18 January 2004	Sunday	25 Ziqa'ad 1424

ISLAMABAD, Jan 17: Pakistan and India gave indication on Saturday they were moving closer to the resolution of dispute on the construction of Baglihar hydropower project by India on River Chenab in occupied Kashmir at the technical level of Permanent Indus Commission (PIC).

"We are getting closer to each other ... the discussions are positive," Indian PIC Commissioner D.K. Mehta told Dawn at the end of second day discussions of the three-day special meeting of the commission. "We would tell you about the progress tomorrow," the Indian official said.

"The atmosphere is cordial and cooperative. We are endeavouring to find out a solution and take advantage of the opportunity the two governments have provided to us with mutual understanding to resolve the dispute at the PIC level," said Pakistan's PIC commissioner Syed Jamaat Ali Shah.

India and Pakistan are in serious dispute for more than four years now on 450mw Baglihar hydropower project on the Chenab which Islamabad believes is being constructed by New Delhi in violation of the 1960 Indus Waters Treaty and to its disadvantage.

Responding to a question, he said the design of the project had many aspects and needed long discussions and that was why the meeting was arranged for three days instead of normal two-day meetings of the PIC so as to reach at some result.

He said: "This is our urge to reach a solution to the dispute. We are endeavouring to resolve it. They are also advancing their arguments and let us see what happens at the conclusion."

Mr Shah said the two sides discussed various aspects of the design and legal interpretations with regard to exploitation of the provisions of the treaty, and questions like what was the meaning of such and such phrase and clause and also about hydrology and hydraulics because these were very complicated things.

He, however, made it clear that Pakistan would have to exhaust all provisions of the treaty in case the ongoing talks fail to find out a solution because the prime national interest could not be compromised.

The two sides, he further said, would sign record of the meeting on Sunday and then issue a statement in consultation with the foreign office and the ministry of water and power.

Mr Shah said the PIC would report to the relevant governments about the three-day meeting as agents of the government and it was then up to the two governments as to how to move forward. Pakistan would refer the dispute to the World Bank for the appointment of neutral expert in case the ongoing talks fail to resolve the dispute bilaterally. The bank has already sought reports from the two countries over the dispute.

The bilateral water-sharing Indus Waters Treaty gives both the countries the option of calling third party intervention in case of a deadlock over any issue.