60. Memorandum of a Conversation, Department of State, Washington, December 22, 19581
SUBJECT
- Indus Waters Discussion
PARTICIPANTS
- Mohammed Ali, Ambassador of Pakistan
- Mr. Mueenuddin, Chairman, Pakistan Indus Waters Delegation
- Mr. Donald D. Kennedy—NEA
- Mr. Henry W. Spielman—SOA
The Ambassador and Mr. Mueenuddin called at their request. Mr. Kennedy opened the discussion by inquiring as to the status of the Canal Waters negotiations. Mr. Mueenuddin was not pessimistic, pointing out that both the Indian and Pakistan proposals were being discussed, and then proceeded to give his usual background history of the dispute. He pointed out that the Indian estimate of the cost of the Indian proposal might be in the order of $200 million, but the Pakistan estimate for the same proposal was in the order of $500 million. He estimated the cost of the Pakistan proposal at $700 million. The Indian proposal involves the Mahru Tunnel without supplying four million acre feet of water from the Eastern Rivers. This proposal was unacceptable to Pakistan because it gives India a strangle hold on the economy of Pakistan.
The Pakistan proposal envisions meeting in part the total requirements from the three Western Rivers by building some storage on the Upper Jhelum and constructing new link canals, linking the Jhelum with the Chenab, and in turn, with the Sutlej Valley. It was his view that no agreement could be reached on either of these proposals and that the Bank in turn would make two alternate proposals, based almost entirely upon the Indian and Pakistan proposals. He thought it was unfair for the Bank to present only two proposals; that it should present only one or three. Mr. Mueenuddin suggested as a possible third proposal, which would also be the cheapest, that India supply Pakistan four million acre feet of winter water from the Eastern Rivers, and some summer water to be supplemented by smaller, new link canals. He then made a plea for Mr. Kennedy to discuss informally with Bank officials the Pakistani objection to the Indian proposal. Mr. Kennedy reaffirmed the Department’s position of noninterference in the current negotiations.
[Page 151]Mr. Mueenuddin said that his primary reason for calling on Mr. Kennedy was to ask for financial assistance in constructing irrigation works on the Indus system. He pointed out that time was essential because India was building the Rajasthan Canal and expected to have it in operation by 1962. Pakistan had to take steps to make additional water available in the event that India did take this drastic action. Because of Pakistan’s difficult financial position the country was unable to begin work on these necessary projects.
In response to a question from Mr. Kennedy, Mr. Mueenuddin indicated the construction of the Guddu Barrage was essential to provide an assured supply of water for the area in Upper Sind now being irrigated by inundation canals. There was urgency about this project because the Bahkra Dam in India would be completed in the near future, and would remove considerable summer water from the Sutlej Valley. He then asked for assistance on a link canal between the Jhelum and the Chenab. This canal would be needed regardless of the outcome of the Indus Waters discussions, and therefore might be considered for financial assistance at the present time. The improvements on the existing link canals were given secondary importance.
Mr. Kennedy pointed out that all United States aid, including DLF for FY59, had been committed. He also indicated that even if supplementary appropriations were granted, it would be some time before this money would be available. He suggested that the Government of Pakistan indicate to the United States Government its order of priority for the Guddu Barrage, which is now listed among the DLF Priority C projects. Mr. Mueenuddin said he would so request his government to take this action. Mr. Kennedy then pointed out that the United States could not consider the link proposals unless the IBRD indicated its approval for such consideration. He would be willing to discuss the question with Mr. Iliff when appropriate.
Ambassador Mohammed Ali said that Mr. Mueenuddin was speaking for the Government of Pakistan on this request for aid.
- Source: Department of State, Central Files, 690D.91322/12–2258. Secret. Drafted by Spielman.↩