The representatives of the Government of Spain and of the Government of India have met in order to take steps to improve and to develop
the trade between the two countries.
2. In respect of import and export customs tariffs, it was noted that in accordance with the Anglo-Spanish Treaty of Commerce and
Navigation of 1922, the Spanish Government was extending and would continue to extend to goods of Indian origin most-favoured nation
treatment, subject to the exceptions specified in that Treaty, and that the Indian Government was extending and would continue to
extend to goods of Spanish origin most-favoured nation treatment, subject to the accepted exceptions in respect of Commonwealth,
contiguous and certain other countries which ceased to be contiguous on the 15th August, 1947.
3. The Indian Representatives further explained that as Spain was being accorded most-favoured-nation treatment by India, any tariff
reductions accorded to non-preferential countries under G.A.T.T. negotiations would be extended to Spain immediately and unconditionally.
4. As regards the Indian Import Regulations, it was explained that Spain fell within the soft currency area and that as such, exports
from Spain were for the purpose of Indian Import Regulations on precisely the same footing as exports from other soft currency countries,
although at present there existed under current trade agreements a few prohibited commodities whose import from certain countries
was permissible for as long as those agreements lasted. The Spanish Delegation drew attention to the fact that there was little scope
in the Indian Regulations for imports by newcomers. It was stated that this restriction had an unfavourable effect on the general
possibility of Spanish exports finding a market in India. The Indian delegates stated that the general issue of established importers
and newcomers was under consideration, and a decision was expecl;ed to be taken before the announcement of the import policy for
the January-June, 1951 period. In this connection the point of view expressed'would receive sympathetic consideration.
5. The Spanish Delegation also drew attention to the following two particular commodities in the import of which they were specially
(i) Saffron: This had been traditional export of Spain to India and it was represented by the Spanish Delegation that the percentage
granted in the present regulations was insufficient and should be increased up to 80 per cent of the best year's import. It was explained
that as most of the importers of Spanish saffron were small importers of this commodity, the fixation of a six months' quota as small
as 20 per cent of best year's imports would result in a large number of the licences being infructuous, and therefore, actual importation
would be considerably below the level envisaged by the Government of India itself. The Spanish Delegation requested the Indian Delegation
to accept the above circumstances as justifying a larger percentage quota for saffron imports. The Indian Delegation stated that
for the c'urrent half-year licensing period, it had been decided to allow saffron imports on a basis of 60 per cent of half of best
year's imports, and that for the January—June, 1951 licensing period, the Indian authorities would consider sympathetically the possibility
of similar action.
(ii) Sporting firearms, pistols and ammunitions: It was represented by the Spanish Delegation that Spanish firearms have found favour
in the Indian market. The Spanish representatives asked that in the matter of import of firearms they should be placed on precisely
the same footing as any other country in the soft currency area, i.e. if imports were being made from even one country in the soft
currency area, similar import facilities should be extended to firearms, ammunition and pistols from Spain. This point was noted
and it was agreed that a final decision in this respect would be communicated to the Spanish Government as soon as possible.
6. The list of Spanish exportable commodities to India was examined and it was found that a large number of them (Annexure I) fell
within the category of commodities which at present could be imported in terms of the current regulations governing the grant of
licences for the import of commodities from the soft currency area. It was noted that the list was not exhaustive.
7. The list of Indian exportable commodities was given to the Spanish representatives (Annexure II). It was noted that the list was
not exhaustive. The Spanish representatives stated that the Spanish authorities would grant licences for the import of green or black
tea from India during the next twelve-month period for a minimum value of £ 4,000.
8. The Spanish representatives enquired whether there would be any possibility of sale to India of Government requirements. In this
connection, a list was given to the Spanish representatives of items which were normally bought by the Director-General of Industry
and Supply. It was explained that there might be scope within the terms of this list for Spanish suppliers to quote against tenders
of the Director-General of Industry and Supply for imports from countries other than India.
9. At the request of the Indian representatives, the Spanish representatives agreed to obtain from the Spanish Government quotas for
export to India of the following items:— Fluorspar. Lithopone. It was explained by the Indian representatives that the utilization
of these quotas depended on normal private trade arrangements in India on the basis of price, delivery dates, quantity, etc.
10. It was confirmed that all payments resulting from the exchange of goods between Spain and India would be settled in Pound Sterling.
11. It was agreed that both the Governments would provide all facilities that they could reasonably accord to secure that the ships
of the two countries carried as large a proportion as possible of goods exported from or imported into their respective countries.
12. It was agreed that both the countries would inform each other substa'ntial changes in their licensing policies and regulations
as and when such changes were made, and that, if necessary, would then accord to each other the opportunity to discuss the effect
of such changes on the trade between the two countries.
13. It was agreed that the understanding recorded in these minutes, if approved by the two Governments, would be current for a period
of twelve months commencing from 1st October 1950 and might before expiry be extended by a mutual exchange of notes.
14. The Spanish Delegation and the Indian Representatives agreed that the position set out in these agreed minutes should be subject
to approval by the two Governments, which would be conveyed by an exchange of letters between duly authorised representatives of
the two Governments.
(Sd.) JAIM E ALVA 10- 10-50.
Leader of the Spanish Trade Mission.
Cutlery pruning knives.
Drugs and medicines.
Fish dried and wet.
Currants and raisins.
Bottles and phials.
Glass sheets and plates.
Other implements and tools.
Electric table fans and parts.
Electric porcelain ware.
Wines and sherries.
Leather tanning and curing machinery
Power driven pumps.
Saw mill and wood-working machinery.
Textile machinery for cotton,
jute and wool.
Canned or bottled fruits.
Tinned or canned fish.
Jams and jellies.
Stone and marble.
Manufactures of wool.
Woollen and worsted piecegoods.
Goods of wool mixed with other materials.
friction flannel and less clearer cloth.
Cycles and parts.
Plywood for tea chests.
Frames for spectacles.
Battery and parts.
Ball and roller bearings.
Hides and skins.
Dyeing and tanning substances.
Carborandum and conndon.
Pneumatie mr compressors.
Onions canned or bottled.
Cinematograph films exposed.
Fireworks for ships.
Hand lmitting wool.