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SECRET 24 entered Pakistan from India. Pakistan was thus in a better position to settle its refugee situation than was India, which not only had to allocate larger sums for refugee settlement, but many of the refugees on the Indian side are still inadequately housed. At the end of 1948 and in early 1949 Pakistan and India made pre- liminary moves toward the exchange and restitution of these abandoned properties. A pact was signed recognizing that the refugees had not forfeited their right to property left behind, and the two countries agreed to (1) the private exchange or sale of immoveable urban property; (2) the collection and remission of rents on rural and urban property pending ultimate settlement, and (3) the exchange of land records as a preliminary to a more detailed agreement on agricultural property. Since the first detailed estimates of the value of the respective properties became available (evacuee property in Pakistan is valued at about three times that which it is in India) Pakistan officials appear to have been reluctant to proceed. At the end of 1949 when the Indian Prime Minister suggested that the two countries make a concerted effort to solve the three major dis- putes outstanding between the two countries Pakistan answered that inas- much as the value of evacuee property partly depended on the supply of canal water the dispute over water rights would have to be settled before the evacuee property question could be taken up. This response has strengthened Indian fears that Pakistan might, if a settlement of the water rights dispute were reached, refuse to follow through on the preperty question, particularly as a strict accounting based on property values might require an enormous payment to India by Pakistan. The SECRET

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Page context
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    "ocrText": "SECRET\n24\nentered Pakistan from India. Pakistan was thus in a better position to\nsettle its refugee situation than was India, which not only had to\nallocate larger sums for refugee settlement, but many of the refugees\non the Indian side are still inadequately housed.\nAt the end of 1948 and in early 1949 Pakistan and India made pre-\nliminary moves toward the exchange and restitution of these abandoned\nproperties. A pact was signed recognizing that the refugees had not\nforfeited their right to property left behind, and the two countries\nagreed to (1) the private exchange or sale of immoveable urban property;\n(2) the collection and remission of rents on rural and urban property\npending ultimate settlement, and (3) the exchange of land records as a\npreliminary to a more detailed agreement on agricultural property.\nSince the first detailed estimates of the value of the respective\nproperties became available (evacuee property in Pakistan is valued at\nabout three times that which it is in India) Pakistan officials appear\nto have been reluctant to proceed.\nAt the end of 1949 when the Indian Prime Minister suggested that\nthe two countries make a concerted effort to solve the three major dis-\nputes outstanding between the two countries Pakistan answered that inas-\nmuch as the value of evacuee property partly depended on the supply of\ncanal water the dispute over water rights would have to be settled before\nthe evacuee property question could be taken up. This response has\nstrengthened Indian fears that Pakistan might, if a settlement of the\nwater rights dispute were reached, refuse to follow through on the\npreperty question, particularly as a strict accounting based on property\nvalues might require an enormous payment to India by Pakistan. The\nSECRET"
}