Bonn, 16 February 1954
Representatives of the Government of the Republic of India (hereinafter referred to as the Indian Delegation) and representatives
of the Government of the Federal Republic of Germany (hereinafter referred to as the German Delegation) met in Bonn between January
20th and February 16th, 1954 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 Republic of India and of the Federal Republic of Germany of November
5th, 1952, for a period of one year as from the 1st February 1954, subject to the amendements 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 of 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.
3. The German Delegation stated further that the Government of the Federal Republic were prepared- (a) to authorise, during the period
1st February 1954 to 31st January 1955 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; and (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 case.
4. The German Delegation stated that in addition to the items mentioned in Annex A there were other items which could be imported
from India into the Federal Republic of Germany without quantitative restrictions under regulations published from time to time in
the German Official Gazette. Both Delegations agreed that a list of those items should be attached for information as Annex C to
5. 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.
6. 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 of 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
7. 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.
8. 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 he necessary.
9. 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.
10. 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.
11. The two Delegations agreed that trade payments including incidental costs and other payments permitted by the foreign exchange
regulations of both countries will be effected via accounts kept in accordance with the existing Anglo-German Payments Agreement.
12. 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 experience 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 Ferderal Republic of Germany. Both Delegations agreed that the two Governments
shall co-operate 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. 13. 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 concession as made to
ships engaged in the coastal trade of either party shall not be admissible under the paragraph to 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 trade between the
two countries as is practicable.
14. 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.
15. The two Delegations agreed that pending the conclusion of more permanent arrangements between both countries, the provisions set
forth in paras. 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.
16. The two Delegations agreed that each Government would in accordance with its laws, rules and regulations in force from time to
time, authorise during the validity of the Agreed Minutes import of 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.
17. The two Delegations finally agreed that the German and English texts of the Agreed Minutes of the discussion will be equally authentic.
The Agreed Minutes will remain in force till the 31st day of January 1955 and for such successive periods as may be mutually agreed
upon before their expiry. SIGNED in Bonn on this the 16th day of February 1954.
Sd./- S. DUTT, Ambassador of India, Bonn.
Sd./- A.H. VAN SCHERPENBERG, Leader of the German Delegation.
GOODS OF INDIAN ORIGIN THE IMPORTATION OF WHICH INTO THE FEDERAL REPUBLIC OF GERMANY IS AUTOMATICALLY PERMITTED WITHOUT ANY QUANTITATIVE
TRADE ARRANGEMENTS EXTENDED
EXCHANGE OF LETTERS, 5 FEBRUARY 1955
EMBASSY OF THE FEDERAL REPUBLIC OF GERMANY
New Delhi, 5th February, 1955
Dear Mr. IENGAR, I have the honour to refer to para 17 of the Trade Arrangement between our two countries signed on the 16th February
1954, and to the recent discussions for its renewal. It was agreed during those discussions that pending further negotiations for
its renewal, the Trade Arrangement will continue to operate up to the 31st March, 1955. This extension also applies to the Annexures
A and B. In regard to minimum import quotas mentioned in Annexure B, my Government will grant, in accordance with your wishes, import
quotas amounting to 25 per cent of the stipulated amounts, one-third of which - in view of the fact that the extension of the agreement
would as such cover only two months - should be considered as an advance against quotas to be allocated under the forthcoming agreement.
I shall be grateful for your confirmation of the foregoing.
Yours sincerely, (Sd.) ERNST WILHELM MEYER.
H.V.R. IENGAR, Esq.,
Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi.