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ARTICLE 11

The Government of Yugoslavia agrees to give sympathetic consideration to applications for transfers to the United States of deposits in banks of Yugoslavia and other similar forms of capital owned by nationals of the United States, where the amounts involved are small but which, in view of the circumstances, are of substantial importance to the persons requesting the transfers.

ARTICLE 12

The present Agreement shall come into force and effect upon the date of signature.

IN WITNESS WHEREOF the undersigned, being duly authorized thereto by their respective Governments, have signed the present Agreement.

DONE at Washington in duplicate this nineteenth day of July, 1948.

For the Government of the United States of America:

G. C. MARSHALL

Secretary of State

of the United States of America

For the Government of the Federal People's Republic of Yugoslavia:

OBREN BLAGOJEVIC

Deputy Minister of Finance

of the Federal People's Republic of Yugoslavia

AIDE-MÉMOIRE

Upon the signature of the Agreement between the Governments of the United States of America and the Federal People's Republic of Yugoslavia regarding Pecuniary Claims of the United States and Its Nationals, the necessary licenses will be issued by the Government of the United States unblocking Yugoslav assets, public and private, and enabling the Yugoslav Government freely to use, transfer or export the gold and other assets on deposit with the Federal Reserve Bank of New York in the name of the Government of Yugoslavia in excess of the amount to be paid to the United States pursuant to such Agreement. Concurrently, the Secretary of State will certify to the Federal Reserve Bank of New York the authority of the Yugoslav Ambassador to receive, control and dispose of such assets.

Upon the issuance of such licenses and certification, and in view of the assurances during the negotiations that the documents requested by the Federal Reserve Bank of New York, in its letter of November 30, 1945, to the Yugoslav National Bank, will, in due course, be furnished by such Bank, the Federal Reserve Bank of New York will promptly execute the instructions of the Ambassador with respect to such assets.

All formalities with respect to the issuance of the necessary licenses and certification will be promptly accomplished, so that such assets will be at the free disposal of the Yugoslav Government for use, transfer or export within five days of the signature of the aforesaid Agreement.

DEPARTMENT OF STATE,

Washington, July 19, 1948

EXCHANGE OF NOTES

The Secretary of State to the Yugoslav Ambassador

J. B. K.

The Secretary of State presents his compliments to His Excellency, the Ambassador of the Federal People's Republic of Yugoslavia and has the honor to inform the Ambassador that the United States Government understands from the Embassy's communication No. Pov. Br. 407 of April 2, 1946, that the Government of the Federal People's Republic of Yugoslavia recognizes among its other international obligations the dollar bonds issued or guaranteed by predecessor Yugoslav governments, and inquiries whether the Ambassador would confirm this interpretation.

J. B. K.

DEPARTMENT OF STATE,

Washington, July 19, 1948

The Yugoslav Ambassador to the Secretary of State

EMBASSY OF THE FEDERAL PEOPLE'S

REPUBLIC OF YUGOSLAVIA

Pov. br. 767

WASHINGTON

The Ambassador of the Federal People's Republic of Yugoslavia presents his compliments to the Honorable the Secretary of State and has the honor to acknowledge the note of July 19, 1948, from the Secretary of State in which it was stated that the United States Government understands from this Embassy's communication No. Pov. Br. 407 of April 2, 1946, that the Government of the Federal People's Republic of Yugoslavia recognizes among its other international obligations, the dollar bonds issued or guaranteed by predecessor Yugoslav governments.

In his note of July 19, 1948, the Secretary of State inquires whether the Ambassador would confirm this interpretation.

The Ambassador of the Federal People's Republic of Yugoslavia confirms the interpretation of the United States Government of this Embassy's

communication No. Pov. Br. 407 of April 2, 1946, and states that his Government will consider means of discharging such obligations when Yugoslavia's economic condition, seriously injured by the ravages of war, and her foreign exchange position permit.

WASHINGTON, D.C., July 19, 1948.

The Honorable

THE SECRETARY OF STATE

Washington, D.C.

[EMBASSY SEAL]

S. N. K.

The Secretary of State to the Yugoslav Ambassador

The Secretary of State presents his compliments to His Excellency the Ambassador of the Federal People's Republic of Yugoslavia and has the honor to acknowledge the receipt of the Ambassador's note No. Pov. Br. 767, of July 19, 1948, reading as follows:

[For text of Yugoslav note, see above.]

The Secretary of State has taken due note of the foregoing note of July 19, 1948, from the Ambassador of the Federal People's Republic of Yugoslavia.

DEPARTMENT OF STATE,

J. B. K.

Washington, July 19, 1948

AIR TRANSPORT SERVICES

Exchange of notes at Belgrade December 24, 1949
Entered into force December 24, 1949

Terminated August 3, 1959 1

64 Stat. B131; Treaties and Other International Acts Series 2055

The American Embassy to the Ministry for Foreign Affairs

EMBASSY OF THE

UNITED STATES OF AMERICA

No. 1533

The American Embassy, Belgrade, has the honor to refer to the conversations concerning civil air transport rights which took place from November 5 to December 23, 1949, at Belgrade between representatives of the Government of the United States of America and of the Government of the Federal People's Republic of Yugoslavia, and to the understanding reached during the course of these conversations as set forth in the following provisions:

1) The Government of the United States of America accords to an airline to be designated by the Federal People's Republic of Yugoslavia the right to operate scheduled services, with rights of transit and non-traffic stop at airports open to civil aircraft in the United States areas of control in Austria and Germany, as well as the right to pick up and discharge international traffic in passengers, cargo, and mail, at two airports in the United States occupation zone Germany and one airport in the United States occupation zone Austria open to civil aircraft, on a route or routes via intermediate points in both directions from Yugoslavia via the United States occupation zones in Austria and Germany and beyond, such routes to be determined at a later date.

2) The Government of the Federal People's Republic of Yugoslavia accords to an airline to be designated by the Government of the United States of America the right to operate scheduled services, with rights of transit and non-traffic stop at airports open to civil aircraft in Yugoslav territory as well

1

1 Pursuant to notice of termination given by Yugoslavia June 3, 1959.

308-581-74- -82

as the right to pick up and discharge international traffic in passengers, cargo, and mail at Belgrade on the following route via intermediate points in both directions: United States via the North Atlantic and Europe to Belgrade and beyond.

3) On each of the above routes the authorized airlines may operate nonstop flights between any of the points on such route, thus omitting stops at one or more of the other points on such route.

4) The international air services described in paragraphs 1) and 2) may be inaugurated immediately or at a later date, but only after consultation by the designated airline with the competent aeronautical authorities of the Government whose territory or area of control is to be served as to the nature of operations to be conducted within such territory or area of control and after the issuance of an operating permit, if required, to the designated airline by such aeronautical authorities.

5) In order to prevent discriminatory practices and to assure equality of treatment, it is agreed that:

a) Each Government may impose or permit to be imposed just and reasonable charges for the use of public airports and other facilities under its control; and that such charges shall not however be higher than those paid for the use of such airports and facilities by its national aircraft engaged in similar international services;

b) Fuel, lubricating oils and spare parts introduced into the territory or area of control of one Government by the other Government or its nationals, and intended solely for use by aircraft operated pursuant to the rights accorded under this interim agreement shall, with respect to custom duties, inspection fees or other national duties or charges imposed by the Government whose territory or area of control is entered, receive the same treatment as that applicable to its own national airlines;

c) The fuel, lubricating oils, spare parts, regular equipment and aircraft stores retained on board civil aircraft authorized to operate the services. described in paragraphs 1) and 2) above shall, upon arriving in or leaving the area of control of the other Government be exempt from customs duties, inspection fees or similar duties or charges, even though such supplies be used or consumed by such aircraft on flights in that area.

6) The two Governments agree that:

a) Their respective laws and regulations relating to the admission to or departure from their territories or areas of control of aircraft engaged in international air navigation, or to the operation and navigation of such aircraft while within their respective territories or areas of control, shall be applied to and shall be complied with by their respective aircraft upon entering, departing from or while within their respective territories or areas of control;

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