AGREED MINUTES OF DISCUSSIONS ON COMMERCIAL RELATIONS BETWEEN REPRESENTATIVES OF THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY
AND OF THE REPUBLIC OF INDIA
New Delhi, 5 November 1952
Representatives of the Government of the Federal Republic of Germany (hereinafter referred to as the German Delegation) and representatives
of the Government of the Republic of India (hereinafter referred to as the Indian Delegation) met in New Delhi between October 15th
and November 5th, 1952, to review the state of trade between the two countries and to discuss ways and means of promoting mutual
trade. In the course of these discussions it was agreed to extend the validity of the Agreed Minutes of Discussions on commercial
relations between Representatives of the Governments of the Federal Republic of Germany and of the Republic of India of March 19th,
1952, for a period of one year subject to the amendments included in the following re-draft of the Agreed Minutes.
1. Both Delegations confirmed that it was the policy of their respective Governments that within the currency group to which either
country was scheduled to belong by the other country there should be no territorial discrimination, and accordingly applications
for licences for import of goods from one country into the other should be treated equally favourably by the two Governments as compared
to any country of the same currency group, in accordance with the licensing procedure in force from time to time and subject to quota
commitments in particular trade agreements.
2. The German Delegation stated that, in order to implement this policy, the Government of the Federal Republic, in view of the fact
that India is scheduled to belong to the currency group of those countries which settle their accounts with the Federal Republic
through the European Payments Union but not being themselves members of the Organisation for European Economic Co-operation (OEEC)
were prepared upon application by German importers to issue import licences freely without quantitative restrictions for those commodities
originating in the Republic of India which are set forth in Annex A to these Minutes, to the extent to which these commodities are
included in the German list of commodities which can be imported without quantitative restrictions from member countries of the Organisation
of European Economic Co-operation and from their Dependent Overseas Territories (hereinafter referred to as the German liberalisation
list) as published from time to time. The German Delegation further agreed that the Government of the Federal Republic of Germany
would, on request, include in Annex A any new items that may be added to the German liberalisation list during the period of the
agreement in which India was interested, provided such inclusion did not prejudicially affect the interest of the Federal Republic,
and the reasons therefor were communicated to the Government of India.
3. The German Delegation stated further that the Government of the Federal Republic were prepared.
(a) to authorise, during the period 1st November, 1952, to 31st October, 1953, the importation of those commodities originating in
the Republic of India which are set forth in Annex B to these Minutes in the amounts indicated therein and upon application by interested
German importers to issue licences.
(b) to consider sympathetically, but with regard to Germany's balance of payments position, any requests of the Government of the
Republic of India either for additions to the commodities enumerated in Annex A or for increases in the amounts indicated against
the commodities set forth in Annex B.
(c) to give the assurance that the fact that a particular commodity is not mentioned in Annex A or B will not in itself exclude the
possibility of a licence being issued for its importation from the Republic of India in amounts to be agreed upon in each individual
4. The Indian Delegation stated that in order to implement the policy set forth in para 1, the Government of India will, so long as
the Federal Republic is scheduled to belong to the currency group of soft currency countries, treat imports of goods from the Federal
Republic of Germany into India equally favourably as compared to any country of the soft currency group, in accordance with the licensing
procedure in force from time to time and subject to quota commitments in particular trade agreements.
5. Both Delegations agreed that the above provisions shall not be deemed to prevent either Government from taking such measures for
the protection and safeguarding of its external financial position and balance of payments as are compatible with provisions of the
General Agreement on Tariffs and Trade. In the event of a commodity mentioned in Annex A to these Minutes not being included in or
being removed from the German liberalisation list, the two Governments will consult together with a view to fixing an import quota
for any commodities included in Annex A affected thereby or to take measures designed to avoid unnecessary hardships arising from
6. The two Delegations agreed that, if the existing European Payments Union or the Sterling Area Arrangements should be so altered
during the term of the agreement as to impair the ability of either Government to implement it, they shall, at the request of either
Government, enter into consultation without delay in order to adapt the present agreement to the requirements of commercial intercourse
under the new conditions. Both Delegations agreed that pending such consultation, they would, as far as possible, avoid taking any
measures which would interrupt the normal flow of trade, and that the Government of the Federal Republic in particular would see
to it that imports of commodities of Indian origin mentioned in Annex A should be continued in an adequate measure. The two Delegations
further agreed that in order to facilitate the implementation of the agreement, they would consult each other in respect of any matters
arising therefrom or in connection therewith as may be felt to be necessary. Both Delegations agreed that, in order to maintain and
expand the volume of trade between the two countries, export licences would be granted, where required, except in cases covered by
the following sub-paragraph. With regard to commodities in short supply which are subject to export restrictions and prohibitions,
both Governments will from time to time consult with each other with a view to facilitating the exportation of such commodities in
order to meet the essential requirements of either country.
9. The two Delegations agreed that salaries and wages of nationals of either country working for a limited period in the other country
should be freely transferred to the home country of the national concerned after deduction of living expenses, taxes and social assurances,
subject to exchange control permission having previously been obtained for such employment and remittances. This is without prejudice
to nationals of either country availing themselves in full of the facilities permitted under the foreign exchange regulations in
force in either country from time to time if such facilities should be more liberal.
10. The two Delegations were agreed that in the interests of promoting and facilitating trade between the two countries it would be
desirable to make arrangements, consistently with the Anglo-German Payments Agreement, for the direct payment of amounts due in respect
of normal commercial transactions including incidental costs, wages and other payments permitted by the foreign exchange regulations
of either country. The technical arrangements for the purpose would be such as might be agreed between the Reserve Bank of India
and Bank Deutscher Laender.
11. The German Delegation stated that the Government of the Federal Republic of Germany will be prepared at the request of the Government
of India to use its good offices in order that German companies, firms and individuals put their experiences at the disposal of the
Indian Government or Indian interested parties for the development of new industries or the improvement of existing ones or the development
of technical research in India. It was agreed that such technical assistance shall also include technical education and practical
training of Indian nationals within the territory of the Federal Republic of Germany. Both Delegations agreed that the two Governments
shall cooperate in facilitating and establishing contacts in the various fields but that it was understood that any contracts in
this connection will be concluded directly between the parties concerned in accordance with foreign exchange and other regulations
in force from time to time.
12. Pending the conclusion of more permanent arrangements, ships belonging to either of the two countries shall be accorded in the
ports of the other country the same facilities in respect of bunkering and other services and the same treatment in respect of duties
and taxes as are accorded to the national shipping of the other country, except that any concessions made to ships engaged in the
coasting trade of either country shall not be admissible under this pare to the ships of the other country. It was agreed that both
Governments would give to the shipping companies of the other country customary facilities for catering for passenger and freight
traffic so as to enable the ships of the two countries to carry as large a proportion of the trade between the two countries as is
13. The German Delegation stated that the Indian Airlines would enjoy the customary facilities for offering their services in Germany
and for catering for passenger and freight traffic between the Federal Republic of Germany and third countries.
14. The two Delegations agreed that pending the conclusion of more permanent arrangement between both countries, the provisions set
forth in pares 12 to 14 of the Agreed Minutes of 10th October 1950 regarding treatment of German trade marks and patents and the
position of German nationals in India will continue to be in force.
15. The two Delegations agreed that each Government would authorise, during the validity of the Agreed Minutes, the import of minimum
of five films originating in the other country. They also agreed, subject to the provision of their foreign exchange regulations,
to allow exchange facilities for the remittance of the proceeds less expenses incurred in connection with synchronisation, distribution
etc., in accordance with the terms of the contracts or agreements concluded between the parties concerned.
16. The two Delegations finally agreed that the German and English texts of the Agreed Minutes of the discussions will be equally
authentic. The Agreed Minutes will remain in force till the 31st day of October 1953 and for such successive periods as may be mutually
agreed upon before their expiry.
Sd./ A.H. VAN SCHERPENBERG.
Leader of the Trade Delegation of the Federal Republic of Germany.
Sd. Y.N. SUKTHANKAR,
Secretary Ministry of Commerce and Industry.
Minimum import quotas to be granted by the Federal Republic of Germany in respect of Indian Goods up to which import licences will
be issued by that Government during 1st November, 1952 to 31st October 1953
BONN Dated 11th November, 1953
Department IV (Commercial Polity). Ref. No. 304-05/29-IV-27871/53.
Professor B.P. ADARKAR.
Minister (Commercial), Embassy of India. Bonn
Dear Mr. ADARKAR
I herewith acknowledge receipt of your letter dated 29th October No. 467—and have taken note with satisfaction of the fact that the
Government of India have given their consent to the extension of the existing Trade Agreement by a further three months until 31st
January, 1954. Thus the Common Protocol which had been signed on 5th November, 1952 in New Delhi together with Annexes A and B will
remain in force till the above-mentioned date. In so far as maximum values have been fixed in Annex B, the Federal Government will
arrange for import advertisements amounting to 25 per cent of the fixed amounts to be made during the period 1st November to 31st
January, 1954. Regarding the proposals as made under No.2 of your letter, I agree on the exchange of the wishes on both sides for
a new Trade Agreement to be settled during the first half of the month of December, 1953, and on the negotiations to be concluded
in January, 1954.
Sd./ Dr. A.H. VAN SCHERPENBERG.
FEDERAL MINISTRY OF ECONOMICS
BONN. dated 11th November, 1963.
Ref. No. VB-3-58-795/53.
The Embassy of India,
Attn.: Professor B.P. ADARKAR,
Minister (Commercial), Bonn
As our Governments have agreed to extend the Trade Agreement which expried on 31st October, 1953 provisionally by three months, I
should like to inform you that following will be advertised in the BUNDESANZEIGER, presumably in the course of the next week, as
an anticipation on the first quarter 1953/54 of the Agreement :
1. cotton textiles: 471,000
2. coir mattingo : 60,000
3. Jute producto : 339,000
4. Woollen carpets, hand-made : 46,000
5. sport goods : 45,000
6. Leather from hides and calf okino: 295,000
7. Finished leather : 30,000
I may also point out that after expiration of the former Trade Agreement on 31st October, 1953 the liberalised NPC-Import Procedure
will continue to be applied to the imports from India.
I suppose that also from the side of the Indian Government, imports from the Federal Republic to India will be treated according to
the previous procedure till the formal ratification of the above prolongation.
Sd/ Dr. ERDMANN
(Note—The NPC-Import Procedure applies to all liberalised imports from India into Germany according to Federal Ministry Of Economics
Order dated 4th July, 1953.