Decree No. 69 / 1977 Coll.
Decree of the Minister for Foreign Affairs on the Trade Agreement between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Afghanistan and the Payment Agreement between the Czechoslovak Socialist Republic and the Republic of Afghanistan
Valid
Effective from 05.04.1977
69
DECLARATION
Minister for Foreign Affairs
of 2 September 1977
on the Trade Agreement between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Afghanistan and the Payment Agreement between the Czechoslovak Socialist Republic and the Republic of Afghanistan
On 29 November 1976, the Trade Agreement between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Afghanistan and the Payment Agreement between the Czechoslovak Socialist Republic and the Republic of Afghanistan was signed in Kabul.
Pursuant to Article 14 of the Trade Agreement, the Trade Agreement entered into force on 5 April 1977. That date has also entered into force under Article 10 thereof.
The Czech translation of the texts of both agreements is announced simultaneously.
Minister:
Ing. Chupek v. r.
TRADE AGREEMENT
between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Afghanistan
The Government of the Czechoslovak Socialist Republic and the Government of the Republic of Afghanistan (hereinafter referred to as the Contracting Parties), led by the desire to further develop and strengthen, in a spirit of friendship and mutual understanding, the traditional trade and economic relations between the two countries on the basis of equality and mutual benefit, have agreed as follows:
In order to promote and facilitate trade between the two countries, the Contracting Parties shall grant each other the treatment of the most favourable principle in all matters relating to their trade relations.
The most favourable treatment provided for in this Article shall not apply to specific advantages which:
(a) one of the Contracting Parties has provided or may grant to neighbouring countries in order to facilitate border traffic;
(b) originate from a free trade area or from a customs union or from multilateral economic integration groups to which a Contracting Party is or may become a member.
(1) In accordance with the laws and regulations in force in their respective countries, both Contracting Parties shall make imports from the other Contracting Party and exports to the other Contracting Party of the goods listed in lists A and B which are annexed to this Agreement, including the provision of services, as far as possible.
(2) List A lists goods intended for import from the Republic of Afghanistan into the Czechoslovak Socialist Republic and List B lists goods intended for importation from the Czechoslovak Socialist Republic into the Republic of Afghanistan.
(3) Lists A and B form an integral part of this Agreement.
(1) For each calendar year, hereinafter referred to as the marketing year, the Contracting Parties shall conclude a separate protocol specifying the quantities or values of goods and services to be exchanged between the two countries during that marketing year.
(2) Such protocols shall, as a general rule, be concluded within a period of three months before the end of each business year and shall form an integral part of this Agreement.
The lists A and B referred to in Article 2 and the protocols referred to in Article 3 of this Agreement shall not preclude the reciprocal exchange of goods not listed in those lists or protocols, or the exchange of goods in quantities or values greater than those specified in the Protocols, provided that the exchange of such goods is subject to the approval of the competent authorities and complies with the laws and regulations applicable in each country.
(1) On the part of the Czechoslovak Socialist Republic, contracts on the supply of goods and services under this Agreement will be concluded by Czechoslovak organisations as independent legal persons duly authorised under Czechoslovak laws and regulations on foreign trade in the Czechoslovak Socialist Republic.
(2) On the part of the Republic of Afghanistan, contracts for the supply of goods and services under this Agreement will be concluded by Afghan organisations, private companies and traders as independent legal or natural persons duly authorised under Afghan laws and regulations on foreign trade in the Republic of Afghanistan.
Each country shall make available, in accordance with the laws and regulations in force, any facilitation for imports from the other country of non-marketable samples and promotional material needed to obtain commercial orders.
The Contracting Parties shall take all necessary measures to provide the most favourable conditions for the transport, transit and transhipment of goods to be exchanged under this Agreement.
The Parties will consider favourably the ideas for negotiating tripartite, multilateral and reexport transactions, provided that these transactions are approved by all parties involved.
All salaries resulting from the implementation of this Agreement shall be made in accordance with the Payment Agreement applicable between the Czechoslovak Socialist Republic and the Republic of Afghanistan.
(1) A Commission, composed of representatives of both governments, whose main task is to conclude the protocols referred to in Article 2 of this Agreement, to examine the implementation of this Agreement and to propose recommendations for the submission or consideration of the governments of both countries.
This commission shall be entrusted, if necessary and subject to the agreement of both Parties, to amend the amount of the marginal credit referred to in Article 5 of the Payment Agreement.
(2) The Commission shall meet each year, as provided for in Article 3 of this Agreement, or at any time, if necessary, at the request of one Contracting Party, alternately in Prague or Kabul as soon as possible.
The provisions of this Agreement shall continue to apply after its expiry in respect of contracts concluded under this Agreement but which have remained outstanding on its expiry date.
(1) Any disputes arising from or in connection with contracts concluded under this Agreement will be settled by an impartial arbitration procedure. To that end, the Contracting Parties shall recommend to their organisations that each individual contract contains, in accordance with this Article, provisions on dispute resolution by arbitration.
(2) The arbitration panel shall consist of one arbitrator appointed by each Party in a dispute in accordance with the regulations and regulations in force in its country and with the President agreed upon by the arbitrators.
(3) If the arbitrators do not agree on the President of the arbitration panel, the parties in the dispute shall request the International Chamber of Commerce in Paris to appoint a President.
(4) The Parties undertake to carry out arbitration findings in their countries.
This Agreement shall replace: Trade Agreement between the two countries signed in Kabul on 5 November 1968.
(1) This Agreement shall be valid for five years and approved in accordance with the laws of each Contracting Party. It shall enter into force on the date of exchange of relevant notes confirming such approval.
(2) This Agreement shall be renewed for a further period of one year each time unless one Contracting Party notifies the other Contracting Party in writing of its intention to terminate or revise this Agreement six months before its expiry.
Written and signed in Kabul 29.11.1976 in two originals in English.
For the Government of the Czechoslovak Socialist Republic:
Ing. Jaroslav Jakubec v. r.
Deputy Minister for Foreign Trade
For the Government of the Republic of Afghanistan:
Hamidullah Tarzi v. r.
Deputy Minister for Trade
LIST A
Afghan goods for imports into Czechoslovakia
1. Raw cotton
2. Crude wool
3. Sesame seed
4. Linseed
5. Goat and sheepskin
6. Baghana skins
7.
8. Walnuts
9. Almonds and pistachios
10. Dried fruit
11. Preserved fruit and natural juices
12. Raisins
13th Garlic
14. Spices
15. Medicinal Herbs
16. Camel hair and horsehair
17. Wool goods and yarn
18. Cotton goods and yarn
19. Rudy and their concentrates
20. Other goods
ANNEX B
Czechoslovak goods for export to Afghanistan
1. Investment units, assembly equipment and other machinery
2. Electricity, electrical equipment, transformers etc.
3. Mining equipment
4. Construction and road machinery
5. Equipment for food and consumer industry
6. Means of transport
7. Motorcycles, scooters, mopeds and bicycles
8. Agricultural machinery
9. Machine tools and machine tools
10. Hospital and laboratory equipment
11. Dieselmotors and dieselagregates
12. Pumps and compressors
13. Spare parts of all kinds
14. Telecommunications equipment
15. Measuring instruments and measuring instruments of all kinds
16. Tyres, souls and technical rubber
17. Domestic goods, enamelled utensils, electrical appliances and hardware
18. Construction materials, iron and steel products
19. Sports and hunting weapons and ammunition
20. Chemicals and Colors
21. Explosives and detonators
22. Ceramic products
23. Glass products including window glass
24. Small goods
25. Paper and stationery
26. Matches
27. Textile
28. Footwear including military footwear
29. Other goods
30. Services
PAYMENT AGREEMENT
between the Czechoslovak Socialist Republic and the Republic of Afghanistan
The Government of the Czechoslovak Socialist Republic and the Government of the Republic of Afghanistan,
Referring to Article 9 of the Trade Agreement between the Czechoslovak Socialist Republic and the Republic of Afghanistan of today; and
Desiring to support and adjust salaries between the two countries,
they have agreed as follows:
All current salaries between the Czechoslovak Socialist Republic and the Republic of Afghanistan shall be implemented in accordance with the provisions of this Agreement and shall be subject to the foreign exchange rules in force in the Czechoslovak Socialist Republic and the Republic of Afghanistan.
(1) Czechoslovak Commercial Bank, a. s. Prague, acting for the purposes of this Agreement as a representative of the Government of the Czechoslovak Socialist Republic, and Da Afghanistan Bank, Kabul, acting for the purposes of this Agreement as a representative of the Government of the Republic of Afghanistan, will open an account in clearing US dollars in each other's books, which will mark "Clearing Account No 1."
(2) This account will be interest-free and banks will refrain from charging each other with any expenses, charges, telegraphic expenses, etc., in connection with the management of this account.
(1) Salaries from the Republic of Afghanistan to the Czechoslovak Socialist Republic will be credited to the "Clearing Account No. 1" on the basis of payment orders from Da Afghanistan Bank to the Czechoslovak Commercial Bank, a.s.
(2) Salaries from the Czechoslovak Socialist Republic to the Republic of Afghanistan will be credited to the "Clearing Account No. 1" on the basis of payment orders from the Czechoslovak Commercial Bank, a. s., to the Da Afghanistan Bank.
(3) The bank carrying out the payment order will send a message to the ordering bank by normal air mail indicating each load on the account made following the execution of the payment order.
(4) The banks will send each other, on the first day of each month, by normal air mail, an account statement for the month in question. The banks shall examine this statement and confirm to each other its correctness within the appropriate time limit.
The claims and obligations to be settled under this Agreement will be denominated in US clearing dollars, so that contracts on the supply of goods and services, as well as invoices and payment orders, will be denominated in US clearing dollars.
(1) In order to facilitate the salaries provided for in this Agreement, both parties shall grant each other an interest-free marginal loan in the account referred to in Article 2 of this Agreement of up to 1 500 000 US clearing dollars (one million five hundred thousand US clearing dollars).
(2) If the marginal loan is exceeded, the amount of this excess shall be remunerated at 3% per year for the benefit of the creditor party.
(3) Any excess of the above marginal credit, if it is not settled by the debtor party within six months of the date on which the excess occurred, by exporting the goods agreed upon by the parties or by making other current payments, shall be settled by the debtor party within 30 days in free US dollars or in any other free currency agreed upon by both banks.
(1) Both parties have decided to include in this payment agreement a monetary clause according to which the US dollar clearing value is secured by binding on the US dollar's ratio to the Special Drawing Rights Unit (SDRs) established by the International Monetary Fund (IMF) at the date of entry into force of this Agreement.
(2) If the change in the ratio exceeds ± 5%, the balance of the account referred to in Article 2 of this Agreement, as declared at the end of the last working day preceding the date on which the change occurred (including interest), shall be adjusted in proportion to the change occurring. Any other similar adjustment would then be made if the ratio again deviated by ± 5% from the ratio used for the previous adjustment.
(3) The amount of the marginal credit referred to in Article 5 (1) of this Agreement shall also be adjusted as specified in point 2.
(4) In the event that the IMF changes or cancels the SDRs, both parties agree to negotiate a new monetary clause within three months to protect them from losses resulting from the US dollar floating in the international currency market.
The Czechoslovak Commercial Bank, a. s. and Da Afghanistan Bank will agree on the technical arrangements for the implementation of this Agreement.
Subject to the prior agreement of the Contracting Parties, transfers from the account referred to in Article 2 of this Agreement may be made to a third country as well as transfers from a third country to that account.
(1) On the date of expiry of this Agreement, the balance recognised in the account referred to in Article 2 of this Agreement shall be settled by the debtor party within a period of 12 months by the supply of the goods. During that period, both banks shall continue to keep an account in their books in accordance with the provisions of Article 1 to 8 of this Agreement. The Contracting Parties shall take measures to facilitate the supply of goods during the 12-month period referred to in this paragraph.
(2) If, after the expiry of this 12-month period, the remaining balance is not settled, the balance shall immediately become due and shall be settled by the debtor party in US dollars available or in any other free currency agreed by both banks.
(3) In due time before the expiry of this Agreement, the two Governments shall agree on arrangements to settle any other claims and obligations remaining open in the framework of contracts concluded during the period of validity of this Agreement between the two countries after the 12-month period referred to above.
(1) This agreement will be valid for five years. It shall be approved in accordance with the laws of each Contracting Party and shall enter into force on the date of the exchange of notes confirming the approval of the Agreement.
(2) This Agreement shall then be renewed for a further period of one year, unless one Contracting Party notifies the other Party in writing of its intention to terminate or revise this Agreement six months before its expiry.
This Agreement replaces the payment agreement between the two countries signed in Kabul on 5 November 1968.
Done at Brussels, 29 November 1976.
For the Government of the Czechoslovak Socialist Republic:
Ing. Jaroslav Jakubec v. r.
Deputy Minister for Foreign Trade
For the Government of the Republic of Afghanistan:
Hamidallah Tarzi v. r.
Deputy Minister for Trade
Chairman of the Czechoslovak delegation
Kabul, November 29, 1976
Mr. Chairman,
Referring to Article 9 of the Payment Agreement concluded between our two countries on 5 November 1968 and to the exchange of letters annexed thereto, I would like to confirm the following arrangement:
(1) Clearing account No 1, held under the Payment Agreement of 5 November 1968, will continue to be maintained in the books of the Czechoslovak Commercial Bank, a. s., Prague, and Da Afghanistan Bank, Kabul, without being concluded and separately disposed of at the date of expiry of that Agreement.
(2) This account will then be used to offset all liabilities and claims arising from both the Payment Agreement of 5 November 1968, unless they have been paid on the date of expiry and the Payment Agreement of today.
(3) Any discrepancies in the accounting records in this account will be clarified and eliminated in the shortest possible time between the two banks.
(4) This letter and your reply to it will form an integral part of the Payment Agreement concluded between both our countries today.
I would be grateful if you would confirm this arrangement.
Mr President, I would like to express once again the assurance of my deep respect.
Respectfully
Ing. Jaroslav Jakubec
The President
Afghan Delegation
Kabul
The President of the Afghan delegation confirmed by letter
of 29.11.1976 consent to the above.
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Regulation Information
| Citation | Decree of the Minister for Foreign Affairs No. 69 / 1977 Coll., on the Trade Agreement between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Afghanistan and the Payment Agreement between the Czechoslovak Socialist Republic and the Republic of Afghanistan |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 03.11.1977 |
|---|---|
| Effective from | 05.04.1977 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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