India's Relations with the P.D.R. and G.D.R, 1958-1970
THESIS SUBMITTED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN POLITICAL SCIENCE
BY SHAUKAT ALI
Under the supervision of OR. S. A. H. BILGRAMI
DEPARTMENT OF POLITICAL SCIENCE ALIGARH MUSLIM UNIVERSITY ALIGARH 1983 T2807 Phones Public :3377 University 266
S. A. H. BILGRAMI CHAIRMAN Ph. D. DEPARTMENT OF POLITICAL SCIENCE DOCTORATE DES SCIENCES PoLiTtquEs ALIGARH MUSLIM UNIVERSITY, ALIGARH
1Q.11.1S83
This lo to cortify thnt ahnulmt All hio comnlotod bis roaonrch undor 'ly OOTDrvitJlon and th-».t Ms thotsls ortltlsa •Inali'D nol'>tiors \-ith Gi^It nnd riiHj 3£)58-70j la, ry 05)inion, euitnblo for subrJ.i»sion for tho doEroe of Doctor of Phllosoi>hy (Ph.D.) IT JS MGMTTBO that there ie a Blight inaccuraoy in the tttJe of the theeia FUG ( federal Republic of Oemeny J te mentioned fM» fkie hm happened due to tjjpino error and 4.aa approved ae mch by th9 appropriate mthorities of the Univeroityp Khich could not be corrected at the tine of submissionrn ERMfiCE
AS a atudent o£ PoliticaX science Z h^cmm interested in dhiG stu<3y o£ International Relatione and was attracted to stu<^ che relations between India and ttie two Qmxmm states* Botii the nations have faced aimilar situation in the wake of the world War II» They e35>erienced partition, followed by the problem o£ millions o£ Afugees* Both have tonftwescahlish their economy and indULStryl Germans, after the destruction daring the war, and India after colonial exploitation* 'ilie two nations have to re-strucl^ire their political and econouilc eysteea at home and their position abroad.Relations bettmen Inaia and Oernany have an mS^OmA diiaenaions* ifor more than a cantury before the U'orld ii^ar II, Indians and Germans having been fascinated isiy eac^ other's civilisation and philosqphy, hove developed intieiate cultoral ties*
Gertoany became the principal bone of contention in a world divided between the two power bloos^led by the United States and the soviet Union* Both wanted a Itnited Germany on their side in the contest for world l>e9eflK>ny* However, they settled for a divided Qernianyi federal Republic of Germany joined the Western bloc led by the United states. ii
«8 a am&ies: of NATai while <3«ir!a«a3 Dttiaoeratlc R«^ul>lie l»ecaiB« « sMBinber o£ the Soviet bXoc in the wersair Pact* tRO also joined the process of economio unification in Western Gurope « European ficonomic Communityl while GDR became a rownber of the Council of Mutual Economic Assistance^ under the soviet patronage* in Eastern mrcspe* Xndia# following a policy of non-alignment as a protest sgainst power politics* declined to accfi^t any of the military alignments* Also* the reunifi* cation of Geriaany seemed to India a historical necei;sity»
In heyday o£ Cold t^ar it seeioed that economic aid had always political atringa attached it* Tim (German states (FRG# in ;^articular) achieved econo>tiic miracle within a deca^ of the emergence after the worl
A iQodest attenipt has been nade in these pages to under* stand and es^lain the co{i|>iex and variegated relationship iii
between India and the tvo German states.At best it is a brei£ survey* X am conscious of my own limitations as well as the vast and conplicated nature of the topic with which X have to deal* One point of consolation is that# perhaps* it ie the first attec^t of its kind*
2 mxBt record n^ gratitude to i:r*s«A*H*Bilgremi* Chairraan# ll^epartin^nt of Political i3cicnce#Aligarh Mislim University* cUigarh* who has b^cn an invariable scarce of inspiration; ana without whose guidance and constant encouragement* the con|}lotion o£ this work would have been inpossiblei and to Mrs.^^ilgraioi for coi^t^ies emd kindnesses*
X am also grateful to £r*2shtiyaq t^limad 2illi* Lecturer* CCivartuieflt of History* Aliyarh t^slim llnivers^ity*Aligarh for his help and encouragement*
X must not forget the help so readily made available to me by ray good and faithful friends* lys Ahmed 3ayeed Khan* Badrul Afaq Usmani* Mohd*H8Sood /tli Khan* Seraj Ahmad* Taqiuddin* Shahid Basheer Khan* s*Xshrat Mi* Anwar Zahaer and l4ohd»QasiBa*
I acknowledge with thanks the help render to me by the staff of MaulanA Azad Library where X did most of ay woxki •Iv-
Z ^ tSpticielly to m\A£teb Anntad« ^sistant jrfibrarXan who helped ise in mv>.i>y ways* X sua obliged to i-lr^KwUf Ahmau for patiently typing the maiiuucrij.>tt«
Deportment o£ political Sciencc, Jhaukot i\li f^iysrh iluDlita University^ IStli Kfovculxir, 19&3# CUtiiKHTS
mtWMibl i xiitfiyuucx'xu» % X CULTUiiM* KibiiAi'Iueid 17 l«The ;»piritual uiucovety o£ Xndia** 19 2»uhe ber.ctan Xmage in Znula 25 3«Xagore in Germany 26 4*Modern ZndoXogiats 29 5»Lans]cx-it«<3arj:en Dictionary ••••••• 30 6*Xndio and l^i^O 31 7*Znuia and 36 UQiAi Activities o£ Cultural Policy in India 41 ii«Inuian i^ances 43 iii.At 44 iY.ATt ^jclii^iuion ««*•••••#•••••••• 45 ZndtXveriMuri Cultural aoci&ties ••• 46
ZZ POJUliJlCAL 52 1«India and the German uuestion 58 2«Helati-»n& with Federal Republic of Qerinany« 64 i* The Political Xmaife of India in FRG 73 CHd^i-m PAGE
3* Relations with German Democratic 75 l«Anti*ln|}eriali&in«l»'aci8ni and Racism. 84 ii.Anti^coXonialioni .e* 85
Xxl dCuH^AlC RiuLi^aioiiO 88 i* India and Federal i^cpublic of Germany 88 i«Xnatistrial Collal:oration ••••••••••• 92 iA.Inda-<3orman CiiaJ^er of Commerce «»««100
tm India and Geriuan Ben^^cratic Hc^uMic 103 i«Xn|>orts of bsoential •••107 ii*i< IV JCKADlib Kitil.Al'10^ •••••••• •••.•••••114 1* Trade and Payments Agreeu«nts in International Trade Follcy ••••••••••114 2« 9*ro8pf6cts for Mest Germany ••••••••••118 3. Trade and Paynoeuts AgreeiiM&nts with ibast j!.urv4>ean countrie8.««,^*^••••••• 125 4« prospects fur sast Germany ••••• 130 l«liole o£ btate Trading Cox{>oratioa in Xnao^iJH Trade 137 ii«Future oi XndJP •oim xrade ^142 V .146 1* I'echnlcal Coopcjration with iiiO i*Technical Eau^ration ^146 il*^ricuXture iii*Hass Coimmmication ••««,X49 Av«.. k'romotioo of i-s^.orta and Tourism « ^. ^iSl v«XnaoH!&rt(ian coXlaboration in industry rechnlcaX Helations vitii om .168 l«Iii^ortance o£ L,eipzig Fair •«*»*.***X74 ii.Beneficial ££f«ct8 ,•..••175 CONClfUiaiXuisi •••• •••• •••• •••• «<••• ••••• X76 •••• •••• ••••• X90 SIBi^XOGKAfHY ••• •••• 2Xe 1 Zn One of the striking developments of the twentieth ccntury has been the change in India's attitude towards the world. Frutn an inward looking country* pre-"0ccupied with 1. Heimsath* Cfvarles H. fii ^urjit Mansinghi A Piplowatic Mo^efn vii. itu own «££«irs« first It tested the British vcrsiun of Western culture and then became an increasingly committed participant in International life«>cultural« intellectual and economic* This unprecendented process was ^ided in the poiit>»indcpendence period the ideas and policies of one of the most internationally coni^cious of Indian leaders» 2 Jawaharlal i^ehru. Jawaharlal i^ehru also presided over the entrance of India onto the arona of ^.^rld politics^ Almost until his death, i4ehru*o dominance in the formation of India's foreign policy prevailed without any serioue cliallenge. t-ven today* India's position in world affairs, is« by and l€irge# the satae# on was moulded and ^^roject^d by Jawaharlol I»ehru« 'ilie India of iHehxVL a^^&umed an international posture that to Indians seemed coinfortable and to foreigners appeared characteristic of Indian culture! non->alignment« a position of equilibrium between the two cosseting systems, is etmolo- gically negative as are many of the principal Indian concepts* i»oo*alignment as « concept and m posture is perhaps equally ijiQportant* ^ When Britain declared war against Germany on beptember> 2. Ibid, viil* 3. Ibid. 1939« India was autCMsatically involved in what afterwards becanie a global war* Britain was naturally anxious to utilime 2ndia*s c^ndant resources £or the pro&ec^rttion of the war«^ xhe Znciian peo|.>lea wera thrown into the war against their wishes. In fact the Indian Legislative Assenibly was not consulted when the British declared India at war with many nation^! with whom India hod no quarrel* 5 ihe peoi^le of Germany followed India's freedom struggle with syi%»«:ithy» And after Inciia*s inde$>endence« the peo^jle of Germany cordially granted India her retpi^earance on the otayo of International politics ana assisted her progress along the new road as far as was f. a^^ible with the iixltially iH3dost means dt thoir dispoi»al» rhe Gerinan ijeo^jles are grateful to liitaia for her eftorts to prevent th^ outbreak of major co flicts in the perilous years of the cold war* The German people* who within the space of a few dtecades twice over found themselves d feated and overrun* syi^athise fully with the pride with which India defends her newly won independence* Free from all ill*will that a former colonial 4* Majumdar* H«C«« haychandhuri* H«C« and Datta* Kalllcinkari S« Chamanlali Germany Reborn* p«140« pow.r niight 1m ejQ^eeted to bear# it vas perhe^s the Oermens who im>i«t speedily and effortlessly adjusted themselves to the net: situation* which ushered an Asia eoni>Oi«ed o£ an array of single states beck into the arena o£ world politics* It VQU Oeratany that sooner than many o£ nation in Eurcpe realisscd that the age o£ colonialism was only an ^isode in thfci hiiJtory of human race* And today the peo^^le of Germany are yrc^ared to accept all the conscqaencec ensuing from the pre£>ent state of affairs* Amongst thece are the hopes that all the countriesi which under India's leadership have picked themselves to a policy of non<»aliyiitQentt ^ill succeed in ensuring a state of peoco in the world* Secondly* there is the hope thot Germany* s industrial achiovc0£>nts opened tho door to an inttnsaive traa© beti/een the tiro countries* a cotjuatircial excha-Kje coaducive to the interests of both sides and conducted in such a mann^ r as to offcAd the pride of neither* 6 After the second l^orld Vfar both India Genna;::y have exi^erienced partition as also the suffering of the streams 6* 2dlok« Hemtanni Men will one aav reach the point* pp*45-46* o£ refugees which have dttcimted 80cial# economic and cultural life of their ..eoples« The division hsa de* stabilised the political end iiidueiXi&l cou u'hen Xnwia becaoie ind^enclent in August 1947#Oerznany was with a asu.tful legal stutus* Xndia also found that in thu first iwo years of thti ocavation of Geriiianyt th^ Four Allied yo^iers he.d shown tlicir uttar lna'>ility to carry out their policiis in a united raani^ treating her as olitically and aconoaically an undivided whole* Sut slowly and to a certain degree* ia^erceytibly, the three Western iVllies on the one hand and the on the other created two statelf i.icorpora ed within their respective spheres of influence^ owing to conflicts arising fr ffl the inco% atibility of their p purpose and interests in Germain and elsewhere* India was one of the first countries to establish diplomatic relations with the federal Republic of ttermany 7. Lieft^r# waiter* ^ndia and the> Germans* p*270« 6* Misra* ''Recognition of the GOfl**t *An ^praisal of India's policy^ in mf l^fn XffF, ,9l, iMM^ p.iliV 6 A Shortly a£t«r It casie into exlst«nc«»' January 1*19Si* a date o£ special gratlfiuation to (German friend of Inula* On tliat <2ay the Indtlaii Union first of all hostile and sami* hostile coUii tries formally ceased to be at war with Ceannany* It wa^ perhepa the traditional friendship ttiat inspired the Indian delegation* under Hr8*VlJyalakeha.Di iPandit to place proposals for tim solution of the Ciernian questiun before the United nations* India did not accord a Bi-nllar treatment to the Gennan iiemocratic Rcxjublic-India gave a defacto recognition to the CiUB* And tho relations between the two countries became in Uctubfx 1970* as consulate level. It v?aB» therefore* because tho reunification of Germany wa a historical necessity to Intiia. It was reluctant to take acy step towijrus the diplo- matic relations* which night retard the forces of unification, Recognition of East Germany by India m&ans the. acceptance of t:h& division of Germany as final* But in 1972 India recognised the German Democratic Republic* 7h« Indian economy was underdeveloped when India became independent in 1947* About 66 percent of the working population 9* Duckwits* G.f** *&ome Aspects of lndo«Oennan Relations" pi To accept or not to accept foreign aidi Prime Minister Jawaharlal t^iehru tried to explain the dileofDa before th« Inaian Farlxau^nt in the foXlcwinv words, 12 "I am quite clear in my mind that I would rather wish thet our advance was slower than wa become dependant on the aid of the other countiies*** 10. The First five Year pT^L (New Delhi). 1953. p, 29. lU Pillai.K.Ramanl Indie's Forfeien Follcv. p. 103* After Baying this, he realised that he might be misunder- stood and hastened to add* really do not eee why we should be efraid«Proirided are strong enough ourselves, o£ taking this type of aid from other countries wMch obviously helps us to go more rapidly ahead* There are so many things which ve coulu do with that iiid which we have to po8t|)one without that aid*.* After all* almost every country , has gone ah ad with help in various ways frcHii other countries in the past and I do not see any reason why we should prefer not to take aid« even though that aid does not influence our policy or our activities in the Bllghteatt': i^hile wulcotaing foreign ai^t^is^-ca .cc end fon l.gn ce^pital in t^e Uovernnent of India clearly iadicQtcd its prfcfere^icfc for ce-tain types of extezui£L aid* Itie planning co.nmi©sion boted that.^^ ***'riOffity will no dCRObt go to such oKLmxneX investiwant «• is availab. c from institutions organised on an international basis* i'he resourci^s of ^uch i.^stitutions however are liraited« and it would be short sighted to exclude without good reason invei>utient of funds from advanced countries, ei liter on an inter-Ngovernmemtal basis or on the basis of negotiations between indivi* duals or corOporatiuns in the countries concerned** Xndia adopted a progiaumnt; .f developnpient in the Fi at iive Year Plan which for exceeued the internally available resources^! end it waii baaed on foreign aid* First Five 13* l^akdawalftt £VT* "Foreign Aid in Indian Economic l>evelppa»ent*, in United Asia* Boaibay, vol*9# No*4, aept*19S7« p*26>« Year Plan was « 'pr^aratoxy plan* for ^rt^ater lyid more raj id progress In futtire*^^ ^e cottntriea who gave the 8ul»&tantial economic aid for Indiana 14. 9illai« K*Ra:nanr India's Foreign Policy* p*104» 15. DiveKart ylannlnq Process i|n Indin Polity. •269. * ^pendix - 14. •« The Cunsortixim (Aid India Club) is made up toy the US* Canada* UK* W.Germany* France* Italy* I4etherlands* Belgium* Ji^an and the IBRD and the IDA. 16. Pillai* op»cit>^ pp. 106-108. iO Gcsrmany was economlcaXly speaiklng^ m developing country after the world war XZ* The Germans had to aemk help from the US^ un^ er the star, hrl Plan in orSer to get back on tlieir £eet»^\hole cities had to be rebuilt agalni industry and econon^ generally had to he ricons xucted* ^iitnultaneously with all that# 13 million refug&es* who as inaividaals ti^ere not respuiidible for the £ate that had be fallen h DcB its internal and external difficulties* the two countries have been striving for nt w horisBona in a technologi- cally determined future. While the Germans h ^ve rebuilt was destroyed and dismantled industry. India too have begun the ^irocess of scientific and industrial development and are now trying to reach the coinmamiing heights of modem techno- logy, liioth mode a fresh start in the economic* industrial n. John, Gunther« |:x^aide mtoui^ Xod^y^ p. 39. 16. lippler* brhardf "Partnership lor Peace* in comroercc! vol.118, NO. 3034, Boiabay. June 2a#1969, p.lS^; 11 and technological «pheres« the boginnirm o£ a reconstructad state were aa recent in the ccmntry hairing had centuries of colonial valuet m in th6 other country which enjoyed £mt brief ycurt; of military e*;^remaqy under the Nassis»^^ We^t German aid prograinoe in Xnuia started vith the credit agreeiiicyit signed in 19S5# for the aecting of the 90 Pourhela Etecl Plant* In etrer^then ng India's econoiny Indo-West Germany coo^^eration tended to foe concentrated xi^jon coital aidi thct is« on selected undert«tkinQ financed by longterm credit® at low interest r. tes* 'ihc ©r^eter ^^art of tho aid granted to India had boon for project thut have since been coopeleted and which today represent internationally recognised milestone of ^iroyress liourlcela* Bhftdravati to nasoe oioly a few of the txn»t famuua. Germany's ehare in India's trade had become insignificant in the era of nationally conditioned nu rchent system* Many Gernians held posts in foreign trade oo«%^anies« Isut there they were little morethan tools in the monopolixing endeavours 32 of Other nations* 19. Uefer, i^alter, m l^t 20* i^illai* op.cit.^ p.lOS* 21* Epi-ler* Ethard* "Partnershii^ for Peace* in Comgterce 22* Liefer ^^alter, op«cit«* p«271* 12 The official termination of war afainst Germany and the inaepen ence o£ Xnaia In /ug»1947 uahered a ae» era of XmiCh^ermQn tra o ties* But it was only at the beginning of the fifties that the Geraiar^ becmoo one of the major tr ding partnerti of 2iidi.a# India in 1951 hed launched the First of ht)r Five Year i'lans with it her de^nand for capital goods bc^iin to ^jKov £it<„ciaily and ra£>idly« ^aile fae t Gt5rraany# at the &atae tioje h ,vi.ng xfecovered from the breakdown of her economy aur .ncj the war« could offer iiigh quality goods at co%jetitivo pric 23 Shore io a fl 23. Chaaaaiaali Gtarraanv Reborm p. l4o. 24» Her, K%rli 'India and Germany* in (jloaaroerce pp«cit» p. 14* 13 Zndia extended her relations with Gennan Dea»cratio Ki^ublic also in economic and trade fields. £he Indian Prime Minister Pandit O^^v^orlal i^iehru« told Parliactient in 1961 that " ..a h ve trade relations with the East German Government Defacto ve ruco^cii&e it*' Bat the aen^^e o£ this end other eimilor statement made by him vm factual rather than legal* by virtue of the ainibiguity Xadia contrived to Lcnefit frcm 25 ^ood relations with both parts of GermarQ'** 2naia particii^cited annually in the Leipadg industrial fair* siytied periodic trBClin^ a^ircexQcnto witli the Gi^Kt €yad accented a reaiuont trado ri^jrosentative from tho county^ thouyh the geuturc was not recit^x-cated* East Genoany financial and technical assistance waa us,^ in settii^ up chemical and raw film inchistries in lndia« and h^f mid*1960*8 the two cc»antries were itn..ortaiit tr ding partners* *hc trade reiutio:^ ii»_ti..ean India arid aie Jtirjuan Democratic K 25. Heimsathf Charles ti & i»urjit iMansinghi h Diplomatic History of Modern Inv^a. p.435. 26. Ibid. p.434. 27. Eastern £conomi;»t. vol.S2* Jan 34.1969. p*190. 14 of There is a long hii»tx)ry in the fieXd^cultural rela ions bctveen Xnciia and Germany* It atarted in the nineteenth century, uiuce tii«£n tile relations between the two coantri>.a ha» been inorea&ing* '£h& cultiaral relations betw&t;»n Znoia and tlie Federal K^ublJLc ot Gerraaiyextended into many areas touay* In the Federal Kqputolic o£ Gerinai^ there are many professorship* for Indo-logy» They arc dedicated not only to the £ield of classical Indulogicol rescarch# cheir acienciflo effort® are clso tievotea to _.ret>fcxit day iadia and its languayest literature, art# ecoa m/ and Icgol Si'Stcm, ^fi-xe wOutii-*iSia instii:ute in .-lei ^el^trg, which m, n raclnt&itjii a Ifca^sch in klew Delhi, in the iiax miler Bhavan, In z^vvvt cultural insti* tutea* the seven Max fluller Baavans. plac of ladu-uer.aan encounter have been established which sxo now e^-tremelyactive. 1*he cultural Agreement of 1969, provided a largti sctile exchan«e Oermaa and Indian universities, archives rnur-eunis. There are a wide ranging contacts of the media* adult ed Xndia being a large coiqpXex and culturally plural country* its e^ ru< ch to GU. is likely to be different in nature then the Gi^a*® epx roach towards India* 'raking this fact into account^ it io i^uacprieinci hL;w strongly broad circles of thu Xmlion population are interested in the aucial aau cultural li£o uf GiM* friendship societies catabli&hed by tho «Xl«lnoia Aasociation of friendship cociutieti in Delhi in 1066 coii»Mnning 20 urgani^ativ.iia in the different stutc^j, lith a|\.rojd.m-.tely 150 brv-'icli s for . romotlnf^ and avoluating the cultural and eci..ntific liiili,. u-if.i i^ortiiyti c^a-itrit.s« Xhu work of the frie.ids.^ii; soci La au^j. orted by ii'iv K vi^w, a periodical published by he Gi.rman Friendabip .»ocir ty, as part th® L ague of Frlcn'lship aiwng the xaeuples* The friendship societies also sui-i^ort the publicstlnn of books* features and re£>orts about th«s QDH in the di; fcrent lanfuages spoken in India. ^ 28. gerwan Hewy. March 19* 1981* p. 4. 29. PQlivka* 2(ed). oo^iallst CoBhounitv and India^ Cultural Ties, 16 Zn the Iast« it c.aii be said that since indapendenca^ Indian leaders have tirged a policy of peaceful co-axistenoe of all nations irrespective of the Government or social syatM* For maixy years# it occined that world inmld remain 30 divided in hostile canps, "^ahe Indian foreign policy has l>een a • protest csgainst power politics •»» Her policy of non-aligmnent Jborc an inherent inplicati-n for t^o rejection of «oraa of the basic teneC-s of power x^olitics, Therefore, India extended her relatione t-^ith Ixjth afSi and SUC on ax>ro or lerrs similar pattern! Historic cultur^il sffinitiea faciliteto the development of i-'Oiitical one t;conor.Jlc rolotiona. 30, .lailc, J*A»(ed)* Xiii.4a and the CoCTmuniat Countt|tes« Documents, 1979s ** 17 ^aptgr • J. INOO * GiiMi^d^ Cm*WHMs "Xf Z vtm to look oir«jr the whol* world to find out the country mo»t rid^iX::^ endo%re4 with sll th« wealthy power and beauty that auture can l»estow« la parts* very i>arai3i8« on earth • X shoulcl point to Xndia* Xf X were aaked under what sky the huraan mind has noBt Cully developed of its dtmicmmt fifts^ haa loost deeply pon Max Mailer ( Xndi»«^at can Xt l^eachriVs? p»9 ) Cited in Oharoanlsl t Germany Rebojra p*47« 18 Kelations between India and Oermai^ have been predominantly ouXtural in nature* They began soraetimee in the sccox^ (garter o£ the nineteenth century* £^ince then tl^ie j^eople of india and Germany haive paid tribute to the thinJcers and phiiosoi.her3 o£ each other* en^hasiisint the interc^axige and ^^reservation o£ rnutual caiXtoral herita^e*^ FhiXosci|;»hy and religion constitute bedrocik of the relations betviei n Xndia and Ciermany* Indian culture and ijhilosc|>h , like the Greek and Koinan once* have been a great a;::tr«:icU.on for oer^ian thinkera t^ho to this day are convinced that tiiey are of fundacuaxital irii^oruance to modem thought* Xt is on tliie iaasic foundation of mutual exchange of views and the rcs^. cct for each others achir-vtein; nta that the 9ood relations and understeudlng between the two caantriea have been developed*^ Indian philosophy deeply influenced German thinking in the i9th century* Xt is often said that ancient Indian philosophy was reborn and given to the world again by German thinkers and philoso^^hers* On the other hand* it can also be said that Indian philos .phy . ut German thinking into « l* Leifer. v»aiteri India and the Germans* p. 270* 2* uchiller* Karli "India and Germany" in Coamfcrcf^ vol*118, flo*3034* Bombay* June 28«1969 p«4« 19 state o£ cre«ti.v« restlessness wr.lch proved extremely significant* Zt exercised a decisive Influence on philology and philosophy and stinMlated con^jerative religious studies in the two couitries*^ til nee then there has Jaecu a lon^ sv^ries of contacts right upto the present day* a«£:dndr«n&th 'fa9fore*6 visit to Germany in the nineteen twenties is not forgotten and his personality escerclsed a soothlnp io^act on a Geraieny# Qj terribly shaken oy world War X* i^ven during the «orld s^er the bond between the two nations v as never conple-» tely •«!rerea# so that the thread could <^ickly ije t©'?en up again* I'uday one can thac what in the 19th century was only to be found amany sc^ lars and poets has now Income a closely woven fabric of contacts in various spheres of cal&ure wiilcdi ^noraces wide sections of the populations*^ Hie first German philosapher of international startdlng • to turn his attention with inore than curCsory interest to India was Znmaniiel Kant (17a4«-180S|* In l818« August Miihelia VOB ^chlegel (1769*ia4SK who since 1814 had devoted hlntsftlf 3* JEXidcvitm* G*F«l *&oiae aspects of IndcMierman Relations" ^ COMttereej. o{>*clt« p*27* 4* Ibid* p*37. to an intensive study of India and the Indians^ was awarded the first profas^i^orship for ^anslcrit at Bonn Univarsity.^ « The first coo^jrehensive attei%-t at writiiscj a history of Zn<3ian ti)ouQht within the fraioewojclc of a general history of philosophy was undcrrtakcm by r£erX*J*Hierony?Dus i^india* chmaiin (1775-1839) • i?rana von Seader (1765»ia45> also mad® occaslaaai exaasiano into Indian philosophy and history,® I'liti assiduity witii which Karl u3iri£»tian jbriedrich Kjcuccr f^^jl^ed hlnisclf to the study of Indian spirituality, to tile -that it coiiforttKsd with his own vievrs, may be iisfcsrrfed ilruai Uic large nuo^tfcr of his works on Xa-Uaa •Jiilosoi.hy and reliciion. 7 A special place amongst Gerroan thinkers is occupied by Arthur £ychopenhau* r (I7e8«1860} i not only was lie desfply influenced by Indian thought which evident in his writings, but also attached to India and her spiritual heritage a potverful significance within the hi^story of the evolution of nanOcind ^^^ m romanticist to the core, ;»chc^erih«uer saw India endreled by an aureole of glory* It was Schopenhauer, 5. Uok, Herma: n* Htm UU 9m, ^^Y P*^^* Ibid* P.4U 7« ibid. zi Richard wander and Paul ijmaa&mn who opened to i^'rittdric^ siiidtache the djosm to the world of Indian tnottyht, 8 A galaaor phllosojahejr® of recent tinwBS, ranging from afiwald Max ^c^heXer* Count Hermann K«yiiurlXng» Leopold Hudolf Kas^ner and tiartin Bolder to Karl •JasperH* who studied the culture of the land of the Ganges and anaiy£i'.d h^B spiritual and intallectual th«r«F> with i/laj/ir.v, a decisive role Xn iiuulditig toe. imaye o£ India in bannany* i^Ron^ wide circles^ in uertfiany* the idea o£ India evokes the follorfiny associc.tion«i *th® land of saints and philosophers, the land of fakirs and anaka^charmrB^ the land o£ mystics and sactarlans* the land of prophets and astorcists, the land of asc tic£ and human marvels• tha land of maharajas* yo^is and sad)vyui# th« land of saerad cows and toaggars** 9» Il»id« 9*4 lo. Ibid* The first icoropean to to le&rn ^«nuBXrlt wiyi m airman* Father ileinrich Roth from i^Xliagen in Bavaria treveXIed nearly all ver India £rom 1653 imtill his daath in lL6f»B» Xn Agra he Xeamt i=»anakrit £ram Brhaeians for alx ycar®# OPhe first tla»« sani^rit typ«s were used in Lurope when in 1667^Athana8iu8 Kirch, ir published his %ioi:k, "Chine Hiuatrata* in villich ei-art frtw scne iuytholoyi.cal noten he yeve of i^ov^an^ri type®,^^ The work about India that was published until the ond of thw i^tii c«.atury waa written ia Cen. John Gottfried Berdsr t«a8 the first to popularise Indian cultural treasures among the Gerioan public. In his treatise •Indias about the philos<^hy of History of ManHind* ha triad to co%>rhend the intellectual davelc^raent of all peoplas 11* chacnanlal i Oeruanv RajB^rm p«48« 12. Iteid^ p.49. Z3 of the earth with a universality of thought that could not but Include India with her cultural and spiritual life, ^^ Zn ^lay 179Ueorge Forster sends him the "dakuntalu* o£ ivalioa^ trar^»late(l into wciT.aan by himself from an jSnglish translation hy -ir William Jones* JChi& mast r^^ioce of ancient Itiaj.an IjTlc ^-oetrs' could not tait strenfthan Herder's convic- tion about India* i;Ull of enthusiasm he re^ li d to lorstert •»It ia clt-^r that like thit^ c?5n once 14 in C.WO tii^usiand yt-ari."* Xt irv'w li-i. orJLy tl-'tt lierdter acquainted the Qer»acn vith» xn ais "KcXicctijiis o£ Certidn lirahmina*, he yuMitihc-Cl aii fedltiun of In. it>n savings based upon an IS L.K%lish tr*iasiJUX-n o£ tba ^^iutOipadeBa. Frans Bop'^t on tae other hand* was a scholar* his yotk was ix)und to b.c iae of decisive i%>ortance for Indo-Oerma® cultured relatioi-us* He wai« first scholar in curope to have mastered ^anakrit* Ha contributed much to further cultiiral relations between Germany and India*^^ 13. Ibid. p*49, U* Ibid* p*50* IS* ehamanlal* ou.cit* p*5l* 16* Xbld* pp« 51->52* 24 Zt Is a great merit of Adolf HoXtsmaim^ from 1852*1370 Pr^iesiior for v^anskrit at H«ldeXberg« to have ireuislated XnOion et^iG poesm £xxm t94S«>i947 undt^r the title of •Xnc.ian iallies".^'' Max i4itiXer becaoie e veicf effioaciuus instrument in furthering cultural relatiuns between Geraiany and inciia. At th@ age of 23 rt^fiolved to edit the v/huXu ttixt of Kigreda with i^ayana's COMientary. udq ^ear aft^r ta^ t^w^blication of miXer's Higvade edition tvishi iJayam^nu ^oxasvatX icounded the Ar/a ucuuaj uitli tlitj ceitch^'ordi "Return to v Arya -aiuaj hits rcadGrcd pioneer servicc.c in the popularisatiua ot vecLic ii-ci.t.iviru end revival of Aryan culture in ZnOia anu aidcoad* ^Mo axurvvy dhvvu how iadocd ty the laojfk of a tierrr.an Gch^-dart urr^ Inaia and lhsjX ua have cantriiauted each if; difcir cv^n manner to preserve intact one of the most « o ancient laonumerii;;^ of human civil 1 satlon« * the wint X of ^abre^t web^r* Oaraian sdliolar held his RMmoraole lecturer on the histoary of Xndian litera- tures in an over crowded ^^uditoriura* He published these lectureii in 1852 in lierlin under the title of junctures on the History of Indian Literature*, with an 17. Ibid. p.56. 18. Ibid. p. 58. 26 »xof0»BOK Hookerj|««*s e&mKH on this subject^ ontt is teni-tcd to quote u-hfi following intere^^ting passage to illustrate this pointt Hut saysi durc^le bri<^e between India and Germany was reaily built in the falflaie of the 19th century by the vareatil© poet and uansJcritict Max ^i^lller whose name h^is been coronMnoorated In Delhi naming the centre of Zndo-German cultural r^iilatiuns after him. Mthough he worked roast of his life at Oxford end nevor once viaited India* he was neverthless in constant touch and in corr--.Jth th^. leading Indians of that tiae oncl he understood ^ven tmch better than the later .^enerpitlon o£ infiologists die Indian tei%er «ina lodi^ora aspira- tion* In £aoU# at the International L; ngresii of urientalists in fep.ea&Jtr l have contlnously rsraalned in the foreground in Indian thinking of Germany",^ A« In other Asian countxiea* mo in India alao the diffi* culty in understanding Qermanrf has been th> t iMhatever little the educated Xnaiens kne%r about Geririany d gjok* Hermanns f^ft yfU 9llf m ^f PO^If^^* 21* Ibid* 28 This helikit is responsible tor the coiuild«ral>le rity o£ the o&nnan In IndJla^ for a OaXlusp poll 1969 has shown that Oermany enjoys vith Russia Lhe third place after Je^an and America* in Indian esteem as India's friend* Professor MooJcerjee further says that if the Ger«ian image in India has to bo im^.roved further* one of the first c»>nditions should be thut Xnuia's image in Germancf should be iii|>roved also* and this* according to hint* can be dune nure by exchange of works of litervturo and translations of books from one language to anoi:her* rather than ty mere exchange of stutianto and appren- tices, fact is* he says* that though raang? Indians go to GerLiany ana imtny GermaXiS come to InCia* ther basic knc-wledge of cach other reraains so limited that they often* because of ignorance of each other's problems and tei!|)erament* interpret eachother VEConglyl although in spite of dearth of good books on the whole good feelir^s for ecchother hi.ve survived roany 22 national and international crises,""* a^^e^ing of hie visits to Germany (1921* 1926 and 1931>* Rabindranal^ Tagore* oneof the greates lyrical poets of all titnes* once Lero«rked that the reception accorded to him had been veritably eca£>tatic« IXiring the lecture l^nir that led 23. lUd. p.68« him from one town to the other # he waw evtry where greeted with a storm o£ enthuslasia^ During the twenties his books* w^tich were also pvLblished in Qernian* were sold by the Million in German towns and villages** For many Oeriiians* this was their first encuunt^r with the world of Indian thought. Xn a letter written from Germ^iny to an ZnOian friend^ Robindranath TcVore writes^Cear friend in Xnuia# the G;:rtnan x^eople accepted 23 rae as Uieir own*. 4* t'lodem Indoloqistst Friedrich U'elter in Leipzig* who made very interesting contriL^atiuns alix>ut the influence of Buddhist legends on the art of the late Mddle egea of the (-hiristian era, thus showing to what extent Xndo^enuan cultural relations found their arti8«> tic es^resaion in Gorruan as such. Faul Ihierm who had studied in Allahabad frc^ 1931«'34 aj^ showed new ways in the Research of ^igveda* Helfflut von Glasen^pp toy his books acquein^ed a wider public with Indian philosophy and religions* AVen the two world Wars could not seveie the cultural ties between Gertacny end India* Inspite of all misery caused br the 23* Hezinann« c>pficit>i. p. 46* JO l»reidc(^wn of Germany at the end o£ irtorld War £X# there are professorship for indology at the following unii^8ltles« jiiGrlln# Gottlnyen« HaXXe* Han£tA3rg# Jena# KleX» luelpslg* liar burg* mncuen (Munich) ©n4 jPttblngen.^* Ihe rebirth of Uermaa coXturul llfo ana the ecohomic consolidation of Cferntany In the la^t few years inay Ixa consi- dered as a cjuarante© that the traditional cultural Lies between India sXid Ocr.any will be maintained and become even closer tliat India 15 free« 5. ;^ans?crlt-Qertnan Dictionary! The i^ansJcrlt Ooriian dictionary of ^t#Peter»burg published In soven wluaiea, tf^lll for ever be the i!K)st im; or I ant raonun^nt of 2ndo«German cultural irelatlons. swilth the support of the Russian governing nt thlQ work ap. eared in i:»t« Petersburg between 1855 and 1875* Sliese seven volume® of about 9500 pages are a real thesaurus of German industry* thoroughness and devotion. They were for the greater part the work of two German scholars* Otto 3ohtlin^ and Kudolf Rothii Roth*s intention was to treat ihe Vedie literature above all« The toeanlngs of the words found 24* Chainanl«l« p«65« 3i Roth at that time toostl^r vere proved to he correct even in the lig t of moo^^rn research* ThuB he laid the foundation for a scientific study of the Vedas* i;he tvo scdK>lar8 were assisted in chuir great vrorK by tio x, ^brecht V»el»er» JDheodor iuifrecht* iiOolf ^rieCirich Stenaler and Frana linton ochienfnerj^ ^his Qreat dictionary has reinained '.he basis for intern** tionaX indologicai research* Let us ho ,e this inportant work may be contijiued as a common cultural endervour, tho interna* tional co%oetitlon among all the civilised nations having made accc&3ibXe new Vaot domains of Indian civilisation since the publication of tijio uni<|ae dictionary,^® In 1961« Jte sta.eman and philosopher . arvapalli ^xadha Radhakrishnan saidi *X can confirm that on each visit to the Federal K«|}ublic o£ Germany^ Z was received with the warmest 27 cordiality and good will by the Uerman people** K.P.Biswas publi&hed an essay on "l!he Indian and Gt.niian Mind'*« in which he writes! ''The ifl^act u^on the German mind of one hundred and fifty years of association with Indian thouijht is most readily aspparent to the unknown Indian travelling as a stranger in the country* In Germany I laet people who knew 25* Ibid* p*62. 26* Ibid* p. 62* 27* Hermann* something of India* both from the hietoricoX and tnodern view points'*.^® The tnutiifd exchange o£ people* o£ Xn^.iEmB v;ho come to Germany and Gertnans who visit Zndia* Mie grm-.th o£ German tourist traffic in Indie* the efforts of Gisrajan pxiblishing houses to present to tho public more end more laoolcs lay Indian authors in Geraan tranalation* tha research wofk carried out Gf rman indologista at Gencan Universities nnd the ever-* widening activities of the Indo-Geriaan wOcicty at i/tuttgart and tho douth ^ia Institute at t^e University of HeidelMrg ail tiiese contriisutiona, ispripying from the lndo-Qer.umn intellectual encounter in Lhc most divora spheres* serve to placu the Xnoian imoge in Germany ona a broder basis end enhance it by adding to it ever nawer disssMsnsicns* 29 Xhe Indian in Germany contacted heir countrymen auch as Hashbehari Wosm or KalKlndranath Xagore* in order to propose to th«n a coordination of Indian and German politics* Inciden* tally* another Indian* Kaja .yama Kumar Te^ore* had spent many years in Germany and had published a ccwnuscrlpt in Sanskrit verse in irtsipsig in 1312* The work was called German Kavya* axid its author had dedicatad it to crown Prince vvilhalm 30 upon his return fxom Inula* *bid. p*47» 29. Ibid. p*49* 30* Liefer* Swaltar* Inuia and the Germans, p«285« 33 inuring Uit: uciiiunar on Xndology (from oeo* 6th to i3th«1956} ia iiajdros* istsximn utucients o£ Indian art* euch as P*J«Neaner and XiOre x'ermehr* the art !:iistoriant contrlbu ed to the cXari* Clcfction of bQst-we&t reX&tions in a dt;^cussion u»i.ch had be n voiuely knu'AU &ora lermehr stated that she regards ^he Virgin mrr^t in the visitors grox^ of! Kheims Cathedral as the antithesiiB of tlie cosmic daucer i^hivae* depicCted as the king o£ the daiiCfc} in uie arch ot flames of iaouihfcm liacdan bronze wcuipturtjs, t.hile the stone portraying tn& virgin animated* the Xauian bronse revealed eKt rior« ©y«i li^lic ospects, hoth in the. riyid dynaraica of tho dcncc#, denoting oUsraRl chriKje and oternal recu^rciicc> and in the nRilti-»liinbed arrangei ieiit# ouyjeii.tinsi the flow of poller from tho inner circle^*'31* In tioraiany and the rt st of Gernrnn speaking M>rld there are numerous places where Xndian art has found a home* The young&st of iht. fourteen nuseuins of Berlin* Whose name still invokes Prussia in its title of *stiftung Pxeussischer Kulturbesits" is the Aipartment of Indian art* founded in Berlin on Hew year's Day* 1963* This has grovm into the largest collection of InOo-^Asian works in the Gcrcuan speaking cultural world. ^^ 3U Ibid* p«170* J2* Ibid* p*170* 34 The E86«n exhibition of 2i^n£tansend Fohre Kunst ans indien (five fchoa-and years of Art trom Xndl«}«» Tha^: unique exliibition was held in the Kxv^p house* Villa itiugel* £r<;»n May to .^resident Kajeneira ^raiaad of India and jj'resident Theodor Heuss of West Gerinany uerc Joints ponsore of tlio ovcnt trfhich constituted a singular effort . t art patro- no'sjc by the Gcrftian industry* The cwyiouo catalogue lidth contri- butions by« atoong o£;hars« Erich« uo^^inger* then ^^resident of the Giirtoan Archaeologicd Institute in Berlin* who had conducted a prolonged grescarch into the archaeloyicel aspects of Mexanders Road to ZndiQ# and by Hwrioann Goets* is a miiK>r worlc of art* Conjient end finish, docunientatlon end illuotrations are coiiposed with scientific bldlll and an artivitlc sensitivity uorthy of the imme^j^e theuie*^^ In Hay 1957, the Visval:^arati University in :iantiniketan brought out a memorial aKSdress to conw»«aorate vhe 70th Birthday of the scientist and artist waiter JUiebenthal v^o had voluntered to serve his country In the World Wax Z* After the war he became interested in Quddhisw and studi€»d Pali, i^anskrit, Tibetan and Chinese* In 1933 he wrote his doctor's thesis on the subject of "i>atkarya a l>«^icted by His Buddhist ppj^onents** He lectured in auna until 1952 and then at the VisvaMiarati University on 33* Ibid* p*l72« 35 tho sino-Inalan relations* was a scholar fixst and then an artlbt. He was one of the few Oerman-speakiiHl scholars engaged in briages hetvemn the cuLltores o£ China and Inuia* 34 Aaothor Uurxaan ©j^w'txiate ..al^er i^aughaanior is tlje arti-t. His ijaintiiigs havo cBptared tho magic OiitS churm of uujrat» ii'lahurai.Wmra* Kashmir and uajastUan. 35 Geruian Orientalists were interested in Indian oiaiaic at an early dote. hXtqc.^ 'Shooi^r BerAf treated the subject in hio contrilAition on India* G*a«Fihk wrote a detailed chapter about inciian ^lusical Art# v/ol£gnng Portner, coniposes in the India-reaotx ta^lve-tone sy a/.em( ilew Delhi msie 19 57), An Austrian mueicologiot, Kax Geiger, who followed an invi*» tation tho i'liuiaraja of Patiala in 1938 and reiuained at the court of the i?unjal3i £iilch rulcjr for sttoie thim twenty years* ueiger ariariged India's national anthem to th& words of Kabindraxiath Cagore» Jana (*an« Mana •«• tor both strings and brasi'.« adding a Jazz orchestration for good (Oeesares* 34. p. i74t Ibid* p«17S« 36 Conversely^ Gennen music has att£9cted XndJLa*s oio^t aynamic conauctoc# the fttRtous who was iaom in Boisbay and atudled in Vienna under Hans bwaxowsky*^^ 4h»noJicr crtetive mediator between Jbast and West ic the Ocraian ecclesicist* Father Georye i?roicsch# a ntiUtrallsed Indian citizen unUer hi^ adapted nan^ o£ Qym Prsikeeh* He staaied folkflore and folic music and uos scholtx of liiadi language and XI. er«iturc* i^rok&ch co^'fwijmded a liinduat^ni music school and has cont^osod and written hytans in Hindi, 37 there is one of the shining exan|>le from th© field of architecture^ i.e» the '««st r^^an Erabassy in h&i Delhi's diplotaatic erclave of Chan^^ycpuri* whose construction was begun in 1956* In use since 1959# the represjentative building in its six acres of ground was d^sl^md % Jc^ann< a Krgim of kranicXurt* i.ith th. exception o£ the horizontal fluic^^linds and the aluminium window £r& es« all the material used in the construction is moi^tly Indian^ notably the distinctive grey marOle fro« Hacrane in kaja^than* 36« Maimer* SSiMS.^* pp»176«77« 37, Ibid, p. 176, 37 In thtas last let ua mention that the Ciandiii c@jnt«n£ry« «triich v«asi c«X^atea In Q^mmy from uctolser to uctober 1969« has contrliM^&d in larye measure towards laringli^ Zndla spirit of Gandhi before tht. piiblic* thereby enhancing uhe In JLan inki^e* 3B t^itiiin tiw tjcmmwoick of the Aifsmmma% a pi^zruimusat coauoitt. & «sx&aiu^ th«» poa&ibilitie^ o£ coiliibo- raULon un tin. oiit^jucal lev@JL» xhe joint co«iiudLtae at its meeting h id in him i^lhi* in 1974 recoobaended collaborations in the sectors* euch as University Education, Adult Education, urt end tne ^rit mj, of Cultiu-al iielegations and wport Grtx^s. regular exch uiye o£ t^a- dagofueij# Mcientists« Artistd, ..riters, mtiCB ana m^ic Groups* LxhiMtion and Films are received v This brief suxvf.y of Iado-V4e;^t Gcn/ian cultural relations a teRi>t to show th«t the German intrest in In-iia has never been restricted to a mUndted circle of specialists bi&t that the intellK^ctual class had b<^en i&oved ^ its lastiiag intere-^t Xn Zthdlnn cultiue and civilisation. 38* iciiok* Hermann* ou.cit* p*Sl* 39. Lit-fer, op.cit* pib307-308U 38 m Znao-Qeioian relations have not imen afJkected fey the dlvii^ion of Germany, India and GEK hnve cotnmon bonds of £zri0nashijt> andoutuai understertding going deep into lie past* Gctmn achoXars etarteS t^ing interest in XnOian calLtire in iBth c&ntury and Xndoloyy am&Xog^ as a igih discipline in Oen0a»y« India*» relations with gdr have b en infJurnced by her historical relatioris with tJnited Gfcxinany# German scholara like tochlcgel, Fran« Bop.* Kax mJl€>r and Frof.Freidrich teller [email protected] are t^elXkn^imn nosm^ in India*Indian culture influr-nced cjosidorebly mai^ personalities of Genier* literature and art like Herder,Gontbe and ^dhi3l£r.CX»lti?r«l contacts have been incrcasinr., in tlie mooLrn period* Insjien i^ersonalities li e Oandhi« Ta^ore^and liehru arci very pc^mlar and ri eutt of the Technical University, r)re8aen,RDR->the only country in Kurope to have dt nr so. liiterary and other workw by Indian stdtesmen and writers h&ve tx-en iranalated in Gill* In July, 1969# a sel ct^on of writinffi from C*&ubramaiva Bharti« bundtranandc^n vant^Bhagwati Char an Panigrahi* ^•H.Vastsyaywi Agneya* Cideirdoara Ra^j^nath en, Krishna Chandra, ^hamsher Bid^edur iaingh# Ya8hi^ial« Hamnath Avasthi etc* haa been pohlished in German. * 40 40* Joshi, Subradra, "Close Ties of Friend;L;hlp •• in tiinit vol* 12, NO* 5, September 14» 1969, p*35« 39 iiimil^Xyt Brechi is th@ Xove of the In;dan theatre* livcry year hlB pXsSfB are ijro<^ced An oil th© hig citios af In ia* tiarx and iingelB, vho have l>ecn owned in the ^oil oi thair Mrtht and on whose teaching the 8oc»to->cconoiidc ©ytitem hes bt cn iMiltt not only influcncea the Indian-freedom movfi.K^nt bat heve inspired In niuisboroblc persons and political movcront in Indie* 41 The firut scholar to cotR^er© iBucLuhXcfa witt C'liristianity was tlm Cii rman philosopher Kudolf lieiCcl of I^eipaig. who dovolopoa e maih^H for prwperly esteblishiny parellcs between the two relivjions# in his book '•Budaha end the christian Faith" he quoVe^ 30 pa^et. in the Nets: Te^tctnent act influenced 42 DuddBiiwt text, * The 2Sth anniversary of India's inde^enaen«e was a iipeclal occaaion for the UDk to pay wrJbute to the development of the friendly reiatians between, the two countries*Citizens of the uOi are well aware uf the fact that following the independence of India* a new in^ortant force fighting f«r peace and international friendship has Joined ^he family of nations* 41. Ibid. p. 35. 42* Chamanlal* f^i.cit.* p*64« 40 On the GMScQSion of this an. JLveraary^ every where In the G£it the syitv athy and undersv. ndLi^ of people for ZndJLa* and SMt people became cle^ar* Zn the big towns* a large ntioiber of interesting cultural events and observatilw of friendship with the Republic of India were arranged* Radio plays# television prograEBnea aad boolc were published.^^ There have betn aeveral atagea of cultural cooperation between India ^d the GIM since the foundatian o£ the i^iH in 1949» 'ShQ first years until 1959 had l>een characterised by an oliooat unilat^aral exchange o£ e/i^art-bles (4.nui.a cxiSSBubleo visitfciu ckia ^i/irti eaast.ujlcy diCi aot cuoio tu Xaaia) and by liu ^M-rfiUiialities duU culLuxel lac^ticui-lons or oryoniaatlutis* of each cuuuar^. -ueyiuiiii:^, in Jie ulM also tritid to acifiove jotuad e^-ects by studiiiy aeiegationa of workiny iAn^ i'lXiA inauiiUry« musicians and £>y organisiny touring ex^iibitiuns* i?he £rieiida^ Ul •^GOR-India "frien^hip Ties* in tirik vol, 15, No.9, October 1972« p.48* 44« Polivka,a* (ed), fepfisllst Coinpamitv and Indial Cultural ties, 41 A) ^nnt^mm of c^^ti^gfil POU^ ^yi ^Q^ft Xtinks between persons cMogaged on the cultu aX sectors o£ the bDH and Intiia have always h&en oi great ini^ortance for dieepinj the mtual understanding and consolidating the cultu al cooperation between the Gi:^ and India* It was alreadjf in the £i£tee8 that (jm %;rlter8 and Journalists visited Zndiaf in 19l>6# the inciters aodo tlhse and <:»tepi^an tiermXla visl.ed Zndia# in 1960t Georye larausa* president of the GDk association of journalists* came Inula* In 1961* the writer i'laxiralllan £»cheer« mesfccr of the ss^orld Pcace Ccu^icll end ihe Ccrtaan Pii.N«H;entre ^ast ond. V7est* tools pjsrt In the world Feace coagresi. held in InOia^ in the nmm year* film director KonradWoLf visited j't! wn Uie occassion of the ID ith analversary of KablndWH n th Tijgore* the Indologist J?rof*Dr*waiter Kuber and i>r*H* Kru«^gor from Berlin camci to Calcutta to take i>art in the 45 ceremonies* During the next year the following personalities among other persons* steQi'ed in India for study puzpos est painters and gri^hic artists like Bmrt Heller* xxris Kahane* Karl Erich Mueller, Ame Kxnk and Willi iJeubert* writers like rtilli Heinck* 4S« Ibid* p*34* 42 Hexi>ert Otto, Ruth Kraftt 2n«e Von Uangen heim and Kiohard (mritit* art hlbtorians Auch as Pro£*u«ins Mode and Prof, peter Feist* the musicologist and c(Mi|po8or prof* Ernst Hermann Meyer* the con|>oser Guide M&sanet%» the pianist and daiice es^ert iRrof.EtRebling* heads of publshin\j hout^es such as Fritas Gruner and J«Laab8« the chief restorer of the Haerkische i:>%i®eum in Berlin Xngo Timm* the stage director Frits Bennewttz# the stage set designer Frits Havmann and the scientist of theat*- rical art ^aethe auetiate .^eilur**^ Thi participation of GDR artist in international events organised in India also played an ict^^ortant role for the expansion of cultural links between India ond tiio GXB* In 1960« die Gm had great success when t^lng part in the International Theatre Architecture Ksdfiibition in N«w Delhi and Bofflb^* The UDR exhibition Architecture and Techai^es of QDIR theatre was covered very favourable by the Indian press* In 1961* the QDR took part* for the first time* in the Interns- tional esdbibition of Contennporary Art held in India and showed paintings of the artists otto Nagel* Bert Heller* Max Linger and Frits Oaehn* A Gim delegation of persons engaged in the film industry headed Konard Wolf took part in the 46* Ibid* p*43* 43 second International Film Fastlval o£ New oalhll Konard Wolf was awardad th« *sllv«r Lotua" for his In^ortant antifas- cist ^professor Mamlock*. In 1966, tha Zntarnatlunal Theatre InstitulM (ITI) organised an International colloquy, the foest'iSast inieatre In tiem Delhli a Gm delegation took part in this event. Kegulsrly, the GDR sends paintings of children to coo^ctltlons organised by XnOla to cihoose the loojiit beaatiful paliitiny of child en living all over tho world. 47 India* e Mlnlstxy of eZducatlon sii^ported the organisation of these friendship demonstration by sending Indian artists to the Qm» Special en|}ha6l8 mx^t be glven« attK^ng other things, to the Q{>peara:}ce of a well known dance and tnuslc ensantble Including artists such as the Jhaverl sisters* Damayanti Joshl and jualgudl Jayarcuaan whose performance were entiiuslastically 48 received by German audience* A waek of friendship held in Berlin, the ODK capital, from August, 12 to 19,1972 was the prelude for the central events, Xhe photo esdilbition *25 years of Ind«pen<3kint India* was Incufura ed by Max Sefrlii, pr' sldent of the Oei»san-«outhest 47. Ibid. p,43« 48. a£»*lndia Friendship Ties" in Llifl^. vol* 15, October, 8 1972, p. 48. 44 Asia socie ty o£ the GDfi at the ^rXin television Tower in the pre:ience o£ high personalities from the political life of the am end the head o£ the Consul a tG-<3eneral o£ the Eepublio of India* ^rabas^ador /ijmani. 49 ttkB new cenupo o£ culturo ot t^e Television Tof?er in he Q'iM c€^ital showed Indian feature and aoou»ent^cy i:Xlm» organised a tsodk bassaar with laaok^i aJaout India and translated iTOxlce b/ Indian authors ptiblished in the as well as the several lec cures given by ortists ^o oftcsn toured the Repub- lic of Indie have developed deep bonds «rith Indian people* a special esiSiibition "Indian Hiniatures* in the State stoseaum of Berlin with pieces lent Isy the Dresden btatc Haseum of Ethnology evoked special interest* £>r«Hhattacharya* Director of the Indian mseum at Calcutta* Spoke on the occassion of the opetilng ceretaoney« The cereraoney of the ciational Council of the Hationai front and the Glim-India coomittee on the eve of August 1S« const! ^ted the climex of the festive events in Berlin.'ilie cereaiuny look place in the House of Ministries with Dieter 49. Ibid. p«3e« 45 tieinz&a .^tat© secrsatary An.th® Mnlstyry o£ Cultvure ana Chairman of the GOK-lndia Coajinlttee* deliverifKi Ifestivai speecii. Many friends, of the K«yualic of Xndla gatherea at a recei)tJL<-n given ay the Jnai&n Ambassador in the evening of the aooiversarry day*^"^ iv) ftrt Kae^iibitloni Xn iialle couatry, an exhiaiti-.i aaw Xnciia" presci5te artists such os Kc.rl trich filler, Jurgen von t.aysKit ivilli ueubert and Doris Kehanc.The exhi- bition ®lnulauArt" ohoved v.orK© from the private ijrqpcrty of iiaXie# iV coljoijy on Indian Act chairec tyy tho ^eli-known scleatlet *.rof»acln2 Hode# «ho is Hnjv;ii in In£Iia for his research work on Bucljhisra met with much response* ^^ News pai>er ana other mass m^-Hii^ in the CaDH publishecl many articles and tecorta on Vcirious aspects of: India's devel<^« laaint* The "stirnme der radio station, for instance^broadh* cast virajaatic play "Cnitraf by KabinOtaneth xagore. Gm television acre«»»ed tite ft^ature film ''Upkar'** iWiiont^ the liaoat in|;>oruant publications were the brochure "India in tn« 5f 50. Ibid* p*38« 51, *GDk->India iriendsiiip Ties" in op.cit, p,38. 46 as v.«ll as a spccial nu J> r of the "BaAdhiet Yearly* of the Buddhist centre at Other high points in the relations between the tw: countries were a visit of a <3eXegation of the /Ul-Imlla GXM Friendshii> ^oci< ty ana a colloquy on the subject* "India in the boria of today and tomorrow* held at the Humisoldt University, ^he people of the lu^ ava led themselves of this opi.ortunit^ to deal intensively wltlJ the ..jrobleins Zndia has to foe taken, • 3?he ijiM aa,j© use of several ii%)orteiit anniversaries in order to elaJSorate the personality end works of outstai^din® ZnuXan ^.oets and thinkers, un the Kalidas«oYear(19S6)t hi indologist A-rof.fe.nubenCBerlin) publi&fhed a rB^inoiraph on Kalidasa, A nun# r of festive tit!^ •tings ana events were orga- nised to celebrate U)e 100 the anniversary of ^abindranath Tagore, i^e publi8hi.^y house 4^adetai«-Verlag t^e cere«aonial speech *lhe iR^ortance of Ra.jindr«nath Tasore for the world** delivered by Prof«w,ku^en at the Kammerspiele of Be rlin on May 9* 1961 ami at the plenary ses»ion of the JPeutsche AkadAoalc dor v«is;>ensG^aftttn in Berlin, Zn 1963t sever:>l lecttires were held and a festive meeting was organised at the Huinboldt 52, Zbid, p,9&. 47 University o£ Berlin on the occasion o£ the 100th anniversary of the Bengali philosopher ai^ reli^itwii reformer Viirekanada« in X969« the Oemaan ^admny ot sciences Organised a two*day colloc|uy entitled Traditions and it^rogreso in the Concea^orary India within the framewoxlc ot national events in the G£ii in honour o£ the 100 th anniversary o£ Ms^atma uandhi* The Indian exuiibition of Mahatina (iandhi 1869<»1969 i^as shotm in the Gim?^ QJM citisens personally acquainted th^i^elves with the Indian culture as loany Indian persons engi^cd on the cultural sector visited the Guu* Indian artists and enSQnil>le& gave guest ijerformances* Indian exixibitions cmd in .ornc.tijnal e^iibitions with Indian participation were sh^wn in the ujMm 'I'he personal e:^^rlonce gained by Indian artists uuring tieir stay in ^he concribuLed to deepening tlieir undijrstai.ding o£ the cultural situation in the om^ »;hat they had learned aJ»out thL social reality in the uia was reflected quite often in heir works* 9oets and writers visiting the am vere Hulk Raj Anrnd, Krishaa Chandra* £«ajjad zaheer* ^rt Bay* Mohan a«ikesh« K»H«6\ibr«inaniaRi and H»H,Bachehan«other visitors Included the theatrical workers Balwant Gargi* Kabib Tanveer* £lauraliim Mkasi* Utpal Datt^ t»lioia)9hu Mitrsf Khanolkar* vijay Mc^ta# S3« polivka* oi>»cit*> p*38« S4. Ibid* P.40, 48 ..he £ilm workers fiatyjit G*A9garw«l« sunil iXitt and G«V,Bijur# Jie painters K«K,Hebb«r, NllchU Biswas^ VijiOT iaonl, K.Korkiirtil and BimaX Das oupta*^^ Cul ural cooperation has "bt-a n successfully eaRtmnflea in;.ensi£iad« ^ua it %ras possible to promote imtual imderstaisdlng and friendship betireen the peoples of the two countries and to achieve decisive progress in develc^in^ political relations* furthemK>i:@« tlie progressive social forces in 2ndia hcv& been su^^io.ted and encouraged in Jieir struy.. lo 4k>r peace* deinocracy and social xirugress In their country. ss ijince contacts between the t^o countriea have ed coHwinusously on the basis o£ the Joint tradition of the anti«i{i3|;>erialiBt struy^le md acjreem&nt on essentirol (Questions of inteanational politics* 1* Cultural institutes in India* named I4ax Muller Bhavaai* after' the greatest German Indologist* which have alrea^ becaone centres of contact between India and Uersfian CRiltare* 2* A broad stream of students* scholarship holders* lecturers and scientists from another link between India and Germany which 55* Ibid* p«40* 56* Ibid* p*41* 49 iB festerad Ja^ tlM Qexm&a Aoadioiiic £xchang« •ervic«» th« Alvxanaer von meSboldt Foun^at on ana the £»outh /uiia Znstitutv In H®id«l23org« S3ie i^outh Asia institute in j^artioilar* orga- nised along the most moaexn lines* is developing into a centre where outstandixm scholars study all ai^eots o£ Zndi^ li£e 57 and t^hiiosopliy* 3» The Znuian Institute of TedmoXogy in Hadrae* has near a^ut 2000 Zndian students and have 40 (Si.raian leotureses. 4» uTi i'ebrurtry 27»19Z& the Onion of Friend® of Xndia vas founded in Berlin for the i^readingof knuwit^dge aKut India. i^romlaeiii; Xn^ojuan aud U^ruans joined the Union(anung th«n atei^pakaraman i^illai* IlailCf Bh*DBta# At^ral RecSce aermartn von etaden and J4«Viured<) for vihich th€^ had high hopes• The new organlsatiotis firat public activity wa. a reci^tion of ^ril 13th«19l8 in honour of Raja :iahendra pratap* *Marcopolo of the 5» ImUan centre ini'laaich* was established in 1320* 6» Indian Inf^tiLute* founded in 1929 in cooperation with the Taraknath l>as Foundation of Skm lfork«i:he head of tifiis cultural centxe* which quickly became a unique meeting place of Gcrmaru^ and Indians* was the unforgettable or«Fraiw Their- f elder l3udnritft»0.P*"Soiiie aspects of Indo^erman relations• in COMHisrce vol* 118* No,3034« Bombay# Jtine 28«1969« p«27* X««ifer« OD^cit* p»2eS» S9« lbid« P.29U JO 7* At the begin ing o£ 19Si the <*Oemiofi«Zndle society* was estadftlished in Stuttgart^ under the chaixmannhij^ of the Kultimlnister* in order to further eulturai. and economic fin relations between Germany and XmileLm Cen^o of Xndiology« established in Ha«Biburg# tdiere ^tehkonow lectured from 1914. His professorship there may serve to show the Xnternatiu.ial character of Xnuian research* itollowlog chiristian Lausen^Konow ^^ras the Scandinavian to acclaim in ueriitany Xxidolo^y* UalLcr w chubrlrr^ ant« X.ydwn'ng 'Isdorf were scholars who later contri'cuted to >iaM.»aru's intei*n; tional recognition as a centre of Indian studies* k>rofes&cr Msdor£# one of the renewed Ue man bansJwrit scholars did mch for both Xndolocjy and literary sci' nee i^y iiia v^oric on Xndo-^jVr-'nan cultural relations*®^ 9* The Zndo-^iteroiaa aociety* which is represented near about 40 toims in the Federal Ri^ublic with a^ore than 4000 neaibers on its roll# it is the largest inter*stat« friendship associa* tion in West Germany* in the words of its firist chalraian« Minister or«L,C»Adalbert i^eifris* "Tile indo-Oerman society has for ne«rly tmsity /ears now been steadily esqpanding its activities in the eoono>:i.c# technical»col tor al« educational and political fields as well as in th& closer f|»here of human relationship! 62 "SSI Chainanlalm Germany Bebom* p.66# 61* walter« SB»£4S*# P*12G» 62. 2io1c*Hermann» lUi 9flf ^Y ffflff^ ^ P*^'* 51 10* German &>outh<»£«st Asia 2iociety# of the GZ3R cMitablished in BerXic* the C£^itaX of the Cerirtan Doaocratio Republic* lUQd another ie All Zndia-am FrictDdship society.^^ If any other criterian were needed to measure the intensity of their relations in the cultural and intellectual «jjhere8« then one could say it was the a .peal whicb 100th birthday has had in the federal Eatpublic of Germany* It is well known Umt Federal Chancellor Kl^&iager wes Chairman of the Uandai COimiittee* the aim of which was the spread kno%«ledge o£ Gandii's works and his moral and political philosoi/hy to all auctions of tlie Gerr.iaa peo^^le and to underline th^ir iui.-ortance to In^a ona the whole world.^ 63m "GDR-lndia Friendship Ties" in Link. s^^qI^ p«48, 64* Dttfskwits* GflF* "Some ax^ects of Indo-Oerroan relations'* in gpaiBfyg^^ mAffiM* 52 Chapter «> 11 One of the Oirsctive principles of State Follcy In th© Constitution of India requires the State to endeavour to proniote International peace and security* maintain just and honourea»le relations l>etii«en nations^ and to foater respect for International law and treaty ohllfatlona* Xa the light of this Directive* the conduct of India's external relations since Independence ha^^ been governed the pursuit of an Independent foreign policy avoiding all India's rt^latlons with both West and fiast Germany developed only after the World War XZ» Early in 1950s Prime Minister Nehru showed concern with the problems of post-war Germany* sevexal years before the two countries had established econ.>mic connections that became their main link* Ooverisnent lodiat Reference Annual* i970« p«S39, 5J o£ India identified t le artificial brodar of waat and Saat Qexn&w^y and the division of fiariin as potential aourcas o£ sreat pOv^er friction and exerted the slim influence that India poi^&esfted on £urqpean affairu always in behalf of a Kuropean detente based on a Geru»an peace txeaty acceptable to all sides* )vhen crises centred on G&rmai^ or specially Berlin^ Sjehru was usually reluctant to offer advice on possible terous for a settlement* ^t officially and in principle he supported the idea of German re«unification by peaceful means* as several Joint cK>nu(!uniques showed* India e^ctenaed full diplOi^atic recognitions only to the FederalKepuUic of Gertneiiy* 2 Curing the World liiar Kumar Mcihandra i^rat8|>* the son of He^a Hathras and adopted son of the Haharaja of Marnmng occupied a special position anoong the Indian exiled politicians in Germany* Having arrived in Berlin from Switzerland on February 10th« 1915 under the name of Mohanvaad Fir« he declared his desire to work for Gerni&ny in order to help India and was received in a private audience by Wilhelm II« By ^ril 10th of the same year« Pratep was setting out on an adventurous 2* Heimsath* Charles H. St ^urjit Mansinghi A Diulomatic t^istory of Modern Indi^ pp.4e5-86,. 54 trip to Afghanistttn* by ManlAiMi a«riik«tiillttli» Legation oeertttary utto Mtm r Von iientlng and a saMUil BtmtU 'm&jt s'c^echi.il Kabul on uetolier 2nd« 19 IS* M^andr* hfmSmd Ms H4ibli3iai.ah « parsonal latter firoia tha Kaiser* ami von mntlm anot^ier tram tha Qfsxm&n ch&ac Guilte a f^ ttell-knjwn Indian politicloins ana Journaliats were idinc thm yeara of thf tJreat war in in larry to wurlt from there, for tht nitration of their country* Mthough tha not^ <1 scholar* rari^ndth Uost settled in the Unitad ^tatasi iMt he* too* vtk» h. coiain^ known in Garioaay a» an ai^la politi* cia.'i a»u later auide a ^tu^s* of Xndo~u«raiaa cultural and political relational* Bhupandranath Dutta* VivolKnanda'a youngifeir ^oUi&c who %)yroached cAQdara politics erooi tha He9t,liaa i^uinu of view* wasi one of th« moi^t atriklfiQ Indian peraooalitiaa in u^rioany in thosa daya* Another toaaibar of Indian frou^^ in Oarmany was Vivandranuth Chattopadhyaya* tha 3* Iteifar* waltarf l^aiy ftlH^,. Qgymf^g* pp* 283-64* 55 brother o£ aarojlni pralsrihi^ar Biren£r«nath Dos Gxtptm* M«Acharya* A^Rammn PiXlai« ^hivdev tiingh Ahluvalia and HardayaX stayed on In Germany when the var was ovar* "Hiey made Germany their l»ase to £ight for Xndia*9 future*^ After the world War X« &ome o£ the Berlin Indians auccuoted to the lure o£ extreoiam* Virendrancth Chattopadhigrasra was one of thera* After 1923^ one of the first agenta for the COimisintern in India was Pr.Uax^adhar :4»AdhiUari« ^ho had studied in Berlin andjoined the Coouauniat Party of. Germany* Adhikari aet the Indian Coasruniut Party on a sharp pro* Ctomintern cour&e» For some tiaie# Genoan and Indian Co. inaniata maintained their official collalx;)ration* Caring the korld kiar 110 india*e e^cttreioe loft were forced to revise their views aJdout Gennan politics aiitmr the conclusion of the Stalin Hitler ^act» On i^iovember 14th* 1927 Motilal Sehsu and his son« JawaharlaX Nehru« had 30ught to find out in what ways Germany would ISHS willing to assist the Indian Congress* From Germany the two travelled on to Mascow« after deciding to •stahliah in Berlin the first Indian information Imurasn outside Inaia* The bureau Oi^>ened on February 25th« 1929 and 4* Ibid* pp* 284*85* d6 was heaa«d NaRd»iar md Viresikdranath CbaittopdtiBiyayit, It the ambitxon of Like Kaja HahenQra JPrat^* Jul&hash Chanaro Bose also hrd the cherisiaa of a popular reirolutionary* ^'ilien h© decided in the {;orld i^ar IX that India iifuat lac liboraced force* ho cair»o to uer.(.a«y to sedk assiatance* rfaving preached uncofli^romiBxn,., fight against the iiritish in IrwSia* he now carried that spirit afe oed»® on Februiwry 28th* 1942 the Metaji addret-sscd his declaration of war to Great Hritain over the Gerroan radio* It WB3 a curious situationi Bose wa^ permitted to uiadce 5. Ibid* p. 291. 6. Ibid. p.297. 57 defacto proelaoMitions in tho style oi a head o£ atate^ a mignty military stata with a well developed itthrar • cult allowed soldiers wearing its uniform to swear allegiance to its own head o£ sta.e« as well as to the exiled leader of another country.^ When -lie war was over# many Indians watched Cyennany* s plight with syopathy* Among the voices pleading in the Indian presa for fair treatment of the defeated nation was thct of J«C«Kumerflppa who wrote an article in the uandbi Journal* Harijan (of f^riX 20th, 1947), calling on the occupation powers to put a atop to the disinantllng of German industrial objects, which he described as a (iK>ral lepa on the part of the: 'Victors* Xn 194B# a German lanyuai^e docuroeat Appeared in Cialcutta* i.ts author, ueaoy Kmaar Jarkor, intended his manuscript as a oies&aye of iooral sup^.ort from one suf'fcriny country to another* 7. Ibid. p. 298, B« Xbid, p«300* d8 hub of the cold War n Europe was the German questioitf no other issue so frequently threatened to erupt Into conflict betwe^^n the two great powers. Diehru's declamations against the climate of war and hia appeals to the leaders of the great powers to resolve their differences peQce£ully# were as respon- sive to the crises In Central Europe as they were to the arms racei. althou^i liehru r^^frained fr<^ i^roffering mediatory solu* tiuHS to the former as he did for the latter* India*s general predilection on the oerinan question was in favour of any sti^ which wouia or eat a "Climate of Peace"« a move away from prevailing hostility* its st^port coxild be assumed for ai^ of the ijroi>Oijalo made from time to time wiiich envisaged a general disengagenent in Europe* whcth^ r through a nonaggress- ion pact between the Warsaw Pact and *1 The Indian Government held that the tension in Central £urope was greatly increased by the incor^^oration of West 9* Heimsath* Cnarles H.«i4»urjit Mansinght A Diplomatic Hi torv of Modern India, p.432* 59 Gcxinany into Na70 in 1954 and of Eaat Qermai^ into th« Marsaw ir'act created in 195S* "The major problamsof Eurqpa •tkf^ as l^e very iii|>ortant problem o£ Germany*** said Hehxu* *would )»e much nearer solution if foreign forces of bothsides were remoired'** 2ievertheless« he did not seriously urge a dissolution of H/kTO or the Warsair Pact*anticXpating no doubt* the futility of such a suggestion^and his criticism of those two alliances was inuch les^ bitter than that of ^KATO or ClnTO* Instead* Znaia*s self ap^^ointed tasK during the 19S0's was to persuade the leaders of the Ub and the of the non aggre* esive intentions of the other* It is only by looking bacX over t^e iiovict a^.ce^tance of a stalemate in Berlin in 1949 and in 1961 and Western acquiescene in continued consnunii^t control in fiastern burope that the in entions of both Hoscow and Vfashington to avoid an actual conflict becomes obviousi for most of the period under review whe risH of another war beginning in Germany was a real one* The German problem was a legacy of the break down of the war^tima alliance against thct country and* briefly* had three aspeetsithe (;^estion of reunification* the definition of Germany's eastern and southern frontiersi and the continued existence of West Berlin as a freely accefsible island of the Federal surrounded by fiast German terri ory,^ 10. Zbid* p.433* oO Xndia« whose vecurlty wa.. unaifect«4 by the 8is« or strength o£ Germany* wa» willing to aubacrllMi to the idea of German reunification* In eonsnuniques issued with leaders of the Federal Hcqpublic^ India e^ressed the hope that "the parties concerned will reach an early agreement about the peaceful unification of the two parts of Germany in accordance with the wishes of the German pe ople* and with#**due regard to the security requirements of Germany and other countries in Surope"* However* Netiru saw that in the alMence of conditions conduciire to a general se'ctletoent and with the crystalisation of different systems in J:m two part® of Geraac^ it seemed unlikely that reunification c^ld place on tern» acc^table to l»oth sides, Xn I960 and 1961 he e3i>re80ed his opinion that while G.rman unification seemed to be the normal and desirable development* *at .he present {noment ther& are two countries* and two Governments (in Germany)••• they are a fact of geography. and to ignore the exiatenceof one of thcHQ or either o£ them is Just to shut your eyes to fact"«^^ Xet* contrary to the iniplications of this ^pronouncement India did not consummate its acceptance of the division of 11. Ibid, p,433. 61 Uexwiy hy SoKtmX rticognition o£ the Q»D*ft« Instead* and as an exception to its general practice of equal legal treatment to the two halves of the country dlsmeiabered Taiy post war axlgen* India established diplomatic relations with the Federal K€(public as early as Secczsb^ 1949« but had not qpened even consttlor relations with the UUR u^.to 1969• Frequently criti- cised by Indian coaaminists for ;>tich discrimination a^ -'— Sai.t Geraiany* i^etjra eaq^laiaed that he was reluctant to ai^ otep Uiat wofuld finalize the ^^artit- on of Germany or come in fihe way of eventual reunification* He reasoned that it had oeen eoi^y to c;?xiVert Xndia*s niilltary loission in v»est Gtrniacv« wiiich had been closely associated with the niilltary iolssion o£ the Webtem allie^a* into a div^loiaatic mission ..t dOimt whereas Uiere was no such continuity of relationship, with Oermany* There was* thu9# an in^lied rtscognitlon of th« 12 Federal Kqpublic as the "successor'* German state* India did not subscribe to the view that the eastern and south-eastern borders of Qerioany should be defined alongthe lines of the po&t^ar settlement and the Oder-Neiisstt line be universally endorsed* Standing outside the Mas em alliance* la. fiorjlt Mansin^hi yo^cit^ p*4M« 62 India was not obliged to mvpgort the Federal Riipul»lic*0 claim that the le^al boundaries of Germany were those of 1937* Aft India* mm it« while West Gertr.any was pledfed to a revision of frontier & between East Oerman^ and polond and Czedh0Bl0Vekla4 Bonn's assurances not to se^ modification of own borders* or reanification of Oerraan^# by force* were open to question* East iiuropoan fears of a revanchist UGBt Germany* reamed* was a major hurdle to any general settlement in surope* and the Whole atmosphere* as i^ehru ^ut it* was "vitiated by the uncertainty in regard to frontiers^* He added* **if any thing is certain* it is this* that any af-tenpts to change that (Gcnnan> frontier will load to war* I em surprised* therefore* that tliis laa'cter should left 13 vague and in the air"«* Of all the aspects of the German problem Berlin question was the inoat ii(|>onderable* At no time did the Indian Government lend supijort to the soviet objective of eliminating the Western presence in Berlin* but neither did it subscribe fully to the Western position* The 19S8«>S9 Soviet proposal for a peace treaty with Qermany* which included the proposal of Berlin as a "free city"* were circulated to all countries formerly at war with Germany* and they sounded superficially attractive to Indian ears* Hie iioviet proposals of demilitarisation of Germany * 13* Ibid* P.43S* 63 free international access to Berlin and the Maintenance of West Berlin's special social and economic system were velcomed hy India* Howerer« New l>elhi was nqually r&e^ to give raoral support to Mayor ii«illy Brandt of west Berlin* i^en he made a brief visit in early 1959 to esqplain the iniplications of the Soviet proposal, The Western powers predictably rejected the soviet drafttreaty* but the Khrussheheve Eisenhower talks of 19S9 held out proml£ie of taore c As tho crisis cooled ^lom with Berlin* then pitysically divided by a wall* I3ehru*s views remained aj^iguous* but his government tried to re»establish its neutrality in the £&8t •» West debate on Germany* From the joint cotmnunlQue issued at the end of Nehru's visit to the Vui^H in s^tember 1961 it is clear that Indian anc^ Soviet views did not coincide on Germany* beyond ei^reiBslng thti desirability of a peaceful solution agreable to all the parties concernedl Kehru only*noted the views ex^res^ed by Chairman Khuruschchev^but was not persuaded by them* After vacillating on the main points of an old West* ern Soviet dispute ana thus virtually inviting renewed press* ures from both sides* the Indian govermoent resumed its more 14* Ibid* P.4M* 64 Accuatomed nonaXign«d position o£ Oermany* Xn s^temtoer 1964 Fr«si(l«iit Badh^lshAQan In Moscow reiterated Nehru's stand of September 196l« until 1968 it had not been altered,^^ Relations w^^ Ff^^f^ o^ l^olitical relations between India and West«Oermany based on mutual understanding* form the foundation of their imtual relations in all fields* 'rhis understanding for each other's es£»ential interests runs as a tliread through 20 years of indo* German political dialogue* Outstandlnt) occassi JHS during that period have beeni 1* She ofi:icial vit^it of late PriouB Hini&ter tiehru to Oermar^ as early as 19S6I 2* The several visits to the Federal Hepubllc of Germanqr W Dr*Hadhakrishnan« a former Vice-president and President and a highly esteemed ;icholar| tue ir'eace IPrise awarded to him. by the Oertnan Book Traders Association and ti^te friendship which develop- ed between nim and President Heossf 3* "ShGi State visit to India by the German Federal President Heinrich JLubke in the aututnn of 1962 when the Indian nation was going through a critical i^hase due to Xndo-^ina wariand 15. Ibid. p«437» 65 4« The first official visit to India lay German Federal Chancellor in the autumn of 19671 and fortunately Dr.Klesinger was friend and had a good knowledge of India. ^^ Znola was» one of the first countries to establish dlplo* matic relations with the FedtJral R^ubllc of Genuany shortly after it came into existence* The cordial welcome given to the Federal Chancellor in India and the fsuitful talks w ich he had« csjpecially with the Prime Minister* were of considerable heJ^ in strengthening the mutual relations* Both Governments decided on that occasion to hold regular hich level exchange to harnK^nise their views on ia|>ortant questions* They were convinved that these would not only pro^Rote bilateral relations but also contriimte to Interr national understanding and coofieration* In this a^irit were h Id Initial Indo«Ger.aan consultations in jiarch 1969* t^en the consultations were opened*Q.F.IXickwitz* point^ut that the Germans attach great in^ortance to a periodic exchange of views with their Indian friends* first because India* the nout populous democracy in tae world* on account of her poten* tial and moral standing*plays a prominent part in the intern** tional cooperation towards solving disputesi and second* 16* Duckwirs* G*F*"i>oiBe aspects of Indo«<>erman relations'* in coiatnarce. volallS* No.3024, aorabay* June 28*1969* p*28. * Gertnan Ambassador in New Delhi at that time and leader of the German delegation during these talk* 66 becaut^e they €«8l united in friendship with India through bonds o£ succesafioil cooperation in many fields* The cordial and frank talks they had in Delhi have strengthened their conviction that there was a gre. t future ahead of Zndo« The Zndo-><3ernian exchange of state visits in 1956* O^putg^ Prime rdnister Fran* Blucher travelling to India* and £«ehru touring in Oernteny« signelled tlHi beginning of a series of econontic assistance and investment ventures araanating from the recently recovered Oeroian industrial scxnotu sem The deci* cion o£ tho 0onn government to undertailce niajor aid projects in India mai:ked Geruiaay*s as3u:iption of responsibility in world econonac affairs and demonstrated its rec»>giiitioii of India's economic future as i(nj,>ortont to the interes & oi mn^oaamnlat countries* In a taore short-term calculation German economic aid stood as an inducement to pxeclude a dejure recognition by any underdeveloped country of the East Geman governmentt no external aussistance was granted to a country hev ng diplo* fflatic relations with the German Democratic Republic. In 17. Ibid. p. 28. 67 addition* American pressure on Bonn to incr«as« its as&istft* nee to underdavelc^ed c^ntries was continuously mounting in the latter 191^*6 and early 1960* s# and tlie result showea tjp the Cerraany's contribution under the dd India Consortium, of uiiich it vat a charter DMHid>er«Oeriiian industrialist^ simultaneously* were extending into foreign areas the invest- ment surge by wnich the Federal U^ublic had reached new heights of prosperity* and they concentrated in India an in%>ortant shaxe of t.ieir total involvattent in the under* uevelopcd countries* As a result* 2udo-Gerutan ixade increased r^jidly* until by the 1960*8 Germany became one of the chief sources of s«p;jly for India after the Uii end the OK* esq^ort to Gerinaiiy occupied a mch lower position in the total of Indian goods sold aiaroad* 1.8 January 1st* 1951 iu a date of special gratification to Uemum friends of India* un that day the indJan Union* formally ceased to be at war with Germany* It was perhaps the traditional friendship ti-at insi^ired the ImJXan delegation* under i^acs*Vijayalidcshatni Fandit to place proposal for the solution of the Gerraan question before the United Nations* 19 18* Heimsath* Charles H fitSurlit Mansinghi f Diplomatic 19* Leifer* waluer* India and the Germans. p*299« 68 £>hortly before the •stabllshment o£ dliplomatic relations between India and the Federal k^public o£ Germany^ a band o£ Oenoan volunteers led prince Loivenstein occupied the North-fiea Island o£ uelgolend* These young ttKjn had taken Gandhi ae taelr model In their struggle.^ To whet extent Xndo-^erman contacts pcrnusated even the political sphere Is evidenced the fact thet ZncUen esqperts studied the basic laif of the Federal R<^ublic to find models for tnelr own constitutions* one can see tho influence of the Geraoan constitution In the new tenet of the prean^le utating thc.t human dignity is invioluMe* On tho practical @ide« professor Frits Berber of mnich« one of the first Qerraan esq^urts in international wat&r 1LW« acted for several years as the Xuwian government's aavisor on international law, 21 bince th' establishment of diplomatic relations between th© two countries* there have been several official visits to India like those of Vice-Chancellor aiucHer(from January loth to 20th# 1956) ot^ Foreign Minister Von ^^rentano (on March 28th & 29th , 1957 and from February 11th to 24th I960) • To this list must be added parliamentary delegations of both slues and visits by other ministers^ like Economic 20. Ibid* p. 300* 21, Xbid, p,300» 69 Minister Erhard*» in 1958» The most itqportant event in that res,ject# however* woo the etav.e visit to Inc'la by president Heinrich LulSke between Noveniber 26th and Deceaiber Sth«1962« Indian official visitors to the Federal Republic included prime Minister Wehru (from July I3th to l7th, 1956) and Vice-president Uad^iekrishnan (from July leth to 25th# 1959 and October 2Qth to 24th«1961)« Siehru's stopover in Ousseldorf in 1955* and I'rime mnister iihashtri'e in FreJiUeCurt in 1965 should here he uientioned to euiihaslsse the exLent o£ unofi icial visits by :ii9l4 officials* iresiu^ nt i^arv^alli Kcdhakriehnan in perticulor paid several unofficial visits to Gerraany, where he was al'^.ays more than welcomed* Xn 1955 he was granted the most distinugished Order Pro Le Xlferit* in IDS© tlie Goothe Plaque was bestowed on hiiD* and in October 1961 he receivi^ the Peace ir'rise of tiie Geruian iioolc Trade* £»pecial intellectual ties United Radliolcrishnan and Germany* s presidentf Theodor Heoss* When Heu88 was invited tu India ^ the Indian pailo8ophor«>states» man in i960* he accepted uhe invilation on the ^pot* To round off the list of German hommrs for Indian public figures* l4rs*Vijyalak:shami Panuit* who was the first recipient of Gottingen University's ijorothea-^chloeer i4edal in 195&*^^ 22* Ibid* /o Some oth r prominent visitors from Xndia to the Federal Republic of GermaiQT ^^ listed belowt I9SS • minister of Education^ Maulana ^^bulkalom 1960 •• Minister of Transxjort# Raj Baliadur. Finance Minister^ mrarji Desai* «* prime Hiniater« Jaifaliarlal Uelmi and * Mrs* Indira Gandhi* 1965 - Caief i'iinister of n^k'^^ 1966 - Minister of Steel and id^nes, eanjiva Reddi 1967 « Finance Minister* mrarji i>esai - fransyort I'iiniater* 1968 - iiabour i^iinister, 1971 • Foreign i^inister* iaarciar Luraran £»ingh» 1971 - Dinesh Singh, M.P. •• i-'rime Mniater, l^s* Indira Gatidhi* Othei: prcHsiaent German visitors to India werei 1959 The then Ooverning msfor of iierlin, Jft/illy Brandt 1961 • federal Finance Minister* tailhelmi • Federal Minister, Von Mcrkate 1963 • Federal i^inister for Economic Col labor atiuiis#w«Scheel 1964 - Federal 24inister for Science and Hesearch, Lens - The Federal Chaiicallor, Kiesinger Federal Minister for Nutrition and Agriculture, Schwars 71 1966 F«der«l Minister for ficonoialG Co^eratloiu W«Sch««l 1967 ?«der«I Minister for mtrition and Agriculture* Hottcherl* 1970 « Jr'ecieral Minister for Foxeiyn M^oSx&t i'.&cheei* 1973 • Federal Minister for Econooiic Cooperation«:^pler« hftet the Berlin blockade of 194d-49 the most serious crisis occured in the sunraer of 196whmi khruschev announced a dead line for negotiating a German peace tTvaty»Secaute the vital Interests of both alliances were involved and mili- tary preparations acconipanied diplomatic moves* and because there was a personal confrontation of wills between Klirushchev and KenneOv* the 1961 crisis tectured at the edge of the war* fhis danger «iVOlced from Nehru* for the first time* in August* 1961* long stGtements in parliament on the German question as 23 a whole and the then current Berlin crisis.'^ Nehru's statements contained no m&nticn of the Berlin Wall or any sya|;>athetlc reference to the flow of refugees from Bast Germai^, Indicating the care he took to avoid criticising the GW, and Soviet governments for their handling of territory and populations under their control* Instead he spoke about the changed circumstances since the arrangements had been made for allied occupation of Germany and Berlin in 23* &»urjit Hensinght p*436^ 82 X944*45 and said that in view o£ those changos# *the Sovi«t and Sast Germany authorities could very wall argue that th«y have the right to regula e end control the nsDvement from tha East Berlin .irea to tdie West Berlin area". 24 On the issue o£ (fastern claim transit rights to West Berlin* a vital question in the 1961 crisis* Neliru was equi- vocal. At first he refrained from esq^res&ing any opinion about the legal issues involved bu offered iiis view* "that the fullest facilities for access to West i:ierlin suould be givcn*.Since any interference with access created an ascalation of fears on both sides* i^e iru beliuv&d tliat it "could be made clear that whatever else hippens tiiis access to West iicrlin will remain"* but later* on august 23* in rc^onse to a question in the tiajya onoha* he dealt nvsre fully with the arrangements that had been made in Berlin since 1944. SSehru remarked that the four power comnunxque of January 20*1949* "did not evoke any right of accest^ l»ut merely mentioned 'obligation* on the part of occupation authorities to take the necessary m. aaures *each in its own sone*. Basing his remarks on a brief pr«^«F> red by the External Affairs Ministry* he asserted that the Western powers* access to Berlin was derived from verbal agreement and aau developed "not a& a right but as a 24* Ibid* p.436. 73 2S Concession frcm the i»ovict •uthorltles*'* India's policy towards the FederaX K^ublic of Germany haa often been subject to fluctuationa of various kinds* kt the ^elgradft conforenca o£ non-aligned countries in September i96i Nehru* 0 meditations on a two state thesis caused aiuch siann. ^gry Indians were those who know Germany best* Indian students end Indians eoi^lc^ed in German factories* Numerous ietter to the press ej^res&ed their firm rejection of such viows* On suc^ letter Cc^me to Die i^slt fra^n P«K*Haina« an Indian stucient* in Oxford who was staying in Herlii»* Schlaciitcnsee at that time published on £Jepte;v.ber I9th^ his letter {^aidi 26 "Ho one of any undesrstanding of history would ever agree to talk eJaout a "free city of Berlin* or two eepsrate German states* Genna;^ is one nation and imist reiiiain one* I am not a Oerman* bat Geroiax^ and her ^;roblein3 rnov® me as if it were fiy country"* It should haweVi-r, Ibt stated th:'t Indie never let herself be swaged to any furtiirr agt-ravation of the Gemuui problem* 2•7 The golitical Ifflaoe of Inoia in Sociologically and politically* tlie im.ige of the India projected on th« German mind is roughly Characterised hy the following features!^® 25* Ibid* p#4l7, 26* LEIFER. OP>CLT. N.AOS, 27* Ibid* 28. 2ioktH«maiil Men will one dav reach the point* pp*44.4S* 74 castes and sub-castes feudalism and proletarianism the 9r6atest e3%>eriD(ient in d^aoeracy modern t«MAinica2. revolution policy of non-interference principle o£ non-violence neutrality between EaiJt and Uest"* The viceChancellor Scheel vi&ited India in February 1970» fruitful bilateral talks were held between Xndia and the FKG in June 1970• A Parliamentary delegation led by the iipeeker of the Gernian Bundestag* visited India in liove^or 1970* As a metnber of the *Ald Xnaia consortivm** the FtjQ played a major role in assisting India's development efforts,^® Indo-»u«rman relations constitute the finest pUenoiaenon in the life of two great peoples* The manner in which Germans have approached India aas been romantic and businesslike* During the liberation fight it was passionately symiiPtnetic* and in the age of development aid cooperative? chen again sceptical and in the field of politics quite ofLen sobering*Might not tuat relationship grow into one of simple friendship which need not shirk from plain speaking? lndo«Germ^ ties are already dose enough to make both sides strive for the kind of cooperation that might serve as a model* 30 29* i^ndiat A Reference Annual* 1971-72, p*S32* 30* op.cit, p*3O0* 75 ftm poiidLcal inportanca of thssa relations wM dmaom^m trat«d wh«ii £or th« first time a 0«rman h«ad of governnmnt Chancellor Or.Klesinger* paid a state visit to Zndia in Novetiber 1967, putting the political staRp on a traditional £riendship# in the spirit of true friendship that conplements and mutually supports* ^e tallis during that visit confirmed the lastii^ consultations are to t^e benefit of both nations, ^^ l^on India aciiieved freedom in 1947« she found that the arts of decentralisation* jcuncation and of international control* were being practised on Gerroany Isy the Allies wi^ose wartime unity was already showing unmistaJcable signs of crak-> ing.After the unconditional surrender of Germany on May 6,1945* the German frontiers cs they were on Decenflber 31*1937 was divided into four sones.Sach zone alloted to one of the fmir signatory Governments i«e*Great Britain* the United States* the msuR and France* And the legal status of Oer:nony becaine doubtful. 32 31. Ibid. p.308« 32* Missa* K«P. **ftecogniUon of the GDR » An J^ppraisal of In^a*s policy"* in international Affairs* 1963^ pp. 116-117* lb India a part o£ the Allied Powers daring World War X2m She also had Ifilitary mssion in Oarmany which was said to be somehow attached to the Allies* India's instinctiva dislike for division was understandable in viaiw of her own tragic esiperience at the tinw of partition in 1947* It was* therefore* ej^ected that the Government of ind^endent India tvould not do anc^thing which vioald encour«^e* even in the slightest; degree* the dismendberment process initialed in Oermany*India was starting afresh in international affairs and she need not have followed in the footst^s of the three Western Powers in Germaror* ilowever* soon after the founding of the S'ederal Republic of Germany in 1949* sho converted her Military Mission into a diplomatic Mission* on Z>ecentber 15* 1949,^^ The Government of India did not* accord a similar treat^nt to the German Democratic Republic* This question was raised in the hoK £iabha in 1952 by a Connunist Member* He wanted the Governaent to eaq>lain its recognition policy towards the G£8i* m r«s>ly* it was stated* that Government look forvard to the unification of Germany and are* therefore* reluetajat to take anystqp which might retard thu forces of 33* Ibid* p. 120* 77 unification*Recognition of the S«0t Genaan Republic would have a certain ii^lication that In..ia have accepted the divi<» tfion o£ Gemtany ae final*This position waa subsequently reiter- ated also by *ther spc^esBien of the Government* while in Bonn on July l4«19S6«Priine Minister Jawitherlal Nehru was asked to clarify his Government's recognition policy with regard to the GDR. He pointed outi '•xhe main consideration in deciding tsrhether to recognise a Goveri»nent was whether it was stable and likely to remain so*** This reply^ laying down the general crit€irion of recognition* was inconsistent with India's policy adopted in the case of West 6<£!rin@ny« Besides* he did not state whether East Q&cm&ay satisfied this criterion* Actually the reunification of Gerisany was a historical necessity to Kehru* To what extent it was possible politically* always remained a matter of practical politics to Nehru*To start with* he lacked the urgent ini^ulse to pledge himself to reunification* To him* mere talk never was a substitute for a policy* Thus Nehru examined the German unification policy most csritically*^® 34* Zbid* pp* 121-122* 35* Leifer* Walter* India and the Germans, DP* 305-306. 78 The Prim* Minis t&r of th« ii«rr GrotwohX paid m brief visit to Delhi in January i959* His visit created a very delicate situation and raised speculation about India* a recognition of QDR* vrime Minister Nehru made it clear that Herr Grotwohl's visit was not going to result in ar^ change in ais Government's policy# vhich set these speculations at rest* He al0o stated that the initiative for the visit had come from ciie oUier side* Sims Uie GjQH Prime jUnister was indirectly told# even iaefore his arrival in Umi Delhi« that he should not esqpect or press for recognition* 36 The two PriiaeMlnister held discussions^ in which the om Premier desired that India should maintain similar relations with the two 6er..an states* He also pointed out that there was no immediate prc^joct of German unification* and« therefore* it did not ^pear logical to wait indefinitely for something to turn %>to ciiange the present situation* The Indian r^ly was that the recognition of Neat Germaiqr ^^ & historical legacy and India feared that recognition of fiast Gerniany would yt only help to perpetuate the division* Towards the end of 1950*s the attitude of India started undergoing a cnange* the sings of which could l»e discerned in the statement of Prime Minister Hehru in regard to East Germany* 3«* Misra, K*p. coD.cit.^ i).l22* 37* Ibid* p*123* 89 Referring to the problem o£ the recognition o£ the GGfi he a eld in X>ecenii)t>er X960I * X The Covttrnatent of Indians recognition policy with r«g«rd to the two h«Xv«s of Germany waa Inconsistant with the princi* pies o£ international law on the one hand and its otm policgf of not recogniaing territorially diameiibered countriea on the other. Xhe Qm possessed those characteristics which call for its recognition by other states* Hhe attitude of the GovernniQnt of India was discriminatory hecwuie it had recognised the Federal EepubXic of Ger^iany*^^ iftfter the (Chinese attacSc on the nortiierti frontier of India in 1962# Jhere was a significant chunye in Indians foreign policy« including her i^licy towards tl^e iiignificantly India concludod an agreement with the GiH regardii^ inutual goods exc^enges in ig63« i^s was an addition to the old 41 S'rade Agreen^nt which had also bean extended for another y ar« On April 14# 1964* the Cotmunist Party of ii^iast Germany blamed China« having "worked up" the i>lno«lndian border dispute into open conflict* In a stat&oent published tiie official news agency* MM, the Central Com.ittee of the Socialist Unity Pmrty also called the Chinese leadt-^ra<»raci8ts« national is us* Chauvinists and ultra leftists*^^ 40* Hisra# K*P« oo.cit^ P#Ui# 41* Ibid* p«13a» The Stat—ffmn^ Calcutta* ^ril 15^ 1964*^ 81 On the issuft o£ recsognitlon of sast Germany Prime Minister Lai Sah&dur shashtrl reaffirmed Mehru*8 atand in the Joint coiomunigaa iasued on the occaasion of hia viait to the Soviet Union in May 1965* The coimouniQue further atated that * that at present the fact of the exiatence of two Qenaan states can not beignoredl that any attempt to change the existing frontiers will have dangerous consequences and tliat there is an imperative need for finding a peaceful solu* tion of tlic Gorman problen through negotiations with tha participation of all parties concerned"* It gave the lie to the argument of West Germany that the recognition of OUR will prevent German unification.^^ The external Affairs tiinister* Sardar bwaran wingh said in tlie Hajya Sabha on ^ril S« 1966 tliat India was prepared to re-examine Jbe question of recognising East GcrxnaroTf if the situation warranted it* He 8aid# *'If there is any change in the situation^ we are certainly prepared to reconsider the question* We have not closed our minds about Bast Germany** India however# continued to favour re»unification of Germany*^^ 43* Gupta« *0ixi4 Peace*Loving State* in l^irtk^ op*cit« p«3? 44* Thm Times of India. New Delhi« 6*4«1966. 82 Friaie Minister itrs*Indira Gan^ii reaffirmed the above position in the Joint conmaniqiie on the occassion of her visit to UH-^, in July 1966. Thua the Indian Government has accepted the reality of the £iituation i«e« the existence of two 8«peirawe suacea* t^tatua quo of frontiers in surqpe and a solution of Gerntan probleoa through negotiations with the particii^Qtion of two German states*^^ The visit of the D^nty J?riroe i-iinlster of East«-Germany Dr.ilargarete wittkowsKi in 1966 in Kew £>elhi exteaded the relations between the two countries* at the end of her visit on March 26# ahe told a news conference that India has now uiore williny to extend its relations with Sat.t Germany. The GSM too deslied the strengtiien..ng of imitual relations*'*® on a question whether Indians stand would undergo a cnanye because of West-Germon efforts to normalise relations with the coiranunist countries in Europe* Prime Minister Mrs^lndira Gandhi told on Nove»!'bcr 20«1967« to a party of West German journalists aocon^anying l^r.Kiesinger that there would be no cOiange in India's relations with fiast Germany Just because the west German Government was trying to normalise relations with coflMDunist countries in Europe*'*Xf ar^ change takes place« it 47 would be for other reasons** 45* Gupta« lii.L*op.cit^ p«37* 46* The Tiatss of India* Hew Delhi* flarch 27, 1966* 47* The Times of India* Hew Delhi* November 21,1967* 83 Kelatiuns betv^een Xndia and the GJUH continued to develop satisfactorily dujclny the yiiar^ India Opened a Xrade Hepresen* tation in j:.ast->berlin on Uctojt>er 4#1969«ihe lat. unrimati Violet Mva* tae then i^e^uty chair In th© way of strengthening the relations tiie two Oovern:;cnts announced in i^uguat 1970 • to raise the level of their representations in otuer*6 territory. ^ a result India on october 2b,1970 officially raised the status of its represen- tations in ii.ast Germany to consulate-general level. The haat tier:nen Foreiyn l^nister# jyr.utto v^inzer« received the head of the Indian fflisuiun^ ^•Kanganathan* who was named as i^ircctor .>£ £ast uerlin consulate.xhe regional Trade Ke|..resentatlon of UDK in BmHoay, Calcutta and ^dra8# have also be&n raised to the level of Consulate* 49 The aoverntflent to establish consular relations witJi the Qerman Democratic ftipublic was a significant 8tei;> in the direction of accepting the reality of the two German states Heference Annual, 137o« p«550« 49. Ipdla* 1971-72, p. 532. 84 and according full diplomatic recognition to the GDK, Despite the consensus in the country favouring full recognition to the the Government had sought to play safe and defer to tha wishes of the Hast Germans whose Govensnent waa currenlely engaged in ''delicate negotiations* with OCR* There were 8uf£i- cient indications to ahow that Haat Oermany's '^•weet reason* ableness* and requested to India to withhold recognition to OCH for tho time being was o.cked iry the threat of further aup^^ly of ajpois to Pakiatan* During the XndLa*FaK:istan conflict Wast German anti«»tank miaailes were; freely used by Pidcistan against IncUa. 50 i)jmti*Iinperialism, facism and Racismt Inoia and Gjja hove coimnon anti-facist and hunianist tradi- tions# After the ivorld War whtan the freedcsn movement in India was marching ahead and becomincj; a tnass movem^t and shaking the foundations of British is^erialisnif the German people and the Gerinan working class in particular lent their support to it* The antiocoloniai and df^aocratic movement including the wozlcing class and ocher democratic eleat^nta of German society carried on a struggle against inperialism-British^ French* Dutch* etc* Very active was the G&rman groi^ of the 50« JAr^ vol«l2« No«51» August 2*1970* p«9« 85 *L«ague for th« Fight against Znperialiam** foandad in 1927* A dafence coondttaa was formed to protaat against British c^pjrassion during 1929«»91 when the Haarut conspiracy trials 51 were tiUcing place* 'She Indian national movement oppoisad facisiA in 1930s PenJit li^eiiru described l^assism i» Germany as "ainster reaction and wild attCKfk on all li£>eral elements* especially on the workers*** He condesnned the beastly atrocties consnitt^&d Isy Hitler ganys on men* wom^ and children* He m:^ported rep\il»-» lication forces in cpein to"ino the Civil War bcceu^e to him it became a syn^l of fight between d^nocracy and fciCisra.The people controlling po:;er in cca today were the uncoauromislng end toughest otpi^/onents of f acit^tn in GerraeoQ^ during that period* 'fhey have ccffipletely retnouned the iueas oi racism* facism and in|)erialiii>m from the school coricula* A new generation has been brought on hiunanist and socialist ideas*^^ The same traditions of anti-colonialism were carried on by the two countries in their policies on world issues like world peace* peaceful coexistence* racism and facism* freedom 51* Jotiiil, ;»ubhadra« **ciose Ties of Friendship" in Lirik vol* 12* September 14*,1969* p*35. 52* Ibid* p*35* 86 of colonial pecqples^ Rhod«sia« Vietnan« West Asian crl«is« etc* The GDR «i;^port«d India on Goa« and during tha XndoHPak war* On the otlierhand it was aaid that# 'there was the Waat • Qennan govemn^nt un the other part of Oemnanjr whicsh not only took an anti-Zndlan star»3 on Goa and the Indo-^'elc war and not only followed neo^cttlonial policies end was a caup follow^ er of the i{i|>erialist power but also threatens the freedom of other nations to act independently tlirouqh the Hallstein doctrine^ hed been following a policy of neutrality in this matter* It upholds the right of other states) to xecognise both German states and pleaded for enuality under Znte:rnational S3 Xt&a in accordance with the principles of the U13 Charter* India ana the c^ermen OeoKScratic R«|>ublic recognised the valut. of tlie non-aligned movement as a positive factor in inteimatiunal relations end assessed highly its contri]imtion to world peace and to the struggle against colonialism^ racial discrimination and apartheid* They appreciated the consistent stand taken by the members ot the non-aligned movement on the * It refuiie to have relations witl^i any state i^ich recognised the GDRt fJid it made strenuous efforts t - keep Kast Germany isolated from the non-OMiEiMnist world* 53* Josni* i::uMiadra* fflfcidtihS* 87 <2aestlon o£ the •tftatoXishment of •q[uitat»I« and ju^t eeonoiBic xreXetlona between the members o£ the world comnuinlty* The two aides believed that in accordance with the declaration and ^rogranme of actions on the establishment of a Hew Xnternational Econoinic order such relation should be conducted on che basis of respeot for national sovereignty^ the equality of states and of iDutual benefit*^ Since the establishment of di.iloinacic relations betweitti the two countries in Octobor 1S>V2# Jndo-GijjW coo eir<>tion had diversified considerably* They viewed the increase in economic and industrial coo^ieration as reflected in the volume and divarsificatiun of trade and were ooxifident that these esechan* ges would grow rigidly. Ta&if recalled with satisfaction the longstanding traditions of Xndo«<^emian cultural relations «tid ejqpressed the view that further cteveiopraent of cultural links would strengtaen the close understanding between the two countries* 55 54* Maik* J*A. (ed> tiiy cpnttmp^^l^ ^ffi^fityl,,^ Docuoients, 1919, p*56* 55* 2bid« p*S3* 88 Chaptejf - iii fcCOMOMIC REU >TIU^iS XnOia and Federal Hepubllc of tiertnanvt Oermaa uas toteJ.Xy dei3..royed during the v«orldi^ar XX*khoXQ were to be entire industry re^eatab* liuhed and cconomici life totally recontitructed* ^ For l^riuglng Ueriaan Industry and cconony to its pre-ivar position foreign help It urely required. 'Alio circumstances In t.i© i'ederal Republic were cuite favourable to such a reconstruction* Oc;rmany*s skilled caanpower and potential resources of scientific end industrial proficiency were inlierent adva .tages» ;.it.wUt largc-3c. le assistance from the Geracn progress p rha^js ..ould hJ2ve not been so r«^id in achieving the status uf a hiyhly product-ve ano proficicat industrial nation* llie pro-jreamet of teciinical end capital aid for otii r countries launcued in 1^56 by the Federal Kepublic is « proof of the succi ss of its post-war economic reconstruction* Since then the Federal Keptablic has provided some X)M 1500 million in technical aid and about DM 12«700 million in capital aid# within the frameworlc of international economic cooperation* for the assistance to economically under-developed 1* John« Ciunt eri Inside txtrope Todays p*39« 89 nations* More tiian DH 4 #500 million of t. At £irst Xn<3o«>Gar>.ian cocsperation in strengthening India's econompf tended to be concentrated on caipital aidi that i8« on selected undcr-takings financed Ly longlierm credits at interest rateu which ccmld be progressively reduced* Tlie greater ^jart of the 4*400 rail.Lion ceipitai aid granted to India Jiaa boen for proiccto tiiat liave oince been con^leted and which represent internarecognised niilestones of progress? Kourkela* isoyveli and iiiiadravati# to nacne only* a few of the moat r-nouned. Lately the technical aid has been constaintly gaining in relative inportance* Technical aid is equivali^nt to direct transfer of specialised know-how from one country to anothur* 'J^o ac .ieve this pur^^^ose* the Federal Hepublic makes available trained teaciiirmi staff ai^ also delivers the neces nry ra. terials* including appropriate machinery and oth^i. tec:inical equiputent* Bonn and Slew Delhi uave agreed that Indian contribution to its counterpart and its share of tliu costs is to provide in the Indian currency. 2* £^plcr« iurhardi *Partnersiiip for peace* in Con«Berce vol. lie* isto,3034* Bombay, June 28*1969* p«19l 90 This arrangvcnent Is on« of 80veraX# designed to ensure that the technical essistence entexp^^i^e^ evolve into truly ZncLiai>>India supcivised and Xndia«owned«»operatione*oome exanples o£ Indo«><;»ermon co p economic cooperation bett<.ecn Xndia and the Federal Hepubiic of OoTiany is clos r t.^an generally realised even in knowledgeable circXc8« Xt rests on three pillorsi aid, industrial colXdboratijn and trade* In terms of aid ext^ nded tu Znuia, oeraiany is second only to the United statesi in in^strial collaburatiun, Germony ranks trxird, as also in trade for a longtinie it .las ueld t^ie third place*^ Ger an aid has been extended to the whole of the deve«* loping world, but India hciS been able to secure the lion*« s iore« 35 perccnt of all official bilateral loans and 10 percent of all technical assistance grants have gone to 3« Xbid* p.19* 4m ^etiz, Kon&rd* indoMJarman Economic Cooperation • A aurvey* in DAOLZ, VADILAL ed» fndia and Germany! A Survey of Economic Relations. p«@2» 91 India.or to yive the absolute figures^ German aid authorised to Znciia between 19S7 and 1969 e^unts to {ss«5«000 million (exchange rate I JM 2»02>* Tu this ai^Tuntone has to actd tiie substantial Gf:irman aid c .anneXled to India through muXtilaweral agencies. Thus Germany upto 1970 contrilKiced milXion to the Xnternatic;ial Develop ment i^Qencc^(im) yince India received 47 pcrccnt o£ all IDA locnistFreo of interest* maturity SO years) # the iederal "epublic of Germany claim credit for another »,900 ndllitvn of ©id received by India* Moreover* in &;€^tenbt:!r 1969 Qerinany authorised ^.6650 million and India utilised es*7630 million.® GeriBan development assistance to Inciia ^gan as a project aid Mhm in 1958 a loan o£ Mm 1# 237 million was extended £or financlJ^ Ihe firat stage of the i^ourkela steel Plant, i-.ince tin^ eiqphasis has been stilfting more and more to non* project aid in accordance with India's changing needs*Thus* of the aid of DH 250 million committed in 1969 only 16 percent was project aid as t it folloviing table showst coiqpositlon of German aid authorisations to India in 1969* (iCM >1 Ki.2.02} Project aid !3M 40 million Comaiodity aid OH 70 million Loans to developm^^nt banks DM i5 mixli.n 5, Ibid. pp*82«>83. 102 U>mns for purchas of coital goods JDM 15 million Debt relief DM 81 million General liquidity assistance DM 20 million DM 2S0 million •ihe credit have a raaLarity of 30 years includ-.ny m gracti period of ci^ht y^^ars and carry interest of 2*S percent (againut 9 • 10 perco:*l: Interest waicfa longterm loans in 1969 cowt in Uie (^eriian coital markt^t)* In^gtrial Collaborationi U^to 1969 the Indian Govfernment approved 3#010 coll aborts- tion agreeroents between Xnda and foreign firnisi 463 or IS percont of these Qsre<^ents involved German participotion. Of the 463 Indo-Gcruan JoJnt ventures <^proved u^jto 1969 al>out 350 nave so far gone into production* A third of them involv.» German financial particij^ation* in addition to techni- cal collabura.ion* b nee 1948# wnen West G&xvtan imrestments •laounted to only ss«l raillion* the flov of German private capital uo India n&s been steadily growing^German direct and pMtiolio invetitroent rose to Bs«29 million in 195.« to its* 309 million in 196S and 8$«617 million at the end of March 1967*^ 6* Xl»id« pp*e6«87* 93 Incio-West Geriaan industxiaX coHXaboration has formed es^resaion in the «fttal»li9hin(jnt of a number o£ in^jortant iudustrXee in Xn^a. ^he setting up of a steel plant at i'Ourkela in 1^57 marlcaa the l»eginning of IndnXSf-tmm co»pe» ration in the industrial sphere*i.e»t Utruiany ronks cs the thira Icxgest foreign investor in the country*On March 31, 19 6G tlie total cepital inveuttiicnt in India was estima* tea at iis.300 .lllion cotiatituting about l»2 percent of Ces:uimiy*fi total oversaait investment and 3 % of her invet;tinent in the developing countries* By such an invei^^tmont^i.est Germany he^ tnade a substantial contribution to India's economic deve* lopmont»lri the public sector it has assisted in addition to steel plant at fourkele, the estcbliahnent of a tnost mjdem electvtlMiX factory in Bonglore^ the Kargali and Bnmn^ coal wash rice, the JSeyveli covt^lex and several power stations® She was also assisted in converting the Biiadravati steel works into a first tnajor alloy steel producer* Xn adciitlon« ..rivawe industrial units hcve reci-i.cd technical collaboration from HMt Germai^**^ From 19 S7 on ards« the nuiritoer of Mest German foreign collaborations approved by the aovera-Bent of India has steadily increased**Xhe following figures indicate thisi i-rakash« Attami *Xndias Irade with West Oerioany* in coflwierce^ op.cit« p*39» • >^;»pendix •7* 94 2 in X957« 6 in 195^4 13 in 19591 S3 in 1960* 67 in 1961* 42 in 1962# 48 in 1963* 68 in 1964# 44 in 196S« 41 in 1966# ana 24 in 1967* '^'hus the total nutnber o£ west OGrrr.any colXabo* ratians approved by aie Goveriirafe .t of India frwa 1957 to the end o£ 1967 coioes to 413* IM8 ie by the UK with 757 collaljoratione imd the Ub v/ith 4841 the federal aepubiic holds the third pim In £act# tlie largest foreign invest^ mentsof sotae o£ tht^se concerns like ^^icutens and liocchst a.e in India* '•'liiu list as prepared by t^ie 2ndo«-Gor»m Cliasib rs of CoRcnercc covering eciieme eancti ned until Iferch 1967^ cocounts for a tocal nu..ibcr of 319 collaboratior-s, a.prosd.matdiB' one*t.iird of which involved financial pcrticipation while the rest tcerc technical collejborations.Xho total Ucrs ian inv. straents abroad were m I2«sai QiilXion(€pi/roxiinately us $ 3*1 liillion) as n iSerch 31«1968» Zn Zndia# too* though the oundser of West Uornian collaboration van large* c«^ital investment was not corresponding in tnagnitude* In Dec*l96S west Certnan business investment in India stood at S3*24 mi lioni it increased to RS.120 million by Dec* 1962 and xeached Ks*245 million by March 196S* an ilarch 31« 1968, the total German private capital investment in India was estimated at Rii.390 million* Ilr*mlltr4«ht, Joint Secretary of the Department of ii.conomio that Affair who visited India* stated^Gernan investn»ents in India 95 com^tltuted 1*2 percent o£ Germany's total overseas invest- ments «nd 3 percent of her lnve .^tm^ nt» In developing g countries* To the wary German inve^^tor, Inuia offers a substantial mt Qfoury of Security through MlateraX inter-^vcmrni ntal a®re 8* Mebta* G«L*i 'Sndo«Gorman Collaboration in industry* in COBKoarce. op*cit* p*5* 9b bee« a sXacdteziiny in German interest in India w ich, howev«ir# is now coodng to an end*^ The econoadc policy of the Indian uovernineat encounmes German investert* to initiate Joiat ventures in India specially t :o.e uhich are expert oricntea.There a^a several industrial branchea where a trpn^fer to ijjoia is of adv^jitage to both the councries* /Uso then haa b®en luatle a start to operate Joint venturer in thira countries for which there ©xiSu« a vreitt ,/Otfcntiai, 'fhe Ooiegcition o£ Me&it i^emion industrialists ana baxDcera who toured XnOia for two wee^s in «3^8nuary 1970* <:escribed t^e invest'iicnt cliui&Lta in thit^ country as favourable* Led Gialrutan of yuetsciic^ bahlcs* the group* coRfirised o£ yresin nt and board iDembers of Uj-rn^nny* s lendin., industrial enterprises end bankst ^^iemens* J»ried*Kru^p* Vallcswagen* i;)aiinlcr*iien£#'<.ob.bosch#H 9. Ibid* p. 5* 10* Leifer* walLer,i India and the Germans* p*307* 97 a V ry serious and valuoJble partner for industrialised countries and ciVfc:ntually b« in a ^uosition to strongly coiqpete with Uc t ^ej-inan industries in Xnaia are uiainly active in three fields v.iluiii also indicates t»ae pattern of future iovefetiucavl iJteel .iou aeavy fenyinecring* electrical yooda and clcctronict># chomicel iaiid plicXmaceutical iaduatrics# 12 Gcrnianf'e largest manufactuTus of electrical goods with 260«00U en^jloyees and & turnover of 10000 million £»l(gs* 20000 aJlllion) t^as wieinens :i:nuia(Boii[a3€^>* L f^sore Iron ana iiteel Ltd* netotiat«d with the West Oexnwii Govemmeat for the necessary financial assistance for the eatatolishment of an alloy steel plant with the technical cooperation and assistance of (ieiioan industries*l!he agreement was signed on February 8,196S. ^.'he w«st Geroian Reconstruction Loan Corporation agreed for a loan of PH 60 milllon(Rs» 120 million) and Very soon a contract was signed between MX^L and of West Germany for the supply of plant and 11* KaulK>ld«£FKt'German Investment in India* in DAGLI«VA£}ILALI 13. Il»id« p.Ul* 13* Ibid* p»p* 142-43* 98 •qolpment LotalXlng DM SI* 39 million for the manufacture of 77#000 tons per year of alloy and special ate l8«M:Q«*Telefttnk®n and OFU of West Germany have been awar .ed a contract for the atiqppXy o£ electxical equipment and fumacesto the value of DM 14«95 niillion and DM 6*77 million respectively* to ensiure coiicitttcncy of high c^ality proctuc..st a laboratory tor chemical analysis has been planned with the asai&tance of 4 4cnschel and i>txonll6i;in# iiiohler and Brottiers i.td«of Vienna* /^usk.ria# who have ecrnod a tvorldfeicle r«^utaticn for the manufacture of special steexsf ii.v ijeen aj^pointed as consultan. s» Une of the signifi** cant fet'tUi-ea of tr.s project iy tlie maxicaim oarticipction of Indian t;;.n9incoring Industries* Of the total eutiniated value o£ Ks. 270 uiilliun for t:io alloy steel project and K3#44«4 million for the eXijaii»ion of electric pig iron furnac^.a# leaa tlian 50 as. 130 laillion and iis«24,4 million respectively* coi%rlse foreign exc anyc ea© nditur«» r-Ui^L was the first steal i^lant in India waich hc.9 escorted technical know-how to a neig iisourin^ country* Ceylon,*14 ® AS already noted German collaborations with Indian industry were mainly of two typesfpurely technical and technical«cura» finaneial*under purely technical collaborations, the German 14, Hautoold* i£.F«K«t * Alloy Steeli X'he exanple of Bhadravati* in PP«30«>3U 99 fiirm gave the Xnuian partner kno%r«how in some form or other (dtmlngt know-tiow* patentSf trade marks etc) • In technical* oum-financiaX collaboration* besides know«*hoif# the Gertitan firm ..GU aliio Boaxe £i;*anciaX interest in the Joint venture, ilnis was in Clic lorxa of ulrect ca^iual i.IVE-tment, or by way of ^^iciit* iaacAir,K.ry or i^articip^.tion in th^ equCity CQjicol by way of rcc-ivini, e<5Uity in consideration of the or other ^icrvic-^ available, .iy far, tho Kejority of lKdo«ccxu.an collaboration in tlie cheraical field tc;.chnical collaboretioiv out of the 35 coliaisorationo, 60 perccnM ucve tt;chnical collaborations and 40 x^ercent fi .an- clal-curii-tcchnlcv.3. coXlaborc.tioi:o»'A\'i8 trao eo in the CCMC of t^e never c04j)hii5ticv.tr,d iatlustries euch es the cheiclcal and cheiaical bcsed iad^BU:ies,latia*6 tcjchnical base at) yet ultiUiL-r and he cchnologi caX gap co_ i.es,jo,;dinyly wldesr.Indo-^erman coll€^orat on las m^de a significant coniribulion toward® bridging thia gajj. i-he major areao covered £>y Intio-ueruian joint venturo£; in the die.leal industry w xe the followir^i^® SiisaisalE' &\i^phuric acid and su^jer^j.^osph^tcy, . ydrogen peroxide* formic acid* acetate£i« carbonat e, citrates* plios^hates, sulphates* acetic acid* glacial and ester solvents. IS. *CollaiK)rations in c..eQiicals* in Coau:w^rce« op.cit. p. 38. iOO 2«PhannaccuticaXgt Antibiotics (CaloraiVnenicaX) « antidiabetiss(I*olbutamid«)« pct>caine hydrcc!ift}rida« eiksJLoida* laboratoiy rt^a^euLs* vitamin Ct vitamin B6# BorMtol# suryical adiiesiv© plasters etc* raints and jyiquteatsi Insulating s^^ntiietic eneun©.» oryanic piyti^Qt powaars^ aimileionsf synthetic resins* binder materials* ultromarine blue* High jensity polythylene# escpandable polystrorcne* pvc cora^iounds etc. XI» Irtdo-iienrtan c anflaer ot Conunercei cd in 1956 in Joabay* i-ho Ujaraixir of Uoufeoircfc ii^ fanctioiiiiig tlirouyh £iVv, oxiJiceii situated in tioeoLa^t calcucta« Dciiii and Madras in Xndia* and i^uessaldorf in Geriuany* The Cuamber was uet %ilth a view to promoting XndcMieriaan* cooperation in all fields o£ indu^itry tmd trade* Xh& achievements and suecesa o£ the ci'^wirtoer can best be judged from thu message send by the Prime Minister lits« Indira Gendiii, on the cccassion of the tenth anniversary of the Chamber. 16. * Zndo<-oerman Chatrtb r of Commerce* in Commerce, vol. 118^ No.3034« Bond^ay* *7une 28.1969. p.77. lOi **The concrete syn%>atny shown Jby the Government and industrial houses of the Federal R^ublic in a wide range of projects in our country from the giant ateel plant in iiourkela to the fruit farms in tlie Kulu Valley— ia a fine eica%.le of International coo,>eration«Xhe Indo* Oerman Chancer of Comtnerce* on which are represented the pre«der organisations of Industry and trade of both countries, vias played a iiartlcularly useful art in pruittjting the cooperation.* -ihe activities of the clieisbor extended to ell fields %-^hich directly or indirectly concern IndoHier.uan trade relations and industrial cooperation* I'hi. chantber has to follow the trends of thcj economic rdbtions and# ^sh^vfj it seeros balled £or# to taake r^resentations to the autnorities on both sides. Members as well as otiier enteiijrloes a i^roaching th© chai:ibor havo to be ]%ept inf^noed about tlie conditions^ regulations* cu£jt:om8 duty, taxation* cufl^ any law« etc. Addreusei; of t.3(^>orters* Hiajiufacturers and dealers ere supplied to inquiring partioD.'jphe Casiitber also has a panel af arbitrators for setting disputes. jiembershii^ of the CumibeJ: is open to cc»qpanie~ and firms resident either in India or in tiie V#deral Ripublic of Germany. Over the years* tne metsbership has increased steadily and i;^to 1970 more than 500 .nembers were enrolled with the Chamber.These raembers arc served witli v^«»to-date information tlurough circulars and also be means of individual letters.strict impartiality is observed in all actions of the Chaisiber by haviny a Oommittee consisting of nationals of the t%ro countries in equal nuntoer 02 tiny tiie wftlce of the president ana Vice-' FJcesicienU between Genran and Indian natio^^aXs* 17 airo major fields o£ ^ictivil^ have bitcoioe prominent in the course o£ the 15 years of its establishment*'itie first is the icie field of indasfMCial collaboration* Such a collaboration has always to b« seun from tw oicie8« the Incaan ami the (German* and 17* Ibid* p.77* 103 the other party's position or from facts outside the control of the parties* The assistance of the chandber doe^ not come to an end witn the signing of an agrewient^mny cuestions and problens turn up once a scheme is iaplimented or prodoc* tion has coimtienced« and the ciieoober helps in solving them* The second major field is tht esqport promotion. Xhe Chaniber iries to enhance uenitan interest in Indian ^oods and to find suitable custoraert^ and« on tim oUier hand« to help Indiaii ex orteri. Offers and Inquiries are circulated and other inforoiatiun is made available- to interested parties.^ chGirJxir of Co.^nerce wr.ic^ has not.' co...pleted a cuarter century of its existence has been doing consncndalsle work* for promoting tra e end econon^ic coopercition between he two countries* ^t its efforts to dtsvulop closerties betv.-een West Gcrinany and Eastern Ht-.^ion of InOia deserve to be more widely known and appreciated* 19 A Significant oy-product of the Indo-East German trade relations was tae inflow of technical Tcnow-how that has helped to diversify the Indian econonQr; and tlsis dei^ite the fact 18* Ibid* p.77. 19. Venkateswaran# K*J*i 'fiast India and infest Gcrmai^* in liastern gcouomlet. vo.78, Mo.6# Feb 13«1982# p*400 04 that there was no agreement on technical and aeientific coc3|)eration Isetween the two countries* Xt was perhaps not as weXX known as it shouldtoe that tiie end of 1968^ over 60 licences and contracts £or collaborations with Indian firms imd been concluded by Sast Oer'nany in both private and public uectors* Houi^le among theoe were enterprises for the manufacture of typewriters^ tc,;tilo machines• gaa purifying m te^iel6# textile priating tneciiines# vire niesh» high tension altuainiuiQ i^iOwer cables:« maci^inesi toolu* house servlcc caters tJid technical felts* ^ r ^cordiiig fco the overall structure of tiie Gta economy in 1970 an iR|3ortant part of their total oj^orts to India wau accounted for tjy machine tools ana ^^roducts of taetal working and ^-rocest^ing industry. .j«i>iaes thi::; fortiliaers^ aieadcal6# raw films wert=: to inc'ie« Fertilisers are an irvortant ite«' tor Indie, xhe uw, therefore^ was su^^plyiny about b5 ^ercv^ut o£ IrKiia^ total jlrrports of potash fertilisers* 21 20* "India^fisst Germany^ is;iq;)andlng Tr^de Kelations* in ^soit^ Calcutta* I^overober 6,1969 pp#000<-801* 21* Arnold* Karl Heinai "ZndoMiDti Econoadc Relations* in Liaik. vol* 12, S^t@aU>er 14*1969* p*38* iOD am iiqportfi from xnoia till the year 1968 mainXy consist ted o£ itenvXilce Jute manufactures^ Co££ee« tea# 8|>ices# oil«» cake for anlioal feeding^ siica and prodaets of industriea such as machine tooXG« pvaxga, batteries* iron fittings end textile machinery2. 2 2?he Govomroent of India and the OoveraKient of German Democratic Republic entered into en Agreement on November 5, 1958 to extend trade between the two countries. On the same date» ^ir.iti.ticnaeise* Co, aierclal counsellor and 'iYade aepresen* tatiVQ o£ sast Germany in Zndia# said that his country was prq?ercd to Imy f - oda worth Ts* 100 rd.llion every year. ^^ •She abovs- arrangements provi<26 for en increase in the oxch^nge of coKi.JociiU.QS fjr the following year on a balanced bc'sls. The uer.iun Denijcratic R^ublic wi^l specially supply to India machinery tools* polygrfl^hic machinery* products of prexcision o£ the mechanical and c^tical industries* electrical equi;jment* textile machinery* as well as fertilisers^ films and nu ber of other raw materials and equipment.^ 22* Ibid. p.38. 23. Jhe i'iaae^ of Inuia. :iew i^elhi* .^ovrmbf r 6*1958 24. lisid. 06 Payment Arrangements have been modified toprovide for a Central C.learing Accounts so thet the rupee earned export- o£ gcods fr^m the German Qeinooratic Ri^iiblio were uti* lized for the in^jort of Indian products,* On i>eceiia>cr 28 #1963 an agret^ment was concluded Isetween India ond the Geroian Democratic n^ublic tx> continue the oxioting frade and Payments Agreexnent for 1904 by cnlearglng the vuluioe of goods to be exchanged bcjt'.ieen the tw countries* As a result of t'iis arrangem! nts, tht total turnover# of trade both viays «as ea^ected to go up to rj;.350 million l^y the end pt 1964.^® An Agr^emient was signed liy Chairman of the Stat© Tradlntj corporation* on belialf of India enci *4r«J»Klstner# Director Gtin&ral of tlie hon i^n i'raae Cor|}oratio^« Jergban- *iandlel# Berlin on bt^half of bast uer.aany* un uanaory 29« 1966 in iiitm -'elhi ^hafc J^ast yerijuariy will supply Inaia*s present imports of potash fertiliat^rs within the next ^hree years* Speaking on tie occ&ssion i'X*Fatel saia tnat the fertilisers to be supplied anUur the Agjceeoient would co&t about Ks*7S million*India was also nc-gotiating wlt^ Aat>t Gezutany for the supi^ly o£ 50#000 toanes of ammuniuoi sulpnate* 25* Ibid* 26* yhe Hindustan Txmes^ New Delhi, Dectntoer 28,1963* 27* fhe yiraes of Indian «uW*JJelhi, January 30,1966* 107 ZnOla iJi%>orted 1X2»9 roilXion marks worth of goods from East Germanjr and «3^orted i03»i mlJLlion marks «t>rth to £aiit Germany in the year 1966« The total foreign trade^ turnover between India and ODk in 1966 was of the order of Es.5:o million bothways, with ii^ports and ea^orts balancing, la the year I >67^ the German DesQocratic ^^epubllc escorts fertilizers to India worth 8s. 100 million*India escports 10«000 tonns of forro-magen«se, worth EstB million to the Gerraen Democratic s^ublic.ioth the countries signed an ayreement in Berlin on Kove.bcr 14#1967 o^andlng t.ieir exchange of goods ana expending Uie dasio 'A'ruv-e and «>ayiawiit Agreeraent of 1964 to l9Gb# .toS in the year l!^69 the ti-o CGuij-ritia iiavu a txjual t.aae turaovor about Is »700 isiillion* I* ft-Tjort-s u£ t.^sentlajli Indi^ ii%.ort truiu consist mcinly of f«3rtili«ers# potasiit u.cictur8 and ut.ier agricultu .al mac'inery« rolled steel pruductSf special ste>jls« x»ray films and other photo-* f|£a|>hic raaterials* laborcitory and scientific iristrurtents^ caeiaicals^ finishing travelers^ and ships, Qf these* fertili-* sers constitute the largest single itcin of imports accounting 108 for aibout 40*7 percent* In tercos of India's total iiqporto of fertilisers from all sourcea* the supplies from GDH amount to about 3S percent, isifjiilarly^ in Znaia's in^^orts 6t potash^ tha shcura of QiM comes t^ alKTUt 65 percent* Xt was i%ortant to note the cm was one of the world's largest producers and 9A e»»ortero of potash* 'Ihc ejg?ci.4t.uco o£ Gp. as well as of other countries has ©h-^wn that tlic concession of i.ntcr"*govcmmental agreements on econonuc. i^cLtmtltlc and technical c-ooperation end in other 29 ficldjj was cor^pleraentary to foreign trado relatiox^, * iiur-.ng 1970 tiiS^ hau clco emeirged as a supplier of ship end l.idia/^ncladed contracts for tho invort of 14 ships from bjuU, worth about Ss^SOO niilllon for the Quipplnfj Corpo- ration of Jeyiocn^s for this was to be made over a peraoa of 10 years. j?herefore# besides eftect*ng savings in fon.iyn oAcim^tit the added tonnage as a result of iupurt of a from Gi^ t/ould facilitate eaqpaxtsion of frei«.jht earning as 26* Babut V»Vithal, "India's trade with GUv" in Sastern SCOIIQ* fCTis^* voi,56* J!l0,3# Jan L5#197L* p«122# 29* Arnold* Karl mlazt *Indo«-Gim ii.cono:i)ic Kelations* Liiflc Vul*12# ^CGPTEIOHER^ 14«.1969RP*38« 30* a.Vlthal# op.cit* p«122# 09 The ilicinaia Steam Navigation COvttda had placed order with i.ast Germany for purchase of eight ship® totalling IJ5 lakhs ^t of the first chip arrived in Janu-ry 1970 and the remaining ships had been delivered at the rate of one ship every three or four losnths end conpleted the deli- very of fill ships by 197 Cor^;oration u£ Xr^dia Ltd(&n undertaking- of tiie oovernntLnt of 2naie) ol©o entered into a coniract with t*ie siiip ixillders of the for Uie delivery of aix more most iiiQdcrn liner cargo ejaouating co a to'ccl value of lis* 250 rdLl^ion* ^'hia contract uos the larycat oinyle ueal negotiated betvvc-^.n Injle f^av no far* It uas also re^jorted to lio tliu larcj^ii.t sinyle order pieced so far Ijj any xHv-ian toxiip^yin-,.. ^ co-ii, any.3 2 Hon»yraditional Items t A9 regaxdts non-trauit; onaX items, India was e^qsorting marly te.ao mil'ion worth of engineering goods to the (jDR as against ^>•90 mllxlon to all the Hast European countries 31. CoBunerce^ vol. 1X9, Ho. 3050, Bombay# October 18,1969 p.784. 32. oachise, .i. "Indie and UJOk AS Trade Partner" In Eastern ^conotPlst. vol.53, ivo.23, iSecembtr 5,1969, p. 1068. 110 in h&^iun&I Chalrinan» lungineering £9^01^8 promotion Council* V8S liopsfuX tii^tw in l^iic ysairs 'fco GOitm Zndia should be in a position to eaqpurt nearly 500-610 million of tngineering goods to t..e Comeconregion out of which the Ghtxe oi: CJJJR could be F5#l00 milllon«3ut be recognised that Q study will teve to be mado as to which of £ndlan engineering good;L- weru suited to the Kcct hAirOiMrBti econoray* 33 .The had envisaged on increas^e o£ 60 percent in industrial oat ^jut try i970. Oroater ei^.tcisis was laid on production on chtjaiicQlSt en^inevCin^ yoods, ;^ceil,€slcctricity and otner raw metoriols ruqaiircid by it. ThiB also proviues an exccllunt %>i^ortunity to i-jidia to bootit ujp aijr e3^ortt> of liijht cna h«,£:vy cayiimcrin^^ ^ooub, in euuitionta oUier nori-»treol wional itcaia* 34 III.Indian Agencyt In view of the fact that international collaboration will be furt-r.cr stxcngtM«n« 33* Coawierce. vol.ll9« lio.3049# Bombay, October ll* 1962«p.702. 34. vatel* C.ii« 'Role of bix: in Indo«GiiK Trade* in ffatem Kcono^lt. vol,56. No.7. x'ebruery X2,l91l» p.2831 ill India* a newly developed imiustry will in furtiier find a stable end ea^jandiijg market in the UDW for Ita product as 35 India*0 trfitTdtionol ite-^s did»^ 'Jfhe UijK concludes a yreat pert of her ©aborts and import contracts with trac.e partners from all over the %rorld every year at the traditional Leipzig L'airs»'lt«erc£ore« Zndias participation in the lieipsig Fairs and her exhibition of top quality goods QS W«11 as high level coOTaerciel activi- ties? during t»na doya of the Fair were of decisive invortsnce to Gconosulc relations, woipaig as a venue of wnarld trnde and hiyh ranltinn ropresentetions from all ovor tha t'orld offers a wide range of possibilities to promote end ceiepen furt?i^ Indian trout, tiad oconortsic relations,^® KsspcriencQ has proved tiiat the existence of a I'rade Representation in the partner* s cou.itry is of greac .ln%>or» tance for Uhe extension of economic relations*Xhe trade Rflipre£»enttaiULon of Qia in India mB well as its Regional Ri^resentation in Bombay* Calcutta antd Madras render valuable service tov^arcis this end* Good possibilities for the extension 35* of econotnic relations especially che promotion of Indian escorts to the Gat wou,ld open« if India e&tablis ed on official governnient in the ULK c^il-al w ich could also be in a position to study ti^© condition of the uiSR iOarHctit and to e>i^.lore oil possibilitie:^ of oconomic relations between Indie end cm, ^^ ^C0i3e for ^3Q>an In .e of tne fact thet there was no egrcetPcRt on the tecnnicsl and scientitic coog^ezotion beti^een India and CDH till 1969. ihere vcure nundser of exan^les nhcDlng the delivery of technical know-how and econoj.dc assista-.ce the CD i to Anaie« For instance t^ith the collaboration of GrJi firms,India was j,5roduciag machines tool® <:«>#of.ice e<3:uipnient{Godrej) electrical trcaip..;ent(i:.lectric Construction end Uruij-Kcnt co) 38 cablei'# (Pre:der Cablt-^ Co,>#t?eldJ nq electrodca(Arc electro • There are still tnany possibilities for extending tii< se econoaio relation between India and om^This concerns not only the nuitiber of items within the exchange of goods but the deve* lopoieiit of preconditions for extensive econocolo cooperation. 37. ibid, 36- xb.\cl# £)• Jb, il3 To assist India In the fast ejqpanslon of her mnrc/iant fleets ,he snlpbuiXding industry of the Gm has pjrovided r far a comsnerciai credit ifiorth .<^.360 mlXlion within one year* Xhe credit terras were very favourdble for Indiatilie cxedit wafa repayable in ten yearly instalments at a v^ry low interest 39 of 3.7b percent only. The iteuia of India's ini^ort© from GDii wotu of a very hlQh invorta priority in 2naia*s develo^.ment plans.xhe green revo- lution and the efjforLS to increase productivity in India's eoriculture vory much de^^ond Ui>3n iniporte of Tertilizers and agriculture mjc dncry,t$s,jec3ially ilic tractors.®^ trade ts/ith Gi)H is cntiroly financod tlirouyh noxv-convcrtiblc rupee accounts^ supplied of is-dc^ I it;h invor fc£I i riority itcwo to InJio OAJU nov© rt-'CUltoJ in the 4;avinr; of coiisidcrcblo amounts of free foreign In addition to thic» bilateral nature of Inula*s tradfc witii um provided a qood mar;-.rt for India's ej^aaading e^^jorts.*® One feel Si that the economic and trade relations betvt/een GDR and India are es::>ential for the friendly rel£)t.ions Isetween the Lwo ^.eoples.This initiative should re&ult also in an over all in development and extention of their mutual relations. 39. .-acho®, op.cit# pp. 1067-1068. 40. Babu, V.Vithal^ "India* c Trade with in faastexm Economist vol.56* M0.3# January 15«1971. p. 122. il4 BsESSE^iX Xn the h«y The delicate mechanism of international trade and payments^ based on otttltilat ral trade and convertibility, was set at naught by the developments that followed the First world v«ar and the great depression of 1929-33* All the attenipts in subsequent years to resurrect the gold standard proved unsucce* ssful, as the favourable conditions for the speration of the delicate mec^nanism of gold standard were no longer prevalent* U Chishti. uumitrai India's Trade with East Buryie. Hew Delhi, Indian Institute of Foreign Trade (C 1973) p«l« llo On the ot^mr hanS* Uie neacus of &uch « delicate system* which wa« already totterinf* completely £»ro)ce down* A real conflict diid not« however* devulop till the dt^ression of the early thirtieii %hen trede with its interlocking and integrating cmiltilateral trading channele broke down and irastic isvox-t restrictions mte introduced by several countries* ^ Xn^ort restrictiona* exchenge rei^trictions and clearing agreements became the numw of the uey« These were motivated by three objectivesi easing foreign payments deficulties caused by the elirii^aoe of escort marketsi (ii) protecting domestic industrice and agriculture from tlie effects of d^rcs&ioni and (iii> ensuring en^loyment* 'Wnm emerijence of in%}ort restrictions and exchange controls was justified on the ground that doiaestic economic stSbility and maintenance of full m|;>loyfflent should be subservient to the stability of the exchange value of the currency and balance of payments*^ India's foreign Trade is based on bilateral trade and paymints arrangsMiients* It is not a new phencwMma* Xndia IMMI a bilateral trade agreeraent with UK even during the world 2* Ibid* p* 2* 3* Xbid« p* 2* il6 War Z2« which continued in th« pofit war period* The developments in India's foreign trade till th* p«riod by and siiailar to thosa during the pre-ind«?pendence period* werei (i) a small whar . oC foreign trade In the national inccmei (ii) heavy concentration of ©aborts in a few conwiodities resulting from inadecjuaL® industrialioatlool (ill) a^rerse trad® balancel (iv) consumer goods constituting an ii%>ortant saginent of iJ%)orts £or lack of heavy investment progrenmef and (v) geographical concentration of ©aborts and ioporta.* The quantitative in^ortanco of foreign trade in national income hod l»een small* The share of eaqporto of goods and services in tiie national Income had been fluctuating l^tween 5 end 8 percent* The correSi^onding fluctuation® in the share of ii^orts of goods and services had been within a range of $ to 10 percent* In terras of its contrilouttion to India** development needs* international trade played a more iaisortant role than these figures indicate, for iniports provided the tmicai needed capital equipment ai^ technical knoirvhow*^ 4* Ibid VP* 11*12* 5* Sanerjee# Bxt>jendra Hatht Forei^in Aid to India* p*l* 117 The period contlmm&ly esiperienced an iirport surplus, did not grow faar as ioports^ and on an average financial aid only 83*4% of total i(qports«Th« commodity ccati^oaition of ej^ort* and it%>orto was olmoat the se^e m in tha forties* A few con^ix^ditiea such as Jute taxtilesy cotton fabrica^ ooffeo* spices and leather continued to dominate Zndia*8 eaqports«^ 3CISDIA*G Bi^MlCE OF TftADi., 19SV52-195V5® Tmm « i (in S«akhs of rt^ees) rum immiQ B^OBIliB fOTMt EAiAKCE ii) 51^52 97003 73294 -23709 70159 57712 -12447 1953-54 61020 53049 - 797 X i9S4-55 6S634 59243 • $391 1955«S6 67^84 57632 -10252 suUKCEi uf£ice of the economic Advisor# Govt* of India* 6. Chiahti, saa^fito p. 12* Ibid* p«12« 118 2* yrogp»cts Jfor Wat Oertnanvt fhe Indo-Gemm tradki relations entftred a new era vith the independence of Xndta in /uxgu&t 1947* and official termi- nation of war again&t Uermans'* Be£fore the horld Ker tl trade relations between oarjaany and Indie* vfhich at thnt tlm® also Included j^6ki!»tan« were CwKiperatively la^ortant for the foreign o tracie of both countries^ Gernsany aaoptefl clearing agreements* on the one hand* to boo£;t assorts* and exchange controls and otiier nieaBures to re-'trict iir^orts* on the other* 'Zliis we» fostered by the political £»QllGf that the ueraion people would bm nourished by the prodiact© of the Oorraan soil.® * Gv^rntany followed a i^olicy of clearing afreetnents with a numbcsr of countries* waich CKiuld find no alternative markets for tiieir esqports* Under this system* pn^jfaients for iii|}orts into Germany vmte. made to the clearing account in aernian raarlcs* whicdi could be utilised only for making payments for German goods* ^e use of trade and pigments agreements as an instrument of trade was not confined to Gi rmony elone but was used on • wider scale by ttther countries of Europe also* Thus these 8* Chaman L«li Germany Rebor^ p»14« 9* Chishti* SOmSJ^ P.3U 10* Zbid* 119 «9r«»uentji govemc»3 not only trad* within the European countries l>ut also hetveen the ccmntriea of Europe and the rest o£ world* In addition to clearing agreements^ bilateral treatle India l^eing a member of the British consnonwealth of £lations# did iialf her foreign trade with the countries belonging to the coraromrealth i*e* previously with Great iiritain*ftest Germany^ howover# ranked second in ir%::orts end third in escorts* Xn 193Oertnany still 8upj.^liQd about ten percent of India's iqport requirentents# and took off mmt five peixont of the Indian escorts* llius OeriaarQ^ was« «part £ran Britain* by far the most iinportant European business partner of India* &he smqplied India in the first place with machines and mechanical equipment* but also with textiles# glass* cer«^cs« laetal goods bousHt and other consumer goods, while she c^efly^raw materials such as jute* cotton* hides and skins* besides manganese* mica* tanning materials and dydye-stuffsi * lacquers and resins as well as oil seeds from India* 12 Ibid* p. 3* 12* Chamanlal* pp.cit* p*141* 120 Zt ia not fair to ej^^ect any countxy« noc the least a developing country like XnOia* to ejqpand her trade in the £ace o£ euch a heairy initoalence year after year* (The average annual deficit taring the first Flan was o£ the order of ^.240 ^llion waich rose to B3«9ao million during the Second During the Third £^lan period* the coverage deficit was marginally loiter at m^BlO laillion* Turning 8s«1370 million in 1966-67^ 8s* 1220 million in I967*6d«8s,930 million in l'J6u-69 and ej. 540 million in i969»70)* The natural reaction of Hew Delhi to such soaring deficit t?aB to meet it by cutting down inporte from t.*Gorciany* Proin Rs*1900 million in 1966« India's iiqports came down tcgs*i590 ndllion in 1967, i?s.llSO inillion in 196B and Rs* 1000 million in 1969. As a result* the trade de^ficit also narrowed down to less than {^.SSO million in 1969* This w^ certainly not an ideal situotionn especially when tooth new Delhi and Bonn were anxious to e:)q?and their trade relations* Zt was however* an inescapable outoone* India was obviously anxious to finance her iiiiports primarily through her eaiport earninffs and as such some sort of balancing in trade was necessary with all countries* ^^ 13* Oagli* Vadilalt India and aermanyt A i»urvcy of Kconomic Relations* p»vi* i2i Oermany claim d that her Indirect iii|>orts from Zndia exceeaedi coneid«tabiy her indirect ea^orta« In particu].ar# it had been argued that aLthough Xndia*ft trade deficit in direct was 83*930 iQiXllon in 196&"69« she had a suxpiXus o€ as much as E3«360 cdLllion in indirect trade* The net deficit on a coR#ined baai8« it was argued# was only Ss«S70 million which was n^^r than covered by German aid Oisburscmjent through bilateral and multiXateral channels*^^ Th© seconu argument often advanced by the German side that foreign aid in real tenm (rather tlian in tsonetary terms) could be transferred only t trough a trade deficit* ^uc^ arguii^nt however suiters fr 7he XndovOerRuaa trade has « long history* It was only At the beginning of t^e fifties that Gerreaii^ emerged as one of the India's principal trade partners? India in 1951 haA 14* Zbid* p*vUl* 15* Xbid* p.viii* * /|»pondix • 5* 122 launched the first o£ her Five Yser Plans end with it her dlaffiazid for capital goods was t0 grow steadily and reypidly* West Oenaany^ oa the other hand« at the sane time had recover- ed frora the foirea3«dovmo f htjr ecQnosi/ afi&r Uw war and could offer her high quality goods at coijpetitlve prices* ^^ AS India has made the industrialisation o£ the countxy the aim o€ tlie Five Year Plan published on June 51* she was intereated in the first place in investaiieat gooda* and not so much in consumer goods, the iaikJortaLlon of vj-hich as fer as 17 the^ «fere non-escentlal was being restricted delilierately* Host of all, Injia required, epart fxx>m whole plants, agricultural, electrical end textile iiHKihines* But transport material^ iuch as enQines, etc* were also in great detnand* Qenerally ie^rt restrictions for machines were r 16* Seitx, x^oncirdi Zndo«<»erman £con<»nic Cooperation* A Survey, in aMOLZ, fp.cit. p*88* 17* Chamanlalt Germany Reborn* p.141* 23 doing business with Zndi«* Germany was* however^ to m«et with strongest British and American c-ioijetltion in this field. The volume of trade between Xndle and Oermax^ reached its highest level in i$28 when Qermtarty alone received goods from India for 711 udllion KM (Reichs I'iarlcs} •i'he traae of fe»«st Genuviny with India did not take a favourable turn until tae war was terminated by Intiia WlmlM' * A£>pendix • 1* «* Appendix •> 2* 124 •xt«ndfid until the etid o£ the Hegotiations ver« conducted at Boiui £or so'tw wetd^.s to n ^otlate aiK>t^er prolo* ligation* ena t!m araving vp of nm 3Lists of gooSM for another year» Al»ove ell things Germany wamted concession for Uie esiport of tne iron she t nte^tal goods* certain metal goods and of products of wood* paiper* leather* glass and 20 plastic industries.^ In the first eight months of 19 SI the ^'oderal M^ubiic could already sivply Indic with German products for 144 miiaioo German m rks-nearly fiva tiines more than in tJ-je same period of the previous year* On the otiierhand she was able to buy in India only for aX^oiit 74 a^iillion Oerman Marks(19So* 39 million l^egotietiona for renewal of trade arrantjCiiit nt isetween India and Oerrfiany were conducted in Hew Delhi on fJoveniber 5* 19S2* It resulted in tl-ie signing of agre A {Rinutc.s of diss* cussions on commercial rel tions between two cour^tries* Q«M»SuKhthank r* Secretary Ministry of Consneree and Industry* signad on benalf of India Government and Doctor Van ^chexpentoavyi leader of German traue delegation* signed on l»e alf of the Qovernment of the Federal Republic of Qermauiy* 23 20* Erhard, Ludwigi Germany's corny bacJc in the World Mai1cet> P*144. 21. Chamaulal* op.cit. p. 142. 22. Srhard* p«144« 125 The revival of trad* between Germany and India aince the war i^as beea es fej^a^taculor as tha revival o£ tha Crennan aconoqy* Xt^ SXrut originat^vd in 1^47 with atnall ordara were subjticx: to approval of ihe iriiiitary uovernment and Bvibstquently were handled tht joint ij^ort e3^rt# e^ency* an Allied Orgaxiii^ation whidi sponsored uvaraeaa trada of occttpilMt Qermai^* Xndian comnoditiea ware again in demand^ iKit th© x?attem of tlie trada had eonsidarabXy changed touth because of tlia partition of India oa tha one hand wU the diviaioa of Germany on tiie Gther»* Both India p-nd Omnany are strut^glinc to find an ©ouilib- rium in their econoti^* Both have to mtk hard to raiso their living standard* 'itiera ia abundant good will on both aidaa to work togetner* iiht^re are no apparent obataclcss in their way to cooi^erate solving probleraa of cotatnon interest* Xt can be safely said that if politicians do not plunge the world into another war India and viest Genoany will become best partners in trade* aid and das^elopioent* 24 3* ygftiat fflg ¥wrmB%§ ^ay^tMiHr n^ W9Pfan Trade agreemnts between India and the taat European countri« as orifinated from their earnest desire to es^and their trade 23* Chamanlal* with each other* The agreements constitute a siogle instruiiient conslstlag of trade and pec^mente arrangementa* Their duration ia three to five years*'? All Che agreciaeats prior to luitl a clause atcifclR^s ihat iifia^usnts reXutia^, to comjet'cliil and aon-coimierci^il troQ&actions betwecii India anU i^&at Eurcpean couratries were to be effected in Zndioti rv^ee or pound atexling*^^ i^irce 19SJ# nfcw |,;ayiiF-nts orrangeiiftints have beenconclaAed* AccordJ.n^ to the ^-aym'jntB clsBiee in nil the ftgreemcrts since 1959# all i>eyfcient& of couraercial and non-comraerciiol nature between ZnCXo. the other agreement partners ere to effecteu in non-»convertii>lo Indian rupees* only in the case of the tJb»»|, it is atated th.tt all paymenta for cosnmercial and non-c©nirnerclal purposes will be effected in Indian njq^eea* 27 Xn all agreements* the contractinn parties have agreed to give the **N08t Favouri^ Nation Treatm^t* to each otJier in respect of customs duties and other local charges* And there will be no other restrictioiui* hiowever§ this 6oem not agtply to the concessions or adventages# which will be accorded by Mm either government to contiguous countries with the purpose 2S« Chishti* Qp*cit* p*6* 26* Ibid* p*6* 2(7* Zbid* p*6* iZl of facilitatiing frontier trade* preference and advantages accorded by India to eny tJ^lrd country end existing on Deceraiarr 2# 1953 or in reploceriw ^t of f;uc;h preferences as exi&t&d prior to 1947 and any such advantages tiiat Xndia gronte to one or othf?r develOi>lng countri« s« i'hc two yovernmenta of the contxactin^ parties nowmlly eatress theJr willingnes;® to assist In Rrrtinrjin^' for bu«lne»8 contacts in various fields* Xt is* of courts®* undexstood that the resulting contracts* if any, will be made directly between the two parties concerncti. St is also stetcd that they would provide all the facilities for encouraging trade 29 between the countries, iprior to 1955# Indians trade ^ ith East European countries was quite insignificant. Zeq^orts anounted to Ss.33«9 million in 19S3«54# while es^ports were of the order of !Cs«70«9 million* ZR 1970-71* imports end «i%}orts reached the level of to»22S8 million usd Ss«3617 million respectively* i«e« a frowth of 636 percent in the case of iniports and $10 percent in th« case of eaiports* this phMtiomenal esqpansitm of Indian trad* in this region becomes more evident when coai^are it with the rather low •mwiel rate of growth* vis* 6*8 percent of total 28* Chishti* OD.ci^^ p«8« 2f, Zbid« p«9« 28 Indian trado during ti*i» pt-riod. India's trade with otJier major trading pextners like the United states of America and the Unitad Kingdom grew at a imich lower r&te when con^a* red to the rate o£ growth of Indian trade with the i^ast Kuro^^ean countries. For instance* India* s e^^orta to ' .evelqped market incroosod nwch lesa. While esroorts to the doubled during title period, ejiport to the IJK regiJ^tered a raerginaX increase of only It percent. It is# of coureet evident tliat the high rate o£ ea^pansion of trade '.ith t::G East Europt?an reyion is partly accounted Cor lay the low level of India's trcde vjith this region in 1953»54« Table II shows India's inports and eiporto to the East Luropean o untries during the period, 19SV54-i970/71. TABLE - II IHDIA'S TK^JJ WIx^H EAST iSaHuA'iii^K COUNTi^Ii-S (in lakhii ruD«eg> 1953*53 1962-63 1964«65 1967«6a 1968-69 1969-70 1970-71 Iini^ortA 339.0 17345.5 22657.9 22320.0 30957.0 26366.0 22582.0 lii^orts 709.7 14527.1 22646.8 22494.0 26651.0 30767.0 36166.0 Balance •370.0 -2818.4 - 11.1 • 274.0 -4306.0 •2407.0 •13584.0 £>OUKC£i Economic Advi. or to the 6oV( rntnent of India, Basic Statical Material rel ,ting to Foreign Trade.^ 30. Ciiishti, OD.cit, pp, 15-16. 139 Zn terms o£ relative shc>re# t.,is region's in^ortance to India uad btien growiny during this period. The share of ^ese countxiett in eiqporto ^rew from 0,9 percent in 1953-54 to 22*9 nt in 1970-71 while their share in intiOrts increased — from 0.4 percent to 17,9 p rcent in 1969-70# but eliyatly dclined to 14 pcrcenL in 1970-71 es shewn in table XXZ. nmi,h - III PwHCLr/iMit. 0¥ ^illA^.L OF s/wi" UOUOTiai-JS XW AXfc'URTa /aw tiw^lii IN tiLhCT YKARS. iiJCt^ORTb m UkTS 1953-54 0,9 0.4 19S7-U8 4.3 3.7 1960-61 7.5 3.9 1964-65 11.6 11.4 1969-70 21.9 17.9 1970-71 22.9 14.0 SOURCE! Economic Advisor to the Government of India* Basic ;atatical Material relaUmi 31 to Foreign Trade. 31. Zbid« p.l7« 130 The share of Sast £urop<. an count lea In India* a e^tport trade o£ major c(»nmodltie«« whi 4» ifrospects gor East Germanvi In tho ti^ aecados* fifties ana sixties* the trade between the soeiedist block ani^ the developing countries has emerged as a very dynamic factor in world trcu©« India has been foremost ^nong the develogping notions in forging active and growing trade relations with t.he socialist countries* From a mere B30&6 million in 19S3 to &3«4967 million in 1966 is indeed and impressive growth*^^ The history of lndo-Gi3I< Trade Relations whicSi started in 1954 shows definitely favourable results. Frcan tlie im>de8t figure of s&.aa million in 1955« first year of official trade relations between the two countries within the frame work of the first Trade Agreement entered into on October 16#19S4« the turnover 34 increased steadily* In 1958 when :Jhe turnover already amounted to 8s«76 million a supplimentary Agreement was signed in 1956 and it was laid down there that all payments for the future exchange $ . ^pendix - 9 32« Xbid« pp*20*3U 33* "India-fiast Germany, Expanding Trade Pelations"* in Capital Calcuttftf November 6»1969# p«800 34, /ornold Karl Heins* "Indo-GjaR Economic Relations* in l^ink vol«12# Soptemb r 14«1969« p*38* i3i of goods as w«ll as payments for nonocosntnercial purposes have to ba made In Indian only* l^hat was the time when the payment for th& trade between the QlJM and Xndia 35 came into existence. for From that time it has been posaiblo^Zndia to finance all itn^orta from the QiM on the basis of its «»iports earnings to that coantry# This gave moraentura to the Indian ea^orts on the one hend# and on the otherhand# it prevented any chronic iniba- iance of pe^^nt#* On the basis of these trade and payments agre&nonts* the trade turnover had increased steadily*36 in iitecGiTibcr 19S9« a new long-term trode and payments agreement had been concluded between the two countries* Under this agreeiaent the trade turnover increased from Rs» 225 million in 1960 to ESS. 371 million in 1963* 7he agreement signed in New Delhi in iieptember 1964 brought about another increase of turnover tjo i!s*421 million in 1967. In January 1969# long-term traae and ^.ayment agreanent was signed for the first time by government delegations of both sides. According to this agr««<» ment which served as che basis of their economic relations the turnover of es.440 million in 1968« was expected to 35. ^ttchse* H. *Inaia and GDH As Trade Partner** in Eastern Scononast. vol. S3 No. 23, December 5#1969# p. 1067. « Appendix • 6. 36. Ibid# p. 1067. i32 lncr«cuBe £ul:t^er» 37 Due to bilateral trade and payments agceesu^nts^ India's trade with east Germany has risen from a negligible R3*l«87 million in 19S3 to Bs«434 million in 1968^ with i%>orts moving up £rom million to 89*225 million and e^^orts to East Germany increasing frcHQ iis^O^lS million to R3.209 million*. The ©jqpanaion in trade has been acconpanied by progressive diver- sification and a steady increase in the share of non-traditionid items* The principal items of inserts from East Germany are fertilizers* tractors and other agricultural machinery«printiii9 machinery^ rolled stoel products and special stecl6« ae-ray films and other photographic moterials« le£>oratory and scienti- fic in&trucients for educational and research inctitutions« organic and inorganic chemicel8« etc.* In 1966« fertilisers and raw materials constituted 40*7 percent^ machinery 24*7 percent and rolled steel products 1S.8 percent of India's it%:)orts from East Germany* louring 1969 b;aat Gennany has also emerged as a supplier of ships-contracts have Ii^n coiwluded for the import of ships valued at RS.SOO million* On the eaqport slue* the principal items of primairy products were« de<-oiled cakes* 37* Ibid* p.1067* • /^pendix - 13* ** j^pendix 3* 33 Jute manufacturers* tanned hides and skins* casheir kernel* iron ore* tea* coffee* coir yarn toidacoo* mica ana black p«^pper* Manufactured items include cotton textiles* knitting machines* aluminium ingots* radiators* wire rt^es* dry ejnd storage battenr ies* textile machint^ry* linoleum* etc* ^ Ttxe growth of Indo-QDR trade has been <3;uite remarkable over the past 15 years, fiOwever* the volume of trade between the two countries rencijed a substantial size only during the l96o's and more xjarticularly from 1965 onwards. In the early fifties trade with Gi3R* was only two pcrccnt of India's total trade with the liast Kuropeon countries. i3y 1968* this has gone upto eight percent. In 1970* GER becooK: the fourth largest trading partner of India in the region of Eastern Kurc^e* next only to the USSH* Ceechoslovi^ia and Poland, ***Consider&d frcan the side of Giiii* India was iter second largest trading partner amongst the developing countries, only after the United Arab Republic,^® Indo-GUR trade was entirely governed by the bilateral trade •tgreement entered into between the two governments, first agreement between India and am was signed in 1954* providing for trade exchange for a period of 10 years, A second trade «« ^pwidix -4, 38, "India-fiast Germany* fiaqpanding Trade Relations* in Cy>ital, Calcutta* Movendjer 1969r P*BOO, Jtppendix • f* 39, Ba^* V,^thal* •India's Tr^ iW^fi NO, 3* January IS* 1971* p,132. 134 agrMment was* therefore* signed on tiftpteniber 12*1964* with provision for periodical extensions upto January 31* 1969* On January 23* 1969* a third agreement was signed* and tihis was to remain in force xtpto the end of tho year* i«&« December 31* 1971. For the trade protocol for 1970* letters were exch- anged between India and om on October 26*1959* in Berlin,^® Zn 1970 an oflice of Indians Trading R^resentative in om was* established* GIB established its Trade Rqpresenta* tive*s ofi.ice in India quit© soaie tirae ego*^^ In 197D* India was es^loring insni^ato es^s^ort possibilities for cost iron producta* satall files* si.ocJs observers^ electoral pro table drill niachines* textiles ^ates and accesiiories, switches* wayons and refrigerators. The 1969 shopping lists beti/een the two countries provide for the two-way exchange of goods to the extent B&.730 million* a'he future thus holds out hopeful prospects of the steadily increasing level of trade exchanges • But a steady^ ej^ansion of bilateral trade requires evolution of a long-term perspective and intensive es^ploration of possibilities and growth points in the two-wey trade exchan- ges* ^hls* in turn* demands free and frank and in dspth 40* Ibid* p.122* 41* Ibid* p.122* 35 discussions o£ the various issues involved. This was precisely viiBt the sponsors o£ the soniner on "Xndo-GlSi Sconomic Coope* ration* had in mind* The seminar was held in October 1969 in Bombay and presided by fir.Manubhia ahah, had been jointly sponsored by the Indian council of Foreign Trade* All India li&nuSBCturer* B Orgonisi^ation* Indian Institute of Foreign Trade and til© Qiantocr of Foraign Trade of the German Denrocratic Uepublic. Deliberations at tho secainor point to the vast scope for es^p ending the trade between tho two countries and t^uite a £evj 8uggc9tions hcvo been made by the participants to the 42 GeJninar on how to go about the job, Kon^Traditional Increase! India's eaqsorts to CJSl consist of both ^jrimary products as well as manufacures* tanned hides and skins* cashow kernel* tea* coffee* coir yam* tobacco* mica* black pepper and iron ore« Of these* deoiled c^dces* constitute the largest single item.^^ Over the past couple of years* however* the prc^ortion of non-traditional items in India's escorts to GDR has increased from 21*9 percent in 1966 to 35*5 in 196a« The trends in the prc^ortion of traditional and non^traditionai it«ns of India's Aim *'lnd0»sast Germany* Ls^anding Trade Kelations* in Capital Calcutta* Movember 6*1969* p.8ol« • Appendix - ll» 43* Vithal* ffP^cit^ Ptl22» i36 37 esqports to QW. are given in table No.ZV* TABLE * ZV YEm PERCaNTAGt; Sl-IAiiK TOTAL EXPORTS TO QPR FRXil'ilY ^HUDUCJ.S MA14UFACXUE£0 GObSS 1966 78*1 21.. 9 1967 68*, 5 31., S 1966 64., 5 35. S cm bciny a fast gro^fing economy, unOergoing increasimj degree of sqphieticatioiit provides ea^ple opportunities for escorts o£ eiirplo manufactures fron India* Hie main items of aianu£acturet^« in Indians iiat of eaq^orts to am have been, knitting toachine* dry and storage batteries, flanges, wire ropes, faditttors, elui.dniura ingots, printing machinery, textile machinery, lionoleiua and cotton textiles, isj^orts of engineering goods to GOR, have increased considerably over the past four to five years«i from the modest level of just Ss«3«& million in 1964, India's esqports of engineering goods to GSR have increased to )ti»18,4 million in 1968. The Leipsig Zndustrial Fair, regularly organised by the in which India had been a regular and leading participant, have proved to be a very useful channel for introducing Indian engineering prodacts in uCR markets.*® 44. Ibid* p. 122, 45* Ibid* pp« 122-23* 137 Z« RoXe of State TradUUio C^oration in IndcwGDR Trad^t The iJtate Trading uori^ocation has been playing en ln$>ortent roXe In India's tradt with European countries^ Including tae GDR. I'he lr4ports o£ (i^i.'C ftom the GDR hcve steadily declined^ whllo oa^ort have Incre: sed as shown in t!ie Telile V,*® TABLS • V IN Ii®0-GDR TH/UDKI 1966/67'»1969/70 ( E3, millon) If'iPOKTS UKi^OHTS Trade India's Trade %age yTC 'i'rado India's Trade 5iag© 1 2 3/3 3 4 V4 1966-67 9U53 209»1 43.8 4.21 193.9 2*2 1967-.68 34.31 2 IS. 7 3<».l 4.9 203.1 2.4 1968-69 73,61 205.3 35.8 4.9 198.4 2.5 1969-70 SS.fO Ml* 2 22.8 10.87 200.2 5.4 l!SKSS$g.» The state trading Corporation handles ln|}ort from the am in two partsi a> direct lii|>ort8i az^ b) indirect inports* 46* Fatel« "l^ole of j^TC in Indo-^DR Trade^^ in gmtern aconowist« vol,S6« No,7« February 12«1971« p.281. 38 Tho direct ln|>orts o£ from the OJOR consist of mainly GMTidte of potaahf £ertiXieers« caustic potcish end egricul^ turai tractors* v^fith the transfer of inports of muriate of potash and fertilieers to tlie Minerals and Motals Trat ing Corporation* inports frcnn the UI}R was substantially reduced during 1970-7 Zn|>orts of theae utain c<»naioditics during 1967-70 is given in table Ho.VI,^^ TABLE - V2 OTC'S imORTJ (XTBM WISK) (E*million> 1967-68 1968-69 1969-70 initiate o£ potash 46«46 66,95 23.44 Fertiliaers 25.17 2.51 - Caujt»tic potash 3.00 1.46 0.23 'Jfr actors <** 26.59 In addition to the abo^ atentioned direct in^orts* £airly# large inports also arranged by i»TC on "stock and sale** basis through its business assoicates* Xn suc^ 47. Ibid. 149 inports^ L>TC issues licence to its business associates who in many cases were also the agents of the om eupplier*, enedoling tiiereby efficient aftersale^s&rvice to the actual users* The total values of such licences received by from ttie Government of Xnuia during 1967<»70 for various items on "etock and sale" basis ore as In table VII.^^ TABLK - VII (]&• million) YEm VALUE 1307-68 70.73 1906-69 60.70 1909-70 51^.74 The main comraodi ies imported on "stock and sale" basis were printing mechinery« phutographic goodi^# ball« roller and tapper roller* bearings, machine tx>ol8« welding machines* electrical and electronic measuring instruments* cinomatogre^hic films* various chemicals* harvester combines 48. Ibid, p.282. liO and Optical inatruraentB* On "stock and sale* in^orts STC controXs the final sale price to the actual U8er# while after sale and repair service was being givf n by its business ascociates* 49 on ej^orts edde* uTC*b main trad© with the ODR had been in cotton textiles* Jute goodii* machine tools and knlttrear* In 1970« i>TC has been able to introduce in the QIM machat non-tl&dltional itens like radiator* atorege* batteries* locks and padlocdcQ etc» u.>«j)urts of sonie of the major Items during 1967*70 have been as shown in table VZII.®^ TiXBhli - VIII (iis.Biillion> 1967-66 1968-69 1969-70 Tttxtlles 3*20 8.81 footwear 0.18 1.09 Engineering goods 0.05 0.20 0.43 49* Ibid, p*282, 50* Ibid* p*2d3. 41 It would be interesting to note that Indian Chflppals were becoming very popular in tha G13R market* quality was considered to be extremely good and price fully compe- titive* There was very good scop© for selling Indian chi^pals of the design required the GBB» In 1970» leather chappale ei^orta of HTC eggregcted to alx-ut one million rt^^eos. It was understood that these che^ijels wex*e sold in the within a couple of weeks frc»n the date they were put on sale in the shopa#®^ It is a well known fact that STC had put India on the world meg? of es^jorters of rolling stock. As a retmlt of its euccessful e3?>orcs of railway wagons to iiungary and tiouth Korea «• and that too of a substantial value and against conrpetition of developed countries many countries including Lh« GDR have been attracted to look to India for their purchases of railway wagons* 52 The State Trading Corporation had found the am market to be very prospective not only for traditional items but also for the difficult»to«>s 51* Ibid* p*283* 52. Ibid* p*283. 42 face comtjetitlon from developed eountx4es# ^eclally from western iLurope* uitli the ncH^essary infrastxtieture isuilt in India for the manufacture of tnore sc^histicated it«ns« it would be possible to enter the ODR market without much difficulty. The Gm trade was mainly confined to comecon countries accounting for about 80 percent of its total trade. The balance was liith the non-»CoR^con countries* l^owever« preference was given by the GiM to countries like India and the WAR \¥ith which it had bilateral trading agreenient. 54 It could be said thct India's trade with the 6m has reached the lake»off point and with further development of industries in both the countries* close trade contacts S5 already developed will be fxirther strengtliened. II. future of IndQ«<3DR Yradet The foreign trade policy of OlXi in 1970« has undergone some iii|»ortant changes • 1« Foreign trade rights* until recently a monopoly of ir^orts and export agencies operating under the direct super* vision of the Ministry of foreign Trade* have how been 53. Ibid. p. 283. 54. gatel, op.cit. a.283. 5S* Ibid. p.283. 143 granted to a larg* numb .r o£ industria^l £lrin9» Xt Is «mri!iage 2* ULke Hungary and CzaehoaXovedcia* OCR hae also abandoned the official rate of ejcchange for her currency* A vide range of * currency multipliers* has iseen introduced to the official rate* more realistic and applicable to foreign deals*^ •To eiKxmrage es^^orts to certain niarket©, ttie rmiitiplier value was increased above thue allowing the es^orter to earn morti Ostmarka (Gm currency unit) per each dollor or pound earned^ than would be possible at the official rate of exchange* Similarly, in order to restrict in^orta* the value of the laultiplier was decreased* S7 B&sically the es^ansicn of trade in future between the tiifo countries will depened on India's success in marketing manufactured goods in Kast Germany Just as the sast Europeans are finding that the gro>tth in thext* trade with the ifest is linked to the letter's willingness and ability to absorii 56* ViUial* o&.cit. p*ia3* 57* Zbid* p« 1234 44 sickle manufactmrea £rom tho soclcllst countries* But pflaum^ Trade Cojumlssloner of the GDR In Bombay in 1969« aid vioXl to underline that this coun|;cy still dependi on treaitional items for 70 percent of its exports and that Bast Germai^ soioo items finds it difficult to obtain the traditional products even though willing to lauy them. By implication he was pointing his fimjer and rightly too»to India* s neglect of building tip eaq^orttiible surpluses in the tradijM-onal itenis in her enthusiasm, for escorts of non««» traditional goods, ^his is a criticism with ^hich India's jute, tea and otiier traditional industries* which are constantly pleading with the Government to lock sympathetically into e 58 their proiblems, will readily agree* It is necesi>ary« however, for India to recognise the limitations iniierent in a trade agre«aent based on the principle of balancijKj of imports end escorts. India can ex:Pn€i i-s •jcport provided it can increase its iiqport from Bast Germany. This was a point which was raised in the statements made at the seminar iield in Bombay in October 1969, by the Kast German participants such as l^lr.R.Murgott, President of the Chamber voJ,ll9, No.3049, Bombay, October 11,1969 i4d ©f S'oir#*i9n Trade of GDR, Mr.H.fcachse, CotnmcricaX Counsellor of 0I3R an<3 t^r.Pflaunu Mr,Sachso# for instancet eoncG Germany h^d changed its programmes of raanufacture of motor batteries and hand-knitting machine bocause of availability 59 of good products from India* Obviously* mai^isQues will arise in the context of the further yrowth of the trade betwe^ the two cx>Uiitriee» These will need careful consideration and this is why the seminar welco'tn.^ tb«i opening of a ^.rade Representation of India i» GJDR on October 4»1969* the 20 th anniversary of the Rt^ublic* Mr*Hanganethan# who has been posted as Indian Trade Represen* tative« should find himself a busy raan*^^ li9. Ibic^. P%702» 60* Ibid* r.702* 46 Chapter • £ TECHSilCAL RELATIQfi^ Cs^ital alone is nocess:jry« bat not a sufficient condition of developmci^t* Financiiil aid naict be mj|)pleinented by technical assic-tanc© in orcer to create the alcills anfl attitudes required for building a m^dom iadu^^trial 80cie.ty« Mfe^jt Geraiany technical a^sistaiice to India is ^iven by wdy of granti* 2t has been concentrated on four sectors! technical education* agriculture* mass cou^iKuiication* and promotion of escort cind tcmriem.^ 'technical i^ducationt Asaii£»tance to Xndia in technical education sector is provided in two forms! In ianj QO for utu^ and traininf at uerman Universities U Shenoy« ororeign Aid" in TANDON* B«C«(ed) The Third ||.v« Year glan and Indie's Sconomic Growth.P.QL -L4 7 premlei: technological in^^tituted* £'or the purpose of meeting the need for j.;ractlcal. training* yi^riaany furthenaore cooperated with India in eatoblishiny institutions lilce the prototype Production* cuM«>trdining Centre# ukhia in juelhi(which is attached to the National t^maJLl iicale Induatrieu corporation) # the Institute of ta^irujcrinj FeridabadCaar^rana) #the master training institute* Bangalore tind the central staff training and vocational Research Institute in tiowrah. Gcrwnn e%.erts are also engaged in a task of utisost iiit^ortanc© doing the i.rei>aratory work for systctnatising and 2 otandardi»iny vocational education in India* i'he institute was ostabliehed by ihe Government of India in collaboration vith the Qoverm..cnt of the led rcl Republic of Gennany ana was i^iaugra^ed on July 31*1059« By an Act of j^arliament and with ef ect frora l\}ti.X 1962# it has been declared to bo an*insti- tution of national itqportance"* It is a residential institution and is of « non-affiliating type. It has its own catt^ua of about 650 acres,* It was recognised that besides tiie raaintenance of stability by increasing food and fibre su,,,^lie3« a sound agriculttural base is necessary for building up and industrialeelifice on which depends 3 the material and cultural advanceinent of tne country. 2« Konard« Umiimt * Intio- Xn the field of agriculturet Germany at present is assisting the development prog., luiimes in the hill districts of Mandi Kangra (liimachal i^radcsh), o£ Nilgiria(Tamil end Almora (Uttar Pradesh)* Mandi Kan3ra« the first Xndo- German ayricultural ;>roJect founded in 1962# has since won nation-wide reputation, and fcrmjrs from allover the country have been vit«iting the place to study ouDdern tn^^t^iods in agricul'aare# horticulture, animal husbandry, dairy, poultry, and storage and mark^^ting oi agricultural ^.^roduce.i-Sandi in 1963 ^ac a food dcficit district, uithin a £ew year it :tas boon tronsfoxnaed into a surplus area. Pood grain production has doubled, fruit production gone up by almoi^t 1400 porcent4. ' The e3%iantJ.i.on of fruit ana vegetable cultivation, wiiich has been acwioved in iian. i during the paot few y^a u, has also been conyidcrable* *'hus the area covered by fruit culti- to vation rotie from 442 acres in the year 1962«63x8ome ^00 acres in the year 1965«>66* Slurtheriaare, there has been a marked rise in the production of vegetables, for before the i^roject it had nut been po^usiblc to cover local requirements*it c^pears that the Gerinan devulopuiant aids system has a stimulating effect ne e as well* Xn this sector and alswero ien the growing of potatoes, wnera succest^ful eisq^jerietneuts^carried out msing 4* Konard, Ot^.cit* p*8i» i49 German typea of se d potato. It x^roved to be a greet Qdvantag© th«t thu crops involved were of the kind with & which the Ucroians had h.id afl|;>le < a^eriencc* The Zndo^crman agricultural development project was first introduced in Mandi diaurict in 1962. for another project in ililgiris(T«miX Hadu)* the agtecment was eiyned between India and west Gerrncjny in June 1966. The project for Mmora District in Uttar Pradesh has ita origin in an Indo-Ger.nan FAO fertiliasere sup^jly project, underwhich about 1000 tomies of fertilizera were (oade available in i»ecemb£r 196?/ iHic tliird field of Geraian technical assistance to India television* Television is x^otentially the most important mass corwnuaicatiua medium for educating the rural peoyl® of India* for oioaemising their a^tituoes aiul winning them over to family planning and the ai^lication of now fanning tec^ni* ques.It can also be used for educational ^^urposes in schools and colleges* Television* in short* can play a crucial role in the process of Indians develqpxa<.nt towards a modern industrial society* Inaia establis.ied her first television studio in 5* ottoshilleri "Farm Aid" in Commerce* vol* 118* No* 3034* Bombay* June 28*1969* p*64* 6* lUe Times of Indian Wew Delhi* August 1*1969* 50 mmy Delhi in 196S« Germany gave as a gift the entire trans* mission equipment and a.tached Ce man technical advisors to tne studio* After the success of i;>elhi project* a new agree- ment wafe signed between Ziidia and G rmany on October 29 # 1969 which provioes £or setting a second television station in Sotnbay witli relay facilities in i^oona* A Gcmum e^ert te^» furtiifcrwore, hove trained the Indian staff in programme 7 presentation teclmiques* The «^ntiro foreign exc^iange coat of the project would thus bo met by the West Ger^aan 6ov-rnacnt# which has offered the TV o<3Uipinent es a gift* The counterpart cs^enditure in rupees would be incurred ia^ the Govemmcnt of Inaia*The cost of of^ij^irieut to be received ^ way of gift was £3*11*30 nULllion* ihc ^raiismittor ^t Bo na will not be on indei?endcnt TV station but will relay projrarmnes o-iginated at Bombay* For this pur- pose a micro-wave link between Bombay and i?oona# being set up by the i3epartin_nt of Goniraunlcationt have used* The trans- niter at Foona is t-us being planned as a part of the techni- cal configuration of the Boirdbay station* The station at Bombay would serve th« whole of Gjreater Bombay, its industrial environs and some rural areas of Thana end Colaba districts* 7* lConard« Qp^cit. p*&6* 51 The relflor transmiter at Poona would strve the city of Poona^ its industrial environs and rural are^ s around*The total areas round Boaibe^ and Poona to be served oy this conplex o is likely to be about 10*000 square kilometers* iv* ProBPtion of Kamort and XourisnH The latest projects o£ Qerman technical assistance* £inally ore tliose Wwich are designed to help India earn fortiign excliange« The IndoMSemusn Engineering Uxport I'romotion prnject eiras at ea^^anding Indie's engineering escort to Gurinany* A second ^.^roject serves the purpose o£ furthering tourism to India* The escort promotion projcct has entered its second Fhase* During the first phase* eng>hasis lay on making Indian firms acquainted uith the remireraents of the German markets for engineering goods and on trainitig Indian personnel in esqport proiaotion technicnies.In the second phase* estdk»lishing of contracts between Ini^^ian es^orters and German in|>orter8 and bringing ea90ut the conclusion of Q •J^ort contracts would nove into t^te centre* India and west Germany agreed on April 16*19S7 to give all possible facilities* consi. tant with th&ir iitport and 8* The Times of India* New Oelhi* October 30*1969. 9. betis* OP«cit. p*86* 52 esqport reguletlons» to enlarge the scope of trade and to promote commercial contacts between the two coai}trle8*Thi8 ami^inced at the coiicluaion o£ tiie tvo week talks between the ofificlalG Weet German delegation and representatives of the Grovern^nent of India* In the field of technical essistance# the two Ciiovernments have fiurived to strengtnen their cooperation and nmut Wenuany had given assistance for and adviced on India's econoudc dev l(^i»ent*ln thi& context a group of Indian esqporters and industrialist© visit, d Kest Gcrnjai^ to stu^ rocrket condi- tions with a view to establishing close links iiith German inyortero. im Indian trade delegation led bar the Director General of Foruign rrade notjotiated an agreement in Bonn on October 30#19 59 providing for the setting up of a conrai- ssion to t3xamine the possibilities of increasing Indian e^qport to West C4ermany* The prcqposed conanission would work in Mew Delhi and Bonn alternately* ^^ The two countries signed a protocol in £lew Delhi on JDeceiBber 14«1967 to provide West Uenrian assistance to i^et vep eaqjort of Indian cngineerii^ goods to West Guiman I4arkcts* 10« The 8taf sifiMi. Mew Delhi, April 17,1957, il* The Stateeroan^ Calcutta, October 31,1959, 53 The agrtmemit was scheduled to f^arate for a period of two years and was expected to cost about Rs*400 loilllon to be snared between the two GovcttuiKtnt©* Th^ alBO agreed that there was need to strengthen and extend cao^^eration between the two countrie£j in the e€ononac« Industrial and consnercial fieldt. on Warch ZQ^lB&^m twchnical aid profit for the proQtotion ot tourit^tn in Incda# and protiK:>tion o£ Indian engineeriny e:^ort was deciued to be conairiered by West Oeru.any« 12 v>lncto«"Genr.an Collaboration in Industryi Zndo« 12. Hin^stfyi TimfS 0 Mew Delhi* 54 such an opportunity. kvitJi the sanctioning of assistance of the magnlUiue o£ m. 660 million hy the Coverranent of the Federal Republic of Germany to the Indian Oovcrnnent# the l>lg six of German heavy lndhi4 Gerncn eided Kourkela vas the flr-t steel plent to be s^ t up in tlia public uectort fcait that Is not Its only distinction* ^ greater disctinctlon Is that it Ic the ma.vt modern ett el plant in InCla incorporc tin^ tiio njost advance technology of steel«>m^:in^ called the L»o«procec&* ^^It was described by Javiahtrlal i^ehru as "the sytiibol of new India**. It Is* &t the saiQcj time the synibol of Indo< The Indian Qovernsnunt founded a "private" firin« tha Hindui;.tan uteel(i*rlvale> Ltd.of Kanchl on febru ry 19«1954 to act as the consortium's partner. Gradually. Hlndu;>tan 5teel i^rew into the All India i^^teel works of the "public sector". Having found cooperation between the Gennon and Indian partners exanplary. Later on the Indian Guverrancnt increased the scope 13. ^iehta* a,i<. *Xndo. German Col aboratlon in Industry* in commerce* vol.ll8# Ho.3034*Bombay. JUne 28.1969. p. 5. 14. Haliantl. P.C. *ftourkela*8 esq^ansion programme* in Commerce J, Prakash. Om. * Industrial Policy* in Tandon. ^p.clt. p. ISO. i55' of Hindustan op rations since contraote had m on- while been signed with the ^soviet for a steel mill in &U)abi (Fe&ruary and with Britain in DurgapurC October 1956), In March 19 57^ riinduetan bteel Lta. Orcpi.ea the word ifi privo'ce from itii name, ®tie agreement was signed for ^"^ourkela Steel Plant on /Uituot 15#19S3 in Bonn between the Indian Governsitent end of a combine o£ big Bint heavy German industries* Xn Eourkela wliere work had proceeded smoothly^ the first furnace began c>perv.tin.j on i'chravxy 3#1959«'x^he Indian Minister for produc- tion giving detailis of tho agreeiiaent on <^aaguat 7A, 1953t saiu that Znaia haa contacts d interest.,d parties in the Uwii* ariwon and in the past few years in connection i/ith the new steel pl German IncJtostrial onte£prises have concluded several other contracts with the Indian partners* among th«sii one between Tata engineering and locomotive convanyCxjsliCO) and Daitnl-r Benm of Germany for the protiuction r-lercedes - Bena motor loriies in India on March 2«19S4« The two Governments 16, Leifer* waiters India and The Germans# p.263. 17, IMd, p,264. 56 were pleased to endorse th<» deal and today ules«l trucks from the Vata i^ercedes t^orks in <7an)9: ie<^ttr are a familiar aigiit along lnaia*8 road* ^uiother ooncract was signed in l^ew iXQlhi on f^ugust 6#1954 that charged the German firms of Bare&cl and .^unze with the construction of the Qanihal rail an^ road tumiel* in the Jabalpur and Kax^ur regions^ enginecra of the i-im Machine works .;ave been active since 'ihe otlittc projects by Gerinan financial Qsoi^tance include the Uouir^ela Fertilizer planttca^^acity 0000 cone- of CalciuiQ mim^.iiura nitre\:e># Idi© iJicyveli Li^ni::e tiinea tJri^ettiny ^bnt anu fertiliser ylantt© million tons of Lignite: 3#80#0U0 tona cerlKjnized briqueths and X52tf000 tonii of uxea)* the i^iiiure Iron and ;ite6l k»orks Bhadravati(77«000 tons of alloys' and Ujjecial steels)« the K.alinya Iron orkiiCIOO»OQO tons of pig iron)* and the Govern* ment ii^lectric Factory^ Banglomi(tr nsfarmers^ switchgears* 19 motors etc.). There are many other coajpaniee hose very neries express their 2ndo-uermon partnership, like L.indhu--Hochticf which constructed the £.ort of Kandlai 3ajaj Tenpo Ltd# founded in 10. Uefer, ^^cit. p.263# 19. Konard* Pt 84. 157 195B« BORa>ay# Manufactures ot a.lght conmercial vehicle. The factoxy is situated near Poona and is licenced to >i>anu£acture 12#000 three tAieeXera/iour wheelers per annum it and in addition to^6000 Diesel cnyiae per annum*Fritz Wenner (private) Ltd* tnakerw of machino tool si i iindustan Dowidat irools l#td»£»ayer(Zndia) Ltd. incorporated in 1958 at Bombay a ^^rivate Ltd.Com.^anyi in the nam of Mayer j^ro*Chem«(F} Ltd** everted into a public ltd.Coa|pany in 19601 and vfas changed to the prei-ent name in May 19631 aoechiit JDyes and Chemicale reyiotcred in 1958 at Bombayi iiarai^ai i'lerck L^. rctjietcrod in 1958 in Ahmad AS alreaviy noted delegation of West German industrialist anu bankers visited India in January 197a»if 20. Wffo^ffi ypd^oty^^ qi^i.^ of 1978-79* p.36, 69* 108, 158 Increased West German Imrciitmeat and flow of technical Jcnowhotf/ to Indlal 2# wettiny up of joint venturer in t countrleal i-Totnotlng a study to rcduce tiia gsp In the trad© balncol 4. proiiiotXi% of Indian exports to We. t Gi.rmany# 5* wettlay Uij O£ anclllaried in India* With approximately 450 Joint ventures in india. West Geruiai^ reaniks tliir after U»K« and total prxvate we£»t Cerraan inve^tiiient anrounts to millloniinclucilng ;>ortfolio investment) #net Invcstiaent conies t^ alxjut .300 million.west German industry in India ia mainly active in three fields which also indicates the pattern of future inveiitmeni^tcel and heavy engineering!electrical goods and electronics; c.iomical and pharmaceutical industrfes.lt aeeras that the majo- rity of IndoMjerman Joint ventures by 1970 have over come the recent recession and are doing fairly well the most ini^ortant. collaldoratlons arei 21 1* aieaiens IndiaCflombav) who ^ roduce electric motors« trans* formers* switchgears*cables and electro medical equipment in collaborati-on with ^iemi^ns Germain's largest manufactures of electrical goods ..ith 260.000 enploye s and a turnover of 10#000 million mfes, 2«0000 million) .oieraens India in the year 21, Haubold»E,F«K. <*G«rm(in investment in India* in HfGhX, qp.cit. p.141. 59 1970 achieved a turnover of wellover fis«200 million* Zt has a staff of 4000 out of which only 20% were Germans which proves itsintt n«»tional orientation. ^Siemens In ia have made coni:iiderable with the assistance of the German group* in e^^ortlno cables* orator an i'he Group occupied a prc^inent position in the inter- natio. al thcadcel business* it is one of tiie ten largest Cherai- ccl c^rtoaniQS in tho wrld* iiu-ed on a renrjo of over 5000 iprociuctj* (jroup solas in I96is e.ccec-cd DM 5500 niillion.More tiian haJ.£ of tnis business done in 136 countries outsida Geruiariy* .i^^a t -rora » wi' <\a* tiie ijcrent organisctlon with its vast intiuiitrial complex in j;iudwiysha.:en* the group con^t^ri- sea a lar^c- nuuiixr o£ subsidiary and asaociated c^n^anic^js through out the worlw.. activity in Inoia ente~ed a new phase in 1960* when the Bi^F Group acquired a intere t in K«A*c:ole* Ltd«« v^hose name: was later c.ian<.,ed to Indoplast Liiitited* in 1967* the tiliare cajf>ital v.as increased from as, 2 million to million* coid at Uie iimms, tiiTte thti cou^an^ became a public concern. In the saiae year tiie coat.any c^.anged its nat'ik. to U^E India JUimited* 22* Ibid* p. 142 and COM--norcc« op»cit* p*51. 60 D ring the 1969 conpany was raanufaoturlny three types of Chemical products* namely* styroperie^ipandable pols^rene}* therinocoleCi Olyiitrene foam) and BasyntanCsy^iothctic lanning agents)* It also feOsricated end saled f: Smmk.WL£Qm (isanoalore) • ihe Hew Government i,lectric l actory Ltd»(i Obetweef the n largessupplyt projectand demands of. <;^4?arIndoM3crinat frota nthat collaburation* MbLF rOi^rcsjent. 24 s one MQUF Ltd* started originally as a flysore Oovernmmt concern* It was later deciaed to convert tJhi' factory into a limited co%>any inorder to facilitate working of a venture of this nature and magnitude on coiuiKircicl lines*Accordingly*NGKP Ltd* has started functioning as a public limited con^mny with effect from October 1*1965*For the manufacture of transfernttrs switchgear and iBotora* the original coi%>any in 1961 had concluded a collaboration agreement witti AEO*Jfranfurt/i^^]>li^* one of West Germany's big^^est concerns producing a vast range of electrical equi];-raent from nuclear powf r station to house hold 23* Commerce* vol*118* Ho*3034« Bombay, June 28*1969* p*37« 24* Ibid, p,49. i6i ilppXianceStt i/nder the technical colIalK>ration agrcMment^ the scope o£ which had been later on so as to include ntore products and a large installed capacity^ Ai^ have provi- ded all the ley outs of the factory* designs* drawing^produo- tion* techniques* training i;erson-el in their factories in Oertnany* etc« Ttiey have also c^^uted tlie required number of Geruon specialists for the Initial stages of production. 35 Initially hr.d an authorised coital o£ GS«57*5 million* The total estimated C€£>ital cost of the project was &s*77*7 \ pillioauuit of this* the cout of machinery was estimated ^ith a foreign ©xcUenge component of R3#27*5 ndllion C»X«F« ii!|>ort licenses to the extent of g3«25»3 million had been made avai- lable for pss^mont out of (.est Geriticn credit granted to India* L'valuating in detail the conce.pt and t ie it%>l0a^nwacion of this raillion project gives a clear idea of the contri- bution it is going to make towards industrial develc^mcnt in India* NOEF consists of four facto ies occupying 60*000 sq«ni* including aaninistration building*:^^ a> Ihe general saopdSOOO 6q*m>, wliicli is iik ant for general purposes sudi as training centre with sufficient capecity to 25* Ibid* p*49* 26* lMd« p*50* 62 the required artisanii* she«t metal shqps produce trans- former tank8» switchboard cubicles* macnine shop for produo* tlon of ccKi^onents for switchgear« transformer and RK^torSt tool room for preparing tools* Ji^js and fixtures* a platii^r &A€tp and general stores* b> At the transformer factory(ll*500 sq*m»> Almost all the machines and ec^uipment except for the 75 ton crane and one va<^ chaa&>8r have been installed^korks on the design and production of dis^ilsation transformers up to 1600 Kva are in various Btages and the first batch of six transformers of 100 kva were tested ond dii^atche^These tran8£ormcr8 ere of AEG's detiign usimj ^ minimum of scarce mt.terials such as steel #ccpper end oil most of which is iiciported* c) The motor factory(20#6Q0 sq*m> has started regular produc* tion of nK>tor8 upto 30 h.p. This first phase of production will be follov^ed by the production of i»>tors upto 250 hp and then upto 1#S00 6«6 kv* d) The switchgoar factory buildings (4 200 sq«m*) have been con|>leted* In the switchgear field* production of fuse bases and NKC fuses* load breakc^rs* drum switches and air circuit breakers for use. on low voltage distrilMition system have been taken 63 Jf^e^nken Ift^if B^edsiarh^Ntar ^fw Pfflhi? i ^t was established with financial and tachnical collabora* tion o£ telefunken AU of liTast Germany in 1966 and started pro* duotion in 1967* Under tht/ plans the coni^any may in future product tai;>e recorders^ record players and T»V» sets as well* Telefunlcen India hss so far introduced to the Indian marJeet five radio nK>delo in various ^.rice clas.es and was the first firmto mcrket a two band sut in the price range of Bi»l65.3*7 5« Html at Kansbahal near ftouclcela* Orissai im Indo«-German ventures, ^^romoted Larsesi end Tout»:o Ltd* end three leading n^est Ueraian CO!i^anies<-Quteiioffnangshuette stcrtkrade mt i^eiraricli Koppcrs end J#M#Voith«»UTi4AL is helpix^? to strengthen and diversify the country's industrial base*It is bringing in technolugy and know»how# suypplyiiig sophisticated plant ana equipioent for the es^ansion and initiation of con|>lex industrial projects and building up a core of manage me nt and technical personnel* itie location was choosen for its projdmity to the Hourkela steel plant* which incidently is «M>ng th. cowpminY*a r^^gular cust<:»iM»rs»It was also tiioug t that OTMAL would serve the n^eds of satellite industries that were esipected to develop around a steel plant of Kourkela*s magnitude* 26 27* Hauboldl ou.cit# p*142* 28* Commerce^ o^«clt, p«53* 64 mch of What UT^ML has produced has h^en made in the country £or the first time* The con%>any i^ecialises in the design and isanufacture of e(;piip:nent for the iron and steal* eomenty i»ininy« pulp and paper* ctht.r inctustriew and heavy and technological structuraXs and steel bridges,une of the first major orders executed was 70 percent o£ the structurals and pXate work for the fourth blast furnance of the RouTkela steel plant*Other supplies made to Rourkeia include a einter~ ing plaat» structurals for tine Coke oven unit* soiOcing pit and by-product plant. is the largest engineering factory in Orisam and by standard a very elaborate conplex* It is sited on a plot of over 620 acres and an additional 340 acres are being acquired for esqpansion* The works include a fabrication shop for structural steel work; and vesselsi a machine shop inclu- ding ancillary installations such as fitters shop^plunKbers shop and apprentices shopl and a foundary*^^ 29. Zbid, p«S3« 30, Zbid* p. 54* 65 Xt l8 «££orts fiuch as these that have bicought Zndiit close to an intern^iiata stage of aavelo^sient^The measure wad rate of progress from aere on will depend on how much and how fast India is able to bring up technology to a level cofliaensurate with the needU^ foitho ojtliaum utilisation of the considerable opacity that the nachine^building in<3ustry has cr atedcFor the fuller utilisation of this c€£>acity the gop in tercns of assign and enginaoiring has to be tnet«|ynt ividia Zndia( Bangalore) is producing tool-bitc with as much indigenous content as possible in collaboration with «< 7* TelcetJamstiedpur) i Started as a collaboration between Tatas and Oaiioler Bens of otuttgart* west uera.any and can ho considered as one of ^he oldest and most successful Zndo«German joint ventures* 31* Hauboldf £.F,K« German Investment in Zndia" in DAOALZ, op.cit. p«l43« 66 '*a'he marriage* as Vic^-Cnairman of Tatas» tioolgaokar once called it« has so far produced inore than 1»S lakha trucX.s' 32 and buses under the Tata->it4ercedes Bens trade mark* xn the i^ubllc sector* there are landmarks of Indo-German collaboration, Kourkela stocl plant was the first« and the only pant which exclusively produced flat steel till 1970# whicli waa ®ich in dciiioxid bjth in the domestic and the cavort marksta* A ViestM^erman consortium of world^fanKJUS industrial firuia like krupp# Daumge cind Voeet provided chc initial know- how end technology* and thu@# the best of the i^est Qeriaan steel inOistry btcuuic av, i I able to India, At Uourkcla i^inCustan i^teul has produced steely bteelmen end a hand of trained engineers, who can deaitjn new tuotalluryi- cal plants, s.ithin 10 years, Uhe ex^ansi n of this t.teal plant from 1 to 1«U million toneft was taken in hand cmd de^i^iied and cotcpleted tAndcr the sut-^Grvielon of Indian engineers, with the 33 continuiiifi i.elp of etjaipaent manufactures of ^vest Germany. Mysure Iron aiid Steel Ltd. at ahadravati, w. lch is currently beiny converted into an alloy steel plant and started produc- tion during 1970. The successful operation of the steel plant and the increasing demand in the country for Sijecial steels 32. xbid. p. 143. 33. *Kour^iela today** in op.cit#p.i3. 67 had pronpted th« Government to mxpmd the capacity of the ffteeX plant for the production of alloy and fecial steela* At soon as permission was accorded £or this e^^ansion ptoqcmemt the %8ore Iron sotd titeel Ltd* negotiated with the hest German Glovernmeut for the necessary financial assistance £or the estoblishmunt o£ an alloy steel jr lent with the tedinical cooy ration and assistance of Ger.r>an industries.^ The West Qercmn Reconstruction tioan Corporation agreed for a luan of IM 60 million MZoti is the first steel plant in India which has •:^orted technical know-how to a neighbouring country^ 34« Haobold* EmW,hm *Alloy steelitlie exaiqple Bhaaravati** in g^apirc^t 3S« Xbid« P.3U 68 C«yion» An ofreement was signed between HiSLt «nd the Ceylon Government for e&ta]i»lii»iilijy a steel ioun<3ary there* This will necessitate ea^orting castings* and Kltii, is fully equipi^ed to meet this demand* X'he expanded steel plant in Bhadravati for the niauufacturo of alloy and special steels to any strident specifications c^^ens a new cn&pt&x in the industrial x^rogresB of Xndia* iiconoaiic relations Ijetf/een India and cui, hc3V© not been liniited to mere trade exoi;ange between the two countries* being well advanced in the field of industrial develop** ment« has extended t'^ohnical col J al)oration in various industrial fields in Xndia« and therein yelped the develop«> ment of industries in this country* ucuae of the inportant industrial technical collaborati.ins Itetween and India are listed below* ^^ M* Ibid* p. 31* 37* BABU* v*vitaal# "India's Trade with Gm* in |fastern l^^n^stp. vol*S6, No*3# January 15,1971, p.ISSZ 179 PRODUQW ZNPIAM lUWtimiAL COHCLKN HKCLIVXIXS COLL^uRATZOK Im Haonine tools and prin* iHn&aBtm Machine Tools (HMX) ting machinc8« 2* Cobles iPremier cables Ltd«£iouthern cable Oarporatiotim 3* Electric equipntent i^lectrical construction and Ecisipment Coirijaz^ Ltd* 4* lAieldlng electrodes mc t^lectrodes L 5. cold storage, re£rigera^ ^^^ tion and aiir«condltluning* Tractors Indian Agro l^achines Con£ectionr.try KachineiTr Kavalt^aon u.ugar Form I*td» 8» Office aquipiaent GodreJ Industrie® Ltd. 9# S'recision measuring tools Meters end Instruments i^vt«Ltd* lO»Industrial rice mill oe i^metdndia Pvt«Ltd.) machinery* 11* Inflatable life*ra£ts Aero Marine Indtostries Fvt*Ltd* ia*Vlanw/e]qplosion proof* Kajendra Electric Motor Industries* motors* l3«Xf>«ay contest media Jefson Pel & Co* 70 The recent highlights ot the economic relations Tamtwmm GlJk and India were the eucceasful conciw«ion of contractB on th^e supply of tractors for Indiaji agriculture and above all on the »upi:ly of freighters for tlie Indian njerchtjit fleets 1?he fai-it devtiloi-^lng and -ighly i^rociuctive ship building laduotry of the GDR attracted the Indian ship.iny conyanieSt and negotiations started in 1963 between Indian shi^) owners and shi^) building industry of the UOi for the delievt^ry of cargo ve-«els to India* 38 The Gm rariHa seconu only to JatL^asi in jMiiXding and finishing ve'^&els in t!ie world* On Octob(i>r 31« 1968 a contract uaa concluded between tiie -cindi© ^team Navigation Com any# Bombay* and ..xiB wa nowwcrft Yard* Uo. tock* for the construction of four jshiys* Xhe yard had ext«3nded full cooperation in deve- loping a de sign to suit the i>cindia com ariy's requirements for tueir advanced type Liner shios* /p^jxroval of both the governs ment of UDK and tiie governiaent of India we re received* Delievery of these ves^iels was started in otiddle of 1970 and was oos|>leted by 1971* Pay. .i^nt for Lae ships was effected under the Rupee fi^fment agreeiRont* 36* £iachse, H* "India and GDK As Trade Partner* in ipastern yc^noraist. vol* S3* JSecember 5«1969« p*1068* 39* Arnold* Karl Heins* "indo«G£a i:;cononiic Kelotions" in itjjfil* vol* 12* £i>^tember 14*1969* p. 33* 171 The vessels under contract for India art. aqaij^ed %rith the iatest technical achieveusttnts and are eaqpectcd to aet the pace for th« further technical development. The ship wiiida was delievered to the shipping corporation of India* for instance^ has a sp«ed of over 21 Kn^ts as against the norroal ^eed of about 16-»17 knots only* v^hen delivered the&e ships were the fastest vessels in the Indian merchant fleet* i^art fi^m the i^igh these ships ..ad many other otod^m features. They are container»ori&nted and were i^ecielJy equipped v/ith gear for ftuat loodiny and unloading operations. They were also fitted with thti latest equipment to in^jrove tho efficiency in turnaround cind were also able to carry pel '-ctiued go'jds and heavy imaiotriol squipment. Besides thlc the veisi^els were provided with large refregerated i^ace to ^erve the ojqpandlng X.idlan exports of frosen shrinks* and other sea products and perishabla food stuff.*® The GDR h< s larfe requirements of freifht cars to iwet its increased transport needs. The local ci^acity was limited and sulMitantial ini^orts ware planned. The £»tate Trading Corporation hes been in close touch with the GUR railways and procuring crganisations.A delegation of both organise* tions visited India in May«Jttne of 1970 at the invitation 40. ame&ismt op.ci^. p. 10(8. Liz of ii'SCm Trjoy v/fc-re i«|>res»ed the Industary and the cjuaXity o£ the produce and were fully satisfied that JTC \'}oaXv be able to builu rolling stock* to meet ttieir specifications* Their detailed technical ^ecifications »ave been obtained. The State Trading Cosporction yave them a coR} R. ilway t^eaons and ^tomotfiliS^^^ Qmi has 16108 kiloiBeters of railway lines and its road mileage wa£» 45530 kilometers* ao in 1969» Ko-t of ucr trade io Ciarried on by th^ rail and road transport* India* which Is beco»iiin« a leading stj^plier of railway wagons and rolling stock* e.ipuld ejqjlor© citkv market for this puTj^iOSe* In the la&t aay^; o£ tae X970 oua hc d c^inced interest in buying wa.^ons from Znuia* especially since Zndia had concluded contracts with foland and .xungary for tlie sxnply of 500 and 1000 wagons respectively* 42 Besides railways wagoas* Indian es^orters have good sccpe for marketing automobile aocillaries into QiM market* 41. Fatel, C.B* "Role of i>TC in Indo-Ui3R Trade" in Eastern economist* vol* 56* No*7* Februa ry 12*1971* p*2B3; 42* Babu* V*Vlhtal, "India's Trade with GDR" in pastern economist* vol*56* No.3 January 15* 1 71* p*124. 73 At the Xfeiiizig Fair contracts t#ere signed £or th« esfport o£ X>rintintf machinery to QDU« ISF Xnaian st^piiers, Zt is one o£ the aiajor items in GDR in^orto list*Indian i.mchine tool* manufactures ehouia# therefore* eacplore the 43 poseibili.ies of eat^orts to uoi markets* 'i?he electro-technical and electronics i® the fastest growing industry in GDi^, with a cjrot^th ratt) of about 13*4 pcrcont* ^niia providet» excellent prospects for Indie's esjports to Gis; of ©witdigcar©, electric niotors* light fillings* ary and storage batterier, torches anti otlit-r electricfd 900 um!. The bias in favour of hecvy industries has necessitated Qm to ini>ort in large quantities items like structural and industrial ores such as mattnanese and icon ore* India has been trying to ej|)and exports of these items to aiMm The growing consuiiiption of iron ore in Uiii as « result of increasing industrial activity was iaound to raise her demand for roangnese ore a).so» 45 ZX Ibid p« 123* 44. Ibid»p,123* 45. IbiQUp»123* 174 ot LHpg^n yafft The L«lp2l9 regularly organised Iiy the Govern* ment ot the plays « key role in the development o£ foreign trade end commerce* During the fair it has become rather customary to enter into contracts of purciiaae ^d uale of a wide variety of x^^ouucts bet»^een GDH and the particijjating coantrieo«Alrnoi3t the entire product jjx'ofile of the GiSi econon^ is exhibited at uhe feir# wnich has long attained the status of one of the moot popular interna- tional industrial fairs* Inciia has all elon<:;j been a lea61no end r guler perti- cijjant in tliis Fair* However, time has come for India to plan its participation in tiiio fair with a more deliberate effort to promote Indian e2?ports to rather tiian aiming at generel publicity and exhibition of Indian productst To achieve this, Indian participation should be more selective and be planned with more attention to the trode promotional ai^ects* with an eye on QSR market in particular*'*® 46. Babu^ OD.cit* p»l24# 75 i'he pxoaicts Xlatttd earXier having potential for «>q^ort8 to QiMt should be 8p«clU.Iy eid^ibitttd at this Fair* and aurln^ the fair efforts should be made to secure contracts £rosi GUi buysrs for their supplies* 47 11* Beneficial, fciffectsi bcn&flclaX effects of tlie bilateral economic end t^ciinlcaJt relations becaiae a^.parent In spring 1969 when th^re woo an acute shortage of micey films In India* within the shorteat possible tline* the QiM had found It possible to meet this shortage by an Immediate st^ply of je-ray films to the extent of 0,5 nillllon* ifhe first consignment was directly fXo*wn to Bonibay as It was urgently needed* 48 47* Ibid* p*124* 46« Sachse* H* **Indla and GJDk As Tradtt ^'artner** In Eastern Bconowlst^ vol* 53, Ho. 23, Deceniber 5,1969, p.1067* 76 COHCLUalON This is a modest atten^t to survey the cooperative reXationsiiip between India and the two German states i«e« Federal Rc^ablic of Germany and the German Democratic aepublic. This relationship ha0 acquired special meaning and significance after 1958, By the time India Ix^came independent in 1947« Germany was alrea^ divided and there was also a Berlin question in tarhich India had hardly any interest, ^tiatever interest this question evoked in India it was purely academic* when It was^th© two German states attained sovereign states in 1955«West Germany under Western patronage and Bas^t Germany under Russian influence-that India started having relations with the two ccmntries^ and gradually develc^ed considerable economic* political and cultural ties with th«ii« Industrial and agricultural proyress in first decade of the development tended to strengthen the economic foundation* of India* despite droughts and other constraints. Production increased* living standards inproved and esqports es^anded, Furtaer progress was ejqpected to be re^id provided political 187 and economic policies could be tailored to efficient mobilisation of internal resources^ human and material^ and a strengtiiening of colliedaorationa with the advanced nations* The relationship between the developing end the developed nations has been continuously en|>hasi«ed# stressed and debated at various bilateral^ tmiltilateral and international gatherings. In the last decade Slorth-So^ith dialogue has been underlined in UiDCTAD b|r the Club of Homo and the group of Seventy Seven* Foreign aid has been obtained in many waysi 1?hrough gifts« grants* short term and long term loans# technical assistance and foreign excaentje credits to meet trade deficits* The developing countries i/ere helped through the transfer of public resources by the advanced countries* buch a process of collaboration not only in^^roved tibe economic growth of the developing countries but also influenced the pattern of change in their social and political structure in the form of maximization of economic and social welfare through the attainment of optimum production and equitable distribution of resources among the different strata of their reflective societies* India was one of the principal developing countries which acquired and used many tonnes of fertiliasers* foodgrains 78 equlpmentt plants* assistance In setting up schools* colleges* universities* hespltal btrds* irrigation projects* roads and the like* India* in her initial efforts to acquire aid for her development programmes* had to heavily rely on the United States and the tiovlet Union* ait the aid from the two super powers was invariably accoiq?anled by political strings* which India tried to avoid* For this she was in search of alternatives for the diversification of her aid-trade relations* European Community end in it* West OermQny provided tixe. direction for / such diversification where the contagion of political strings was at its lowest* Moreover* in India • Pi^G relations the erayhasis was singly on economic ana technological relations coupled with the bejiidn cul Lural connection* Cooperation between India and we&t Germai^ has witnessed the trust and optimism in the realm of international economic relations* Contacts at different levelsi incllvidual* governmental an^ coxporational determine the form end success* and create permanentiiniks* Furtrxer* the bilateral partnership of India and West Germany is sponsored by large multilateral orgejilsations* i7G i*e» world Banik and IDA* which are Jointly responsible for helping finance India's Five Yeor Plans.Federal Re^uhlic of Germany makes si^le confuributions to mentioned agencies as well as othor subsidiary organisations of the United Nations and supranational establishments in providing internctlonal economic aid* Thus both the countries soon discovered areas of mutual 4 collaboration. West-Genaany was contracted to establish various iniportant industries in Zndial The setting u^ of a steel Plant at Bourkela in 1957, was the beginning of the nultifarious and iiqportant relationship with West Germany which made her to be ranked as Third largest foreign investor in the country after U.K. end U.ti.A.^ The technical assistance and credit facilities as also the large export of ce^jital equipment enhanced the in^ortance of West Germany to the Indian econon^^ industry and agriculture. India succeeded in increasing the steel production at home« with negotiations with the German co%janies« As early as 19S3# the Government of India entered into an agreement with West Gerroan conibine of Krupp and Oemag^ and a cotf^BXty under the style of 1. £>upra» P«93. 80 Hindustan steel Ltd* was promoted on Decendbc r 21« 1953. The revised target o£ this coQ^>any was one million ton capacityi and the plant was then e>^ected to coct RS, 1700 million*^ t!dhencver# India desired the need o£ technical assistance for building up new industries and also to i{T|>rove the existing ones# the Government o£ FRG enthusiastically putforth the insurance of placing the estperience of German conftanies* In this regard the two Governments tended to held each other in promoting contacts in variety of spheres. Hence any accord between two parties could be directly cOiicluded* keeping in view tlic existing foreign currency reguletions, These agrecmentR were finalised in Hew Delhi at the end of 1952 and the establish- ment of an Zndo< The German imports from India were rather marginal till 1952 which the German escorts to India showed an upward trend. It was mainly due to India's policy of buying in German^loc«caoo tivesf rolling stocks* capital equipment and machinery* The milestone* in this context was the Ind»>« 2* v»upra« p*fSd. 81 During the Second five Year Plan, the average annual In^jorta reache::cl 200 percent while ea^ort to West Gerroany incxeased by 36 percent as coR^ai:« Such discouraging trend hcs been causing anxiety to both sides* ]^ot only the e^Kpunsion in India's esqports to tfest Germany is a matter of great concern to India, but also the decline of West Geruian exports to India is a source of worry to the west German Industry. It is now realised that the maintenance and the development of west Genmn esqports to India, depend upon the ability of West Qerman market to buy and absorb more goods from India* The industry feels that in terms of its global business, India is still a small market, accounting for l*4?4 of west Germany's total esc^^orta, although 3* Infra* p* 210. 82 a nation o£ 700 million people anxious tor rapid industria- lisation rapresents a nuch greater market than such a small proportion so far achieved* ^^he Indo- A Ger.nan scholar i'iax. ^ller alone could have the glowing tribute to Xndia-^the itother of civiliaation# since Cermana are the greatest lovers of India. They cannot forget the glorious past of the Indo-Ocxtnan (Aryan) race. No wonder the German scholars hovo \snritten six to seven hundred volunms on the Indian culture* philosc^hy* rellgrion and mythology*^ It may be mentioned that on March 20#1969 at New Delhi« India and West Germany signed an Indo*German cultural agree- ment which is a further manifestation of the centuries - old relations in this sphere of life between the two countries and a formal basis for c»>ntinued contacts* It is ejected to intensify the relations still further* The agreement provides for cooperation between them in the field of education, art# 4. sii^ra, p«2^<> 83 culture* maas media* 8ports# medicine and libraries* exchanges o£ personnel and materials in these fields wenild be regulated under the provisions of the agreement* iSinco tlie establishing of diplomatic relations with West Gerasny (after the World War IX) in 1951# adecisive change has occured in the form of more direct relationship between the peoples of India and West Oeruiany* iioth tile counti:ie£» have had their Ov.n constitution in «1949# Ana toey devulo^^ed a political syi,tcm» They htrd to stabilise national end political conditions* J-^rcovcr, they had alrec«3y gained significant ca^crieace in denucratic process. The constCitutions of India and ti.e Federal Republic of Gerinany are dt ajocratlcn The two countries advocate the main- tenance and safeguarding of peace« the rawine«,ation of force* and equal rights for all nations. Both acknowledge human rights as the basis for any human society^ for peace and Justice throughout the world* and seek to achieve a society in which there is no tiatred or discrimination on account of 5 colour* race and creed* 5* German News# March 19*1981* 184 Xn tills regard^ howovert it is not so easy to form an opinion about the Xn<3o«West German coc$>eriitiou^ during th« two u«cad«s« though there are no ideological pti$}riC!ks in the zndo^West oerraan relations^ yet« the traditional preju- dices in India ere enough to obstruct the further expansion o£ cooperiition* It is deemed necessary to have in mind that in democratic type o£ set up, there is a scope for pragmatism and adaptation* which is not possible under totalitarian set up« Hence* one should hopefully look beyond the present horizon to c^oie a Chinese saying, ••Hope is like a road in the country sidei there never was a roed« but t/i en raany people walk on it* the road ccnnes into existnesce* India .liyiily appreciated German culture* especially the trem^ddous work for the pur^cses of e3Q;>loring and cultivating the classical Indian language and literature^^consequently* there was also a c^enuine desire to develop cultural relations with the Qmi» There exists a general interest in the activities CixLtUre of Gerraan/in the pasti additionally* India considers culture in the GDR to be the new German anti-fascist and democratic culture. For India the cultural deVflopment of the first 6, Ghosh* Alakt Hew fiorigons in Flanninq> p#188. i8d socialist G&nnaD state* the GDR# re£leot» e^qperiences made in the course o£ a country's soolal trans£o:i^atioii which in a nitmber o£ different £ield8« were quite interesting £or Zndisi for instance the construction of a socialist educational systean in the GUiiK changes in agriculture or the develcgptnent of a public health syst®au ' The Indian cultural heritage has been promoted coii^rehen* sively end continuously by the foreniost viLiu publishing houses* 7. bupra* 86 fublieliiog houses working in different fields published \msks of Xadion literature and studies on all aspects o€ the Xn6Xm cultural heritage* mre and more scientists* Journalists and persons engaged on the cultural sector publioh books about their iniwressions of India, In the pest three decades, the niutual cultural eatchaiKie between India and the GlJR has been developed continuously and r«ypidly including increased mutual productive stiimlation* Sfhe effect of ma*^ bilateral cultural activities on the broad public has been increased and anew <|uality of ccKvperation has iMMN^od based on long-term planning and cooperation* Since the establishment of diplomatic relations between the two countries* it has been possible to plan cultural exchange on thfc basis of imtually ela^rated public arrangeisiencs. India also developed econotaic* political and trac^ relations with German Deanocratic Uexjublic, The most in^iortant event in the political history of Europe after World War IX was the division of Germany into two states* Th& question of Geriuan reuni£iC4.tion proved to be one of the more baffling problem. India* 8 perception of 87 German problems* like unity of the two Oermanye and the Serlln question, were Influenced by the cold war politic© and InBpilM o£ close relations with the st^er powers, i»e* the soviet Union end the India did not take aides on the question* Pandit l^e.^ru made a statement during the Berlin crisis in 1958, that access to iierlln, which was inside liiast Germany depended on the willingness of Kast German goveinxnent. Actually tiiio access was part of the jpotaaaiu i^greement of 1945 which granted air and road routes from the West to the city of v»est Derlin, With the rise of billy Brandt, a former Mayor of i,est Berlin in west Ger»^ politics and hi© ost politik, the relati;>ns with East taid w«i.t Qerirany were norraali;.ed and also relations between west Germany and the Soviet Union were regularised* India welcomed these changes and its relations with the two German states becaroe even better because since then India has nothing to worry about the conflict between the 5ast and west Germany. German OemocraUc Republic was left in ruins by the World w«r II. Under the guidance of the Socialiat Unity Party, the diligent people of the OCR have made it one of 88 most a<3vance Zncda is the t^nth laTuest industrial coontxy in the world, and has dratm level with the world*» leaders in science arKi technology, ^-.he had good relations in many fields with the two Qerraan states for her development* Good relations with two Uermanys suits India, its policy of non alignment, its desire of independent development, its need of diversification of relationsaway two super powers* The relations are shorn of cold war pir^ridcs* 8* Infra* p* 89 India has not t^en sidkss oa the German issues* Ohe has gained as a result* the good will of the two states* India's relations with the Gertoan states^ though do not get headlines in the press* they are constructive and beneficial to the partias« us th«Qf are likely to contribute towards a world system based on coqperatlonal relationship* ratlier tlian conflictuel situations wnich tend to destroy not only the world balance and international 6y©t«a# but might destroy, the xjorld ao ouch. so mfif^MB Ay^bhjxx -> i U'he Haior comxuSXtU a Zm. ^jrta Zmm ber* omtt U Crut.e ruobur (iaclualcg syntactic >imX rcclairet a) uoqO. In t.iv rounG or caaqZlf QiU red.