SETTLEMENT OFDISPUTES ARTICLE 40. SETTLEMENT OF DISPUTES  40.4. If amicable settlement procedure and, if so requested, the conciliation procedure fails, each party may  refer the dispute to either the decision of a national jurisdiction or arbitration, as specified in Article 11  of the Special Conditions.  40.3. In the absence of an amicable settlement, a Party may notify the other Party in writing requesting a  settlement through conciliation by a third person. If the European Commission is not a Party to the  contract, the Commission can accept to intervene as such a conciliator. The other Party shall respond  to the request of conciliation within 30 days. Unless the Parties agree otherwise, the maximum time  period laid down for reaching a settlement through conciliation shall be 120 days from the notification  requesting such a procedure. Should a Party not agree to the other Party's request for conciliation,  should a Party not respond in time to that request or should no settlement be reached within the  maximum time period, the conciliation procedure is considered to have failed.  40.2. Once a dispute has arisen, a Party shall notify the other Party in writing of the dispute, stating its  position on the dispute and any solution which it envisages, and requesting amicable settlement. The  other Party shall respond to this request for amicable settlement within 30 days, stating its position on  the dispute. Unless the Parties agree otherwise, the maximum time period laid down for reaching an  amicable settlement shall be 120 days from the date of the notification requesting such a procedure.  Should a Party not agree to the other Party's request for amicable settlement, should a Party not  respond in time to that request or should no amicable settlement be reached within the maximum time  period, the amicable settlement procedure is considered to have failed.  40.1. The Parties shall make every effort to settle amicably any dispute relating to the contract which may  arise between them.  Page 19 of 19 