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this Agreement are vested in nationals of the other contracting party, such contracting party may withhold or revoke the rights conferred under this Agreement for such airline to operate air services specified in the Annex. For the purpose of this Article nationals of the United Kingdom and nationals of Australia shall be considered to be nationals of New Zealand. (2) Each contracting party reserves the right to withhold or revoke operating permission granted under this Agreement to a designated airline of the other contracting party in case of failure by such airline to comply with the laws and regulations of the first contracting party as referred to in Article VII, or otherwise to fulfill the conditions under which operating permission is granted in accordance with this Agreement. Article IX If either of the contracting parties considers it desirable to modify any provision or provisions of this Agreement or its Annex it shall notify the other contracting party of the desired modification and such modification may be made by direct agreement between the aeronautical authorities of both contracting parties ; such agreement to be confirmed by exchange of notes. Article X (1) If any dispute arises between the contracting parties relating to the interpretation or application of the present Agreement, the contracting parties shall in the first place endeavour to settle it by negotiation between themselves. (2) If the contracting parties fail to reach a settlement by negotiation, (a) They may agree to refer the dispute for decision to an arbitral tribunal or to some other person or body appointed by agreement between them; or (b) If they do not so agree or if, having agreed to refer the dispute to an arbitral tribunal, they cannot reach agreement as to its composition, either contracting party may submit the dispute for decision to any tribunal competent to decide it which may hereafter be established within the International Civil Aviation Organisation, or, if there is no such tribunal, to the Council of the said Organisation, or, if the Council of the said Organisation decline to consider such a dispute or is not empowered to do so, to the International Court of Justice.