Kathmandu, 10 May 1972
INDIAN COOPERATION MISSION
10 May 1972
Dear Shri PRADHAN,
I have the honour to acknowledge the receipt of your letter of even date, which reads as follows:
“The Agreement between His Majesty’s Government of Nepal and the Government of India signed on the 19th December 1966 for the construction
of the Eastern portion of the East West Highway of Nepal was in force till 31st March 1971. While most of the work on the project
was completed by 31st March 1971, there are still some works left in respect of certain bridges and river training besides soling
and carpeting of some sections of the road. According to present indications, the remaining works would be completed by 31st March
1973. His Majesty’s Government of Nepal would be grateful if the Government of India agree to the extension of the Agreement and
also the extension of the period of utilisation of the aid of Rs. 22.00 Crores I.C. provided in Article 1 of the said Agreement,
till 31st March 1973 by which date the project is expected to be completed. It is further understood that in view of the provisions
of hard-shoulders along this Highway at a cost of Rs. 63.40 lakhs IC, the overall ability of the Government of India would increase
from Rs. 2200.00 lakhs IC to Rs. 2263.40 lakhs IC.”
I am to state that in view of the request of His Majesty’s Government, the Government of India agree to extend the Agreement for
the construction of the Eastern portion of the East-West Highway of Nepal, as also the period of utilisation of the aid of Rs. 2263.40
lakhs I.C. till 31st March 1973.
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 1st April 1971.
Please accept the assurances of my highest consideration.
Shri B B PRADHAN
Ministry of Finance
His Majesty’s Government