61 STAT.] SOUTH AFRICA-AIR TRANSPORT SERVICES-MAY 23, 1947 (D) that the total air transport services offered by the carriers of both countries should bear a close relationship to the requirements of the public for such services; (E) that the services provided by a designated air carrier under qtevCipncit a de this agreement and its annex shall retain as their primary objective the provision of capacity adequate to the traffic demands between the country of which such air carrier is a national and the country of ultimate destination of the traffic; (F) that the right of the air carriers of either country to embark and Right to embark, to disembark at points in the territory of the other country inter- national traffic destined for or coming from third countries at a point or points on the routes specified in the schedules attached shall be applied in accordance with the general principles of orderly develop- ment to which both governments subscribe and shall be subject to the general principle that capacity shall be related- (1) to traffic requirements between the country of origin and the countries of destination; (2) to the requirements of through airline operation; and (3) to the traffic requirements of the area through which the airline passes after taking account of local and regional services. SECTION V. (A) The determination of rates in accordance with the following paragraphs shall be made at reasonable levels, due regard being paid to all relevant factors, such as cost of operation, reasonable profit, and the rates charged by any other carriers, as well as the character- istics of each service. (B) The rates to be charged by the air carriers of either contracting party between points in the territory of the United States and points in the territory of the Union of South Africa referred to in this annex shall, consistent with the provisions of the present agreement and its annex, be subject to the approval of the aeronautical authorities of the contracting parties, who shall act in accordance with their obligations under the present annex, within the limits of their legal powers. (C) 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 one year beginning in February, 1947, any rate agreements concluded through this machinery during this period and involving United States air carriers will be subject to approval by the Board. (D) Any rate proposed by the air carrier or carriers of either con- tracting party shall be filed with the aeronautical authorities of both contracting parties at least thirty days before the proposed date of introduction; provided that this period of thirty days may be reduced in particular cases if so agreed by the aeronautical authorities of both contracting parties. (E) The contracting parties agree that the procedure described in paragraphs (F), (G) and (H) of this section shall apply- Determination of rates. Approval. "IATA." Filing of proposed rate. 3063
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