(c) Section 5 of the Act is amended (1) by striking out the first proviso ", and in no event after July 1, 1956"; (2) by inserting after the word "That" in the third proviso ", whenever the estimated Federal contribution to the construction cost of works of improvement in any watershed or subwatershed area shall exceed $250,000"; and (3) by inserting in the fourth proviso after the words "That any such plan" the words "involving an estimated Federal contribution to construction costs in excess of $250,000" and after the words "public or other lands" the words "or wildlife". (d) Said Act is further amended by inserting after section 7 of the following two new sections and renumbering subsequent sections of the Act to conform: "SEC. 8. The Secretary is hereby authorized to make loans to local organizations to finance the local share of costs of carrying out works of imprevement provided for in this Act. Such loans shall be repaid in not more than fifty years from the date when the principal benefits of the project first become available with interest, at the average rate, as determined by the Secretary of the Treasury, paid on the long-term interest-bearing marketable securities of the United States outstanding at the beginning of the fiscal year in which the loan is made. "SEC. 9. The provisions of the this Act shall be applicable to Hawaii, Alaska, Puerto Rico, and the Virgin Islands." Passed the House of Representatives April 24, 1956. RALPH R. ROBERTS, Clerk. Senator KERR. I would like for the record to show that S. 3243 by Senator Carlson, S. 3371 by Senator Fulbright, and S. 3023 by Senator Clements will all be before the committee in its hearings and deliberation on H. R. 8750. I am very happy at the attendance here this morning of representatives of the various Federal agencies and also our distinguished Senator friend from Colorado, and any other Members of the Congress who might be here. There is great interest in the amendment of Public Law 566 so as to reflect the principle and, if possible, achieve the purposes as set forth in H. R. 8750 and these other acts of like or similar nature which have been introduced by various Senators. Senator Allott, did you want to make a statement to the committee on this matter? STATEMENT OF HON. GORDON ALLOTT, A UNITED STATES SENATOR FROM THE STATE OF COLORADO Senator ALLOTT. If I could have just a few moments, Mr. Chairman, I would be very happy. Senator KERR. You have it. Senator ALLOTT. Senator Millikin, senior Senator from Colorado, and I have heretofore written you Senator KERR. And that letter is before the committee and will be made a part of the record. (Letter of Senators Millikin and Allott of July 2, 1956, follows:) UNITED STATES SENATE, Washington, D. C., July 2, 1956. Hon. ROBERT S. KERR, Chairman, Subcommittee on Flood Control, Rivers and Harbors, Senate Committee on Public Works, Senate Office Building, Washington, D. C. DEAR SENATOR KERR: In connection with the hearings on H. R. 8750 scheduled before your subcommittee on July 3, we desire to submit for the record our views in support of the objectives of the proposed amendments to Public Law 566, dealing with small watershed projects. Many thousand Colorado farmers are dependent upon irrigation for their livelihood. To many of these people Public Law 566 is one of the important laws on the statute books. We share the belief of these people that the small projects authorized by this law represent a desirable solution in the field of soil conservation. The provisions of H. R. 8750 which would broaden the program beyond “agricultural phases" to allow municipal, nonagricultural participants as a part of these projects seem entirely reasonable and in the general public interest. The proposed amendment which would authorize projects in excess of 5,000 acre-feet if the excess capacity is for other than flood control, and the entire cost thereof is borne locally, also would appear to be helpful. The soundness of providing long-term loans to local organizations for the purpose of financing their share of the projects would seem to have been established in connection with the larger reclamation projects. Also it should be hard to find fault with the proposal to extend the program to the territories. We would also favor unreservedly the objective of eliminating all unnecessary delay in the development and construction of these projects. In short, we are pleased to support the principles of H. R. 8750. Within the confines of financial soundness, which we know the committee will analyze carefully, the revisions proposed by this bill will, we believe, be of great assistance in the development and preservation of this Nation's water resources, through realistic liberalization of the small watershed policy authorized by Public Law 566. Your kindness in making this letter a part of the record of the hearings before your subcommittee will be sincerely appreciated. Sincerely yours, EUGENE D. MILLIKIN, U. S. S. Senator ALLOTT. Thank you. I will stand primarily upon the statements made in that letter. I would also like to request that certain letters which I have received there are about 6 or 7 of them in behalf and support of this bill-be made a part of the record at this point, if I may. Senator KERR. Very well. Senator ALLOTT. I would request the reporter that these letters be returned to me. (The letters referred to follow :) COLORADO STATE GRANGE, OFFICE OF THE MASTER, Denver, Colo., June 28, 1956. Senator GORDON ALLOTT, Senate Office Building, Washington, D. C. DEAR SENATOR ALLOTT: Colorado State Grange is very much in favor of Senate amendment 8750 to Public Law 566. We understand you are having a hearing on July 3 pertaining to this amendment, and we sincerely hope you will support it. I plan to be in Washington the week of the 9th of July and will call on you at that time. Thanking you, I am, Yours very truly, HENRY CHRISTENSEN, Master. COLORADO ASSOCIATION OF SOIL CONSERVATION DISTRICTS, Hon. GORDON ALLOTT, Washington, D. C. DEAR SENATOR ALLOTT: I have been advised that there will be a hearing regarding H. R. 8750 before Senator Kerr's subcommittee of the Public Works Committee on July 3. As you know, H. R. 8750 is an amendment to Public Law 566.. To facilitate the working of Public Law 566, the Watershed Protection Act, we must have the proposed amendment H. R. 8750. Colorado is dependent upon irrigation in much of its farming area and the amendment I speak of will be of great assistance to Colorado. Also, the other parts of the amendment are needed in Colorado. As you are familiar with the needs of this State, I shall not go into further detail regarding H. R. 8750, but shall close with my request that, if at all possible, to appear before Senator Kerr's committee and with all possible support. Very sincerely yours, CLARENCE SVEDMAN, President. Hon. GORDON ALLOTT, United States Senate, UPPER WHITE RIVER SOIL CONSERVATION DISTRICT, Washington, D. C. DEAR SENATOR ALLOTT: The people of the Upper and Lower White River Soil Conservation Districts are strongly in favor of the Poage amendments (H. R. 8750) to the present small watershed bill. We feel that these amendments are most necessary to eliminate the redtape that now keeps these small watershed projects tied up in Washington. We are also concerned with the recent attack made by the Corps of Army Engineers on the small watershed projects. We sincerely hope that these projects will remain under the supervision of the Soil Conservation Service and our locally administered soil conservation districts. Sincerely yours, Hon. GORDON ÁLLOTT, HARRY S. COLEMAN, President. FORT COLLINS SOIL CONSERVATION DISTRICT, Senate Office Building, Washington, D. C. DEAR SENATOR ALLOTT: The Fort Collins Soil Conservation District has made several atempts on watershed protection projects under Public Law 566 as well as the small watershed pilot projects preceding passage of Public Law 566. We have been unable to work out financing arrangements for that part carried by the local people because of the inability to make beneficial use of water for irrigation. We, therefore, feel that the amendments to Public Law 566, containd in H. R. 8750, are absolutely essential if Colorado and other semiarid States are to make any use of the small watershed flood prevention programs. We sincerely urge that you appear before the Public Works Committee, United States Senate, and make every attempt to secure passage of H. R. 8750 during the present session of the Congress. Very sincerely yours, GEORGE E. WEAVER, President. THE NATIONAL ASSOCIATION OF SOIL CONSERVATION DISTRICTS, Hon. GORDON ALLOTT, Senate Office Building, Washington, D. C. DEAR SENATOR ALLOTT: It is my understanding that hearings will be held July 3, before Senator Kerr's subcommittee of the Public Works Committee on H. R. 8750, amendment to Public Law 566, the small watershed law. I again wish to emphasize the importance of the passage of this amendment to the agricultural interests of the United States, and particularly to the people of Colorado. It is hoped that we may count on you to use your influence to see that this amendment is acted upon before Congress adjourns this session, and your favorable support of same when it comes before the Senate for a vote. Sincerely, L. B. CASSELMAN. COLORADO ASSOCIATION OF SOIL CONSERVATION DISTRICTS, Craig, Colo., June 26, 1956. Hon. GORDON ALLOTT, Senate Office Building, Washington, D. C. DEAR SENATOR: Public hearings before the appropriate Senate committee on H. R. 8750, an act to amend Public Law 566, will be held soon. This legislation, as you no doubt know, pertains to the revision of the Small Watersheds Act. The people of our soil conservation district and Moffat County are very greatly concerned lest this legislation fails of enactment. To make Public Law 566 workable and really effective we need and request this amending H. R. 8750. I believe Sentor Kerr of Oklahoma is chairman of the Senate committee that will hold hearings on this legislation. We ask that you give your best efforts at these hearings and, of course, your favorable vote on the Senate floor. Yours sincerely, I. P. BECKETT, President, Yampa Soil Conservation District. COLORADO ASSOCIATION OF SOIL CONSERVATION DISTRICTS, Padroni, Colo., June 27, 1956. DEAR SENATOR: We thought that we were over the hill on the Poage amendment to Public Law 566. I received word through Clarance Svedman from NASCD that the Senate version is not so liberal. We sincerely request you appear at the July 3, hearing of the Kerr committee and explain to the boys of the Senate, that we in Colorado have such varying conditions that it is absolutely necessary to have more leeway in operation of Small Watershed Act. Thanks. D. B. BOSWELL, President, Western Slope District. DEBEQUE, COLO., June 27, 1956. DEAR SENATOR: Again I am writing you as a director on our State board of Association of Soil Conservation Districts and I think I represent the thought of most of the directors in my district. Although I am not as familiar with H. R. 8750 amendment to Public Law 566 I think it is a necessity for the best interests of the soil-conservation program in Colorado. Sincerely, RAY E. RIEKE. Senator ALLOTT. May I add this: Mr. Chairman, I do not know of any single question which has come before this Congress which has raised such widespread interest as this particular bill and the other bills which are allied bills. My people, of course, as the chairman knows, have very much the same problems that his people have in his own State, and I think that accounts to a great degree for the interest which has been shown in this bill by the people of our State. We are very interested in it. We believe that the real steps to conservation are going to come between providing incentive and ability for people to control the waters and the floods at the high levels, to conserve the water, and to prevent these runoffs which deplete the soil and also create canyons throughout the West. Besides that I have nothing to add at this time except to say that we are very much in support of the bill. Senator KERR. I would like to ask the Senator a few questions if I may. You are aware of the adverse position taken by various departments of the executive branch of the Government with reference to H. R. 8750? Senator ALLOTT. Not the particular positions that they have taken; no, sir. I know that there are some branches which are not in favor of H. R. 8750. Senator KERR. Now, some of the matters that are going to be before us are going to be with reference to these questions: No. 1, the removal of limitation on size of the reservoirs as contained in Public Law 566. Do you have any comment to make on that phase of the legislation? Senator ALLOTT. Let me say first with respect to the financial implications of such legislation I do not feel that I am qualified to speak on that particular end of it, but I will also add this: That I believe that there should not be any small limitation such as 5,000 acre-feet on these reservoirs; 5,000 acre-feet will cover a lot of them, but it will not cover a great many of those that Senator KERR. Then you favor removal at least of that limitation? Senator ALLOTT. That is right; I do. to Senator KERR. You certainly favor the expansion of the program include irrigation benefits where possible, and municipal and industrial water supply? Senator ALLOTT. Very much so. To me, one of the most significant parts of this bill will be the expansion of that so that it will include joint municipal uses. The bill as I read it now-and I would be happy to be corrected if I do not understand it-will provide that municipal uses above that would have to be financed by the municipality or whoever was creating it entirely. Senator CASE. Well, Senator, do you mean by "financing" that they should advance the funds or that they should be liable for the additional costs on a reimbursement plan over a period of years? Senator ALLOTT. Well, I am not thinking in terms of grant. I think they should be liable for it upon a reimbursement. Senator KERR. But what the Senator is addressing himself to is one of the very pointed questions of this matter, and that is whether or not the municipality comes in at the beginning and pays for that part of it or whether they operate under the principle now applicable to irrigation users whereby the Federal Government would construct it and the municipality would agree to reimburse the Federal Government for part of their reservoir used for municipal water and do the reimbursement over a definite period of years with interest. Senator ALLOTT. The latter point, Mr. Chairman, is the point of view which most nearly reflects my own. I do not see how in many instances municipalities can do that, that is, go in and finance it themselves. Senator CASE. At the outset ? Senator ALLOTT. At the outset. If we are going to accomplish the double-barreled objective that I see as far as municipalities are concerned, which is to supply them with additional water and also to contribute to flood control and to the conservation of water and lands, I believe that we have to make it a reimbursable project as is the nature with irrigation projects. I realize that this involves in a sense a new approach to what has been an old problem. Senator CASE. We passed in the Senate last year a bill to authorize the Corps of Engineers to enter into contracts with the municipalities, to give the Corps of Engineers the same authority with respect to |