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APPENDIX I . c.' ,:'.-1.- ~"~"'/d"r ~ - -'.-'~ . ~ !../ "'~ ~.J"'II'''~' . '~~-/f;' UNITED STATES CEPARTMENT OF THE INTERIOR OFFICE' OF THE SECRETARY WASHINGTON 25. C. c.; .~ December 17, 1963 \ y LETTER TO CHAIRMEN JACKSON AND ASPINALL, COMKITTEES ON INTERIOR AND IllSULAR AFFAIRS, SENATE AND HOUSE OF REPRESENTATIVES, RESPEctIVELY flear Mr'. Chairman: The attached Report on Financial POSition, Missouri River Basin Project, December- 1963, summarizes the project's legal and financial background, the origin of the problems with which we are now faced, and sets forth the results of an analysis based, upon principles and criteria reco~.nded for adoption for the future, Before discussing these items, howe'Ver, it' appears appropriate to set forth the overall economic situation in the Missouri River basin, the outlook for the future, and our ideas as to the appropriate role of the Government. The Missouri River basin, as it will be discussed in this letter, occupies about one-fifth of the land area of the forty-eight conterminous statu and is comprised of all orparta of 10 states, Seven of these states, Colorado, Kansas, Montana, Nebraska, North Dakota, South Dakota, and Wyoming, are so-called Recl~tion states and, as such, contain portions of the authorized plan of water resource development known as the Missouri River Basin Project. The States of Iowa and Minnesota are conSidered as parts of the project area for power marketing purposes although they are 'not included among the states in which the Bureau of Reclamation otherwise operates, Major regions within the Missouri River Basin Project area have been subject to continuous relative economic decline for more than forty years. Total population growth has not kept pace with national trends and, in certain basin States, is net appreciably greater than forty years age. Opportunity for youth is limited, and many of the young men and women migrate from the basin or to the few major urban centsra within the area. Most of the small towns are growing smaller, and sOllIe have ciiuppured entirely. 'the nlllllber of farm f8llliliea has declined, and per capita income has not increased commensurately with other sectors of the economy. The, States of North Dakota and . South Dakota illustrate basin-wide economic trende for this predominantly agricultural srea. In these two States the combined change in popula- tion from 1920 to 1960 has amounted to an overall growth of less than three percent. against. a national growth of lIICre than 70 pereent. In like manner, per capita income statistic. show that the agricultural States fall below national averages by amounts ranging from 6 to 30 percent.