His Majesty's Government of Nepal and the Government of the Union of Soviet Socialist Republics noting with satisfaction the successful development of economic relations between them and begin desirous of promoting trade between the Kingdom of Nepal and the Union of Soviet Socialist Republics, have on the basis of equality and mutual between agreed upon the following:
Both Contracting Parties shall take all appropriate measures to develop the trade between two countries. They shall study and with utmost goodwill take decisions on the suggestion which either of them would like to present for consideration of the other with the purpose of achieving closer relations.
The Contracting Parties shall accord upon importation and exportation of goods from one country to the other maximum facilities allowed by their respective laws, rules and regulations. In any case the said goods shall enjoy most favoured nation treatment with respect to customs duties and charges of any kind imposed on or in connection with importation or exportation, with respect to the methods of levying such and charges and rules formalities and charges in connection with customs clearing operations, with respect to the application of internal taxes or other charges of any kind levied on imported goods or inconnection with import, and with respect to the treatment of imports and exports of goods and the issuance of import and export licences.
Any advantages, favour, privilege or immunity granted by either of the Contracting Parties to import or export of any product originating in the territory of a third country of destined for its territory, shall be accorded immediately and unconditionally to the like products originating in territory of the other Contracting Parties and destined to imported into the territory of the other.
The provision of Article 2 and 3 shall not, however, apply to the grant or continuance of any,
Juridical and physical persons of either Contracting Party shall enjoy the most favoured nation treatment in respect of personal protection and protection of property when effecting commercial activities in the territory of the other Contracting Party provided that the enjoyment of this treatment shall be subject to the laws and regulations of such other Party which are generally applicable to all foreigners alike.
The Export of goods from Nepal to the USSR and from the USSR to Nepal during the validity of this Agreement will be carried out in accordance with the schedules as agreed upon between the two Governments from time to time.
To exchange of Goods between the two countries shall be conducted in accordance with their respective laws, regulations and procedures relating to import and export goods and on the basis of the contracts being concluded between the Nepalese juridical and physical person, on the one part, and Soviet trade foreign organizations, on the other part.
Both Contracting Parties agree that prices for the goods to be delivered under the present Agreement shall be fixed on the basis of the world prices, i.e., the prices of the main world markets for corresponding goods.
All payments in connection with exportation or importation of goods as well as the Payment non-commercial nature between Nepal and the USSR shall be effected in any freely convertible currency.
The Contracting Parties shall consult with each other as and when necessary, in respect of matter connected with the implementation of this Agreement.
For this purpose representatives of both Parties will meet on request by either Party at a place and time to be mutually agreed upon but not later than thirty days after the date of requests.
This Agreement shall come into force from the date of signature but its provisions are retrospective and shall apply from the 13th of June, 1970.
The Agreement shall remain valid for a period of two years. If neither party shall have notified the other in writing to terminate this Agreement at least six months before, its expiry the validity of this Agreement shall be automatically extended for a further period of two years and thus there after.
After the expiration of the present Agreement its provisions shall apply to all the contracts concluded during its validity and not executed by the time of the expiration of the Agreement.
Done in Kathmandu on the Sixth Day of August 1970 in two original copies each in Nepalese, Russian and English languages, the three texts being equally authoritative.
By authorization of
By authorization of the Government