Agreement between Japan and India Concerning the Establishment of Prototype Production and Training Centre for Small Scale Industries.

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Database of Japanese Politics and International Relations

National Graduate Institute for Policy Studies (GRIPS); Institute for Advanced Studies on Asia (IASA), The University of Tokyo

[Title] Agreement between Japan and India Concerning the Establishment of Prototype Production and Training Centre for Small Scale Industries.

[Place] New Delhi

[Date] January 25, 1960

[Source] United Nations Treaty Collection

[Notes] Came into force on 25 January 1960, the date of signature, in accordance with article VIII.

[Full text]

The Government of Japan and the Government of India, earnestly desiring to advance the economic and technical cooperation between the two countries and thereby to strengthen further the friendly relations which traditionally exist between the two countries, have agreed as follows:

Article I

There shall be established a Prototype Production and Training Centre for Small Scale Industries (hereinafter called "the Centre") at Howrah, West Bengal, which shall execute the following functions:

(a) practical and theoretical training of skilled workers and technicians for small scale industrial units as well as of the technical staff of the Department of Industries of the States in India and of the small scale industries organization of the Government of India;

(b) development and production of prototypes of machines, tools and accessories to be supplied to small scale industrial units for enabling the reproduction of such prototypes on a commercial basis by these units;

(c) development of special types of machinery to assist small scale industrial units in improving their production techniques.

In so far as the above-mentioned functions are not hindered, the Centre may execute job orders on non-commercial basis for the production of certain specialized components which cannot be produced by small scale industrial units.

Article II

(1) In accordance with laws and regulations in force in Japan, the Government of Japan will take necessary measures to provide at their own expense the services of a Japanese director and of requisite Japanese teaching and technical staff as listed in Annexure I in addition to those of a technical consultant required for the installation of machinery and equipment referred to in Article III.

(2) The Japanese director and teaching and technical staff shall be granted privileges, exemptions and benefits, as mentioned in Annexure II, and shall be granted privileges, exemptions and benefits no less favourable than those granted to the experts of the third countries under similar circumstances.

Article III

In accordance with laws and regulations in force in Japan, the Government of Japan will take necessary measures to make available at their own expense teaching aids, machinery, equipment, tools and spare parts required for the establishment of the departments at the Centre as listed in Annexure III.

Article IV

The Government of India undertake to bear claims, if any arise, against the Japanese director and teaching and technical staff resulting from, occurring in the course of, or otherwise connected with the bona fide discharge of their functions in India covered by this Agreement.

Article V

(1) The Government of India undertake to provide at their own expense;

(a) an Indian director and requisite Indian technical and administrative staff, as listed in Annexure IV;

(b) requisite buildings as listed in Annexure V as well as land and incidental facilities required therefor;

(c) raw materials, replacements of machinery, equipment and tools, and any other materials necessary for the operation of the Centre;

(d) suitable furnished accommodation and transportation facilities for the Japanese director and teaching and technical staff.

(2) The Government of India undertake to meet;

(a) customs duties, internal taxes and other similar charges, if any, imposed in India in respect of the articles referred to in Article III;

(b) expenses necessary for the transportation of the articles referred to in Article III within India as well as for the installation, operation and maintenance thereof;

(d) any other running expenses necessary for the operation of the Centre.

Article VI

The Japanese director shall be responsible for the technical matters pertaining to the functions of the Centre referred to in Article I, while the Indian director shall function as his counterpart in these technical matters and shall in addition be responsible for the administrative matters pertaining to the functions of the Centre.

Article VII

Both Governments agree that there shall be mutual consultation for the purpose of advancing the objectives of the Centre and of successfully promoting Indo-Japanese cooperation in operating the Centre.

Article VIII

(1) This Agreement shall enter into force on the date of its signature.

(2) This Agreement shall remain in force for a period of three years from its entry into force and shall continue in force thereafter provided that it shall be terminated on the date of expiry of the above-mentioned three year period or thereafter if either Government have previously given to the other Government at least six months' written notice of their intention to terminate the Agreement.

DONE in duplicate at New Delhi in English on this 25th day of January, 1960.

For the Government of Japan:

Shiroshi NASU

For the Government of India:

L. K. JHA