181176    12/3/2008 13:53    08ISLAMABAD3764    Embassy Islamabad    UNCLASSIFIED//FOR OFFICIAL USE ONLY    08ISLAMABAD3169|08ISLAMABAD3456    "VZCZCXRO7551 RR RUEHLH RUEHPW DE RUEHIL #3764 3381353 ZNR UUUUU ZZH R 031353Z DEC 08 FM AMEMBASSY ISLAMABAD TO RUEHC/SECSTATE WASHDC 0507 INFO RUEHRC/DEPT OF AGRICULTURE WASHDC RUEATRS/DEPT OF TREASURY WASHDC RHEBAAA/DEPT OF ENERGY WASHDC RUEHRC/USDA FAS WASHDC 4291 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL RHMFISS/CDR USCENTCOM MACDILL AFB FL RUEKJCS/SECDEF WASHINGTON DC RUEHKP/AMCONSUL KARACHI 0728 RUEHLH/AMCONSUL LAHORE 6459 RUEHPW/AMCONSUL PESHAWAR 5318 RUEHNE/AMEMBASSY NEW DELHI 4134 RUEHKT/AMEMBASSY KATHMANDU 9323 RUEHBUL/AMEMBASSY KABUL 9510"    "UNCLAS ISLAMABAD 003764

SENSITIVE SIPDIS

E.O. 12958:  N/A TAGS: ECON, ETRD, EAID, EFIN, ENGY, SENV, PK, IN SUBJECT: PAKISTAN TO SEEK WORLD BANK SETTLEMENT IN WATER DISPUTE WITH INDIA

REFS: A)Islamabad 3456  B) Islamabad 3169

1. (SBU) Summary: India's Water Commissioner for the Indus River Treaty visited Pakistan to gather information on Pakistani claims regarding low water sheds.  Pakistan claims that India diverted a significant volume of water from the river Chenab to its Baglihar dam which resulted in a 34 percent drop in Pakistan's water levels. After numerous talks with their neighbor nation, Pakistan now plans to take its concern to the World Bank for compensation under the terms of the Indus Waters Treaty.  End Summary.

2. (SBU) On November 30, the Pakistani and India Indus Water Commissioners visited Head Marala on the Chenab River.   After inspecting the site, 19 kilometers from the city of Sialkot, the two commissioners Syed Jamaat Ali Shah of Pakistan and Ranganathan of India discussed technical details such as the number of canals, discharge levels, and mechanisms of maintaining log registers. Usman-e-Gani, Assistant Joint Commission Pakistan told EconOff on December 2, that the Indian delegation was in Pakistan November 29 through December 1, and visited several canals around Marala. He said that Pakistan has facilitated the Indian visit, and shared hourly, daily and weekly data on water levels; however no compromise or compensation package was finalized.  Gani noted that it appears Pakistan will have to move its grievances to the World Bank per terms of the Treaty but did not provide a timeframe for when Pakistan would do so.

3. (SBU) While the water issues were discussed during the Composite Dialogue discussions, local media reported that there was no firm commitment by India to compensate Pakistan for its water losses. Pakistani Foreign Minister Shah Mehmood Qureshi had raised the issue of decreasing water levels on the Chenab River during talks on the Indo-Pak peace process.  Addressing a joint press conference on Nov 26 in Delhi, Indian External Affairs Minister Pranab Mukherjee said that water would be made available to Pakistan in line with the provisions of the Indus Water Treaty subject to availability at the source.

PATTERSON "