Indian Treaty Series

Dear Mr. CHETTUR,

As a result of the consultations between the Delegations of India and Switzerland, the following arrangements for the exchange of goods have been agreed upon between our two Governments:

(1) The Swiss Government undertake to issue or keep current export licences during the year ending February 28th, 1950, for the export of the following goods to India for the correspondingly listed receipts during this period and will' use their good offices to facilitate such exports:

It is understood that in respect of textiles, watches, chemicals and pharmaceuticals the Indian Government will issue licences following broadly, the pattern of imports of these goods in the previous year. For silk, artificial silk tissues the Indian Government will issue licences upto 600,000 Swiss Francs.

It is understood that in the classifications heavy electrical equipment other capital goods and electrical and medical apparatus, the Indian Government also include items of Swiss exports, such as tools, measuring instruments, office machinery, electrical meters, photographical apparatus for scientific purposes, surgical and astronomical apparatus.

(3) The Indian Government undertake to grant or keep current import licences during the period March 1st, 1949, to February 28th, 1950, for the following Swiss goods for the correspondingly listed payments during this period:—

(4) The Swiss Government state that it is their policy to develop and increase, wherever possible, imports into Switzerland of goods of all kinds from India. To this end the Swiss Government undertake that during the period covered by the present Agreement the imports into Switzerland of goods of Indian origin would not be subject to any measure of prohibition or restriction except in cases where imports into Switzerland from all sources of a particular commodity have to be restricted in order to safeguard the vital interests of the corresponding Swiss industrial or agricultural producers.

(5) The Indian Government state that it is their policy to encourage the exports of goods to Switzerland. In particular, the Indian Government undertake in this connection to grant export licences during the year ending February 28th, 1950, for the following commodities and quantities:— 14,000 tons groundnuts. 4,000 tons groundnut oil. 4,000 tons linseed. 500 tons hessians. aoo tons coffee 1,000 tons manganese ore. With regard to Swiss raw jute requirements which amount $o 1,400 tons a year, the Swiss authorities will ascertain how much they can obtain from other sources, and should there remain any uncovered requirements, they will indicate these to the Government of India who undertake to consider sympathetically the residual Swiss demand.

(6) In addition to payments in respect of goods there will be payments on both sides in respect of invisibles which have not been taken into account in fixing the amounts indicated in this Agteement. I should be grateful to have your confirmation that this letter correctly sets out the understanding reached between us.

Yours sincerely,

(Sd.) SCHAFFNER.

K.K. CHETTUR, Esq., Joint Secretary, Ministry of Commerce, Government of India.

INDIAN DELEGATION Berne, March 17th, 1949.

Dear Mr. SCHAFFNER,

Thank you for your letter of the 17th March, 1949, setting out the following arrangements for the exchange of goods which have been agreed upon between our two Governments:

(1) The Swiss Government undertake to issue or keep current export licences during the year ending February 28th, 1950, for the export of the following goods to India for the correspondingly listed receipts during this period and will use their good offices to acilitate such exports: Lakhs Mio Swiss Rupees Franes

(2) It is understood that in the classifications heavy electrical equipment other capital goods and electrical and medical apparatus, the Indian Government also include items of Swiss exports, such as tools, measuring instruments, office machinery, electrical meters, photographical apparatus for scientific purposes, surgical and astronomical apparatus.

(3) The Indian Government undertake to grant or keep current import licences during the period March 1st, 1949, fo February 28th, 1950, for the following Swiss goods for the correspondingly listed payments during this period:

(4) The Swiss Government state that it is their policy to develop and increase, wherever possible imports into Switzerland of goods of all kinds from India. To this end the Swiss Government undertake that during the period covered by the present Agreement the imports into Switzerland of goods of Indian origin would not be subject to any measure of prohibition or restriction except in cases where imports into Switzerland from all sources of a particular commodity have to be restricted in order to safeguard the vital interests of the corresponding Swiss industrial or agricultural producers.

(5) The Indian Government state that it is their policy to encourage the exports of goods to Switzerland. In particular, the Indian Government undertake in this connection to grant export licences during the year ending February 28th, 1950, for the following commodities and quantities:—

14,000 tons groundnuts.
4,000 tons groundnut oil.
4,000 tons linseed.
500 tons hessians.
200 tons coffee.
1,000 tons manganese ore.

With regard to Swiss raw jute requirements which amount to 1,400 tons a year, the Swiss authorities will ascertain how much they can obtain from other sources, and should there remain any uncovered requirement they will indicate these to the Government of India who undertake to consider sympathetically the residual Swiss demand.

(6) In addition to payments in respect of goods there will be payments on both sides in respect of invisibles which have not been taken into account in fixing the amounts indicated in this Agreement. I confirm that your letter correctly sets forth the understanding reached between us.

Mr. H. SCHAFFNER,
Delegue' aux Accords Commerciaux,
Berne.