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<br />o <br />,~ <br />t<, <br />~ <br />C.' <br />C) <br /> <br />. <br /> <br />. <br /> <br />cost. We do know that the saline water pipelines will be entirely <br />separate from the coal slurry lines and will run directly from water <br />sources to points of use. <br /> <br />Another factor which encourages optimism is the very real possibility of <br />Aquatrain, Inc., securing U.S. financing by March of this year, and <br />potent i ally Japanese fi nanci ng by June. A commitment of funds will <br />allow Reclamation and Aquatrain, Inc., to proceed with a number of acti- <br />vities now in planning, for example: <br /> <br />Investigations of possible saline water use opportunities and <br />sel ect ion of projects for detailed study to be conducted joi ntly <br />with Aquatrain, Inc., as scheduled in 1985. <br /> <br />Detailed engineering design work on the slurry pipeline, including <br />an investigation of major equipment required for the system. <br /> <br />A demonstration facility for testing and refinement of the liquid <br />carbon dioxide transport technology on a commercial scale. <br />Previous tests have been in a small-scale pilot plant only, and <br />more realistic demonstration is needed. <br /> <br />Public involvement and environmental scoping activities. <br /> <br />We are making progress with the resources currently at our disposal. <br />Yesterday we met with the Department of Commerce and the Office of the <br />Vice President to discuss ways of facilitating a protocol between the <br />U.S. and Japanese governments for their part in WESTRANS. The trade <br />deficit which ranges from $30 to $50 billion annually makes such a pro- <br />ject an attractive alternative for Japan to increase imports and aid <br />international relations. <br /> <br />Also, as I mentioned, we are negotiating a modification to the cooperative <br />agreement with Aquatrain, Inc., to establish the value of the govern- <br />ment's participation in the project. Through this agreement, Aquatrain, <br />Inc., will further demonstrate its commitment to the project. <br /> <br />I think we can be proud of our agency and department management for <br />their progressive attitude in pursuing the AQUATRAIN concept. This unusual <br />relationship between the private and public sectors obviously holds many <br />opportunities for both partners and may serve as a model for future <br />cooperative efforts. <br /> <br />I trust that you will share my enthusiasm and optimism, and that you will <br />feel free to call on me at any time to answer questions you may have as <br />the project develops. <br /> <br />4 <br />