| EXCHANGE OF LETTERS BETWEEN THE GOVERNMENTS OF INDIA AND DEMOCRATIC REPUBLIC OF VIET NAM REGARDING DEVELOPMENT OF TRADE Hanoi, 22 September 1956 MINISTRY OF COMMERCE DEMOCRATIC REPUBLIC OF VIET NAM
Independence-Freedom-Happiness Hanoi, the 28th July, 1956 My dear Mr. K.B. LALL, AS a result of the discussions that have taken place recently in New Delhi between the Delegation to the Indian Industries Fair from
the Democratic Republic of Viet Nam and the Ministry of Commerce and Industry of India, certain conclusions have been reached which
it is considered desirable to place on record, viz.- (1) Both parties desire to develop and strengthen the trade relations between the two countries on the basis of equality and mutual
benefit. With a view to promoting closer economic relations, the two parties agree to give full consideration to, and take decision
on, the suggestions that may be made by either party from time to time for stimulating the flow of trade. (2) The two contracting parties agree that the import and export of goods into and from either country would be regulated in accordance
with the laws of the two countries for the time being in force. Subject to these laws and regulations the two countries agree to
grant adequate facilities for the import and export of goods mentioned in the attached Schedules "A" and "B",
and to use their best endeavours to foster contracts between State trading organisations of the Democratic Republic of Viet Nam and
Indian firms settled in the Democratic Republic of Viet Nam on the one hand and the State Trading Corporation of the Government of
India and firms in India on the other. (3) Besides commodities mentioned in Schedules "A" and "B", contracting parties are not precluded from facilitating
trade in other commodities in conformity with Import, Export and Foreign Exchange regulations of their respective countries. (4) The Democratic Republic of Viet Nam shall for the purpose of import and export licensing be included under the existing Indian
law in the soft currency area and so long as this position endures, applications for licensing the import of goods from the Democratic
Republic of Viet Nam to India and export of goods from India to the Democratic Republic of Viet Nam will be dealt with, in accordance
with the licensing procedure in force from time to time equally favourably as compared with any other country included in the soft
currency group. (5) The Democratic Republic of Viet Nam shall on its part treat the imports and exports of goods from India on the same basis as any
other country with whom the Democratic Republic of Viet Nam has entered into bilateral trade agreement. (6) The two contracting parties agree that payments relating to commercial and non-coininercial transactions between Viet Nam and
India may be effected in Indian rupees or in Pounds Sterling, as may be mutually convenient. For the purpose of facilitating such
payments, the National Bank of the Democratic Republic of Viet Nam will maintain an account with a commercial bank in India authorised
to deal in foreign exchange. In addition the National Bank of the Democratic Republic of Viet Nam -may maintain another account with
the Reserve Bank of India. All financial transactions to be financed in rupees will take place, through the account maintained with
the commercial bank. The account with the Reserve Bank of India will be used only for replenishing the balance with the commercial
banki3 as and when necessary. Payments permitted under the Indian Foreign Exchange Regulations to be made by residents of India to
the residents of Viet Nam will be effected by crediting the amount of such payments to the above-mentioned account with the commercial
bank. Payments to be made to the residents in India by persons resident in Viet Nam and permitted by Foreign 4 Exchange Regulations
of the Democratic Republic of Viet Nam will be effected by debiting the said account with the commercial bank. (7) 'The Account with the Reserve Bank of India can be replenished in one of the following ways : (1) by sale of Sterling to the Reserve
Bank of India; Vietnam D.R. (2) by transfer of rupee from the rupee account of a third country maintained in India. (8) The rupee account maintained by the National Bank of Viet Nam with the Reserve Bank of India or with the commercial bank authorised
to deal in foreign exchange will be convertible on demand into Sterling at any time at the Bank's usual selling rate for Sterling
as fixed from time to time by the Indian Exchange Bank's Association. (9) The Democratic Republic of Viet Nam may set up in India a Trade Representation headed by a Trade Representative and having a Deputy
Trade Representative. In India they will be given the necessary facilities for the proper discharge of their responsibilities. On
the other hand, the Government of India may if they so desire appoint a representative in the Democratic Republic of Viet Nam, to
look after their trade interests in this country, who will be entitled to the same courtesies and facilities as are extended to the
Trade Representative of the Democratic Republic of Viet Nam in India. (10) The two contracting parties agree to consult each other on questions that may arise in the course of the implementation of the
present Agreement. (11) This Agreement will come into operation from the date of its signature and will remain in force for a period of 3 years. It can be extended or renewed by negotiations between the two contracting parties to be commenced three months prior to its expiry.
The Government of the Democratic Republic of Viet Nam have agreed upon the above understanding. We request you to confirm by letter
the above, so that both parties may implement it as soon as possible. Yours sincerely, Sd/- LY BAN Chief of Foreign Trade Department, Ministry of Commerce, Government of the Democratic Republic of Viet Nam, Hanoi. K.B LALL, Esq. I.C.S., Joint Secretary to the Govt. of India, Ministry of Commerce and Consumer Industries.
GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND CONSUMER INDUSTRIES New Delhi, the 22nd September, 1956 My Dear Mr. LY BAN, I write to acknowledge receipt of your letter dated the 28th July, 1956, which reads as follows : (Not reproduced) I confirm that
the above correctly sets out the understanding reached between us. Yours sincerely, Sd/- K.B. LALL. Joint Secretary to the Government of India, Ministry of Commerce and Consumer Industries. LY BAN, Esq., Chief of Foreign Trade Department, Ministry of Commerce, Government of the Democratic Republic of Viet Nam, Hanoi. SCHEDULE EXPORTS FROM INDIA TO VIET NAM 1. Engineering Goods: Diesel engines Pumps Sewing machines and parts Bicycles and parts Machine tools Agricultural implements Sugar
cane crushers Printing machinery Textile machinery Food machinery Pottery moulding machines Hats and clothes making machines Paper
and pulp making machines Rice flour and oil pressing machinery Automobiles and their parts 2. Electrical Goods: Bulbs Radio receivers Electric fans and their parts Torches Batteries and motors 3. Textiles: Cotton piecegoods Woollen piecegoods Silk rayon and nylon piecegoods Hosiery Handloom. cloth Jute manufactures 4. Household and Building Requirements: Utensils Cooking ranges Heaters Electrical fittings Tiles Hurricane lanterns Kerosene stoves
Crockery Padlocks Cutlery 5. Foodstuffs: Tea Coffee Spices Fish Fruits Confectionery 6. Oil and oilseeds: Hydrogenated oils i.e. "vanaspati" Vegetable oils and seeds Essential oils and oil seeds 7. Miscellaneous: Tobacco raw and unmanufactured Tobacco manufactured Cigarettes and biris Chemicals, drugs and medicines Soaps and
toilet requisites Paints, pigments and varnishes Coir and coir products Lac and shellac Mica Plastic goods and toys Sports goods
Glassware including tableware; glass bottles and bangles Steel furniture Hospital appliances Scientific instruments of all types
Leather manufactures including boots and shoes Rubber manufactures. SCHEDULE 'B' EXPORTS FROM VIET NAM TO INDIA 1. Animal Products: Livestock: home bred animals. Animal products such as - Duck feathers, bees wax
and honey Medical stuffs extracted from animals 2. Forest Products: Timber Cane (all sizes) 3. Plantation products: Seeds - oils and resins: Wood oil Pine resin Colophon Otherplantation production: Saffron Dried pigments for
tanning 4. Sea Products: Dried fish of all sorts Fish Sauce 5. Foodstuff: Flour and Grains Maize and peas Dried areca, nuts Fruits (fresh and dried), oranges, lemons, bananas 6. Handicraft articles:
Home use articles: Grass mats Grass rugs Other grass articles Bamboo and cane articles Art articles: Inland articles Sculptured articles
Laccpjered articles Shell buttons Sports articles 7. Minerals: Mineral ores and manufactured products: Cement Graphite Steatite Limestone
White sand (silicate) Porcelain clay. AGREEMENT EXTENDED UPTO 1962 EXCHANGE OF LETTERS, HANOI, 6 JANUARY 1960 CONSULATE GENERAL OF INDIA, HANOI
No. F. 16 (25)-CG 58-A. January 6, 1960 (Pausa 16, 1881) Dear Mr. PHAM CHUNG, You will recollect our conversation of 7th November, 1959 in regard to the D.R.V.N. Government's desire to extend for another three
years, from September 22, 1959, the terms of the agreement for the development of trade relations between India and the D.R.V.N.
as contained in Shri K.B. Lall's (then Joint Secretary to the Government of India, Ministry of Commerce and Consumer Industries)
acknowledgement letter of September 22, 1956, to Mr. Ly Ban (then Chief of Foreign Trade Department, Ministry of Commerce, Government
of the D.R.V.N.). I am now authorised by the Government of India to agree to the D.R.V.N. Government's request of the extension of
the terms and schedule confirmed in Shri K.B. Lall's letter of September 22, 1956, to Mr. Ly Ban for a period of another three years
commencing from September 22, 1959. Please acknowledge receipt. Yours sincerely, (Sd.)A.G. MENESES, Consul-General. Mr. PHAM CHUNG. Chief of the Asia-Africa Department, D.R.V.N. Ministry of Foreign Trade, Hanoi.
MINISTRY OF FOREIGN TRADE BO NGOAI THUONG VIET NAM DAN CHU CONG HOA No. 107/BNT-TB. Dear Mr. A.G. MENESES, January 9, 1960 I write to acknowledge receipt of your letter No. F. 16(25)-CG 58-A, dated 6-1-1960 which reads as follows (Not reproduced)
I am authorised by the Government of the Democratic Republic of Viet Nam to confirm the above understanding reached between the Government
of the Democratic Republic of Viet Nam and the Government of the Republic of India. Yours sincerely, Sd. PHAM CHUNG Chief of the Asia-Africa Dept. Ministry of Foreign Trade, Democratic Republic of Viet Nam. Mr. A.G. MENESES, Consul-General for the Republic of India. Hanoi
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