LAW                                              
                                                                                
                                                                                
        ON THE PRINCIPLES OF THE ACTIVITIES OF TRANSPORT                        
                                                                                
                                                                                
     Article 1. The Objective of the Law                                        
                                                                                
     This Law  shall establish  the  general  principles  of  the               
activity  and    management  of  transport  of  the  Republic  of               
Lithuania.                                                                      
                                                                                
                                                                                
     Article 2. Transport                                                       
                                                                                
     Transport shall  be the constituent part of the economic and               
social     infrastructure  of  the  Republic  of  Lithuania.  Its               
objective shall   be  to carry  passengers  and  freight  and  to               
perform other transportation  services.                                         
                                                                                
     The transport branches in the Republic of Lithuania shall be               
as follows:   biotransport,  railway, motor  vehicle, sea, inland               
water, air, town  electric, and pipeline transport.                             
                                                                                
     Biotransport  shall   comprise  special   roads  and  paths,               
bicycles, velomobiles,  and their technical equipment.                          
                                                                                
     Railway transport  shall comprise  railways of  general use,               
branch  lines,     rolling  stock,  signaling  equipment,  energy               
equipment, stations,  and   other engineering buildings which are               
directly used for the purpose  of the railway transport service.                
                                                                                
     Motor vehicle  transport  shall  comprise  roads,  means  of               
transportation,   technological  equipment,  stations  and  other               
engineering buildings.                                                          
                                                                                
     Sea transport  shall comprise seaways, seaports, lighthouses               
and other   navigational  marks, as  well as  technical equipment               
which regulates   navigation and guarantees its safety, ships and               
other sailing means.                                                            
                                                                                
     Inland water  transport shall  comprise waterways for use by               
vessels,   ships and  other sailing  means, harbours,  piers, and               
navigational marks.                                                             
                                                                                
     Air  transport   shall  comprise   air   routes,   airports,               
aerodromes and  means of transportation.                                        
                                                                                
     Town electric  transport shall  comprise  electric  overhead               
wires, electric  means of transportation, technological equipment               
and other engineering  buildings.                                               
                                                                                
     Pipeline  transport   shall   comprise   the   technological               
equipment and   engineering  buildings  of  the  network  of  oil               
pipelines and gas mains.                                                        
                                                                                
                                                                                
     Article 3. Regulation of Relations of Transport                            
                                                                                
     Relations of transport of the Republic of Lithuania shall be               
regulated   by this Law, the codes of the transport branches, and               
other standard  acts.                                                           
                                                                                
                                                                                
     Article 4. Objects and Kinds of Ownership of Transport                     
                                                                                
     Railways of  general use,  state  motorways,  territory  and               
defined areas  of water of seaports, lighthouses and equipment as               
well  as   navigational     marks   regulating   navigation   and               
guaranteeing its  safety, aeronavigation  equipment of the flight               
control  system,  and  main  pipelines  shall  be    under  state               
ownership of the Republic of Lithuania.                                         
                                                                                
     Separate transport roads as well as means of transportation,               
technological     equipment,  stations   and  other   engineering               
buildings may  be under  the   ownership of  local governments as               
well as of legal and natural persons.                                           
                                                                                
     Article 5. Management of Transport                                         
                                                                                
     State  transport   shall  be  managed  by  the  Ministry  of               
Communications   of the Republic of Lithuania as well as by other               
institutions authorized  by the Government of the Republic.                     
                                                                                
     Transport  which   is  under   the  jurisdiction   of  local               
governments shall   be  managed by  appropriate local governments               
according to the procedure  established by the law.                             
                                                                                
                                                                                
     Article 6. Payment for Transportation Services                             
                                                                                
     Maximum rates  for  the  transportation  of  passengers  and               
transportation   services related  to it as well as rules for the               
application of  them   shall be approved by the Government of the               
Republic of Lithuania.                                                          
                                                                                
     The Government  of  the  Republic  of  Lithuania  and  local               
governments   may establish the procedure for discount travel. In               
this case,  the   owner of  the means  of transportation shall be               
compensated for  the  expenses from the budget of the appropriate               
departments and local  governments.                                             
                                                                                
     Work and services for which there are no established maximum               
rates   shall be  compensated for  at  a  price  which  shall  be               
established by  the owner of the means of transportation.                       
                                                                                
     For the  use of  ports, territorial  waters, motorways,  and               
railways  of the Republic of Lithuania, as well as for the flight               
control and   aeronavigation  service  in  the  airspace  of  the               
Republic of  Lithuania,  legal and natural persons shall pay dues               
in the amount established  by the Government of the Republic.                   
                                                                                
                                                                                
     Article 7. The Right to Drive a Means of Transportation                    
                                                                                
     The right  to drive  a  means  of  transportation  shall  be               
granted to  persons  who possess the necessary qualifications and               
are in an adequate health  condition.                                           
                                                                                
     The  Ministry   of  Communications   shall   establish   the               
qualificational       requirements   for    driving   means    of               
transportation.                                                                 
                                                                                
     A person's health fitness to drive a means of transportation               
shall   be assessed  by the  officials  of  health  care  in  the               
procedure established  by the Ministry of Health Care.                          
                                                                                
                                                                                
     Article 8.The Responsibility of Countries for                              
               Transportation                                                   
                                                                                
     Conditions of  transportation of  passengers and freight and               
their insurance   and  the responsibility  of countries  of these               
forms of  transport shall  be established by laws of the Republic               
of Lithuania.                                                                   
                                                                                
                                                                                
     Article 9.Engagement in the Economic Activities of                         
               Transportation                                                   
                                                                                
     Legal and  natural persons  may engage  in transportation of               
passengers     as  well   as  in   all  kinds   of  international               
transportation if  they possess  a permit (license) issued in the               
procedure established  by the  Government   of  the  Republic  of               
Lithuania.                                                                      
                                                                                
     Foreign  legal   and   natural   persons   who   engage   in               
transportation activities   in Lithuania must observe the laws of               
the Republic of Lithuania.                                                      
                                                                                
                                                                                
     Article 10. Road Safety Control                                            
                                                                                
     The   Ministry   of   Communications   together   with   the               
institutions authorized   by the Government of the Republic shall               
prepare the requirements for  the safe traffic of transportation,               
shall exercise  road safety  control,   and shall  coordinate the               
implementation of measures to ensure road  safety.                              
                                                                                
                                                                                
     Article 11.Ecological and Hygienic Requirements in                         
               Transportation  Activities                                       
                                                                                
     In transportation activities, legal and natural persons must               
comply  with international and national as well as ecological and               
hygienic  requirements.                                                         
                                                                                
     Senders of  freight and  owners of  means of  transportation               
shall be   responsible  for the  safety of  the transportation of               
dangerous freight  according to the established procedure. A list               
of dangerous  freight  shall be approved by the Government of the               
Republic of Lithuania.                                                          
                                                                                
                                                                                
                                                                                
KAZIMIERAS MOTIEKA                                                              
                                                                                
Vice President                                                                  
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
                                                                                
Vilnius                                                                         
8 October 1991                                                                  
No.I-1863