At Gwadar, a Belgian company is engaged in the construction of a Fish Harbour for US$ 45 million provided mostly under Belgian Grant/Soft Aid. A telephone and telegraph facility based on DOMSAT satellite has recently been inaugurated. The fish catch in the area will justify the size of the facilities, the harbour when constructed can also easily accommodate naval vessels, more importantly it can be easily expanded to cater for larger vessels. The works parameters may be expanded so that benefit is derived from present construction mobilisation. Placed just outside the Gulf, Gwadar has strategic importance, it is a natural staging port for the Gulf in case war between Iran and Iraq should ever break out again, a distinct possibility. Supertankers may not be able to go into the Gulf this time with Iranians better equipped to interdict them with naval forces.