| TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF INDIA AND THE U.S.S.R. Moscow, 16 November 1958 The Government of india and the Government of Union of Soviet Socialist Republics, animated by the desire to develop trade relations
and to increase the volume of trade between them to as high a level as possible, have agreed upon the following Article I 1. Both the Governments will, in every possible way, develop and strengthen the trade relations between the two countries on the principles
of equality and mutual benefit. They will study, and with utmost goodwill take decisions on, the suggestions which either of them
would like to present for consideration of the other with the purpose of achieving closer economic relations. 2. For the goods imported and exported from one country to the other, both the Governments pledge themselves to grant maximum facilities
allowed by their respective laws, rules and regulations. In any case the said goods will enjoy full most favoured-nation treatment
with respect to customs duties and charges of any kind imposed on imports or exports or in connection therewith, with respect to
the methods of levying such duties and charges, and with respect to rules, formalities and charges in connection with customs clearing
operations. Further, the two countries will accord to each other in respect of the issuance of import and export licences treatment no less favourable
than that granted to any other country in the Soft Currency Area or to any other country with which the contracting country makes
payments in its own national currency. Any advantage, favour, privilege or immunity granted by either of the Contracting Parties to any product originating in the territory
of a third country or destined for its territory, shall be accorded immediately and unconditionally to the like product originating
in the territory of either of the Contracting Parties or destined to be imported into its territory. 3. The provisions of the above clauses shall not, however, apply to the grant or continuance of any (a) advantages accorded by either Government to contiguous countries with the purpose of facilitating frontier traffic; (b) preferences or advantages accorded by India to any third country and existing on December 2nd, 1953, or in replacement of such
preferences or advantages that existed prior to the 15th of August, 1947. Article H The export of goods from India to the U.S.S.R. and from the U.S.S.R. to India during the period of validity of the present Agreement
will be carried out in accordance with schedules to be agreed upon between the two Governments for every calendar year before the
beginning of the year to which they refer. The goods agreed upon for export from the U.S.S.R. to India and from India to the U.S.S.R.
during the first year of the present Agreement are set out in schedule 'A' and 'B' respectively. Article III The import and export of the goods stipulated in Article II will be carried out in accordance with the export, import and foreign
exchange regulations in force from time to time in either country and on the basis of contracts to be concluded between Indian physical
and juridical parties, including Indian State-owned Organisations, on the one side, and Soviet foreign trade organisations, on the
other. Article IV The provisions of the present Agreement do not affect the rights of the Indian physical and juridical parties and the Soviet foreign
trade organisations to conclude between themselves subject to the import, export and foreign exchange regulations, in force from
time to time in both the countries, commercial transactions for the import or export of goods not included in the schedules referred
to in Article II. Article V The two Governments will render all possible assistance for the e,xport and import of the goods mentioned in Article II, and those
to be exported and imported under the transactions referred to in Article IV. Article VI 1. All payments between India and the U.S.S.R. described in Article VII, will be effected in Indian rupees. 2. For this purpose the State Bank of the U.S.S.R. will maintain a Central Account with the Reserve Bank of India and one or more
accounts with one or more Commercial Banks in India authorised to deal in foreign exchange. 3. (a) The Central Account will be used for depositing the rupee holdings, for replenishing the accounts with the Commercial Banks,
and for operating transactions relating to technical credit. (b) The Accounts with the Commercial Banks in India will be used for carrying out all other operations mentioned in Article VII. 4. (a) The Central Account will be replenished by transfers of funds from the accounts with the Commercial Banks mentioned in Clause
2, and by receipts under the technical credit. (b) The Accounts with the Commercial Banks will be replenished by transfers of funds from other similar accounts mentioned in Clause
2 and from the Central Account. (c) Payments permitted in accordance with the Indian Foreign Exchange Control Laws and Regulations and the rules made thereunder,
will be effected on the basis of this Agreement to the physical and juridical persons residing in the U.S.S.R., by the physical and
juridical persons residing in India, by crediting the amount of such payments to the said (Accounts) of the State Bank of the U.S.S.R.
with the Commercial Bank (Banks). Likewise the payments to be effected by the physical and juridical persons residing in the U.S.S.R.
to the physical and juridical persons residing in India, will be effected by debiting the said account (accounts) with the Commercial
Bank (Banks) in India. Article VII The following payments will be effected through the accounts mentioned in Article VI : (a) payments for goods exported and imported in accordance with this Agreement; (b) payments connected with commercial transactions and covering insurance, freight, port charges, storage, forwarding expenses and
bunkering; (c) payments for distribution of films; (d) payments for technical assistance, including maintenance of experts and technicians and for technical and other training; (e) payments of expenses connected with tours of a commercial and cultural nature and of official delegations; (f) payments of the expenses for the maintenance of the Embassy of India in the U.S.S.R. and of the Embassy and Trade Representation
of the U.S.S.R. in India; (g) any other payments on which agreement may be reached between the Reserve Bank of India and the State Bank of the U.S.S.R. Article VIII Any balances in the Rupee Accounts of the State Bank of the U.S.S.R. or any debt of the State Bank of the U.S.S.R. in connection with
the grant of technical credit will upon expiry of this Agreement, be used during the ensuing 6 months for the purchase of Indian
or Soviet goods, as the case may be, or will be settled in such other way as may be agreed upon between the two Parties. Article IX Mercantile ships of either country will, while entering, staying in or leaving the ports of the other country, enjoy the most favoured
facilities granted by their respective laws, rules and regulations to ships under third countries' flags. This principle shall not,
however, apply to ships engaged in coastal navigation. Article X Both the Governments will render all possible assistance for the shipment of the goods to be exported or imported under this Agreement
from one country to the other as far as possible in Indian and Soviet ships. Article X1 In order to facilitate the implementation of this Agreement the two Governments shall consult with each other as and when necessary,
in respect of matters connected therewith. For this purpose the representatives of the two Governments will meet, on request by either party, at a place and time to be mutually
agreed upon, the meeting being held on a date within 45 days of the request. Article XII The present Agreement will come into force on January 1st, 1959 and will remain valid for a period of five years. The Agreement can be extended or renewed by negotiation between the Parties to be commenced three months prior to its expiry. The current Trade Agreement between the Government of the Union of Soviet Socialist Republics and the Government of India, dated December
2nd, 1953 is extended up to 31st December, 1958. DONE in Moscow on the 16th day of November, 1958 in two original copies, each of them in Russian and English languages, both texts
being equally authentic. By Authority of the Government of India. Sd/- K.P.S. MENON. By Authority of Union of Soviet Socialist Republics. Sd./- POTOLICHEO. (Enclosure to the Trade Agreement between the Government of India and the Government of the USSR concluded on the 16th of November,
1959) SCHEDULE 'A' GOODS FOR EXPORT FROM THE U.S.S.R. TO INDIA IN 1959 Industrial plant and equipment Heavy electrical plant and energetical equipment; turbines, generators, transformers, switchgears,
etc. Construction equipment for irrigation & power projects Oil prospecting and drilling equipment Mining equipment: cutting
machines, rock-loading machines, coal combines, scrapper winches, perforators, minerspicks (pneumatic) and others Road building equipment:
scrappers, bulldozers, ditchers, planners, rollers and others Single and multi-shoveled excavators, auto-cranes Machine tools and
pressing and forging equipment accessories and metal-cuttting instruments, including hard alloy points or tips Tractors, agricultural
machinery and implements Textile machinery Polygraphical equipment: printing and type-setting machines and others. Ball and Roller Bearings Building machines: concrete mixers, solution mixers, lime-slackening machines, electro-vibrators and other
Compressor installations, locomobiles, pumps Gas cutting and gas and electric welding equipment and accessories Wood-working machines Shoe-industry equipment Food-industry equipment Electrical instruments, apparatus and appliances Hand-pneumatic and electrical tools Abrasives and instruments Testing-machines, laboratory equipment, control measuring apparatus
and instruments Microscopes, optical apparatus, geodetic and seismographic instruments Photographic and cinematographic equipment
Medical instruments Industrial sewing machines Motor cycles Miscellaneous equipment, including spares for tractors, agricultural,
textile and printing machinery Iron and steel manufactures Ferro-alloys. Lead, Tin, Zinc Aluminium, ingots and rods Platinum Cables
Sulphur Asbestos, raw Wood pulp Paper of different kinds, including newsprint Fertilizers: Ammonium Sulphate; Ammonium Nitrate Chemicals
Caustic Soda Dyestuffs Isotopes Drugs and medicines Crude petroleum Petroleum products: benzene, kerosene, diesel fuel, mazut lubricating
oils Timber Sleepers (Railways) Refractories (Bricks) Foodgrains (wheat, barley, Cinematographic films (exposed) Printed matter,
including books and periodicals. SCHEDULE 'B' GOODS FOR EXPORT FROM INDIA TO THE U.S.S.R. IN 1959 Tea Coffee Spices: black pepper, cardamom, ginger and others Cashewnuts Vegetable oils, including castor oil Hides and skins, raw
Hides and skins, tanned and semi-tanned Wool, raw Tobacco Shellac Mica Raw materials for medicines Chemicals Essential oils: sandalwood
oil, lernongrass oil and palmrosa oil Woollen cloth Jute manufactures Leather and leather manufactures, including shoes Coir and
coir products Handicrafts Opium, raw Animals, living Cinematographic film(exposed) Printed matter, including books and periodicals.
LETTERS No. 1. 16th November, 1958 Dear Mr. SEMICHASTNOV, With reference to the Trade Agreements between the Government of India and the Government of the Union of Soviet Socialist Republics
concluded today, I have the honour to state that the understanding reached between ourselves is set out below : With a view to developing further the trade relations between the two countries, the two Governments agree to provide facilities for
strengthening and expanding the business contacts between Indian State owned organizations and Soviet foreign trade organizations
on a basis of mutual benefit and observance of the commercial interests of the parties concerned. Accept, Mr. Semichastnov, assurances of my highest consideration. Sd./- K.B. LALL. MR. I.F. SEMICHASTNOV,
Deputy Minister of Foreign Trade of the Union of Soviet Socialist Republics, Moscow. No. 2. 16th November, 1958 Dear Mr.SEMICHASTNOV, Referring to the negotiations which took place between the Ministry of Commerce and Industry, Government of India and the Trade Representation
of the USSR in India, I have the honour to confirm the understanding reached on the following : Besides the persons indicated in paragraph 1 of the letters exchanged between the Secretary of the Ministry of Commerce and Industry,
India and the Ambassador of the USSR in India, dated December 2, 1953, the Third Deputy Trade Representative ranked as First Secretary
(Commercial) of the Embassy of the USSR in India will be taken on the staff of the Trade Representation of the U.S.S.R. in India.
The said Deputy Trade Representative will enjoy all the immunities and privileges in conformity with paragraph 2 of the mentioned
letters. Accept, Mr. Semichastnov, the assurances of my highest consideration. Sd./- K.B. LALL. MR. I.F.SEMICHASTNOV, Deputy Minister of Foreign Trade of the Union of Soviet Socialist Republics, Moscow. SCHEDULES REVISED (1960) EXCHANGE OF LETTERS, NEW DELHI, 14 MARCH, 1960 No. 1. GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 14th March,1960 Dear Mr. SPANDARIAN, With reference to Article II of the Trade Agreement between the Government of the Union of Soviet Socialist Republics and the Government
of India concluded on the 16th November, 1958 and to recent discussion in connection with Schedules 'A' and W attached to the Agreement,
I have the honour to confirm the understanding reached between ourselves that the Schedules shall remain in force for a further period
of one year ending December 31, 1960 with the following additions : Schedule 'A.' - Aeroplanes, helicopters, utility/stop watches, surgical and optical instruments. Schedule 'B' - Woollen and knitted wear, sports goods, carpets, cotton fabrics, fruits, raw jute. Accept, Mr. Spandarian, the assurances of my highest consideration. Yours sincerely, Sd./- K.B. LALL Additional Secretary to the Government of India. MRN.B. SPANDARIAN,
Head of the Department of the Ministry of Foreign Trade of the Union of Soviet Socialist Republics, NEW DELHI. No. 2. GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 14th March, 1960 Dear Mr. SPANDARIAN, I have the honour to confirm that having regard to the development of trade between the USSR and India, more specially in items originating
from-or required in southern areas of India, in the course of the discussions for the further development of trade between the two
countries. in 1960, it was agreed upon that the Trade Representation of the USSR in India will set up its branch in Madras on the
same basis as is set out in respect of the Bombay and Calcutta branches in accordance with letters exchanged on the 2nd December,
1953 between the Ambassador of the USSR in India and the Secretary to the Ministry of Commerce and Industry, Government of India.
Accept, Mr. Spandarian, assurances of my highest consideration. Yours sincerely, Sd./- K.B. LALL Additional Secretary to the Government of India. MR.V.B. SPANDARIAN, Head of the Department of the Ministry of Foreign Trade of the Union of Soviet Socialist Republics, NEW DELHI.
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