The Government of the Republic of China and the Government of t-
he Republic of the Marshall Islands (hereinafter referred to as
the "Contracting Parties") :
Being willing to abide by the Convention on International Civil
Aviation opened for signature at Chicago on the Seventh day of
December 1944;
Desiring to conclude an Agreement, supplementary to the said Co-
nvention for the purpose of establishing scheduled air services
between and beyond their respective territories;
Desiring to secure the highest degree of safety and security in
international air transport;
Have agreed as follows:

ARTICILE 1 Definitions
1.For the purpose of this Agreement unless the context otherwis-
e requires:
a) the term "the Convention" means the Convention on Internatio-
nal Civil Aviation, opened for signature at Chicago, on the
seventh day of December 1944, and includes any Annex adopted
under Article 90 of that Convention and any amendments of the
Annexes or Convention under Article 90 and 94 thereof in so
far as they become effective for both Contracting Parties;
b) the term "Aeronautical Authorities" means in the case of the
Government of the Republic of China, the Ministry of Transpo-
rtation and Communications, or any person or body authorized
to perform the functions exercised by the Ministry of Transp-
ortation and Communications or similar functions; and in the
case of the Government of the Repubhc of the Marshall Islands
, the Ministry of Transportation and Communications, or any
person or body authorized to perform the functions exercised
by the Ministry of Transportation and Communications or simi-
lar functions;
c) the term "designated aurline" means an airline which has been
designated and authorized in accordance with Article 3 of th-
is Agreement;
d) the term "territory" in relation to a State has the meaning
assigned to it in Article 2 of the Convention;
e) the term "air service," "international air services," "airli-
ne" and "stop for non-traffic purposes" have the meaning res-
pectively assigned to them in Article 96 of the Convention;
f) the term "tariff" means the prices to be paid for the carria-
ge of passengers, baggage and cargo and the conditions under
which these prices apply, including commission charges and o-
ther additional remuneration for agency or sale of transport-
ation documents but excluding remuneration and conditions for
carriage of mail; and
g) the term "this Agreement" includes the Annex hereto and any
amendments to it or to the Agreement.
2.The Annex to this Agreement forms an integral part of the Agr-
eement, and all references to the Agreement shall be deemed to
include reference to the AMex 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 designat-
ed airline to establish and operate international air services
on the routes specified in the Annex hereto (hereinafter call-
ed the "agreed services" and the "specified routes").
2.Subject to the provisions of this Agreement, the designated a-
irline of each Contracting Party shall enjoy the following ri-
ghts:
a) the right to fly without landing across the territory of the
other Contracting Party;
b) the right to make stops in that territory for non-traffic pu-
rposes; and
C) the right to make stops in the territory of the other Contra-
cting Party while operating an agreed service on a specified
route at points specified for that route in the Annex, for t-
he purposes of putting down and taking on board international
traffic in passengers, mail and cargo.
3.Nothing in paragraph (2) of this Article shall be deemed to c-
onfer on a designated airline of one Contracting Party the ri-
ght to take on board, with or without remuneration, in the te-
rritory of the other Contracting Party passengers, baggage and
cargo including mail destined for another point in the territ-
ory of the other Contracting Party.

ARTICLE 3 Designation and Authorization
1.Each Contracting Party shall have the right to designate in w-
riting to the other Contracting Party multiple airlines for t-
he purpose of operating the agreed services on the specified
routes and to withdraw or alter such designation.
2.On receipt of such designation, the aeronautical authorities
of the other Contracting Party shall, subject to the provisio-
ns of Paragraph (3) and (4) of this Article, without any unre-
asonable delay, grant to the designated airline the appropria-
te operating authorizations and technical permissions.
3.The aeronautical authorities of one Contacting Party may requ-
ire an airline designated by the other Contracting Party to s-
atisfy them that it is qualified to fulfill the conditions pr-
escribed under the laws and regulations normally applied by t-
hem, in conformity with the provisions of the Convention, to
the operation of international air services.
4.The aeronautical authorities of each Contracting Party shall
have the right to refuse the grant of operation authorization
referred to in Paragraph (2) of this Article, or to impose co-
nditions as it may deem necessary on the exercise by a design-
ated airline of the rights specified in Article 2 of this Agr-
eement, in any case where:
a) it is not satisfied that substantial ownership and effective
control of that airline are vested in the Contracting Party
designating the airline or in its nationals; or
b) the designated airline fails to comply with the national laws
and regulations referred to in paragraph (3) of this Article.

ARTICLE 4 Suspension or Revocation of Operating Authorization
1.The aeronautical authorities of each Contracting Party shall
have the right to revoke, suspend or limit the operating auth-
orizations or technical permissions of an airline designated
by the other Contracting Party where:
a) substantial ownership and effective control of that airline
are not vested in the other Contracting Party designating the
airline or in nationals of such Contracting Party; or
b) that airline has failed to domply with the laws and regulati-
ons of the Contracting Party granting these rights; or
C) that airline has failed to operate in accordance with condit-
ions prescribed under the Agreement.
2.Unless immediate action is essential to prevent further infri-
ngements of laws and regulations,the rights established by th-
is Article shall be exercised only after consultation with the
other Contracting Party.In such a case the consultation shall
begin within a period of sixty (60) days trom the date request
is made by either Contracting Party.

ARTICLE 5 Application of Laws
1.The laws and regulations of one Contracting Party governing e-
ntry into and departure from its territory of aircraft engaged
in international air navigation or flights of such aircraff o-
ver that territory shall apply to the designated airline of t-
he other Contracting Party.
2.The laws and regulations of one Contracting Party governing e-
ntry into, sojourn in, and departure from its territory of pa-
ssengers, crew,baggage, cargo or mail, such as formalities re-
garding entry, exit, emigration and immigration, as well as c-
ustoms and sanitary measures, shall apply to passengers, crew,
baggage cargo or mail carried by the aircraft of the designat-
ed airline of the other Contracting Party while they are with-
in the said territory.
3.Each Contracting Party undertakes not to grant any preferences
to its own airline over the designated airline of the other C-
ontracting Party with regard to the application of the laws a-
nd regulations provided for by this Article.

ARTICLE 6 Capacity Provisions
1.There shall be fair and equal opportunity for the designated
airline of each Contracting Party to operate the agreed servi-
ces on the specified routes between and beyond their respecti-
ve territories.
2.The agreed services provided by the designated airlines of the
Contracting Parties shall bear a close relationship to the re-
quirements of the public for transportation on the specified
routes.
3.The capacity to be provided, the frequency of services to be
operated shall be specified in the Annex to this Agreement. A-
ny increases in the capacity to be provided or frequency of s-
ervices to be operated by the designated airlines of either C-
ontracting Party shall be agreed upon between the aeronautical
authorities of both Contracting Parties.

ARTICLE 7 Tariffs
1.The aeronautical authorities of each Contracting Party shall
allow tariffs for air transportation to be established by eac-
h designated airline based upon commercial considerations in
the marketplace.
Intenrention shall be limited to:
a.prevention of unreasonably discriminatory tariffs or practi-
ces;
b.protection of consumers from tariffs that are unreasonably
high or restrictive due to abuse of a dominant position; and
c.protec6on of airlines from tariffs that are artificially low
due to direct or indirect subsidy or support provided by the
authorities.
2.The aeronautical authorities of each Contracting Party may re-
quire the designated airlines of the other Contracting Party
to notify to or file with the said authorities of the tariffs
to be charged to or from its territory no more than 30 days b-
efore the proposed date of effectiveness.
3.The aeronautical authorities of either Contracting Party shall
not take unilateral action to prevent the inauguration or con-
tinuation of a tariff proposed to be charged or charged by
(a) any designated airline for international air transportat-
ion between the territories of both Contracting Parties, or (b
) an airline designated by one Contracting Party for internat-
ional air transportation between the territory of the other C-
ontracting Party and any other territory, including in both c-
ases transportation on an interlineor intraline basis. If the
aeronautical authorities of either Contracting Party believes
that any such tariff is inconsistent with the considerations
set forth in Paragraph: (1) of this Article, it shall request
consultations and notify the aeronautical authorities of the
other Contracting Party of the reasons for its dissatisfaction
as soon as possible. These consultations shall be held not la-
ter than 30 days after receipt of the request, and the aerona-
utical authorities of both Contracting Parties shall cooperate
in securing information necessary for reasoned resolution of
the issue.
If the aeronautical authorities of both Contracting Parties r-
each agreement with respect to a tariff for which a notice of
dissatisfaction has been given, the aeronautical authorities
of each Contracting Party shall use its best efforts to put t-
hat agreement into effect. Without such mutual agreement, the
price shall go into effect or continue in effect.

ARTICLE 8 Exemption form Customs Duties and Other Charges
1.On arrival in the territory of the other Contracting Party, a-
ircraft operated on the agreed international air services by
the designated airline of each Contracting Party, their regul-
ar equipment, fuel, lubricants, consumable technical supplies,
spare parts (including engines) and aircraft stores (including
but not limited to such items as food, beverages and liquor,
tobacco and other products destined for sale to or use by pas-
sengers in limited quantities during flight) on board such ai-
rcraft, shall be exempt, on the basis of reciprocity, from all
customs duties and other similar duties, taxes or charges not
based on the costs of services provided, provided such equipm-
ent and supplies remain on board the aircraft.
2.There shall also be exempt, on the basis of reciprocity, from
the same duties, taxes and charges, referred to in Paragraph 1
of this Article, with the exception of charges based on the c-
osts of services provided:
a) aircraft stores introduced into or supplied in the territory
of a Contracting Party and taken on board within reasonable
limits, for use on board aircraft engaged in an internationai
air service of a designated airline of the other Contracting
Party;
b) spare parts including engines introduced into the territory
of a Contracting Party for the maintenance or repair of airc-
raft used in the agreed service by the designated airline of
the other Contracting Party; and
C) fuel, lubricants and consumable technical supplies introduced
into or supplied in the territory of a Contracting Party for
use in an aircraft engaged in the agreed air service by the
designated airline of the other Contracting Party, even when
these supplies are to be used on apart of the journey pedbrm-
ed over the territory of the Contracting Party in which they
are taken on board.
3.Equipment and supplies referred to in Paragraph 1 and 2 of th-
is Article may be unloaded in the territory of the other Cont-
racting Party only with the approval of the customs authoriti-
es of that Contracting Party. Such equipment and supplies may
be placed under the supervision or control of the appropriate
authorities until they are re-exported or otherwise disposed
of in accordance with customs regulations.
4.The exemptions provided by this Article shail. also be availa-
ble where the designated airlines of one Contracting Party ha-
ve contracted with another airline, which similarly enjoys su-
ch exemptions fiom the other Contracting Party, for the loan
or transfer in the territory of the other Contracting Party of
the items specified in Paragraphs 1 and 2 of this Article.

ARTICLE 9 Recognition of Certificates and Licenses
1.Certificates of airworthiness, certificates of competency and
licenses issued or rendered valid by the aeronautical authori-
ties of one Contracting Party shall, during the period of the-
ir validity, be recognized as valid by the aeronautical autho-
rities of the other Contracting Party, provided that the requ-
irements for such certificates and/or licenses are at least e-
qual to the minimum standards which may be established pursua-
nt to the Convention.
2.The aeronautical authorities of each Contracting Party reserve
their rights, however, not to recognize as valid, for the pur-
pose of flights in its own territory, certificates of compete-
ncy and licenses granted to its own nationals or rendered val-
id for them by the aeronautical authorities of the other Cont-
racting Party.

ARTICLE 10 Aviation Security
1.Consistent with their rights and obligations under internatio-
nal law, the Contracting Parties reaffirm that their obligati-
on to each other to protect the security of civil aviation ag-
ainst acts of unlawful interference forms an integral part of
this Agreement. Without limiting the generality of their righ-
ts and obligations under international law, the Contracting P-
arties shall in particillar ensure conformity with the provis-
ions of the Convention on Offenses and Certain Other Acts Com-
mitted on Board Aircraft, done at Tokyo on 14 September 1963
the Convention for the Suppression of Unlawful Seizure of Air-
craft, done at the Hague on 16 December 1970, the Convention
for the Suppression of Unlawful Acts Against the Safety of Ci-
vil Aviation done at Montreal on 23 September 1971, and the P-
rotocol for the Suppression of Unlawful Acts of Violence at A-
irports Serving International Civil Aviation, done at Montreal
on 24 February 1988.
2.The Contracting Parties shall ensure that upon request all ne-
cessary assistance be provided to authorities of the other Co-
ntracting Party to prevent acts of unlawful seizure of civil
aircraft and other unlawful acts against the safety of such a-
ircraft, their passengers and crew, airports and air navigati-
on facilities, and any other threat to the security of civil
aviation.
3.The Contracting Parties shall, in their mutual relations, ens-
ure conformity with the aviation security provisions establis-
hed by the International Civil Aviation Organization and desi-
gnated as Annexes to the Convention; they shall ensure that o-
perators of aircraft registered in their respective territory
or operators who have their principal place of business or pe-
rmanent residence in their respective territory and the opera-
tors of airports in their respective territory act in confonn-
ity with such aviation security provisions.
4.Each Contracting Party agrees to ensure that such operators of
aircraft may be required to observe the aviation security pro-
visions referred to in Paragraph 3 above required by the other
Contracting Party for entry into, departure from, or while wi-
thin the territory of the other Contracting Party.
5.Each Contracting Party shail ensure that adequate measures are
effectively applied within its territory to protect the aircr-
aft and to Inspect passengers, crew, carry-on items, baggage,
cargo and aircraft stores, prior to and during boarding or lo-
ading. Each Contracting Party shall also ensure that their ae-
ronautical authorities give positive consideration to any req-
uest from the other Contracting Party for reasonable special
security measures to meet a particular threat.
6.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 e-
nsure that assistance is provided to facilitate communications
and other appropriate measures intended to tenninate rapidly
and safely such incident or threat.

ARTICLE 11 Transfer of Earnings
Each Contracting Party shall grant to the designated airline of
the other Contracting Party the right to transfer in any freely
convertible currency the excess of revenue over expenditure ear-
ned by that airline in the territory of the first-mentioned Con-
tracting Party in connection with the carriage of passengers, b-
aggage, mail and cargo in accordance with the foreign exchange
regulations in force at the official bank rate of exchange.

ARTICLE 12 Commercial Opportunities
Subject to the laws and regulations of the other Contracting Pa-
rty, the designated airline of each Contracting Party shall have
an equal opportunity:
a) to enter, reside the employ in the other Contracting Party,
or to bring in and maintain in the territory of the other Co-
ntracting Party those of their own managerial and other spec-
ialist staff who re required for the provision of air servic-
es; and
b) to issue all kinds of documents of carriage and to advertise
and to promote sales in the territory of the other Contracti-
ng Party, to engage in the sale of air transportation in that
territory directly or at the airline's discretion through its
agents. Each airline shall have the right to sell such trans-
portation in the currency of that territory or in freely con-
vertible currencies.

ARTICLE 13 User Charges
1.Neither Contracting Party shall impose on the designated airi-
ines of the other Contracting Party user charges higher than
those imposed on its own designated airlines operating similar
international air services.
2.Each Contracting Party shall use its best efforts to ensure t-
hat charges imposed on the designated airlines of the other C-
ontracting Party are just and reasonable,

ARTICLE 14 Conswltations and Amendment
1.In order to ensure close collaboration in the performance of
this Agreement the aeronautical authorities of the Contracting
Parties shall consult on request of either of those authoriti-
es.
2.If either of the Contracting Parties considers it desirable to
amend any provision of the present Agreement including the An-
nex, it may request consultation with the other Contracting P-
arty. Such consultation, which may be between aeronautical au-
thorities and which may be through discussion or by correspon-
dence, shall begin within a period of sixty (60) days from the
date of receipt of the request.
3.If a multilateral convention concerning air transport comes i-
nto force on request of both Contracting Parties, this Agreem-
ent shall be amended so as to conform to provisions of that c-
onvention.

ARTICLE 15 Settlement of Disputes
1.If any dispute arises between the Contracting Parties relating
to the interpretation or application of this Agreement, the C-
ontracting Parties shall in the first place endeavor to settle
it by negotiation.
2.If the Contracting Parties fail to reach a settlement by nego-
tiation, the dispute may at the request of either Contracting
arty be submitted for decision to a tribunal of three arbitra-
tors, one to be nominated by each Colltracting Party and the
third to be appointed by the two so nominated. Each of the Co-
ntracting Parties shall nominate an arbitrator within a period
of sixty (60) days from the date of receipt by either Contrac-
ting Party from the other of a notice requesting arbitration
of the dispute and the third arbitrator shall be appointed wi-
thin a fiulther period of sixty (60) days.
3.If either of the Contracting Parties fails to nominate an arb-
itrator within the period specified, or if the third arbitrat-
or is not appointed within the period specified, the President
of the Council of the International Civil Aviation Organizati-
on may be requested by either Contracting Party to appoint an
arbitrator or arbitrators as the case requires. In any case,
the third arbitrator shall be national of a third State and s-
hail act as President of the arbitral tribunal.
4.The Contracting Parties shall undertake to comply with any de-
clslon given under Paragraph (2) of this Article.

ARTICLE 16 Termination
Either Contracting Party may at any time give written notice th-
rough appropriate channels to the other Contracting Party of its
decision to terminate this Agreement. In such case this Agreeme-
nt shall terminate twelve (12) months after the date of receipt
of the notice by the other Contracting Party, unless the notice
to terminate is withdrawn by mutual agreement before the expiry
of this period.

ARTICLE 17 Entry into Force
This Agreement shall enter into force on the date of signature.

IN WITNESS WHEREOF, the undersigned, being duly authorized ther-
eto by their respective Governments, has signed this Agreement.
Done at Taipei in duplicate in the English language on the tenth
day of the secondmonth, One Thousand Nine Hundred and Ninety Ni-
ne.

For the Government of For the Government of
the Republe of China the Republic of the Marshall Islands
Lee Teng -hni Imata Kabna
President President
Republic of China Republic of the Marshall Islands