61 STAT.] PHILIPPINES-AIR TRANSPORT SERVICES-NOV. 16, 1946 ANNEX TO AIR TRANSPORT AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF THE PHILIPPINES A. Airlines of the United States of America authorized under the present Agreement are accorded the rights of transit and non-traffic stop in Philippine territory, as well as the right to pick up and dis- charge international traffic in passengers, cargo and mail at Manila, on the route or routes indicated below: From the United States, via intermediate points to Manila and thence to points beyond in both directions. B. Airlines of the Republic of the Philippines authorized under the present Agreement are accorded the rights of transit and non- traffic stop in United States territory, as well as the right to pick up and discharge international commercial traffic in passengers, cargo, and mail at Honolulu and San Francisco, on the route indicated below: From the Philippines to San Francisco and thence to points beyond over a reasonably direct route via intermediate points in the Pacific which are United States territory, including Honolulu, in both directions. C. In the operation of the air services authorized under this Agree- ment, both contracting parties agree to the following principles and objectives: 1. Fair and equal opportunity for the airlines of each contracting party to operate air services on international routes, and the creation of niachinery to obviate unfair competition by unjustifiable increases of frequencies or capacity. 2. The adjustment of fifth freedom traffic with regard to: (a) Traffic requirements between the country of origin and the countries of destination. (b) The requirements of through airline operation, and (c) The traffic requirements of the area through which the air- line passes after taking account of local and regional services. 2483
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