| TRADE AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE UNION OF SOVIET SOCIALIST REPUBLICS New Delhi, 2 December 1953 The Government of India and the Government of the Union of Soviet Socialist Republics, animated by the desire to develop trade relations
between the two countries, have agreed on the following Article I Both the Governments will, in every possible way, develop and strengthen the trade relations between the two countries on the principles
of equality and mutual benefit. They will study and with utmost goodwill take decisions on the suggestions which either of them would
like to present for consideration of the other with the purpose of achieving closer economic relations. 2. For the goods imported and exported from one country to the other, both the Governments pledge themselves to grant maximum facilities
allowed by their respective laws, rules and regulations. 3. The provisions of paragraphs 1 and 2 shall not, however, apply to the grant or continuance of any (a) advantages accorded by either
of the Governments to contiguous countries, in order to facilitate frontier traffic; (b) advantages resulting from any Customs Union
or free trade areas to which either of the Governments 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. 4. Mercantile ships of
both countries while entering, staying in or leaving the ports of the other country will enjoy the most favoured facilities granted
by the respective laws, rules and regulations to ships under the third countries' flags. This principle shall not P apply to the
ships engaged in coastal navigation. Article II The export of goods from the U.S.S.R. to India and from India to the U.S.S.R. during the period of validity of the present Agreement
will be carried out in accordance with the schedules to be agreed upon by the two Governments for every contractual year. The goods
agreed r export from the U.S.S.R. to India and from India to the U.S.S.R. during the first year of the present Agreement are set
out in schedules A and B respectively. fo Article III The import and export of the goods stipulated in Article II will be carried
out in accordance with the import, export and foreign exchange regulations in force from time to time in either country and on the
basis of contracts to be concluded between the Indian Parties on the one side and the Soviet Foreign Trade Organisations on the other.
Article IV The provisions of the present Agreement do not affect the rights of the Indian Parties and the Soviet Foreign Trade Organisations
to conclude between themselves subject to the import, export and foreign exchange regulations in force from time to time in both
the countries, commercial transactions for the import or export of goods not included in the schedules referred to in Article II.
Article V The two Governments will render all possible assistance for the export and import of the goods mentioned in Article II and those to
be exported and imported under the transactions referred to in Article IV. Article VI All payments between India and the U.S.S.R. described in Article VII may be made in Indian Rupees. For this purpose the State Bank
of the U.S.S.R. will maintain one or more accounts with one or more commercial banks in India authorised to deal in foreign exchange.
In addition, the State Bank of the U.S.S.R. will, if that Bank considers necessary, maintain another account with the Reserve Bank
of India. All the commercial transactions to be financed in Rupees will take place through the account (accounts) maintained with
the commercial bank (banks). The account with the Reserve Bank of India will be used only for replenishing the balances with the
commercial bank (banks) as and when necessary. Payments permitted under the Indian Exchange Control laws to be made by residents
of India to residents of the U.S.S.R. will be effected by crediting the amount of such payments to the above mentioned account (accounts)
of the State Bank of the U.S.S.R. with the commercial bank (banks). Payments to be made to residents in India by residents in the
U.S.S.R. will be effected by debiting the said account (accounts) with the commercial bank (banks). The account (accounts) will be
replenished as necessary by one of the following methods, namely (a) by transfer of funds from another account of the State Bank
of the U.S.S.R. with another commercial bank or with the Reserve Bank of India; or (b) by the sale of Sterling to the bank concerned.
Article VII The provisions of the present Agreement cover the following payments : (a) payments for the goods delivered under the present agreement;
(b) payments connected with commercial transactions and covering insurance, freight (in case of shipment of goods by Indian or Soviet
ships), port charges, storage and forwarding expenses and bunkering-, (c) payments for distribution of films; (d) payments for technical
assistance; (e) payments of the expenses connected with the tours of a commercial or cultural nature as well as those of official
delegations; (f) payments for the maintenance of the Embassy of India in the U.S.S.R. and of the Embassy and the Trade Representation
of the U.S.S.R. in India; and (g) other non-commercial payments on which agreement may be reached between the Reserve Bank of India
and the State Bank of the U.S.S.R. Article VIII Any balances in the Rupee accounts maintained by the State Bank of the U.S.S.R. with the Reserve Bank of India or with a commercial
bank (banks) authorised to deal in foreign exchange will be convertible on demand into Sterling at the usual banks' selling rate
for Sterling as fixed from time to time by the Indian Exchange Banks Association. The above mentioned balances will also be convertible
into Sterling after the expiry of the present Agreement. Article IX Both the Governments will render all possible assistance for the shipping of the goods to be exported or imported under the present
Agreement from one country to the other as far as possible by Indian and Soviet ships. Article X The present Agreement will come into force from the date of its signature and will remain valid for a period of five years. The Agreement can be extended or renewed by negotiation between the Parties to be commenced three months prior to its expiry. DONE
in New Delhi on the 2nd day of December, 1953, in two original copies, each of them in English and Russian, both texts being equally
authentic. (Sd.) H.V.R. IENGAR (Sd.) M.A. MENSHIKOV. On behalf of the Government On behalf of the Government of of India. the Union of Soviet
Socialist Republic. SCHEDULE 'A' GOODS FOR EXPORT FROM THE U.S.S.R. TO INDIA 1. Foodgrains (wheat, barley). 2. Crude petroleunL 3. Petroleum products: benzine, kerosene,
diesel fuel, mazut, lubricating oils. 4. Iron and steel manufactures. 6. Asbestos raw. 6. Carbon black. 7. Chemicals. 8. Dyestuffs.
9. Medicaments, raw materials for medicines, medical instruments. 10. Timber. 11. Paper of different kinds, including newsprint.
12. Cellulose. 13. Industrial plant and equipment. 14. Boring equipments. 15. Mining equipment: Cutting machines, rock-loading machines,
coal combines, scraper winches, perforators, miners'picks (pneumatic) and others. 16. Road-building equipment; scrapers, bulldozers,
ditchers, planers, rollers and others. 17. Building machines: Concrete mixers, solution mixers, lime- slackening machines, electro-vibrators
and others. 18. Single and imilti-shovelled excavators, auto-cranes. 19. Heavy electrical plant and equipment. 20. Electrical instruments,
apparatus and appliances. 21. Compressor installations, locomobiles, pumpr. 22. Gas cutting and gas and electric welding equipment
and accessories.- 23. Textile machinery. 24. Polygraphical equipment: Printing and type-setting machines and others. 25. Food-industry
equipment. 26. Shoe-industry equipment. 27. Industrial sewing machines. 28. Machine tools, accessories and metal-cutting instruments,
including hard alloy points or tips. 29. Wood-working machines. 30. Hand pneumatic and electrical tools. 31. Testing-machines, laboratory
equipment, control measuring apparatus and instruments. 32. Microscopes, optical apparatus, geodesic and seismographic instruments.
33. Ball and roller bearings. 34. Tractors, agricultural machinery and implements. 35. Motor cycles. 36. Photographic and cinematographic
equipment. 37. Tinned fish and caviare. 38. Cinematographic films (exposed). 39. Printed matter, including books and periodicals.
SCHEDULE 'B' GOODS FOR EXPORT FROM INDIA TO THE U.S.S.R. 1. Jute manufactures. 2. Raw wool. 3. Tea. 4. Coffee, raw. 5. Tobacco, unmanufactured.
6. Spices: Black pepper, cardamom, ginger and others. 7. Shellac. 8. Hides and skins, tanned. 9. Calf -kin-, tanned. 10. Goat skins,
tanned. 11. Leather and leather manufactures- 12. Vegetable oils. 13. 'esential oils: Sandalwood oil' lemongrass oil, palinrose Oil.
14. Cordage and ropes of vegetable fibre, including coir yam and coir ropes. 15. Chemicals. 16. Raw materials for medicines. 17.
Animals, living. 18. Cinematographic films (exposed) 19. Printed matter, including books and periodicals. 20. Indian handicraft and
cottage industry products. LETTERS No. 1 New Delhi, the 2nd December, 1953 Dear Mr. IENGAR, During the discussions for the conclusion of the Trade Agreement between India and the U.S.S.R., it was agreed that the U.S.S.R. Government
would have in India its Trade Representation to promote economic relations between India and the U.S.S.R. and to represent the interests
of the U.S.S.R. in India in all matters relating to trade between the two countries. For this purpose, it g, was agreed that the
U.S.S.R. Government can desi nate three of the officers of the U.S.S.R. Embassy in India, one as the Trade Representative of the
U.S.S.R. and the others as h is Deputies. Consistent with diplomatic conventions, these officers will be designated as (a) Commercial
Counsellor and Trade Representative, and N First Secretries (Commercial) and Deputy Trade Representatives. 2. It was agreed that
these officers will be posted in New Delhi itself and will be entitled to all the usual privileges and immunities applicable to the
members of the diplomatic corps and that it will be open to them to visit places outside Delhi on official business or otherwise.
The Trade Representation, being an integral part of the Embassy of the U.S.S.R. will be located in New Delhi and will enjoy all the
diplomatic privileges and immunites. It was agreed during the negotiations that branches of the Trade Representation of the U.S.S.R.
may be located in Bombay and in Calcutta, the latter being opened instead of the Trade Agency of the U.S.S.R, in India. Details regarding
the establishment of such branches will be settled by discussion as soon as possible. Besides the Trade Representative and his two
Deputies, no member of the Trade Representation or its branches outside New Delhi shall enjoy diplomatic or consular privileges or
immunities but such facilities as are essential for the performance of their duties and may mutually be agreed upon, will be afforded
to them. If, however, these persons are de carriere officials of the Soviet Government, certain courtesy and consideration will be
extended to them. 3. It was agreed that the commercial transactions entered into or guaranteed in India by the members of the Trade Representation including
those stationed in New Delhi shall be subject to the jurisdiction of the Courts of India and the laws thereof unless otherwise provided
by agreement between the contracting parties to the said transactions. Only the goods, debt demands and other assets of the Trade
Representation directly relating to the commercial transactions concluded or guaranteed by the Trade representation shall be liable
in execution of decrees and orders passed in respect of such transactions. It was understood that the Trade Representation will not
be responsible for any transactions concluded by other Soviet Organisations direct, without the Trade Representation's guarantee.
Yours sincerely, Sd. MA. MENSHIKOV. H.V.R. IENGAR, Esq., Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi. ____________________ No. 2. New Delhi, the 2nd December, 1953 Dear Mr. MENSHIKOV, I write to acknowledge with thanks the receipt of your letter which reads as follows : [Not reproduced] I confirm that the position
stated therein is correct. Yours sincerely, (Sd.) H.V.R. IENGAR. His Excellency, Mr. MA. MENSHIKOV, Ambassador Extraordinary and Plenipotentiary of the U.S.S.R. in India, New Delhi. ____________________ No. 3. New Delhi, 2nd December, 1953 Dear Mr. MENSHIKOV, During the course of the negotiations for the conclusion of the Trade Agreement between India and the U.S.S.R., the question of assistance
and cooperation on technical, scientific and cultural matters between the two countries was discussed. The representatives of the
U.S.S.R. said that the U.S.S.R. Government were prepared to render technical assistance that may be necessary in the installation
and operation of equipment that will be supplied by the U.S.S.R. to India under the said Agreement. The U.S.S.R. Government also
expressed willingness to render technical assistance for the planning and execution of various projects in India. The representatives of the Government of India expressed the Government of India's appreciation of the offer made by the U.S.S.R.
As the nature and extent of such assistance and cooperation will necessarily vary in each individual case, they will have to be settled
as and when occasions arise for that purpose, by negotiations between Indian Parties with the approval of the Government of India
on the one hand and the Soviet Foreign Trade Organisations on the other. Yours sincerely, (Sd.) H.V..R. IENGAR. His Excellency Mr. MA. MENSHIKOV, Ambassador Extraordinary and Plenipotentiary of the U.S.S.R. in India, New Delhi. ____________________ No. 4. New Delhi, the 2nd December, 1953 Dear Mr. IENGAR, I write to acknowledge with thanks the receipt of your letter which reads as follows : (Not reproduced] I confirm that the position
stated therein is correct. Yours sincerely, (Sd.) MA. MENSHIKOV. H.V.R. IENGAR, Esq., Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi. No. 5. New Delhi, the 2nd December, 1953 Dear Mr. MENSHIKOV, During the course of the negotiations for the conclusion of a Trade Agreement between India and the U.S.S.R. it was agreed that the
question of the inclusion of hydrogenated oils, cashew nuts, dyeing and tanning substances, footwear and sports goods in Schedule
B of the Agreement will be considered as soon as possible by the representatives of the Government of India and the U.S.S.R. Embassy
in India. Yours sincerely, (Sd.) H.V.R. IYENGAR. His Excellency Mr. MA. MENSHIKOV, Ambassador Extraordinary and Plenipotentiary of the U.S.S.R. in India, New Delhi. No. 6. New Delhi, the 2nd December, 1953 Dear Mr. IENGAR, I write to acknowledge with thariks the receipt of your letter which reads as follows : [Not reproduced] I confirm that the position
stated therein is correct. Yours sincerely, (Sd.) M.A. MENSHIKOV. H.V.R. IENGAR, Esq., Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi. ____________________ VALIDITY OF SCHEDULES EXTENDED (1954 & 1955) EXCHANGE OF LETTER.9, 23 DECEMBER 1954 THE EMBASSY OF THE U.S.S.R. IN INDIA New Delhi, the 23rd December, 1954 Dear Mr. IYENGAR, I have the honour to refer to Article 11 of the Trade Agreement between our two countries concluded in December 1953 and to the recent
discussions regarding the Schedules to be adopted for the year commencing from 2nd December 1954. It was agreed during these discussions
that the Schedules attached to the Agreement shall remain in force without change for the ensuing year as well. I should be grateful
if you would please confirm the foregoing. Yours sincerely, (Sd.) M. MENSHIKOV. H.V.R. IENGAA Esq., Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi. ____________________ GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 23rd December, 1954 Dear Mr. MENSHIKOV, I write to acknowledge receipt of your letter of today's date, which reads as follows : (Not printed) I confirm that the foregoing
correctly sets out the understanding reached between us. Yours sincerely, (Sd.) H.V.R. IENGAK H.E. Mr. MA. MENSHIKOV, Ambassador Extraordinary and Plenipotentiary of the U.S.S.R. in India, New Delhi. SCHEDULES EXTENDED FOR ANOTHER YEAR (1955) EXCHANGE OF LETTERS, 16 DECEMBER 1955 THE TRADE REPRESENTATION OF THE UNION OF SOVIET SOCIALIST
REPUBLICS IN INDIA, NEW DELHI New Delhi, the 16th December, 1955 Dear Mr. LALL, Referring to Article II of the Trade Agreement between the Government of the Union of Soviet Socialist Republics and Government of
India concluded on the 2ncl December 1953 and to the recent discussions regarding the Schedules of the goods for export from the
U.S.S.R. to India and from India to the U.S.S.R., I have the honour to confirm the understanding reached between us that the Schedules
"A" and "B" attached to the Agreement shall remain in force for a further period of one year. Yours sincerely, (Sd.) G.P. VELIKY. K.B. LALL Esq., Joint Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi. ____________________ GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 16th December, 1955. Dear Mr. VELIKY, Referring to Article II of the Trade Agreement between the Government of India and the Government of the Union of Soviet Socialist
Republics concluded on the 2nd December 1953 and to the recent discussions regarding the schedules of the goods for export from India
to the U.S.S.R. and from the U.S.S.R. to India, I have the honour to confirm the understanding reached between us that the Schedules
'A' and 'A' attached to the Agreement shall remain in force for a further period of one year. Yours sincerely, (Sd.) K3. LALL. G.P. VELucy, Esq., The Trade Representative of the U.S.S.R. in India, New Delhi. ANNEXURE: ECONOMIC RELATIONS BETWEEN INDIA AND U.S.S.R. MEMORANDUM OF CONCLUSIONS REACHED IN PRELIMINARY NEGOTIATIONS BETWEEN THE REPRESENTATIVES OF THE TWO GOVERNMENTS ON SOME QUESTIONS
CONCERNING ECONOMIC RELATIONS BETWEEN INDIA AND THE U.S.S.R. 1. In the joint statement issued by the Prime Minister of India, Jawaharlal Nehru, the Chairman of the Council of the Ministers of
the U.S.S.R. NA. Bulganin and the Member of the Presidium of the Supreme Council of the U.S.S.R. N..S. ]Khrushchev, reference has
been made to the desire of the two countries to develop economic co-operation and expand trade relations. In this connection the
representatives of the Government of India and of the Government of the U.S.S.R. have had preliminary discussions and are of the
view that it will be to the mutual benefit of the two countries to increase the volume of trade between them to as high a level as
possible. As a first step in this direction, the following understanding has been reached. (a) The U.S.S.R. will supply, and India
will purchase, one million tons of steel during the next thre6 years beginning from 1956, including 300,000 tons in the first year
and 350,000 tons per year in the two subsequent years. The terms and conditions of the supplies are to be settled by subsequent negotiations.
(b) During these three years the US.S.R. will sell, and India will purchase, such equipment for the production of oil, mining, and
other equipment and goods as may be agreed upon between the parties. The terms and conditions for the sale and purchase of these
goods and equipment will be settled by subsequent negotiations. (c) The U.S.S.R. will increase substantially its purchase from India,
both of raw materials and of manufactured goods, on terms and conditions which will be agreed upon by negotiations between buyers
and sellers. It is hoped that the total value of such purchase including sums which may be required for the maintenance of Soviet
official organisations in India will be equal to the total value of goods purchased by India from the U.S.S.R. (d) As stated in the Indo-U.S.S.R. Trade Agreement, for the import and export of the goods, both the Governments will grant maximum
facilities allowed by the respective laws, rules and regulations and will render all possible assistance for the same. 2. In view of the increased volume of trade now envisaged and in order to provide adequate shipping facilities, both the Governments
consider that it is necessary to organise regular shi-ping services to be run by Indian and Soviet ships between the ports of India
and the ports of the U.S.S.R. 3. The representatives of the two Governments have further agreed that delegations will be sent from the U.S.S.R. to India and/or
from India to the U.S.S.R. at the earliest possible date to discuss terms and conditions and to enter into agreements to implement
the above understanding. This Memorandum will be released to the Press as a Joint Indo- Soviet Communique regarding economic relations
between India and the U.S.S.R. 5. DONE in New Delhi, this 13th Day of December 1955, in two original copies, each in English and Russian, both texts being equally
authentic. (Sd.) H.M. PATEL. For the Government of India. (Sd.) P.N. KUMYKIN. For the Government of the U.S.S.R. _______________________ FURTHER EXTENSION OF SCHEDULES (1957) LETTERs EXCHANGED, 30 JANUARY 1957 THE TRADE REPRESENTATIVE OF THE UNION OF SOVIET SOCIALIST REPUBLICS IN INDIA House No. 21, Block 48,
East West Road, Chanakya.
Nagri, New Delhi. New Delhi, 30th January, 1957 Dear Mr. LALL, Referring to Article II of the Trade Agreement between the Government of the Union of Soviet Socialist Republics and the Government
of India concluded on the 2nd December, 1953, and to recent discussions in connection with the modification of Schedules 'A' and
S' attached to the Agreement, I have the honour to confirm the understanding reached between us that the Schedule shall remain in
force for a further period of one year ending 2nd December, 1957, with the following additions SCHEDULE 'A' 40. Aluminium 41. Rough Emeralds. SCHEDULE S' 21. Cashew nuts. 22. Hydrogenated oils. 23. Foot wear. 24. Woollen fabrics. 25. Mica.
Yours sincerely, (Sd.) V. MIGUNOV. Trade Representative of the USSR in India. K.B. LALL, Esq., I.C.S., Joint Secretary to the Government of India, Ministry of Commerce and Consumer Industries, New Delhi. _______________________ GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND CONSUMER INDUSTRIES New Delhi, the 30th January, 1957 Dear Mr. MIGUNOV, Referring to Article II of the Trade Agreement between the Government of India and the Government of the Union of Soviet Socialist
Republics concluded on the 2nd December, 1953, and to the recent discussions in connection with the modification of Schedules 'A'
and 'B' attached to the Agreement, I have the honour to confirm the understanding reached between us that the Schedules shall remain
in force for a further period of one year ending 2nd December, 1957, with the following additions. SCHEDULE 'A' 40. Aluminium. 41. Rough Emeralds. SCHEDULEIBI 21. Cashew nuts. 22. Hydrogenated oils. 23. Foot wear. 24. Woollen fabrics 25. Mica. Yours sincerely, (Sd.) K.B. LALL, Joint Secretary. TO V. MIGUNOV, Esq., Trade Representative of the U.S.S.R. in India, New Delhi. _______________________ EXTENSION OF VALIDITY OF SCHEDULES EXCHANGE OF LETTERS, 3 JANUARY 1958 GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 3rd January, 1958 Dear Mr. MIGUNOV, Referring to Article II of the Trade Agreement between the Government of India and the Government of the Union of Soviet Socialist
Republics concluded on the 2nd December 1953, and to recent dicussions in connection with the modification of Schedules 'A' and 'B'
attached to the Agreement, I have the honour to confirm the understanding reached between us that the Schedules shall remain in force
for a further period of one year ending 2nd December, 1958, with the following additions : SCHEDULE 'A' 42. Zinc. 43. Ammonium Sulphate. SCHEDULE: 'B' 26. Coir products (of coconut fibre). 27. Dyeing and Tanning substances. 28. Woollen carpets (High quality and ordinary quality).
29. Woollen Hosiery fabrics. Yours sincerely, Sd. K.B. LALL Joint Secretary. V. MIGUNOV Esq., Trade Representative of the U.S.S.R. in India, New Delhi.. _______________________ New Delhi, the 3rd January, 1958 Dear Mr. LALL, Referring to Article II of the Trade Agreement between the Government of the Union of Soviet Socialist Republics and the Government
of India concluded on the 2nd December, 1953, and to recent discussions in connection with the modification of Schedules 'A' and
'B' attached to the Agreement, I have the honour to confirm the understanding reached between us that the Schedules shall remain
in force for a further period of one year ending 2nd December, 1958 with the following additions SCHEDULE 'A' 42. Zinc. 43. Ammonium Sulphate. SCHEDULE'B' 26. Coir products (of coconut fibre). 27. Dyeing and Tanning substances. 4 28. Woollen carpets (High quality and ordinary quality). 29. Woollen Hosiery fabrics. Yours sincerely, Sd/- V. MiGUNOV, Trade Representative of the U.S.S.R. in India. K.B. LALL Esq., I.C.S., Joint Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi.
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