India and Pakistan were on the brink of war for Kashmir. It did not seem to be possible to negotiate on this subject until tensions subsided. One way to reduce hostility . . . will focus on other important issues on which cooperation is possible. Progress in these areas would foster a sense of community between the two nations that, over time, could lead to a colony of Kashmir. As a result, I proposed that India and Pakistan jointly develop and implement the Indus Basin river system, on which both countries depended for irrigation water. With new dams and irrigation canals, the Indus and its tributaries could be brought in to provide the extra water each country needs to produce more food. In this article, I suggested that the World Bank could use its good offices to bring the parties to an agreement and help finance an industrial development program. :93 However, negotiations came to an early end and neither side was willing to compromise. In 1951, David Lilienthal, former head of the Tennessee Valley Authority and the U.S. Atomic Energy Commission, visited the area to research articles he was to write for Collier magazine.
He proposed that India and Pakistan move towards an agreement to jointly develop and manage the industrial flow system, possibly with advice and funding from the World Bank. Eugene Black, then president of the World Bank, agreed. On his proposal, engineers from each country formed a working group whose consultants advise World Bank engineers. However, political considerations prevented these technical discussions from reaching an agreement. In 1954, the World Bank presented a proposal for a solution to the impasse. After six years of talks, Indian Prime Minister Jawaharlal Nehru and Pakistani President Mohammad Ayub Khan signed the Indus Waters Treaty in September 1960. Black`s hopes of finding a quick solution to the Indus conflict were premature. While the Bank expected the two sides to agree on the distribution of water, neither India nor Pakistan seemed willing to compromise their positions. While Pakistan had its historical right over the waters of all tributaries of the Indus and the risk of half of western Counjab by Desertification, the Indian side argued that the pre-distribution of water should not set a future allocation.
Instead, the Indian side has established a new distribution base, with waters from western tributaries to Pakistan and eastern tributaries to India. The technical discussions on the substance that Mr. Schwarz hoped had been hampered by the political considerations he expected to avoid. In 1960, India and Pakistan signed a water distribution agreement – known as the Indus Waters Treaty – orchestrated by the World Bank. In 1948, the water rights of the river system were at the centre of an Indo-Pakistani water conflict. Since the treaty was ratified in 1960, India and Pakistan have not waged water wars, despite several military conflicts. Most disputes and disputes have been resolved through legal procedures under the treaty.  The Indus Waters Treaty is now considered one of the most successful water-sharing efforts in the world, although analysts recognize the need to update some technical specifications and expand the scope of the climate change agreement.   The industrial treaty is one of the most liberal water distribution agreements between the two countries.