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('1:'h'2 n'H,eHng is resurnedo.t 9,00 A.M., May 2, 1947 at the Co:aal Room of the 1';1 Rancho Vegas Hotel) .. r- ~ MR,MATTHEW.: Mr. Chairman and Gentlemen, yesterday when we adjourned, I believe that we had completed the comments by the State of Nevada. There are no representatives from ~rizona here. so that just by way of reviewing the Arizona report, we might go through the summary. '-'~~ Arizona views .the report 'lS an inventory of possible projects, and indicates that further investigation will be necessary before the Bureau would be in a position to recommend authorization for construction. With respect to the Bureau's recommendation on selection ofprojeds, the Arizona comments state that it is now desirable and possible for each of the States in the Basin to recommend for construction projects within that State for which the stream flow depletions will assuredly be within the allocation of r,olorado River Water, which has been made to that State, or which will be made to that State. Then Arizona proceeds to state that it is now poosible and desirable to make a sub-compact for allocation amoIlg the respective States of the Upper Basin. and, coming to the Lower Basin, her comments state that the apportionment among the States of the Lower Basin of the water apportioned to the Lower Basin by the Colorado River Compact, has beeu affected by the Colorado River Compact, the Boulder Canyon Project Act. the Cl>,Hfornia Limitation Act, the Mel<ican Treaty, the contract between the United States and the State of Arizona, the contract between the United States and the State of Nevada, and the contracts between the United States and the agencies of the State of California, In other words. Arizona takes the position that no sub-compact is necessary in the Lower Basin, that the mattei' is decided by those various instrum.ents. Arizona then proceeds to set forth what Arizona is entitled to under those instruments, as she interprets them, stating that: "The Colorado River Compact (Article ill (a) and (b) apportions to the Lower Basin eight and one-half million acre feet of water annually in perpetuity. In consideration of the passage of the Boulder Canyon Project Act and its becoming effective. the legislature of California adopted the California Limitation Act (Cahpter 16, California Statutes 19Z9) as required by the Boulder Canyon Project Act, which Act limits California's use of water of the Colorado River irrevocably and unconditionally, and for the benefit of Arizona, Colorado, Nevada, New M'exico, Utah and Wyoming to 4,400,000 acre feet of the eight and one-half million feet apportioned to the Lower Basin, in perpetuity, for use each year by the Colorado River Compact. -45- i;