bring about this coordination shall be agreed upon by the appointedauthorities of both Governments, respecting always the sovereignty of the Republic of Panama over all its air spade.
The Republic of Panama agrees that, for security reasons, at
the request of the United States Forces it shall restrict overflights of certain of the defense-sites.
(8) The Joint Committee may agree on rules and procedures that
may be necessary to implement this Article.
ARTICLE XVI
Taxation
(1) By virtue of this Agreement, the United States Forces are exempt from payment in the Republic of Panama of all taxes, fees or
*other charges on their activities or property, including those imposed through contractors or subcontractors.
(2) Members of the Forces or the civilian componept, and
dependents, shall be exempt from any taxes, fees, or other charges on income received as a result of their work for the United States Forces or for any of the service facilities referred to in Articles XI or XVIII of this Agreement. Similarly, as is provided by Panamanian law, they shall be exempt from payment of taxes, fees or other charges on income derived from sources outside the Republic of Panama.
(3) Members of the Forces or the civilian component, and dependents, shall be exempt from taxes, fees or other charges on gifts or inheritance or on personal property, the presence of. which within the territory of the Republic of Panama is due solely to the stay therein of such persons on account of their or their sponsor's work with the United States Forces.

TIAS 10032