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as their primary objective the provision of capacity adequate to the traffic demands between the country of which such airline is a national and the country of ultimate destination of the traffic. The right to embark or disembark on such services international traffic destined for and coming from third countries at a point in the territory of the other party on the routes specified in the present Annex 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 should be related:

(a) to traffic requirements between the country of origin of the air service and the countries of destination;

(b) to the requirements of through airline operation; and

(c) to the traffic requirements of the area through which the airline after taking account of local and regional services.

SECTION VIII

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In so far as the designated airlines of one contracting party may be temporarily prevented through difficulties arising from war from taking immediate advantage of the opportunity referred to in Section V above, the situation shall be reviewed between the contracting parties with the object of facilitating the necessary development, as soon as the designated airlines of the first contracting party are in a position increasingly to make their proper contribution to the service.

SECTION IX

It is the intention of both contracting parties that there should be regular and frequent consultation between their respective aeronautical authorities (as defined in the Agreement) and that there should thereby be close collaboration in the observance of the principles and the implementation of the provisions outlined in the present Agreement and Annex.

SCHEDULE 1

The airlines designated by the Government of the United States shall be entitled to operate air services on air routes specified in this paragraph via intermediate points in both directions, and to make scheduled landings in Burma at the points specified:

The United States through Europe, North Africa, the Near East, Pakistan and India to Rangoon and Mandalay and beyond.

SCHEDULE 2

The airlines designated by the Government of the Union of Burma shall be entitled to operate air services and to make scheduled landings in the

United States along a specific route or routes to be agreed upon by the Governments of the United States and the Union of Burma at such time as the Government of the Union of Burma decides to commence operations.

SCHEDULE 3

On each of the above routes the airline authorized to operate such route may operate nonstop flights between any of the points on such route omitting stops at one or more of the other points on such route.

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