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Zeutschel OS7000, 400 dpi, 8 bit,capacity in the initial stage to permit later project expansion would also be an obligation against New Mexico's share of the basin fund revenues, to be paid from that apportionment if not otherwise collected as a result of subsequent allocations to the water users. Authorization of an irrigation development such as the proposed Navajo Indian irrigation project would implement the recognition given in the act of April 11, 1956, of the Nation's responsibility to help alleviate the severe economic distress among the Navajo people by providing them an opportunity to earn a respectable standard of living. It would enable an estimated 1,120 families to establish homes on irrigated farms and would create employment for an additional 2,240 families. The proposed project has the support of the Navajo Indian Tribe and an on-the-farm training program, financed with tribal funds, is in operation to prepare members of the tribe for irrigation farming. A development such as that which is embraced in the initial stage of the proposed San Juan-Chama project would help materially to meet the pressing need for additional supplies of water in the Rio Grande Basin where present requirements have reached the point where they far exceed available supplies. This need of the Rio Grande Basin vitally affects the welfare of more than half of the population of New Mexico and, if it is not satisfied in the near future, threatens to check the economic development of the State. The Secretary's planning report on these projects recommends that detailed studies of fish and wildlife resources affected by both projects be conducted in accordance with section 2 of the Fish and Wildlife Coordination Act, and that such reasonable modifications in project facilities and operations, including the acquisition of land, be made by the Secretary as he may find appropriate to preserve and propagate these resources. We recommend against the retention of section 8(a) of the bill in its present form. The language of this section is not clear. It may be that it is intended to reaffirm the provisions of article VII of the Upper Colorado River compact which charges water used by the United States or its agencies, instrumentalities, or wards to the State in which the use occurs. If this is all the language does, it would have no adverse effect on the operation of Navajo Reservoir or either project to be authorized by these bills, as each of them has been planned within the framework of the compact. If this is the intent, we believe that the section should either be couched in the same terms as article VII of the compact or, since it is unnecessary, be deleted entirely. If it does something more, or limits or restricts the rights of the Indians to the water, its inclusion in the bills is then improper. The citation appearing in lines 4 and 5 of page 6 should be corrected by adding after the second comma, the following ‘‘as amended by section 9 of the Act of June 27, 1960 (74 Stat. 227),’’. A statement of personnel and other requirements that enactment of the bills may entail is attached in accordance with the provisions of Public Law 801, 84th Congress. The Bureau of the Budget has advised that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely yours, STEWART L. UDALL,Secretary of the Interior