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 No. 2/AIR/5 of even date which reads as follows :
The Agreement between His Majesty’s Government and the Government of India for the development of Airport was in force upto March
31, 1966. It is understood, however that although the bulk of the work according to the Schedule of Project and Works appended to
the Agreement, have been completed by that date, some work, particularly in respect of Biratnagar Airport, remains to be completed
beyond that date. The completion of this work, along with some minor additions at the other Airports, as mutually agreed upon, will
cost about Rs.13 Lakhs I.C. His Majesty’s Government will be grateful if the Government of India agree to continue their assistance
to His Majesty’s Government for the completion of the Projects and make available the necessary funds from the overall aid funds
to be provided to Nepal during the period April 1, 1966 to March 31, 1971. His Majesty’s Government would be pleased to continue
to extend all the facilities that were provided for in the said Agreement for the completion of the Projects”.
2. I am to state that, on the basis of the assurances given by His Majesty’s Government, the Government of India agree to extend further
assistance not exceeding Rs.13 lakhs I.C. during the period April 1, 1966 to March 31, 1971 for the completion of the works on the
Airports already taken up under Indian Aid to Nepal, along with the minor additions subsequently agreed to.
3. I have the honour to confirm 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