Article 1
There shall be everlasting peace and friendship between the Government
of India and the Government of Nepal. The two Governments agree mutually to
acknowledge and respect the complete sovereignty, territorial integrity and
independence of each other.
Article 2
The two Governments hereby undertake to inform each other of any serious
friction or misunderstanding with any neighbouring State likely to cause any
breach in the friendly relations subsisting between the two Governments.
Article 3
In order to establish and maintain the relations referred to in Article
1 the two Governments agree to continue diplomatic relations with each other by
means of representatives with such staff as is necessary for the due
performance of their functions. The representatives and such of their staff as
may be agreed upon shall enjoy such diplomatic privileges and immunities as are
customarily granted by international law on a reciprocal basis: Provided that
in no case shall these be less than those granted to persons of a similar
status of any other State having diplomatic relations with either Government.
Article 4
The two Governments agree to appoint Consuls-General, Consuls,
Vice-Consuls and other consular agents, who shall reside in towns, ports and
other places in each other's territory as may be agreed to. Consuls-General,
Consuls, Vice-Consuls and consular agents shall be provided with exequaturs or
other valid authorization of their appointment. Such exequatur or authorization
is liable to be withdrawn by the country which issued it, if considered
necessary. The reasons for the withdrawal shall be indicated wherever possible.
The persons mentioned above shall enjoy on a reciprocal basis all the rights,
privileges, exemptions and immunities that are accorded to persons of
corresponding status of any other State.
Article 5
The Government of Nepal shall be free to import, from or through the
territory of India, arms, ammunition or warlike material and equipment
necessary for the security of Nepal. The procedure for giving effect to
this arrangement shall be worked out by the two Governments acting in
consultation.
Article 6
Each Government undertakes, in token of the neighbourly friendship
between India and Nepal, to give to the nationals of the other, in its
territory, national treatment with regard to participation in industrial and
economic development of such territory and to the grant of concessions and
contracts relating to such development.
Article 7
The Governments of India and Nepal agree to grant, on reciprocal
basis, to the nationals of one country in the territories o the other the same
privileges in the matter of residence, ownership of property, participation in
trade and commerce, movement and other privileges of a similar nature.
Article 8
So far as matters dealt with herein are concerned, this Treaty cancels
all previous Treaties, agreements, and engagements entered into on behalf of
India between the British Government and the Government of Nepal.
Article 9
This Treaty shall come into force from the date of signature by both
Governments.
Article 10
This Treaty shall remain in force until it is terminated by either party
by giving one year's notice.
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