| TRADE AGREEMENT BETWEEN INDIA AND THE CZECHOSLOVAK REPUBLIC New Delhi, 30 September 1957 The Government of India and the Government of the Czechoslovak Republic being desirous of expanding direct trade between the two countries
as much as possible on the basis of equality and mutual benefit have agreed as follows :- Article I The Government of India and the Government of the Czechoslovak Republic shall provide adequate facilities for the exports from and
imports into their respective countries of the commodities mentioned in Schedules "A" and "B" attached to the
present Agreement in accordance with and subject to the laws and regulations in force from time to time in either country. Article II The Schedules "A" and "B" referred to in Article I are without prejudice to the rights of persons or firms in
either country to enter into business transactions in respect of goods or commodities not forming part of these Schedules subject
to and in conformity with the laws and regulations in force from time to time in either country. Article III The exchange of goods and services between the two countries shall be effected in accordance with the contracts concluded between
the Czechoslovak Foreign Trade Corporations as independent legal persons or any other independent legal persons duly authorized by
the Czechoslovak Government on the one hand and the State Trading Corporation of India as also other commercial organisations or
individuals in India on the other hand. Article IV 1. Payments relating to commercial and non-commericial transactions between Czechoslovakia and India may be effected in Indian Rupees.
For the purpose of facilitating such payments the State Bank of Czechoslavakia (Statni banka ceskoslovenska) will maintain one or
more account(s) with one or more commercial bank(s) in India authorized to deal in foreign exchange. In addition, the State Bank
of Czechoslovakia, acting as agent of the Czechoslovak Government, will maintain another account with the Reserve Bank of India.
All payments to be effected in Rupees will be made through the account(s) maintained with commercial bank(s). Payments to be made
by residents of India to residents of Czechoslovakia will be effected by crediting the amounts of such payments to the above mentioned
account(s) of the Sate Bank of Czechoslovakia with the commercial bank(s) in India. Payments to be made to residents of India by
residents of Czechoslovakia will be effected by debiting the said account(s) with the commercial bank(s) in India. The account(s)
with commercial bank(s) will be replenished as and when necessary by one of the following methods : (a) by transfer of funds from
another account of the State Bank of Czechoslovakia with another commercial bank, or with the Reserve Bank of India; (b) by transfer
of funds from a Rupee account maintained by third country in India provided the three countries concerned agree; (c) by sale of Sterling
to the bank concerned. The account of the State Bank of Czechoslovakia with the Reserve Bank of India will be replenished by transfer
of funds from the Rupee account(s) maintained by the State Bank of Czechoslovakia with the commercial bank(s) in India or in accordance
with para 1(b) and 1(c) of this Article. 2. The provisions of this Agreement cover the following payments (a) Payments for the commodities imported or exported under the present
Agreement; (b) Payments connected with commercial transactions such as transport charges, sea freight due to vessels sailing under
Indian or Czechoslovakia flags, port charges, disbursements, bunkering and provision for ships, repairs of ships, storage, customs,
insurance, commission, brokerage, advertising etc.; (c) Expenses connected with fairs and exhibitions; (d) Duties and fees in respect
of patents, licences trade marks, authors'rights, courts expenses, taxes and fines, distributions of films etc.; (e) Cost of maintaining
of diplomatic, consular and commercial missions, cost of travel, wages and salaries etc.; M Transfer of funds to Rupee account maintained
by a third country in India provided the three countries concerned agree; (g) Any other payments on which agreement may be reached
between the competent authorities of both countries. 3. Any balance in the Rupee account maintained by the State Bank of Czechoslovakia with the Reserve Bank of India will be convertible
immediately on demand of the State Bank of Czechoslovakia into Sterling at the usual bank's selling rate for Sterling as fixed from
time to time by the Indian Exchange Banks' Association. Any balance outstanding in the Rupee accounts on the day of expiry of this
Agreement will be convertible into Sterling. 4. Unless otherwise provided for in the contracts concerned, the settlement of the outstanding
contracts and commitments, payments for which have not been completed within the validity of this Agreement, shall be effected in
Sterling. Article V The Contracting Parties agree to consult each other whenever necessary upon request of either of them in order to recommend measures
for expanding mutual trade or to overcome any difficulties that might arise in connection with implementation of this Agreement and
also to consider and agree upon any modifications thereof. Article VI Both Governments will inform each other of the changes in their
import and export policies, regulations and procedure as and when such changes are made. Article VII Apart from the normal business contracts between the two countries, the two Governments will, in accordance with such specific arrangements
as may be entered into in this behalf, endeavour to promote triangular re-export and other multilateral transactions as means of
widening and developing international trade. Article VIII The Government of the Czechoslovak Republic will provide all facilities that it can reasonably accord to enable Indian ships to carry
as large a proportion as possible of goods to be exchanged under this Agreement. Article IX Payments in respect of commerical contracts concluded prior to the coming into force of this Agreement shall be settled in accordance
with the original terms and conditions of those contracts. Unless otherwise approved, payments for commercial contracts concluded
after the coming into force of this Agreement shall be settled in accordance with the terms and conditions of this Agreement. Article X The Schedules "A" and "B" referred to in Article I as well as the collateral letters exchanged between the Delegations
of the two Governments, copies whereof, are annexed hereto, form an integral part of this Agreement. Article XI This Agreement shall come into effect on the 1st October 1957 and shall remain in force till the 31st December 1960. The validity
of the present Agreement will be automatically extended each time for a further period of one year unless either Government gives
notice of its intention to terminate or revise this Agreement three months beforehand. DONE AND SIGNED in duplicate, in English,
either copy being equally authentic in New Delhi, on the 30th September 1957. For the Government of India.
(Sd.) K.B. LALL, (Sd.) J. KOHOUT,
For the Government of the Czechoslovak Republic SCHEDULE 'A' GOODS FOR EXPORT FROM INDIA INTO CZECHOSLOVAKIA 1. Tea 2. Spices including pepper 3. Tobacco 4. Iron ore 5. Manganese ore 6. Cashewnuts 7. Ilmenite 8, Linseed oil 9. Castor oil 10.
Groundnut oil 11. Groundnuts hand-picked selected 12. Shellac 13. Cotton raw 14. Cotton waste 15. Mica 16. Raw goat and sheep skins
17. Animal hair 18. Preservedfruits 19. Fresh fruits 20. Raw wool 21. Ephedrine 22. Crushed bones 23. Other oils including essential
oils 24. Myrabolan and myrabolan extracts 25. Fish and blood meals 26. hydrogenated oil 27. Indian handicrafts 28. Films exposed
29. Cotton rayon and woollen textiles 30. Cotton and rayon knitted wear 31. Plastic goods 32. Sports goods 33. Carpet and coir products
34. Coffee 35. Hides and skins tanned 36. Jute yarn and manufactures 37. Linoleum 38. Leather and leather goods. 39. Jams, Chutneys
and Pickles 40. Cashew shell oil 41. Hemp 42. Tobacco manufactures, e.g., cigars and cigarettes 43. Handloom fabrics 44. Tapioca and its manufactures SCHEDULES GOODS FOR EXPORT FROM CZECHOSLOVAKIA TO INDIA 1 . Complete industrial plants. 2. Diesel engines, namely Marine type, and spare parts for diesel engines. 3. Pumps driven by diesel
engines or electricity 4. Welding machines and Transformers. 5. Hydraulic presses for workshops. 6. Diesel generating sets. 7. Sheet
glass. 8. Domestic glassware. 9. Various sorts of papers including newsprint. 10. Cellophane papers. 11. Zip fasteners. 12. Laboratory
and technical glassware. 13. Various metal goods, including tailor's and bag-makers. 14. Shoemakers' requisites, including shoe grindery.
15. Smokersrequisites. 16. Buttons. 17. Needles of all sorts. 18. Montana wax 19. Dyestuffs. 20. Saccharin. 21. Toys, namely educational.
22. Rangolite 23. Ammonium Hydrofluoride. 24. Potassium P ermanganate 25. Lithopone. 26. Ultramarine blue. 27. Glazes, frits, colours
and enamels. 28. Laboratory chemicals. 29. Other chemical products. 30. Plushes. 31. Felts 32. Woollen and cotton knitted goods.
33. Harberdashery, millinery, drapery and apparel. 34. Caps and fezes. 35. Machine tools and tools for metal working and spare parts
thereof. 36. Agricultural tractors with accessories and spare parts. 37. Agricultural implements and spare parts. 38. Textile machines
and spare parts. 39. Graphic machinery. 40. Mechanical and Hydraulic paper cutting machines. 41. Cigarette producing machinery. 42.
Tobacco machinery. 43. Electrical insulators. 44. Component parts of wireless reception instruments and apparatus. 45. Electricity
meters. 46. Telephone exchange 47. Medical and dental apparatus and instruments. 48. Sporting and hunting arms and ammunition 49.
Typewriters, Calculating machines and spare parts. 50. Offset printing machines, rotaprint and spare parts. 51. Statistic machines.
52. Domestic sewing machines and parts. 53. Industrial sewing machines and parts 54. Photographic and motion pictures, cameras and
appliances. 55. Microscopes and optical lenses. 56. Spectacle frames and sun glasses. 57. Water meters. 58. Geodetic instruments.
59. Pneumatictools. 60. Bearings. 61. Precision tools. 62. Spare parts for motor cars, 63. Motor cycles and spare parts. 64. Bicycles
and spare parts. 65. Laundry machines. 66. Refrigerators. 67. Motor car equipment 68. Domestic hardware. 69. Food machinary. 70.
Electric kitchen appliances. 71. Industrial and Street lighting fittings. 72. Vacuum flasks. 73. Cast Iron enamelled tubs. 74. Industrial
leather belting. 75. Industrial rubber belting 76. Fibre boards, hardboards 77. Musical instruments. 78. Textile instruments. 79.
Pencils graphites. 80. Stationery and Office equipments. 81. Bottled beer. 82. Canned fruits and vegetables. 83. Thermal products.
84. Prints, engravings and pictures, iiwluding photographs and postcards, books and playing cards. 85. Grarnophone needles and component
parts. 86. Household china and porcelain. 87. Sanitary earthenware. 88. Asbestos cement goods. 89. Abrasive materials. 90. Wall tiles.
91. Iron and steel wire netting. 92. Panel pins and conunon wire nails. 93. Ship chains, dog and fox chains. 94. Glass jewellery,
glass chatons and beads (pearls). 95. Condensed milk. 96.- Hops and Malts. 97. Dried milk products. 98. Plastics and artificial leather.
99. Art silk goods. 100. Road building machinery including rollers and excavators. 101. Building machinery. 102. Narrow gauge diesel
locomotives. 103. Stone-grinding machinery. 104. Screw presses. 105. Battery lorries. 106. Films exposed. LETTERS I New Delhi, the 30th September 1957 Dear Mr. LALL, During the discussions that preceded today's conclusion of the Indo-Czechoslovak Trade Agreement, the Czechoslovak Government's desire
to enter into a bilateral agreement with India on the basis of most-favoured-nation treatment regarding customs tariffs was considered.
It was pointed out by the Indian delegation that there was no need to discuss this question immediately as the most favoured-nation
treatment comes within the meaning of the arrangements which are now in force. It was, therefore, mutually agreed that in the event
of any change in the said arrangement, the existing relationship between India and Czechoslovakia would continue unchanged for a
period of three months from such date so that either country may, during that period, initiate negotiations for an arrangement for
future relationship between the two countries. The basis for these negotiations may be the draft of "Trade Agreeement between
Czechoslovakia and India" submitted by the Czechsolovakia delegation during the discussions and which formed an integral part
of the Indo-Czechoslovakia Trade Agreement of the 17th November 1953. I should be grateful to hqve your confirmation to the above
understanding. Yours sincerely, (Sd.) ING. J. KOHOUT,
Deputy Minister of Foreign Trade,
Government of Czechoslovakia. K.B. LALL, Esquire, I.C.S.,
Joint Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi. II GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY Dear Mr. KOHOUT, New Delhi, the 30th September 1957 I write to acknowledge the 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. Your sincerely, (Sd.) K.B. IALL, H.E. MR. J. KOHOUT,
Deputy Minsiter of Foreign Trade, Government of Czechoslovakia, New Delhi. New Delhi, the 30th September 1957 Dear Mr. LALL, In the course of our discussions concerning the Trade Agreement between our two countries, we have also discussed the question of
the Trade Representation of Czechoslovakia in India, which had been established on the strength of the Agreement contained in a letter
forming an integral part of the Indo-Czechoslovak Trade Agreement dated the 17th November 1953 and successive letters dated the 29th
September 1954 and the 20th January 1956, exchanged between the Embassy of the Czechoslovak Republic in India and the Ministry of
Commerce and Industry, Government of India. During our discussions, it had been agreed that the above arrangements have been found
useful and therefore the validity of these documents shall be prolonged for such time as the Trade Agreement to which this letter
forms an integral part shall be valid. The following are the documents I am referring to :- (1) Letter dated the 17th November 1953, concerning agreement pertaining to the establishment of the Trade Representation of the Czechoslovak
Republic in India. (2) Letter dated the 29th September 1954 exchanged between the Czechoslovak Embassy in India and the Ministry of Commerce and Industry,
Government of India. (3) Letter dated the 20th January 1956 exchanged between the Czechoslovak Embassy in India and the Ministry of Commerce and Industry,
Government of India. I shall be glad if you will kindly confirm that the above sets out correctly the understanding reached between
us. Yours sincerely (Sd.) ING. J. KOHOUT, Deputy Minister of Foreign Trade, Government of Czechoslovakia. K.B. LALL, Esquire, I.C.S., Joint Secretary to the Government of India, Ministry of Commerce and Industry, New Delhi, IV GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY New Delhi, the 30th September, 1957 Dear Mr. KOHOUT, I write to acknowledge the 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.) K.B. LALL. H.E. MR. J. KOHOUT, Deputy Minister of Foreign Trade, Government of Czechoslovakia, New Delhi. PROTOCOL TO THE TRADE AGREEMENT (1959) (Prague 30 May 1959) The Government of India and the Government of the Czechoslovak Republic, in accordance with the provisions of Article V of the Trade
Agreement between the Government of India and the Government of the Czechoslovak Republic dated 30 September 1957, being animated
by the desire to promote further development of trade between the two countries on a basis of equality and mutual benefit, have as
a result of the discussions held in Praha between May, 28, 1959 and May, 30, 1959 agreed as follows : 1. In place of the provisions of the existing Article IV of the Agreement, the following has been agreed : 1. Payments relating to commercial and non-commercial transactions between India and Czechoslovakia as stipulated in paragraph 4,
will be effected in non-convertible Indian rupees. 2. For the purpose of facilitating such payments (a) the State Bank of Czechoslovakia/Statni banka ceskoslovenska, acting as agent
of the Czechoslovak Government, will maintain a Central Account with the Reserve Bank of India and one or more account(s) with one
or more commercial bank(s) in India authorised to deal in foreign exchange; (b) the Central Account will be used for depositing rupee
balances and for replenishing the accounts with commercial bank(s); (c) the accounts with commercial bank(s) will be used for all
other operations under this Agreement. 3. (a) the Central Account will be replenished by transfers of funds from the accounts with commercial bank(s) and by receipts on
account of technical credit; (b) the accounts with commercial bank(s) will be replenished by transfers of funds from other similar
accounts and from the Central Accounts. 4. The provisions of the present Agreement cover the following payments (a) payments for goods exported or imported in accordance with this Agreement: (b) payments connected with commercial transactions
such as transport charges, air freight, sea freight, port charges, disbursements, bunkering and provision for ships, repairs of ships,
storage, customs insurance commissions, brokerage, advertising etc.; (c) payments for technical assistance; (d) payments of expenses
connected with tours of a commer- cial nature; (e) payments of expenses connected with fairs exhibitions; (f) payments of duties
and fees in respect of patents, licences trade-marks, authors' right, court expenses, taxes and fines, reinsurance, distribution
of films, etc; (g) cost of maintaining diplomatic, consular and commercial mission, cost of travel, wages and salaries, etc.; (h)
periodical settlements of the postal, telegraph and telephone services and public transport enterprises; (i) any other payments on
which agreement may be reached between the competent authorities of both countries. Payments permitted under the Indian Exchange
Control Laws to be made by residents of India to residents of Czechoslovakia will be effected by crediting the amount of such payments
to the above-mentioned account(s) of the State Bank of Czechoslovakia with Indian commercial banks. Payments permitted under the
Czechoslovakia Exchange Control Laws to be made by residents of Czechoslovakia to residents of India will be effected by debiting
the amount of such payments to the said account(s) with Indian commercial banks. 6. The details in regard to the procedure for the operation of the Central Account will be mutually agreed upon, at the earliest practicable
date but not later than 30th June, 1959, between the Reserve Bank of India and the State Bank of Czechoslovakia. 7. Any balance in the rupee accounts of the State Bank of Czechoslovakia or any debt of the State Bank of Czechoslovakia on acccount
of technical credit will upon expiry of this Agreement, be used during the ensuing one year for the purchase of Czechoslovak or Indian
goods. If after the lapse of the said period of one year, the balance or debt has not been settled, the debtor party shall be obliged
to settle it immediately at the request of the creditor party in Sterling, unless otherwise agreed upon between the two Parties.
8. Any Rupees that may accrue on account of payment in respect of contracts entered into under this Agreement and paid after the expiry
of this Agreement and one year thereafter, will be settled in Sterling, unless otherwise agreed upon between the two Parties. II. This Protocol shall be deemed to be an integral part of the Trade Agreement between the Government of India and the Government
of Czechoslovak Republic of 30th September, 1957, with effect from Ist July, 1959. DONE AND SIGNED in duplicate in English, either
copy being authentic in Praha on this 30th day of May, 1959. For the Government of India.
(Sd.) D. SANDILYA, (Sd.) A. HLOCH,
For the Government of the Czechoslovak Republic.
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