Indian Treaty Series

New Delhi, 28 October 1961

The Government of India and the Government of Ceylon,

BEING desirous of maintaining on an enduring basis and of further developing the trade between the two countries,

HAVE resolved to conclude a Trade Agreement, and

HAVE agreed as follows

Article I

The two Contracting Parties, recognising the needs and requirements of their respective countries in the context of their developing economies, undertake; on the basis of mutual advantage, to maintain, as far as is practicable the traditional pattern of trade hitherto existing, and to explore all possibilities of expanding trade.

Article II

Each Contracting Party shall within the framework of its laws and regulations, afford all facilities for the importation of goods produced in the country of the other Contracting Party.

Each Contracting Party shall give full consideration to the 91 suggestions made by the other Party facilitating the export and import of specific commodities.

Article III

In recognition of the changing patterns of production and consumption resulting from the fruition of the economic development plans of India and Ceylon, the two Contracting Parties undertake to explore, through consultation from time to time, the possibility of trading in new goods.

Article IV

The two Contracting Parties shall endeavour their utmost to maintain the volume of the trade between their respective countries at the highest possible level having due regard to the changing patterns of production and consumption.

Article V

The two Contracting Parties will use their best endeavours to promote the development of shipping of both countries and, in particular, shall accord to the ships sailing under the flag of each country while entering, staying in or leaving the ports of the other country, all facilities consistent with their respective Laws and Regulations.

The above arrangements shall not apply to any concessions made to ships engaged in the coastal trade of either country.

Article VI

This Agreement shall come into force provisionally on the date of its signature by the accredited Representatives of the two Contracting Parties, and finally on its ratification according to the constitutional procedures prevailing in their respective countries. It shall remain in force until it is modified or terminated by either Contracting Party on giving three months' notice to the other Party.

DONE at New Delhi on Saturday, the day of October 1961, in two original -copies in English, both of which are authentic.

For the Government of India

Sd/

K.C. REDDY,
Minister of Commerce and Industry, Government of India.

For the Government of Ceylon

Sd/-

T.B ILANGARATNE
Minister of Commerce, Trade, Food and Shipping, Government of Ceylon.

New Delhi,
28th October, 1961

Dear Mr. JOSHI,

I have the honour to acknowledge the receipt of your letter of October 28, 1961 which reads as follows :

"As a result of our discussions during the last few days relating to promotion of Indo-Ceylon trade, it has been agreed as follows :

(1) The Government of Ceylon shall take steps to ensure that remittances due to Indian parties under the export contracts relating to exposed cinematographic films from India shall be freely allowed, and to this end, if necessary, the Government of Ceylon may arrange for the examination of the terms of .,the contract prior to the conclusion of such contracts.

(2) The Government of Ceylon will examine the feasibility of importation of larger quantities of cement, motor vehicles, railway equipment And telephone equipment from India into Ceylon. In order to facilitate the import of capital goods including motor vehicles, railway equipment and telephone equipment from India into Ceylon, the Government of India will consider favourably, proposals -from Indian parties for such supplies being made on deferred payment basis.

(3) With regard.to the import of dried fish from India into Ceylon the Government of Ceylon agree that the following steps will be taken for facilitating trade

(a) The prices of the different varieties of dried fish will be fixed or varied from time to time in consultation with the representatives of the Government of India.

(b) Purchasing organisations will be set up at convenient Indian ports of shipment.

(c) The Government of Ceylon will take steps to ensgre payment within a, period of 45 days from the date of receipt of fish in Ceylon. The Government of Ceylon will also arrange before the end of November 1961, for the remittance in full of all outstanding claims at present pending in respect of consignments already despatched.

2. I shall be grateful if you will confirm that the above correctly sets out the understanding reached between us."

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

Yours sincerely,

Sd/- K ALVAPPILLAI

Shri D.S. JOSHI,
Additional Secretary,
Ministry of Commerce and Industry, Government Of India,
New Delhi.

New Delhi 28 October, 1961

Dear Mr. JOSHI,

I have the honour to acknowledge the receipt, of your letter of October 28, 1961 which reads as follows:

"During the course of our discussions on Indo-Ceylon. trade during the last few days, the Ceylon delegation recognised in principle the need for a review of the existing procedure for the grant of visa facilities to Indian businessmen wishing to visit Ceylon for booking of orders with importers and suggested that the matter should be pursued through diplomatic channels.

I shall be grateful if you will confirm that the above correctly sets out the understanding reached between us."

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

Yours sincerely,

K. ALVAPPILLAI

Shri D.S. JOSHI,
Additional Secretary,
Ministry of Commerce and Industry, Government of India,
New Delhi.