TREATIES, MOUs AND JOINT STATEMENTS

Updated on January 30, 2005

Some of the major  treaties, agreements and MOUs are given here below:

1. India-Bhutan Joint Press Statement Jan 28, 2005

2. Memorandum of Understanding on Rail projects Jan 25, 2005

3. Memorandum of Understanding on Punatsangchhu Hydroproject, Sept, 09, 2003

4. Bhutan China Agreement, 1998

5. Indo-Bhutan Friendship Treaty of 1949

6. Extradition Agreement between India and Bhutan May 1997

7. Indo-Bhutan Trade Treaty , 1972

8. Indo-Bhutan Trade Treat, 1995

9. Indo-Bhutan Agreement on  Chukha Hydro-electric project, 1974

Ministry of External Affairs

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Ministry of External Affairs

(I) Memorandum of Understanding between the Government of India and the Royal Government of Bhutan on cooperation in the field of agriculture and allied sectors.

The MOU was signed by Shri Sharad Pawar, Minister of Agriculture & Consumer Affairs, Food & Public Distribution and Lyonpo Khandu Wangchuk, Minister for Foreign Affairs, Royal Government of Bhutan.

The MOU provides the framework of institutional cooperation in agriculture and allied sectors. While the focus areas would be livestock health / development and strengthening of agriculture marketing systems in Bhutan, the MOU also includes human resources development by offering training facilities in India to Bhutanese personnel and exchange of experts and farmers at grassroots level. The projects under this MOU will be funded by MEA under GOI project tied assistance to Five Year Plans of Bhutan.

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MEMORANDUM OF UNDERSTANDING

Memorandum of understanding between the Government of India and the Royal Government of Bhutan regarding the Preparation of detailed project report for the Punatsangchhu Hydro-Electric Project in the Punatsangchhu Bashin, Bhutan

Background:

Cooperation in hydropower sector is an important part of economic cooperation between India and Bhutan. 336 MW Chukha and 60 MW Kurichu are successful projects and people of both countries are reaping the benefits. 1020 MW Tala will add another important milestone to this cooperation when the Project comes on stream in 2005-06. The vast potential that exists in this sector in Bhutan complements our needs in power sector. The MOU on undertaking DPR on Punatsangchhu is in continuation of GOI policies for further developing hydropower potential in Bhutan.

Brief Details of the Project :

This is a run-of-the-river scheme along the course of the Punatsangchhu river, downstream of Wangdue Phodrang town. As per the existing feasibility level studies, the scheme envisages a 141 m high diversion dam, twin 7 km long head-race tunnels conveying a total maximum discharge of 348 cumecs, an underground power house operating under a head of about 310 m, and twin tail-race tunnels about 350 m long. An installed capacity of 870 MW (6 x 145 MW) has been proposed, with an annual average energy generation of 4330 GWh.

DPR ( detailed Project Report)

The DPR will be executed by M/s WAPCOS [ Water and Power Consultancy Services ] – a Government of India Undertaking. It will be completed in 24 months and the decision to undertake the Project will be taken thereafter. If implemented, the Project will be implemented in the Tenth-Eleventh Five Year Plan of India.

Funding

The earlier projects in Bhutan were funded by Government of India on a 60:40 Grant : Loan basis. The funding for Punatsangchhu Project will be mutually decided when decision to implement the Project is taken.

Benefits

Most of the electricity generated from the Project is expected to be exported to India at a mutually agreed tariff rate. The revenues from power exported to India constitute substantial portion of Government revenues in Bhutan. The electricity from projects in Bhutan is received in Eastern Grid and displaced to other deficient regions.

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BHUTAN-CHINA AGREEMENT ON MAINTENANCE OF PEACE AND TRANQUILITY ALONG THE SINO-BHUTANESE BORDER AREAS, 1998

Agreement between the Government of the people's Republic of China and the Government of the Kingdom of Bhutan on the Maintenance of Peace and Tranquillity Along the Sino-Bhutanese Border Areas

The Government of the People's Republic of China and the Government of the Kingdom of Bhutan, in accordance with the five principles of mutual respect for each other's sovereignty and territorial integrity, mutual non-aggression, mutual non-interference in each other's internal affairs and peaceful co-existence and for the purpose of maintaining peace and tranquility along the Sino-Bhutanese border, have reached the following agreements:

Article 1

Both sides hold the view that all countries big or small, strong or weak are equal and should respect one another. The Chinese side reaffirmed that it completely respects the independence, sovereignty and territorial integrity of Bhutan. Both sides stand ready to develop their good-neighborly and friendly cooperative relations on the basis of the Five Principles of Peaceful Co-Existence.

Article 2

Both sides are of the view that during the ten rounds of talks that have been held so far, they have reached consensus on the guiding principles on the settlement of the boundary issues and narrowed their differences on the boundary issues in the spirit of mutual accommodation, mutual trust and cooperation and through friendly consultations. The mutual understanding and traditional friendship between the two countries have been deepened. Both sides stand ready to adhere to the above-mentioned spirit and make joint efforts for an early and fair solution of the boundary issues between the two countries.

Article 3

Both sides agreed that prior to the ultimate solution of the boundary issues, peace and tranquillity along the border should be maintained and the status quo of the boundary prior to March 1959 should be upheld, and not to resort to unilateral action to alter the status quo of the border.

Article 4

Both sides reviewed the progress made after ten rounds of border talks. As both sides have already expounded each other's stand on the disputed areas, both sides agreed to settle this issue through friendly consultations.

Article 5

This agreement will come into force on the date of signing.

This agreement was signed on December 8, 1998 in Beijing, done in two copies in the Chinese, Bhutanese and English languages, all three languages are authentic. If differences arise, the English text will be the standard text.

Tang Jiaxuan                        Jigme Thinley

(Signed)                              (Signed)
Representative of the             Representative of the of the

of the People 's                     Government of the Kingdom of Bhutan

Republic of China                                                  

Agreement between the Government of the people's Republic of China and the Government of the Kingdom of Bhutan on the Maintenance of Peace and Tranquility Along the Sino-Bhutanese Border Areas(2001-11-06)

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TREATY OF PERPETUAL PEACE AND FRIENDSHIP BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF BHUTAN

Darjeeling,  8 August 1949

The Government of India on the one part, and His Highness The Druk Gyalpo's Government on the other part, equally animated by the desire to regulate in a friendly manner and upon a solid and durable basis the state of affairs caused by the termination of the British Government's authority in India, and to promote and foster the relations of friendship and neighbourliness so necessary for the well-being of their peoples, have resolved to conclude the following treaty, and have, for this purpose named their representatives, that is to say Sri Harishwar Dayal representing the Government of India, who has full powers to agree to the said treaty on behalf of the Government of India, and Deb Zimpon Sonam, Tobgye Dorji, Yang-Lop Sonam, Chho-Zim Thondup, Rin-Zim Tandin and Ha Drung Jigmie Palden Dorji, representing the Government of His Highness the Druk Gyalpo, Maharaja of Bhutan, who have full powers to agree to the same on behalf of the Government of Bhutan.

Article I

There shall be perpetual peace and friendship between the Government of India and the Government of Bhutan.

Article II

The Government of India undertakes to exercise no interference in the internal administration of Bhutan. On its part the Government of Bhutan agrees to be guided by the advice of the Government of India in regard to its external relations.

Article III

In place of the compensation granted to the Government of Bhutan under Article 4 of the Treaty of Sinchula and enhanced by the treaty of the eighth day of January 1910 and the temporary subsidy of Rupees one lakh per annum granted in 1942, the Government of India agrees to make an annual payment of Rupees five lakhs to the Government of Bhutan. And it is further hereby agreed that the said annual payment shall be made on the tenth day of January every year, the first payment being made on the tenth day of January 1950. This payment shall continue so long as this treaty remains in force and its terms are duly observed.

Article IV

Further to mark the friendship existing and continuing between the said Governments, the Government of India shall, within one year from the date of signature of this treaty, return to the Government of Bhutan about thirty-two square miles of territory in the area known as Dewangiri. The Government of India shall appoint a competent officer or officers to mark out the area so returned to the Government of Bhutan.

Article V

There shall, as heretofore, be free trade and commerce between the territories of the Government of India and of the Government of Bhutan; and the Government of India agrees to grant the Government of Bhutan every facility for the carriage, by land and water, of its produce throughout the territory of the Government of India, including the right to use such forest roads as may be specified by mutual agreement from time to time.

Article VI

The Government of India agrees that the Government of Bhutan shall be free to import with the assistance and approval of the Government of India, from or through India into Bhutan, whatever arms, ammunition, machinery, warlike material or stores may be required or desired for the strength and welfare of Bhutan, and that this arrangement shall hold good for all time as long as the Government of India is satisfied that the intentions of the Government of Bhutan are friendly and that there is no danger to India from such importations. The Government of Bhutan, on the other hand, agrees that there shall be no export of such arms, ammunition, etc., across the frontier of Bhutan either by the Government of Bhutan or by private individuals.

Article VII

The Government of India and the Government of Bhutan agree that Bhutanese subjects residing in Indian territories shall have equal justice with Indian subjects, and that Indian subjects residing in Bhutan shall have equal justice with the subjects of the Government of Bhutan.

Article VIII

1) The Government of India shall, on demand being duly made in writing by the Government of Bhutan, take proceedings in accordance with the provisions of the Indian Extradition Act, 1903 (of which a copy shall be furnished to the Government of Bhutan), for the surrender of all Bhutanese subjects accused of any of the crimes specified in the first schedule of the said Act who may take refuge in Indian territory.

2) The Government of Bhutan shall, on requisition being duly made by the Government of India, or by any officer authorised by the Government of India in this behalf, surrender any Indian subjects, or subjects of a foreign power, whose extradition may be required in pursuance of any agreement or arrangements made by the Government of India with the said power, accused of any of the crimes, specified in the first schedule of Act XV of 1903, who may take refuge in the territory under the jurisdiction of the Government of Bhutan, and also any Bhutanese subjects who, after committing any of the crimes referred to in Indian territory, shall flee into Bhutan, on such evidence of their guilt being produced as shall satisfy the local court of the district in which the offence may have been committed.

Article IX

Any differences and disputes arising in the application or interpretation of this treaty shall in the first instance be settled by negotiation. If within three months of the start of negotiations no settlement is arrived at, then the matter shall be referred to the Arbitration of three arbitrators, who shall be nationals of either India or Bhutan, chosen in the following manner:

( 1) One person nominated by the Government of India;

( 2) One person nominated by the Government of Bhutan;

( 3) A Judge of the Federal Court, or of a High Court in India, to be chosen by the Government of Bhutan, who   shall be Chairman. The judgement of this Tribunal shall be final and executed without delay by either party.

rticle X

This treaty shall continue in force in perpetuity unless terminated or modified by mutual consent.

DONE in duplicate at Darjeeling this eighth day of August, one thousand nine hundred and forty-nine, corresponding with the Bhutanese date the fifteenth day of the sixth month of the Earth-Bull year.

Sd/-

Harishwar Dayal  Political Officer in Sikkim.

Deb Zimpon Sonam

Tobgye Dorji

Yang-Lop Sonam

Chho-Zim Thondup

Rin-Zim Tandin

Ha Drung Jigmie Palden Dorji

Instruments of Ratification

WHEREAS a Treaty relating to the promotion of, and fostering the relations of friendship and neighbourliness was signed at Darjeeling on the 8th day of August 1949 by representatives of the Government of India and of the Government of His Holiness the Druk Gyalpo, Maharaja of Bhutan, which Treaty is, word for word, as follows:

* * * * * * * * * * * *

The Government of India, having considered the treaty aforesaid, hereby confirm and ratify the same and undertake faithfully to perform and carry out all the stipulations therein contained.

IN WITNESS WHEREOF this instrument of ratification is signed and sealed by the Governor-General of India.

DONE at New Delhi, the 22nd day of September, 1949.

C. RAJAGOPALACHARI,

Governor-General of India.

WHEREAS a Treaty relating to the promotion of, and fostering, relations of friendship and neighbourliness was signed at Darjeeling on the eighth day of August, 1949 by Representatives of my Government and of the Government of India, which Treaty is, word for word, as follows:

* * * * * * * * * * * *

My Government, having considered the treaty aforesaid, hereby confirm and ratify the same and undertake faithfully to perform and carry out all the stipulations therein contained.

IN WITNESS WHEREOF I have signed this instrument of ratification and affixed hereto my seal.

DONE at Tongsa the fifteenth day of September, 1949.

J. WANGCHUK Druk Gyalpo

Seal.

EXTRADITION AGREEMENT

THE GAZETTE OF INDIA: EXTRAORDINARY   [PART11—SEC 3(i)]

MINISTRY OF EXTERNAL AFFAIRS

ORDER

New Delhi, the 21^st May, 1997

G.S.R. 268 (E).—Whereas the new Extradition Agreement between the Republic of India and the kingdom of Bhutan was signed in Thimphu on 28^th  December, 1996 and the instruments of ratification exchanged at New Delhi on 20^th May, 1997 and which Treaty provides as follows:

EXTRADITION AGREEMENT

BETWEEN

THE REPUBLIC OF INDIA

AND

THE KINGDOM OF BHUTAN

“Preamble:

The Government of the Republic of India and the Government of the Kingdom of Bhutan, hereinafter called the Parties:

Being fully committed to safeguarding each other’s security and stability:

Taking cognizance of the rising trend in terrorist, secessionist, criminal and other unlawful activities affecting peace and stability in their territories:

Desirous of cooperating effectively to prevent and suppress such terrorist, secessionist, criminal and other unlawful activities affecting their security and stability:

Have agreed, in keeping with the spirit of abiding friendship and close co-operation between them, to enter into a new extradition agreement with each other which is as follows:

Article 1

Duty to Extradite

Each Contracting Party agrees to extradite to the other subject to the conditions of this Agreement, any person who being accused of charged with or convicted of extraditable offence in the territory of one Party, is found in the territory of the other Party, whether or not such offence was committed before or after the coming into force of this Agreement.

Article 2

Extraditable Offences

An offence shall be an extraditable offence if it is punishable under the laws in either Contracting State by deprivation of liberty including imprisonment for a period of more than one year or by a more severe penalty.

Extradition shall also be granted for acts committed outside the requesting State and the Requested State which under the law of the Requesting State are deemed to be an offence liable for prosecution within that State.

Article 3

Composite Offences

Extradition shall be available in respect of an extraditable offence whenever an    act or conduct of a person occurred wholly or in part in the Requested State but  the consequences of which as intended by the offender occurred within the Requesting State or by the nature of the commission of which, the    consequence resulting there from should occur within the Requesting State or it could be foreseen that the consequence would occur within the Requesting State, deeming that such offence is committed within the Requested State.

Preparation or attempt to commit a composite offence as defined in paragraph 1  or the acts of a co-principal, a supporter or an instigator in the commission of such a composite offence shall be deemed to be extraditable offences liable for prosecution within the Requested State.

Extradition shall also be available in respect of individuals belonging to an organization engaging in activities declared to be unlawful by the law of the Requesting state and in respect of persons aiding abetting or promoting such unlawful activities or objectives of the organization or association.

Article 4

Mutual Assistance

The two Parties shall render the greatest measure of mutual assistance to each  other through consultations between appropriate channels exchange of information intelligence and expertise and such other cooperative measures as may be appropriate with a view to prevent and suppress activities in each other’s territories affecting their security by persons belonging to:

the Requesting State but found in the territory of the Requested State:

the Requested State: and

third countries but found in the Requested State.

With a view to promote and facilitate cooperation on an ongoing basis in respect  of matters referred to above in this Article, the Parties shall establish appropriate joint mechanism.

Article 5

Grounds for Refusal

Extradition shall not take place if the person whose extradition is sought by the Requesting State has already been tried and discharged or punished or is still under trial in the territory of the Requested State for the offence for which his extradition is requested.

Article 6

Extradition Procedure

A request for extradition and/or mutual assistance under this Agreement shall be available at the request of either party to the other party or by any officer(s) authorized by them respectively in this regard. The request for extradition shall be in writing and shall be processed in accordance with the law of the Requested State. For this purpose, a warrant of arrest issued by a court of law or any other agency authorized by the Requesting State shall be sufficient. The Parties thereby agree to dispense with the requirement of the prima facie case.

Article 7

Provisional Arrest

In case of urgency, either Contracting Party may apply for the provisional arrest of the person sought before the request for extradition has been submitted to the Requested State through the diplomatic channel. The request for provisional arrest shall be made through diplomatic channels and shall be processed in accordance with the law of the Requested State.

Article 8

Surrender

If the extradition request has been granted, surrender of the persons sought shall take place within such time and at such place as may be mutually agreed between the Parties.

Article 9

Expenses

The expenses of any apprehension, detention or surrender made in pursuance of this Agreement shall be borne and defrayed by the Requested State.

Article 10

Ratification and Termination 

This Agreement is subject to ratification and the instruments of ratification shall be exchanged at Thimphu/Delhi as soon as possible. It shall come into force upon the exchange of instruments of ratification.

Either of the Contracting Parties may terminate this Agreement by giving six months’ notice thereof through diplomatic channels. Upon the expiry of such notice, the Agreement shall cease to have any force or effect.

In witness whereof, the undersigned being duly authorized thereto by their respective Governments, have signed this Agreement.

Done at Tashichho Dzong, Thimphu on the Twenty-eighth day of December, Nineteen Hundred and Ninety six, in the originals each in Hindi, Dzongkha and English languages, each text being equally authentic. However, in case of difference, the “English text shall prevail.”

Now therefore, in exercise of the power conferred by sub-section (2) of Section 12 of the Extradition Act, 1962, (34 of 1962) and in super session of the notification of the Government of India in the Ministry of External Affairs number G. S. R. 2093 dated the 26^th August, 1969, the Central Government hereby directs that the provisions of the said Act, other than Chapter 11, shall apply to the Kingdom of Bhutan with effect from the date of publication of this notification.

[No. T-413/01/97]

SHRI  K. C.  SINGH. Jt. Secy.

1254GI/97

Printed by the Manager, Govt. of India Press, Ring Road, Mayapuri, New Delhi. 110064. And Published by the Controller of Publications, Delhi-110054-- 1997

For the Royal Government of Bhutan

NANGYAL WANGCHUK