| EXCHANGE OF LETTERS BETWEEN INDIA AND AFGHANISTAN FOR
THE DEVELOPMENT OF TRADE New Delhi, 14 June 1957 Dear Mr. LALL, In the discussions we had with you, we reviewed the development of Indo-Afghan trade in terms of the Treaty of Friendship and Commerce
between the two countries, and we reached certain conclusions which I have the honour to place on record in the succeeding paragraphs.
2. The two Governments reaffirm their desire to promote the trade between their respective countries on the basis of mutual advantage.
3. The two Governments agree to use their endeavours, within the framework of their respective import, export and foreign exchange
regulations, to achieve a balance in the trade between the two countries. 4. In particular, in terms of Article 15 of the Treaty between the Royal Kingdom of Afghanistan and the Republic of India, the two
Governments agree to give special transit facilities for trade on the following basis; (a) Subject to a ceiling that may be agreed
in this behalf, Import and Export Control authorities in Afghanistan and in India will exempt from the procedure of quota licensing
the traders registered in Afghanistan, on the one hand, and approved parties in India who have participated in Indo-Afghan trade
during the preceeding four years ending 30th June 1956, on the other, and provide for them reasonable facilities to export and import
fruits (both dry and fresh) and asafoetida to the mutual advantage of the two countries. The two governments agree to consult each
other from time to time with a view to taking steps to ensure that this system of trading does not lead to the concentration of trade
in a few hands. (b) Payments will be effected in accordance with the procedure laid down in paragraph 5 of this Agreement, (c) The
Government of Afghanistan will correspondingly afford facilities for the import from India of the goods listed in Schedule 'A' so
as to balance the trade between the two countries. 5. Payments for goods from Afghanistan will be made by the importers either in accordance with E.P. and E.P. 1 procedures or to a
special rupee account to be opened by an Afghan Bank authorised by the Government of the Royal Kingdom of Afghanistan in this behalf
with any commercial bank in India of their choice. 6. I shall be grateful if you will confirm that the above correctly sets out the understanding reached between us. Yours sincerely,
(Sd.) M.R. YOUNOSSI Shri K.B. LALL, I.C.S., Joint Secretary, Ministry of Commerce and Industry, New Delhi. -------------------------- GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 14th June, 1957 Dear Mr. YOUNOSSI, I write to acknowledge the receipt of your letter of today's date 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. M.R. YOUNOSSI, Esqr. Leader Afghan Trade Delegation New Delhi.
SCHEDULE 'A' 1. Cotton textile and wearing apparel. 2. Tea, green and black. 3. Bidies and other tobacco manufactures. 4. Spices. 6. Cottage Industries
and handloom products. 6. Furnishing fabrics. 7. Jute manufactures. 8. Art silk piecegoods and apparel. 9. Woollen manufactures.
10. Leather and leather goods, including footwear and haberdashery. 11. Films (exposed) - *12. Machinery of all kinds. *13. Building
materials 14. Chemicals, pharmaceuticals, and hospital requirements. *15. Rubber goods like tyres, tubes, hose, sheets etc. *16.
Double wheeled conveyances. *17. Spare parts. * 18. Tele-communications and electric goods. *19. Paper and stationery. 20. Sanitary
goods. 21. Household goods, and appliances. *22. Aluminium goods. 23. Paints and varnishes. 24. Toilet requirements. *25. Iron and
steel goods. 26. Yarns and Threads. 27. Sugar. * The Rupee account will be drawn upon for the purchase of these commodities to the
extent of Rupees 36 lakha (Rupees thirty-five lakhs) only during the year 1957-58.
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