MEMORANDUM OF UNDERSTANDING BETWEEN THE MINISTRY OF DEFENCE OF THE REPUBLIC OF LATVIA, THE MINISTRY OF DEFENCE OF THE REPUBLIC OF ESTONIA AND THE MINISTRY OF NATIONAL DEFENCE OF THE REPUBLIC OF LITHUANIA CONCERNING A COMMON ANALYSIS OF THE OPTIONS OF AIR POLICING IN THE BALTIC STATES AFTER 2018

Acknowledging the importance of air policing in the airspaces of the Republics of Estonia, Latvia and Lithuania, in the following referred to as the Baltic states;

Recalling the Agreement Between the Ministry of Defence of the Republic of Latvia, the Ministry of Defence of the Republic of Estonia and the Ministry of National Defence of the Republic of Lithuania on Co-operation in the Fields of Defence and Military Relations, signed in Jaunmokas on 30th of May 2008;

Referring to the Political Guidance for conducting a common Baltic states' analysis for air policing in the post 2018 period, issued by the Baltic Ministerial Committee on 30^th of May 2008;

Reaffirming the need to conduct a common analysis of options for air policing in the Baltic states after 2018 at the latest by January 1, 2010;

Acknowledging the importance of the operational analysis to evaluate the operational effectiveness of the various air policing options

The Ministry of Defence of the Republic of Latvia, the Ministry of Defence of the Republic of Estonia and the Ministry of National Defence of the Republic of Lithuania, in the following referred to as the Participants,

Have reached the following understanding:

Section 1
PURPOSE AND SCOPE

1. The purpose of this Memorandum of Understanding is to set out the principles, procedures and responsibilities between the Participants for conducting a common analysis of the options of air policing in the Baltic states after 2018.

2. This Memorandum of Understanding is intended to conform to national legislation and international law and is not intended to conflict with existing bilateral or multilateral international agreements of the Participants. Should such a conflict arise, the Participants will notify each other and the national legislation or international agreement will prevail.

Section 2
MANAGEMENT

1 The common analysis of options for air policing in the Baltic states after 2018 is managed by the Participants and/or their authorized bodies.

2. All decisions on the content and conduct of the common analysis will be consensus based.

Section 3
RESPONSIBILITIES

1. The Ministry of Defence of the Republic of Latvia and the Ministry of National Defence of the Republic of Lithuania agree that the Ministry of Defence of the Republic of Estonia acts on their behalf in concluding a contract for operational and financial analysis of the options for air policing in the Baltic states after 2018 with the selected contractor, in the following referred to as the Contract, and in implementing and supervising the Contract, including performing any acts or formalities necessary.

2. The Contract will be concluded in accordance with the legislation of the Republic of Estonia.

3. The Ministry of Defence of the Republic of Estonia will present the complete contractual terms and conditions to the Baltic Ministerial Committee for approval prior to signing the Contract.

Section 4
COOPERATION WITH THE INTERNATIONAL CENTRE FOR DEFENCE STUDIES

1. The Ministry of Defence of the Republic of Latvia and the Ministry of National Defence of the Republic of Lithuania agree that the Ministry of Defence of the Republic of Estonia concludes an arrangement with the International Centre for Defence Studies in Estonia concerning co-operation in conducting a common analysis of options for air policing in the Baltic states after 2018, in the following referred to as the Arrangement.

2. The Ministry of Defence of the Republic of Estonia will present the complete contractual terms and conditions to the Baltic Ministerial Committee for approval prior to signing the Arrangement.

Section 5
FINANCIAL OBLIGATIONS

1. The Participants will share all costs related to the Contract and the Arrangement in equal parts (1/3 each). The maximum amount of payments will not exceed 150 000 EUR for each of the Participants.

2. Every Participant will pay its share directly to the contractor and to the International Centre for Defence Studies.

Section 6
SETTLEMENT OF DISPUTES

Any dispute regarding the interpretation or application of this Memorandum of Understanding will be resolved by consultation between the Participants concerned and will not be referred to any third party for settlement.

Section 7
FINAL PROVISIONS

1. This Memorandum of Understanding will come into effect on the date of its last signature.

2. This Memorandum of Understanding will be terminated upon withdrawal by one of the Participants with prior notice in writing at least six months in advance or by unanimous decision of the Participants.

3. This Memorandum of Understanding may be amended by the Participants at any time by mutual consent. Such amendments will be done in writing.

Signed in 3 (three) original copies in English language.