The World Bank's office here says that its principals in Washington have received a Pakistani letter asking them to 'appoint a Neutral Expert under the Indus Waters Treaty", and it was under examination to follow procedures laid down there. The terse two-line announcement made here on Wednesday morning is an echo of an official statement released at the World Bank headquarters earlier during the night and was faxed to the newspaper offices first thing in the morning. It, however, spoke in detail on the role it is expected to play in this dispute.
The World Bank explained that it had signed the Indus Basin Treaty with Pakistan and India in September 1960 for 'certain specified purposes', but not as its 'guarantor.'
Many of those purposes, the announcement said, had been completed leaving behind three responsibilities that related to settlement of 'differences and disputes.'
Explaining further, the World Bank said that 'disagreements' by the parties on the interpretation of the provisions of the Treaty are classified into three categories: (i) Questions are to be examined by the Permanent Indus Commission, (ii) Differences by a Neutral Expert, and (iii) Disputes by a Court of Arbitration.
ACCORDING TO THE TREATY THE REMAINING RESPONSIBILITIES OF THE WORLD BANK ARE AS FOLLOWS:
(1) A role in the appointment of a Neutral Expert. The first step under the Treaty is to resolve any 'question' through the Permanent Indus Commission itself. If the 'question' is not resolved there, it becomes a 'difference' and is referred to a Neutral Expert to be appointed by the two countries, or by a third party agreed upon by the two countries.
(2) In the absence of such an agreement, the World Bank, in consultation with the two countries, would make the appointment of the Neutral Expert. The decision of the Neutral Expert on all matters within his competence shall be final and binding.
(3) The management by the World Bank of a Trust Fund to meet the expenses of a Neutral Expert.
(4) A role for the World Bank in the establishment of a Court of Arbitration. If the 'difference' does not fall within the mandate of the Neutral Expert, or if he rules that the 'difference' should be treated as a 'dispute', then a Court of Arbitration would be set up. Under the Treaty, the World Bank has a role in the establishment of such a court.
The announcement, however, was silent about the GoP's expectation that there will be time-frame for the whole procedure once the Bank starts the process.
Meanwhile, a World Bank official did not rule out the possibility of this issue sticking out 'like a sore thumb' during the farewell meetings James D. Wolfensohn, the retiring President of the Bank is to have here with government leaders from February 6.
It was also not clear if during his planned sweep through some of Asian and Far Eastern capitals, Wolfensohn will also visit New Delhi to acquaint himself with the Indian point of view for leaving a note for his successor.
As his tour programme stands now, Wolfensohn will fly from Islamabad to Cambodia after two days. It was not known what will be his first stop before entering Pakistan.