<P> The World Bank soon became frustrated with this lack of progress . What had originally been envisioned as a technical dispute that would quickly untangle itself started to seem intractable . India and Pakistan were unable to agree on the technical aspects of allocation, let alone the implementation of any agreed upon distribution of waters . Finally, in 1954, after nearly two years of negotiation, the World bank offered its own proposal, stepping beyond the limited role it had apportioned for itself and forcing the two sides to consider concrete plans for the future of the basin . The proposal offered India the three eastern tributaries of the basin and Pakistan the three western tributaries . Canals and storage dams were to be constructed to divert waters from the western rivers and replace the eastern river supply lost by Pakistan . </P> <P> While the Indian side was amenable to the World Bank proposal, Pakistan found it unacceptable . The World Bank allocated the eastern rivers to India and the western rivers to Pakistan . This new distribution did not account for the historical usage of the Indus basin, or the fact that West Punjab's Eastern districts could turn into desert, and repudiated Pakistan's negotiating position . Where India had stood for a new system of allocation, Pakistan felt that its share of waters should be based on pre-partition distribution . The World Bank proposal was more in line with the Indian plan and this angered the Pakistani delegation . They threatened to withdraw from the Working Party, and negotiations verged on collapse . </P> <P> However, neither side could afford the dissolution of talks . The Pakistani press met rumors of an end to negotiation with talk of increased hostilities; the government was ill - prepared to forego talks for a violent conflict with India and was forced to reconsider its position . India was also eager to settle the Indus issue; large development projects were put on hold by negotiations, and Indian leaders were eager to divert water for irrigation . </P> <P> In December 1954, the two sides returned to the negotiating table . The World Bank proposal was transformed from a basis of settlement to a basis for negotiation and the talks continued, stop and go, for the next six years . </P>

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