Indian Treaty Series

LETTERS ROYAL SWEDISH LEGATION

New Delhi, the 30th June, 1953

Dear Mr. BHOOTHALINGAM,

I refer to our recent discussions regarding the trade relations between India and Sweden for a further period of two years from the 1st of January, 1953, and note that Sweden being treated as a soft currency country, licences for imports into India of any particular goods or commodity from Sweden would be granted on the same basis as licences for imports from any other country within the soft currency group. This implies that there will be no discrimination against Sweden regarding the import of any particular commodity from countries in this currency group. It further implies that if India enters into any trade agreements with any members of this currency group, Sweden will enjoy the same favours and privileges as those which may be given to the countries with which India may enter into such agreements.

2. It is understood that in case of an alteration in India's export regulations, Sweden will be accorded the same treatment as any other country in her currency group.

3. 1 further confirm the agreement reached during our discussions that both the Governments of Sweden and India would use their best endeavours to promote the trade and shipping of the two countries and that they would give a fair and equitable treatment to all questions arising in this connection.

4. It is noted that India would welcome technical assistance to build up new industries and improve existing ones, and I am glad to state that Sweden will use her best endeavours to meet requests of this kind. The Government of Sweden is prepared to encourage Swedish industries to place their experience at the disposal of India, and it is our understanding that your Government will use its good officer, to facilitate Swedish contacts with Indian industry. The actual negotiations will, of course, be for the industrialists on both sides to conduct and any agreement arrived at will be subject to the foreign exchange and other regulations that may be in force.

5. 1 take this oppportunity to confirm that the liberalisation of imports into Sweden from the countries in the Organisation for European Economic Co-operation will continue to be extended to imports from India subject to your reply. The concessions as regards import liberalisation granted by the Government of Sweden to the members of the above-mentioned organisation will thus be applied to Indian goods imported into Sweden.

Yours sincerely,

(Sd.) PER WIJKMAN.

S. BHOOTHALINGAM, Esq., Joint Secretary,

Ministry of Commerce and Industry, New Delhi.

GOVERNMENT OF INDIA

MINISTRY OF COMMERCE AND INDUSTRY.

New Delhi, the 30th June, 1953

Dear Mr. WIJKMAN,

Thank you for your letter of today's date setting out the results of recent trade discussions between representatives of the Swedish and Indian Governments.

2. 1 confirm that the letter represents correctly the understanding reached subject to the following : (a) With reference to the first paragraph of your letter it is understood that Sweden will continue to receive soft currency treatment during the period of the agreement. Reservation is, however, made for any emergency measures that may be necessitated by the balance of payments situation. (b) In regard to the last sentence of the first paragraph of your letter, it is correct to say that it is the intention of the Government of India not to extend any discriminatory treatment in or through trade Agreement, to any country of the same currency group. (c) We are making certain exceptions in our import trade control regulations in respect of certain commodities brought into India from neighbouring countries in sailing vessels. (d) There are also certain relaxations in the matter of import regulations in favour of imports from the neighbouring country Afghanistan.

3. It is agreed that in case of an alteration in India's export regulations, Sweden will be accorded the same treatment as any other country in her currency group.

4. I take this opportunity of thanking the Swedish Government for extending to India the import liberalisations which have been granted to countries which are members of the Organisation for European Economic Co-operation.

5. It is understood that the reservation made under (a) will apply also for Sweden and that Sweden may re-examine the application in regard to India of the import liberalisation indicated here in case of emergency measures taken by India. Yours sincerely,

(Sd.) S. BHOOTHALINGAM.

His Excellency Mr. PER WIJKMAN,

Envoy Extraordinary and Minister Plenipotentiary

for Sweden in India, 11, Ratondone Road, New Delhi.