The Government of India and the Government of the Polish People's Republic animated by the desire to further develop and strengthen
economic relations between the two countries hereby agree as follows:-
Article I
Trade between the two countries shall be carried on in accordance with the Import, Export and Foreign Exchange Regulations in force
from time to time in the respective countries.
Article II
The two Governments shall, within the framework of the laws and regulations for the time being in force, accord necessary facilities
for the import and export of the commodities mentioned in the attached schedules 'A' and 'B'.
Article III
The two Governments shall also endeavour to develop trade in commodities not mentioned in the attached schedules A' and `B'.
Article IV
The current payments of commercial and non-commercial nature between India and Poland shall be made in Indian rupees. For this purpose,
the Narodowy Bank Polski will maintain an account in rupees with one or more commercial banks in India authorised to deal in foreign
exchange. In addition, the Narodowy Bank Polski will maintain another account with the Reserve Bank of India. All the transactions
to be financed in rupees will take place through the account (accounts) maintained with the commercial bank (banks). The account
of the Narodowy Bank Polski with the Reserve Bank of India will be used only for replenishing the balance with the commercial bank
(banks) as and when necessary or for converting of the amounts accumulated in this account into pounds Sterling.
2. Payments permitted under the India Exchange Control Laws to be made by residents of India to residents of Poland will be effected
by crediting the amount of such payments to the above-mentioned account (accounts) of Narodowy Bank Polski with the Indian commercial
banks. Payments submitted under the Polish Foreign Exchange Laws to be made to the residents of India by residents of Poland will
be effected by debiting the said account (accounts) with the Indian commercial banks.
3. The account (accounts) will be replenished as necessary by one of the following methods, namely (a) By transfer of funds from another
account of Narodowy Bank Polski with another commercial bank or with the Reserve Bank of India; or (b) By the sale of Sterling to
the Bank concerned.
4. Any balance in rupee account maintained by the Narodowy Bank Polski 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 bank's selling rate for Sterling
as fixed from time to time by the Indian Exchange Banks Association.
5. The above-mentioned balances will also be convertible into Sterling after the expiry of this Agreement.
Article V
Mercantile ships of both countries while entering, staying in or leaving the ports of the other country shall enjoy the most favoured
treatment accorded by the respective laws, rules and regulations to ships save those engaged in coastal navigation.
Article VI
The two Governments agree to explore ways and means, and to endeavour to take necessary steps, for the convenient and economical transportation
to the extent possible by Indian and Polish ships of goods to be exported or imported between the two countries.
Article VII
The two Governments agree to establish and promote close co-operation in the field of science and technology 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 Polish industrial organisations by way of sharing of technical skill, mutual exchange
of technical documentations, sponsoring of technical missions, provision of technicians and training facilities and supply of equipment
and machinery.
Article VIII
The two Governments undertake to consult each other as and when necessary and to give full consideration to suggestions that may be
made from time to time for promoting trade and economic co-operation between the two countries.
Article IX
This agreement will come into force on 1st April 1956 and shall remain in force up to 31st December 1959 The schedules 'A'and 'B'
attached to the Agreement, will, however be in force during the current year only : and will be renewed for each subsequent calendar
year, subject to such modifications as may be agreed upon in this behalf.
2. DONE in duplicate, in New Delhi on the 3rd Day of April 1956 in Hindi, Polish and English languages, all the texts being equally
authentic but the English text being relied upon in case of doubts.
(Sd.) H.V.R. IENGAR,
For the Government of India.
(Sd.) S.J. GRUDZINSIU,
For the Government of the People's Republic of Poland
SCHEDULE A
LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM POLAND TO INDIA
1. Machinery for building and road building, mineral and mining equipment, foundry equipment and other heavy machinery.
2. Textile machinery.
3. Machinery for drilling, milling and welding.
4. Metal and wood working machine tools.
5. Hand tools.
6. Complete plant and equipment such as sugar factories, alcohol distilleries, machine tool producing plants, railway rolling stock
producing plants and electrical apparatus producing plants.
7. Rolled steel products.
8. Iron and steel structures, including bridges and towers.
9. Electrical instruments, apparatus and appliances, transformers and lighting conductors.
10. Diesel engines, electric motors, compressors, pumps, conveyors and electric fans.
11. Overhead travelling, lorry and mobile cranes.
12. Telephone apparatus and radio receivers and parts.
13. Agricultural implements and tractors.
14. Motor cycles and cycles.
15. Sewing machines.
16. Hardware and iromnongery as nails, wires, etc.
17. Meters of all kinds (gas, water, electricity, etc.)
18. Cast iron pipes.
19. Enamelled ware and sanitary goods.
20. Railway locomotives, wagons and carriages.
21. Ocean going vessels.
22, Paper and stationery.
23. Newsprint.
24. Zinc electrolytic, sheets and dust.
25. Glass, glassware and chinaware.
26. Cotton, woollen, linen and rayon fabrics.
27. Optical and medical instruments.
28. Musical instruments.
29. Bentwood furniture, wallboard and oak parquetry.
30. Industrial materials like carbon black active, bone glue and lactic casein.
31. Toys and sports articles.
32. Rubber products (sports, sanitary, etc.)
33. Raw cinema films.
34. Drugs and medicines.
35. Chemicals.
36. Manures, e.g. Potassium nitrate, aluminium, potassium sulphate of sodium nitrate.
37. Paints and painter's materials. 38. Dyes, dyestuffs and pigments.
39. Cement.
40. Polish films (exposed).
41. Works of fine arts.
42. Post stamps.
43. Books, gramophone records and music notes.
SCHEDULE B
LIST OF SOME OF THE GOODS AVAILA13LE FOR EXPORT FROM INDIA TO POLAND
1. Iron ore.
2. Manganese ore.
3. Mica.
4. Shellac.
5. Myrobalan and myrobalan extracts.
6. Cane.
7. Tea.
8. Coffee raw.
9. Spices including pepper.
10. Tobacco, raw and unmanufactured.
11. Cashewnuts.
12. Rice.
13. Rice-husk meal and de-oiled groundnuts meal.
14. Tapioca and tapioca products.
15. Oils--cotton seed, rape and mustard, niger and kardi, linseed, castor seed and groundnut.
16. Hydrogenated oils.
17. Essential oils including sandalwood oil, palmarosa oil and lemon grass oil.
18. Cotton seed cake (decorticated), niger and kardi seed cakes.
19. Raw goat skins and sheep skins known as Amritsar papras.
20. Tanned hides and skins (buffaloes and others).
21. Leather manufactures.
22. Cordage and ropes of vegetable fibre including coir and coir products.
23. Textiles, cotton and woollen.
24. Silk and art silk fabrics.
25. Handloom products.
26. Fibre for brushes and brooms.
27. Sports goods.
28. Chemicals and pharmaceuticals.
29. Provisions and oilman's stores except tinned milk and milk products and sago rice.
30. Raw cotton and cotton waste.
31. Raw wool.
32. Wool waste.
33. Jute goods.
34. Light engineering goods
35. Ballbearings.
36. Handicrafts and Cottage Industry products, e.g.-ivory products, brass and bidriware, silver filgree, grass and fibre products
and wood, carvings.
37. Indian films (exposed).
38. Gum tragacanth.
New Delhi, the 3rd April, 1956
Dear Mr. LALL,
I write to place on record that during the course of the negotiations resulting in the Trade Agreement between our two countries it
was agreed that in order to give practical effect to our desire to step up the level of trade between our two countries it would
be desirable to conclude firm contracts for the sale by Poland of rolled steel products and cement to India and of iron ore by India
to Poland. It was further agreed that negotiations for the conclusion of these contracts would be started at the earliest practicable
date.
2. It was also hoped that in order to facilitate the exchange of goods between our two countries on an economical basis it would-
be possible for our two Governments to enter immediately into discussions with a view to devising arrangements to give effect to
the provisions of Article VI of the Agreement. In this connection the Government of Poland would be ready to enter into contracts
with the Government of India for the sale of ocean-going vessels. The specifications of the ships which are likely to be available
for sale have been communicated to the Government of India who are considering the matter further.
3. I would be glad to have your confirmation that the above sets out correctly the understanding reached between us.
Yours sincerely,
(Sd.) A. WOLYNSKI.
Chairman of the Polish Trade Delegation.
Mr. K.B. LALL, I.C.S.,
Joint Secretary to the Government of India,
Ministry of Commerce and Industry,
New Delhi.
Dear Dr. WOLYNSKI,
I have the honour & acknowledge receipt of your letter of today's date which reads as follows :
I wish to confirm that the above correctly expresses the understanding reached between us.
Dr. A. WOLYNSKI,
Chairman of the Polish Trade Delegation,
New Delhi.
Schedules to the Agreement were extended with some modifications up to December 31, 1957 by an exchange of letters in New Delhi on
March 1, 1957. The text of the letters is given below
A copy of letter, dated the 1st March, 1957 from the Secretary to the Government of India, Ministry of Commerce and Consumer Industries,
New Delhi to H.E. Mr. J. Grudzinski, Ambassador Extraordinary and Plenipotentiary of Poland in India, New Delhi.
Reference to Article IX of the Trade Agreement between the Government of India and the Government of Polish People's Republic concluded
on the 3rd April, 1956 and to the recent discussions regarding the Schedules of the goods for export from India to the Polish People's
Republic and from Poland to India, I have the honour to confirm the understanding reached between us that the Schedules 'A' and V
attached to the Agreement shall remain in force during 1957 subject to the following changes
