Empire Air Service (England to Australia) Act 1938 (Cth)
EMPIRE AIR SERVICE (ENGLAND AND AUSTRALIA).
An Act to ratify and authorize certain Agreements relating to the Empire Air Service between England and Australia, and for other purposes.
[Assented to 1st July, 1938.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, for the purpose of appropriating the grant originated in the House of Representatives, as follows:—
THE SCHEDULES.
FIRST SCHEDULE. Section 3.
Copy of Despatch from the High Commissioner of the Commonwealth in the United Kingdom to the Secretary of State for Dominion Affairs.
COMMONWEALTH OF AUSTRALIA.
Australia House, London, W.C.2,
22nd June, 1938.
My Dear Secretary of State,
I have the honour to refer to previous correspondence regarding the question of participation by His Majesty’s Government of the Commonwealth of Australia in the Empire Air Mail Scheme.
(
a ) An Agreement between the Government of the United Kingdom and the Government of the Commonwealth, the particulars of which are set forth in this despatch;(
b ) An Agreement between the Government of the United Kingdom and Imperial Airways Limited covering the operations of that Company;(
c ) An Agreement between the Commonwealth Government and Qantas Empire Airways Limited, covering the operations of that Company: and(
d ) An Agreement between Imperial Airways Limited and Qantas Empire Airways Limited providing for the necessary co-operation between those two companies and in particular for an arrangement whereby the aircraft of both companies may fly along the whole of the route between England and Sydney.
(
a ) The Commonwealth Government shall be entitled at any time and at all times to have all first class mail originating within Australia and its Territories for other countries participating in the Empire Air Mail Scheme together with air mails for non-participating countries carried over all the services included in the Scheme and the Commonwealth Government in its agreement with Qantas Empire Airways will require that contractor to carry over the Sydney-Singapore Section (which is hereinafter referred to as the Australian section) all first-class mail passing between the participating countries that would reasonably be routed over that section together with all air mails originating in one country and addressed to another country and reasonably routed over that section.(
b ) The Commonwealth Government will retain a surcharge system for the present in regard to outward air mail from Australia.
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(
c ) The Commonwealth Government shall have effective control over the Australian section and to that end will enter into an agreement with Qantas Empire Airways for the operation of the Australian section which will provide,inter alia,— (i) that the Commonwealth Government shall pay its subsidy and postal contributions under the Scheme as set out in paragraph 6 hereof direct to Qantas Empire Airways Limited any adjustment between Imperial Airways Limited and Qantas Empire Airways Limited being a matter for settlement between the two Companies direct;
(ii) that the Commonwealth Government shall have the right in the event of breach of agreement by Qantas Empire Airways Limited to withhold any such payments and/or to impose penalties or to cancel the agreement with the Company;
(iii) that the Australian section shall be staffed with Australian personnel;
(iv) that time-tables and stopping places for the Australian section and the fares and freight rates charged by Qantas Empire Airways shall be subject to the approval from time to time of the Commonwealth Government; and
(v) that Qantas Empire Airways Limited shall own and shall at all times have available for use and hold on the Sydney-Singapore section not less than six aircraft of approved type: Provided that if, in pursuance of an arrangement of the kind referred to above in paragraph 4 (
d ), any aircraft of that type belonging to Imperial Airways is at any time in use on the Sydney-Singapore section that aircraft shall be regarded as included in the number of aircraft held on the section at that time by Qantas Empire Airways Limited.(
d ) The withholding of any payments or the imposition of any penalties as contemplated by sub-paragraph (ii) of the last preceding paragraph shall not be regarded as constituting a reduction in the amount of the subsidy payments or postal contributions payable by the Commonwealth Government for the purposes of the Empire Air Mail Scheme;(
e ) No variation of the stopping places for the Australian section as originally fixed shall be made except after agreement between the Governments of the United Kingdom and of the Commonwealth;(
f ) In the event of the Commonwealth proposing any variations in the crews of aircraft operating on the Australian section such variations, if they materially affect the finance of the Empire Air Mail Scheme, shall not be made except after consultation with the Government of the United Kingdom. It is understood, however, that in no case will the crew be less than that required by Commonwealth law.(
g ) All aircraft engaged on the Australian section, whether owned by Qantas Empire Airways Limited or not, are to be regarded as subject to the conditions of the Agreement between the Commonwealth Government and Qantas Empire Airways Limited, and shall be under the control of the Commonwealth Government and, in case of actual or apprehended emergency, at the call of that Government. Conversely, it is agreed that all aircraft engaged on the United Kingdom-Singapore section, whether owned by Imperial Airways Limited or not, are to be regarded as subject to the conditions of the Agreement between the United Kingdom Government and Imperial Airways Limited and shall similarly come under the control of and be at the call of the United Kingdom Government.(
h ) In the event of flying boats proving unsatisfactory in performance over a reasonable period of time within the first two years of the operation of the Scheme, the position will be reviewed by the Advisory Board referred to below in Paragraph 11, and if the Scheme is found to be unsatisfactory in operation and incapable of suitable adjustment to the satisfaction of the Commonwealth Government, the Commonwealth Government may terminate its agreement with the United Kingdom Government.(
i ) There shall be a progressive reduction of the time schedule from England to Sydney down to an eventual schedule of 7 days.(
j ) Aircraft operating the Empire Air Mail service (which is hereinafter referred to as “the service”) under the Scheme will not be charged housing or landing fees in Australian Territory, and any customs or other duty or
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taxes collected in Australia on fuel and oil used by aircraft on flights in performance of the service (including trials and test flights for the purpose of the service) or upon equipment imported into Australia for the purpose of the service (not being equipment which, in the opinion of the Commonwealth Government, is being manufactured in and is commercially available in Australia) will be refunded. “Equipment” means aircraft, aircraft parts and spares; aircraft engines, aircraft engine parts and spares; aircraft and engine instruments and parts and spares for such instruments; and includes technical and workshop equipment of a specialized nature (i.e. not commonly used in other trades) required for the aircraft, the engines, the instruments or the workshops of the Company.
(
k ) The Commonwealth Government reserves the right to represent that major repair work and overhauls in connection with aircraft owned by Qantas Empire Airways Limited shall be carried out in Australia if such work is, in the opinion of the Commonwealth Government, within the capacity of the Australian aircraft industry at the time. If at any time upon representations by the Commonwealth Government it is accepted that the Commonwealth Government should come to an agreement with Qantas Empire Airways Limited that major repair work and overhauls shall thereafter be undertaken in Australia, and if any additional cost is incurred by Qantas Empire Airways Limited by reason of the carrying out in Australia, in pursuance of any such agreement, of such major repair work, and overhauls, the Commonwealth Government will pay the Company an amount to meet any such additional cost incurred at the request, and with the consent, of the Commonwealth Government, calculated upon such basis as shall have been previously agreed between the Commonwealth and Qantas Empire Airways Limited.(
l ) Similarly, the Commonwealth Government reserves the right to represent that any new aircraft required by Qantas Empire Airways Limited for the purposes of the service shall be constructed either wholly or partly in Australia. If at any time upon representations by the Commonwealth Government it is accepted that the Commonwealth Government should come to an agreement with Qantas Empire Airways Limited that such construction shall thereafter be undertaken in Australia, the arrangements between the Commonwealth Government and Qantas Empire Airways Limited for such construction would be based broadly upon the following conditions:—(i) That such work is within the capacity of the Australian aircraft industry at the time;
(ii) That the aircraft so manufactured in Australia shall be of the requisite standard of construction and uniform in type and performance with those manufactured in the United Kingdom for Imperial Airways Limited; and
(iii) That if any additional cost is incurred by the Company by reason of such construction in Australia the Commonwealth Government will pay the Company an amount to meet any such additional cost incurred at the request, and with the consent, of the Commonwealth Government calculated upon such basis as shall have been previously agreed between the Commonwealth and Qantas Empire Airways Limited.
(
a ) The Commonwealth Government will pay to Qantas Empire Airways Limited a minimum annual subsidy of £40,000 sterling. The subsidy payment will be increased by 8s. per pound for each pound of mails originating in Australia or its Territories carried in excess of 40,000 pounds per annum, but shall not exceed £50,000 sterling.The Commonwealth Government will also pay to Qantas Empire Airways Limited 16s. sterling for the carriage of each pound of mail originating in Australia or its Territories but so that the annual amount so paid is not less than £32,000 sterling nor more than £52,000 sterling.
(
b ) For the purpose of ascertaining the total amount of the annual payments made by the Commonwealth under the last preceding sub-paragraph amounts withheld under paragraph 5 (c ) (ii) above shall be regarded as having been paid.
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(
c ) The Commonwealth Government will not, without the consent of the Government of the United Kingdom, vary materially the existing general level of air postal rated for correspondence addressed to non-participating countries.(
d ) The frequency of the service to Australia shall be not less than three times weekly and if increased frequency of the service becomes necessary for the purpose of the carriage of mails no additional payment will thereby be required from the Commonwealth Government.(
e ) The ultimate total liability of the Commonwealth Government in respect of ground organization in the Australian section and the maintenance thereof shall not exceed the sum of £30,000 sterling per annum. This sum shall include and shall be applied in the first place towards amortization of capital expenditure. It shall also include amounts reimbursed by the Commonwealth Government to Qantas Empire Airways Limited under paragraph 9 (b ) below.Capital and maintenance expenditure under this paragraph will be initially financed from Commonwealth funds and the United Kingdom Government will reimburse the Commonwealth Government any amount in excess of the said sum of £30,000 sterling per annum that may be expended by the Commonwealth Government pursuant to the arrangement outlined in paragraph 9 hereof.
(
f ) The adjustments necessary to apportion the respective liability of the United Kingdom Government and of the Commonwealth Government under the last preceding paragraph shall be effected in the following manner:—(i) The actual initial capital expenditure and all capital expenditure during the first two years of the contract shall be determined and shall be fully amortized by equal annual amounts spread over the period of the contract.
(ii) All capital expenditure on agreed additional ground organization incurred after the first two years of the contract shall be fully amortized by equal annual amounts spread over the unexpired period of the contract.
(iii) In the event of any capital asset provided as part of the agreed schedule of ground organisation becoming valueless to the service or being superseded or abandoned before it has been fully amortized, it shall continue to be included for the purpose of determining annual amortization charges until such time as the capital cost less any amount realized on its disposal is liquidated.
(iv) If at the expiration of the period of the contract any capital asset has any residual value in connection with future aircraft services credit shall be given the United Kingdom Government for such proportion of the residual value as may be agreed upon by the two Governments.
(v) For the purpose of determining the respective liability of the two Governments (including amortization charges) interest shall not be charged or taken into account.
(vi) The cost of all maintenance expenditure including expenditure for replacement of capital assets and annual amortization charges will be determined annually and the excess over Australia’s liability of £30,000 sterling will be reimbursed by the United Kingdom Government as soon as practicable after the amount of such excess is determined.
(
g ) The Commonwealth Government will make no reduction in its subsidy payments to the Orient Line on account of the transference of mail to the air service, though it reserves the right to modify the existing arrangements on other grounds if and when it considers such a step to be necessary.
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avoid any liability which, having regard to the broad principles of the arrangement between the two Governments, should fairly and equitably be borne by the Commonwealth Government.
(
a )Within Australia: The ground organisation responsibility of the two Governments shall extend to the provision of the requisite suitable aerodrome and landing areas equipped with all essential aids to navigation such as ground wireless direction finding, wireless beacons, meteorological services, airport and route lighting and with any necessary jetties and slipways, motor control boats equipped with searchlight apparatus and auxiliary launches, and mooring buoys for aircraft. Qantas Empire Airways Limited will be responsible for the provision and maintenance at its own expense of all ground facilities, equipment and personnel required for the handling and maintenance of aircraft and engines and for dealing with the passengers, mail and freight traffic including any hangars (other than at Rose Bay, Sydney), workshops, launches, pontoons and buildings required for those purposes.The Commonwealth Government undertakes responsibility for such facilities within Australia in respect of Customs, Quarantine and Immigration as are considered necessary by the Commonwealth Government.
(
b )Through Netherlands East Indies: The onus of securing facilities for the operation of the flying boat service through Netherlands East Indies will rest on Qantas Empire Airways Limited; but(i) the Commonwealth shall be at liberty to arrange for the supply of any items of ground organisation included in the agreed schedule;
(ii) subject to paragraph 6(
e ), the Company shall be reimbursed by the Commonwealth Government any expenditure which is incurred with the previous approval of both Governments on items of the kind specified in sub-paragraph (a ) of this paragraph as falling within the responsibility of the two Governments; and(iii) with respect to charges for landing and housing imposed by local authorities the Company shall be reimbursed or shall pay to the Commonwealth Government, as the case may be, the amount by which such charges exceed or fall short of a standard rate of 30s. sterling per landing, provided however that in the event of a charge not being imposed for any landing the Company shall pay to the Commonwealth the amount of 30s. sterling in respect of such landing.
The Commonwealth Government agrees to reimburse Qantas Empire Airways Limited the amount of duty paid by the Company in Netherlands East Indies on fuel and oil used by aircraft whilst operating the service.
(
c )At Singapore: The Commonwealth Government shall be under no responsibility or liability whatever in respect of the provision of the necessary facilities at Singapore itself.
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Scheme, in which case, if the United Kingdom Government agrees, this despatch and your reply shall be regarded as constituting the agreement on the subject between the two Governments.
Yours sincerely,
S. M. BRUCE.
The Rt. Hon. Lord Stanley, M.C., M.P.,
Secretary of State for Dominion Affairs.
Copy of Cablegram received by the Prime Minister of the Commonwealth of Australia from the Secretary of State for Dominion Affairs, London, on the 23rd June, 1938.
His Majesty’s Government in the United Kingdom accept the terms of the despatch of the 22nd June, signed by the High Commissioner on your behalf, as recording the agreement between the two Governments on the subject of the participation of His Majesty’s Government in the Commonwealth of Australia in the Empire Air Mail Scheme.
SECOND SCHEDULE. Section 4.
Form of Agreement between Qantas Empire Airways Limited and the Commonwealth of Australia.
This Agreement made the day of One thousand nine hundred and thirty-eight between Qantas Empire Airways Limited (in the operative portion of this Agreement called “the Contractor”) of the one part and The Commonwealth of Australia (hereinafter called “the Commonwealth”) of the other part:
Whereas an Agreement at present subsists between Qantas Empire Airways Limited and the Commonwealth for the operation and maintenance of an Aeroplane Service for the carriage of mails passengers and goods between Brisbane in the State of Queensland and Singapore in the Straits Settlements in each direction upon the terms and conditions stated in that Agreement (which is hereinafter referred to as the “original Agreement”) and pursuant to such original Agreement such Aeroplane Service is to be operated and maintained until at least the ninth day of December One thousand nine hundred and thirty-nine:
And whereas the Government of the
United Kingdom has proposed a Scheme for an Imperial Network of Air Services
radiating from London, England to
And whereas the Commonwealth for its part has expressed its willingness to join in such Scheme, the following principles (among others) as between the Governments of the United Kingdom and the Commonwealth being concurred in:—
(
a ) Air Services contemplated by the Scheme shall provide for the transport of mails passengers and goods by means of aircraft of such type and operating with such frequency of schedule as shall enable transport of the mails passengers and goods to be effected at all times with regularity, efficiency and safety, but in no circumstances shall the frequency of schedule between Singapore and Sydney be less than thrice weekly in each direction;(
b ) There shall be contributed by the Commonwealth for the establishment operation and maintenance of the said Imperial Scheme of Air Services certain payments limited in amount as expressed hereunder in this Contract, but, excepting as to the financial payments required to be
Second Schedule—
made by the Commonwealth under paragraph (
h ) of this recital, it has been agreed that the balance of the monetary payments shall be made to a Contractor (as the Commonwealth’s operating Contractor for the section and route between Singapore and Sydney) and not to the United Kingdom Government, such section and route of the said Imperial Scheme of Air Services between Singapore and Sydney being hereafter referred to as the “Australian section”:(
c ) The Commonwealth is to have effective control and be responsible for the operation and maintenance of the Australian section of the Air Services, it being understood that, pursuant to the desire of the Government of the United Kingdom, aircraft operating on the remainder of the Imperial Scheme of Air Services may be brought through from Singapore on to the Australian section for the purposes of operating on the Australian section, and in exchange aircraft of the Contractor may be permitted to operate on the Imperial Air Network beyond Singapore;(
d ) The Government of the United Kingdom shall be responsible (whether or not it acts in collaboration with other Dominion Governments) for the establishment and operation of the remainder of the Imperial Air Network (i.e. other than the Australian section) and in particular shall be responsible for the establishment operation and maintenance of the England-Singapore Section of the England-India-Australia Service;(
e ) The England-India-Australia Section of the Imperial Air Network shall be operated and maintained for a period of fifteen years from the date of its commencement, provided however that either party shall be entitled to withdraw at any time from all participation in the Imperial Scheme and shall be freed from all liability relating thereto if the Scheme including the England-India-Australia portion thereof is found in the opinion of either party to be unsatisfactory in operation and incapable of adjustment acceptable to either party:’(
f ) The England-India-Australia Service shall in accordance with the desire of the Government of the United Kingdom be commenced operated and maintained by means of flying boats of the type known as the “Short” “C” class but the Commonwealth shall have the right to withdraw (distinct from the rights mentioned in paragraph (e ) above) from all participation in the Imperial Scheme including the England-India-Australia portion thereof if in the opinion of the Commonwealth Government the flying boat type of aircraft is unsatisfactory in performance over a reasonable period of time within the first two years of the operation of the Scheme and if the Scheme is found incapable of suitable adjustment to the satisfaction of the Commonwealth Government;(
g ) So far as the Australian section of the Imperial Scheme is concerned and as concerns the Commonwealth’s responsibility for the operation of the Air Service on that section the Commonwealth shall make its own arrangements with a Contractor for the operation and maintenance of the Service on that section, and that Contractor, so far as concerns the establishment operation and/or maintenance of that section, shall be under the effective control of the Commonwealth under those arrangements;(
h ) The Governments of the United Kingdom and the Commonwealth shall agree upon a schedule of works for ground facilities and organization (within the Commonwealth and between Darwin and Singapore) on such financial terms as may be arranged between such Governments, and such ground facilities and organization shall be made available to the Contractor upon certain terms;(
i ) The Contractor shall be reimbursed all sums of money which he or it may have paid in respect of Customs or other duties or taxes imposed by the Commonwealth on—(
a ) fuel and oil used by aircraft in flights on the Australian section of the Service; and(
b ) certain equipment imported into Australia for the purposes of the Service:
And whereas the parties hereto are prepared to enter into this Contract terminating the original Agreement and providing for the establishment operation and maintenance of an Air Service on the Australian section upon and subject to the conditions herein appearing:
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Now it is witnessed by and between the parties hereto as follows:—
1. This Agreement shall have no force or effect unless and until authorized or approved by the Parliament of the Commonwealth.
2. The Contractor shall not be taken to have accepted or to be bound by the recitals hereinbefore contained so far as they relate to arrangements made between the Commonwealth and the Government of the United Kingdom.
3. The original Agreement now subsisting for the operation of the Brisbane-Singapore Service shall in consideration of these presents be terminated as on and from the date fixed under condition 8 of the Conditions of Contract contained in the Schedule to this Agreement as the commencement of the period of operation of the Service and as from and by reason of such termination each party shall release the other from all their or its respective obligations under such original Agreement but without prejudice to any rights accrued or accruing in favour of either party up to the actual date of termination, and provided that either—
(
a ) an Air Service between Brisbane and Darwin shall be operated and maintained by the Contractor for the Commonwealth at a price and on conditions to be agreed for a period equal to the unexpired period of the original agreement, or for such longer period as may be agreed between the Commonwealth and the Contractor as a sufficient period to protect the Contractor against any loss of unamortized capital arising from such termination of the original Agreement prior to the date of its expiration; or(
b ) the Commonwealth will by some other means protect the Contractor against any such loss of unamortized capital so arising.
4. The Contractor shall establish operate and maintain an Air Service for the Commonwealth between Singapore in the Straits Settlements and Sydney in the State of New South Wales for the consideration and pursuant and subject to the terms conditions obligations definitions provisoes and all other matters and things contained specified or expressed in this Agreement or in the conditions specified in the Schedule hereunder written.
Schedule of Conditions hereinbefore referred to.
1.
Definitions for Purposes of this Contract. —In these Conditions—“Air mails” means postal articles (other than parcels) upon which an air mail fee is payable in addition to the ordinary rate of postage;
“Air Navigation Act” and “Air Navigation Regulations” respectively mean and include the
Air Navigation Act 1920–1936 and the Air Navigation Regulations there under with such amendments additions or modifications as are for the time being in force, and mean and include also any statutory modification thereof or substitution there for;“Civil Aviation Board” means the Civil Aviation Board for the time being as constituted under the Air Navigation Regulations of the Commonwealth or any regulations in substitution therefor for the time being in force;
“Commonwealth” means the Commonwealth of Australia;
“Connecting Aircraft” includes any form of transport or other means by which mails passengers or goods may be brought to the Air Service;
“Contract Trip” means a complete journey from Singapore to Sydney or from Sydney to Singapore required to be performed under and in accordance with the provisions of this Contract;
“Contract year” means a calendar year calculated for each contract year from a date corresponding to the date of commencement as specified in Condition 8 of these Conditions of Contract;
“Controller-General of Civil Aviation” means the Controller-General of Civil Aviation under the aforesaid Air Navigation Regulations or the officer for the time being (by whatever title known) performing the duties usually associated with the office of Controller-General;
“First Class Mails” means mail matter transmitted at the rates applicable to letters and postcards;
“Minister” means the Minister of State for Defence of the Commonwealth of Australia and includes any other Minister of State of the Commonwealth or any member of the Federal Executive Council for the time being acting for or on behalf of the said Minister of State for Defence and any Minister of State for the time being administering the Air Navigation Act and Regulations;
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“Landing Ground” includes any aerodrome or aircraft base or any place licensed under the Air Navigation Regulations or approved by the Minister for use by the particular type of aircraft then being used for the purposes of this Contract;
“Mails” means—
(
a ) All first-class mails originating in one and addressed to another of the participating countries and all first-class mails for and from His Majesty’s ships abroad, and(
b ) All air mails originating in one country and addressed to another country;“Non-Contract Trip” means a trip referred to in paragraph (
b ) of Condition 11;“Participating countries” means such countries as may from time to time be notified by the Minister by notice in writing to the Contractor as being countries participating in the Empire Air Mail Scheme:
“Postmaster-General” means the Postmaster-General of the Commonwealth of Australia and includes any other Minister of State of the Commonwealth or any member of the Federal Executive Council for the time being acting for or on behalf of the said Postmaster-General;
“Secretary, Department of Defence” means the Secretary for the time being of the Department of Defence of the Commonwealth of Australia, or the officer (by whatever title known) for the time being performing the duties usually associated with the office of Secretary, Department of Defence, so far as the Air Navigation Act and Regulations there under are concerned;
“Secretary of State for Air” includes any Minister of the Government of the United Kingdom who shall for the time being perform the duties associated with the present office of Secretary of State for Air;
“Stopping Place” means any place, area, aerodrome, aircraft base, locality or district—on sea or land—for the time being determined by the Minister to be a stopping place at or from which the Contractor shall alight and depart on each contract trip, (and also, where the context so requires, on each non-contract trip): Provided that the same shall be appropriate to the type of aircraft, and be licensed or approved by the Minister for use by the type of aircraft, employed in the Service pursuant to this Contract.
“the bond” means the bond executed in accordance with Condition 51 of these Conditions;
“the Contract” means this agreement;
“the Secretary, Civil Aviation Board” means the officer for the time being holding the office of Secretary, Civil Aviation Board, and includes any officer who is for the time being performing the duties of that office;
“the Service” or “the Air Service”, unless the contrary intention appears, means the Air Service between Sydney and Singapore to be carried out by the Contractor in accordance with these Conditions of Contract.
2.
3.
Provided that the Contractor may use some other type in isolated cases of emergency as contemplated by Condition 20 hereof, but in that event the Minister may direct that such amount as he specifies shall be withheld from the payment to be made to the Contractor under Condition 35 in respect of any contract trip on which any such other type is used.
4.
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period thereafter (not exceeding twelve months), serve a notice on the Contractor stating that flying boats as a type are unsatisfactory to the Commonwealth for purposes of operation of the Service, and it shall then be obligatory upon the Contractor, within such time (not being less than six months) as shall be stated by the Minister in the said notice, to provide, in substitution for the flying boat type, either—
(
a ) such other type and number of aircraft as are nominated by the Contractor and approved in writing by the Minister on behalf of the Commonwealth; or(
b ) in the event of the Contractor within three months of the aforesaid notice failing to nominate the type and number of aircraft approved as aforesaid by the Minister, such other type and number as are nominated by the Minister and the Secretary of State for Air of the United Kingdom within a further period of one month from the expiration of such three months period:
Provided
that, if the Contractor is unwilling to agree with the Commonwealth upon such
substitution in the manner above provided for, the Contractor may by notice to
be given at any time within six months of the date of such nomination by the
Minister and the Secretary of State for Air terminate this Contract without
either party being liable to the other for damages and compensation by reason
of such termination (but without prejudice to any rights accrued or accruing in
favour of either party up to the date of such termination) and this Contract
shall
5.
Provided that the Contractor shall have the right—if it so desires upon receiving notice from the Minister of such request—to terminate this contract by six months notice in writing if given within three months after service of the Minister’s aforesaid notice.
6.
7.
(
a ) Until otherwise determined by the Minister as provided hereunder the stopping places for the purpose of all contract trips shall be:—Singapore, Batavia, Sourabaya, Bima, Koepang, Darwin, Groote Eylandt, Karumba, Townsville, Gladstone, Brisbane, Sydney.(
b ) The Minister may at any time and from time to time increase or decrease the number of stopping places or substitute for any stopping place some other stopping place (suitable for the type of aircraft there employed) along or near the route of the Service, and every new or substituted stopping place shall be a stopping place for the purposes of the Contract in addition to or in lieu of other stopping places as the case may be;(
c ) The Contractor shall on each contract trip stop at each stopping place which is for the time being a stopping place within the meaning of the Contract:
Provided always that if, by reason of the exercise of the power vested in the Minister, any terminal point or stopping place or site used in connexion therewith permanently ceases to be a terminal point or stopping place, or any overnight stopping place ceases to be an overnight stopping place, the Commonwealth shall, unless the change has been effected at the request of the Contractor, indemnify the Contractor in respect of any loss sustained by the Contractor in respect of such equipment and facilities (if any) required for the proper handling and maintenance of the aircraft and engines employed on the Service as have been provided by the Contractor in respect of such point or place or site, and in respect of any passenger facilities provided by the Contractor at such point or place or site.
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Provided that the Company shall not be required to operate a frequency in excess of such three times weekly frequency until the Governments of the United Kingdom and the Commonwealth shall have agreed that an increase (as agreed from time to time) is necessary for the expeditious transport of all the mails.
(ii) A certificate in writing, signed by or on behalf of the Minister, that agreement as aforesaid between the Governments of the United Kingdom and the Commonwealth has been reached or made shall, for the purposes of this Condition, be conclusive evidence of the fact as stated and binding on the Contractor.
(iii) The Contractor shall notify the Commonwealth as early as practicable prior to the commencement of the Service of the trip frequency per week with which the Air Service shall be commenced.
(ii) At and from the commencement of operation of the Service the Contractor shall own, and shall have available and hold as aforesaid, subject to Condition 26, not less than six in number of aircraft, but reference to such minimum number shall not necessarily be taken to infer or mean that such number is at any time sufficient with which to operate the Service, according to the trip frequency for the time being required under this Contract:
Provided however that for purposes of this Contract any of such aircraft (but not more than one at any one time) which is in course of replacement or which may be undergoing repair or overhaul, shall, for such period only as may be determined by the Minister, be deemed to be available for use and held as aforesaid.
(iii) No engine shall be used for purposes of the Contract unless the type of such engine has been approved beforehand either by the Minister or by the Controller-General of Civil Aviation.
(iv) The provisions in this Condition shall not be taken to prejudice or affect in any way the remaining provisions of the Contract.
(i) The Time Table to be observed by the Contractor for performance of contract trips shall, at all times, be as approved by the Minister.
(ii) Prior to the date of commencement of the Contract the Minister shall approve the Time Table which shall be adhered to by the Contractor subject to the alterations permitted by these Conditions.
(iii) The Minister may at any time and from time to time by reasonable notice |require an alteration in the Time Table in any way.
(iv) The Time Table previously approved by the Minister and each and every alteration shall forthwith be notified in writing to the Contractor with notification of the date applicable in each case.
(v) Except as specifically provided in Condition 12 of these Conditions the Time Table for the time being as approved by the Minister shall be strictly observed and adhered to by the Contractor, and shall not, except as in these Conditions specifically provided for be departed from by the Contractor without the prior approval in writing of the Minister.
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(
(i) The Contractor shall—without being entitled to receive from the Commonwealth any payment in money or otherwise other than that provided by Condition 35 hereof—accept for transport and delivery to such stopping places such mails as the Postmaster-General desires, and the Conditions of this Contract applicable to mails on contract trips shall apply in like manner to any mails required by the Postmaster-General to be transported and delivered by means of such non-contract trips;
(ii) If the Minister so requires, the Time Table and Stopping Places to be applicable in respect of each service consisting of non-contract trips shall be notified by the Contractor to the Minister not less than twenty-four hours before the commencement of such service and in relation to mails the Contractor shall be liable
mutatis mutandis in respect of such non-contract trips as if they were contract trips to be performed under this Contract.
(ii) If the Contractor makes default in compliance with or observance of the provisions of the preceding paragraph (i) in respect of any contract trips, then, unless the Minister shall be satisfied that such default arose from some good reason and not from any lack of care or of good faith on the part of the Contractor, and without prejudice to other rights and remedies of the Commonwealth, the Minister may direct that, in respect of that trip, a proportional amount of the monthly payment made to the Contractor under Condition 35 (but not exceeding the amount payable in respect of that trip) shall be withheld.
(iii) Should the Contractor on account of delay attributable to its observance of the provisions of paragraph (i) of this Condition be unable to commence or continue the contract or non-contract trip at the time for departure according to the Time Table, then the Contractor shall not be deemed to have committed a breach of this Contract or be in any way prejudiced thereby provided that it does not depart from the Time Table more than the time reasonably attributable to such delay.
(ii) The Contractor, in addition, shall (except where the Postmaster-General otherwise directs) be fully responsible for the safe custody until delivery of the mails, at such terminal points or stopping places and shall indemnify and keep indemnified (except where the Postmaster-General otherwise directs) the Commonwealth or the Postmaster-General from all monetary loss sustained or suffered by the Commonwealth or the Postmaster-General by reason of any loss, damage or destruction of the mails.
(iii)
A statement in writing signed by or on behalf of the Postmaster-General
specifying the amount of such loss, damage or expense shall be
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(iv) The provisions of this Condition shall not be taken to limit or affect in any way the remaining provisions of the Contract.
(ii) In regard to the Contractor’s obligation for conveyance and carriage of mails passengers and goods, as hereinbefore mentioned, the Contractor must observe and comply with the following preferences and rules—
(
a ) Mails are to have first preference. Under no circumstances, and notwithstanding anything in these Conditions to the contrary, shall the Contractor refuse to take any mails which are available to be taken at any time up to the actual departure of the aircraft from the particular stopping place.(
b ) Through passengers (being passengers travelling to or from places outside the Commonwealth) shall (subject to the provisions of Condition 21) have second preference: Provided that the preference of Commonwealth officers under Condition 21 need not be accorded by the Contractor if all passenger accommodation properly to be made available has been previously booked for the particular trip, but in that event such Commonwealth officer shall not under any circumstances be refused accommodation on the immediately succeeding contract trip on which accommodation is available after mails only have been loaded.
(iii) In regard to the conveyance and carriage of passengers and/or goods, the Contractor’s arrangements, obligations and acts shall in every way (except as specifically provided for in the provisions of the Contract) be independent of the Commonwealth, and the Commonwealth shall not under any circumstances have any obligation or responsibility to the Contractor or to any third persons or parties whatsoever in respect of the carriage or transport of any passengers or any goods, the intent of these Conditions being that (except for its obligation to the Commonwealth to provide, operate and maintain the Service as herein provided for) the Contractor shall as regards and between itself and any third parties be solely responsible to and shall make its own arrangements with all or any third persons or parties as if the Commonwealth were not a party to this Contract.
(iv) The Contractor’s charges or prices for the conveyance of passengers and/or goods (other than passengers and goods conveyed to or from places outside the Australian section) shall be according to a scale to be approved at all times by the Minister.
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(ii) In the case of services by land aircraft the Contractor shall at its own cost accept and/or deliver the mails at the landing grounds at the terminal points and/or stopping places where the Contractor is required by or on behalf of the Postmaster-General to accept and/or deliver the mails.
(iii) In the case where the service involves the transfer of mails between flying boats and land aircraft operated by the Contractor as part of this Contract, the Contractor at its own expense shall transfer the mails and provide suitable and efficient facilities and personnel therefor.
(ii) Subject to paragraph (iv) of this Condition, and except as regards free carriage and subject to the indemnity hereinafter mentioned such authorized person shall be carried in every other respect on exactly the same terms, conditions and rules as are applicable to other passengers carried on the service: Provided that the Contractor shall be reimbursed the cost of meals and/or hotel and like accommodation paid by the Contractor in respect of such person.
(iii)
A statement in writing signed by or on behalf of the Secretary, Department of
Defence, or by or on behalf of the Controller-General of Civil Aviation, that
the person named to be carried is authorized as aforesaid shall be
(iv) The Commonwealth indemnifies the Contractor against all actions, proceedings, claims and demands against the Contractor in respect of any injury to any such authorized person carried free of charge pursuant to this condition, unless such injury was caused by the negligence or improper conduct of the Contractor or any pilot or other servant or person acting for on on behalf or in place of the Contractor.
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of this Contract) shall at all times—whether or not operating on the Australian section—be registered under the Air Navigation Regulations, and at no time shall any of such aircraft fly on any day on the Australian section for any of the purposes of the Contract unless—
(1) such Certificate of Registration (issued by the Commonwealth) is in full force and effect;
(2) a Certificate of Airworthiness of the aircraft under the Air Navigation Regulations issued by the Commonwealth is in full force and effect and all the conditions thereof are complied with;
(3) all directions from time to time issued by the Minister or by the Controller-General of Civil Aviation regarding the safety of the aircraft and the incorporation of safety apparatus, equipment and devices in the aircraft have been fully complied with; and
(ii) the original of each Certificate of Safety to be furnished as required by the Air Navigation Regulations shall at the time be carried in the aircraft to which the Certificate refers, and shall subsequently be forwarded at weekly intervals by the Contractor to the Secretary, Civil Aviation Board; the duplicate Certificate shall be retained by the Contractor.
(
(
(
(
Provided that the Minister may in respect of any particular case or cases waive this requirement either wholly or in part;
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(ii) Unless the Minister or the Controller-General of Civil Aviation otherwise expressly approves in writing in any particular case, no such pilot shall act as a ground engineer, or vice versa;
(iii) All pilots, navigators, wireless operators and ground engineers employed or engaged in any way by the Contractor in connexion with the carrying out of the Service must and shall be at all times natural-born British subjects, and in engaging such employees the Contractor shall give preference to Australians; all other persons employed engaged or used for any other purpose in connexion with the Service shall be British subjects, unless no qualified British subjects are available for the work concerned.
(iv) No pilot, navigator, wireless operator or ground engineer shall be employed engaged, act or otherwise be concerned directly or indirectly in or on the Service unless he has previously undertaken, in manner required by the Minister, to serve, if required by the Minister, as a member of the Royal Australian Air Force Reserve, and does so serve when called upon by the Commonwealth.
(
a ) Each of such Imperial aircraft shall be of the said “Short” “C” class type flying boat (including however such other type of aircraft as the Governments of the United Kingdom and the Commonwealth may have mutually agreed to substitute therefor on the England-India-Australia Air Service) or such other type as shall have been-approved beforehand by the Minister;(
b ) No exchange shall be effected or permitted unless—(i) The Certificate of Airworthiness and other documents of each Imperial aircraft are validly in force according to the laws of the country of its then registration;
(ii) Such Certificate of Airworthiness and other documents are approved beforehand by the Minister or the Controller-General of Civil Aviation;
(
c ) Subject to fulfilment of the foregoing requirements an exchange may be effected and the Imperial aircraft permitted to operate on the Australian section provided—(i) that the Certificate of Airworthiness and other documents of the particular Imperial aircraft remain validly in force during the period of its operation on the Australian section; and
(ii) that the approval of the Minister or the Controller-General of Civil Aviation to the Certificate of Airworthiness and other documents as aforesaid is not withdrawn.
(
d ) If at any time the said approval of the Minister or the Controller-General of Civil Aviation to the Certificate of Airworthiness or any other documents of the particular Imperial aircraft is withdrawn—(i) such Imperial aircraft shall not be used or permitted by the Contractor to be flown for the purpose of the carriage of passengers and or mails or for any of the purposes of the Contract;
(ii) the Contractor shall immediately on request by the Minister or the Controller-General of Civil Aviation replace such Imperial aircraft with another aircraft of a type previously approved by the Minister or the Controller-General of Civil Aviation. This requirement shall not be taken to affect or prejudice the applicability of the remaining Conditions of this Contract.
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(
e ) The number of the Contractor’s aircraft permitted to operate in exchange beyond Singapore shall not at any time exceed the number of Imperial aircraft for the time being approved and available for operation on the Australian section pursuant to the provisions of this Contract.(
f ) Each of such Imperial aircraft shall be deemed to be under the control of the Contractor for purposes of fulfilling the Contractor’s obligations under this Contract, and the Contractor shall obey, and each of such aircraft shall be operated and maintained according to, such orders and directions as to safety as are from time to time given by the Minister or the Controller-General of Civil Aviation.(
g ) The Contractor shall be bound to fulfil the provisionsmutatis mutandis of the Contract as if the Contractor’s aircraft had never been exchanged for the Imperial aircraft and in addition Condition 24 of these Conditions shall be as fully applicable in respect of such Imperial aircraft as if they were the Contractor’s aircraft.(
h ) The Contractor’s aircraft when operating beyond Singapore shall be entirely under the control of the United Kingdom Government to the end that the United Kingdom may exercise the same authority and control thereover for all and any purpose as if they were in fact Imperial aircraft.
Provided that, and notwithstanding the foregoing, the Commonwealth and its officers shall at all times have free and uninterrupted access to all aircraft and engines for the purpose of such inspection and inspections as the Minister and/or the Controller-General of Civil Aviation may desire or direct.
(ii) Subject to the basis for payment therefor having been previously mutually agreed upon, the Minister on behalf of the Commonwealth may from time to time require of the Contractor—in respect of new aircraft which the Contractor from time to time during the currency of the Contract may require for the purposes of this Contract—that such new aircraft shall, either wholly or partly as specified by the Minister, be constructed within the Commonwealth. If, pursuant to such request initiated by the Commonwealth, the Contractor is put to extra financial cost in complying with such requirement, the Commonwealth will pay the Contractor an amount to meet any such extra cost (including any loss on account of delay) calculated on the basis previously mutually agreed upon.
(
a ) assign or underlet, or otherwise part with the Contract or any part thereof; or(
b ) assign or otherwise part with as against the Commonwealth all or any part of the moneys payable or to become payable under the Contract, otherwise than in the ordinary course of business,
(ii) Any such assignment, underletting or otherwise parting with the Contract without such consent as aforesaid, or any agreement, contract or covenant for the same, or any irrevocable power of attorney, or any power of attorney coupled with an interest to receive any moneys payable under the Contract or any part thereof respectively, shall have no force or effect as against the Commonwealth.
(
a ) is unable; or
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(
b ) refuses or threatens to refuse; or(
c ) is likely to default in his obligation—
to commence or complete any contract trip as and in the manner required by any and all of the provisions of the Contract, then the Minister may make such separate arrangements, independently of the Contractor, as the Minister considers necessary or desirable to carry the mails intended for the particular contract trip in respect of which default is anticipated by the Minister.
(ii) The exercise of such power shall not be deemed a breach of contract by the Commonwealth.
(iii) The exercise of such power shall at all times be subject also as follows:—
(
a ) The Contractor shall not be entitled to any compensation or damages whatsoever in respect of such exercise.(
b ) If default is actually made by the Contractor in commencing and completing the contract trip according to time-table unless such default arose from some good reason and not from any lack of care or of good faith on the part of the Contractor, the Contractor shall be liable for such expense, loss or damage as the Commonwealth has incurred, suffered or lost by reason of the exercise of the power and/or the failure of the Contractor.(
c ) If default is not actually made the Contractor shall be deemed to have performed the contract in respect of such contract trip.
(ii) The Minister, in the event of the Contractor failing to observe or perform any requirement arising under the Contract may, in lieu of exercising his rights under paragraph (i) or (iii) of this Condition, withhold from any payment any moneys or subsidy due or to become due to the Contractor, and retain, as and for liquidated damages, such amount, not exceeding One hundred pounds (£100), as may be determined by the Minister in respect of each such failure (or if the failure is a continuing one, such amount as may be fixed by the Minister in respect of each day the failure may continue), provided nevertheless that the fact that the Minister in any case has withheld and retained any amount from the moneys or subsidy due as aforesaid, in lieu of exercising his rights under paragraph (i) or (iii) of this Condition, shall not prevent the Minister, in the event of any subsequent failure of a similar or other nature, from exercising his said rights under paragraph (i) or (iii) of this Condition.
(iii) If the Contractor shall assign or underlet or otherwise part with the Contract contrary to the stipulation hereinbefore contained, or if any petition shall be successfully presented in any Court of competent jurisdiction for the winding-up of the Contractor, either compulsorily or under the supervision of the Court, or if the Contractor shall go into voluntary liquidation other than for the purpose of reconstruction, or if the Contractor shall take the benefit of or bring its estate within the operation of any Act passed or to be passed for the winding-up of companies or shall make any assignment or conveyance of its property for the benefit of any of its creditors generally, then and in any of the said cases the Minister, on behalf of the Commonwealth, may (without prejudice to any other remedy or power, or to any right of action or otherwise of the Commonwealth in respect of any failure or breach by the Contractor of the conditions, agreements, stipulations, or provisions of this Agreement)—
(
a ) by notice to the Contractor, determine the Contract and/or recover such loss or damage as may be suffered or incurred by the Commonwealth by reason of the failure or breach, and, or(
b ) take action on the bond.
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Provided that in respect of each case where such trip is actually completed, if the Minister is satisfied that failure arose from some good reason and not from any lack of care or of good faith on the part of the Contractor the Minister shall direct payment of the full subsidy for such particular trip.
(ii) The Commonwealth will also pay to the Contractor in respect of Australian mails carried a minimum annual payment of £32,000 sterling, and if in any year the weight of Australian mails carried by the Contractor’ exceeds 40,000 pounds, the amount of the subsidy will be increased by 16s. sterling for each pound of such mail carried by the Contractor in excess of 40,000 pounds, but so that the maximum payment under this paragraph shall not exceed £52,000 sterling per annum.
(iii) Interim payments under paragraphs (i) and (ii) of this Condition shall be made monthly to the Contractor during each contract year at or so soon as practicable after the end of each month.
(iv) Each monthly payment shall, subject as aforesaid, be of such amount as to ensure that the Contractor receives, in respect of so much of the contract year as has elapsed at the end of the month in respect of which the payment is made, an average monthly payment calculated as follows:—£6,000 sterling plus 24s. sterling for each pound weight by which the average monthly load carried during that period exceeds 3333⅓ pounds weight:
Provided that the total of the monthly payments made shall not as at the end of any month in any contract year be such as to average more than £8,500 sterling per month.
(v) For the purpose of assessing the weight of Australian mails carried in order to ascertain the amounts payable under this Condition—
(
a ) the term “Australian mails” shall include only mails originating within the Commonwealth or its territories and required to be carried by the Contractor pursuant to this Contract;(
b ) regard shall be had only to such mails as are carried on the trips (whether contract or non-contract) in the direction Sydney to Singapore;(
c ) the weight of Australian mails carried on such trips shall for the purpose of calculation be taken in respect of the stage Darwin-Koepang unless some other stage of the route is by mutual agreement substituted therefor.
(vi) Any reference in this Condition to “sterling” means sterling London, England, and for the purposes of calculation of any monthly payment shall be according to the telegraphic transfer rate of exchange on London (as advised by the Commonwealth Bank) as on the last day of the month for which the payment is to be made, but there shall not be added any moneys on account of transfer rate, whether telegraphic demand or otherwise.
(vii) The making of payments under this Condition shall be subject to Conditions 3, 12, 32 and 33, but any amounts withheld under these Conditions shall be included for the purpose of determining the total amount paid by the Commonwealth to the Contractor—
(
a ) under paragraph (i) or paragraph (ii) of this Condition (as the case may be) or under both of those paragraphs; and
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(
b ) by way of subsidy and postal contributions for the purposes of the Empire Air Mail Scheme,
as if such amounts had actually been paid by the Commonwealth to the Contractor and equivalent amounts paid by the Contractor to the Commonwealth as and for liquidated damages.
(ii) The Contractor shall also keep separate and distinct detailed cost accounts of all constructions and repairs carried out in his workshops which were directly or indirectly necessitated by the carrying out of the Service, such cost accounts to show separately, as far as practicable, the amounts charged for labour and material, and overhead and other charges, and to be supported by vouchers, time-sheets, stores requisitions and other relevant documents.
(iii) The Contractor shall furnish to the Minister as frequently as issued, and at least yearly, a copy of its balance-sheet and profit and loss account duly certified by the Contractor’s auditors. Whenever the balance-sheet and profit and loss account include transactions other than transactions affecting the Service, all transactions affecting the Service shall be shown separately, and if for the purpose of preparing the said balance-sheet and profit and loss account it is necessary to allocate to the Service a proportion of expenses which are jointly chargeable to the Service and other sections of the Contractor’s business, the Contractor shall furnish to the Minister with the said balance-sheet and profit and loss account, a statement showing in itemized detail the expenses so allocated, and the basis of apportionment of each item among the various branches or departments of the Contractor’s business.
(iv) All books of account and other records kept by the Contractor for the purposes of this Contract shall at all times and from time to time be available for inspection by any person duly authorized by the Minister.
(v) The Contractor shall as soon as practicable after the end of each calendar month furnish to the Minister a statement showing in detail the gross receipts and earnings of the Contractor during the previous calendar month in respect of the Service.
(vi) The Contractor shall from time to time as and when required by the Minister furnish the Minister with such financial or other information as to the operation and maintenance of the Service as the Minister may require.
(ii) The Commonwealth shall not disclose to any third parties any information obtained from the Contractor the disclosure of which would be materially prejudicial to the Contractor’s interests.
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joy-riding an aircraft used for or allocated to the purposes of this Contract. “Joy-riding” for purposes of this Condition shall mean a flight or trip of short duration, beginning and ending in the same place or locality and undertaken for remuneration or reward.
(ii) Under no circumstances shall any legal proceedings against the Commonwealth or its instrumentalities be brought, commenced, instituted or prosecuted outside the Commonwealth of Australia (except by way of appeal from the High Court of Australia) by the Contractor in respect of any act, matter or thing, whatsoever arising under or incidental to this Contract.
(ii) The Contractor (both in respect of Imperial aircraft and its own aircraft) shall, so far as the Commonwealth is concerned, have the right to use free from all charges the ground facilities and organization provided by the Commonwealth in pursuance of the last preceding paragraph, and shall be reimbursed any charges actually paid by the Contractor for the use of such ground facilities and organization at places within Australia.
(iii) For the purposes of paragraphs (i) and (ii) of this condition the term “ground facilities” means aerodromes, landing areas with jetties and slipways, motor control boats equipped with searchlight apparatus, auxiliary launches, mooring buoys for aircraft and such facilities as may be requisite for Customs and Immigration Authorities, but does not include the hangar erected by the Commonwealth at Rose Bay, Sydney, nor the use of any of the said facilities for the purposes mentioned in paragraph (v) of this Condition.
(iv) The Contractor shall pay the charges imposed by the local authorities for housing and landing in Netherlands East Indies and shall be reimbursed or shall pay to the Commonwealth, as the case may be, the amount by which such charges exceed or fall short of a standard rate of 30s. sterling per landing. In the event of a charge not being imposed for any landing the Contractor shall pay the Commonwealth the amount of 30s. sterling in respect of such landing.
(v) The Contractor at its own expense shall be responsible for the supply provision and maintenance at all times of all suitable ground facilities, equipment and personnel required—
(
a ) for the proper handling and maintenance of the aircraft and engines employed on the service;(
b ) for dealing at all terminal and stopping places with passengers and freight: and(
c ) for loading unloading and transferring mails:
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Provided, however, that the Commonwealth shall make available to the Contractor the free use and occupation of the land sites or areas necessary—within the limits of Australia only—for the provision, at terminal and stopping places regularly used for the time being for the purposes of the service under this Contract, of the ground facilities and equipment required for the proper handling and maintenance of the aircraft and engines employed on the service.
(vi) The Contractor shall be allowed to use the hangar erected by the Common wealth at Rose Bay, Sydney, free of charge but subject to the condition that the Contractor shall pay all charges for electricity used at the hangar, and shall pay at excess water rates for water used at the hangar.
(vii) The Contractor shall be allowed the use and occupation of the workshop annex erected by the Commonwealth at Rose Bay and of any other buildings (or portions thereof) erected by the Commonwealth at Rose Bay or at any other place in Australia which are on the route and available for use by the Contractor, subject to payment of such rental and charges as may be agreed upon, and the payment of all charges for electricity used at the annex, and to payment at excess water rates for water used at the annex.
(viii) The Contractor shall be allowed to use any facilities provided by the Commonwealth and available for use by the Contractor (in addition to those hereinbefore in this Condition referred to.) upon payment of such charges as may be agreed upon.
(ix) Nothing in this Condition shall prevent the Contractor providing at its own expense such additional facilities as the Contractor desires, provided that the Contractor does not interfere with or damage any facilities provided by the Commonwealth.
(ii) In this Condition “equipment” means aircraft, aircraft parts and spares; aircraft engines, aircraft engine parts and spares; aircraft and engine instruments and parts and spares for such instruments; wireless sets specially for use in aircraft, and spares for such sets; and includes technical and workshop equipment of a specialized nature (i.e., not commonly used in other trades) required for the aircraft, the engines, the instruments or the workshops of the Contractor.
(iii) The Commonwealth will reimburse the Contractor the amounts of duties paid by the Contractor in Netherlands East Indies on fuel and oil used by the Contractor’s aircraft while operating the service.
(ii) The Contractor also agrees that in the circumstances above set out such of the Contractor’s aircraft as may be operating beyond Singapore in exchange for Imperial aircraft or otherwise shall be at the like disposal of His Majesty’s Government in the United Kingdom.
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purchase all or any hangars, workshops or buildings (if any) erected by the Contractor on or along the route of the Service pursuant to any agreement with the Commonwealth, together with all or any hangars, workshops, or buildings (if any) erected by the Contractor on or along the route of the Service for purposes of the Service.
(ii) In the event of the Commonwealth exercising its option of purchasing all or any of the said hangars, workshops and/or buildings the purchase price to be paid and calculated on the basis aforesaid shall in default of agreement between the parties be determined by arbitration of two arbitrators, one to be appointed by each party, under the laws relating to arbitration which are in force in the State of New South Wales at the time of execution of this Contract, and, in default of agreement between such arbitrators, by a single umpire to be mutually appointed by and between such arbitrators.
(iii) In the event of the Commonwealth not exercising its option of purchasing all or any of the hangars, workshops, and/or buildings, of the Contractor provided for under paragraph (i) of this Condition, the Contractor may within a period of three calendar months from the date of determination of this Agreement take down and remove any hangars, workshops and/or buildings or other erections affixed, constructed or erected by the Contractor on or to any land made available to the Contractor by the Commonwealth for the purposes of this Contract, but the Contractor shall leave such lands leveled off and in a clean and tidy condition to the satisfaction of the Minister.
2 Pilots,
1 Wireless Operator,
1 Navigator:
Provided that one member may act in the dual capacity of Pilot and Navigator,
(ii) The Minister may from time to time require the foregoing requirements as to personnel to be varied if circumstances in his opinion warrant such variation.
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