TRADE AGREEMENT BETWEEN INDIA AND PAKISTAN New Delhi, 5 August 1952 The Representatives of the Government of India on the one hand and the Representatives of the Government of Pakistan on the other
have agreed to the following arrangements for the continuance of trade between the two countries:- Article I The Period of this Agreement shall be from the 8th August, 1952 to the 30th June, 1953. Article II The two Governments agreed that with respect of the items mentioned in Schedules 'A' and 'B' attached to this Agreement and which
shall be taken to form an integral part thereof, licences shall, where necessary, be granted in accordance with the laws, regulations
and procedure in force in either country from time to time to permit the import and export of the quantity/value mentioned against
each item. Article III The two Governments agree that exports and imports of the commodities mentioned in Schedules 'A' and 'B' shall normally take place
through ordinary commercial channels, except where either Government finds it necessary to buy or sell part or whole of the quantity/value
of any commodity on Government account. Such purchases and sales shall be reckoned as being within the terms of this Agreement. Article IV In order to facilitate the working of the Agreement, the two Governments agree to consult each other in respect of any matters arising
from or in connection with the supply and movement of goods between the two countries, including the alteration, amendment or addition
to Schedules 'A' and 'B' of this Agreement. Article V The commodities and goods described in Schedules 'A' and 'B' refer only to thost that are produced, processed or manufactured in India
or Pakistan as the case may be. Article VI The Government of India and the Government of Pakistan agree not to permit the re-export of any of the commodities imported under
Schedules 'A' and 'B'. Article VII The two Governments agree that in respect of all commodities whether included in the Schedules to this Agreement or not, import and
export licences in respect of the non-dollar currency areas shall be valid for India and Pakistan as the case may be. Article VIII This Agreement shall come into force on approval by the two Governments. Signed on behalf of the Government of India. Sd./- S. BHOOTHALINGAM, Leader of the Indian Trade Delegation Signed on behalf of the Government of Pakistan. Sd./- M.KARAMATHULLAH, Leader of the Pakistan Trade Delegation, New Delhi SCHEDULE 'A' IMPORTS FROM INDIA INTO PAKISTAN Commodities | Quantity/Value (In Pakistan rupees). | 1. | Pig iron | Quantity outstanding against orders already placed prior to the conclusion of this Agreement (8,800 tons). | 2. | Ferro manganese | 200 tons, including the quantity outstanding against orders already placed prior to the conclusion of this Agreement (100 tons).
| 3. | Ferro silicon | 200 tons, including the quantity outstanding against orders already placed prior to the conclusion of this Agreement (100 tons).
| 4. | Iron & Steel products | | (a) Rails | 5,000 tons, in addition to the quantity outstanding against orders already placed prior to the conclusion of this Agreement (about
12,149 tons). | | (b) Wheels, tyres and axles | Quantity outstanding against orders already placed prior to the conclusion of this Agreement (3,690 tons). | | (c) Heavy structural steel | 10,000 tons. | 5. | High Alumina fire bricks | 600 tons, including the quantity outstanding against orders already placed prior to the conclusion of thisAgreement (about 560 tons).
| 6. | Wood & Timber: | | (a) Hard (including Sal from Assam only but excluding teak). | 10,000 tons. | | (b) Soft (1) Deodar (2) Others | . 10,000 tons. 15,000 tons. | | (c) Railway sleepers (1) Soft (2) Hard | . 13,500 tons. 1,500 tons. | 7. | Mustard oil. | 5,000 tons, or imports against outstanding licences whichever is greater. | 8. | Hard cotton waste | 1,000 tons. | 9. | Potato seeds | P.M. | 10. | Herbs, crude drugs and medicines | Rs. 70,00,000 | 11. | Indigenous medicines (excluding fruit preserves, murrabbas and gulkand) | 12. | Lime and lime stone | Rs. 5,00,000 | 13. | Tallow | P.M. | 14. | Beedi leaves and beedi tobacco | Rs. 1,00,00,000 | 15. | Beedies | Rs. 1,00,00,000 | 16. | MyrabaBeedieslans and myrabalan extracts | 250 tons. | 17. | Khari salt | Rs. 5,00,000 | 18. | Filter cloth | 25,000 yards. | 19. | Sugarcane set | P.M. | 20. | Printed books, journals, magazines and periodicals | Rs. 35,00,000 | 21. | Spices | Rs. 1,00,00,000 | 22. | Textile machinery and spare parts | Rs. 50,00,000 | 23. | Weighing machins and weigh bridges | Rs. 2,00,00,000 | 24. | Belting for machinery | Rs. 10,00,000 | 25. | Cast iron pipes, excluding pressure pipes | Rs. 15,00,000 | 26. | Road rollers | Rs. 23,00,000 | SCHEDULE 'B' IMPORTS FROM PAKISTAN INTO INDIA Commodities | Quantity/Value (In Indian Rs.) | Raw Buffalo hides | 200,000 pieces. | Raw Cor hides | 100,00,000 pieces. | Raw Sheep skins | 100,000 pieces. | Raw Goat skins | 100,000 pieces. | Bamboo | Rs. 10,00,000 | Fish | Rs. 2,00,00,000 | Poultry | Eggs | Herbs, crude drugs and medicines | Rs. 8,00,000 | Indigenous medicines (excluding fruit preserves, Murrabbas and Gulkand) | Printed books, magazines, periodicals and journals | Rs. 10,00,000 | Spices inclding Dhania, Methi, Chandani and Black Cummin seeds | Rs. 30,00,000 | Tallow | P.M. | Firewood | Rs. 5,00,000 | GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 5th August, 1952. My Dear KARAMATULLAH, During our negotiations for the Trade Agreement, it was agreed that the obligation of either country under Article VII would not extend
to licences for export or import granted in terms of bilateral agreements already in force or which may be entered into hereafter
with any third country. I would be glad to have your confirmation. Yours sincerely, Sd/- S. BHOOTHALINGAM. M. KARAMATULLAH, Esqr., Leader, Pakistan Trade Delegation, New Delhi. ____________________ GOVERNMENT OF PAKISTAN PAKISTAN TRADE DELEGATION Camp: New Delhi, the 6th August, 1952. My Dear BHOOTHALINGAM, I acknowledge with thanks the receipt of your letter dated the 5th August, 1952, which reads as under: "During our negotiations
for the Trade Agreement, it was agreed that the obligation of either country under Article VII would not extend to licences for export
or import granted in terms of bilateral agreements already in force or which may be entered into hereafter with any third country.
Yours sincerely, Sd/- M. KARAMATULLAH. DELEGATION OF PAKISTAN. S. BHOOTHALTNGAM, Esqr. I.C.S., Leader of Indian Delegation, New Delhi. ____________________________ My Dear BHOOTHALINGAM, I would be glad to have your confirmation." I confirm that the above correctly sets out the position. New Delhi, the 5th August,
1962. Although it was not found possible to include jute and coal in the Schedule to the Agreement, it was recognised by the two
Delegations that trade in these and other commodities not entered in the Schedules would nevertheless continue to move. I shall be grateful if you would confirm that the above correctly sets out the position. Yours sincerely, Sd/- M. KARAMATHULLAH. S. BHOOTHALINGAM, Esqr., I.C.S. Leader of Indian Delegation New Delhi. INDIAN DELEGATION New Delhi, the 5th August, 1952 My Dear KARAMATULLAH, . I acknowledge with thanks the receipt of your letter dated 5th August, 1952, which reads as under:— "Although~ it was not found
possible to include jute and coal in the Schedules to the Agreement, it was recognised by the two Delegations that trade in these
and other commodities not entered in the Schedules would nevertheless continue to move. I shall be grateful if you would confirm that the above correctly sets out the position." I confirm that the above correctly
sets out the position. Yours sincerely, Sd/- S. BHOOTHALTNGAM. M. KARAMATULLAH, Esqr., Leader, Pakistan Delegation, New Delhi. ____________________________________ DELEGATION OF PAKISTAN. New Delhi, dated the 5th Aug., 1952. MY Dear BHOOTHALINGAM, During the course of our negotiations, I explained to you that we are treating Japan as a separate currency group by itself. At present
we classify it somewhere between the dollar countries and the non-American account countries with the result that, in the matter
of imports, Japan is being treated less favourably than the rest of the non-dollar world including India. The contingency, however,
exists that, depending upon the movement of goods and commodities to and from Japan, we may have to adopt a more favourable policy
towards it than that applicable to the rest of the non-dollar area. The object of this letter is to make it clear that, should such
a contingency arise, our obligation under Article VII would not extend to special licences for the import from or export to Japan.
Yours sincerely, Sd/- M. KATIAMATULLAH. S. BHOOTHALTNGAM, Esq., I.C.S., Leader, Indian Delegation, New Delhi. INDIAN DELEGATION. New Delhi, dated 5th August, 1952. My Dear KARAMATULLAH, I acknowledge with thanks the receipt of your letter dated 5th August, 1952, which reads as under:— "During the course of our
negotiations, I explained to you that we are treating Japan as a separate currency group by itself. At present we classify it somewhere
between the dollar countries and the nonAmerican account countries with the result that, in the matter of imports, Japan is being
treated less favourably than the rest of the non-dollar world including India. The contingency, however, exists that, depending upon
the movement of goods and commodities to and from Japan, we may have to adopt a more favourable policy towards it than that applicable
to the rest of the non-dollar area. The object of this letter is to make it clear that, should such a contingency arise, our obligation
under Article VII would not extend to special licences for the import from or export to Japan." I take note of the position.
Yours sincerely, Sd. S. BHOOTHALTNGAM. M. KARAMATULLAH, Esq., Leader, Pakistan Delegation, New Delhi. ________________________ INDIAN DELEGATION New Delhi, dated 5th August, 1952. My dear KATIAMATULLAH, In the course of our negotiations, we enquired about the method and the object of the Export Price Checking procedure now in force
in Pakistan. You explained that this check is at present limited to certain goods and the object is to prevent under-invoicing. The
check is uniformly applied to exports to all countries on the basis of current prices. I shall be grateful if you would confirm that
the above correctly sets out the position. Yours sincerely, Sd/- S. BHOOTHALTNGAM. M. KARAMATULLAH, Esqr., Leader, Pakistan Trade Delegation, New Delhi. DELEGATION OF PAKISTAN New Delhi, dated 5th August, 1952. My Dear BHOOTHALINGAM I acknowledge with thanks the receipt of your letter dated the 5th August, 1952, which reads as under:— "In the course of our
negotiations we enquired about the method and the object of the Export Price Checking procedure now in force in Pakistan. You explained
that this check is at present limited to certain goods and the object is to prevent under-invoicing. The check is uniformly applied
to exports to all countries on the basis of current prices. I shall be grateful if you would confirm that the above correctly sets
out the position." I confirm that the above correctly set6 out the position. Yours sincerely, Sd/- M. KARAMATULLAH. S. BHOOTHALINGAM Esqr., I.C.S., Leader, Indian Delegation, New Delhi. |