Indian Treaty Series

The Government of the United States of America and the Government of India ;

RECOGNIZING the desirability of expanding trade in agricultural commodities between their two countries;

CONSIDERING an announcement by the Department of Agriculture of the Government of United States of America on February 12, 1962 relating to the exchange of raw sugar import allocations for purchases of United States agricultural commodities and a proposal relating to this announcement submitted by the Government of India through the Embassy of India in Washington dated March 9, 1962;

DESIRING to Set forth the understandings reached in conversations between representatives of their two Governments and the measures which the two Governments will take individually and collectively in furthering the expansion of trade in such commodities;

HAVE agreed as follows :

Article I

1. The Government of the United States of America will authorize the importation in the United States of America of 50,000 short tons of raw non-quota sugar from India during the period from the date of entry into force of this agreement through June 30, 1962. The Government of India assures the Government of the
United States of America that this quantity of raw sugar is available for shipment to the United States of America and will make the necessary arrangements for its delivery to continental ports of the United States of America on
or before June 30, 1962

2. The Government of India will purchase, or cause to be purchase 44,000 bales (500 pounds equivalent) Of 1 1/16 inch or longer staple length upland cotton through normal trade channels within United States of America for importation by India during period January 1, 1962 through December 31, 1962.

The 44,000 bales of cotton specified in paragraph 2 above i any increase in such quantity that may be made pursuant Article II of this Agreement shall be in addition to any cot exported to India from the United States of America under Sect 303 of Public Law 480 (barter for strategic materials), Commodity Credit Corporation's Credit sales program or ot programs involving the financing of the purchase of such commodity by the Government of the United States of America

4. The Government of India assures the Government of the United States of America that the cotton purchased ~y India pursuant to paragraph 2 above shall be over and above usual commercial imports by India from sources friendly to the United States of America (including the United States of America) of a total 350,000 bales (500 pounds equivalent) during the period July 1961 through June 30, 1962; and further assures that purchases will not result in any reduction of usual commerce imports from sources friendly to the United States of America (including the United States of America) during the period July 1962 through June 30, 1963.

5. India will not increase its exports in United States Government fiscal years 1962 and 19 * 63 of cotton of the staple lengths norm exported by India based on its four year average 1958, 1959, and 1961 exports of such cotton; and further will not exports fiscal years 1962 and 1963 any cotton of the staple length specified in paragraph 2 above.

6. The cotton imported by India pursuant to this Agreement be consumed in India as an integral part of the Government of India's economic development program under the Third Five Year Plan.

Article II

If the Government of the United States of America should authorise importation of raw non-quota sugar from India during period from the date of entry into force of this Agreement through June 30, 1962, in addition to the 50,000 short, tons of raw sugar stipulated in Article I of this agreement and any raw sugar authorized for importation prior thereto, the Government of India will purchase, or cause to be purchased, -additional cotton through normal trade channels within the United States of America for importation by India from January 1, 1962 through December 31, 1962 at the rate of 880 bales for each 1,000 short ton increase in raw sugar import authorization.

The Government of India will furnish, upon request of the Government of the United States of America, information on the progress of the program, particularly, with respect to the purchase and arrival of the cotton, the provision for the maintenance of usual commercial imports and information relating to exports of the same or like commodities.

The two Governments will, upon request of either of them consult regarding any matter relating to the application of this Agreement or to the operation of arrangements entered into pursuant to this agreement.

This Agreement shall enter into force upon signature.

IN WITNESS WHEREOF, the respective representatives, duly authorized for the purpose, have signed the present Agreement.

DONE at Washington this sixteenth day of April, 1962.

For the Government of the United States of America

Sd-
PHILIP H. TREZISE