Indian Treaty Series

The Government of India and the Government of the Federal People's Republic of Yugoslavia, being desirous of extending economic relations between the two countries have agreed as follows:-

Article 1

The Government of India and the Government of the Federal People's Republic of Yugoslavia shall do everything in their power to facilitate and promote the exchange of goods and other forms of economic co-operation between two countries.

Article 2

With respect to custom duties and charges imposed on importation or exportation or imposed on the international transfer of payments for imports or exports and with respect to the method of levying such duties or charges and with respect to any regulations, formalities and charge to which customs clearing operations may be subject, any advantage, favour, privilege or immunity granted by either of the Contracting parties to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territory of the other Contracting party. The provisions of the above paragraph shall not, however, apply to the grant of continuance of any

(a) advantages accorded by either of Contracting Parties to continguous countries, in order to facilitate frontier traffic;

(b) preferences or advantages accorded by India to any country, existing on the 24th July, 1953, or in replacement of such preferences or advantages that existed prior to the 15th August, 1947.

Article 3

The Government of India and the Government of the Federal People's Republic of Yugoslavia shall afford, subject to import, export, and foreign exchange regulation in force from time to time, facilities, for importation from and exportation to India or Yugoslavia respectively of the goods specified in the enclosed Schedules "A" and "B" equal to those accorded to any other country for the same or similar goods. Nothing stated above shall preclude the appropriate trade organisations of the two countries from concluding contracts for the purchase and sale of goods not specified in the Schedules "A" and "B".

Article 4

Payments and other charges in connection with the import and export of goods between the two countries shall be settled in Rupees or Sterling as may be mutually convenient.

Article 5

The two Governments agree to establish and promote scientific- technical co-operation between the two countries in conformity with the rules and regulations in force in their respective countries. In particular, the two Governments resolve to encourage fruitful co-operation between Indian and Yugoslav enterprises, economic and technical organisations and scientific research institutions, by way of sharing of technical skill, mutual exchange of technical documentations, sponsoring of technical missions, provision of technicians and training facilities, supply of equipment and machinery and in such other ways as may be mutually agreed upon.

Article 6

The provisions of the Convention and Statute on the International Regime of Maritime Ports and Protocol of Signature (Geneva, December 9, 1923) shall govern the mutual treatment of the merchant ships of the Contracting Parties. In particular, ships sailing under the flag of either country shall, in respect of bunkering and other services, be accorded in the ports of the other country the same facilities and the same treatment in respect of duties and taxes as are accorded to national shipping, except that any concessions made to shipping engaged in the coastal trade of either country shall not be admissible to ships of the other country.

As regards the treatment of crews, the captains and members of the crews of the merchant ships of each Contracting Party will be accorded the most favoured nation treatment by the competent authorities of the other Contracting Party.

Article 7

The two Contracting Parties undertake to consult with each other in respect of any matter arising from or in connection with the implementation of this Agreement.

Article 8

This Agreement shall be implemented from the 31st March, 1956, and shall remain in force upto the 31st December, 1959. The Schedules "A" and "B" attached, which form an integral part of this Agreement shall remain in force up to the 31st December, 1956 and shall be adopted afresh for each subsequent calendar year, subject to such modifications as may be agreed upon.

DONE in the English language at New Delhi, this Thirty-first day of March 1956.

(Sd) K.B. LALL,
For the Government of India.

(Sd) MARIN CETINIC,
For the Government of the Federal People's Republic of Yugoslavia.

SCHEDULE "A"

EXPORT FROM YUGOSLAVIA TO INDIA

1. Food stuffs - canned or bottled including canned fish in oil and marmalade and jams

2. Soft and hard sawn timber

3. Wooden furniture and bentwood chairs

4. Tea chests

5. Cotton sewing thread including fishing net thread

6. Woollen and artificial silk fabrics including woollen knitted apparela

7. Haberdashery and drapery

8. Caustic soda

9. Soda ash

10. Calcium carbide

11. Auxiliary chemicals for the textile and leather industries

12. Raw materials for paints

13. Glue

14. Carbon black

15. Sulphate of alumina.

16. Polyvinyl chloride and plastic materials

17. Dyeing and tanning substances

18. Pharmaceutical products and serums

19. Cigarette paper in booklet form

20. Sheet and plate glass, wool and glassware excluding tumblers

21. Cement

22. Asbestos cement pipes

23. Marble and stone and manufactures thereof

24. Hardboard and insulating boards

25. Building materials, ceramic tiles and sanitary wares

26. High and low tension insulators

27. Fire bricks

28. Clocks

29. Bicycles and parts thereof

30. Brushes and toilet requisites

31. Stationery

32. Iron and steel pipes and tubes and fitting thereof, iron and steel ingots, blooms, billets and slabs, iron and steel heavy structurals for construction of buildings, bridges, tanks, towers, pipe lines, etc.

33. Special steel and steel alloy

34. Steel sheets and plates, angles, channels, beams, wire and wire ropes

35. Iron and steel screws, bolts, rivets and nails

36. Rolling stock, tipping wagons, rails, switches, crossings and accessories

37. Copper rods, pipes, sheets and wires

38. Aluminium bars, plates, sheets, pipes, sections, wires and wire ropes

39. Lead ingots, sheets, pipes etc.

40. Zinc ingots, sheets, etc.

41. Antimony

42. Non-ferrous alloys and manufactures

43. Hardware, iron and mongery and tools

44. Steam boilers, diesel and steam locomotives and tractors

45. Water turbines, pumps, sluice gates, valves and other hydraulic equipment

46. Steam turbines and diesel engines of over 30 H.P.

47. Textile machinery and accessories

48. Electric generators, diesel and hydroelectric sets

49. Fractional H.P. motors (D.C.), electrical motors above 50 H.P. and parts thereof

50. Electric control gear and electric transmission gear (including transformers)

51. Electric instruments, apparatus and appliances including electric meters and electric tools

52. Cinema projectors, wireless instrument and components of wireless apparatus, telephone exchanges and high frequency telephone installations

53. Telephone and electrical cables of high and low tension

54. Electro-medical, veterinary and dentistry apparatus and instruments

55. Metal working and workshop machinery and tools

56. Mining machinery and parts thereof

57. Wood working machinery and tools

58. Construction machinery

59. Cranes-floating, industrial, parts, hand operated and transporters and elevators

60. Complete industrial plants

61. Ships-passenger and cargo, and tankers.

SCHEDULE "B"

EXPORTS FROM INDIA TO YUGOSLAVIA

1. Iron ore

2. Manganese ore

3. Mica

5. Myrobalan and myrobalan extracts

6. Tea

7. Coffee raw

8. Spices including pepper

9. Tobacco, raw and unmanufactured

10. Cashewnuts

11. Tapioca and tapioca products

12. Oils---cotton seed, rape and mustard, niger and kardi, linseed, castor seed and groundnut

13. Hydrogenated oils

14. Essential oils including sandalwood oil, palmarosa oil and lemongrass oil

15. Cotton seed cake (decorticated) niger and kardi seed cakes

16. Raw goat skins and sheep skins known as Amritsar papras

17. Tanned hides and skins (Buffaloes and others)

18. Leather manufactures

19. Cordage and ropes of vegetable fibre including coir and coir products

20. Textiles, cotton and woollen

21. Silk and art silk fabrics

22. Handloom. products

23. Fibres for brushes and brooms

24. Sports goods

25. Chemicals and pharmaceuticals

26. Provisions and oilman's stores except tinned milk and milk products and sago rice

27. Raw cotton and cotton waste

28. Raw wool

29. Wool waste

30. Jute goods

31. Light engineering goods

32. Ball bearings

33. Handicrafts and cottage industry products, e.g., ivory products, brass and bidriware, silver, filigree, grass and fibre products and wood carving.

34. Gum tragacanth

35. Hosiery goods

36. Linoleum

37. Paraffin wax

38. Naphthalene

LETTERS

New Delhi, the 31st March, 1956

Dear Mr. LALL,

In the course of our discussions which resulted in the Trade Agreement which has been signed today, we reviewed the possibilities of further expanding the trade between our two countries and found that there was considerable scope for further development of mutually beneficial trade. In particular, we considered -that possibilities existed immediately for export, amongst other things, of substantial quantities of rolled steel products and cement that the two Governments would encourage and assist the respective trading organisations on both sides to realise these possibilities and, if necessary, the Government of India would be prepared to use their projected State Trading Corporation to facilitate this.

2. We further agreed that representatives from the two countries would meet from time to time to settle details about price, specifications and delivery periods and enter into contracts for the sale and purchase of specific quantities.

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

Yours sincerely,
(Sd.) MARIN CETINIC,
Head of the Yugoslav Economic Delegation

Mr. K.B. LALL, I.C.S.
Joint Secretary to the Government of India,
Ministry of Commerce and Industry,

New Delhi.

Dear Mr. CETINIC,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows :

(Not printed)

I wish to confirm that the above correctly expresses the understanding reached between us.

Yours sincerely,
(Sd.) K.B. LALL.

His Excellency Mr. MARIN CETINIC,
Head of the Yugoslav Economic Delegation,
New Delhi.

Dear Mr. LALL,

I would like to express my satisfaction in respect of the discussions

which we have had concerning the supply of Yugoslav ships to India and to place on record the understanding reached on the subject between us on behalf of-the two Governments :

(1) The Government of the Federal People's Republic of Yugoslavia expresses its satisfaction on the Government of India's intention to purchase ships from Yugoslavia. The Yugoslav Government will use its influence with the Yugoslav ship-building yards for necessary priorities in respect of delivery time etc.

(2) The Yugoslav Delegation have received the specifications of the types of ships in which the Government of India and the Indian ship owners are interested. The Yugoslav shipyards will shortly furnish to the Government of India firm informations regarding (a) dates of delivery, and (b) estimated cost of construction.

(3) Taking into consideration the fact that the actual facilities of the Yugoslav shipyards are already booked up to a considerable extent and in order to secure adequate delivery time, the two Governments agree to speed up the clearance of preliminary technical questions which are still outstanding and to arrange meetings of technical experts with a view to expediting the conclusion of contracts for the sale and purchase of ships.

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

Yours sincerely,
(Sd.) MARIN CETINIC,
Head of Yugoslav Economic Delegation.

Mr. K.B. LALL,
Joint Secretary to the Government of India,
Ministry of Commerce and Industry,
New Delhi.

Dear Mr. CETINIC,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows :

(Not printed)

I wish to confirm that the above clearly expresses the understanding reached between us.

Yours sincerely,
(Sd.) K.B. LALL.

His Excellency Mr. MARIN CETINIC,
Head of the Yugoslav Economic Delegation,
New Delhi.

EMBASSY OF THE FEDERAL PEOPLE'S
REPUBLIC OF YUGOSLAVIA

Dear Mr. LALL,

I have the honour to refer to Article 8 of the Trade Agreement between the Government of the Federal People's Republic of Yugoslavia and the Government of India concluded on 31st March, 1956, and to our recent discussions regarding the Schedules to be adopted for the year ending 31st December, 1957. It was agreed during there discussions that the Schedules attached to the said Trade Agreement shall be substituted by the revised Schedules appended hereto.

I should be grateful if you would please confirm the foregoing.

Yours sincerely,
(Sd.) BOGDAN CRNOBRNJA.

K.B. LALL, Esq., I.C.S.,
Joint Secretary to the Government of India,
Ministry of Commerce and Industry,
New Delhi.

Dear Mr. CRNOBRNJA,

I write to acknowledge receipt of your letter of today's date. The letter reads as follows :

(Not reproduced)

I confirm that this sums up correctly the result of the discussions between the representatives of India and Yugoslavia.

Yours sincerely,
(Sd.) K.B. LALL.

H.E. Mr. BOGDAN CRNOBRNJA,
Ambassador Extraordinary and Plenipotentiary
of the Federal People's Republic of Yugoslavia in India.
New Delhi.

EMBASSY OF THE FEDERAL PEOPLE'S REPUBLIC OF
YUGOSLAVIA, NEW DELHI.

Dear Mr. SANDILYA,

Referring to Article VIII of the Trade Agreement between the Government of India and the Government of the Federal People's Republic of Yugoslavia concluded on the 31st March, 1956, and to the recent discussions in connection with the Schedules to be adopted for the year ending 31st December, 1958, Ihave the honour to. confirm the understanding reached between us that the Schedules last revised on the 19th June, 1957 shall remain in force for a further period of one year ending 31st December, 1958, without any modifications.

I should be grateful if you would please confirm the foregoing.

Yours sincerely,
Sd/- (BOGDAN CRNOBRNJA)
Ambassador

Shri D. SANDILYA,
Joint Secretary to the Government of India,
Ministry of Commerce and Industry,
New Delhi.

Dear Mr. CRNOBRNJA,

I write to acknowledge receipt of your letter of today's date which reads as follows :

(Not reproduced)

I confirm that the foregoing correctly sets out the understanding reached between us.

Yours sincerely,
Sd/- D. SANDILYA
Joint Secretary.

H.E. Mr. BOGDAN CRNOBRNJA,
Ambassador Extraordinary and Plenipotentiary
of the Federal People's Republic of Yugoslavia in India, New Delhi.

The Government of the Federal People's Republic of Yugoslavia and the Government of India, in accordance with the provisions of Article 7 of the Trade Agreement between the Government of the Federal People's Republic of Yugoslavia and the Government of India of the 31st of March 1956, being animated by the desire to promote the development of trade between the two countries to the mutual advantage, have as a result of the discussions held in Belgrade from the 19th to 25th of May 1959 agreed as follows :

In place of the provisions of the existing Article 4 of the Agreement, the following has been agreed upon :

1. Payments between Yugoslavia and India, as specified under 3 below, shall be effected in non-transferable Indian Rupees, and in accordance with the existing foreign exchange regulations in force in both countries.

2. The National Bank of the Federal People's Republic of Yugoslavia shall open to this effect with the Reserve Bank of India a Central Account in Indian Rupees. The National Bank of the Federal People's Republic of Yugoslavia shall also open accounts in Indian Rupees, at its discretion, with the Indian Banks authorized to deal in foreign exchange. Other Yugoslav Banks, authorized to deal in foreign exchange shall open similar accounts with Commercial Banks in India in consultation with the Reserve Bank of India.

3. The following payments shall be effected through the accounts under paragraph 2 above :

(a) Payments for goods exported and imported in accordance with this Agreement;

(b) Payments connected with commerical transactions, such as insurance, port charge, storage, forwarding expenses, etc.;

(c) Maritime freights for goods exported or imported between India and Yugoslavia on Yugoslav or Indian vessels;

(d) Payments for technical assistance;

(e) Payments for travelling expenses of commercial nature;

(f) Payments for expenses connected with participations at international fairs and exhibitions;

(g) Any other payment as might be agreed upon between the National Bank of the Federal People's Republic of Yugoslavia and the Reserve Bank of India.

4. The banking arrangement to give effect to the provisions in this Protocol will be settled between the National Bank of the Federal People's Republic of Yugoslavia and the Reserve Bank of India.

5. Any balance outstanding in the Central Account upon the expiry of this Protocol shall be liquidated by export of goods within six months. Should after this period there still remain any balance in this Account both countries shall consider other methods of liquidation. Should within 90 days of the expiry of the six months period there still remain any non-liquidated balance the debtor country shall liquidate it on creditor's demand without delay in free currency.

This Protocol shall be deemed to be an integral part of the Trade Agreement of the 31st of March 1956 between the two countries with effect from the 25th of May, 1959. From that date all references to the Trade Agreement shall be construed as references to the Trade Agreement of the 31st of March, 1956, as amended by this Protocol. This Protocol shall be implemented from the day of its signature, and shall come into force upon the approval of the authorities concerned in both countries.

DONE AND SIGNED, in duplicate, in English, either copy being authentic, in Belgrade on this 25th Day of May 1959.

(Sd.) x x x
FOR THE GOVERNMENT OF INDIA.

(Sd.) x x x
FOR THE GOVERNMENT OF THE FEDERAL PEOPLE'S REPUBLIC OF YUGOSLAVIA.