-4 
(3) With. the consent of the appropriate customs 
authorities and upon payment of any customs duty if required, 
items exempted in acco~Gance with paragraph (2)(a) may be 
used for purposes o~he~ than those specified in paragraph (1). 

ARTICLE VIII 
-t 
( 
(1) 
There shall ~e a fair and equal opportunity for 
the airlines of each Co~tracting Party to operate on any 
route covered by this Agreement. 


(2) 
In the 6perat~on by the airlines of either 
Contracting Party of the air services described in this 
Agreement, the interest of the airlines of the other 
Contracting Party shall be taken into consideration so as 
not to affect unduly the services which the latter provide 
on all or part of the same route. 


(3) 
The air services made available to the public by 
the airlines operating under this Agreement shall bear a 
close relationship to the requirements of the public for 
such services. 


(4) 
Services provided by & designated airline under this Agreement shall retain 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 countries 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 or points on the routes specified in this Agreement shall be exercised 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 to: 

(a) 
Traffic requirements between the country of origin and the countries of ultimate destination of the traffic; 


(b) The requirements of through airline operations; and 
(c) The traffic requir~ments of the area through which the airline passes after taking account of local and regional services. 
(5) Neither Contracting Party shall restrict the airline or airlines of the other Contracting Party with respect to capacity, frequency, scheduling: or type of aircraft employed in connection with services over any of the routes specified in the Schedule of this Agreeme~t. In the event that one of the Contracting Parties believea that the operations conducted by an airline of the ~ther Contracting Party have 
been inconsistent with. the standards and principles set 
this Article~ 










LETTER CONCERNING ARTICLE X 

Dear Mr. Ambassador: · 
I 
refer to the Air Transport Agreement which was signed in Prague on this date. During the negotiation which resulted in the conclusion of that Agreement, the delegations representing our respective Governments discussed the con­duct of commercial airline activities related to the marketing of air services on the agreed routes. The understandings which were achieved with_regard to such activities are set forth herein: 
With respect to the provisions of Article X of the Agreement, each Government intends to use its best efforts, consistent with its national policies, to assure that, at the earliest practical time, the airline or airlines 6f the other Contracting Party are accorded substantial reciprocity in the conduct of their commercial activities. In the mean­time, the designated airlines of one country shall enjoy the right to conduct comnercial activities in the other country on a basis no less favorable than that enjoyed by any air­line of any third country. 
At a time no later than twenty-two months after the Czechoslovak designated airline inaugurates scheduled ser­vices to the United States, both Contracting Parties will consult for the purpose of confirming that mutually acceptable