Identifier
Created
Classification
Origin
05NEWDELHI3213
2005-04-28 11:53:00
CONFIDENTIAL
Embassy New Delhi
Cable title:  

GOI STANDING FIRM AS BAGLIHAR PROCESS UNFOLDS

Tags:  PREL ENRG ECON IN PK INDO PAK 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 003213 

SIPDIS

E.O. 12958: DECL: 04/27/2015
TAGS: PREL ENRG ECON IN PK INDO PAK
SUBJECT: GOI STANDING FIRM AS BAGLIHAR PROCESS UNFOLDS

REF: NEW DELHI 1480

Classified By: PolCouns Geoff Pyatt, for Reasons 1.4 (B, D)

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 003213

SIPDIS

E.O. 12958: DECL: 04/27/2015
TAGS: PREL ENRG ECON IN PK INDO PAK
SUBJECT: GOI STANDING FIRM AS BAGLIHAR PROCESS UNFOLDS

REF: NEW DELHI 1480

Classified By: PolCouns Geoff Pyatt, for Reasons 1.4 (B, D)


1. (C) Summary: The Foreign Ministry has denied to us
reports that the GOI will halt work on the controversial
Baglihar hydroelectric project to bring the GOP back to the
negotiating table, maintaining that New Delhi has not changed
its position regarding the legality of the project (reftel).
The MEA has told us that the GOI has agreed to make some
changes in the dam's design to alleviate Islamabad's
concerns, but Pakistani diplomats in India could not confirm
this concession. The World Bank is moving forward with the
dispute resolution process spelled out under the Indus Water
Treaty (IWT),although a New Delhi-based World Bank official
has told us his preference remains a bilateral solution. On
the ground, labor issues have helped to delay Baglihar's
start date by more than one year. End Summary.

GOI Stance Strong as Concrete
--------------


2. (C) MEA Director (Pakistan) Monica Mohta emphatically
denied to Poloff on April 27 that the GOI was suspending work
on the Baglihar Dam in exchange for a promise by the GOP to
withdraw its petition for a World Bank-selected neutral
expert to adjudicate Pakistani technical objections to the
dam's design, as reported in the "South Asia Tribune"
(http://www.satribune.com/archives/200504/P1 arun9.htm) and
the "Hindustan Times." Mohta reiterated that:

-- The GOI will continue work on Baglihar, having learned a
costly lesson when it agreed in 1987 to halt construction of
the Wullar Barrage/Tulbul Navigation Project. Eight rounds
of bilateral talks since then have produced no results for
that dispute, which remains completely stalled;

-- seeking a neutral expert is "premature," because both
governments have not exhausted their bilateral efforts. Both
sides should return to the table and discuss their concerns
in good faith;

-- Baglihar is IWT compliant, and the intervention by a
neutral expert has the potential to exacerbate ill will and
impede Indo-Pak rapprochement without achieving anything for
Islamabad; and

-- India's Salal Dam, which is located downriver from
Baglihar, would be damaged if Baglihar were used for flooding
or "excessive withholding" water from Pakistan (reftel),as
Islamabad reportedly fears.

Delhi Reportedly Made Concessions
--------------


3. (C) Mohta also claimed that prior to President
Musharraf's visit to India, the GOI had conceded
"two-and-a-half" of Islamabad's six technical objections by
agreeing to dispense with low-level intakes for turbines that
would have shortened the project's timeline by eight weeks,
and replacing a "sluice spillway" with a "shoot spillway."
She added that during the Musharraf visit, PM Manmohan Singh
had reiterated the GOI position on Baglihar, including these
concessions. The Pakistani High Commission in New Delhi was
unable to confirm these concessions to us.

World Bank Moves Forward but Prefers Bilateral Solution
-------------- --------------


4. (C) The World Bank on April 27 reportedly asked both
governments to select a neutral expert from a list of three
internationally renowned authorities on water issues that was
sent to the two capitals. If the GOI and GOP cannot agree on
an expert, the Bank will select one to move the process
forward. At the same time, a New Delhi-based World Bank
official told D/PolCouns that the Bank would still prefer a
bilateral solution to the impasse.
Labor Obstacles
--------------


5. (U) A Jammu-based journalist for the "Hindu" reported
recently that labor agitation at the Baglihar site has
already set back the completion date for the first of two
construction phases from the original 2004 target to early

2006.

Comment
--------------


6. (C) We are struck by the stark contrast in the media
reporting Baglihar receives from Pakistani and Indian press
outlets. We see in Pakistani media daily, nearly obsessive
coverage, while the issue is nearly invisible in the Indian
press. This disparity is no doubt a reflection of the GOI's
long-standing view (reftel and previous) that this is a
technical dispute to be resolved through technical
consultations, and not a diplomatic quarrel that requires
intervention at the political level.


7. (C) Although New Delhi is maintaining its stance on
Baglihar firmly and confidently, we will watch for any cracks
in this confidence as the IWT dispute resolution process
unfolds. The GOI's historical allergy to "third-party
intervention" may yet drive them to accommodation; if not,
the neutral expert would provide a face-saving solution to an
impasse that is the currently the most visible dispute
between two countries.
BLAKE