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3694 we have here in the Upper Colorado River Basin with our Colorado River storage Project. It is divided into two phases. The total cost of the overall project would be about $4 billion. The initial phase would cost about $2 billion. The crux of the plan is to construct Marble and Bridge Canyon Dams on the Colorado River below Glen Canyon. which would produce power revenues to assist in the repayment of the water development projects. I . The two principal features in the initial phase are the Central Arizona Project which would take water from the Colorado River into Arizona as far south as the City of Tucson. This project in itself would cost in excess of $1 billion. The other main item of the program was to double the size of the proposed aque- ducts from northern California into the southern California area, carrying water to Los Angeles and as far south as San Diego. The concept is very good and we have no objection in the Upper Basin to the Lower Basin developing their water supplies. As far as the general concept is concerned I am sure that we can endorse it in the Upper Basin. However, there are two major items which concern us in the Upper Basin. One occurred in the Arizona- California suit during which the State of Ari- zona contended that the Gila River was not subject to the terms of the Colorado River com- pact. As far as we know that is still Arizona's position. If this were the case, and Arizona was successful as far as California is concerned in the suit. and Arizona insists on that posi- tion. this means that instead of giving the Lower Basin 8~ million acre-feet as the Compact now provides. we would be giving them in ex- cess of 10 million acre-feet. This means that the Mexican Treaty burden then will fall squarely on the Upper Basin. This would also mean that we would have to deliver in excess of 75 million acre-feet in any ten year period. This conten- tion we feel the Upper Basin cannot live with. I