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EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN NORWAY AND INDIA CONCERNING COMMERCIAL RELATIONS [1950] INTSer 13

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN NORWAY AND INDIA CONCERNING COMMERCIAL RELATIONS

New Delhi,
29 August 1950

I

ROYAL NORWEGIAN LEGATION DELHI

Jnr.: 12839/50

II

Dated 29 August 1950

Dear Mr. DESAI,

In the course of discussions that have taken place between representatives of Norway and India recently with a view to promoting trade between the two countries during the period 1st May 1950 to 30th April 1951, certain points have been mentioned that it will be of interest to place on record, viz.

(1) The import licensing policy laid down by the Government of India for the period January/June 1950 goes,forth from a Public Notice issued by the Government of India, Ministry of Commerce, dated New Delhi February 25th 1950. Certain ceilings are fixed for specified items and a specification for the various currency groups is also given. It is understood that the Public Notice may be amended from time to time.

(2) The import licensing policy of the Government of Norway has up to recently been rather strict due to economic and foreign currency difficulties since the cessation of World War II. Within the framework of the Organisation for European Economic Co-operation, important concessions have been granted to the Member Nations of above-mentioned organisation, and these concessions have also been extended to India. The "free lists" will be in force until further notice, whereas the "global lists" have been cancelled by the Government of Norway on March 14th 1950, with a grace period of six months from January 1, 1950 for goods already licensed under the "global lists". A note on the Norwegian Licensing system is attached.

(3) Both the countries will inform each other of changes in their licensing policies and regulations as and when such changes are made.

(4) The Representatives of Governments of Norway and India confirmed that within the currency groups there would be no territorial discrimination, and accordingly applications for licences for import of goods from one country into the other would be treated equally favourably by the two Governments as compared to any other country of the soft currency group, in accordance with the licensing procedure in force from time to time, saving any exceptional commitment in particular trade agreements.

(5) The Representatives on both sides expressed the desire to endeavour to expand the trade between the two countries as much as possible, and items that are in short supply in one country will be licensed for export from the other, provided the item or items in question is or are not banned for export, and provided people of the trade through the normal trade channels come to terms regarding prices and conditions. Applications for export licences to either country will be treated equally favourably by the two Governments as compared to such applications made for any other country of the soft currency group in accordance with the licensing procedure in force from time to time, saving any exceptional commitment in particular Trade agreements.

(6) The Representatives on both sides agreed to give and assist in giving the widest possible publication of lists of goods available for export in both countries as and when required by the other party. A list of some of the items available from Norway at the moment is enclosed herewith for this purpose.

(7) As India requires technical assistance to build up new industries and improve existing ones, the Norwegian Government is prepared to encourage Norwegian companies and individuals to place their experience at the disposal of Indian interested parties. The two Governments will be pleased to assist in arranging for contacts in various fields, but it is of course understood that contracts in this respect will be made direct between the parties concerned in accordance with foreign exchange and other regulations in force.

(8) Shipping. Questions relating to shipping were raised and it was decided to pursue them later on.

Yours sincerely,

(Signed) JENS SCHIVE

C.C. DESAI,
Esq. Secretary to the Government of India, Ministry of Commerce, New Delhi.

NOTE

RE: THE NORWEGIAN LICENSING SYSTEM

Up to recently the imports into Norway and the licensing of such imports have been based practically exclusively on bilateral trade agreements with quotas fixed for the various products or groups of products. Such agreements bind the Governments of the two countries concerned to grant import and export licences up to such amounts or quantities as mentioned in the agreement provided the people of the trade fmd prices and conditions acceptable for the goods offered. In all cases import licences are required, but for a number of products the actual licensing is being done by the different trades themselves, as imports are for many groups of products based on quotas worked out on past imports. The overall imports ate laid down in the annual Foreign Trade Budget of the Norwegian Government for 12 months at the time, based on consultations with the industries and the trade regarding possible exports and necessary imports. Due to Norway's adherence to the O.E.E.C. countries considerable concessions have been granted recently for a great number of products. These concessions are comprised in two types of lists, viz., the "free list" and the "global list". The wording of the Public Notice on these lists issued by the Norwegian Government is, in translation, the following:

Article 1

The Ministry of Commerce permits certain goods to be imported freely without any restrictions as regards quantity from certain countries. These goods have been entered on a free list with specification of countries from which the import may take place. In addition hereto provisions have been made for the import of certain goods that still are restricted with regard to quantities; but where the importers are permitted to choose from which country the import shall take place. The Ministry will issue a list of goods and a specification of the names of the countries to be included in this arrangement. Imports in accordance with these last mentioned provisions are termed imports on global quotas. For imports of goods on these lists licences are required, but such licences will be granted automatically as regards items on the free list, and automatically up to ceilings fixed for the global list. This latter list has heen cancelled by the Norwegian Government on March 16th, 1950, with immediate effect, but a period of grace of six months has heen granted for contracts already made. Simultaneously with the import licensing based on these lists the previous licensing of items that are not included in these lists is continued as before. As regards the bilateral trade agreements these usually foresee that the balance of trade between the two countries should be in accordance with certain amounts that should not be exceeded from an exchange point of view.

LIST OF SOME OF THE GOODS AVAILABLE FROM NORWAY FOR EXPORT TO INDIA

Fresh Frozen Herring and Fish, Smoked Herrings and Air Dried Herrings,
Cheese,
Ice Cream Powder.
Seed Potatoes.
Medicinal and Industrial Cod Liver Oil.
Vitamin Product, Laminaria Pins, and other drugs
Beer.
Calcium Carbide.
Sulphite Lye (Totanin).
Chemical Fertilizers.
Auxiliaries for Tanneries, Textile and Washing Agents Industry, Fatty Alcohols and products from Sperm Oil
Alginates for the Textile Industry and other Alginates.
Mechanical and Chemical Pulp.
Newsprint and Paper of all sorts,
Cardboard and Pasteboard.
Soft and Hard Wallboard.
Staple Fibre.
Electrode Paste.
Non -ferrous metals.
Ferroalloys (Ferrosilicon all grades, Ferrochrome, Ferro-Managanese and Silico-Manganese).
Rosenails.
Fish Hooks.
Walding Equipment.
Testing Machines, Automatie Bag Scales, Textile Machinery, Electric Motors and Diesel Engines, Pump Sets, Electric Hoists,
Machine Tools, Woodworking Machinery, Chaff-cutter Knives, Kitchen Scales, Rivets, Bolts and Nuts, Handtools, Electric Safety Handlamps, Wireless Receivers.
Technical Nitrogenous Products and Inert Gases.
Planed Wood and Box Board.
Formaline and Resins,
Caseine.
Transmission Belting,
Pulp Stones,
Grinding Wheels,
Abrasives.
Fishing Vessles made from timber.

II

MINISTRY OF COMMERCE

the 29 August 1950
New Delhi

Your Excellency,

I write to acknowledge receipt of your letter of today's date, which reads as follows: [See Note 1]

1 I confirm that this sums up correctly the result of discussions between the Representatives of India and Norway.

2. I would add, however, that the position explained in pares (4) and (5) of your letter is subject to an exception in respect of neighbouring countries and imports by country-craft.

3. A list of some of the items available for export from India is enclosed herewith.

Yours sincerely,

C.C. DESAI

His Excellency Monsieur JENS SCHTVE.
Envoy Extraordinary and Minister Plenipotentiary, Royal Norwegian Legation, Delhi.


LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM INDIA TO NORWAY

Cotton textiles.
Jute goods.
Raw wool and Woollen manufactures including carpets and rugs.
Coir mats and other manufactures.
Cotton waste.
Leather and Leather goods.
Rubber goods.
Raw and tanned goatskins.
Hides of heavier weight.
Myrabolarns.
Sports goods.
Drugs and medicines.
Essential oils and Oilseeds.
Sandalwood and Sandalwood oil.
Groundnut and Groundnut oil. Linseed and Linseed oil.
Castor and Castor oil.
Spices including pepper,
chillies, ginger, turmenc, cardamom, pickles, chutneys, condiments, curry powder.
Cashew nuts.
Tea.
Coffee.
Tobacco.
Shellac.
Mica. Manganese ore and Magnesite.
Crushed bones.
Rose and other timber.


India Bilateral

Ministry of External Affairs, India


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