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2. The final sentence of article 7, paragraph 6 of the Agreement shall be deleted.

3. In article 13, line 5, the phrase "transportation for cargo" shall be corrected to read "transportation of cargo."

4. Paragraphs a and b of section 1 of Annex I of the Agreement shall be amended to read as follows:

a. Routes for the airline or airlines designated by the Government of the United States of America:

1. From points behind the United States via the United States and intermediate points to a point or points in Pakistan and beyond.

2. For all-cargo service or services, between Pakistan and any point or points.

b. Routes for the airline or airlines designated by the Government of the Islamic Republic of Pakistan:

1. From points behind Pakistan via Pakistan and intermediate points to a point or points in the United States and beyond.

2. For all-cargo service or services, between the United States and any point
or points.

5. Section 2 of Annex I of the Agreement shall be amended to read:
Each designated airline may, on any or all flights and at its option:

1. Operate flights in either or both directions;

2. Combine different flight numbers within one aircraft operation;

3. Serve behind, intermediate, and beyond points and points in the territories of the parties on the routes in any combination and in any order;

4. Omit stops at any point or points;

5. Transfer traffic from any of its aircraft to any of its other aircraft at any point on the routes; and

6. Serve points behind any point in its territory with or without change of aircraft or flight number and hold out and advertise such services to the public as through services; without directional or geographic limitation and without loss of any right to carry traffic otherwise permissible under this Agreement; provided that, with the exception of all-cargo services, the service serves a point in the territory of the part designating the airline.

6. Section 1 of Annex II shall be amended to read as follows:

Section 1

Airlines of each party designated under this Annex shall, in accordance with the terms of their designation, have the right to carry international charter traffic of passengers (and their accompanying baggage) and/or cargo (including, but not limited to, freight forwarder, split, and combination [passenger/cargo] charters): between any point or points in the territory of the party that has designated the airline and any point or points in the territory of the other party; and between any point or points in the territory of the other party and any point or points in a third country or countries, provided that, except with respect to cargo charters, such service constitutes part of a continuous operation, with or without a change of aircraft, that includes service to the homeland for the purpose of carrying local traffic between the homeland and the territory of the other party.

In the performance of services covered by this Annex, airlines of each party designated under this Annex shall also have the right: (1) to make stopovers at any points whether within or outside of the territory of either party; (2) to carry transit traffic through the other party's territory; (3) to combine on the same aircraft traffic originating in one party's territory, traffic originating in the other party's territory, and traffic originating in third countries; and (4) to perform international air transportation without any limitation as to change, at any point on the route, in type or number of aircraft operated; provided that, except with respect to cargo charters, in the outbound direction, the transportation beyond such point is a continuation of the transportation from the territory of the party that has designated the airline and in the inbound direction, the transportation to the territory of the party that has designated the airline is a continuation on the transportation from beyond such point.

Each party shall extend favorable consideration to applications by airlines of the other party to carry traffic not covered by this Annex on the basis of comity and reciprocity.

If this proposal is acceptable to the Government of the Islamic Republic of Pakistan, I have the further honor to propose that this note and your note in reply shall constitute an agreement between our two governments, which shall enter into force on the date of your note.

Accept, Excellency, the renewed assurances of my highest consideration.

William B. Milam

No. USA(I)-1/43/99

Ministry of Foreign Affairs

Islamabad

April 29, 1999

The Ministry of Foreign Affairs of the Islamic Republic of Pakistan presents its compliments to the Embassy of the United States of America in Islamabad and with reference to their note No. 405/ECON dated April 12, 1999 has the honour to state that the Government of Pakistan agrees with the amendments in the Air Transport Agreement between Pakistan and the United States of America proposed by the U.S. side.

The Ministry of Foreign Affairs avails itself of this opportunity to renew to the Embassy of the United States of America the assurances of its highest consideration.

Embassy of the

United States of America,

Islamabad.

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