However, negotiations quickly came to a halt and neither side was willing to compromise. In 1951, David Lilienthal, former director of the Tennessee Valley Authority and the U.S. Atomic Energy Commission, traveled to the area to research articles he was to write for Colliers Magazine. He proposed that India and Pakistan work to conclude an agreement for the joint development and management of the Indus water 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 in which engineers provide advice to the World Bank. However, political considerations prevented even these technical discussions from reaching an agreement. In 1954, the World Bank proposed a solution to the impasse. After six years of talks, Indian Prime Minister Jawaharlal Nehru and Pakistani President Mohammad Ayub Khan signed the Indus Water Treaty in September 1960. Pakistani President Ayub Khan of Pakistan and P.M Pandit Jawaher Lal Nehro, on the Indian side, decided to meet and signed the agreement. In this agreement, the World Bank divided all the reservoirs into two parts.
The Beas, Ravi and Sutlej rivers were assigned to India while the chenab Jhelum and Indus Pakistan rivers were allocated. Pakistan, on the other hand, needed dams, dams and canals to compensate for the loss that exceeds Pakistan`s capacity and material strength. It was also decided to help Pakistan store water in the construction of dams, dams and at least seven connecting channels in which India would pay 200 million of the total cost of the programme, while the remaining amount would be provided by the World Bank, the United States, Canada, Australia, New Zealand and other countries friendly to Pakistan. In 1960, India and Pakistan signed a water supply agreement – known as the Indus Water Treaty – orchestrated by the World Bank. In September 1950, the Indian government agreed to resolve the issue by appeal, but requested that there be a tribunal where two members would be on each side and that there would be a neutral president. These proposals were accepted by Pakistan. The World Bank`s President for Construction and Development, Eugene Black, took responsibility for this and set up a two-sided committee to overcome this problem. Several years passed to find the solution to this serious problem between the two rivals, and each day passed like a year. Thus, on September 19, 1960, an agreement between two countries was signed in Karachi, known as the Indus Water Treaty. Schwarz also distinguished between the „functional“ and „political“ aspects of the dispute. In his correspondence with the Indian and Pakistani leaders, Black claimed that the most realistic could be resolved if the functional aspects of differences of opinion were negotiated outside of political considerations. He imagined a group that looked at how best to exploit the waters of the Indus Basin, apart from questions of historical rights or attributions.
The Indus Water Treaty is one of the most liberal water distribution agreements between the two countries. The Pact between India and Pakistan was signed in Karachi in September 1960 by Jawaharlal Nehru, then Prime Minister of India, and Pakistani President Ayub Khan. Each Party shall inform the other Party of the construction projects of engineering works which would concern the other Party and provide data on such works. . . .