| TRADE AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE FEDERAL PEOPLE'S REPUBLIC OF YUGOSLAVIA Calcutta,
29 December 1948 The Government of India and the Government of the Federal People's Republic of Yugoslavia being equally desirous of establishing and
extending direct trade relations between their respective countries, have resolved to conclude a trade agreement for that purpose
and have agreed as follows:— Article 1 The Government of India and the Government of the Federal People's Republic of Yugoslavia agree to facilitate the exchange of goods
between their respective countries with a view to establishing and furthering trade between them. Article 2 1. With respect to customs duties and charges imposed on importation or exportation or imposed on the international transfer of payment
for imports or exports and with respect to the method of levying such duties or charges and with respect to any regulations, formalities
and charges to which customs clearing operations may be subject, any advantage, favour, privilege or immunity granted by either of
the Contracting Parties to any product originating in or destined for any other country shall be accorded immediately and unconditionally
to the like product originating in or destined for the territory of the other Contracting Party. 2. The provisions of paragraph 1 shall not however apply to the grant or continuance of any— (a) advantages accorded by either of the Contracting Parties to contiguous countries, in order to facilitate frontier traffic; (b) advantages resulting from any Customs Union or free trade area to w-hich either of the Contracting Parties is or may become a
party; (c) preferences or advantages accorded by India to any country, existing on the date of this Agreement or in replacement of such preferences
or advantages that existed prior to the 15th August, 1947; or (d) advantages accorded by virtue of a multilateral economic agreement relating to international commerce. Article 3 Each Contracting Party shall accord to the ships of the other Contracting Party, in the matter of duties of tonnage, harbour, pilotage,
light houses or other analogous duties levied in the ports of either Contracting Party, treatment no less favourable than that accorded
to the ships of any other foreign country. This Article shall not apply to any concessions made to ships engaged in the coasting
trade of either Contracting Party. Article 4 1. During the first twelve months from the date of the exchange of ratifications, the Government of India agree to permit the exportation
to Yugoslavia, and the Government of the Federal People's Republic of Yugoslavia agree to permit the importation from India, of the
goods specified in Schedule 'A' hereto annexed up to the minimum limits for each class of goods, on the conditions and terms of this
Agreement and subject to the further conditions and terms specified in the Protocol attached hereto, where those are applicable.
During the same period the Government of the Federal People's Republic of Yugoslavia agree to permit the exportation to India, and
the Government of India agree to permit the importation from Yugoslavia, of the goods specified in Schedule 'B' hereto annexed up
to the minimum limits for each class of goods, on the conditions and terms of this Agreement and subject to the further conditions
and terms specified in the Protocol attached hereto, where those are applicable. 2. With regard to such of the goods specified in the said Schedules as are, or may be, subject to export or import licensing, both
Contracting Parties further agree to grant, upon receipt of applications duly made export or import licences, up to the minimum limits
specified in the said Schedules in respect of such goods in accordance with the laws and regulations of the Contracting Party granting
such licences. 3. During the currency of the twelve months to which the said Schedules relate, the Contracting Parties may, by mutual agreement,
vary the limits, conditions and terms specified for any class or classes of goods. 4. Before the expiry of the initial twelve months, new Schedules may be adopted by mutual agreement for the next period of one year
or such other period as may be mutually agreed upon and thereafter similarly for each subsequent period of one year or otherwise
as mutually agreed before the expiry of the immediately preceding period. 5. Both Governments agree to consider favourably and to permit so far as is mutually consistent with their other commitments, the
import or export also of goods not specifically covered by the Schedules annexed to the present Agreement. 6. Except where otherwise
indicated, it is understood that there is no guarantee by either Contracting Party that the amount of goods mentioned in the Schedules
shall be either imported or exported and that the terms of this Agreement are also subject to any conditions imposed by the necessity
of controlling exchange for importation of goods. Article 5 Payments and other charges in connection with the import and export of goods between the two countries shall be settled in Rupees
or Sterling as mutually convenient. Article 6 1. The Contracting Parties agree to permit the import and export of goods sold in pursuance of this Agreement which are actually cleared
for export at the date of the expiry of this Agreement. 2. The Contracting Parties also agree to consider favourably the applications for export or import licences in respect of goods sold
in pursuance of this Agreement for export from or import into their respective territories within three months of the date of expiry
of this Agreement. Article 7 During the currency of this Agreement both Contracting Parties agree in order to facilitate the execution of this Agreement to consult
each other in respect of any matter arising from or in connection with the exchange of goods between the two countries in accordance
with this Agreement. Article 8 This Agreement shall, subject to ratification as provided for in Article 9, remain in force for a period of twelve months from the
date of exchange of ratifications and thereafter for further successive periods as may be mutually agreed upon before the expiry
of this Agreement. Article 9 1. This Agreement shall be subject to ratification and shall come into force on the date when ratifications are exchanged, which shall
be as soon as possible. 2. Any arrangements entered into between the Contracting Parties in anticipation of ratification shall be discharged whenever possible
as near as may be in the terms of this Agreement or if for any reason ratification is withheld by either of the Contracting Parties,
on principles of equity and reciprocity. IN WTTNESS WHEREOF Mr. C.C. Desai, Secretary to the Government of India in the Ministry of Commerce on the part of the Government
of India and Mr. Mirko Mermolja, Counsellor, Ministry of Foreign Trade on the part of the Federal People's Republic of Yugoslavia this twenty-ninth
day of December 1948 have signed the same in Calcutta, in duplicate, in English, both documents being equally authentic. (Sd.) MTRKO MERMOLJA 29.12.48. Counsellor, Ministry of Foreign Trade, Federal People's Republic of Yugoslavia. IN THE PRESENCE OF: (Sd.) A. JENEZTC 29. 12.48. (Sd.) C.C. DESAT . Secretary to the Government of India in the Ministry of Commerce. (Sd.) S.K. CHATTERJEE Secretary to the Government of West Bengal in the Ministry of Commerce and Industries. SCHEDULE 'A' INDIA'S EXPORTS TO YUGOSLAVIA | Jute manufacture Linseed Coffee, raw Castor Oil Niger and Kurdi Seed Pepper Other Spices Nux Vomica Tea Coir Yarn Shellac Gum Arabic Sisal Yarn Cotton, raw Medicinal Plants Cotton textiles Sillimanite Ore | 5,000 tons 1,000 tons 800 tons 1,500 tons 1,000 tons 40 tons 10 tons 450 lbs 60,000 Ibs. 100 tons 100 tons 5 tons 40 tons 5,000 tons £ 5,000 in value 2,000,000 yards 200 tons | SCHEDULE 'B' YUGOSLAVIA'S EXPORTS TO INDIA Maize Calcium Carbide Zinc White Timber (Soft wood) Newsprint Cement Cement-Asbestos Sheets Tea Chests Enamelware- Mugs Buckets with lid Plate glass- (16 oz. and over) Reinforced plate glass Maize starch Dextrine Denatured alcohol Plywood only of types suitable for tea chests
Shoe lasts made of wood Shoe heels made of wood Various wooden products for School, Kitchen, Hand tools, Sanitaly installations and rulers Buttons, Wooden Wooden accessories for textile machinery Soda Ash Caustic Soda Lead Minium Acetic Acid Cigarette paper Insecticides Agricultural tools Various iron household goods Copper Lead, pig Pyrethlum | 20,000 tons 3,000 tons 50 tons 60,000 tons 1,500 tons 50,000 tons 3,500 tons 1,50,000 pieces £ 15,000 in value 200 tons 200 tons 150 tons 1,000 tons 500 tons
100,000 pairs 500,000 pairs £ 5,000 in value
--- 1,000,000 pieces £ 20,000 in value 2,000 tons 1,000 tons 20 tons 50 tons 100 tons £ 5,000 in value £ 25,000 in value £ 5,000 in value ------
------ £ 3,000 in value | PROTOCOL Protocol of Terms and Conditions Annexed to the Trade Agreement Signed at Calcutta on the Twentyninth December, 1948, between the
Government of India and the Government of the Federal People's Republic of Yugoslavia. Certain Trade negotiations having taken place
in New Delhi between delegations of the Government of India and the Government of Yugoslavia a Trade Agreement subject to ratification
by the two Governments has been arrived at. This protocol will be appended to the Trade Agreement at the time of the exchange of
ratifications and shall be taken as forming part of the agreement without any necessity for further ratification of this protocol.
The Governments of India and of the Federal People's Republic of Yugoslavia acting in their capacity of Contracting Parties to the
Trade Agreement between the Government of India and the Government of the Federal People's Republic of Yugoslavia Being desirous
of laying down terms and conditions under which the Trade Agreement and particularly the Schedules A and B annexed thereto shall
be brought into effect Hereby agree as follows:— 1. The exchange of ratifications shall take place as soon as possible in New Delhi or in Belgrade as may be mutually convenient or
agreed upon. 2. The clauses of the Trade Agreement shall be provisionally applied as provided in Article 9 as from the 1st January, 1949. Provided
that if so applied, the term of twelve months mentioned in the Agreement shall run from the date that it is so applied. 3. Regarding the commodities mentioned in Schedule 'A'— (i) As regards five thousand tons of Jute Manufactures, two thousand and five hundred tons will be allocated to Yugoslavia for the
period January-June 1949. If the supply position improves, the Government of India will endeavour to allocate an additional quantity
of two thousand and five hundred tons of jute manufactures to Yugoslavia for the period July-December, 1949. (ii) As regards Linseed, the Government of India shall favourably consider the allocation of one thousand tons of Linseed or its equivalent
in Linseed Oil to Yugoslavia, provided the International Emergency Food Council in Washington has ceased to allocate these commodities
during the currency of the Agreement. (iii) As regards Coffee, an initial export allocation of one hundred tons of raw coffee will be made by India for the first year.
Further, India will, if possible, increase this amount to eight hundred tons of raw coffee or as near as may be. (iv) As regards Raw Cotton, five thousand tons of short staple varieties, namely, Bengal Deshi, Mathias, Assams and Comillas may,
if Yugoslavia so desires, be purchased from India. (v) As regards Medicinal plants, Yugoslavia may purchase such plants except which are on the restrictive list, up to five thousand
pounds sterling in value. As regards items on the restrictive list, India will, however, consider favourably reasonable demands for
Tragacanth by Yugoslavia. (vi) As regards Cotton Textile, an initial export allocation of two million yards has been made. Further amounts will be supplied
if India desires to sell and Yugoslavia desires to buy such textiles. It is understood that this item of trade will be encouraged
by both Contracting Parties. (vii) As regards Sisal Yarn, the supply position is uncertain. An export allocation upto 40 tons can only therefore be made if Yugoslavia
is successful in purchasing sisal yarn in India. 4. Regarding the commodities mentioned in Schedule B'— (i) As regards Maize, Yugoslavia will sell to the Government of India during the year 1949, twenty thousand tons, out of which ten
thousand tons will be supplied immediately at prices and on terms already agreed upon. The balance of ten thousand tons will be supplied
according to the understanding already arrived at between the Contracting Parties when the details regarding prices and other terms
and conditions are agreed upon. Further, Yugoslavia will endeavour to increase this allocation by another twenty thousand tons, or
as near as may be, on prices and terms to be fixed for this additional quantity by mutual agreement at a later date. (ii) As regards Calcium Carbide, out of the three thousand tons mentioned in the Schedule, Yugoslavia will sell to the Government
of India a quantity of three hundred and sixty tons at prices and on terms already agreed upon. The balance will be covered by export
allocation by Yugoslavia for import by Indian traders. Further, Yugoslavia will endeavour to increase the total allocation by an
additional five hundred tons. (iii) As regards Zinc White, Yugoslavia will try to increase the export allocation from fifty to one hundred tons. (iv) As regards Timber (soft wood)l out of the sixty thousand tons Yugoslavia will sell to the Government of India, if the latter
so desire, a quantity up to fifteen thousand tons at prices and on terms to be agreed upon. The balance will be covered by export
allocation by Yugoslavia for import by Indian traders. (v) As regards Cement, Yugoslavia will consider favourably an increase of the total allocation from fifty thousand to one hundred
thousand tons. (vi) As regards Cement-Asbestos sheets, Yugoslavia will make an export allocation of three thousand and five hundred tons, all of
which will be sold to the Government of India at prices and on terms to be agreed upon. (vii) As regards Enamelware, Yugoslavia will sell to the Government of India, if the latter so desire, Buckets with lids and Mugs
at prices and on terms already agreed upon. (viii) As regards Copper and Pig Lead, although in view of Yugoslavia's prior commitments, no quantities could be indicated in the
Schedule at this stage, Yugoslavia will nevertheless make every endeavour to make available to India certain quantities of each of
these non-ferrous metals during the year '1949. DONE and SIGNED in duplicate, in English, either copy being equally authentic, in Calcutta, the twenty-ninth day of December 1948.
(Sd.) MIRKO MERMOLJTA 29.12.4&. Counsellor, Ministry of Foreign Secretary to the Government of Trade, Federal People's Republic
India in the Ministry of Commerce. Of Yugoslavia. (Sd.) C.C. DESAT 29.12.48.(Sd.) A. JENEZTC 29.12.48. Witness , (Sd.) S.K. CHATTERJEE 29.12.48 Secretary to the Government of West
Bengal in the Ministry of Commerce and Industries.
D.O. No. 26-F.T.C. (1)/48 GOVERNMENT OF INDIA MINISTRY OF COMMERCE Calcutta, the 29th December, 1948 Dear Mr. MERMOLJA With reference to paragraph 6 of Article 4 of the Trade Agreement signed this date, I am authorised to infbrm you that the words "conditions
imposed by the necessity of controlling exchange for importation of goods" in this paragraph, are intended to provide for a
situation, where owing to any unforeseen development, either Contracting Party may find itself unable to allow imports from the other
country of any or all of the commodities mentioned in the Schedules, except those in respect of which firm commitments have already
been made in the Protocol annexed to this Agreement, on the scales contemplated in those Schedules. This safeguard is considered
necessary in view of the fact that most of the items in the Schedules represent best estimates only at this stage and therefore no
firm or final decision regarding the relative essentiality of each item in an altered exchange situation can now be taken. MTRKO
MERMOLJA, Esquire Leader, Yugoslav Trade Delegation, Calcutta Yours sincerely, (Sd.) C.C. DESAT, Calcutta, 29th December, 1948.
Dear Mr. DESAI I write to acknowledge the receipt of your letter of to-day's date which reads as follows:— "With reference to paragraph 6 of Article 4 of the Trade Agreement signed this date, I am authorised to inform you that the words
"conditions imposed by the necessity of controlling exchange for importation of goods" in this paragraph, are intended
to provide for a situation, where owing to any unforeseen development, either Contracting Party may find itself unable to allow imports
from the other country of any or all of the commodities mentioned in the Schedules, except those in respect of which firm commitments
have already been made in the Protocol annexed to this Agreement, on the scales contemplated in those Schedules. This safeguard is
considered necessary in view of the fact that most of the items in the Scheriules represent best estimates only at this stage and
therefore no firm or final decision regarding the relative essentiality of each item in an altered exchange situation can now be
taken." I am authorised to confirm that I am in agreement with the contents of the above letter. Yours sincerely, (Sd.) MTEKO MERMOLJA C.C. DESAT, Esquire, CIE., I.C.S. Secretary to the Government of India, Ministry of Commerce.
D.O. No. 26-8(1)/48 GOVERNMENT OF INDIA MINISTRY OF COMMERCE Calcutta, 29th December, 1948 Dear Mr. MERMOLJA, Arising out of your discussions on the 23rd December with the Finance Ministry on Article 6 of the draft Trade Agreement, about to
be concluded between our two countries, you will recall that it was indicated to you that the Government of India would prefer the
arrangement expressed therein to be operated in practice in a manner which would enable the balance of payments to be settled, at
convenient intervals, at the discretion of either country, in sterling, but individual transactions to be conducted and settled in
rupees. For this purpose, it was considered that your Government might wish to establish a rupee account with a commercial bank—preferably
an Indian bank—in India, to which would be credited the proceeds of all exports from Yugoslavia and to which would be debited the
value of all imports from India. Such an arrangement would be in conformity with normal practice obtaining in this country for the
finance of India's foreign trade. 2. You were good enough to express yourself as, personally, in agreement with this suggestion in principle, but wished to reserve
your position till you had had an opportunity to consult your Government. The object of this letter is merely to serve as a record
of the discussions that took place and to say that the Government of India await an indication of your Government's attitude to the
proposal. Yours sincerely, (Sd.) C.C. DESAI MIRCO MERMOLJA, Esquire, Leader of the Yugoslav Trade Delegation,
Calcutta, the 29th December, 1948 Dear Mr. DESAI, I write to acknowledge the receipt of your letter of today's date which reads as follows:— "Arising out of your discussions on the 23rd December with the Finance Ministry on Article 5 of the draft Trade Agreement, about
to be concluded between our two countries, you will recall that it was indicated to you that the Government of India would prefer
the arrangement expressed therein to be operated in practice in a manner which would enable the balance of payments to be settled,
at covenient intervals, at the discretion of either country, in sterling, but individual transactions to be conducted and settled
in rupees. For this purpose, it was considered that your Government might wish to establish a rupee account with a commercial bank—preferably
an Indian bank—in India, to which would be credited the proceeds of all exports from Yugoslavia and to which would be debited the
value of all imports from India. Such an arrangement would be in conformity with normal practice obtaining in this country for the
finance of India's foreign trade. 2. You were good enough to express yourself as personally in agreement with this suggestion in principle but wished to reserve your
position till you had had an opportunity to consult your Government. The object of this letter is merely to serve as a record of
the discussions that took place and to say that the Government of India await an indication of your Government's attitude to the
proposal." I shall communicate the contents of the above letter to my Government and let you know their decision. Yours sincerely, (Sd.) MIRKO MERMOLJA. C.C. DESAI, Esquire C.I.E. I.C.S. Secretary to the Government of India, Ministry of Commerce.
D.O. No. 26-FTC (1)/48 GOVERNMENT OF INDIA MINISTRY OF COMMERCE Calcutta, the 29th December, 1948. Dear Mr. MERMOLJA, In the course of your discussion on the 23rd December with the Finance Ministry on the proposed Trade Agreement between our two countries,
the question of opening of letters of credit covering imports on Government account was raised. You will recall that opportunity
was taken to point out to you that it was not the policy of the Government of India to finance its own imports by establishing letters
of credit with commercial banks and that this was the invariable policy adopted in respect of purchases on Government account from
all countries. Yours sincerely, (Sd.) C.C. DESA1. MTRKO MERMOLJA, Esquire, Leader of the Yugoslav Trade Delegation,
Calcutta, the 29th December, 1948. Dear Mr. DESAI, I write to acknowledge the receipt of your letter of today's date which reads as follows:— "In the course of your discussion on the 23rd December with the Finance Ministry on the proposed Trade Agreement between our
two countries, the question of opening of letters of credit covering imports on Government account was raised. You will recall that
opportunity was taken to point out to you that it was not the policy of the Government of India to finance its own imports by establishing
letters of credit with commercial banks and that this was the invariable policy adopted in respect of purchases on Government account
from all countries." I shall communicate the contents of the above letter to my Government. Yours sincerely, (Sd.) MTRKO MERMOLJA. C.C. DESAI, Esquire, C.I.E., I.C.S. Secretary to the Government of India.
Ministry of Commerce. | 