Laws of the People's Republic of China

    Article 1  These Provisions are formulated for the purpose of defining the
civil liability that domestic air carriers shall bear for the bodily injury of
passengers.

    Article 2  These Provisions shall apply to the compensation for the bodily
injury of passengers that occur in domestic air passenger transportation.

    The term "domestic air passenger transportation" referred to in the
preceding paragraph denotes any air passenger transportation in which,
according to the contract of carriage, the place of departure, the agreed
stops, and the destination are all within the territory of the People's
Republic of China.

    Article 3  The carriers shall be liable for compensation for death and
injury sustained by passengers on board an aircraft or in the course of
embarkation or disembarkation.

    Article 4  The carriers shall not be liable for compensation provided they
can prove that death or injury of passengers is caused by force majeure or by
the passengers' own health conditions.

    Article 5  The carriers' liability to pay compensation may be reduced or
exempted provided they can prove that the death or injury of passengers is
caused by the negligence or wilful misconducts on the part of the passengers
themselves.

    Article 6  The maximum amount of compensation shall be 20,000 Renminbi
yuan for each individual passenger, for which the carriers are liable for
compensation as under these Provisions.

    Article 7  Passengers may at their own discretion to cover with an
insurance company an insurance against accidental bodily injury in air
transportation. The payment of the insurance indemnity, however, shall not
exempt or reduce the amount of compensation that the carriers shall be liable
for paying.

    Article 8  Compensation paid to foreigners, overseas Chinese, compatriots
from Hong Kong and Macao, and compatriots from Taiwan may be converted into
the currency of the country or region concerned and the rate of exchange shall
be decided as per the listed rate of exchange officially published by the
state administrative department for control of foreign exchange of the
People's Republic of China on the day on which the compensation is paid.

    Article 9  In the event that a dispute with respect to the compensation
for injury arises between the passengers or their heir and the carrier, they
may file a suit with the people's court.

    Article 10  The Civil Aviation Administration of China shall be
responsible for the interpretation of these Provisions.

    Article 11  These Provisions shall become effective as of May 1, 1989
and the Regulations Concerning Compulsory Insurance Against Accidental Injury
for Air Passengers promulgated by the Financial & Economic Commission of the
Administration Council of the People's Republic of China on April 24, 1951
shall be nullified simultaneously.