Kathmandu, 11 December 1973
P N KAUL
INDIAN COOPERATION MISSION
December 11, 1973
Dear Shri PRADHAN,
I have the honour to acknowledge the receipt of your letter of even date which reads as follows :
“His Majesty’s Government of Nepal are glad to note that the eastern sector of the East-West Highway of Nepal, which was taken up
for construction of the Indian Cooperation Mission under an Agreement signed between His Majesty’s Government of Nepal and the Government
of India on 19th December 1966, is nearing completion. Article 8 of the Agreement envisaged separate arrangements for financial
and technical assistance for the construction of a barrage over the Kamla river, which would also serve as a bridge over the Kamla
river. However, His Majesty’s Government of Nepal have decided to make alternative arrangements for the construction of the barrage,
I am, therefore, to convey His Majesty’s Government’s request to the Government of India through you to take up the construction
of the bridge over the Kamla river. His Majesty’s Government understand that the cost of construction of the bridge would be Rs.1,75,72,000
in Indian currency and that the project would be completed within a period of three years from the date of signing of Letter of Exchange.
The standards and specifications and arrangements for execution of the project may be the same as stipulated in the main Agreement
for the construction of the eastern sector of the East-West Highway of Nepal. His Majesty’s Government would be pleased to continue
to extend for the project all facilities that were provided in the main Agreement.
2. I am to state that on the basis of the request and arrangements given by His Majesty’s Government, the Government of India agreed
to extend assistance to the extent of Rs.1,75,72,000 in Indian currency for the construction of a bridge over the Kamla river.
3. I have the honour to confirm that the above correctly sets out the understanding reached between the Government of India and His
Majesty’s Government of Nepal which will come into force with effect from today’s date.
4. Please accept the assurances of my highest consideration.
P N KAUL
Shri B B PRADHAN
Ministry of Finance, HMG of Nepal