Darwin Dilli Air Service. My telegram 4th July. [1] Following is
text of draft note to be addressed to Portuguese Government.

Begins.

At the instance of His Majesty's Government in the Commonwealth of
Australia, I have the honour to propose that an agreement be
concluded between the Government of Portugal and the Government of
the Commonwealth of Australia for the establishment of an air
service between Darwin in the Commonwealth of Australia and Dilli
in the Territory of Portuguese Timor under the following
conditions:-

(1) That the Government of Portugal will accord to an Australian
air navigation undertaking nominated by the Government of the
Commonwealth of Australia authorisation for the operation in
Portuguese territory of a regular commercial air service from
Darwin to Dilli and vice versa.

(2) That the Portuguese Government shall not during the currency
of this Agreement accord authorisations to any other non-
Portuguese air navigation undertaking for the operation in
Portuguese Timor of any air navigation line.

(3) The Government of the Commonwealth of Australia for its part
declares that it is prepared to accord during the currency of this
Agreement reciprocal authorisation to a Portuguese air navigation
undertaking nominated by the Government of Portugal for the
operation of a regular commercial air service from Dilli to Darwin
and vice versa.

(4) The authorisation referred to in paragraphs (1) and (3) hereof
shall form the subject of necessary technical arrangements to be
made between the competent aeronautical administrations of the
Governments of Portugal and of the Commonwealth of Australia
respectively.

(5) The air services established in pursuance of paragraphs (1)
and (3) hereof shall be entitled to provide for the carriage of
mails, passengers and freight and neither Government shall place
any unreasonable restrictions upon the carriage of such mails
passengers or freight by the undertaking authorised by the other.

(6) The air navigation undertaking nominated by the Government of
the Commonwealth of Australia to operate the services established
in pursuance of paragraph (1) shall operate the same with a
frequency of not less than one trip in each direction per
fortnight except when it shall be prevented from so doing by
circumstances beyond its control.

(7) The Government of Portugal shall [2] make full and proper
provision for the necessary ground organisation, aerodromes,
installations and technical services on the Portuguese portion of
the route of the air line required by the Australian
concessionnaire undertaking and shall [3] take the necessary
measures to ensure the use [4] by such concessionnaire undertaking
of such services. The Government of the Commonwealth of Australia
for its part is prepared to take the necessary measures to ensure
the use of [5] the ground organisation, aerodromes, installations
and technical services at Darwin by the Portuguese undertaking
nominated under paragraph (3) hereof.

(8) Each Government reserves the right to revoke nominations of
air navigation undertakings made by it and to substitute other
national undertakings. In such case the authorisation accorded to
the undertaking superseded will lose its validity and the new
undertaking shall be accorded without delay a similar
authorisation. The undertaking superseded by one of the
contracting Governments shall not be entitled by reason of that
fact to make any claim against the other Government.

(9) The Government of the Commonwealth of Australia agrees that
its right to operate the service shall lapse if the same shall not
have been in fact established within one year from the date upon
which the necessary ground organisations and technical services
and facilities shall be available in Timor. The said right shall
also lapse if the said service shall be subsequently discontinued
for any cause other than a cause beyond the control of the
concessionnaire undertaking.

(10) The Agreement shall remain in force for a period of ten years
from the conclusion thereof and thereafter until the expiration of
twelve months from the giving of notice by either Government to
the other of its intention to terminate the same.

I should be glad to be informed at an early date whether the
abovementioned conditions meet with the approval of the Portuguese
Government. If this should be the case, I suggest that this note,
together with Your Excellency's reply, shall constitute the
Agreement between both Governments and that the period of ten
years referred to in paragraph (10) hereof shall run from the date
of Your Excellency's reply.

Ends. Paragraph (2) has been inserted to cover the grant of
exclusive rights for the service. With regard to paragraph (9), if
Portuguese authorities press for shorter period than one year for
inauguration of service His Majesty's Government in the
Commonwealth of Australia is agreeable to reduce period to six
months but it is requested that longer period be obtained if
possible. [6]