Indian Treaty Series

New Delhi, 5 September 1956

The Government of the Republic of India and the Government of the Union of Burma, being desirous of strengthening the friendship traditionally existing between them and of promoting closer economic and commercial relations between their countries, have agreed as follows

Article I

The two Governments shall, within the framework of their laws and regulations in force from time to time, afford necessary facilities for the import/export of commodities mentioned in the attached schedules 'A' and 'B'. Article II The two Governments shall provide reasonable facilities for import into and export from either country of commodities not specifically mentioned in the attached schedules 'A' and 'B'.

Article III

Each Government shall give full consideration to suggestions that may be made from time to time by the other Government for facilitating the export of commodities which are in short supply in one country and which have been traditionally imported from the other country.

Article X

Each Government shall give, subject to prices and quality being competitive full consideration to suggestions that may be made from time to time by the other Government with a view to the development and expansion of commerce and the diversification and balancing of trade between the two countries.

Article V

The two Governments recognise the needs and requirements of each other for foreign exchange in the context of their developing economies and agree to take such steps as may be necessary to achieve as near a balance in their trade as may be practicably possible.

Article VI

Each Government shall accord to the commerce of the country of the other Government treatment no less favourable than that accorded to the commerce of any third country.

Article VII

The two Governments agree to explore ways and means and to take necessary steps for the most convenient and economical transportation of commodities between the two countries.

Article VIII

The two Governments will use their best endeavours to promote the development and interest of shipping of both countries and in particular, shall accord to the ships sailing under the flag of either country, while entering, staying or leaving the ports of the other country, all facilities consistent with their respective laws, rules and regulations.

Article IX

This Agreement takes effect from the date on which it is signed and will remain in force for a period of 5 years, subject to such modification as may be agreed upon between the two Governments at the beginning of each calendar year. DONE at New Delhi, on the fifth day of September 1956 in two original copies in the English language, both of which are authentic.

(Sd.) K.B. LALL,

For the Government of the Republic of India.

(Sd.) AUNG SOE,

For the Government of the Union of Burma.

COMMODITIES FOR EXPORT FROM INDIA TO BURMA

Textiles: Cotton and Woollen such as: Cotton, raw and waste. Wool, raw and waste. Cotton and woollen piecegoods. Cotton clothes and saris. Hosiery and knitted garments, woollen, cotton and rayon. Silk, art silk and rayon fabrics. Cotton twist and yarn. Other cotton, woollen and silk manufacures. Jute manufactures.

Food: Tea, coffee, spices including pepper. Fish, dried and salted. Fish prawns, dried. Provisions and oilman stores. Tapioca and its products. Fruits - fresh, dried, preserved, bottled and canned. Cashewnuts

Agricultural products: Hydrogenated oils, i.e. "Vanaspati" or vegetable ghee. Vegetable oils and oilseeds. Essential Oils. Tobacco, raw and unmanufactured.

Chemical products and soaps: Chemicals and chemical preparations. Pharmaceuticals. Drugs and medicines Napthalene. Antibiotics. Sera and Vaccines. Alkaloids and Opium and its derivatives. Soap, toilet and household. Toilet requisites and perfumery. Paints, pigments and varmishes

Engineering goods: Printing machinery. Diesel engines. Pumps driven by diesel engines and electric motors. Sewing machines. Bicycles and their parts. Textile machinery such as carding machinery and weaving looms. Machine tools.

Hand tools and small tools. Small river crafts. Sugar cane crushing machinery. Rice, flour and oil crushing machinery. Ball bearings. Agricultural implements. Automobiles and their parts. Gliders.

Electricgoods: Electrical appliances and accessories such as conduit pipes, switches, bells, holders, cut-outs etc. Electrodes. Electric bulbs and tubes. Generators, portable and fixed. Radio receivers. Electric fans and their parts. Batteries (dry and wet). Electric torch lights. Electric motors. Telephone apparatus. Ebonite sheets, rods and tubes. Cables and wires.

Household and building requirements: Utensils, including stainless steelware. Cooking ranges, heaters, electric irons, toasters, kettles, etc. Household electrical fittings and fixtures. Roofing tiles. Bricks. Carpets and durries. Linoleum. Sanitaryware. G.1 Pipes and fittings. Manhole covers and plates. Hurricane lanterns. Kerosene stoves. Incandescent oil presmire lamps. Safes, strong boxes and room fittings. Crockery.

Hardware: Locks and padlocks. Cutlery Bolts, nuts, screws and hinges. Steel fumiture and hospital appliances, etc. Weighing machines. Surgical and medical instnunents

Scientific instruments ofall types. Rubber manufactures: Tyres and tubes.

Other rubber manufactures. Leather manufactures: Boots, shoes and belts. Other leather manufactures. Artificial leather goods.

Handicrafts and cottage industry products: Stationery and Paper. Miscellaneous: Coir and coir products. Dyeing and tanning substances. Lac and shellac. Myrobalan and myrobalan extracts. Glassware including tableware, glass bottles and bangles. Synthetic stones. Books and printed matter. Postage stamps. Refined mineral oil. Sports goods. Mica. Firebricks and fireclay.

SCHEDULE 'B'

COMMODITIES FOR EXPORT FROM THE UNION OF BURMA TO INDIA

Rice.

Beaus and pulses. Maize.

Raw cotton. Teak.

Durable hardwoods.

Non-durable hardwoods. Stick lac. Cutch.

Tungoil. Rubber. Tin ore.

Wolfram ore.

Zinc concentrates. Pig lead and ore. Copper matte.

Handicrafts and cottage industry products.

Precious stones, semi-precious stones and synthetic stones.

GOVERNMENT OF INDIA

MINISTRY OF COMMERCE AND CONSUMER INDUSTRIES

New Delhi, the 5th September, 1956

Dear U. AUNG SOE,

In the course of our discussions which resulted in conclusion of the Trade Agreement which was signed today, we discussed the measures that need to be taken to develop trade and commerce between our two countries.

2. In this connection, you will recall that India has agreed to buy 2 million tons of rice spread over a period of 5 years. As for Burma, I would like to invite your attention to the following paragraph occurring in the letter from Mr. MA. Raschid, the then Minister of Trade Development and Labour to Shri Ajit Prasad Jain, our Minister for Food and Agriculture : "I would like to assure you that the Government of the Union of Burma will take from time to time such steps as may be necessary to achieve as near a balance in trade between the two countries as may be possible and trust that such balance will be achieved over the period of the Agreement."

3. We have discussed the possibility of using State Trading Organisations on both sides to develop trade between the two countries to a higher level. It will, it has been agreed, be the endeavour of the two Governments to make use of these organisations to conclude specific contracts and to facilitate contacts between State Trading Organisations and individual firms on either side.

4. I should be grateful if you would kindly confirm that the above correctly sets out the understanding reached between us.

Yours sincerely,

(Sd.) K.B. LALL.

H.E. SITHU U. AUNG SOE, Ambassador for the Union of Burma in India, New Delhi.

New Delhi, the 5th September, 1956

Dear Mr. LALL,

I have the honour to acknowledge the receipt of your note of the 5th September 1956, which is in the following terms (Not printed) 2. 1 have the honour to confirm the above understanding. Please accept the assurance of my highest consideration.

(Sd.) AUNG SOE,

Ambassador for the Union of Burma in India.

Mr. K.B. LALL,
Joint Secretary to the Government of India,

Ministry of Commerce and Consumer Industries, New Delhi. MODIFICATION OF SCHEDULES (1958)

In pursuance of Article V of the Agreement of Trade and Commerce between the Government of the Republic of India and the Government of the Union of Burma, read with the letters exchanged between them, dated the 5th day of September, 1956, the two Governments hereby agree : 1. To facilitate and permit the import from the Union of Burma into India and from India into the Union of Burma of the commodities listed in Schedules A-1 and A-2, attached hereto, upto the values mentioned therein.

2. To facilitate and authorise the procurement from the Union of Burma into India and from India into the Union of Burma of commodities listed in Schedules B-1 and B-2, attached hereto within the overall ceilings specified therein.

3. That all payments in respect of the sale and purchase of the commodities listed in the said Schedules A-1, A-2 and B-1 and

B-2 between the Republic of India and the Union of Burma shall be made in Indian Rupees. For the exclusive purposes of facilitating such payments, the State Commercial Bank of the Union of Burma, Rangoon, shall open two separate clearing accounts in Indian Rupees, called India-Burma Trade Development Account A (hereinafter referred to as Account A) and India-Burma Trade Development Account B (hereinafter referred to as Account B) with the State Bank of India, New Delhi. Payments to be made by residents of India to residents of the Union of Burma will be effected by crediting the amounts of such payments to the said Accounts. Payments to be made by residents of the Union of Burma to residents of India will be effected by debiting the amounts of such payments to the said accounts. Payments in respect of the sale and purchase of the commodities listed in the said Schedules A-1 and A-2 will be made through Account A, while payments in respect of the sale and purchase of the commodities listed in the said Schedules B-1 and B-2 will be made through Account B.

4. That the outstanding amount, if any, in Account A, at the termination of this agreement shall be settled only by increased import/export, as the case may be of commodities listed in the said Schedules A-1 and A-2.

5. That Account B will be a balancing account with a swing limit of Rs. 30 lakhs on either side. When the outstanding amount in Account B exceeds the said swing limit, the country running an import surplus may suspend imports temporarily while the country running an import deficit will take steps to expedite procurement so that the outstanding amount is kept within the swing limit. The two Governments shall compare the credits and debits at their six monthly review meetings and will devise such measures as may be agreed upon to rectify persisting imbalance in favour of one or the other party. In case these measures fail to produce the desired effect within the ensuing period of six months, the two Governments agree to liquidate the excess over the swing limit by payment in Pound Sterling. The amount outstanding at the termination of this agreement will be settled by purchase/sale of the commodities listed in the said Schedules B-1 and B-2 within a period of six months thereafter. The balance, if any, at the end of the said extended period of six months will be settled in Pound Sterling.

6. That all transactions in commodities listed in the said Schedules A-1, A-2 and B-1, B-2 will, for the purpose of Account A and Account B, be valued either on F.O.B., C.&F. or C.I.F. basis, depending on the terms of contracts executed.

7. That technical details for the operation of Account A and Account B shall be settled between the State Commercial Bank of Union of Burma, Rangoon, and the State Bank of India, New Delhi.

8. That in order to facilitate the implementation of this agreement the two Governments shall review the working of this agreement every six months, viz. towards the end of March and September every year.

9. That this agreement will be deemed to be a Protocol to the Agreement of Trade and Commerce concluded between the Government of the Republic of India and the Government of the Union of Burma on the 5th day of September 1956, and will remain in force to the duration thereof. THIS PROTOCOL is signed in Rangoon on the 25th day of September, 1958 in two original copies in the English language, both of which are authentic.

Sd/- LALJI MEHROTRA,

On behalf of the Government of the Republic of India.

Sd/- B. SAN,

On behalf of the Government of the Union of Burma.

SCHEDULE A-1

IMPORTS INTO INDIA FROM BURMA