1468 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [59 STAT. between Iceland and the United States, the two Governments parties to this arrangement agree that the establishment and development of air transport services between their respective territories shall be governed by the following provisions: ARTICLE 1 The contracting parties grant the rights specified in the Annex hereto necessary for establishing the international civil air routes and services therein described, whether such services be inaugurated imme- diately or at a later date at the option of the contracting party to whom the rights are granted. ARTICLE 2 (a) Each of the air services so described shall be placed in operation as soon as the contracting party to whom the rights have been granted by Article 1 to designate an airline or airlines for the route concerned has authorized an airline for such route, and the contracting party granting the rights shall, subject to Article 6 hereof, be bound to give the appropriate operating permission to the airline or airlines con- cerned; provided that the airlines so designated may be required to qualify before the competent aeronautical authorities of the contract- ing party granting the rights under the laws and regulations normally applied by these authorities before being permitted to engage in the operations contemplated by this agreement; and provided that in areas of hostilities or of military occupation, or in areas affected thereby, such inauguration shall be subject to the approval of the competent military authorities. (b) It is understood that either contracting party granted com- mercial rights under this agreement should exercise them at the earliest practicable date except in the case of temporary inability to do so. ARTICLE 3 In order to prevent discriminatory practices and to assure equality of treatment, both contracting parties agree that: (a) Each of the contracting parties may impose or permit to be imposed just and reasonable charges for the use of public airports and other facilities under its control. Each of the contracting parties agrees, however, that these charges shall not be higher than would be paid for the use of such airports and facilities by its national aircraft engaged in similar international services. (b) Fuel, lubricating oils and spare parts introduced into the ter- ritory of one contracting party by the other contracting party or its nationals, and intended solely for use by aircraft of such other con- tracting party shall be accorded national and most-favored-nation treatment with respect to the imposition of customs duties, inspection fees or other national duties or charges by the contracting party whose territory is entered.
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