EXCHANGE OF LETTERS BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF BULGARIA REGARDING PROMOTION OF TRADE
New Delhi, 17 June 1953
BULGARIAN TRADE DELEGATION, NEW DELHI. New Delhi, the 17th June 1953.
Dear Mr. BHOOTHALINGAM,
In the course of discussions that have taken place recently in the Ministry of Commerce and Industry, New Delhi, between the representatives
of the Bulgarian Ministry of Foreign Trade, People's Republic of Bulgaria and Government of India with a view to promoting trade
between the two countries during the period 1st June 1953 to the end of 31st December 1954, certain points have been mentioned which
it will be of interest to place on record, viz. :
(1) The Representatives of both sides expressed the desire to endeavour to expand the direct trade between the two countries as much
as possible and agreed to give adequate facilities to import and export reasonable quantities of commodities mentioned in the attached
Schedules 'A' and S'. Items which are in short supply in one country will be licensed for export from the other, in accordance with
the rules and regulations of the two countries in force from time to time, and provided that the people of the trade and acknowledged
trade enterprises come to terms regarding prices and conditions, through the normal trade channels.
(2) The Bulgarian Representatives explained that foreign trade of Bulgaria is state monopoly. They agreed to import and export reasonable
quantities of commodities mentioned in Schedules 'A' and S' attached. 1. Remained in Force until December, 1955.
(3) The import licensing policy laid down by the Government of India for the period January-June 1953 is set out in a Public Notice
issued by the Government of India, Ministry of Commerce and Industry, dated the 31st December 1952, certain ceilings are fixed for
specified items for the various currency groups. It is understood that the Public Notice may be amended from time to time.
(4) The Representatives of the Government of India confirmed that within the currency groups there would be no territorial discrimination
and accordingly applications for licences for import of goods from Bulgaria into India would be treated equally favourably with all
other countries comprised in the currency group to which Bulgaria may belong, save any special commitments entered into by India
in any bilateral trade agreement.
(5) Both the countries will inform each other of changes in their licensing policies and regulations as and when such changes are
(6) The lists of commodities mentioned in paragraph (1), (2) and (7) of this letter are without prejudice to the right of persons
or firms of either country entering into business transactions in respect of goods and commodities not forming part of these lists
subject to and in conformity with the laws and regulations in force from time to time in either country.
(7) The Representatives of both sides have agreed to give and assist in giving the widest possible publication to lists of goods available
for export in both countries as and when required by other party. Lists of some of the items available from Bulgaria and India at
the moment are enclosed at Schedules 'A' and S' respectively.
(Sd.) D.C. GOROSTANOV.
S. BHOOTHALINGAM, Esq., I.C.S., Joint Secretary,
Ministry of Commerce and Industry, New Delhi.
LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM BULGARIA TO INDIA.
1. Steamed beach. 2. Oak Parquotry. 3. Faiance tiles. 4. Kamenine tiles. 5. Terecote tiles. 6. Window glass. 7. Natural silk piece-goods.
8. Cotton piece-goods. 9. Carbide. 10. Urea. 11. Electromotors, the following: (a) Fractional H.P. Motors D.C.; and (b) others of
over 50 H.P. 12. Yellow cheese. 13. Flour goods (macaroni) 14. Dry plums. 15. Dry pears. 16. Dry apples. 17. Dry peaches. 18. Dry
cherries. 19. Confitures and jams. 20. Canned vegetables other than tomato, Potatoes, cauliflower and onion. 21. Grapes (Fresh).
22. Apples (Fresh). 23. Electrical insulators. 24. Sanitary ceramics. 25. Threshing machine. 26. Pneumatic Hammer. 27. Universal
milling machine "FU". 28. Planing machine. 29. Vertical hper. 30. Press eccentric 60 tons. 31. Concrete mixers--250 htres.
32- Concrete mixers--500 litres. 33. Band saws.
LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM INDIA TO BULGARIA-
1. Tea. 2. Spices.3. Lac:- Button lac. Seed lac. Stick lac. Shellac. Kiri lac, etc. 4. Fish oil. 5. Essential oils. 6. Castor oil.
7. Furs. 8. Raw wool. 9. Raw cotton. 10. Coir yam. 11. Sisal ropes. 12, Drugs and medicines. 13. Bees-wax. 14. Electric wires and
cables, electric lamps. 15. Fishing tackle. 16. Bamboo fishing poles and rods. 17. Gum Tragacanth.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
New Delhi, the 17th June, 1953
Dear Mr. Gorostanov,
I write to acknowledge receipt of your letter of today's date with enclosures. The letter reads as follows :-
I confirm that this sums up correctly the results of discussions between the representatives of India and Bulgaria. I would add, however,
that the position explained in paragraph 3 and 4 of your letter is subject to an exception in respect of neighbouring countries and
imports by country craft.
(Sd.) S. BHOOTHALINGAM. D.C. GOROSTANOV, Esq.,
Leader of the Bulgarian Trade Delegation, New Delhi.
TRADE AGREEMENT EXTENDED (1956) EXCHANGE OF LETTERs,
Moscow 9 FEBRUARY 1955
Letter dated 9th February, 1955 from Mr. K.T. Lukanov, Ambassador Extraordinary and Plenipotentiary, Embassy of the People's Republic
of Bulgaria, Moscow, to Shri P.N. Kaul, Charge dAffaires, a.i., Embassy of India, Moscow. I refer to our recent discussions regarding
trade between Bulgaria and India and confirm my Government's agreement to the extension of the arrangement set out in the letters
exchanged between the Representatives of the Bulgarian Ministry of Foreign Trade, People's Republic of Bulgaria and of the Government
of India at New Delhi on the 17th June 1953 for a further period of one year commencing the 1st January 1955. The Schedules attached
to the old arrangement shall remain in force without change for the year 1955 as well. It has been further agreed that the payments
relating to the commercial and non-commercial transactions between India and Bulgaria may be effected in Indian rupees or in pounds
sterling, as may be mutually convenient. For the purpose of facilitating such payments, the State Bank of Bulgaria will maintain
one or more account(s ) with one or more commercial banks(s) in India authorised to deal in foreign exchange. In addition, the State
Bank of Bulgaria will, if that bank considers it necessary, maintain another account with the Reserve Bank of India. All the financial
transactions to be financed in Rupees will take place through the account(s) maintained with the commercial bank(s). The account
with the Reserve Bank of India, will be used only for replenishing the balances with the commercial bank(s) as and when necessary.
Payments permitted under the Indian Exchange Control Regulations to be made by residents of India to residents of Bulgaria will be
effected by crediting the amount of such payments to the above-mentioned account(s) of the State Bank of Bulgaria with the commercial
bank(s). Payments to be made to persons resident in India by persons resident in Bulgaria will be effected by debiting the said account(s)
with the commercial bank(s). The account(s) will be replenished as necessary by one of the following methods, viz.,
(1) by transfer of funds from another account of the State Bank .of Bulgaria with another commercial bank, or with the Reserve Bank
of India, or
(2) by the sale of Sterling to the bank concerned.
2. The provisions of this Agreement cover the following payments (a) payments for the commodities imported or exported under the present
agreement; (b) payments connected with commercial transactions and covering insurance, freight, port charges, storage and forwarding
expenses and bunkering; (c) payments for distribution of films; (d) payments of the expenses connected with the trips of commercial
or cultural nature as well as travelling of official delegations; (e) payments for the maintenance of the office of the Representative
of the Foreign Trade of the People's Republic of Bulgaria in India and of any office to be opened by India in Bulgaria; and (f) other
non-commercial payments on which agreement may be reached between the State Bank of Bulgaria and the Reserve Bank of India.
3. Any balances in the rupee accounts maintained by the State Bank of Bulgaria with the Reserve Bank of India or with a commercial
bank authorised to deal in foreign exchange will be convertible on demand into Sterling at the usual bank's selling rate for Sterling
as fixed from time to time by the Indian Exchange Bank's Association. The above-mentioned balances will be convertible into Sterling
even after the expiry of this arrangement. Amendments to this arrangement if necessary can be made by mutual agreement between the
two Governments. I shall be grateful if you would kindly confirm that the foregoing correctly sets out the understanding reached
Letter dated 9th February 1955 from Shri P.N. Kaul, Charge dAffaires, a.i., Embassy of India, Moscow, to Mr. K.T. Lukanov, Ambassador
Extraordinary and Plenipotentiary, Embassy of the People's Republic of Bulgaria, Moscow. I write to acknowledge receipt of your letter
of today's date. The letter reads as follows :- (Not printed)
I confirm that the above correctly sets out the understanding reached between the Representatives of India and Bulgaria.
Note:- A new Trade and Payments Agreement was concluded on 18 April, 1956.