Kathmandu, 24 June 1968
Indian Co-operation Mission
24th June 1968
Dear Dr THAPA
I have the honour to acknowledge the receipt of your letter of even date which reads as follows :
“Shri S N Das, Joint Secretary, His Majesty’s Government of Nepal, in his letter No. PO23/2-3-Tel-7/7079 dated February 5, 1967, conveyed
His Majesty’s Government of Nepal’s request for the assistance of the Government of India to establish a teleprinter circuit link
between Kathmandu and Calcutta. I understand that the Project will cost approximately Rs. 3.43 lakhs in Indian currency. His Majesty’s
Government of Nepal will be grateful if the Government of India take early steps for the installation of the link and make available
the necessary funds that the overall aid funds to be made available to Nepal during the period April 1, 1966 to March 31, 1971.
His Majesty’s Government of Nepal would be pleased to provide all the necessary facilities with a view to expediting the completion
of the Project and in particular His Majesty’s Government of Nepal will :
(a) provide suitable site with built-up accommodation required for the Project at Kathmandu;
(b) ensure that the goods, materials, equipment, machinery and transport brought into Nepal or moved from one place to another within
Nepal, are exempt from all duties, taxes, and import licensing requirements;
(c) if required, provide foreign exchange needed for the purchase of machinery, equipment, vehicles, stores and other materials not
manufactured in India against allotment made in Indian currency by the Government of India;
(d) ensure expeditious grant of licences, permits and other such authorisations to enable the Project authorities and their contractors
to executive work/relating to the Project;
(e) assume, in the event of legal action arising from activities undertaken in pursuance of this Project, full responsibility for
the defence of such action in Nepal and will assure immunity, from garnishment or any other legal process, of title to all contributions
made for or property derived from the execution of the project; and
(f) take over the installations within Nepal on completion, as certified by the competent authority and undertake to make provision
for the operation of the link and to keep it in proper maintenance.
2. It is agreed that the Government of India will arrange the execution of the Project through the Posts and Telegraphs Department
of the Government of India.
Please accept the assurances of my highest consideration.”
I have the honour to confirm that the above correctly sets out the understanding reached between us. Your letter and my reply thereto
shall constitute an understanding between the Government of India and His Majesty’s Government of Nepal, which shall come into force
with effect from today’s date.
Accept, Sir, the assurances of my highest consideration.
Dr BHEKH B THAPA
Ministry of Finance
His Majesty’s Government