The Indus System of Rivers comprises three Western Rivers the Indus, the Jhelum and Chenab and three Eastern Rivers - the Sutlej, theBeas and the Ravi; and with minor exceptions, the treaty gives India exclusive use of all of the waters of the Eastern Rivers and their tributaries before the point where the rivers enter Pakistan. Similarly, Pakistan has exclusive use of the Western Rivers. Pakistan also received one-time financial compensation for the loss of water from the Eastern rivers.
Permanent Indus Commission: The countries agree to exchange data and co-operate in matters related to the treaty. For this purpose, treaty creates the Permanent Indus Commission, with a commissioner appointed by each country.The Commission is required to meet regularly to discuss potential disputes as well as cooperative arrangements for the development of the basin. Either party must notify the other of plans to construct any engineering works which would affect the other party and to provide data about such works. In cases of disagreement, a neutral expert is called in for mediation and arbitration. While neither side has initiated projects that could cause the kind of conflict that the Commission was created to resolve, the annual inspections and exchange of data continue, unperturbed by tensions on the subcontinent.
Pre-treaty period: During the first years of partition the waters of the Indus were apportioned by the Inter-Dominion Accord of May 4, 1948. This accord required India to release sufficient waters to the Pakistani regions of the basin in return for annual payments from the government of Pakistan.
Finally, in 1954, after nearly two years of negotiation, the World bank offered its own proposal, stepping beyond the limited role it had apportioned for itself and forcing the two sides to consider concrete plans for the future of the basin. The proposal offered India the three eastern tributaries of the basin and Pakistan the three western tributaries. Canals and storage dams were to be constructed to divert waters from the western rivers and replace the eastern river supply lost by Pakistan.
One of the last stumbling blocks to an agreement concerned financing for the construction of canals and storage facilities that would transfer water from the eastern Indian rivers to Pakistan. This transfer was necessary to make up for the water Pakistan was giving up by ceding its rights to the eastern tributaries. The World Bank initially planned for India to pay for these works, but India refused. The Bank responded with a plan for external financing supplied mainly by the United States and the United Kingdom. This solution cleared the remaining stumbling blocks to agreement and the Treaty was signed by the Prime Ministers of both countries in 1960.
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