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.. (4) That construction costs allocated to silt control, recreation, salinity control, the administration of the Mexican treaty and similar purposes, should be non-reimbursable. RECOMMENDA nONS I recommend: (1) That you adopt this as your interim report on the status of the investigations authorized to be made by section 15 of the Boulder Canyon Project Act Adjustment Act (54 Stat. 744); (2) That you transmit this report, together with the accompanying comments of the States and Federal agencies, your proposed report dated June 7, 1946 and the accompanying basic inventory report of the regional directors to the President, and then to the Congress, in order that they may be apprised of the contents of this comprehensive inventory of potential water resource developments in the Colorado River Basin and of the present situation regarding water rights in the Colorado River Basin, which situation precludes my recommending any projects for construction at this time." Sincerely yours, (Signed) Michael W. Strauss, Commissioner. Approved and adopted July 19, 1947. (Signed) J.A. Krug Secretary of the Interior. 97 Simply put, the Administration was making it clear that in return for future federal appropriations for the development of the Colorado River, the Basin States needed to complete the work started by the 1922 Compact by further apportioning water to the individual states. The Upper Colorado River Basin Compact Secretary Krug' s recommendations were not a surprise to the Upper Basin. In fact, the states had been discussing in a conceptual manner an Upper Basin compact for over a decade. Governor Hunt of Wyoming wrote a letter to the governors of the other three states on January 19, 1945 requesting each state appoint a compact commissioner. Colorado initially deferred the request, 97House Document 419, Letter of Transmittal. Page -34-