Islamabad, 14 September 1974In accordance with the decision contained in para 3 of the Simla Agreement
The Government of INDIA
AND
The Government of PAKISTAN,
DESIRING to restore and establish telecommunication service between the two countries,
HAVE agreed as follows :
Article I
ESTABLISHMENT OF TELECOMMUNICATION SERVICES
1. From a date to be mutually agreed upon, continuously operated telecommunications services shall be established over a direct land
route between India and Pakistan.
2. Except to the extent indicated hereinafter, the telecommunications services shall be governed by the “Telegraph Regulations (Geneva-1973)”,
the “Telephone Regulations(Geneva-1973)” and the “International Telecommunication Convention (Malaga- Terremolines-1973)”.
3. The technical and operational aspects of the Telegraph and Telephone Services shall be decided by mutual consent of the telecommunications
administrations of the Government of India and the Government of Pakistan. These shall be finalised by mutual discussions within
one month.
Article II
PUBLIC TELEGRAM SERVICE
l. The classes of telegrams accepted between India and Pakistan shall be as listed in the Annexure I attached to this Agreement. Besides
all classes of obligatory telegrams, as defined in Article 4 of the Telegraph Regulations (Geneva 1973) Urgent Private, Urgent Press
and Ordinary Press Telegrams will be accepted. Private and Press Telegrams shall be accepted in plain language.
2. Press telegrams will be accepted only from authorised and duly registered representatives of newspapers, periodical publications,
News Agencies or bureau and press services of diplomatic missions.
3. The International Telegraph Offices will be open for International Service all the 24 hours of the day. Delivery of all ordinary
telegrams in India will be during 0600 to 2200 hours (Indian Standard Time) only. The delivery in Pakistan will be during 0600 to
2200 hours (Pakistan Standard Time).
4. The overall accounting rate per word shall be made up of the sum of the terminal and transit rates as applicable and shown in Annexure
II to this Agreement.
5. There shall be no Transfer Account Service between India and Pakistan.
Article 111
TELEPHONE SERVlCES
I. For the purpose of this Service, India shall be divided into the following accounting Zones :
Zone I – Comprising all the States contiguous to Pakistan, the State of Uttar Pradesh and the Union Territory of Delhi.
Zone II - Comprising the rest of India except the city of Bombay.
Zone III - The city of Bombay (comprising the entire multi-exchange area).
2. Classes of Calls
The following classes of calls as defined in the CCITT Recommendations (Geneva 1978) shall be accepted.
- Distress (emergency) calls
--Government calls.
- Service calls.
- Private calls.
3. Facilities offered to users
Only the Station calls and the Personal calls will be accepted.
4. Operating Methods
All calls will be completed on a manual basis via the nominated International Telephone Exchanges.
5. Accounting Rate
(i) Terminal Calls
In respect of calls between exchanges in Zone I of India and exchanges in Pakistan, the overall accounting rate shall be of 10 Gold
Francs for the first three minutes duration or less. For each additional minute or part thereof it shall be on prorata basis. The
overall accounting rate shall be shared equally between the two countries.
(ii) In respect of calls between exchanges in Zone II and Zone III of India and exchanges in Pakistan, the overall accounting rate
shall be 20 Gold Francs for the first three minutes duration or less. For each additional minute it shall be on prorata basis. This
shall be shared between India and Pakistan in the ratio 3 (India) : 1 (Pakistan) for Zone II. As regards the City of Bombay the ratio
will be 2 (India) : 1(Pakistan).
(iii) Transit Calls
(a) For calls transited via India, the Indian share for the first three minutes or less shall be 15 Gold Francs. For every additional
minute or part thereof, it shall be on a prorata basis.
(b) For calls transited via Pakistan, the Pakistan share for the first three minutes or less shall be 5 Gold Francs. For every additional
minute or part thereof, it shall be on a prorata basis.
Article 1V
TELEX SERVICES
1. For the purpose of this Service, India shall be divided into the following accounting Zones :
Zone I - Comprising telex exchanges in all the States contiguous to Pakistan, the State of Uttar Pradesh and the Union Territory of
Delhi.
Zone II - Comprising telex exchanges in the rest of India except the City of Bombay.
Zone III - The telex exchange in the City of Bombay.
2. Classes of Calls
Following classes of telex calls shall be accepted :
(a) Safety of Life Telex Calls (SVH),
(b) Government Telex Calls,
(c) Service Telex Calls,
(d) Ordinary Private Telex Calls,
(e) Requests for information.
3. Operating Methods
All calls will be completed on a manual basis via the nominated International Telex Exchanges.
4. Accounting Rate
(i) Terminal Calls
In respect of calls between exchanges in Zone I of India and exchanges in Pakistan, the overall accounting rate shall be 8 Gold Francs
for the first three minutes duration or less. For each additional minute it shall be on a prorata basis; This shall be shared equally
between the two countries.
(ii) In respect of calls between exchange in Zone II and Zone III of India and exchanges in Pakistan, the overall accounting rate
shall be 16 Gold Francs for the first three minutes duration or less. For each additional minute it shall be on prorata basis. This
shall be shared between India and Pakistan in the ratio 3 (India) : 1 (Pakistan). As regards the city of Bombay the ratio will be
2 (India) : 1 (Pakistan).
(iii) Transit Calls
(a) For calls transited via India, the Indian share for the first three minutes or less shall be 12 Gold Francs. For every additional
minute or part thereof, it shall be on a prorata basis.
(b) For calls transited via Pakistan, the Pakistan share for the first three minutes or less shall be 4 Gold Francs. For every additional
minute or part thereof, it shall be on a prorata basis.
Article V
ACCOUNTING PROCEDURE FOR TELECOMMUNICATIONS
1. The Government of India and the Government of Pakistan shall establish a monthly account showing all the amounts owed and forward
it to the other Government concerned. The accounts shall be in the Forms as mutually agreed upon by the two sides.
2. The accounts shall be sent as promptly as possible but in any case before the end of the third month following that to which they
relate.
3. In principle, an account shall be considered as accepted without the need for specific notification of acceptance to the Government
which sent it.
4. Nevertheless, both the Governments shall have right to query the date in question during the period of two months after the receipt
of the account, but only to the extent necessary to bring the differences within limits specified in para 6 below.
5. However, to avoid repetition of errors which are too small to entail a revision of the account, either of the Governments may draw
the attention of the other Government which has prepared the monthly account, to obvious errors and the latter Government must take
action on this information as soon as practicable to avoid similar errors occurring in the future.
6. A revision which has begun shall be stopped following the exchange of observations between the two Administrations, as soon as
the difference is brought down to a sum not exceeding the maximum specified below: The limits apply to each of the three services
separately.
For Telegram Services
| Amount of the account of creditor | Maximum difference |
| (a) less than 2500 Gold Francs (b) from 2500 to 100,000 Gold Francs. (c) more than l00,000 | a.
25 Gold Francs
b. 1% of the sum of the creditor's account
c .
1 % of the first 100,000 Gold Francs Gold Francs and 0.5 % of the remainder of the creditor's account. |
(ii) For Telephone and Telex Services
| Amount of the account | Difference Exceeding |
| (a) less than 10,000 Gold Francs (b) 10,000 Gold Francs to 300,000 Gold Francs (c) More than 300,000 Gold Francs | (a) 100 Gold Francs (b) 1% of the sum of the account, (c) 3,000 Gold Francs. |
Article VI
PAYMENTS OF BALANCE OF ACCOUNTS
1. A quarterly settlement statement showing the balance from the monthly accounts for the period to which it relates shall be prepared
as quickly as possible by the creditor Administration and be sent in duplicate to the debtor Administration which, after verification,
shall return one of the copies endorsed with its acceptance.
2. The payment of the balance due on account shall not be delayed pending settlement of any query on that account. Adjustments which
are later agreed shall be included in the subsequent account.
3. Payment shall be affected as promptly as possible but in no case later than six weeks after the day on which the quarterly settlement
statement is received by the debtor Administration. Beyond this period the creditor Administration shall have the right to charge
interest at the rate of 6 percent per annum; reckoned from the day following the date of expiration of the said period.
4. The balance of telecommunications accounts, shall be drawn up in Gold Francs.
5. The payment of balance of telecommunication accounts shall be made in United States of America Dollars. The methods of conversion
into such currency shall be as follows :
The amount of the payment in US Dollars shall be equivalent in value to the balance of the account. The amount which is equivalent
in value to the balance of the account shall be determined by the relationship in effect on the day before payment between the value
of the Gold Franc and the gold par value of the US dollars approved by the International Monetary Fund. In case a central rate of
the US dollar has been established under the International Monetary Fund Executive Board decision subsequent to the approval given
by the International Monetary Fund to the gold par value, the gold value of the central rate shall be used in determining the equivalent
value.
6. The amounts due to India shall be credited by bank transfer to the account of the Indian Posts and Telegraphs Department in the
State Bank of India, New York Branch. The amounts due to Pakistan shall be credited by bank transfer to the account of Pakistan Telegraph
and Telephone Department in the National Bank of Pakistan, New York Branch.
7. The payment charges imposed in the debtor country (taxes, clearing charges, commission, etc.) shall be borne by the debtor. The
charges imposed in the creditor country, including payment charges imposed by banks, shall be borne by the creditor.
8. If, between the time the remittance (cheque, etc.) is effected and the time the creditor receives it, a variation occurs in the
equivalent value of the US dollar and if the difference resulting from such variation exceeds 5% of the amount due as calculated
following such variation, the total difference shall be shared equally between debtor and creditor.
9. If there should be a radical change in the International Monetary System, which invalidates or makes inappropriate one or more
of the foregoing paragraphs, India and Pakistan shall be free to adopt, by a separate mutual agreement, different procedure for the
payment of balances of account pending a revision to Appendix to the Telegraph Regulations (Geneva, 1973) and Appendix II to the
Telephone Regulations (Geneva, 1973).
Article VII
SETTLEMENT OF DIFFERENCES AND DISPUTES
1. A committee of Technical experts of both countries shall meet twice a year to discuss and resolve to the maximum extent possible
all outstanding problems relating to the operational matters and the settlement of accounts.
2. Any question which arises between the parties concerning the interpretation of application of this Agreement or the existence of
any fact which, if established, might constitute breach of this Agreement shall first be examined by the above-mentioned Committee
of the Technical Experts which will endeavour to resolve the difference by Agreement.
3. If the Committee of Experts is unable to reach agreement on any question then difference will be deemed to have arisen which shall
be resolved through bilateral discussions between the two Governments.
Article VIII
PAYMENT OF PAST DUES
It was agreed that payment of outstanding amounts relating to Telecommunication dues will be discussed and settled by the representatives
of the two Governments at an early date.
Article IX
MODIFICATION AND DURATION OF AGREEMENT
1. This Agreement may be modified from time to time by mutual consent of the two Governments.
2. This Agreement may be suspended by either side if outstanding balances of accounts occurring under this Agreement remain unpaid
for a period of one year.
3. This Agreement is valid for two years from the date of its signing by the two Governments unless it is reviewed and extended by
mutual agreement, between the two Governments before the expiry date.
4. IN WITNESS WHEREOF the undersigned duly authorised for that purpose have signed this Agreement in the two originals on Saturday
the l4th September, 1974, at Islamabad.
For the Government of India For the Government of Pakistan
Sd /- Sd /-
KEWAL SINGH AGHA; SHAHI
Foreign Secretary Foreign Secretary
Government of India Government of Pakistan
