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<br />.-lHHI1-12 - <br /> <br />BUREAU OF THE BUDGET COMMENTS <br /> <br />EXECUTIVE OFFICE OF THE PRESIDENT, <br />BUREAU Of' THE BUDGET, <br />Washington, D.C., June SO, 1970, <br /> <br />HOIL WALTER J, HICKEL, <br />Seerelllry oj the Interior, <br />Washington, D,a <br />DEAlt ~[H. SECRETARY: This is in reply to Assistant Secretary <br />Smi.th's !e~ t~'r of June 8, .1970, transm~tting your report on the Clo~cd <br />BnslII dl\"lSIOIl, San Lms Valley proJect, Colorado, and requesting- <br />udvice regarding the relationship of the project to the program of the <br />Presiden t. <br />The cost of the project is estimated to be $14,931,000, of which <br />$13,492,000 are nlloentcd to \vnter sulvuge and the remaining <br />$1,439,000 urc- alloeulpd to recreation llnd fish and wildlife enhance- <br />ment. The project's ratio of direct benefits to costs is about 1.3 to 1.0. <br />The primary purp<?se of the Closed Basin division would be to <br />rt"duce the water debIt of the State of Colorado under the terms of <br />the Rio Grand,' Com pace Thc project would make this possible by <br />salvaging water in the Closed Bn..sin of Colorado and delivering it to <br />the State of N ew ~Iexico, at u nonreimbursable cost to the Federal <br />Government of nearly $13,5 million, <br />Undertaking the proposed project presumes a Federal responsi- <br />bility to underwrite the obligations of the States under the compact. <br />We do not belie,'e the Federal Govermnent hIlS such a responsibility, <br />Instead, we believe it is the res!)onsibility of the States who are <br />directly concerned to comply wit 1 the terms of the compact, or if <br />the compact is deenll.d inadequate, to ne~otiate a new one. <br />Accordingly you are advised that the Bureau of the Budget does <br />not believe the Federal Government has responsibility to underwrite <br />the obligations of the State of Colorado under the Rio Grande Com- <br />pact, and therefore, we recommend that the project not be authorized. <br />However, there would be no objection to the transmittal of your <br />report to the Congress for its information. <br />Sincerely, <br /> <br />JAMES R. SCHLESINGER, Acting Director. <br /> <br />(\') <br />