The terms of an agreement signed between Russian and India in New Delhi, July 15, provide for the import of 1,500,000 tons of Russian petroleum products at a cost of about GBP15 million.
SV Agreement being signed.
CU Hand signing signature.
SV Signatories shake hands after signing.
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Background: The terms of an agreement signed between Russian and India in New Delhi, July 15, provide for the import of 1,500,000 tons of Russian petroleum products at a cost of about GBP15 million. Deliveries are scheduled over a period of four years, and the first shipment is due to arrive next month. Anglo-American companies in India have refused to refine the Soviet oil.
A prediction made after signing by Indian Minister of Mines and Fuel, K. D. Malaviya, came true two days later. He said that as the Russian prices were well below those of British and n oil companies operating in India, he thought there was bound to be a sudden fall in Anglo-American charges. Reports from new Delhi July 17 said the three foreign oil companies operating India - Burmah Shell, Standard Vacuum and Caltex have offered the Indian Government a 7 1/2 per cent reduction in the price of crude oil they import for the three main refineries.
Although representative a saving to the Indian Government of about GBP2,300,000 annually, it has been made plain to the oil companies that this offer is not considered adequate.
Other concessions in the Indo-Soviet agreement provide for the establishment of two refineries and technical assistance in locating oil deposits near Bombay. In response to an Indian Government invitation, concerns in Britain, United States, West Germany, France and Italy are understood to have expressed their desire to embark on an intensive search for oil in India.