Why was the Indus Waters Treaty signed

Federal Law Gazette Federal Law Gazette Part II 1968 No. 7 of February 20, 1968 - pages 87 to 92 - Announcement of the supplementary agreement of 1964 on the development fund for the Indus Basin

Announcement of the Additional Convention of 1964 on the Development Fund for the Indus Basin No. 7 - Date of issue: Bonn, February 20, 1968 87 (2) With the amendments pursuant to paragraph 1, the resolutions of the representatives of the governments of the member states of the European Economic Community of December 21, 1967 for the full suspension of the Common Customs Tariff for tea, maté and tropical wood and of December 21, 1967 for the full suspension of the Common Customs Tariff for certain spices and sports equipment. The decisions are published in the Official Journal of the European Communities No. L7 of 10 January 1968. § 2 According to § 14 of the Third Transition Act of January 4, 1952 (Federal Law Gazette I, p. 1) in conjunction with § 89 of the Customs Act, this ordinance also applies in the State of Berlin. § 3 This ordinance comes into force on the day after its promulgation. Bonn, February 14, 1968 The Deputy Federal Chancellor Brandt The Federal Minister of Finance Strauss Announcement of the 1964 Additional Agreement on the Development Fund for the Indus Basin of February 12, 1968 The Additional Agreement signed by the Federal Republic of Germany on April 6, 1964 in Washington 1964 on the Development Fund for the Indus Basin came into force for the Federal Republic of Germany according to its Article VI § 6.02. on April 6, 1964 The Supplementary Bureau Income also entered into force on the same day for the following Contracting Parties: Australia Canada New Zealand Pakistan United Kingdom United States International Bank for Reconstruction and Development. The additional agreement is published below with a German translation. This announcement follows the announcements of May 4, 1966 (Federal Law Gazette II, p. 254) and November 28, 1967 (Federal Law Gazette II, p. 2579). Bonn, February 12, 1968 The Federal Minister for Foreign Affairs Representing Lall r 88 Federal Law Gazette, born in 1968, Part II of the 1964 Supplementary Agreement on the Development Fund for the Indus Basin The Indus Basin Development Fund (Supplemental) Agreement, 1964 AGREEMENT between the Governments of the Commonwealth of Australia (Australia), Canada (Canada), the Federal Republic of Germany (Germany), New Zealand (New Zealand), Pakistan (Pakistan), the United Kingdom of Great Britain and Northern Ireland (United Kingdom) and the United States of America (United States) and the International Bank for Reconstruction and Development (the Bank). WHEREAS in the I9th da \ ot September, i960, Australia, Caiiddd, German \, New Zealand, Pakistdii, the United Kingdom, the United Stdtes dnd the Bdnk entered into The Indus Basin Development Fund Agreement, 1960 (being hereinalter called the "1960 Agreement "and the parties. Being hereafter collectively cdlled the" Parties ") providing tor the creation and administration of, dnd contribulions to, the Indus Basin Development Fund (hereinafter called the" Fund "); AND WHEREAS in the i960 Agreement the Parties agreed to make certain contributions to the Fund on the terms dnd conditions therein set forth; AND WHEREAS the Pdrties have agreed to make addi-tional contributions to the Fund on the terms and conditions dnd for the purposes hereinafter in this Agreement set forth; NOW THEREFORE, the Parties in- agree as follows: Section 1.01 The arrangements set out in this Agreement are ac-cepted by Pakistan and by the other Parties hereto as a füll and complete discharge of all obligations, whether legal or moral, expressed or implied , of the said other parties other than the 1960 Agreement. Section 1.02 To the extent that the following provisions ot this Agreement are inconsistent with the provisions of the 1960 Agreement the provisions hereof shall prevail and the 1960 Agreement shall henceforth be read and con-strued as having been modified and superseded by the provisions of this Agreement , but shall in all other respects remain in full force and effect. (Translation) AGREEMENT between the Governments of the Federal Republic of Australia (Australia), Canada (Canada), the Federal Republic of Germany (Germany), New Zealand (New Zealand), Pakistan (Pakistan), the United Kingdom of Great Britain and Northern Ireland (United Kingdom) and the United States of America (United States) and the International Bank for Reconstruction and Development (Bank). CONSIDERING that Australia. Canada, Germany, New Zealand, Pakistan, the United Kingdom, the United States and the Bank - hereinafter referred to collectively as the "Contracting Parties", concluded the Agreement on the Development Fund for the Indus Basin on September 19, 1960 - hereinafter referred to as the "Agreement \ on 1960 ", which provides for the establishment and management of a development fund for the Indus Basin, hereinafter referred to as the" Fund ", and stipulates an annex to this fund, AND CONSIDERING that the contracting parliaments were signed in the 1960 Agreement, to make certain contributions to the Fund under the terms and conditions set out therein, AND CONSIDERING that the Yertiagspai-teien have agreed, under the terms and conditions and for the purposes set out in this Agreement, additional contributions to the Fund to perform - the CONTRACTING PARTIES COME as follows: § 1.01 The in Regulations laid down in this Convention are recognized by Pakistan and the other Contracting Parties to this Convention as the full and perfect fulfillment of all obligations of the named other Contracting Parties under the 1960 Convention, whether legal or moral, express or implied. Section 1.02 Insofar as this Convention is inconsistent with the 1960 Convention, the present Convention shall prevail, and in this respect the 1960 Convention shall apply from now on in wording and interpretation as amended and superseded by the present Convention, but retained in each in other respects its full power and effectiveness. ARTICLE I ARTICLE I Effect of this Agreement Effect of this Convention No. 7 --¦ dough of the edition: Bonn, February 20, 1968 89 ART1CLE II Increase in Non-Rupee Contributions Section 2.01 L, i (h ol the lollowing Parties undertak. es, subjeet to mkIi p > 58,540,000 | in various currencies) § 2.02 The additional contribution of New Zealand is in half-yearly amounts of 1NS 41,953 \ on October 1st, 1064 payable. Section 2.03 The Uniled States siippleniental loan contiibution will be in the form of the proeeeds of a U.S dollar loan to Pakistan on terms to be agreed between Pakistan and Ihe United States. See tion 2.04 The supplemenlal Bank contiibution will be in the lorni of the proeeeds of a loan in various non-rupee (urrencies to Pakistan trom the Bank or of a credit in various non-rupee currencies to Pakistan from the International Development Association (the Association ), or of both, as mav be determined between the Bank and the Association. To the extent that the supplemenlal Bank contiibution is in the form of the proeeeds of a (redit from the Association, sudi credit shall, for the purpose of this Agreement and the 1960 Agreement, be deemed to be a bank loan. Section 2.03 The additional loan from the United States is paid to Pakistan in the form of the proceeds of a US dollar loan on terms agreed between Pakistan and (\ in the United States. $ 2.04 The additional contribution of the bank and in Polin the proceeds from a loan from the bank to Pakistan in various non-rupee currencies or from a loan from the boarding school ional development organization (organization) to Pakistan in various non-rupee currencies or from a loan and a credit depending on the agreement between the bank and the organization. To the extent that the Bank's additional contribution is made in the form of the proceeds of an Organization loan, that loan will be considered a Bank Loan for the purposes of this Agreement and the i960 Agreement. Section 2.05 The supplemenlal contributions of Australia, Canada, (Jermany, the United Kingdom, the United States dnd the Bank shdll be payable in the same proportions among them, and in the same proportions between grants and loans, and shall be governed by the same provisions of the 1960 Agreement, as their original contributions under the 1960 Agreement, except as may be otherwise pro- \ ided in this Agreement. ARTICLE III Increase in Rupee Contributions Section 3.01 The Bank, as Administrator of the Fund (the Administrator) shall make no further purchases of Pakistan üipees (rupees) pursuant to Section 3.03 (b) (ii) or Section 4 03 ol the lifjo Agreement. Section 2.05 The additional contributions from Australia, Canada, Germany, the United Kingdom, the United States and the Bank are in the same ratio between each other and in the same ratio between grants and loans and are subject to the same provisions of the 1960 Convention as their original normal contributions under the 1960 Convention, unless otherwise provided in this Convention. ARTICLE III Increase in rupee contributions § 3.01 The bank as administrator of the fund (administrator! Does not make any further purchases of Pakistani rupees (rupees) according to § 3.03 letter b number ii or according to § 4.03 of the Iber income of 1960. 90 Federal Law Gazette, year 1968, Part II Section 3.02 Pakistan undertakes to pay to the Fund in accordance with the provisions ot Section 3.01 of the 1960 Agreement (whethor by use, in agreement with the United States, of United States counterpart funds, or from Pakistans own resources) all Such amounts of rupees, determined by the Administrator in accordance with Section 3.05 of the 1960 Agreement, as will be required to meet, by dis-bursements from the Fund, the rupee portion of the costs referred to in Section 4.01 (a) of this Agreement to the extent that such costs are not covered by: (i) the rupees payable, or treated as payable, pursuant to Section 3.03 (a) of the 1960 Agreement and (ii) the rupees payable pursuant to Section 3.03 (b) ( ij of the 1960 Agreement in the account of the United States rupee contribution under Section 2.03 of the 1960 Agreement, until that contribution has been fully called up for payment. ARTICLE IV Disposition of the Fund Section 4.01 (a) Subject to the provisions of Section 4.03 of this Agreement, the assets of the Fund, as augmented by the supplemental contributions in provided for, shall be applied first to: (i) the cost of goods required to construct the Dam and Related Works on the Jhelum River as set forth in 2A (1) of Annexure D to the 1960 Agreement; (ii) the cost of goods required to construct the Link Canals, Barrages and Other Works as set forth in 2B, 2C and 2E of said Annexure as already modified by agreement between Pakistan and the Administrator with the approval of the Parties; (iii) overhead and engineering costs related to (i) and (ii) above; and (iv) expenses incurred by the Administrator solely because of Services rendered under the 1960 Agreement and this Agreement; provided, however, that the above schedule of works may be amended by agreement between Pakistan and the Administrator for reasons of economy or sound engineering practice. (b) In addition, the costs, including the rupee costs, of the Study hereinafter referred to in Section 5.01 of this Agreement shall be met from the non-rupec assets of the Fund. Section 4.02 Alter the costs and expenses referred to in Section 4.01 (a) and (b) above have been provided for, any bal ance of the non-rupee assets remaining in or payable to the fund, together with any uncalled amounts of the non-rupee contributions provided for in the 1960 Agreement, as augmented by this Agreement, will be disbursed in accordance with procedures to be agreed between Pakistan and the Bank, to be used by Pakistan as required to meet non-rupee costs of the Tarbela project (if Pakistan and the Bank agree that Tarbela is justified on the basis of the report hereinafter referred to in Section 5.01 of this Agreement), or, otherwise, of some other development project or projects in the water and power sector in West Pakistan, to be agreed between Pakistan and the Bank on the basis of the Study referred to in said Section 5.01. § 3.02 Pakistan undertakes to pay to the fund according to § 3.01 of the Convention of 1960 all rupee amounts determined by the administrator according to § 3.05 of the said Convention (either from American counterpart funds after a corresponding agreement with the United States or from Pakistani own resources), if these rupees are required to cover the rupee portion of the costs specified in Section 4.01 (a) of this Convention with payments from the fund, unless these are covered as follows: l) by the rupees payable or deemed payable under Section 3.03 (a) of the 1960 Convention, and ii) by the rupees payable under Section 3.03 (b) (i) of the 1960 Convention from the rupee contribution paid by the United States according to Section 2.03 of the 1960 Convention until this contribution has been fully paid for. ARTICLE IV Use of the fund § 4.01 a) Subject to § 4.b) Furthermore, the costs, including the rupee costs, for the investigation mentioned in § 5.01 are to be sprinkled on the non-rupee assets of the fund. § 4.02 After the costs and expenses mentioned in § 4.01 letters a and b have been met, any non-rupee balances still remaining or owed to the fund will be transferred together with all non-rupee balances provided for in the 1960 agreement and increased but not called up by this agreement -Rupee complaints paid out according to a procedure to be agreed between Pakistan and the bank, in order to be used by Pakistan as required to cover the non-rupee costs of the Tarbela project, if Pakistan and the bank undertake this project on the basis of the in § 5.01 the said report as justified, or otherwise to cover the non-rupee costs of other development projects in the water and energy sector in western Pakistan, which are to be agreed between Pakistan and the bank on the basis of the investigation mentioned in § 5.01. No. 7 - Date of issue: Bonn, February 20, 1908 91 Section 4.03 Similaih, an \ amounts in or retainable for Ihe Specidl Reserve under Ihe provisions of Section 4.01 ot the 1960 Agreement not required for payments by the Administrator to India pursuant to Section 4.02 thereof shall be applied lowards the costs reterred to in Section 4.01 (a) ubove not covered bv the non-rupee resources of the Fund as augmented by this Agreement, and to the extent not so applied shall be treated in the same manner as the balance referred lo in Section 4.02 above. Income lrom Investments of the Special Reserve shall hereafter be ddded to the principle thereof. ARTICLE V Study of the Water and Power Resources of West Pakistan Section 5.01 The Administrator shall organize and administer a Study of the water and power resources of West Pakistan which would provide the Government of Pakistan with a basis for development planning in the water and power soctors of the economy within the context of their Miccosske Five Year Plans. It is intended (hat this Study will be completod within two years from the dato of its commeiKcment. The first objective of the Study will be the completion of a report covering the technical feasibility, Ihe oonsruction cost and Ihe economic return ol a dam on Ihe Indus dl Tarbela. The Administrator will use its best endeavors to ensure that this roport will l) e completed by the end of 1964. See tion 5.02 The financing b \ the Fund of the Study shall not (onstitute or implv anv commitment by the Parties to partieipate in any financing ot any development projeet arising out ol ihe Study, other than as provided in See tion 4.02 ol this Agreement. ARTICLE VT Signature and Entry into Force Section 6.01 This Agreement shall be open for signature on behalf of the Parties until April 8, 1964, or such later date as ma \ be (ix <-db \ the Administrator.Section 6.02 This Agreement shall come into force and effect and shall become binding upon each of the parties on the date, but not before the date, when it has been signed on behalf of all the parties. The bank shall promptly after such date notify each of the other parties and shall transniit to each of theni certiiiod copies showing sig-natories and dafes of signature. ARTICLE VII Title Section 7.01 This Agreement mav be cited as "The Indus Basin Development Fund (Supplemontal) Agreement, 1964". §4.03 Accordingly, all amounts in the special reserve according to § 4.01 of the 1960 Convention or to be retained for this reserve that are not required for payments by the administrator to India according to § 4.02 of the 1960 Convention are used to cover the amounts specified in § 4.01 letter a of the present Convention, to the extent that these are not covered by the increased non-rupee funds of the Fund under this Convention; any amounts not used for this purpose will be treated as the credits mentioned in § 4.02. Income from capital investments of the Sonclerresei \ e are added to this. ARTICLE V Investigation of the water and energy reserves of West Pakistan § 5.01 The Administrator organizes and supervises an investigation of the water and energy reserves of West Pakistan; it is intended to serve as the basis for development planning in the water and energy sectors of the government of Pakistan under its successive five-year plans. The intention is to complete this investigation within two years of commencement. The first aim of the study is to prepare a report on the technical feasibility, construction costs and economic benefits of a dam on the Indus near Tarbela. The administrator will do his best to ensure that this report is finalized by the end of 1964. Section 5.02 The financing of the investigation by the fund does not mean that the contracting parties are obliged to participate in the financing of any development project that may result from the investigation, going beyond the provisions of Section 4.02. ARTICLE VT Signature and entry into force §6.01 This Agreement is open for signature by the contracting parties until April 8, 1964 or until a later date to be determined by the administrator. § 6.02 This Convention shall only enter into force for each of the contracting parties on the date on which it has been signed for all contracting parties. The bank immediately notifies all other contracting parties of this date and sends each of them certified copies with details of the signatories and signature dates. ARTICLE VII Title §7.01 This Convention can be cited as "Additional Agreement of 1964 on the Development Fund for the Indus Basin". 92 Federal Law Gazette, year 1968, part II DONE dt Washington in a Single original, whirh shall remdin deposited in the Aidmes of the Bank. Date ot Signature Maich 31, 1964 Signatoi \ For the GOVERNMENT OF THE UNITED STATES OF AMERICA: William B. Ma com at ", .1 i. DONE at Washington in cinci (tsUiiitt di" * "i archives of the bank deposited and. Date Signing March 31, 1964 Signature For the UNITED STATES GOVERNMENT \: \ VTilidin B. M a (omber .h For the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT: March 31, 1964 George D. Woods Mar 31/1964 For the GOVERNMENT OF THE COMMONWEALTH OF AUSTRALIA: April li, 1964 Howard B ea 1 e G.April 19b4 For the GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY: April (), 1964 KH Knappst an April 6, 1964 For the GOVERNMENT OF NEW ZEALAND. April 6, 1964 GR Laking 6th Ap ril 1964 For the GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: April «), 1964 Harlech April 6, 1964 For the GOVERNMENT OF THE 1SLAM1C REPUBLIC OF PAKISTAN: April 6, 1964 G. Ahmed April 6, 1964 For the GOVERNMENT OF CANADA: April 6, 1964 CSA R itchie 6.Apiill964 For the INTERNATIONAL BANK FOR RECONSTRUCTION UNI) DEVELOPMENT: George D. W oods For the GOVERNMENT OF THE AUSTRALIAN FEDERATION I Ioward B ea 1 e For the GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY K. II. K iui pps I cin For THE GOVERNMENT OF NEW ZEALI): GR Laking Flu THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRLAM): H arle (h For the GOVERNMENT OF THE ISLAMIC REPUBLIC PAKISTAN G. A hmed For the GOVERNMENT OF K \ N \ i) \. C.S A. R i tu e Editor: The Federal Minister of Justice. - Publisher: Bundesanzeiger Verlagsges. m.b H., Cologne. - Printing: Bundesdruckerc-i. VAT is included in the subscription price; the applied tax rate is 5 / «. The Federal Law Gazette appears in three parts. In parts I and II, the laws and ordinances appear in chronological order after their execution. In Part III, the federal law established as still applicable is published on the basis of the law on the collection of federal law of July 10, 1958 (Federal Law Gazette I, p. 437) sorted according to Sadi areas. Conditions of purchase for Part III duich dn Verlag. Conditions of purchase for parts I and II: Regular purchase only by Swiss Post. 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