EXCHANGE OF LETTERS BETWEEN THE GOVERNMENTS OF INDIA AND CEYLON ON TRADE RELATIONS New Delhi, 15 July 1953
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
New Delhi, the 15th July, 1953
Dear Mr. NATESAN,
I have the honour to enclose a brief record of the understanding reached between the Delegations of the Government of Ceylon and the
Government of India as a result of discussions which we had yesterday. I would be grateful for your confirmation that the record
correctly sets out the understanding reached between the two Delegations.
Yours sincerely,
(Sd.) D.P. KARMARKAR.
The Hon'ble Shri S. NATESAN,
Minister of Posts and Information and Leader of the Ceylon Trade Delegation, Camp: New Delhi. Agreement has been reached on the following
points between the Delegations of the Government of Ceylon and the Government of India :- (1) To facilitate imports of Jaffna tobacco,
the Government of India will permit import of 2,500 candies (each of 600 lbs.) a year of chewing tobacco through Alleppey at the
following low rates of import duty :-
1953-54-First 1,260 candies at Rs. 300 per candy. The next 1,240 candies at Rs. 450 per candy.
1954-55-First 1,080 candies at Rs. 300 per candy. The next 1,420 candies at Rs. 450 per candy.
1955-56-First 900 candies at Rs. 300 per candy. The next 1,600 candies at Rs. 450 per candy.
1956-57-First 720 candies at Rs. 300 per candy. The next 1,780 candies at Rs. 450 per candy.
Imports through other ports as well as imports in excess of the quantities specified above will be subject to the Indian Tariff Rate
applicable for the time being to the import of unmanufactured tobacco. (2) The Government of Ceylon will facilitate the increasing
use and import of Indian-grown tobacco for the production of cigarettes and other tobacco manufactures in Ceylon. (3) The Government
of Ceylon will allow the import of bidis from India under Open General Licence and will not subject it to a higher effective rate
of import duty than that prevailing on the 15th July, 1953. (4) The Government of Ceylon will reduce the.import duty on all handloom
towels and towelling to the lowest rate applicable to mill-made towels and towelling. (5) These arrangements will come into force
on the 1st September, 1953 and continue to be in operation till 31st August 1957. It will, however, be open to either Government
to terminate these arrangements by giving six months notice at any time after the 31st March, 1955.
2. These arrangements are subject to approval by the two Governments, each of whom will take steps to notify the other of its decision
in the matter on or before the 22nd August 1953.
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OFFICE OF THE HIGH COMMISSIONER FOR CEYLON IN INDIA
New Delhi, the 15th July, 1953
Dear Mr. KARMARKAR,
I have the honour to acknowledge receipt of your letter dated 15th July, 1953, which reads as follows : -
(Not printed)
2. 1 have great pleasure in confirming that the record enclosed with your letter under reference correctly sets out the understanding
reached between the two Delegations. Yours sincerely, (Sd.) S. NATEsAN. Shri D.P KARMARKAR,
Minister for Commerce and Leader of the Indian Trade Delegation,
Government of India, New Delhi.
OFFICE OF THE HIGH COMMISSIONER FOR CEYLON IN INDIA
New Delhi, the 15th July, 1953
Dear Mr. KARMARKAR, During our recent discussions, you had laid special emphasis on the need to promote the exports of Indian tobacco
to Ceylon. I have already told you that certain measures which the Ceylon Government have in view to curtail dollar expenditure should
themselves go some way in increasing this trade. I can assure you that the Ceylon Government will do everything possible to facilitate
and encourage the consumption of Indian tobacco in Ceylon.
Yours sincerely,
(Sd.) S. NATESAN.
Shri D.P. KARMARKAR
Minister for Commerce, Government of India, New Delhi.
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GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY
New Delhi, the 15th July, 1953
Dear Mr. NATESAN,
I acknowledge with many thanks your letter dated the 15th July, 1953, regarding the import of Indian tobacco into Ceylon. I am grateful
to you for the assurance that you have given and I have no doubt that, as a result, there will be an actual increase in our export
of tobacco to Ceylon.
Yours sincerely,
(Sd.) D.P. KARMARKAR.
The Hon'ble Shri S. NATESAN,
Minister of Posts and Information and Leader of the Ceylon Trade Delegation, Camp: New Delhi.
