- (c) if a flight is delayed by operational hnby the second designated airline of each or mechanical problems, the onward flight may Parts: If the Parties have been unable to agree operate without regard to the conditions in upon a second mute by the end of the second subparagraph (b) of this paragraph. year, the second designated airline of each (1) If either of the Parties considers it de- Psrty shall be entitled to commence operation sirable to modify or amend any provision of of ,-N this Agreement or its annexes, it may at any the agreed services on the first route in both ANNEX 11 directions, and to operate such services there- * time request consultations the other with until the Parties agree upon a second Charter Air Tkansportation Party, and such consultations shall begin after 1 mute. In such circumstances, the Parties shall within a period of ninety (90)days from the (1) In addition to the operation of the date of receipt of the request by the other continue to consult and to exercise their max- agreed services by the designated airlines of humeffort to reach agreement upon a second Party unless both Parties agree to an exten- the two Parties, any airline(s) of one Party mute, it being understood that the establish- may request permission to operate passenger sion of this period. ment of a second route is a mutually shared (2) Any rnWication or amendment to and/or cargo (separately or in combination) as objective of both Parties. In the meantime, the charter flights between the territories of the this Agreement or its annexes agreed upon Parties shall take overall review of the a result of the consultations referred to in Parties as well as between a third couniry and paragraph (1) of this Article shall come into specified routes. the territory of the Party to which the re- force when it has been confiied by an ex- quests are addressed. Each Party may provide change of notes through diplomatic channels. 111. ExhSection . to the other Party by diplomatic note a list of airlines qualified under the laws of the first In case any of the designated airline(s) of either Party to provide charter air transportation. Party desires to operate additional sec- ' (2) The application for charter flight(s) tions on its specified route(s), it shall submit shall be filed with the aeronautical authorities Enfqinto Farce and bination application to the aeronautical authorities of of the other Party at least fdteen (15) days be- This Agreement shall enter into force on the other Party three (3) days in advance of fore the anticipated flight(s). The flight(s) can the date of its signature and shall remain in such opemtion, and the additional sections can be operated only after permission has been ob- force for three years. Thereafter, it shall con- be commenced only after approvals have been tained. Permission shall be granted without tinue in force but may be terminated by either obtained therefrom. undue delay in the spirit of equality of oppor- Party by giving twelve months' written notice- tunity for the airlines of both Parties to oper- ta the other Party of its intention to termi- Notes ate international charter air transportation, nab. (1) On or after the effective date of this mutual benefit and friendly cooperation. DONE Agreement, each Party is entitled to designate (3) The aeronautical authorities of each at Washington, this seventeenth one airline for operation of the agreed sep Party shall minimize the filing requirements day of September 1980 in duplicate, each copy vices. Beginning two years after the com- and other administrative burdens applicable to in the English and Chinese languages, both charterers and airlines of the other Party. In being mencement of any agreed service, a second texts equally authentic. designated airline of each Party may also this connection, the charterers and airline of a commence the operation of the agreed ser Party shall not be required by the other Party FOR THE GOVERNMENT OF THE vices. If either Party does not designate a sec- to submit more than the following information UNITED STATES OF AMERICA: ond airline, or if its second designated airline in mtpport of a request for permission to opep does not commence or ceases to operate any ate a charter flight or series of flights: service, that Party may authorize its Fitdes- (a) Purpose of flight; FOR THE GOVERNMENT OF THE ignated airline to operate the agreed services (b) Nationality of registration, owner PEOPLE'S REPUBLIC OF CHINA: in dlrespects as if it were also designated as a and operator of aircraft; second airline. (c) Type of aircraft; (2) Each designated airline may at its op- .- (d) Either (i) identification marks and tion omit any point or points on the above cdsigns 6f the aircraft, or (ii) flight number; mutes on any or all flights in either or both (e) Name of captain and number of ANNEX I dhetions, provided, however, that the agreed crew members; I. First Route eervice it operates begins or terminates at a (0 The proposed flight plan (the air poht'on the specified route in the territory of mute, date, hours and destination); A. For the United States of America: the Party designating the airline. (g) The identity of the charterer or The fmt airline designated by the United (3) Before operation of service through charterers; States of America shall be entitled to operate snother point in Japan, referred to in Section I (h) The number of passengers, andlor the agreed services on the following route, in ofthis Annex, that point shall be agreed upon the weight of cargo, on board; and both directions: by the Parties. If a designated airline of either (i) The price charged by the airline to New York, San Francisco, Los Angeles, Party desires to change the point served in each charterer. Honolulu, Tokyo or another point in Japan, that airline shall furnish six (6) months' Japan, Shanghai, Beijing. notice to the aeronautical authorities of the The information contained in the applica- oZher'Party. Such change shall be subject to tion for charter flight@) and required by sub- the concurrence of that other Party. paragraphs (d), (e) and (h) may be changed, su6ject to notification prior to each flight. (2) In accordance with Article 6, para- VI. Radio Navigation and Communication Such changes shall be contained in the flight graph (1) of this Agreement, airlines desig- nated by the Government of the United States (1) For the operation of agreed services plan. on the specified routes, the Parties recognize (4) In the event that either Party should of America are assigned the following regular and alternate airports in Chi= the requirement for the establishment of have reasans to disapprove a particular cha~ point-to-point aeronautical communications be- ter flight or series of charter flights, it shall, Regular Airpmts under normal circumstances, give timely tween the two countries. The Parties shall notification of the reasons therefor, and the hold consultations as to the measures and pro- Bei~ing cedures for the establishment of such com- applicant may, where appropriate, resubmit an Capital Airport munications. application for approval of the requested flight Shanghai: (2) The English language and internation- or flights. Hongqiao Airport (5) Neither Party shall require the filing ally accepted codes and procedures in force Alternate Airpwta ahall be applied in air-ground and point-to- by airlines of the other Party of prices charged point communications. to the public for charter transportation . Guangzhou: originating in the territory of the other Party, Baiyun Airport or a third country Hangzhou: (6) The provisions of dcles2(4), 4, 5, 6, Jianqiao Airport ANNEX IV 7,8, %2) and (4), 10, 11(1), and 14 and Annex Tianjin: Conditions of Discount Fares 111 of this Agreement shall apply, mututia Zhangguizhuang Airport mzttundis, to charter air transportation. Discount fares within the zone of pricing II. Airports for Charter Air lhneportation flexibility described in paragraph (3) of Article 13 of this Agreement shall be subject to condi- ANNEX 111 Aircraft of the airline(s1 of each Party en- tions of the type generally applicable to same gaged in the operation of charter air transpor- or similar fares in other international air tation approved by the aeronautical authorities transportation markets. Such discount fares I. Airports for Scheduled Service of the other Party may utilize airports appro- shall be subject to conditions in not less than priately identified in the Aeronautical Infor- four of the following categories: (1) In accordance with Article 6, para- mation Publication of that other Party as graph (1) of this Agreement, &lines desig- available for international flights, and such Round trip requirements; nated by the Government of the People's Re- other airports as may be approved by such Advance-purchase requirements; public of China are assigned the following reg- . aeronautical authorities. Minimum-Maximum'length of ;tay re- ular and alternate airports in the United quirements; States: 111. Air Routes Stopover restrictions; Stopover charges; Regular Airports All flight operations by aircraft of the des- Transfer limitations; New York, New York: ignated airline(s) of one Party operated in the Cancellation refund penalties; JFK International Airport airspace of the other Party shall be over estab- Group size restrictions; Los Angeles, California: lished airwayslprescribed routes or as cleared Return travel conditions; Los Angeles International Airport by the appropriate air traffic control service. Ground package requirements. San Francisco, California: Each Party will make reasonable efforts to en- San Francisco International Airport sure that air routes entering and within their Honolulu, Hawaii: sovereign airspace are as direct as practicable ANNEX V Honolulu International Airport in the interest of economy, eficiency and fuel Anchorage, Alaska: conservation, including the establishment of Capacity and Carriage of Ik-.: Anchorage International Airport arrangements with controlling authorities of (1) The Parties agree that each designated aqlacent airspace as appropriate. Alternate Airports airline shall have the right to operate two fre- quencies per week. If a Party does not desig- Baltimore, Maryland: 1V. Aeronautical Information nate a second airline, its first designated air- Baltimore-Washington International Airport (1) The aeronautical authorities of both line shall, upon the commencement of service Boston, Massachusetts: Parties shall provide each other with their by the second airline of the other Party or Logan International Airport Aeronautical Information Publication. upon the passage of two years fmm the com- Newark, New Jersey: (2) Amendments and additions to the mencement of any agreed service, whichever Newark International Airport Aeronautical Information Publication shall be is earlier, be entitled to add to its operation Philadelphia, Pennsylvania: sent promptly to the aeronautical authorities two f'requencies per week. For purposes of this Philadelphia International Airport of the other Party. Agreement a frequency is: one (1) round trip Pittsburgh, Pennsylvania: (3) The International NOTAM Code shall flight of an aircraft having a maximum certrfi- Greater Pittsburgh Airport be used in the transmission of Notices to Air- cated take-off gross weight not less than Moses Lake, Washington: men (NOTAMs). When the NOTAM code is 710,000 pounds but not more than 800,000 Grant County Airport not suitable, plain English shall be used. Ur- pounds; one and one-half (1%)round trip Oakland, California: gent NOTAMs shall be transmitted by the. Gghts of an aircraft having a maximum cer- Metropolitan Oakland International Airport quickest available means to the aeronautical tified take-off gross weight equal to or Feater Ontario, California: authorities of the other Party than 430,000 pounds but less than 710,000 Ontario International Airport .(4) Aeronautical information and pounds; and two (2) round trip flights of an a& Stockton, California: NOTAMs shall be made available in the Eng- craft having a maximum certificated take-off Stockton Metropolitan Airport lish language. gross weight less than 430,000 pounds. If a Hilo, Hawaii: designated airline uses only aircraft having a Hilo InternationalIGeneral Lyman Airport V. Meteorological Senices maximum certificated take-off gross weight of Seattle, Washington: less than 710,000 pounds, it shall be entitled to Sea-Tac International Airport Mutually acceptable meteorological ser- one additional round trip flight of an all-freight Kansas City, Kansas: vice ahall be provided in accordance with configured aircrait having a maximum certifi- Kansas City International Aiiort standards and recommended practices, to the cated take-off gross weight of less than 430,000 Fairbanks, Alaska: extent to which they are applicable, developed pounds for every two frequencies. All unused Fairbanks International Auport pursuant to the Convention of the World frequencies may be accumulated by a desig. Washington, D. C.: Metemlogical Organization and International nated airline and used at its discretion at any Dulles International Airport Civil Aviation Organization. , time. Any increase in frequencies during the first three years after commencement of any agreed services, for connecting air services, 5. The appropriate authorities of each agreed service in excess of the frequencies as and for transportation over any other route or Party shall use their best efforts to assist the mentioned above shall be subject to prior con- routes outside of the agreed services which are designated airline@) of the other Party to re- sultation and agreement between the Parties. operated by such airline(s); and ceive housing for the staff of such airline(s) (2) With a view to realizing the objectives (b) the right to make, reconfirm, or comparable in cost and quality to the best ob- set forth in Article 12, paragraph (2), the Par- change reservations for passengers wishing to tained by or provided to other foreign airlines. ties agree that there should be a reasonable travel over the routes of such airline(s) 6. The designated airline(s) of each Party balance of the traffic carried by their respec- whether or not such reservations are for shall have the right to train the personnel.of tive designated airline(s1 on the specified transportation on the agreed services. any appointed agent in the procedures of that mute(s) in terms of number of passengers and airline for passenger, cargo, and aircraft han- tons of cargo taken up and put down in the 2. The designated airline(s1 of each Party dling and in procedures relating to reserva- territory of the other Party. shall also have the right to import, maintain, store, and distribute informational materials tions, ticketing, marketing, management, ant1 The consultations referred to in Article 12, sales promotion, subject to prior agreement. paragraph (6) shall take place as soon as possi- (including, but not limited to, time tables, ble, and in no event later than thirty (30) days schedules, brochures, sales and tour literature, This letter will be effective on the date the following the date of receipt of the request by calendars, displays, etc.) and to advertise in Civil Air Transport Agreement is signed. the latter Party. The Parties shall undertake the same manner and through the same or I would be grateful for your confirmation to reach agreement within thirty (30) days as similar media as the designated airline(s) of that this is also your understanding of the to effective measures for remedying the imbal- the other Party. agreement we have reached. I 3. With respect to operational matters, anced situation and fully implement such Sincerely, agreed measures. In considering the measures the designated airline(s) of each Party shall to be undertaken, the Parties shall take into have: 3. BOYDHIGHT account all relevant factors, including commer (a) the right to import, install, and op- Chairman cia1 decisions of the designated airlines, load erate telex, computer, VHF radio, and hand- Civil Aviation Delegation factors and actions of third parties. In case the held radio sets (walkie talkie) and related of the Government agreed measures fail to remedy the imbalance equipment for reservations, load planning and of the United States within three months after their implemqnta- management, and for other operational pur- Attachment: Initialed Translation tion, the Parties shall meet together to look poses, subject to the approval of the appropri- into the cause of such failure and agree upon 'ate authorities, where necessary; measures for remedying the imbalanced situa- (b) the right to supervise load planning Beijing tion. In case the Parties fail to reach aFee- and actual Ioading and unloading of its aircraft September 8,1980 . rnent on effective remedial measures, they through its own employeeg or representatives; shall look into the cause of the imbalance and fc) the right to import company-owned Mr. B. Boyd Hight consider amendments to this Agreemerlt which vehicles and to operate such vehicles on air- Chairman may be required to eliminate such cause. port roadways and aircraft servicing ramps, Civil Aviation Delegation of (3) The provision of paragraph (2) of this subject to the approval of the appropriate au- the Government of the United States thorities, where necessary; Annex is valid for three years from the date of Dear Mr. Hight: commenceme~ltof any service under this (d) the right to inspect fuel storage and Agreement. Not later than six months prior to fuel pumping equipment on a quarterly basis I have the honor to refer to the Civil Air the end of this three-year period, the Parties and take samples at each source for export and Transpoi-t Agreement initialed today by our shall consult with a view to agreeing to the slibsequent laboratory analysis; and two governments and to your letter of today's means to achieve reasonable balance of traffic (el the right to film, under whatever date which reads as follows: referred to in paragraph (2) of this Annex. supervision is necessary, the aircraft approach "I have the honor to refer to the Agree- view to the runways of all regular airports and alternate airports contemplated for the opera- ment between the Government of the United States of America and the Government of the Beijing tion of the agreed services, for purposes of pilot training, subject to the approval of the People's Republic of China relating to Civil Air September 8,1980 Transport initialed today by our two govern- appropriate authorities. ments. During the course of negotiations lead- / FLL:: Zheng 4. Each Party grants to the other Party ing to the initialing of the Agreement, both the assurance that the following authoriza- sides discussed questions relating to the con- Civil Aviation Delegation tions, permits, and information will be pro- duct of business in the territory of the other of the Government of China vided, on the basis of reciprocity, in a timely Party and other operational matters of the Dear Mr. Lin: fashion to each airline designated to operate designated airlines. I understand that agree- the agreed services: ment was reached that the designated air I have the honor to refer to the Agree- he(s) of each Party shall have, in the terri- ment between the Government of the United (a) airport security permits for as- tory of the other Party, the rights and privi- States of America and the Government of the signed foreign and locally employed company leges as set forth below: People's Republic of China relating to Civil Air staff authorizing them to move freely beyond 'kinsport initialed today by our two govern- airport customs and immigration screens info '-' 1. With respect to the representative of- ments. During the course of negotiations lead- the terminal Ioading areas and onto the airport fice(~)referred to in Article 11, paragraph (3)

ing to the initialing of the Agreement, both ramp areas; . +L of the Agreement, the designated airline(s) of sides discussed questions relating to the con- (b) written information on the proce- each Party shall have: duct of business in the territory of the other dures to be employed by the airport au- (a) the right to issue, reissue, reconfim Party and other operational matters of the thorities at each regular aikport and alternate designated airlines. I understand that agree- airport contemplated for the operation of the and exchange tickets for transportation on the ment was reached that the designated air- agreed services in the event of an emergency agreed services, for connecting air services, line(~)of each Party shall have, in the such as a crash, a hijacking, or a bomb threat, and for transportation over any other route or territory of the other Party, the rights and establishing the order of action in a given situ- routes outside of the agreed services which are operated by such airline(s); and privileges as set forth below: ation for units responsible for tower control, (b) the right to make, reconfirm, or 1. With respect to the representative of- tirefighting, medical assistance and transpor- tation, 'perimeter security and other emer- change reservations for passengers wishing to fices(~)referred to in Article 11, paragraph (3) gency and security functions in effect; and travel over the routes of such airline(s) of the Agreement, the designated airline(s) of whether or not such reservations are for (c) written information on aeronautical each Party shall have: , transportation on the agreed services. laws, including the rules and regulations (a) the right to issue, reissue, reconfirm thereunder and amendments thereto, each des- 2. The designated airline(s1 of each Party and exchange tickets for transportation on the * ignated airline is expected to follow. shall also have the right to import, maintain, stare, and distribute informational materials dling and in procedures relating to reserva- (3) The designated airline(s) of the (including, but not limited to, time tables, tions, ticketing, marketing, management, and People's Republic of China shall operate mare schedules, brochures, sales and tour literature, sales promotion, subject to prior agreement. than two Japan frequencies only if, and to the calendars, displays, etc.) and to advertise in same extent that, the designated alrline(s) of This letter will be effective on the date the are the same manner and through the same or Civil Air Transport Agreement is signed. the United States operating singly or in combination more than two Japan frequencies. similar media as the designated airline(s) of I would be grateful for your confirmation the other Party. that this is also your understanding of the (4) Not later than two and one-half years 3. With respect to operational matters, agreement we have reached." foIlowing the commencement of any agreed the designated airline(s1 of each Party shall service, the Parties shall review their respec- have: I have the honor to confirm that the above tive utilization of Japan frequencies. Tf, upon constitutes an agreed understanding between such review, the number of Japan frequencies (a) the right to import, install, and op- our two governments concerning the rights of operated by the U.S. designated airline(s) ew- erate telex, computer, VHF radio, and hand- the designated airline(s) of each Party in the ceeds the number of Japan frequencies which held radio sets (walkie talkie) and related territory of the other Party. the Government of the People's Republic of equipment for reservations, load pIanning ad This letter will be effective on the date the China and the Government of Japan have management, and for other operational pur- Civil Air Transport Agreement is signed. agreed upon for the Chinese designated air- poses, subject to the approval of the appropri- line(~),the Parties shall consult with a view to ate authorities, where necessary; Sincerely, agreeing upon an alternative opportunity or (b) the right to supervise load planning LINZHENG opportunities for the Chinese designated air- and actual loading and unloading of its aircraft Leader line(~). through its own employees or representatives; Civii Aviation Delegation (5) If, by 90 days prior to the end of the (c) the right to import company-owned of the Government third year following the commencement of any vehicles and to operate such vehicles on air- of China agreed service, the Parties have not aped port roadways and aircraft servicing ramps, upon an alternative opportunity or opportuni- subject to the approval of the appropriate au- ties, the People's Republic of China shall be thorities, where necessary; Beijing entitled to select point services2 for operation (d) the right to inspect fuel storage and September 8,1980 in the fourth year and thereafter equal to the fuel pumping equipment on a quarterly basis / difference between the number of Japan fre- and take samples at each source for export and Mr. B. Boyd Hight quencies operated by the U. S. designated air- subsequent laboratory analysis; and 3: chairman line(~)and the number of Japan frequencies (e) the right to film, under whatever Civil Aviation Delegation auiihorized for the Chinese designated air- supervision is necessary, the aircraft approach of the Government of the United States line(~).The Chinese designated airline(s) shall view to the runways of all regular airports and be entitled to operate such point services at alternate airports contemplated for the opera- Dear Mr. Hight: one or more intermediate andlor beyond points tion of the agreed services, for purposes of I have the honor to refer to the Agree- selected at the sole discretion of the People's pilot training, subject to the approval of the ment between the Government of the People's Republic of China. A Iist of internediate appropriate authorities. Republic of China and the Government of the . and/or beyond paints so selected shall be fur- 4. Each Party grants to the other Party United States of America Relating to Civil Air nished to the Government of the United States the assurance that the following authoriza- Transport, initialed today by our two govern- through diplomatic channels not later than 60 tions, permits, and information will be pro- ments. During the course of negotiations lead- days prior to the commencement of operations. vided, on the basis of reciprocity, in a timely ing to the initialing of the Agreement, both The number of point services operated by the fashion to each airline designated to operate sides discussed questions relating to the utili- Chinese designated airline(s) shall be reduced the agreed services: zation of full traffic rights at a point or points by one for each new Japan frequency which in Japan in the operation of the agreed ser- the Chinese designated airline(s) is authorized (a) airport security permits for as- vices. It is my understanding that agreement tn operate subsequent to the selection of point signed foreign and locally employed company was reached that the utilization of full traffic services. staff authorizing them to move freely beyond rights at Japan by the designated airlines of airport customs and immigration screens into both sides shall be governed by the following This letter will be effective on the date the the terminal loading areas and onto the airport terms: Civil Air Transport Agreement is signed. ramp areas; Sincerely, (b) written information on the pmce- (1) The first designated airline of each LINZHENC dures to be empIoyed by the airport au- Party, unless otherwise agreed, shall be per- mitted to operate two frequencies1 with full Leader thorities at each regular airport and alternate Civil Aviation Delegation airport contemplated for the operation of the traffic rights at Japan immediately upon the commencement of the agreed services. Two of the Government agreed services in the event of an emergency of China such as a crash, a hijacking, or a bomb threat, years following the commencement of any establishing the order of action in a given situ- agreed service, the second designated airline ation for units responsible for tower control, of each Party, unless otherwise agreed, shall Beijing firefighting, medical assistance and transpor- be permitted to operate two frequencies with September 8,1980 tation, perimeter security and other full traffic rights at Japan. These rights shall Mr.. Lin Zheng emergency and security functions in effect: and continue until otherwise agreed by the Parties. Leader (c) written information on aeronautical (2) If, two years after the commencement Civil Aviatipn Delegation laws, including the rules and regulations of any agreed service, the United States does of the Government of China not designate a second @line, or if one of the thereunder and amendments thereto, each des- Dear Mr. Lin: ignated airline is expected to follow. United States' two designated airlines does not operate all of the Japan frequencies authorized I am in receipt of your letter of today's 5. The appropriate authorities of each by paragraph (1) above, the Parties shall con- date relating to the Agreement between the Party shall use their best efforts to assist the sult with a view to agreeing on the utilization Government of the United States of America designated airline(s) of the other Party to re- of the unused Japan frequencies by the United and the Government of the People's Republic ceive housing for the staff of such airline(s1 States. of China Relating to Civil Air Transpol.t ini- comparable in cost and quality to the best ob- - - tialed today by our two governments, and tained by or provided to other foreign airlines. 6. The designated airline(s) of each Party lFor the purposes of this understanding, "frequency" shall have the same meaning as shall have the right to train the personnel of 2The term "point service" means one any appointed agent in the procedures of that that set forth in Annex V, paragraph (1) of the Agreement. weekly frequency with full traffic rights at a airline for passenger, cargo, and aircraft han- point. mcre particularly relating to the utilization b~ difference between the number of Japan fre- Beijing full traffk rights at a point or points in Japan quencies operated by the U.S. designated air- September 8, 1980 in the operation of the agreed services. Your line(~)and the number of Japan frequencies letter reads as follows: authorized for the Chinese designated air- Mr. B. Boyd Hight line(~).The Chinese designated airline(s) shall Chairman "I have the honor to refer to the Agree- be entitled to operate such point services at ment between the Government of the People's Civil Aviation Delegation of one or more intermediate andlor beyond points the Government of the United States Republic of China and the Government of the selected at the sole discretion of the People's United States of America Relating to Civil Air Republic of China. A list of intermediate Dear Mr. Hight: Transport, initialed today by our two govern- and/or beyond points so selected shall be fur- I am in receipt of your letter of today's ments. During the course of negotiations lead- nished to the Government of the United States ing to the initialing of the Agreement, both date relating to the Agreement between the through diplomatic channels not later than 60 Government of the United States of America sides discussed questions relating to the utili- days prior to the commencement of operations. and the Government of the People's Republic zation of full traffic rights at a point or points The number of point services operated by the of China relating to Civil Air Transport ini- in Japan in the operation of the agreed ser- Chinese designated airIine(s1 shall be reduced vices. It is my understanding that agreement tialed today by our two governments, and by one for each new Japan frequency which more particularly relating to Annex V (1) set- was reached that the utilization of full traffic the Chinese designated airline(s) is authorized ting forth a capacity regime to govern the op- rights at Japan by the designated airlines of to operate subsequent to the selection of point erations of the designated airline of each Party both sides shall be governed by the following services. terms: during the first year following the commence- This letter will be effective on the date the ment of the agreed services by the first desig- (1) The first designated airline of each Civil Air Transport Agreement is signed." nated airline of the People's Republic of China. Your letter reads as follows: Party, unless otherwise agreed, shall be per- , I have the honor to confirm that the above mitted to operate two frequencies' with full constitutes an agreed understanding. "I have the honor to refer to the Civil Air Micrights at Japan immediately upon the Transport Agreement initialed today by our commencement of the agreed services. TWO This lettBr will be effective on the date the Civil Air Transport Agreement is signed. two governments. With respect to paragraph years following the commencement of any (I) of Annex V to the Agreement, it is my agreed service, the second designated airline Sincerely, of each Party, unless otherwise agreed, shall understanding that in case the first designated B. BOYDHIGHT airline of the People's Republic of China does be permitted to operate two frequencies with not operate more than two B-747SP aircraft full traffic rights at Japan. These rights shall Chainnan Civil Aviation Delegation per week during the period of one year follow- continue until otherwise agreed by the Parties. ing its commencement of the agreed services, (2) If, two years after the commencement of the Government of the United States for the same period the designated airline of of any agreed service, the United States does the United States of America will 11mit its not designate a second airline, or if one of the Attachment: Initialed ~ra&iation available capacity to an average of 120 tons of United States' two designated airlines does not payload- - per week, measured auarterlv. operate all of the Japan frequencies authorized Payload hill be measured by heactual total by paragraph (1) above, the Parties shall con- , Beijing tons of passenger, cargo and mail traffic, em- sult with a view to agreeing on the utilization September 8,1980 barked or disembarked in the People's Repub- of the unused Japan frequencies by the United Y:.~ lic of China quarterly States. ' Mr. Lin Zheng This letter will be effective on the date the (3) The designated airline(s) of the Leader Civil Air Transport Agreement is signed." People's Republic of China shall operate more Civil Aviation Delegation than two Japan frequencies only if, and to the of the Government of China I have the honor to confirm that the above same extent that, the designated airline(s) of constitutes an agreed understanding. the United States are operating singly or in Dear Mr. Lin: This letter will be effective on the date the combination more than two Japan frequencies. I have the honor to refer to the Civil Air Civil Air Transport Agreement is signed. (4) Not later than two and one-half years Transport Agreement initialed today by our two governments, with respect to paragraph Sincerely, following the commencement of any agreed LIN ZHENG service, the Parties shall review their respec- (1) of Annex V to the Agreement, it is my tive utilization of Japan frequencies. If, upon understanding that in case the first designated Leader Civil Aviation Delegation such review, the number of Japan frequencies airline of the People's Republic of China does operated by the U.S. designated airiine(s1 ex- not operate more than two B-747SP aircraft of the Government ceeds the number of Japan frequencies which per week during the period of one year follow- of China - the Government of the People's Republic of ing its commencement of the agreed services, China and the Government of Japan have for this same period the designated airline of agreed upon for the Chinese designated air- the United States of America will limit its Beijing line(~),the Parties shall consult with a view to available capacity to an average of 120 tons of J". September 8, 1980 agreeing upon an alternative opportunity or payload per week, measured quarterly. Pay- opportunities for the Chinese designated load will be measured by the actual tons of. Mr. 3. Boyd Hight airline(s>. passenger, cargo and mail traffic, embarked or Chairman- . (5) If, by 90 days prior to the end of the disembarked in the People's Republic of China Civil Aviation Delegation of The Goyernment of the United States third year following the commencement of any quarterly -tiC 3 agreed service, the Parties have not agreed his letter will be effective on the date the Dear Mr. Hight: upon an alternative opportunity or opportuni- Civil Air Transport Agreement is signed. ties, the People's Republic of China shall be IYith reference to Annex V, paragraph (2) Sincerely, entitled to select point services2 for operation of the Agreement between the Government of in the fourth year and thereafter equal to the B. BOYDWIGHT the People's Republic of China and the Gov- Chairman ernment of the United States of America relat- Civil Aviation Delegation ing to Civil Air Transport initialed today, I of the Government have the honor to confirm, on behalf of my 'For the purposes of this understanding, of the United States Government, the following discussion between %quency* shall have the same meaning as the civil aviation delegations of our two coun- that set forth in Annex V, paragraph (1) of the Attachment: Initialed Translation tries in the course of their negotiations. igreement. In the operation of the agreed services 2The term "point service" means one weekll on the specified routes by the designated air hquency with full traffic rights at a point. lines of the Parties, it is deemed that traffic .,;I' . ,I; larger te reasonably balanced 'kxl3'. Agreement (b) No limit may btl decreased pursuant to u*:,ertevcr, on a si :ni-a!lnual basis, the traffic AGKEEME3T RELATIijG ?'b sub-paragr.tph 5 (a) to a level which is below the cal-riec!by the designated airiir~e(s)of one TRADE IN COTTON, WOOL, AND Ievel of esflorts charged against that category Party stiall exceed 56.25 percent of the total MAN-MADEFIBERTEXTILESAND limitforthat*'~eementYear. traffic cnrried by the designated airlines of the (c) When ~nformingthe United States of two Pax i;t?s. TEXTILE PRODUCTS BETWEEN THE UNITED STATES OF AMERICA adjustments under the provi.sfons of this para- This 1ett:r kill be effectlve on the date the THE graph, the GO\ ernment of tJ& People's Republic Civil Air Wan: port Agreement is signed. AND REPUB~lCOF CHINA of China shall indicate thefategory or categories Sincerely, EmZHENG Leader Civil Aviation Delegation of the Guvernment of China

Beijing September 8,1980

Ah: Lin Zheng Leader Civil Aviation Delegation of the Government of China . Dear Mr. Lin: I am in receipt of your letter of today's date with respect to Annex V, paragraph (2) of the Civil Air nansport Agreement initialed today by our two governments, and acknowl- edge the contents therein. This letter will be effective on the date the Civil Air Transport Agreement is signed. Sincerely, B. BOYDHIGHT Chairman ' Civil Aviation Delegation of the Government of the United States Attachment: Initialed Translatior.

September 1'7,1980 of shortfall (as defined in id shall not be applied to any Mr. Lin Zheng Leader Civil Aviation Delegation of the Government of China Dear Mr. Lin: f have the honor to confirm that the Gov- ernment of the United States of America is prepared, within its authority, to make clear in its official publications and statements, that "China Airlines" is an airline from Taiwan and is not the national flag carrier of China. Sincerely, B. BOYDHIGHT Chairman Civil Aviation Delegation of the Government , of the United States , . (1) The carryover shall not exceed the r, amount of shortfall in any applicable limit; (2) The shortfall shall be used in the Category Percentage category in which the shortfali occurred. 331 6 339 5 (c) The total adjustment permissible 340 . 5 under paragraph 7 for the first Agreement 341 5 Year shaH be seven percent consisting solely of 3471348 5 carryforward. 645/646 6