181176    12/3/2008 13:53    08ISLAMABAD3764    Embassy Islamabad    UNCLASSIFIED//FOR OFFICIAL USE ONLY    08ISLAMABAD3169|08ISLAMABAD3456    "VZCZCXRO7551RR RUEHLH RUEHPWDE RUEHIL #3764 3381353ZNR UUUUU ZZHR 031353Z DEC 08FM AMEMBASSY ISLAMABADTO RUEHC/SECSTATE WASHDC 0507INFO RUEHRC/DEPT OF AGRICULTURE WASHDCRUEATRS/DEPT OF TREASURY WASHDCRHEBAAA/DEPT OF ENERGY WASHDCRUEHRC/USDA FAS WASHDC 4291RUCPDOC/DEPT OF COMMERCE WASHINGTON DCRUMICEA/USCENTCOM INTEL CEN MACDILL AFB FLRHMFISS/CDR USCENTCOM MACDILL AFB FLRUEKJCS/SECDEF WASHINGTON DCRUEHKP/AMCONSUL KARACHI 0728RUEHLH/AMCONSUL LAHORE 6459RUEHPW/AMCONSUL PESHAWAR 5318RUEHNE/AMEMBASSY NEW DELHI 4134RUEHKT/AMEMBASSY KATHMANDU 9323RUEHBUL/AMEMBASSY KABUL 9510"    "UNCLAS ISLAMABAD 003764

SENSITIVESIPDIS

E.O. 12958:  N/ATAGS: ECON, ETRD, EAID, EFIN, ENGY, SENV, PK, INSUBJECT: 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 RiverTreaty visited Pakistan to gather information on Pakistani claimsregarding low water sheds.  Pakistan claims that India diverted asignificant volume of water from the river Chenab to its Baglihardam which resulted in a 34 percent drop in Pakistan's water levels.After numerous talks with their neighbor nation, Pakistan now plansto take its concern to the World Bank for compensation under theterms of the Indus Waters Treaty.  End Summary.

2. (SBU) On November 30, the Pakistani and India Indus WaterCommissioners visited Head Marala on the Chenab River.   Afterinspecting the site, 19 kilometers from the city of Sialkot, the twocommissioners Syed Jamaat Ali Shah of Pakistan and Ranganathan ofIndia 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 onDecember 2, that the Indian delegation was in Pakistan November 29through December 1, and visited several canals around Marala. Hesaid that Pakistan has facilitated the Indian visit, and sharedhourly, daily and weekly data on water levels; however no compromiseor compensation package was finalized.  Gani noted that it appearsPakistan will have to move its grievances to the World Bank perterms of the Treaty but did not provide a timeframe for whenPakistan would do so.

3. (SBU) While the water issues were discussed during the CompositeDialogue discussions, local media reported that there was no firmcommitment by India to compensate Pakistan for its water losses.Pakistani Foreign Minister Shah Mehmood Qureshi had raised the issueof decreasing water levels on the Chenab River during talks on theIndo-Pak peace process.  Addressing a joint press conference on Nov26 in Delhi, Indian External Affairs Minister Pranab Mukherjee saidthat water would be made available to Pakistan in line with theprovisions of the Indus Water Treaty subject to availability at thesource.

PATTERSON"