toxic_pus
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Deciding to appoint 3rd party would require mutual agreement.Actually, the operative word is OR, as in, "through bilateral negotiations OR by any other peaceful means mutually agreed upon between them".
'Or' is a grammatical conjunction in a sentence to distinguish between alternate ideas/arguments in a sentence. The clause of the Simla Agreement in question is divided into two arguments/ideas. The first refers to "through bilateral negotiations", which is self-explanatory. The second part of the sentence after the 'or' therefore refers to an idea that is an alternative to the first part, and since the first part specifically refers to "bilateral", the second part of the sentence can only mean "non-bilateral", which would include third party mediation.
Selecting a 3rd party would require mutual agreement.
Appointing the 3rd party would require mutual agreement.
Implementing 3rd party's proposal would require mutual agreement.
Seems to me even this 3rd party affair is essentially a 'bilateral' thing, however you may want to spin it.