| TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF HUNGARY New Delhi, 25 June 1960 The Government of India and the Government of the Hungarian People's Republic animated by the desire to develop economic and trade
relations between the two countries on a mutually advantageous basis and to increase the volume of trade between them to as high
a level as possible, have agreed upon the following Article I 1. Both Governments will in every possible way develop and strengthen the economic and trade relations between the two countries on
the principles of equality and mutual benefit. They will study and with the utmost good-will take decisions on the suggestions which
either of them would like to present for the consideration of the other, with the purpose of achieving closer economic relations.
2. For the goods imported and exported from one country to the other, both Governments endeavour to grant all facilities allowed by
the respective laws, rules and regulations. During the period of validity of this Agreement, the total value of imports will be equal
to the total value of exports effected by either country; however, for this purpose payments of a non-commercial nature will also
be included. Further, for this purpose, and for periodic reviews, imports and exports whether on deferred payment terms or on cash
basis, relating to the contracts concluded and to be concluded on the basis of this and earlier Indo-Hungarian Trade Agreement as
well as payments of a non-commercial nature will be taken into account as and when payments are made. Article II (a) Both the Parties shall grant each other full most- favoured-nation treatment in respect of Customs duties and charges on any account imposed on imports or exports or in respect of methods of levying such duties and charges and with respect to rules, formalities
and changes in connection with Customs clearing operations: (b) Further, the two Parties will grant each other, in respect of the issuance of import and export licences, treatment no less favourable
than that granted to any other country. (c) Any advantage, favour, privilege or immunity granted by either of the Contracting Parties to any product originating in the territory
of a third country or destined for its territory, shall be granted immediately and unconditionally to the like product originating
in the territory of either of the Contracting Parties or destined to be imported into its territory. (d) The above provisions shall not, however, apply to the grant, or continuance of any (i) advantages accorded by either Party to contiguous countries for the purpose of facilitating frontier traffic; (ii) preferences, or advantages accorded by either Party to any country, as existing on the 17th June, 1954 or in replacement of such
preferences, or advantages that existed prior to the 15th August, 1947; (iii) advantages resulting from any agreement for the establishment of any customs union or free tariff area to which the Government
of Hungary or India may become a party. Article III The export of goods from Hungary to India and from India to Hungary during the period of validity of the present Agreement will be
carried out in accordance with the attached Schedules 'A' and `B' the details of which will be agreed upon between the two Governments
for every calendar year. The Schedules 'A' and S' can be extended, altered, or renewed by letters exchanged between the two Parties at the end of each calendar
year. Article IV The import and export of the goods stipulated in Article III, will be carried out in accordance with the export, import
and foreign exchange regulations in force in either country and on the basis of contracts to be concluded between the Hungarian Enterprises
on the one side and the Indian physical and juridical parties, including Indian State-owned Organisations, on the other. Article V The provisions of the present Agreement do not affect the rights of the Indian and the rights of the Hungarian physical and juridical
parties, subject to the import, export and foreign exchange regulations in force in both the countries, of concluding commercial
transactions concerning the import or export of goods not included in Schedules 'A' and B Article VI Both Governments will render all possible assistance for the export and import of the goods mentioned in the Schedules Aand 'B' as
well as for the goods to be exported and imported under the transactions referred to in Article V. Article VII 1. All payments of a commercial and non-commercial nature between physical and juridical persons residing in India and physical and
juridical persons residing in Hungary as well as any other payments on which agreement will be reached between the Reserve Bank of
India and the National Bank of Hungary will be effected in non-convertible Indian Rupees. 2. For the purpose of effecting the aforementioned payments (a) The National Bank of Hungary will continue to maintain a Central Account with the Reserve Bank of India, while the National Bank
of Hungary and/or the Hungarian Foreign Trade Bank Limited will maintain one or more current 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) while
the accounts with the commercial bank(s) will be used for all other operations. 3. (a) The Central Account will be replenished by transfer 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 transfer of funds from other similar accounts and from the Central
Account. (c) The Central Account mentioned in (2) above will be operated upon by the National Bank of Hungary while the accounts with the commercial
bank(s) will be operated upon by the National Bank of Hungary and/or the Hungarian Foreign Trade Bank Limited, as the case may be.
4. (a) Payments permitted under the Hungarian Exchange Control Laws to be made by the residents of Hungary to the residents of India
will be effected by debiting the amount of such payments to the said accounts with Indian commercial bank(s). (b) Payments permitted under the Indian Exchange Control Laws to be made by the residents of India to the residents of Hungary will
be effected by crediting the amount of such payment to the above mentioned accounts with Indian commercial bank(s). 5. The details in regard to the procedure for the operation of the Central Account will be mutually agreed upon between the Reserve
Bank of India and the National Bank of Hungary at the earliest practicable date. 6. Any balances in the Rupee Accounts of the National Bank of Hungary or any debt of the National Bank of Hungary in connection with
the grant of technical credit will, upon expiry of this Agreement, be used during the ensuing 12 months for the purpose of Indian
or Hungarian goods, as the case may be. After the expiry of this period of 12 months, any balances outstanding will be settled in
such a way as may be agreed upon between the two Parties. 7. Payments arising from contract concluded during the validity and falling due after the expiry of this Agreement shall be effected
in Indian rupees, which will be utilised for the purchase of Indian or Hungarian goods as the case may be. Article VIII Both signatory countries agree to utilize ships of the respective countries on basis of competitive freight rates and conditions to
the maximum possible extent in the transport of the goods that may be exported or imported under the present Agreement. Article IX In order to facilitate the Implementation of this Agreement, the two Contracting Parties agree to consult each other at the request
of either Party in as short a time as possible, but not later than three months from the date of the receipt of request, in respect
of matters connected with trade and payments between the two countriesArticle IX In order to facilitate the Implementation of this Agreement, the two Contracting Parties agree to consult each other at the request
of either Party in as short a time as possible, but not later than three months from the date of the receipt of request, in respect
of matters connected with trade and payments between the two countriesArticle IX In order to facilitate the Implementation of this Agreement, the two Contracting Parties agree to consult each other at the request
of either Party in as short a time as possible, but not later than three months from the date of the receipt of request, in respect
of matters connected with trade and payments between the two countries Article XI The legal persons of the Hungarian People's Republic and the national and legal persons of India may agree that in case of legal disputes
arising from contracts concluded in commercial or other economic matters shall be referred to arbitration. The arbitration agreement
must be made out in writing. Such an agreement shall bar the jurisdiction of the courts of the Contracting Parties. The Contracting Parties undertake to enforce in their own territory the award of the courts of arbitration referred to in first paragraph
of the present Article irrespective of the fact whether the court of arbitration has brought its award in the territory of either
of the Contracting Parties or in a third country. Such awards shall be enforceable only in accordance with the laws in force in the
territory of each Contracting Parties. Article XII The two Governments will endeavour to establish and promote close cooperation in the fields of science and technology between the
two countries. Article XIII The present Agreement will come into force with effect from Ist July, 1960, and shall remain in force for a period of 31/2 years.
DONE in New Delhi on Saturday, the 25th June, 1960, in two originals in the English language, both texts being equally authentic.
Sd./- K.R.F. KHILNANI,
On behalf of the Government India. Joint Secretary to the Goverment of India and and Leader of the Indian Delegation. Sd/- J. Boczoni,
On the behalf of the Goverment of Hungarian Peoples Republic. Deputy minister of foreign Trade ,
Goverment of Hungary and Leader of the Hungarian Delegation. SCHEDULE A LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM HUNGARY TO INDIA 1. Hydro Power Stations. 2. Thermal Power Stations. 3. Complete Flour Mills 18/20 tons capacity/day. 4. Complete Flour Mills 30 tons/day. 5. Different types of aggregates and Ammonia Compressors and equipments for lee Factories and Refrigerating Plants. 6. Food Canning Factory equipments. 7. Tube Mill and Push Benches. 8. ACSR Conductors manufacturing Plant. 9. Morphine Alcaloid manufacturing Plant. 10. Oxygen Gas manufacturing Plant. 11. Semi-automatic Hollow Glass factory. 12. Fully-automatic Hollow Glass factory. 13. Glass Tube factory- 14. Sheet Glass factory. 15. Tempered Safety Glass factory. 16. Splinter-proof Safety Glass factory. fendants at the Courts of Justice of the other Party. 17. Glass Insulating material manufacturing plant. 18. Ampule manufacturing plant. 19. Plant for manufacture ofpre-fabricated and pre-stressed concrete Railway Sleepers. 20. Electrode manufacturing plant. 21. Hemp, Silver Plate Panel Board/manufacturing Plant. 22. Blasting Cap manufacturing Plant (for mines). 23. Brick manufacturing plant (easily settled type). 24. Injection needles and Syringes manufacturing plant. 25. Chip-board manufacturing plant. 26. Complete vacuum technical plant and machinery for manufacturing normal incandescent lamps and special lamps and components, i.e.,
film studio lamps, projector lamps, mercury vapour lamps, fluorescent tubes and accessories, photo-electric tubes and accessories.
27, Different kinds of plants for the Small Scale Industry, i.e., Spring Washers manufacturing plant, Industrial metal brushes manufacturing
plant, Bakelite electrical and utility goods manufacturing plant, Wire net and furniture spring manufacturing plant, wood shoe nails
manufacturing plant, Hard-plating and polishing shops, wooden cases and boxes manufacturing plants. 28. Teleconummicating equipments such as: Mobile Radio Transmitters-Receivers system FM power output from 1 to 10 W for transmission
distance of 5 to 50 KWs. Broadcasting Transmitters system FM with 5, 15, 50, and 150 KW power output for medium and short waves.
Broadcasting Transmitters'system FM with power output from 0.25 to 3 KW with high frequency range. Microwave radio links type PM
24-28, providing 22 radio-telephone channels with pulse-phase regulation. 29. Stations for Irrigation and Drainage. 30. Different sizes of Water Turbines (Mignon turbines) partly in collaboration. 31. Diesel Hydraulic Locomotives (400-450 HP) with spare parts. 32. Diesel Rail Cars and Trains. 33. Sleeping and Dining Cars with Air conditioners. 34. Various types of Mine Hoists (Winders). 35. Machinery and equipment for irrines including mine telephone and mine signalling equipments. 36. Communicating machines. 37. Cranes and various equipments for Ports. 38. Travelling Crabs (licences, components and spare parts to be supplied on the basis of collaboration agreements). 39. Various Railway, Industrial and other Balances, Weigh Bridges. 40. Geophysical Researching and Drilling equipments. 41. Aerial Ropeways and Transport machinery. 42. Electric Furnaces. 43. Foundry equipments. 44. 100/25, 150 tons Floating cranes. 45. Tugboats and Cargo ships. 46. Complete Units for the Building Industry, lime kilirs. 47. Apparatuses for the Chemical Industry. 48. Machinery for the Building Industry, 49. Acid-proof enamelled equipments and machinery for the local production of these equipments. 50. MachineTools. 51. Tractors and spare parts. 52. Wire Drawing and Cable manufacturing machines. 53. Diesel Engines and Generating Sets. 54. Machines for Plastic Industry. 55. Water and Irrigation Pumps. 56. Compressors (stationary and mobile), Diesel and Electrically driven. 57. Mining Pumps. 58. Gas Generating Equipments. 59. Grain Slicing Machines system Rajkai. 60. Machinery for Meat industry. 61. Electro-statical Dye spraying apparatus. 62. Cheese manufacturing units (Cheese mixing Tubs). 63. ACSR Cables and Conductors. 64. Transmission line fittings and accessories, high tension insulators. 65. Electric Motors, Low Voltage Switchgears and Are Welding Sets. 66. High Voltage Switchgears and apparatuses, Metal clad Switchgear equipments, Porcelain Insulators and Lightning Arrestors. 67. Film Projectors and other Kino-technical equipments. 68. Radio and Television Sets and spare parts, Television Studio equipments. 69. Optical Lenses and other precision goods. 70. Electricity supply Meters and components, also in the framework ofcollaboration. 71. X-Ray Apparatus for Medical and Industrial Purposes. 72. Radio Receiving and Transmitting Valves. 73. Mercury Vapour Lamps, Film studio lamps, Projector lamps, photo-electric tubes and accessories. 74. Geodetic and Optical Instruments and Spare parts and/ or components in the framework of collaboration. 75. Electric and Electronic Instruments and spare parts and /or components in the framework of collaboration. 76. Instruments and Apparatuses for Laboratories. 77. Medical and Surgical Instruments, Apparatuses and Hospital equipments. 78. Material Testing Instruments for Textile and Foundry Industries. 79. Meteorological Instruments. 80. Wood-working machines. 81. Tools such as Pneumatic, Hand and Garage Tools, Gas Welding Sets. 82. Hardware (Card-clothing, Screws, Shoe-tacks, Nails). 83. Electric Firing and Blasting accessories and Firing machines for the Mining Industry. 84. Hunting Guns and Bullets. 85. Alarm Clocks. 86. Bicycle spare parts. 87. Spare parts for Motor Cycles in the framework of collaboration. 88. Dumpers and spare parts. 89. Garage equipments (Diesel and Electric Testing Benches). 90. Gas Cylinders. 91. Steel Products, i.e., Steel Bars and Sections, Alloy Steel. 92. Heavy and Medium Plates. 931. Ball Bearings. 94. Seamless Steel Tubes and Fittings. 95. Hard Metal Tips and Drawing Dies. 96. Pharmaceutical Raw materials and Fine Chemicals. 97. Pharmaceutical Specialities in Bulk, Degrenol. 98. Degrenol. 99. Medicinal Herbs. 100. Sera and Vaccines. 101. Essential Oils. 102. Laboratory Reagents. 103. Dyestuffs, Auxiliary materials for the Textile, Paint and Rubber Industries. 104. Rubber goods, such as Conveyor Belting, Technical Rubber goods. 105. Sanitary Rubber goods, i.e., Surgical Gloves, Contraceptives. 106. Industrial Chemicals, etc., Industrial Explosives, etc. 107. Photographic materials. 108. Oils and Mining products, i.e., Lubricating Oils, Basic refractory bricks and electrocast glass tank blocks, Aluminium Fluoride,
Bitumen, etc. 109. Artificial Silk goods. 110. Furnishings. 111. Oil Cloth. 112. Cotton Yarn. 113. Rayon Yarn. 114. Miscellaneous goods such as Feature Films, Documentaries, Books and Periodicals, Didactical materials, Camping Beds, Toys, Playing
cards, Air-Guns, Dolls, Brushware, Eloxirted Aluminium Trays, Scissors and Manicure Sets, Educational Appliances, Records, etc. SCHEDULES LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM INDIA TO THE HUNGARIAN PEOPLE'S REPUBLIC 1. Tea. 2. Coffee. 3. Tobacco. 4. Tobacco manufactures, i.e., cigars and cigarettes. 5. Spices. 6. Pepper. 7. Cashew kernels. 8. Cashew nuts and cashew shell oil. 9. Opium. 10. Jams, chutnies; and pickles. 11. Fruit squashes and sauces. 12. Canned fruit and meat products. 13. Linseed oil. 14. Tapioca and its products. 15. Castor oil. 16. Hydrogenated oils including vanaspati. 17. Essential oils (Sandal wood oil and lemongrass oil). 18. Groundmit oil. 19. Cotton seed oil. 20. Iron ore. 21. Deoiled cakes. 22. Manganeseore. 23. Kyanite. 24. Ilmenite. 25. Mica. 26. Semi-processed and processed skins, hides and finished leather. 27. Sheep castings. 28. Tanned hides and skins. 29. Fish meal. 30. Fish and prawn. 31, Myrobalan and myrobalan extracts. 32. Tragacanth (gum adragant). 33. Bristles. 34. Fibres for brushes and brooms. 35. Animal hair. 36. Hemp other than manila, sisal and aloe. 37. Flax linen. 38. Cotton waste. 39. Silk and artificial silk waste. 40. Wool waste. 41. Woollen carpets and rugs. | 