¹ The Contracting Parties intend to encourage and develop on the basis of balanced and mutually beneficial cooperation for each part the passenger and rail traffic between the Republic of Austria, the Principality of Liechtenstein And the Swiss Confederation.

² This cooperation will extend in particular to the following areas:

(a)

Develop strategies for the rail transport of passengers and goods between the three states;

(b)

Exchange information on the coordination of infrastructure development and rail traffic programmes for the following international links:

(i)

Geneva-Zurich-Saint-Gall-St. Margrethen-Bregenz (-Lindau-Munich) - Salzburg-Vienna (-Budapest), and Bregenz-Feldkirch-Innsbruck-Vienna (-Budapest) /Graz/Klagenfurt/ (Ljubljana),

(ii)

Basel-Zurich-Sargans-Buchs SG-Feldkirch-Innsbruck-Vienna (-Budapest) /Graz/Klagenfurt/ (Ljubljana),

(iii)

Chur-Sargans-Buchs SG-St. Margrethen/Feldkirch-Bregenz (-Lindau-Ulm);

(c)

Improve international freight traffic with a view to increasing the quality of transport, in particular by reducing transit times, building terminals and encouraging railway connections;

(d)

Carry out joint studies on the modernisation of railway infrastructure and the development of rail transport offers, including the regional effects of the service;

(e)

Exchange information on organisational, legal and technical issues, including issues relating to the status of the railway in the transport system of the States of the Contracting Parties.

¹ Within the framework of their competences, the Contracting Parties shall endeavour to cooperate in the future development of the railway infrastructure, its interoperability, rolling stock and the principles of the organisation of rail traffic. This cooperation relates in particular to:

(a)

The intended modernisation for rail links on the lines:

(i)

Sargans-Buchs SG-Feldkirch,

(ii)

Sargans-Buchs SG-St. Margrethen-Saint-Gall,

(iii)

Bregenz-Feldkirch-Bludenz;

(b)

The development of rail traffic through measures which are necessary to modernise and make compatible the technical installations of the railway infrastructure and the operational exchange of information, as well as measures Organizational and administrative.

² In accordance with the legal requirements applicable in their States, the Contracting Parties shall support the cooperation of railway undertakings in their national territories and depart from the principle that the details of such cooperation, In particular the various joint projects, are agreed by the railway undertakings.

³ Within the limits of their powers, the Contracting Parties shall be responsible for the financing of the measures to be carried out in their territories, subject to national procedures concerning decisions on financing. In particularly justified isolated cases, it is possible to envisage, in derogation from the principle of territoriality, extra-territorial co-financing of improvements to the infrastructure in the area near the border if the parties Contracting Parties concerned shall agree on such a procedure. The Federal Ministry of Transport, Innovation and Technology of the Republic of Austria and the Government of the Principality of Liechtenstein, however, reserve the possibility of concluding, in isolated cases, separate agreements On the financing of railway infrastructure in the Principality of Liechtenstein.

¹ The national planning and objectives of the BODAN-RAIL 2020 project for the large Lake Constance region will serve as a planning basis for the contracting parties. The latter will work, as part of their expertise, to ensure that the first parts of this project are completed by 2010.

² Priority is given to the review of the development opportunities for the Feldkirch-Schaan-Vaduz-Buchs SG rail link with respect to the regional effects of the service. This study should be coordinated and deepened in common by the contracting parties with a view to harmonising the measures to be taken.

¹ The implementation of this Convention shall be entrusted to a Steering Committee composed of representatives of the Contracting Parties and which shall meet at least once a year. The host country assumes the Presidency; the Presidency of the first meeting shall return to the Principality of Liechtenstein and then change by rotation. Depending on the needs, the representatives of the local authorities and the railway undertakings concerned will be able to be consulted.

² Each Contracting Party may require the convening of the Steering Committee if it considers it necessary. In this case, the steering committee is to meet within three months.

³ The Steering Committee shall monitor the implementation of this Convention and shall draw up a programme of implementation. It presents proposals on the possible development of the objectives and measures which will be established, where appropriate, as supplements to the Convention.

All information and results of the work exchanged and processed under this Agreement shall be published only with the agreement of all Contracting Parties.

¹ This Agreement shall enter into force on the first day of the second month following the signature.

² It is concluded for an indeterminate period.

³ It may be terminated at any time, subject to written communication addressed to the other Contracting Parties and, in this case, shall lapse six months after the day on which the termination is received.

Done at Vaduz, on 14 September 2007, in three originals in German.