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2 way--that specify that any additional water made available must be used to "open-up" new land. Interior believes the State of California must assume the initiative in altering water use priorities within California to enable salvaged waters to be used for municipal and industrial purposes. Moreover, Mexico can be expected to object to lining of All-American Canal. Comments - The problems raised by Interior in assuring that salvaged waters will be used for non-irrigation purposes are not to be minimized. Nevertheless, in view of the critical water shortage existing in the Pacific Southwest, we believe the Federal Government would be in a difficult position, should it commit itself to a $1.6 billion construction program to import water into an area without first requiring that existing local supplies be conserved and utilized to the fullest extent physically possible. (b) Arizona Distribution System Construction and Lining Interior is working on language to condition delivery of water to irrigation users upon their agreeing to undertake lining of canals and distribution systems. This conservation measure is essential. (c) Salvage From Phreatophyte Control on Non-Federal Lands Interior is exploring feasibility of taking advantage of this water saving measure. 3. THE GUARANTEES TO LOWER COLORADO BASIN AND TO AREAS OF ORIGIN Interior position - Secretary Udall said on Thursday that the guarantees were the "keystone of the Plan;" that without them, the "Plan falls." California recommended these guarantees, and, if the Secretary is to achieve his objective of composing differences between Arizona and California, the guarantees in their present form must be part of the Plan in order to assure California's support. Interior considers that the water cost guarantee can be supported in view of the Federal Government's historical role in encouraging development on the basis of the availability of 7.5 million acre-feet, agreeing to supply Treaty water to Mexico, and in view of the need to implement the Supreme Court's decision in practical terms. Comments - (a) Lower basin water supply guarantees: The water supply guarantee in accord with existing law is not questioned. Interior staff have revised the draft bill wording to reflect the Director's suggestion on limiting the guarantee to a definite quantity, and this appears to take care of this problem.Epson Perfection 4870 Photo, 400 dpi, 8 bit, 14,249,984 byte