The Government of the People's Republic of China and the Government of the United Arab Emirates, hereinafter referred to as "the Contracting Parties";

Desiring to facilitate friendly contacts between their two peoples, and develop mutual relations between the two countries in the field of civil aviation;

Have agreed on the establishment and operation of scheduled air services between and beyond their respective territories as follows:

ARTICLE 1

Definitions

For the purpose of this Agreement, unless the context otherwise requires:

a) the term "aeronautical authorities" means, in the case of the People's Republic of China, the Civil Aviation Administration of China, and in the case of the United Arab emirates, the Minister of Communications, or in both cases any other person or agency authorized to perform the functions presently exercised by the said authorities;

b) the term "airline" means any air transport enterprise offer or operating international air services;

c) the term "air service" means any scheduled air service performed by aircraft for the the public transport of passengers, baggage, cargo or mail;

d) the term "international air service" means an air service which passes through the air space over the territory of more than one state;

e) the term "stop for non-traffic purposes" means a landing for any purpose other than taking on or discharging passengers, baggage, cargo or mail;

f) the term "capacity" means:

(1) in relation to an aircraft, the payload of that aircraft available on a route or section of a route.

(2) in relation to a specified air service, the capacity of the aircraft used on such service multiplied by the frequency operated by such aircraft over a given period on a route or section of a route.

g) the term "tariff" means the prices to be paid for the carriage of passengers, baggage and freight and the conditions under which those prices apply, including prices and conditions for agency and other auxiliary services, but excluding remuneration or conditions for the carriage of mail;

h) the term "Schedule" means the Route Schedule annexed to this Agreement or as amended in accordance with the provisions of Article 17 of the Agreement.

The Schedule forms an integral part of this Agreement and all references to the Agreement shall include references to the Schedule except where otherwise provided.

ARTICLE 2

Grant of Rights

1) Each Contracting Party grants to the other Contracting Party the rights specified in this Agreement to enable its designated airline to establish and operate international air services on the route(s) specified in the Schedule ( hereinafter called "the agreed services" and "the specified route(s)" respectively).

2) Subject to the provisions of this Agreement, the designated airline of each Contracting Party shall enjoy while operating an agreed service on a specified route, the following rights:

a) to fly without landing across the territory of the other Contracting Party along the air routes prescribed by the aeronautical authorities of the other Contracting Party;

b) to make stops for non-traffic purposes in the said territory, at points to be agreed upon between the aeronautical authorities of both Contracting Parties; and

c) to make stops at the point(s) on the route(s) specified in the Schedule for the purpose of taking on board and discharging international traffic in passengers, baggage, cargo or mail either separately or in combination.

3) Nothing in paragraph (2) of this Article shall be deemed to confer on the designated airline of one Contracting Party the privilege of taking on board, in the territory of the other Contracting Party, passengers, cargo, and mail carried for hire or reward and destined for another point in the territory of the other Contracting Party.

4) In case the designated airline of one Contracting Party desires to operate an additional flight or a charter flight on the specified route, it shall submit an application to the aeronautical authorities of the other Contracting Party, and the flight can be operated only after approval has been obtained. The said application shall be submitted not later than seventy-two hours before to take-off of such flight.

ARTICLE 3

Revocation of Operating Authorization

1) Each Contracting Party shall have the right to revoke or suspend the operating authorization already granted to the designated airline of the other Contracting Party, or to impose such conditions as it may deem necessary on the exercise by the said designated airline of the rights specified in Article 2 of this Agreement, in any of the following cases:

a) where it is not satisfied that the substantial ownership and effective control of that airline are vested in the Contracting Party designating the airline or its nationals, or

b) where that airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.

2) Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph (1) of this Article is essential to prevent further infringements of laws and regulations, such right shall be exercised only after consultation with the other Contracting Party.

ARTICLE 4

Provision of Technical Services and Rate of Charges

1) Each Contracting Party shall designate in its territory regular airport and alternate airport to be used by the designated airline of the other Contracting Party for the operation of the agreed services, and shall provide that airline with such communications, navigational, meteorological and other auxiliary services in its territory as are required for the operation of the agreed services where necessary. Detailed arrangements relating to the above shall be agreed between the aeronautical authorities of both Contracting Parties.

2) The designated airline of each Contracting Party shall be charged for the use of airports, facilities and technical services of the other Contracting Party at fair and reasonable rates prescribed by the appropriate authorities of the other Contracting Party. Such rates shall not b e higher than those paid by airlines of other States engaged in international air services for the use of similar facilities and services.

ARTICLE 5

Customs Duties and Other Charges

1) Aircraft operated on international air services by the designated airline of one Contracting Party, as well as their regular equipment, spare parts, supplies of fuels, oils (including hydraulic fluids), lubricants, and aircraft stores (including food, beverages and tobacco) on board such aircraft shall be exempt from all customs duties, inspection fees and other duties or charges on arriving in the territory of the other Contracting Party, provided such equipment and supplies remain on board the aircraft upto such time as they are re-exported.

2) Supplies of fuels, oils (including hydraulic fluids), lubricants, spare parts, regular equipment and aircraft stores introduced into the territory of each Contracting Party by or on behalf of the designated airline of the other Contracting Party or taken on board the aircraft operated by such designated airline and intended solely for use in the operation of international air services shall be exempt from all duties and charges, including customs duties and inspection fees imposed in the territory of the first Contracting Party even when those supplies are to be used on the parts of the journey performed over the territory of the Contracting Party in which they are take on board. The materials referred to above may be required to be kept under customs supervision or control.

3) The regular airborne equipment, spare parts, aircraft stores, and supplies of fuels, oils (including hydraulic fluids), and lubricants retained on board the aircraft of either Contracting Party may be unloaded in the territory of the other Contracting Party only with the approval of the customs authorities of that Contracting Party, who may require that those materials be placed under their supervision and control up to such time as they are re-exported or otherwise disposed of in accordance with customs regulations.

4) Airline tickets, airway bills as well as airline publicity materials and give-away items of the designated airline of either Contracting Party introduced into the territory of the other Contracting Party shall be exempt from all customs duties, inspection fees and other duties or charges.

ARTICLE 6

Representation and Personnel

1) For the operation of the agreed services on the specified route, the designated airline of each Contracting Party shall have the right, on reciprocal basis, to set up representation at the point of call on the specified route within the territory of the other Contracting Party. The staff of the representation referred to in this paragraph shall be subject to the laws and regulations in force in the country where such representation is located.

2) The staff members of the representation of the designated airline of each Contracting Party in the territory of the other Contracting Party shall be nationals of either Contracting Party, unless otherwise agreed. The number of such staff shall be determined on reciprocal basis between the aeronautical authorities of both Contracting Parties.

3) Each Contracting Party shall to the practicable extent ensure the safety of the representation and its staff members of the designated airline of the other Contracting Party, and safeguard the aircraft, stores and other properties of the said airline in its territory for use in the operation of the agreed services.

4) Each Contracting Party shall extend assistance and facilities to the representation and its staff members of the designated airline of the other Contracting Party necessary for the efficient operation of the agreed services.

5) The crew members of the designated airline of either Contracting Party on flights into and out of the territory of the other Contracting Party shall be nationals of the Contracting Party designating such airline. If a designated airline of either Contracting Party desires to employ crew members of any other nationality on flights into and out of the territory of the other Contracting Party, prior approval shall be obtained from that other Contracting Party annually.

ARTICLE 7

Transfer of Airline Earnings

Each Contracting Party undertakes to grant the designated airline of the other Contracting Party free transfer, at the expenditure achieved in its territory in connection with the carriage of passengers, baggage, cargo and mail by the said designated airline. Whenever the payment system between the Contracting Parties is governed by a special agreement, that agreement shall apply.

ARTICLE 8

Entry and Clearance Regulations

1) The laws and regulations of either Contracting Party relating to the admission into, stay in, departure from and flight over its territory of aircraft engaged in the operation of international air services, as well as laws and regulations relating to the admission to, stay in and departure from its territory of passengers, crew, baggage, cargo and mail shall be applicable to the aircraft of the airline designated by the other Contracting Party, its crew as well as the passengers, baggage, cargo and mail carried by such aircraft, while in the territory of the first Contracting Party. Each Contracting Party shall promptly supply to the other Contracting Party at the latter's request the texts of the above mentioned laws and regulations.

2) Passengers in direct transit across the territory of either Contracting Party shall be subject to no more than very simplified form of control. Baggage and freight, if in direct transit, shall be exempt from customs duties, inspection fees and other duties and charges.

ARTICLE 9

Capacity Provisions

1) There shall be equal opportunity for the designated airlines of the Contracting Parties in operating the agreed services on the specified routes.

2) Matters relating to time table, type of aircraft, schedule, ground handling and other matters pertaining to the operation of the agreed services shall be agreed upon through consultation between the designated airlines of both Contracting Parties.

The arrangement so agreed shall be subject to the approval of the aeronautical authorities. If the designated airlines of both Contracting parties fail to reach agreement on frequency, type of aircraft and flight schedule, the aeronautical authorities of both Contracting Parties shall endeavour to settle the matter through consultation.

3) In the operation of the agreed services, the designated airline of each Contracting Party shall take into account the interests of the designated airline of other Contracting Party so as not to affect unduly the air services which the latter airline provides over the whole route or parts thereof.

4) Agreed services provided by a designated airline shall retain as their primary objective the provision at a reasonable load factor, of capacity adequate to the requirements for the carriage of passengers, cargo and mail, operating from or destined for the territory of the Contracting Party designating their airline. The right of the designated airline of either Contracting Party to embark or to disembark at the point in the territory of the other Contracting Party international traffic destined for or coming from third countries shall be of a supplementary nature.

ARTICLE 10

Information and Statistics

The aeronautical authorities of either Contracting Party shall furnish to the aeronautical authorities of the other Contracting Party, at their request, statistical date as may be reasonably required for the purpose of reviewing the capacity provided by the designated airline of the first Contracting Party on the specified route. Such date shall include all Party on the specified route. Such date shall include all information required to determine the amount of traffic carried.

ARTICLE 11

Establishment of Tariffs

1) The tariffs on any agreed services 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 following provisions of this Article.

2) The tariffs referred to in paragraph (1) of this Article shall be agreed upon between the designated airlines of both Contracting Parties, in consultation, when necessary and possible, with other airlines operating over the whole or part of that route. The tariffs so agreed shall be subject to the approval of the aeronautical authorities of both Contracting Parties and shall be submitted to their respective aeronautical authorities at least 90 days prior to the proposed date of introduction of these tariffs. This period can be reduced in certain cases upon agreement between the said authorities.

3) If the designated airlines can not agree on any of these tariffs, the aeronautical authorities of the Contracting Parties shall try to determine the tariffs by agreement between themselves.

4) If the aeronautical authorities can not agree on the approval of any tariff submitted to them under paragraph (2) of this Article or on the determination of any tariff under paragraph (3), the matter shall be referred to the Contracting Parties for settlement in accordance with provisions of Article 16 of this Agreement.

5) Pending determination of a new tariff in accordance with the provision of this Article, the tariffs already in force shall prevail. Nevertheless, a tariff shall not be prolonged by virtue of this paragraph for more than 12 months after the date on which it otherwise would have expired.

ARTICLE 12

Documents

1) The aircraft of the designated airline of either Contracting Party operating on the specified route shall bear its nationality and registration marks and carry on board the following certificates and documents:

a) certificate of registration;

b) certificate of airworthiness;

c) journey log sheet;

d) aircraft radio station licence;

e) licences or certificates for each member of the crew;

f) list of crew members;

g) list of passengers giving the places of departure and destination;

h) manifest of cargo and mail;

i) general declaration.

Each Contracting Party shall recognize as valid the certificates and licences mentioned above issued or rendered valid by the other Contracting Party.

2) The designated airline or either Contracting Party can operate the agreed services on the specified route(s) with aircraft leased from a third country.

However, consultation may be conducted between the Contracting Parties if necessary at the request of either Contracting Party in case of aircraft having nationality of a third country.

ARTICLE 13

Search and Rescue

In case the aircraft of the designated airline of one Contracting Party is in distress or meets with an accident in the territory of the other Contracting Party, the other Contracting Party shall:

a) inform without delay the first Contracting Party of the accident;

b) immediately start search and rescue operations;

c) render assistance to the passengers and crew;

d) provide all security measures for the aircraft and its contents;

e) carry out investigation into the accident;

f) permit the representatives of the first Contracting Party access to the aircraft and participate in the investigation as observers;

g) give clearance to the aircraft and its contents as soon as they are no longer necessary for the investigation; and

h) communicate in writing to the first Contracting Party its conclusions and the final report concerning the investigation.

ARTICLE 14

Aviation Security

1) Each Contracting Party shall take all necessary precautions in its territory and in accordance with its national laws and regulations to prevent unlawful acts against civil aircraft of the other Contracting Party, their crews, passengers, baggage, cargo and mail.

2) When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the safety of such aircraft, their passengers and crews, airports or air navigation facilities occurs, the Contracting Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat thereof.

ARTICLE 15

Consultations

1) The Contracting Parties shall ensure the correct implementation of, and satisfactory compliance with, the provisions of the present Agreement in a spirit of close cooperation and mutual support. To this end, the aeronautical authorities of the Contracting Parties shall consult each other from time to time.

2) Either Contracting Party may request consultation with the other Contracting Party, which may be either oral or in writing, and which shall begin within a period of 60 days from the date of receipt of the request, unless both Contracting Parties jointly determine an extension of this period.

ARTICLE 16

Settlement of Disputes

If any difference of opinion arises in respect of the interpretation or application of this Agreement, the two Contracting Parties shall, where appropriate, endeavour to settle it directly through consultation in a spirit of friendly cooperation and mutual understanding. If the matter at issue does not lie within their competence, both Contracting Parties shall endeavour to settle it through diplomatic channels.

ARTICLE 17

Amendment

1) If either of the Contracting Parties considers it desirable to amend any provision of this Agreement including the Schedule, it may request consultation with the other Contracting Party. This consultation, which may be between aeronautical authorities and may be through discussion or by correspondence, shall begin within a period of 60 days from the date of receipt of the request. Any amendments so negotiated shall not come into force until they have been confirmed by way of an exchange of notes through diplomatic channels.

2) If the amendment relates only to the provisions of the annexed schedule, it shall be agreed upon between the aeronautical authorities of both Contracting Parties and shall be effective from the date of the approval of the aeronautical authorities.

ARTICLE 18

Termination

Either Contracting Party may at any time notify the other Contracting Party of its decision to terminate this Agreement. If such notice is given, this Agreement shall terminate twelve months after the date of receipt by the other Contracting Party of the notice to terminate, unless the notice under reference is withdrawn before the expiry of that period. Notice shall be deemed to have been received 14 days after the date of the notice, or at the date or handing in the notice to the diplomatic mission of the other Contracting Party in the territory of the first Contracting Party.

ARTICLE 19

Titles

Titles are inserted in this Agreement at the head of each article for the purpose of reference and convenience and in no way to define, limit or describe the scope or intent of this Agreement.

ARTICLE 20

Entry into Force

This Agreement shall come into force on the date of exchange of diplomatic notes confirming that the Contracting Parties have completed their respective constitutional procedures.

In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.

Done at Abu Dhabi on this 14th day of September, 1989 in duplicate in the Chinese, Arabic and English languages, all three texts being equally authentic.

For the Government of the People's Republic of China

For the Government of the United Arab Emirates



SCHEDULE

A) The route of the agreed services to the operated by the designated airline(s) of the Government of the United Arab Emirates shall be as follows in both directions:

Points in the United Arab Emirates---Bangkok and other points ---points in the People's Republic of China---points in Japan and other countries.

B) The route of the agreed services to be operated by the designated airline(s) of the Government of the People's Republic of China shall be as follows in both directions:

Point in the People's Republic of China --- intermediate points --- points in the United Arab Emirates --- points beyond

NOTES

1. Unspecified points above shall be agreed upon between the aeronautical authorities of the Contracting Parties.

2. Any point or points on the specified route may be omitted on any or all flights at the discretion of the designated airline(s) of each Contracting Party provided this operation originates in the territory of the Contracting Party designating the airline(s).