India - Germany Trade Agreement - I

September, 1952 for Rohan was finally full of relief. In the past few months he has been running and working hard from LIC to SBI to Sainik School, he thought that this month was finally where he can focus on some international development.

After discussing with KP the minister of external affairs, they decided that this will be a tour of 2 important countries that can help improve India's foundational structure in Industries, Germany and Switzerland.

West Germany, recovering from the devastation of World War II, was also looking for new economic relationships and is such situations both India and Germany found themselves comfortable trading with each other.

Prime Minister Rohan knew that for India to industrialize quickly, it needed machinery, technology, and expertise. Germany, with its advanced industry, could be the perfect partner. At the same time, Germany needed raw materials to rebuild its economy, and India had plenty to offer.

In the early days of September 1952, Rohan made his way to Bonn, the capital of West Germany. The journey was significant; it was the first time an Indian Prime Minister visited Germany since the war ended. The meeting between Rohan and German Chancellor Konrad Adenauer was highly anticipated. Both leaders were aware that this could be the start of a strong partnership between their countries.

As Rohan entered the meeting room in Bonn, he was greeted by Adenauer with a warm handshake. The two leaders, along with their advisors, sat down to discuss what would later become a historic trade agreement.

"Chancellor Adenauer," Rohan began, "India and Germany are both in need of strong allies to build our economies. We have resources, and you have the technology. If we work together, we can help each other grow."

Adenauer nodded, appreciating Rohan's direct approach. "Prime Minister Rohan, Germany is indeed in need of raw materials to rebuild our industry. We also want to share our technological advancements with India. We believe this partnership could benefit both our nations greatly."

The two leaders began discussing the details. Rohan outlined the various goods that India could export to Germany. He spoke of chemicals, textiles, and ores, all of which Germany needed for its factories.

"I've prepared a list of what we can supply," Rohan said, passing over a document. "Here are the items we can offer and their value."

(I have research for a long time on this topic and finally got the list of trade items between both the Country)

Indian Exports to Germany (Annexure A):

1. Chemicals:

- Bones crushed and hide cuttings: $400,000

- Castor seed: $125,000

- Crude drugs: $100,000

- Essential oils: $100,000

- Gums: $400,000

- Linseed: $300,000

- Manganese dioxide: $50,000

- Shellac and sticklac: $600,000

- Total for Chemicals: $2,075,000

2. Textiles:

- Capok: $50,000

- Coarse animal hair: $200,000

- Coir matting: Pro Memoria

- Coir yarn: Pro Memoria

- Raw jute: $1,800,000

- Raw wool (carpet wool): $250,000

- Total for Textiles: $2,300,000

3. Fibers and Bristles:

- Bristles and hair: $500,000

- Palmyra fiber: $400,000

- Total for Fibers and Bristles: $900,000

4. Ores:

- Manganese: $1,000,000

- Total for Ores: $1,000,000

5. Mica:

- Mica blocks and splittings: $1,500,000

- Total for Mica: $1,500,000

6. Hides and Skins:

- Buffalo hides: $500,000

- Goat skins and lamb skins: $1,600,000

- Half-tanned bastard skins (Madras): $550,000

- Myrobalan: $200,000

- Salted cattle hides: $250,000

- Total for Hides and Skins: $3,100,000

7. Stones and Earths:

- Caustic magnesite: $75,000

- Mica powder: $25,000

- Total for Stones and Earths: $100,000

8. Food and Agricultural Products:

- Coffee: $100,000

- Peanuts: $1,160,000

- Peanut oil: $700,000

- Sausage casings: $200,000

- Spices: $2,500,000

- Tea: $5,000,000

- Tobacco: $5,000,000

- Total for Food and Agricultural Products $15,100,000

9. Miscellaneous:

- Birds feathers, raw: $20,000

- Cattle horn: $250,000

- Mother of pearl, small white seapearls, rough stones, Indian cut stones, sapphires, ruby moonstone, green jasper, moss agate, green aventurine: $50,000

- Wild animals: $30,000

- Total for Miscellaneous: $350,000

Grand Total for Indian Exports to Germany: $26,425,000

Adenauer reviewed the list and smiled. "This is impressive, Prime Minister. These goods are exactly what we need to rebuild our industries. In return, we can offer you machinery, chemicals, and other industrial products that will help India in its development."

He handed Rohan a similar list of German goods that could be exported to India:

German Exports to India (Annexure B):

1. Chemicals and Related Products:

- Acetic acid (80% technical) and Butyl acetate: $120,000

- Auxiliaries for textiles and dyes, and Rongalit: $150,000

- Coal tar dyes: $1,160,000

- Fertilizers: Pro Memoria

- Highly concentrated antioxidants and accelerators: $15,000

- Pharmaceuticals and laboratory chemicals: $500,000

- Photographic equipment: $50,000

- Synthetic raw materials for lacquers: $10,000

- Titanium dioxide: $10,000

- Total for Chemicals and Related Products: $2,455,000

2. Machinery and Metal Products:

- Car spares: $20,000

- Electrical machinery and parts: $6,350,000

- Industrial sewing machines, chiefly spares: $100,000

- Machinery and parts: $6,500,000

- Machine tools and metalworking machinery and tools for machine tools: $2,125,000

- Machinery for locomotive manufacture and railway equipment, including locomotive spares: Pro Memoria

- Printing and lithographic machinery: $2,100,000

- Special electrical and electromedical equipment: $250,000

- Steam turbines and spares: $250,000

- Switchgear: $500,000

- Telephone equipment, mainly spares: $350,000

- Textile mill stores and accessories: $20,000

- Tubular steel poles: $100,000

- Wiring accessories, insulation, and installation material: $100,000

- Total for Machinery and Metal Products: $18,865,000

3. Metals:

- Non-ferrous metals, ingots: $250,000

- Total for Metals: $250,000

4. Instruments and Apparatus:

- Microscopes: $200,000

- Miscellaneous: $100,000

- Precision and X-ray cameras and photographic equipment: $200,000

- Surgical and medical instruments: $100,000

- Total for Instruments and Apparatus: $600,000

5. Iron and Steel - Rolled Steel Products:

- Cold rolled and drawn steel products including steel bars, etc.: $750,000

- Hot rolled steel products including steel plates and sheets, spring steel, galvanized iron and steel pipes and tubes, sleeper bars, etc.: $3,500,000

- Total for Iron and Steel: $4,250,000

Grand Total for German Exports to India: $26,420,000

As they exchanged lists, both leaders understood that this was more than just a trade deal. This could help both of them solve thier fundamental problem.

"Chancellor, this is the beginning of a long relationship between our countries," Rohan said. "We need to ensure that this agreement benefits both of us equally. I propose that we include clauses that allow us to adjust the terms as needed."

Adenauer agreed. "Yes, we must be flexible. We'll include provisions that allow us to modify the items or their values as our needs change. Also, we should include a clause that facilitates the employment of German technicians in India and the training of Indian technicians in Germany. This will ensure that our industries grow together."

The two leaders continued to discuss the finer details of the agreement. They agreed that the trade would be regulated by the laws and regulations of each country, ensuring that everything was done fairly and transparently.

They also decided that any issues arising from the agreement would be addressed through regular consultations between the two governments. This way, any misunderstandings or disputes could be resolved quickly and amicably, keeping the partnership strong.

As the meeting progressed, both leaders were confident that they were laying the groundwork for something that would last for years, maybe even decades. They discussed the specific articles that would make up the agreement, ensuring that every detail was covered.

Article I: Outlined the basic premise of the agreement. Both India and Germany would grant import and export licenses for the items listed in Annexures 'A' and 'B', adhering to the laws and regulations of each country. This would ensure that trade was conducted legally and efficiently.

Article II: Focused on the negotiation of contracts. It stated that the contracts for the trade of goods would be mutually satisfactory, covering all necessary details like specifications, prices, delivery, and other terms. This would ensure that both sides were happy with the deals being made, avoiding any potential conflicts down the line.

Article III: Allowed for flexibility in the agreement. It provided that the yearly value of any of the items listed could be altered, or new items could be added, by mutual agreement between the two countries. This was important because it recognized that the needs of both nations could change over time, and the agreement needed to be adaptable.

Article IV: Ensured that the agreement would not hinder the ability of businesses in either country to engage in transactions outside the scope of the agreement. As long as these transactions complied with the laws of both nations, they would be allowed to proceed. This was crucial for encouraging private enterprise and ensuring that the agreement did not become too restrictive.