New Delhi, 21 November 1962 LETTERS
THE AMERICAN AMBASSADOR TO THE MINISTER OF EXTERNAL AFFAIRS OF INDIA
No. 287
New Delhi November 13, 1962
Excellency,
I have the honor to refer to the recent conversations between the representatives of our two Governments relating to the conclusion
of appropriate arrangements with respect to the men and women of the United States of America who volunteer to serve in the Peace
Corps, and who, at the request of your Government, would live and work in India for such technical projects and programs and for
such periods of time as may be mutually agreed upon between the two Governments and to propose the following understandings.
(1) The Government of India will accord equitable treatment to Peace Corps Volunteers, both as to their person and their property,
and afford them, in case of need, adequate aid and protection. The Government of India agrees that the payments received by Volunteers
to defray their living expenses and the separation allotment payable to the Peace Corps Volunteers, paid directly or indirectly by
the Government of the United States, shall be exempt from Indian income tax. Also exempt from Indian income tax will be any other
income of Peace Corps Volunteers in respect of which such individuals are required to pay any income or social security tax to the
Government of the United States. In addition, the Government of India will grant to the Peace Corps Volunteers exemption from import
regulations and from customs duties, taxes and related charges other than charges for storage, cartage and similar services, in respect
of personal baggage, used personal and household effects and Rs. 1,500 of new items of personal and household effects.
(2) The Government of India will accept a Peace Corps Representative a Deputy and such other personnel as may be deemed necessary
by the Government of the United States and the Government of India to discharge the functions for the Government of the United States
with respect to Peace Corps programs and projects. The Government of India shall extend to the Peace Corps Representative, Deputy
and to other personnel if such are employees of the United States Government, the same treatment with respect to payment of income
tax and customs duties or charges as are accorded to personnel of comparable rank or grade of the Embassy.
(3) The Government of India will exempt funds, equipments, materials and supplies, furnished or financed by the Government of the
United States of America and used in connection with Peace Corps programs and projects from taxes, investment or deposit requirements,
currency controls, customs duties or other charges. The disposal of equipments, materials and supplies thus imported will be governed
by rules as may be prescribed by the Government of India.
(4) Appropriate representatives of the Government of the United States of America and of the Government of India may make from time
to time such arrangements with respect to Peace Corps programs in India as appear necessary of desirable for purposes of implementing
this agreement.
Finally, I have the honor to propose that if these understandings are acceptable to the Government of India, this note and Your Excellency's
reply note concurring therein shall constitute an agreement between our two Governments which shall be deemed to have become effective
on December 20, 1961, that being the date of arrival of the first group of Volunteers in India, and which shall remain in force until
90 days after the date of written notification from either Government to the other of intention to terminate it.
Accept, Excellency, the renewed assurances of my highest consideration.
Sdl
JOHN KENNETH GALBRAITH
His Excellency
JAWAHARLAL NEHRU,
Minister of External Affairs, New Delhi.
The Commonwealth Secretary, Ministry of External Affairs of India,
to the American Ambassador
MINISTRY OF EXTERNAL AFFAIRS
NEW DELHI
COMMONWEALTH SECRETARY
No. F. 118 (38) WII/62
Dated 21st November, 1962
Your Excellency,
I have the honour to refer to your Note No. 287 of the 13th November, 1962, addressed to the Prime Minister, which reads as follows
"I have the honor to refer to the recent conversations between the representatives of our two Governments relating to the conclusion
of appropriate arrangements, with respect to the men and women of the United States of America who volunteer to serve in the Peace
Corps, and who, at the request of your Government, would live and work in India for such technical projects and programs and for
such periods of time as may be mutually agreed upon between the two Governments and to propose the following understandings
(1) The Government of India will accord equitable treatment to Peace Corps Volunteers, both as to their person and their property,
and afford them, in case of need, adequate aid and protection. The Government of India agrees that the payments received by Volunteers
to defray their living expenses and the separation allotment payable to the Peace Corps Volunteers, paid directly or indirectly by
the Government of the United States, shall be exempt from Indian income tax. Also exempt from Indian income tax will be any other
income of Peace Corps Volunteers in respect of which such individuals are required to pay any income or social security tax to the
Government of the United States. In addition, the Government of India will grant to the Peace Corps Volunteers exemption from import
regulations and from customs duties, taxes and related charges other than charges for storage, cartage and similar services, in respect
of personal baggage, used personal and household, effects and Rs. 1,500 of new items of personal and household effects.
(2) The Government of India will accept a Peace Corps Representative, a Deputy and such other personnel as may be deemed necessary
by the Government of the United States and the Government of India to discharge the functions for the Government of the United States
with respect to Peace Corps Programs and Projects. The Government of India shall extend to the Peace Corps Representative, Deputy
and to other personnel if such are employees of the United States Government, the same treatment with respect to payment of income
tax and customs duties or charges as are accorded to personnel of comparable rank or grade of the Embassy.
(3) The Government of India will exempt funds, equipments, materials and supplies, furnished or financed by the Government of the
United States of America and used in connection with Peace Crops programs and projects from taxes, investment or deposit requirements,
currency controls, customs duties or other charges. The disposal of equipments, materials and supplies thus imported will be governed
by rules as may be prescribed by the Government of India.
(4) Appropriate representatives of the Government of the United States of America and of the Government of India may make from time
to time such arrangements with respect to Peace Corps programs in India as appear necessary or desirable for purposes of implementing
this agreement.
Finally, I have the honor to propose that if these understandings are acceptable to the Government of India, this note and Your Excellency's
reply note concurring therein shall constitute an agreement between our two Governments which shall be deemed to have become effective
on December 20,1961, that being the date of arrival of the first group of Volunteers in India, and which shall remain in force until
90 days after the date of written notification from either Government to the other of intention to terminate it.
Accept, Excellency, the renewed assurances of my highest consideration."
On behalf of the Government of India, I have the honour to inform you that the Government of India concurs in the proposals contained
in your Note No. 287. Further, I confirm that your note under reference and this reply shall constitute an Agreement between our
two Governments which shall be deemed to have become effective on December 20, 1961 and which shall remain in force until 90 days
after the date of written notification from either Government to the other of intention to terminate it.
Accept, Excellency, the renewed assurances of my highest consideration.
Sdl-
Y. D. GUNDEVIA
His Excellency
Mr. JOHN KENNETH GALBRAITH,
Ambassador of the United States of America in India, New Delhi.
