The Reminiscences of Zafrulla Khan — Page 175
159 REMINISCENCES OF SIR MUHAMMAD ZAFRULLA KHAN award. In making its assessment, it took into account the Indian claim that the irrigation system in what was the old undivided province of the Punjab had been much better developed in the portions which had gone to Pakistan than in the portions which had gone to India. The claim was put forward that all this development had taken place at the joint expense of the province, but that the benefit of the major portion of it was now enjoyed by Pakistan, and that Pakistan must pay compensation for the excess share of this development that it enjoyed. The tribunal took that into account in making its award and compensated India for having obtained a smaller share of this joint development that had been made at joint expense. The day after the tribunal made its award India diverted the waters at the Ferozpur headworks asserting that Pakistan was no longer entitled to these waters of the Beas and Sutly Rivers through these headworks. Pakistan was, almost at its birth, threatened with extinction, for without these waters the greater part of West Pakistan would be turned back into a desert waste. On the 4th of May, 1948, a provisional agreement was arrived at between the Government of India and the Government of Pakistan, which provided that, leaving the legal position aside, India would let this flow of waters into Pakistan to continue for a period but that it would have to be progressively reduced and Pakistan in the meantime should investigate alternative sources of substitution for these waters. This agreement was subject to the condition that Pakistan should pay into the State Bank of India, or whichever bank may be specified, a certain assessed amount in escrow to be taken by India as compensation for the use of these waters by Pakistan, if the final decision should be in favour of India. This amount was not to be handed over to the Government of India, but was to remain in the Bank as a guarantee that in case it was found that Pakistan was not entitled to these waters, the amount would be available to India as compensation. Later on India took up the position that Pakistan was not entitled to any part of these waters and that India, as the upper riparian owner was entitled to divert the whole of this water for its own benefit without any regard to the historical uses which had already been established. Mr. David Lilienthal, who had been Chairman of the Tennessee Valley Authority was on a visit to the subcontinent and happened to fly over the Indus Valley. He wrote an article for the Saturday Evening Post setting out what the consequences of this dispute over the waters