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Exchange of Notes between the Government of Canada and the Government of the Polish People's Republic constituting an Agreement relating to articles IX, XI, XIII et XV of the Air Transport Agreement signed on 14 May 1976 [1977] CATSer 24 (28 October 1977)

E103362 - CTS 1977 No. 31

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE POLISH PEOPLE'S REPUBLIC CONSTITUTING AN AGREEMENT RELATING TO ARTICLES IX, XI, XIII ET XV OF THE AIR TRANSPORT AGREEMENT SIGNED ON 14 MAY 1976

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The Secretary of State for External Affairs of Canada to the Minister of Foreign Affairs of the Polish People’s Republic

OTTAWA, May 14, 1976

No. FLA-321

His Excellency Stefan Olszowski,
Minister of Foreign Affairs of the Polish People’s Republic,
Ottawa

Excellency,

I have the honour to refer to Articles IX, XI, XIII and XV of the Air Transport Agreement of May 14, 1976 between the Government of Canada and the Government of the Polish People’s Republic and to the Inter-Airline Protocol relating thereto signed at Warsaw on February 23, 1976.

I - Article IX. It is the understanding of my Government that the principles contained in Article IX of the Agreement shall be applied as follows to air services between Canada and Poland:

1. Both Contracting Parties having agreed that there shall be a commercial agreement between their respective designated airlines:

(a) The commercial arrangements shall ensure for the designated airlines of the Contracting Parties a balanced participation in the benefits derived from the operation of the agreed services by either of the designated airlines, due regard being paid to the origin of the revenues. This arrangement shall also enable the designated airlines to enjoy fair and equal opportunity in the carriage of the traffic potential between their respective territories after both airlines have commenced the operation of services.

(b) The commercial arrangement shall establish the capacity, i.e. frequency, scheduling of services, and type of aircraft to be operated on the routes specified in the Annex to this Agreement, as well as providing for other matters of a commercial nature as necessary.

2. The commercial arrangement shall cover, in a manner satisfactory to the designated airlines of the Contracting Parties, at least passengers and freight carried on the agreed services and enplaned and deplaned in Canada and Poland. Traffic carried in transit via the territory of the other Contracting Party on the routes specified in the Annex to the Agreement shall not be considered as traffic enplaned and deplaned in Canada and Poland.

3. (a) In the event of termination of the commercial arrangement, the aeronautical authorities of the Contracting Parties will review the situation and endeavour to resolve any problems in accordance with Article XVIII of the Agreement.

(b) If such endeavour fails, and in the absence of agreement between the aeronautical authorities, the designated airlines of the Contracting Parties shall terminate services between Canada and Poland not later than one year following the notice of termination of the commercial arrangement.

4. (a) It is also understood that the designated airlines of the Contracting Parties shall retain each other as General Sales Agents for the sale of air transportation in Canada and Poland, in accordance with the General Sales Agency Agreement.

(b) Unless otherwise agreed between the designated airlines of the two Contracting Parties all sales of transportation in Canada will be issued on Air Canada ticket stock and all sales of transportation in Poland will be issued on LOT Polish Airlines ticket stock.

II - Article XI. With reference to Article XI of the Agreement, it is understood that:

5. Although not specifically mentioned in the text of this Article, the personal and household effects of the representatives and staff of one designated airline delegated in the territory of the other Contracting Party shall be subject to the same favourable treatment as accorded to items enumerated in Article XI. This does not, however, apply to the airlines’ “office equipment” which shall be treated in accordance with applicable national custom regulations and be subject to various rates of duty or to exemption depending on the nature of every individual item.

III - Article XIII. With reference to Article XIII, paragraph 1 of the Agreement, it is the understanding of my Government that:

6. According to the Polish national laws and regulations, the sales of air transportation in local currency involving payments in convertible currency are subject to individual permissions issued by the Polish National Bank.

7. In case of carriers belonging to the countries in which the Polish airline is allowed to engage in the sale of air transportation, operating to and from Poland according to an agreed programme under Pool or other commercial arrangements, a general permission can be obtained by the Polish airline acting as a general sales agent for a foreign carrier, authorizing sales in local currency on specified routes of the partner; the same carriers can also be authorized to make direct sales in Poland against payments in convertible currencies. Such facilities, aimed at creating similar sales opportunities for the designated airlines of the two countries, will also be granted in favour of the Canadian airline, provided that the agreement referred to in Article XIII paragraph 1 is in force, and provided further that, during the period of unilateral operation of the agreed services by the Polish designated airline similar facilities will be granted in favour of the Canadian airline for the sales in local currency on specified North Atlantic sectors that may be determined by agreement between the two designated airlines with the consent of the appropriate authorities of both Contracting Parties and in convertible currency for the whole Canadian airline’s network. It is further understood that the Polish designated airline will be authorized to guarantee an agreed volume of sales in Poland on the Canadian airline’s routes.

8. Having taken note of the above both Contracting Parties reserve the right to open, at any time, discussions on any of the matters dealt with in the above statement, in conformity with Article XIII, paragraph 1 and Article XVIII of the Agreement.

IV - Article XV. Finally, in relation to Article XV of the Agreement, it is understood that:

9. The location and number of representatives and staff of the designated airline of each Contracting Party would be established on the basis of a mutually recognized need to meet present requirements and subsequent growth in traffic.

If your Government agrees with the above statements and shares in the understanding of my Government as stated therein in relation to Articles IX, XI, XIII and XV of the Air Transport Agreement between the Government of Canada and the Government of the Polish People’s Republic signed at Ottawa on May 14, 1976, I have the further honour to propose that this Note, which is equally authentic in English and French, and your reply to that effect in Polish, shall constitute an agreement between our two Governments, which shall be applied provisionally as of the date of your reply and enter into force on the same date as the said Air Transport Agreement.

Accept, Excellency, the assurances of my highest consideration.

Allan J. MacEachen

Secretary of State for External Affairs

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The Minister of Foreign Affairs of the Polish People’s Republic to the Secretary of State for External Affairs of Canada

(Translation)

OTTAWA, May 14, 1976

His Excellency the Honourable Allan J. MacEachen,
Secretary of State for External Affairs,
Ottawa

Excellency,

I have the honour to acknowledge receipt of Your Excellency’s Note, dated May 14, 1976, of the following content:

(Text of Canadian Note No. FLA-321)

I have the honour to communicate the agreement of my Government to the above, and to accept Your Excellency’s proposal that the Note quoted above, together with this reply to it, constitute an Agreement between the Government of the Polish People’s Republic and the Government of Canada, which shall be applied provisionally as of the date of this reply to Your Excellency’s Note, and shall enter into force on the same date as the above mentioned Air Transport Agreement.

Please accept, Excellency, the expressions of my deepest respect.

Stefan Olszowski