Indian Treaty Series

New Delhi, 11 August 1959

LETTERS

New Delhi, the 11th August, 1959

Dear Shri LALL,

During our discussions of the last few days we have had an opportunity to review together the development of trade between Afghanistan and India in terms of the Treaty of Friendship and Commerce between the two countries, and have reached certain conclusions which I have the honour to record in the following paragraphs :

1. The two Governments reaffirm their desire to promote trade between their respective countries, and to achieve, within the framework of their respective import-export and foreign exchange regulations, a balance in the trade between the two countries. To this end, the two Governments agree to promote business travel and to take such other steps as may be found to be necessary.

2. In accordance with the provisions of Article 15 of the Treaty between the Royal Government of Afghanistan and the Government of India, the two Governments have agreed to the following

(a) Import and Export Control authorities in Afghanistan and India will provide special facilities to approved importers in India to import from Afghanistan the goods mentioned in Schedule 'A' to this letter;

(b) These facilities will also be extended to such Afghan traders as are included in the list of approved importers;

(c) The number of Afghan importers will be raised to 35 by the inclusion of additional names to be sponsored by the Royal Afghan Government, provided that such persons satisfy the conditions of registration in force in 1958-59;

(d) Import and Export Control authorities of the two countries will endeavour to ensure that trade is not concentrated in a few hands;

(e) Subject to overall balancing of exports and imports and subject to Indian export regulations, reasonable facilities will be accorded by India to facilitate the export from India to Afghanistan of the, articles mentioned in Schedule S' to this letter;

(f) Payment for goods exchanged under this Agreement will be made by importers and exporters in accordance with E.P. and E.P.I procedures. A special self-balancing account will be opened by the Da Afghanistan Bank with the State Bank of India to facilitate transactions other than those put through E.P and E.P.I procedures. Details of the self-balancing account will be settled between the State Bank of India and the Da Afghanistan Bank.

3. It was also agreed that the Government of India will co-operate and afford facilities for the export of Afghan goods through India to other countries.

4. The two Governments will consull each other periodically to review these arrangements with a view to improving upon them and removing any difficulties in the working of this agreement, to the advantage of the two countries.

5. This agreement shall take effect from the 21st of July, 1959 and

shall remain in force for one year thereafter. Unless either contracting party gives notice to the contrary two months prior to the expiry of this agreement, it will automatically be extended by a further period of one year.

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.

SH. K.B. LALL, I.C.S.,

Additional Secretary to the Government of India, Ministry of Commerce and Industry,

New Delhi.

New Delhi, 11th August, 1959

Dear Mr. YOUNOSSI

I write to acknowledge the receipt of your letter of today's date which reads as follows :

(Not printed)

I confirm that the above correctly sets out the understanding reached between us.

Yours sincerely,

(Sd.) K.B. LALL.

H.E. Mr. M.R. YOUNOSSI.
Leader of the Afghan Trade Delegation, New Delhi.

COMMODITIES FOR EXPORT FROM AFGHANISTAN TO INDIA

Fruits (dry and fresh all kinds), Asafoetida, Cummin seeds, Animal and vegetable crude materials, inedible, Spices, Hides and skins, Medicinal herbs (detailed as under):

Textile, Cotton and Woollen , such as :
Cotton and woollen piecegoods, cotton dhoties and sarees, hosiery and knitted garments-woollen, cotton and rayon, Silk, art silk and rayon fabrics; cotton twist and yam, other cotton, woollen and silk manufactures, jute manufactures, Handloom fabrics,

Food:
Confectionery Tea, coffee, spices including pepper, Fish-dried and salted, Fish, prawns-Aried, Preserved mango and other vegetable products, Provisions and oilman's stores, Sago, Tapioca and its products, C ane jaggery/caue jaggery powder (Indian gur),

Agricultural Products :
Hydrogenated oils, i.e., "Vanaspati" or vegetable ghee, Vegetable oils and oilseeds, Essential oils, Tobacco-raw and unmanufactured.

Chemical Products and Soaps:
Chemicals and chemical preparations,

Pharmaceuticals:
Drugs and medicines, Napthalene, Antibiotics, Sera and vaccines, Alkaloids and opium and its derivatives, Soap-toilet and household, Toilet requisites and perfumery, Paints, pigments and varnishes.

Engineering Goods:
Printing machinery, Diesel engines, Pumps driven by diesel engines and electric motors, Sewing machines, Bicycles and their parts, Textile machinery such as carding machinery and weaving looms, Machine tools, Hand tools and small tools, small river crafts, sugarcane crushing machinery, Rice, flour and oil crushing machinery, Ball bearings, Agricultural implements, Automobiles and their parts, Gliders.

Electrical Goods:

Electrical appliances and accessories such as conduit pipes, switches, bells, holders, cut-outs, etc. Electrodes, Electric bulbs and tubes, Generators, portable and fixed, Radio receivers, Electric fan and their parts, Batteries (dry and wet), Electric torch lights, Electric motors, Telephone apparatus, Ebonite sheets, rods and tubes, Cables and wires.

Household and Building & Requirements:

Utensils including stainless steelware, Cooking ranges, heaters, electric iron, toasters, Kettles, etc., Household electrical fittings and fixtures, Roofing tiles, Bricks, Linoleum, Sanitaryware, G. I Pipes and fittings, Manhole cover and plates, Hurricane lanterns, Kerosene stoves, Incandescent oil pressure lamps, Safes, strong boxes and room fittings, Crockery.

Hardware:

Locks and padlocks, Cutlery, Bolts, nuts, screws and hinges, etc., Steel furniture and hospital appliances., Scientific instruments, all types, Weighing machines, Surgical and medical instruments, Steel buckets.

Rubber Manufactures

Tyres and tubes, Other rubber manufactures.

Leather Manufactures :

Boots, shoes and belts, Other leather manufactures Artificial leather goods.

Handicrafts and Cottage Jurlustry Products:

Stationery and paper.

Miscellaneous:

Coir, and coir products, Films, Beer, Dyeing and tanning substances, Lac and shellac, Commercial decorative plywood, Myrobalan and myrobalan extracts, Glassware including tableware, glass bottles and bangles, Artificial porcelain, Synthetic stones, Books and printed matter, Cigarettes, Postage stamps, Refined mineral oils, Bichromates, Sports goods, Opium, Mica and micanite, Firebricks and fireclay, Ropes.