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EXCHANGE OF LETTERS CONSTITUTING AN AGREEMENT BETWEEN THE GOVERNMENT [1963] INTSer 20

EXCHANGE OF LETTERS CONSTITUTING AN AGREEMENT
BETWEEN THE GOVERNMENT
OF INDIA AND THE GOVERNMENT
OF THE GERMAN DEMOCRATIC REPUBLIC REGARDING ESTABLISHMENT OF A JOINT REGULAR SHIPPING LINE

New Delhi, 23 November 1963

LETTERS

No. 38-MD (33)/63

MINISTRY OF TRANSPORT
(TRANSPORT WING)

New Delhi
23rd November, 1963

Dear Mr. BOETTGER,

As a result of the recent negotiations which took place in New Delhi between Dr. Nagendra Singh, Director General of Shipping, Ministry of Transport, Government of India, and Mr. K. Boettger, Head of the Trade Representation of the German Democratic Republic in India representing the Ministry of Transport of the German Democratic Republic, the following conclusions were reached :

1. The Competent Authorities of both parties shall organise a joint regular shipping line between the sea ports of the two countries. The Director General of shipping of India and the Head of the Main Department of Shipping, Ministry of Transport of the German Democratic Republic, shall constitute the respective Competent Authorities of the two parties concerned for the aforesaid purpose. It will be for the Competent Authority of each party to nominate the shipping company or companies for operating the service by supplying the tonnage required for the purpose.

2. The ships flying the flag of the German Democratic Republic or of India as well as their crews and their cargoes shall be awarded most-favoured-nation treatment while entering, leaving, and staying in, the ports of the other party. Most favoured-nation treatment shall be particularly applicable to

(a) all kinds of dues and charges levied in the name or for account of the State or other organisations;

(b) the putting-in, loading and discharging of ships in the ports and roads;

(c) the use of piloting services, canals, locks, bridges, signals and lightings of the fairway;

(d) the use of hoistingeranes, scales, store-houses, shipyards, dry-docks and other repair ships;

(e) the supply of fuel, lubricants, water and provisions;

(0 the application of rules and formalities including sanitary and quarantine formalities.

The provisions of this paragraph shall not be applicable to the vessels engaged in the coasting trade (cabotage) or in inland navigation or in fisheries under their respective jurisdictions.

3. All documents and certificates issued by the respective Authorities of the two countries to ships borne on their registers shall be recognised by the appropriate authorities of either country.

Accordingly the calculation of the port charges shall be based on the figures given in the tonnage measurement documents.

4. (i) The cargoes assigned to the joint regular shipping line between the two countries shall be carried on the principle of share and share alike, irrespective of the terms of sale, both in respect of general cargo and bulk cargo with a view to maintaining equality between the two parties in respect of freight earnings.

(ii) If the shipping company or companies of one country participating in the joint regular shipping line is temporarily not in a position to provide sufficient tonnage, the shipping company or companies of the other country participating in the joint regular shipping line may carry the cargo in question.

(iii) No foreign flag ship will be time chartered for this joint regular shipping line by either party without the prior consent of the Competent Authorities of both the parties and whenever such a third flag vessel is so permitted, questions relating to its employment including the payment of freight will be decided by the Competent Authorities of both the parties.

5. The Competent Authorities of the two parties entrusted with the implementation of this Arrangement shall take, all appropriate measures to ensure highest possible economy and full utilisation of the ships engaged, in the service between the German Democratic Republic and India.

6. To ensure the continued maintenance of this Arrangement and to discuss all questions of mutual sea transport, the Competent Authorities of both the parties with representatives of their shipping company or companies shall meet periodically and at least once in a year or oftener either in the German Democratic Republic or in India whenever requested by either party.

7. The Competent Authorities of the two parties shall be responsible for the opening and running of this joint
regular shipping service in accordance with the arrangements made herein.

(ii) The Competent Authorities shall designate the shipping company or companies who will draw up the time table, work out uniform terms of transport and consider other questions pertaining to the operation of this service subject to the approval of the Competent Authorities.

(iii) All questions relating to the fixation of freight rates will be the responsibility of the Competent Authorities.

(iv) The Competent Authorities shall jointly make arrangements for the clearing, handling and taking care of the ships of the parties in the sea ports of each country.

8. The ships engaged in the regular service may also call, apart from the ports of the German Democratic Republic and the ports of India, at the ports of other countries. This shall be taken into consideration in drawing up the time tables.

9. Each shipping company participating in the regular service shall bear for itself the responsibility and the risk for both the financial and other claims resulting from the operation of their ships and the transportation of goods.

10. When a ship of one party runs aground or is wrecked at the shores of the other country, the persons on board the ship and the cargo shall receive the necessary help and the same favours and privileges as the laws and regulations of the other country envisage for such cases in respect of their own ships, persons and cargo on board.

11 The settlement of sea freights relating to the exchange of goods between the German Democratic Republic and India, SIB well as the charges for passenger transport on ships of the German Democratic Republic and India and of all costs for the entering and leaving, staying, loading and discharging, and handling of ships in the ports as well as for supplies and services in accordance with paragraph 2 of this Arrangement shall be carried out on the basis of Trade and Payments Arrangements made under the Exchange of Letters dated 18th December, 1959, between the two countries or under such arrangements which may be in force between the German Democratic Republic and India on the relevant date.

12. To promote shipping between the two countries, the Trade Representation of the German Democratic Republic in India shall be assisted by a shipping Adviser who shall discharge his functions in accordance with the law of India.

13. This Arrangement shall take effect from today and will be in force for a period of 2 years and it shall continue in force unless it is denounced in writing by either Contracting Party at six months' notice.

I shall be glad if you will confirm that the above sets out correctly the understanding reached between us.

Yours sincerely,

Sdl-

NAGENDRA SINGH
Director General of Shipping
Ministry of Transport,
Government of India.

Mr. KURT BOETTGER,
Head of Trade Representation of the German Democratic Republic in India,
12/39 Kautalaya Marg, Chanakaya Puri, New Delhi.

REGIERUNG DER DEUTSCH DEMOKRAT REPUBLIK
MINISTERIUM FUR VERKEHRSWEREN New Delhi,

November 23, 1963

Dear Dr. NAGENDRA SINGH,

I acknowledge the receipt of your letter No. 38-MD(33)/63 of today's date which reads as follows

"As a result of the recent negotiations which took place in New Delhi between Dr. Nagendra Singh, Director General of Shipping, Ministry of Transport, Government of India, and Mr. K. Boettger, Head of the Trade Representation of the German Democratic Republic in India representing the Ministry of Transport of the German Democratic Republic, the following conclusions were reached :

1. The Competent Authorities of both parties shall organise a joint regular shipping line between the sea ports of the two countries. The Director General of Shipping of India and the Head of the Main Department of Shipping, Ministry of Transport of the German Democratic Republic, shall constitute the respective Competent Authorities of the two parties concerned for the aforesaid purpose. It will be for the Competent Authority of each party to nominate the shipping company or companies for operating the service by supplying the tonnage required for the purpose.
2. The ships flying the flag of the German Democratic Republic or of India as well as their crews and their cargoes shall be accorded most-favoured-nation treatment while entering, leaving, and staying in, the ports of the other party. Most favoured nation treatment shall be particularly applicable to':

(a) - all kinds of dues and charges levied in the name or for account of the State or other organisations;

(b) the putting-in, loading and discharging of ships in the ports and roads;

(c) the use of piloting services, canals, locks, bridges, signals and lightings of the fairway;

(d) the use of hoisting cranes, scales, store-houses, shipyards, dry-docks and other repair ships;

(e) the supply of fuel, lubricants, water and provisions;

(f) the application of rules and formalities including sanitary and quarantine formalities.

The provisions of this paragraph shall not be applicable to the vessels engaged in the coasting trade (cabotage) or in inland navigation or in fisheries under their respective jurisdictions.

3. All documents and certificates issued by the respective Authorities of the two countries to ships borne on their registers shall be recognised by the appropriate Authorities of either country.

Accordingly the calculation of the port charges shall be based on the figures given in the tonnage measurement documents.

4. (i) The cargoes assigned to the joint regular shipping line between the two countries shall be carried on the principle of share and share alike, irrespective of the terms of sale, both in respect of general cargo and bulk cargo with a view to maintaining quality between the two parties in respect of freight earnings.

(ii) If the shipping company or companies of one country participating in the joint regular shipping line is temporarily not in a position to provide sufficient tonnage, the shipping company or companies of the other country participating in the joint regular shipping line may carry the cargo in question.

(iii) No foreign flagship will be time chartered for this joint regular shipping line by either party without the prior consent of the Competent Authorities of both the parties and whenever such a third flag vessel is so permitted, all questions relating to its employment including; the payment of freight will be decided by the Competent Authorities of both the parties.

-5. The Competent Authorities of the two parties entrusted with the implementation of this Arrangement shall take all appropriate measures to ensure highest possible economy and full utilisation of the ships engaged in the service between the German Democratic Republic and India.

6. To ensure the continued maintenance of this Arrangement and to discuss all questions of mutual sea transport, the Competent Authorities of both the parties with representatives of their shipping company or companies shall meet periodically and at least once in a year or, oftener either in the German Democratic Republic or in India whenever requested by either party.

7. The Competent Authorities of the two parties shall be responsible for the opening and running of this joint regular shipping service in accordance with the arrangements made herein.

(ii) The Competent Authorities shall designate the shipping company or companies who will draw up the time table, work out uniform terms of transport and consider other questions pertaining to the operation of this service subject to the approval of the Competent Authorities.

(iii) All questions relating to the fixation of freight rates will be the responsibility of the Competent Authorities.

(iv) The Competent Authorities shall jointly make arrangements for the clearing, handling and taking care of the ships of the parties in the sea ports of each country.

8. The ships engaged in the regular service may also call, apart from the ports of the German Democratic Republic and the ports of India, at the ports of other countries. This shall be taken into consideration in drawing up the time tables.

9. Each shipping company participating in the regular service shall bear for itself the responsibility and the risk for both the financial and other claims resulting from the operation of their ships and the transportation of goods.

10. When a ship of one party runs aground or is wrecked at the shores of the other country, the persons on board the ship and the cargo shall receive the necessary help and the same favours and privileges as the laws and regulations of the other country envisage for such cases in respect of their own ships, persons and cargo on board.

11. The settlement of sea freights relating to the exchange of goods between the German Democratic Republic and India, as well as the settlement of charges for passenger transport on ships of the German Democratic Republic and India and of all costs for the entering and leaving, staying, loading and discharging, and handling of ships in the ports as well as for supplies and services.

Arrangement shall be carried out on the basis of the trade and payments arrangements made under the Exchange of Letters dated 18th December, 1959, between the two countries or under such arrangements which may be in force between the German Democratic Republic and India on the relevant date.

12. To promote shipping between the two countries, the Trade Representation of the German Democratic Republic in India shall be assisted by A Shipping Adviser who shall discharge his functions in accordance with the law of India.

13. This Arrangement shall take effect from today and will be in force for a period of 2 years and it shall continue in force unless it is denounced in writing by either Contracting Party at six months' notice.

I shall be glad if you will confirm that the above sets out correctly the understanding reached between us."

It is confirmed that the above sets out correctly the understanding reached between us.

Yours sincerely,

Sdl-

K. BOERTGER

Head of the Trade Representation of the German Democratic Republic in India.
Representing the Ministry of Transport of the German Democratic Republic.

To
Dr. NAGENDRA SINGH,
Director General of Shipping, Ministry of Transport,
Government of India, New Delhi.

LETTERS

EXCHANGE OF LETTERS REGARDING COMPLETE REALISATION OF THE AGREEMENT OF 23 NOVEMBER 1963

NEW DELHI 21 FEBRUARY 1968

GOVERNMENT OF INDIA
MINISTRY OF TRANSPORT AND SHIPPING

New Delhi

21st February, 1968

Dear Mr. CHAIRMAN,

I have the honour to acknowledge receipt of your letter of the 26th January, 1968 in German of which the English translation furnished by you is as follows :

I During the negotiations between the Delegation of the Ministry of Transport, Government of the German Democratic Republic, and the Delegation of the Ministry of Transport, Government of India, which took place in Berlin from the 22nd to the 26th January, 1968, the following was agreed upon :

1. Both sides are anxious to continue their common efforts for the more complete realisation of the Agreement of the 23rd November, 1963 in order to extend and consolidate the economic cooperation between the German Democratic Republic and the Republic of India, especially in the field of ocean shipping, and to bring about a clarification of the problem as a whole as quickly as possible.

2. In accordance with the suggestions put forward by the Indian side during the negotiations in January/February, 1965 and in September 1966 to regulate the relationship of the VEB Deustche Seereederei with the Indian/Pakistan Conference in order to avoid competition in the Indian/U.K./ Continental Trade and a logical follow up of the Agreement of the 23d November, 1963 respective negotiations took place between the VEB Deutsche Seereederei and the shipping companies member of the Conference. As a result of these negotiations the possibility arises for embracing the agreed bilateral joint shipping service in a suitable way within a multilateral shipping service framework.

After a thorough exchange of opinions between our two sides with regard to the problem as a whole, the following agreement was achieved:

1. liner service will be operated by the following shipping companies :

VEB Deutsche Seereederei Rostock

The Shipping Corporation of India Ltd.

The Scindia Steam Navigation Company Ltd.

The India Steamship Company Ltd.

2. Secretariats will be established in order to guarantee the operative work of the liner service in the German Democratic Republic by VEB Deutsche Seereederei Rostock and in the Republic of India by the Shipping Corporation of India Ltd.

3. The Tariffs of the India / Pakistan-U.K. / Continent Conference will be applied to the liner service.

4. In the interests of the best possible coordination of the activities of the shipping companies mentioned under figure 1 above the shipping companies can appoint representatives in the country of the other partner.

5. All details with regard to the preparation and operation of the liner service will be directly agreed upon between the participating shipping companies.

6. The service will be operated according to the stipulations of the Agreement of the 23rd November, 1963 on the basis of the principle of parity,

In view of para 8 of the above mentioned Agreement dated 23rd November, 1963, and in order to clarify the difficulties arising directly or indirectly from the relationship to the U.K./Continental Conference a share of the bilateral cargo volume up to 20 percent will, if necessary, be given up to third flag shipping companies members of the conference. This share will be borne in equal parts by the GDR side and the Indian side and thereafter consideration will be accorded to determining ways and means for maintaining overall ideal parity. VEB Deutche Seereederei will continue its negotiations with the Conference in consultation with the Indian shipping companies who are members, on the basis of this mutual agreement in order to achieve a clarification of the entry of VEB Deutsche Seereederei to the Conference.

Yours sincerely,
Sd/
P. Doraiswamy
Head of the Delegation
of the Ministry of Transport
Government of India

Dr. P Pentner
Head of the Delegation of the Ministry of Transport
Government of the German Democratic Republic


India Bilateral

Ministry of External Affairs, India


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