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UNITED STATES DEPARTMENT OF THE INTERIOR OFFICE OF THE SECRETARY WASHINGTON 25, D. C. Memorandum for Deputy Director Elmer Staats, Bureau of the Budget: On March 12 Secretary Udall submitted a draft report on Senator Hayden's bill, S. 502, which would suspend the authority of FPC to license hydro projects on the lower Colorado River until December 31, 1968. In submitting that proposed report, Secretary Udall emphasized that it was essential, in his view, that S. 502 receive full and prompt administration support. With Arizona v. California now having been decided, the need for a prompt and firm administration stand in favor of S. 502 is even more pressing. On June 12 Secretary Udall advised the Governors of the lower basin states and concerned congressional quarters that the Department was proceeding at once to develop a five-state lower basin regional water plan to be ready for review by the affected states as soon after August 15 as possible, and which, with implementing proposals, would be ready for presentation to the Congress when it convenes in January of 1964. A copy of the Secretary's letter is attached. The Senate Interior Committee has now called upon us promptly to submit our report on S. 502. Unless this request is complied with and with full administration backing the administration's position on lower basin development will be seriously compromised. The Court's opinion and our plan to proceed immediately with preparation of a comprehensive report calls for a modification in the report on S. 502. The attached would be substituted for the third paragraph on page six of the draft report now before you. Under Secretary Enclosures Carr cut out this part of it which weakens it considerably in the view of Beatty and Weinberg.Epson Perfection 4870 Photo, 400 dpi, 24 bit, 46,807,040 byte