2600 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [61 STAT. For the reasons set forth above and notwithstanding the present difficult but transitory economic conditions, the Government of Peru will endeavor to have the Agreement signed produce results profitable for the two contracting parties; and, in that sense, the Government of Peru understands that it may designate, under the terms of the Agreement, an air line or air lines meeting the following conditions: 1. At all times, a minimum of 30% of the capital shall be held by Peruvian nationals or by the Government of Peru. 2. Before the expiration of a term of 10 (ten) years, counting from the date of the Agreement, a minimum of 51% of the capital, as well as the effective control of the Company, must be held by Peruvian nationals or by the Government of Peru. 3. Until the conditions of paragraph 2 are met, the portion of the capital which is not held by Peruvian nationals must have been subscribed by nationals of the United States of America and of the Dominion of Canada, in such manner that, among the respective groups of nationals of each of those two coun- tries, there shall not at any time exist a difference of more than 20% in the amount of their respective shares in the capital of the Company. I shall greatly appreciate it if Your Excellency will be so good as to inform me whether the foregoing duly reflects the mutual under- standing of our respective Governments, which served as a basis for the conclusion of the Air Transport Agreement. I avail myself of the opportunity to renew to you, Mr. Ambassador, the assurances of my highest and most distinguished consideration. E. GARCfA SAYAN His Excellency PRENTICE COOPER, Ambassador Extraordinary and Plenipotentiaryof the United States of America. City. The American Ambassador to the PeruvianMinisterfor ForeignAffairs No. 306 The Ambassador of the United States of America presents his compliments to His Excellency the Minister for Foreign Affairs and with reference to the signing of the Air Transport Agreement between the Republic of Peru and the United States of America on this date has the honor to acknowledge the receipt of His Excellency's confiden- tial note No. 6 -Y/5, in which is expressed the understanding in connec- tion with which the Government of Peru proposes to execute the Air Transport Agreement. The Ambassador is pleased to express hereby the acceptance by the Government of the United States of America of the terms of understanding contained in His Excellency's note. Prentice Cooper avails himself of this occasion to extend to His
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