EMBASSY OF THE NETHERLANDS
New Delhi, 27th July, 1965.
Dear Mr. Ramachandran,
I have the honour to refer to recent conversations between representatives of our two Governments concerning the implementation of the Netherlands Volunteer Programme in India and to confirm that the following understandings have been reached as a result of these conversations:
1. The Government of India will accord equitable treatment to Netherlands 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 Netherlands Volunteers paid directly or indirectly by the Government of the Netherlands, shall be exempt from Indian income tax. Also exempt from Indian income tax will be any other income of Netherlands Volunteers in respect of which such individuals are required to pay any income or social security tax to the Government of the Netherlands. In addition, the Government of India will grant to the Netherlands 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,- worth of new items of personal and household effects.
2. The Government of India will accept a Netherlands Volunteer Representative and such other personnel as may be deemed necessary by the Government of the Netherlands and the Government of India to discharge the functions for the Government of the Netherlands with respect to volunteer programmes and projects. The Government of India shall extend to the Netherlands Volunteer Representative, and to other personnel if such are employees of the Netherlands 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, equipment, materials and supplies furnished or financed by the Government of the Netherlands and used in connection with Netherlands Volunteer programmes and projects from taxes, investment or deposit requirements, currency controls, customs duties or other charges. The disposal of equipment, materials and supplies thus imported will be governed by rules as may be prescribed by the Government of India.
4. The Government of India will provide accommodation with hard furnishings to the Netherlands Volunteers at their places of posting. In addition, bicycles will be provided to the Volunteers to meet their local transportation needs. The maintenance of the bicycles will, however, be the responsibility of the Volunteers.
5. Appropriate representatives of the Government of the Netherlands and of the Government of India may make from time to time such arrangements with respect to Netherlands Volunteer Programmes in India as appear necessary or desirable for purposes of implementing this agreement.
If the foregoing understandings are acceptable to the Government of India, I have the honour to suggest that this Note and the Ministry's reply to that effect be regarded as constituting an Agreement between the Government of the Kingdom of the Netherlands and the Government of India which shall enter into force on the date on which the Netherlands Government notifies the Indian Government that the constitutional requirements which are in force in her country, have been complied with. However, the Agreement shall be provisionally applied from the date of receipt of the Ministry's reply. The Agreement shall be valid for a term of three years and shall be renewable for a similar period unless one of the Governments shall notify the other at least six months before the expiry of the Agreement of its intention to terminate it.
I would greatly appreciate it if you could confirm that the above meets with the approval of the Government of India.
Please accept, Mr. Ramachandran, the assurance of my highest consideration.
(sd.) BEELAERTS VAN BLOKLAND
Mr. S. G. Ramachandran
Ministry of Finance
Department of Economic Affairs
Government of India