[Title] AIR TRANSPORT AGREEMENT BETWEEN JAPAN AND THE UNITED STATES OF BRAZIL

AIR TRANSPORT AGREEMENT BETWEEN JAPAN AND THE UNITED STATES OF BRAZIL

The Government of Japan And the Government of the United States of Brazil, considering:

that the ever-growing possibilities of commercial aviation are of increasing importance;

that this means of transportation because of its essential characteristics, permitting rapid connections, provides the best means for bringing nations together;

that it is desirable to organize in a safe and orderly form regular international air services, without prejudice to national and regional interests, having in mind the development of international cooperation in the field of air transport;

that it is necessary to conclude an Agreement to secure regular air communications between the two countries; and

being parties to the Convention on International Civil Aviation opened for signature at Chicago on the seventh day of December, 1944,

have appointed for this purpose as their Plenipotentiaries,

Japan:

His Excellency Yoshiro Ando, Ambassador Extraordinary and Plenipotentiary of Japan to the United States of Brazil;

The United States of Brazil:

His Excellency José Carlos de Macedo Soares, Minister for Foreign Affairs, and

His Excellency Henrique Fleiuss, Minister of Aeronautics,

who, having communicated their full powers, found to be in good and due form, have agreed as follows:

ARTICLE I

For the purpose of the present Agreement, unless the context otherwise requires:-

(a) The term "Aeronautical Authorities" means, in the case of Japan, the Ministry of Transportation, and any person or body authorized to perform any functions presently exercised by the said Ministry or similar functions, and, in the case of the United States of Brazil, the Minister of Aeronautics and any person or body authorized to perform any functions presently exercised by the said Minister of Aeronautics or similar functions;

(b) The term "designated airline" means an airline which one Contracting Party shall have designated, by written notification to the other Contracting Party, for the operation of air services, on the routes specified in such notification, and which has the appropriate operating permission from the other Contracting Party, in accordance with the provisions of Article III of the present Agreement.

ARTICLE II

The Contracting Parties grant to each other the rights specified in the Annex hereto, in order that there may be established the regular air services described therein (hereinafter referred to as "agreed services").

ARTICLE III

1. Each of the agreed services may be inaugurated immediately or at a later date, at the option of the Contracting Party to whom the rights have been granted, but not before:

(a) The Contracting Party to whom the rights have been granted has designated an airline or airlines for the specified route or routes;

(b) The Contracting Party granting the rights has given the appropriate operating permission to the airline or airlines concerned (which, subject to the provisions of paragraph 2 of this Article and of Article VII, it shall do without delay).

2. Every airline designated may be required to satisfy the Aeronautical Authorities of the Contracting Party granting the rights that it is qualified to fulfil the conditions prescribed under the laws and regulations normally applied by such Authorities to the operation of commercial airlines engaged in international traffic.

ARTICLE IV

In order to prevent discriminatory practices and to ensure equality of treatment:

1. The charges which either of the Contracting Parties may impose or permit to be imposed on the designated airline or airlines of the other Contracting Party for the use of airports and other facilities 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.

2. Fuel, lubricating oils, and spare parts introduced into the territory of one Contracting Party, or placed on board aircraft in its territory, by the other Contracting Party, either for its own account or for the airlines designated by it, solely for use by the aircraft of designated airlines of the other Contracting Party, shall enjoy, with respect to customs duties, inspection fees and other charges imposed by the first Contracting Party, treatment not less favourable than that granted to national airlines engaged in international air transport services or to the airlines of the most favoured nation.

3. Aircraft of the one Contracting Party operated on the agreed services and supplies of fuel, lubricating oils, spare parts, regular equipment and aircraft stores retained on board such aircraft shall be exempt in the territory of the other Contracting Party from customs duties, inspection fees, and similar duties or charges, even though such supplies be used by such aircraft on flights within that territory.

ARTICLE V

Certificates of airworthiness, certificates of competency and licences issued or rendered valid by one of the Contracting Parties and still in force, shall be recognized as valid by the other Contracting Party for the purpose of operating the agreed services. Each Contracting Party reserves the right, however, to refuse to recognize, for the purpose of flight above its own territory, certificates of competency and licences granted to its own nationals by the other Contracting Party or any other State.

ARTICLE VI

1. The laws and regulations of one Contracting Party, relating to entry into or departure from its own territory of aircraft engaged in international air navigation or to the operation and navigation of such aircraft while within its territory, shall apply to aircraft of the designated airline or airlines of the other Contracting Party.

2. The laws and regulations of one Contracting Party relating to entry into or departure from its territory of passengers, crew or cargo of aircraft (such as regulations relating to entry, clearance, immigration, passports, customs and quarantine) shall be applicable to the passengers, crew and cargo of aircraft of the designated airline or airlines of the other Contracting Party, while in the territory of the first Contracting Party.

ARTICLE VII

Each Contracting Party reserves the right to deny, withhold or revoke the exercise of the rights specified in the Annex to the present Agreement by an airline designated by the other Contracting Party in any case in which it is not satisfied that substantial ownership and effective control of such airline are vested in nationals of the other Contracting Party, or in case of failure by that airline to comply with the laws and regulations referred to in Article VI hereof, or otherwise to fulfil the conditions under which the rights are granted, in accordance with the present Agreement and its Annex, or when aircraft in operation are not manned by nationals of the other Contracting Party, except in cases where air crew are being trained.

Prior to the exercise of the rights specified above, either of the Contracting Parties may request consultation between the Aeronautical Authorities of the two Contracting Parties, such consultation to take place within a period of sixty (60) days from the date of the request.

ARTICLE VIII

If either Contracting Party considers it desirable to modify the terms of the Annex, it may at any time request consultation with the other Contracting Party for that purpose. Such consultation shall begin between the Aeronautical Authorities of both Contracting Parties within a period of sixty (60) days from the date of the request. When an agreement is reached on a modification of the Annex, such modification shall come into effect after it has been confirmed by an exchange of notes through the diplomatic channel.

ARTICLE IX

1. If any dispute arises between the Contracting Parties relating to the interpretation or application of the present Agreement, the Contracting Parties shall in the first place endeavour to settle it by negotiation between themselves.

2. If the Contracting Parties fail to reach a settlement by negotiation,

a) they may agree to refer the dispute for an advisory report to an arbitral tribunal appointed by agreement between them or to some other person or body; or

b) If they do not so agree or if, having agreed to refer the dispute to an arbitral tribunal, they cannot reach agreement as to its composition, either Contracting Party may submit the dispute for an advisory report to the Council of the International Civil Aviation Organization;

c) The Contrating Parties will use their best efforts under the power available to them to give effect to the opinion expressed in any such report.

ARTICLE X

Either Contracting Party may at any time give notice to the other of its intention to terminate the present Agreement. Such notice shall be sent simultaneously to the International Civil Aviation Organization. If such notice is given, the present agreement shall terminate nine(9) months after the date of receipt of the notice by the other Contracting Party unless the notice to terminate is withdrawn by agreement between the Contracting Parties before the expiry of this period. in the absence of acknowledgement of receipt by the other Contracting Party notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

ARTICLE XI

If a general multilateral air transport convention which is accepted by both Contracting Parties comes into force, the present Agreement shall be amended so as to conform with the provisions of such convention.

ARTICLE XII

The present Agreement and the notes exchanged in accordance with the provisions of Article VIII shall be registered with the International Civil Aviation Organization.

ARTICLE XIII

The present Agreement will be ratified in conformity with the constitutional requirements of each Contracting Party, and will come into force on the date of the exchange of the instruments of ratification, which shall take place at tokyo as soon as possible.

ARTICLE XIV

The present Agreement is done in the Japanese, Portuguese and English languages. in case of any divergence of interpretation, the English text shall prevail.

In witness whereof the respective Plenipotentiaries have signed the present Agreement and have affixed hereunto their seals.

Done in duplicate, in the city of Rio de Janeiro, on the fourteenth day of December, 1956.

Yoshiro Ando

José Carlos de Macedo Soares

Henriqve Fleiuss

ANNEX

I

The Government of the United States of Brazil grants to the Government of Japan the right to operate international air services by one or more airlines designated by the Government of Japan on the routes specified in Schedule I attached.

II

The Government of Japan grants to the Government of the United States of Brazil the right to operate international air services by one or more airlines designated by the Government of the United States of Brazil on the routes specified in Schedule II attached.

III

The airline designated by each of the Contracting Parties under the Conditions Provided for in the Agreement and the present Annex will enjoy, in the territory of the other Contracting Party, rights of transit, of stops for non-traffic purposes at all airports designated for international traffic as well as rights to pick up and discharge international traffic in passengers, cargo and mail at the points enumerated in the Schedules attached.

IV

(a) The air transport capacity provided by the designated airlines of both Contracting Parties shall bear a close relationship to traffic requirements;

(b)There shall be fair and equal opportunity for the designated airlines of both Contracting Parties to operate on the routes specified in the Schedules;

(c) When the designated airlines of the Contracting Parties operate on a common section of a route they shall take into account their reciprocal interests so as not to affect unduly their respective services;

(d) The services provided by a designated airline under the Agreement and the present Annex shall retain as their primary objective the provision of capacity adequate to the traffic demands between the country by which such airline has been designated and the country of ultimate destination of the traffic;

(e) The right of a designated airline of a Contracting Party, to embark and to disembark international traffic destined for or coming from third countries, at a point or points specified in the Schedules, shall be applied in accordance with the general principles of orderly development to which both Contracting Parties 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.

V

The appropriate Aeronautical Authorities of the Contracting Parties will consult at the request of either of them to determine the extent to which the principles set forth in Section IV above are being complied with by the airlines designated by the Contracting Parties, so as to prevent an unfair proportion of traffic being diverted from any designated airline through violation of any of those principles enunciated elsewhere in the Agreement or the present Annex, provided that such consultation shall not have the effect of suspending any action that might eventually be taken by either of the Contracting Parties for such purpose.

VI

The Aeronautical Authorities of either Contracting Party shall supply to the Aeronautical Authorities of the other Contracting Party at the latter's request such periodic or other statements of statistics as may be reasonably required for the purpose of surveying the capacity provided on the agreed services by the designated airlines of the first Contracting Party. Such statements shall include all information required to ascertain the amount of traffic carried by those airlines on the agreed services.

VII

If the designated airline or airlines of one Contracting Party is or are temporarily unable, for reasons within the control of the other Contracting Party, to take advantage of the provisions in paragraph (b) of Section IV above, the Contracting Parties shall review the situation with the object of assisting the said airline or airlines to take full advantage of the fair and equal opportunity to participate in the services, as provided by that paragraph.

VIII

(a) The tariffs on any agreed service shall be established at reasonable levels, due regard being paid to all relevant factors including cost of operation, reasonable profit, characteristics of service, such as standards of speed and accommodation, and the tariffs of other airlines for any part of the specified route. These tariffs shall be fixed in accordance with the provisions of this Section.

(b) Agreement on the tariffs shall, wherever possible, be reached by the designated airlines concerned through the rate-fixing machinery of the International Air Transport Association. When this is not possible, tariffs in respect of each of the specified routes and sections thereof shall be agreed between the designated airlines concerned. In either case the tariffs so agreed shall be subject to the approval of the Aeronautical Authorities of both Contracting Parties.

(c) The designated airline or airlines of each Contracting Party shall file with the Aeronautical Authorities of the other Contracting Party, in accordance with the respective regulations or directives of such Authorities, any tariff determined under paragraph (b) of this Section which it proposes to establish, at least thirty (30) days before the date on which it proposes that the tariff shall come into effect; provided that the Aeronautical Authorities of the Contracting Parties may by agreement in particular cases vary the period of thirty (30) days.

(d) If the designated airlines concerned cannot agree on the tariffs, or if the Aeronautical Authorities of either Contracting Party do not approve the tariffs submitted to them, in accordance with the provisions of paragraph (b) of this Section, the Aeronautical Authorities of the Contracting Parties shall endeavour to reach agreement on the appropriate tariffs.

(e) If the agreement under paragraph (d) of this Section cannot be reached, the dispute shall be settled in accordance with the provisions of Article IX of the Agreement.

(f) No new tariff shall come into effect if the Aeronautical Authorities of either Contracting Party are dissatisfied with it except under the terms of sub-paragraph (c) of paragraph 2 of Article IX of the Agreement. Pending determination of the tariffs in accordance with the provisions of this Section, the tariffs already in force shall prevail.

IX

Changes either by substitution or addition made by either Contracting Party in the points on the routes described in the Schedules, except changes in the points in the territory of the other Contracting Party, shall not be considered as modifications of the present Annex. The Aeronautical Authorities of either Contracting Party may therefore proceed unilaterally to make such changes, provided, however, that notice of any change is given without delay to the Aeronautical Authorities of the other Contracting Party.

If as a result of such changes the Aeronautical Authorities of the other Contracting Party find that, having regard to the principle set forth in Section IV of the present Annex, the interests of their designated airline or airlines are prejudiced by such changes, in so far as they involve the carriage by the airline or airlines of the first Contracting Party of traffic between the points in the territory of the second Contracting Party and the new point in the territory of a third country, the Aeronautical Authorities of the two Contracting Parties shall consult together with a view to arriving at a satisfactory agreement.

X

While the Agreement is in force, the Aeronautical Authorities of both Contracting Parties will exchange information promptly concerning the authorizations extended to their respective airlines designated to operate on the routes specified in the Schedules or any part thereof. such exchange of information will include, in particular, copies of authorizations granted together with such modifications as may be made from time to time.

Yoshiro Ando

José Carlos de Macedo Soares

Henrique Fleiuss

SCHEDULE I

Routes to be operated by the designted airline or airlines of Japan:

I - Points in Japan - Points in the North Pacific - Points in the west coast of Canada and/or in the west coast of the United States of America - Mexico City or Havana - Panama - Bogota and/or Caracas - Manaus - Goiania - Rio de Janeiro and/or Sao Paulo, in both directions.

II - Points in Japan - Points in the Central Pacific - Points in the west coast of the United States of America - Mexico City or Havana - Panama - Bogota and/or Caracas - Manaus - Goiania - Rio de Janeiro and/or Sao Paulo, in both directions.

The agreed services provided by the designated airline or airlines of Japan on these routes shall begin at a point in the territory of Japan, but other points on any of the routes may at the option of the designated airline be omitted on any or all flights.

REMARK:

While the route Manaus - Goiania - Rio de Janeiro and/or Sao Paulo is not ready for international operation, it will be replaced provisionally by the following route:

Belem - Barreiras - Rio de janeiro and/or Sao Paulo, in both directions.

SCHEDULE II

Routes to be operated by the designated airline or airlines of the United States of Brazil:

I - Points in the United States of Brazil - Caracas and/or Bogota - Panama - Havana or Mexico city - Points in the west coast of the United States of America and/or in the west coast of Canada - Points in the North Pacific - Tokyo and/or Osaka, in both directions.

II - Points in the United States of Brazil - Caracas and/or Bogota - Panama - Havana or Mexico city - Points in the west coast of the United States of America - Points in the Central Pacific - Osaka and/or Tokyo, in both directions.

The agreed services provided by the designated airline or airlines of the United States of Brazil on these routes shall begin at a point in the territory of the United States of Brazil, but other points on any of the routes may at the option of the designated airline be omitted on any or all flights.

REMARK:

Osaka Airport will be used when it is ready for international air services.