63 STAT.] CANADA-AIR TRANSPORT SERVICES-JUNE 4, 1949 consistent with the provisions of the present Agreement and its An- nex, be subject to the approval of the aeronautical authorities of the contracting parties, who shall act in accordance with their obliga- tions under the present Annex, within the limits of their legal powers. (C) Any rate proposed by the airline or airlines of either con- tracting party shall be filed with the aeronautical authorities of both contracting parties at least thirty (30) days before the proposed date of introduction; provided that this period of thirty (30) days may be reduced in particular cases if so agreed by the aeronautical authorities of both contracting parties. (D) The Civil Aeronautics Board of the United States having approved the traffic conference machinery of the International Air Transport Association (hereinafter called IATA), for a period ending in February 1950, any rate agreements concluded through this machinery during this period and involving United States airlines will be subject to approval of the Board. Rate agreements concluded through this machinery may also be required to be subject to the approval of the aeronautical authorities of Canada pursuant to the principles enunciated in paragraph (B) above. (E) The contracting parties agree that the procedure described in paragraphs (F), (G) and (H) of this Section shall apply: 1. If, during the period of the Civil Aeronautics Board's ap- proval of the IATA traffic conference machinery, either any specific rate agreement is not approved within a reasonable time by either contracting party, or a conference of IATA is unable to agree on a rate, or 2. At any time no IATA machinery is applicable, or 3. If either contracting party at any time withdraws or fails to renew its approval of that part of the IATA traffic conference machinery relevant to this Section. (F) In the event that power is conferred by law upon the aero- nautical authorities of the United States to fix fair and economic rates for the transport of persons and property by air on interna- tional services and to suspend proposed rates in a manner comparable to that in which the Civil Aeronautics Board at present is empowered to act with respect to such rates for the transport of persons and property by air within the United States, and corresponding powers are available to the aeronautical authorities of Canada, each of the contracting parties shall thereafter exercise its authority in such manner as to prevent any rate or rates proposed by one of its airlines for services from the territory of one contracting party to a point or points in the territory of the other contracting party from becoming effective if in the judgment of the aeronautical authorities of the contracting party whose airline or airlines is or are proposing such rate, that rate is unfair or uneconomic. If one of the contracting parties on receipt of the notification referred to in paragraph (C) above is dissatisfied with the rate proposed by the airline or airlines of the other contracting party, it shall so notify the other contracting 81939--2 -PT. n- -18 2495 Approval by Civil Aeronautics Board.
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