PAKISTAN SEEKING WAY OUT OF ECONOMIC IMPASSE

Greymouth Evening Star, 29 December 1949, Page 5

PAKISTAN SEEKING WAY OUT OF ECONOMIC IMPASSE

KARACHI, December 28 (Rec. 11 a.m.)i—The Minister of Finance, Ghulam Mohamed, announced today that the Parliament had agreed to take part in an Indo-Pakis-tan conference to discuss issues arising out of devaluation and thus to seek to. terminate the inter-Domin-ion impasse, states the associated press. , ■ ' An earlier message from .London stated: “India’s decision to suspend coal supplies to Pakistan in retaliation for Pakistan’s failure to deliver raw jute 'already bought and paid for by India seems likely to precipitate a full-scale economic war between the two countries” says the Delhi correspondent of The Times. “The newspapers on both sides are clamouring for further reprisals. “There is talk on the one hand of Pakistan stopping goods traffic on the railway from Assam through East Bengal and petrol supplies for East Punjab through Karachi and Lahore. On the other hand some Indians are threatening to cut off-.. West Punjab’s supplies of canal water and electric power l from headwork's and stations in Indian territory. “Both Governments profess a determination to last out this war of attrition without compromising on the currency . devaluation issue. Pakistan’s Minister of Commerce (Mr Fazlur Rahman) maintains that Indian policy does not affect his country, and India’s Minister of Commerce (Mr K. C. Neogy) asserts that Pakistan has rejected India’s offer to arbitrate their differences.”