Arrangement between the Latvian National Armed Forces and the Swedish Armed Forces on the provision of a Saab 340 Open Skies observation aircraft (OS-100) for use within the context of the Treaty on Open Skies

INTRODUCTION

The Latvian National Armed Forces and the Swedish Armed Forces, together referred to as the Parties;

considering that the Republic of Latvia and the Kingdom of Sweden are Participants of the Treaty on Open Skies signed on 24 March 1992;

desiring to co-operate with regard to observation and training flights as well as air transport within the context of the Treaty on Open Skies;

have reached the following understandings:

Section 1

PURPOSE

This arrangement covers the provision by the Swedish Armed Forces of a Saab 340 Open Skies observation aircraft (OS-100) for the use of the Latvian National Armed Forces within the context of the Treaty on Open Skies.

Section 2

DEFINITIONS

For the purposes of this arrangement:

(2.1) "OS-100" means the aircraft to be employed as an observation aircraft being a Swedish Saab 340 equipped with sensors, and certified in accordance with the provisions of the Treaty on Open Skies;

(2.2) "Open Skies activity" means any flight related activity in support of fulfilling Republic of Latvia Open Skies entitlements and Open Skies obligations;

(2.3) "FTK/OS" means the Air Force Tactical Command/Open Skies of the Swedish Armed Forces, tasked with the conduct of Swedish Open Skies-activities;

(2.4) "OSCC" means the Open Skies Consultative Commission, established by States Parties to promote the objectives and facilitate the implementation of the provisions of the Treaty on Open Skies;

(2.5) "OSCC Decision 1" means the basis for payment for POL (petrol, oil and lubricants), food, accommodation, film and film-processing costs approved by States Parties to the Treaty on Open Skies;

(2.6) The "crew" means the Swedish personnel operating OS-100;

(2.7) The "mission team" means the Latvian National Armed Forces personnel in charge of the Republic of Latvia Open Skies-activity.

Section 3

PROCEDURES FOR OPEN SKIES ACTIVITIES

(3.1) Open Skies flights will be conducted in accordance with the Treaty on Open Skies including relevant OSCC decisions and applicable national and international regulations and procedures.

(3.2) The mission team will be trained and qualified for this duty in accordance with the Standard Operating Procedure for OS-100 (SOP OS-100) as stipulated by the Swedish Armed Forces, FTK/OS.

(3.3) The Latvian National Armed Forces will be responsible for providing to the OS-100 captain all required documents, including, but not limited to, passports and visas, vaccination records, for Latvian National Armed Forces personnel. FTK/OS may check such documentation.

(3.4) The captain of OS-100 will be responsible for all matters relating to the technical flight and the safety of the aircraft and its passengers. Latvian National Armed Forces Chief Flight Representative (mission chief) will be responsible for the conduct of Open Skies-activities during the mission.

Section 4

BOOKING PROCEDURES

(4.1) Latvian National Armed Forces and the Swedish Armed Forces will meet at a mutually arranged time during the 4^th quarter of the year to discuss the programme for the following year. The prospective Schedule of Flights for the year 2005 is laid down in Annex A.

(4.2) A jointly approved Open Skies activity will be confirmed in writing by FTK/OS at an appropriate time before the activity takes place.

(4.3) Latvian National Armed Forces project officer for each activity will meet with the Swedish flight crew an appropriate time before the activity, to co-ordinate mission requirements.

(4.4) Quota flights have a higher priority than training flights or bilateral observation flights. A booked training-flight or bilateral observation flight may be cancelled if another State Party books OS-100 for a quota flight during the same period of time.

(4.5) If a training flight or bilateral observation flight is cancelled in accordance with para 4.4 above the Swedish Armed Forces will not be held liable for any costs or inconvenience that may occur to the Latvian National Armed Forces.

Section 5

TRANSPORT COSTS

(5.1.) Transport cost for OS-100 will be calculated from and to Malmen Airbase, Sweden, on the basis of hours flown at the stated rate per flying hour of OS-100 and on actual operating cost per flight.

(5.2.) The rate in Euro will be set the first day of each rental occasion. The rate per flying hour will be decided on the basis of the average material and maintenance costs. The rate will also include the costs of the Swedish Armed Forces personnel required for the operation of the aircraft. The rate per flying hour for year 2005 is 18800 SEK.

(5.3.) The Swedish Armed Forces may, after consultation with insure the OS-100, the equipment and the Open Skies-flights for any damage caused. The costs for such insurance will be part of the rate per flying hour.

(5.4.) An invoice will be sent by FTK/OS on behalf of the Swedish Armed Forces to the Latvian National Armed Forces to be settled.

(5.5.) Latvian National Armed Forces will be responsible for settling all costs that are raised under OSCC Decision 1.

Section 6

ADDITIONAL COSTS

6.1. Latvian National Armed Forces will be responsible for food and accommodation charges for all members of the crew, the mission team and any other passengers nominated by the Latvian National Armed Forces.

6.2. Costs for passengers (in excess of crew members) carried on behalf of the Swedish Armed Forces will be borne by FTK/OS.

6.3. Costs incurred during planned stopovers or diversions, including accommodation costs, landing/navigation fees, ground handling, fuel and meteorological/flight planning services will be borne by Latvian National Armed Forces.

6.4. Costs for Latvian National Armed Forces - Swedish Armed Forces bilateral activities will be borne jointly and proportionately as decided by the Parties.

Section 7

DISPUTES

Disputes regarding the implementation or interpretation of this arrangement will be settled by consultation between the Parties at the lowest possible level and will not be referred to any third party or tribunal.

Section 8

AMENDMENTS

This arrangement may be amended in writing, as mutually approved by the Parties.

Section 9

EFFECTIVE DATE AND DURATION

(9.1) This arrangement will be effective from the date of the last signature and will be valid for an unlimited period of time.

(9.2) This arrangement may be terminated at any time by written mutual consent.

(9.3) This arrangement may be terminated by either Party on giving six months notice of termination in writing to the other.

(9.4) This arrangement will be terminated if OS-100 or its sensors are permanently decommissioned.

Signed in two originals in the English language.

Annex A

to ARRANGEMENT between the Latvian National Armed Forces and the

Swedish Armed Forces on Co-operation in the Field of the Treaty on Open Skies

Schedule of Flights

1. Observation flights (quota flights)

2. Bilateral observation flights (with reference to Annex L, Section III, para 3 of the Treaty on Open Skies)

3. Training flights (in excess of bilateral observation flights)

4. Transportation