Indian Treaty Series

Kathmandu, 10 May, 1972

Rajeshwar Prasad, I.A.S.
Director
INDIAN COOPERATION MISSION
NEPAL
No.
10th May, 1972

Dear Shri PRADHAN,

I have the honour to acknowledge receipt or your letter of even date which reads as follows :-

"I had in my letter No. EO22/1724 dated 23rd March, 1966, conveyed His Majesty's Government of Nepal's request to seek assistance of the Government of India for implementing the programme of geological and mineral investigation in Nepal. During subsequent discussions on this matter His Majesty's Government had specified that the assistance to be provided by the Government of India should be in the form of technical personnel up to eight in number with a provision to adjust the number by mutual agreement. His Majesty's Government had also reached understanding on the following arrangements, in particulars, for the utilization of the service of the technical personnel to be deputed by the Government of India.;

(i) The technical staff to be provided by the Government of India shall consist of Geologists, Geophysicists, Mining Engineers, Diamond Drillers, Chemists, Geochemists, etc. as may be agreed upon, from time to time between the Government of India and His Majesty's Government.

(ii) The programme shall be executed by the Nepal Geological Survey, Ministry of Industry and Commerce, His Majesty's Government of Nepal.

(iii) The technical personnel deputed by the Government of India shall function under the direction of the Director, Nepal Geological Survey.

(iv) The senior most officer of the technical team provided by the Government of India will function as Adviser to His Majesty's Government in respect of the programme.

(v) The technical personnel provided by the Government of India for geological and mineral surveys in Nepal shall be exempted from the payment of customs duty, taxes and levies of all kinds of Nepal.

(vi) His Majesty's Government of Nepal shall provide the necessary security arrangements for the protection of the personnel and the material at the sites of works whenever needed.

(vii) The expenditure in regard to the salary and other allowances to the technical staff to be provided by the Government of India shall be met out of the aid funds to be made available by the Government of India for execution of the programme.

His Majesty's Government of Nepal would need the services of the personnel to be deputed by the Government of India upto September 30, 1970. I understand that the provision of technical assistance by the Government of India on the above basis would cost approximately Rs.11.06 lakhs I.C. His Majesty's Government of Nepal would be grateful if the Government of India agree to provide necessary funds from the overall aid funds to be made available to Nepal for the above mentioned programme. His Majesty's Government of Nepal understand that the equipment and stores which become surplus on the termination of the programme would be available for use by them."

2. I am to state that on the basis of the request and assurance conveyed by His Majesty's Government, the Government of India agree to extend assistance not exceeding Rs.11.06 lakhs I.C. during the period April 1, 1996 to September 30, 1970, for meeting the expenditure in regard to the technical team which has since been provided by the Government of India to His Majesty's Government of Nepal. The Government of India further agree to make available the equipment and store which have become surplus on the termination of this programme as listed in the annexure to this letter.

3. 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 be deemed to have come into force with effect from April 1, 1966.

Accept the assurances of my highest consideration.