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dated June 14, 1956: Canal waters dispute

The World Bank's new proposals for use of Punjab canal waters, circulated to New Delhi and Karachi, are likely to be accepted in principle by the Government of India. In fact, the present proposals are not regarded as new, but only a modification of the scheme drawn up by the Bank two years ago. The principle accepted by India on the previous occasion was that she should bear the capital cost of construction of works which would ensure for Pakistan of that quantity of water which India would be diverting for herself from the three rivers allotted to her. It was then estimated that it would cost about Rs. 60 crores to build canals for linking up the Chenab, the Ravi and the Beas. Pakistan, however, neither accepted nor rejected the Bank's plan, but only wanted a fresh study of the problem. The study has now lasted nearly two years.

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