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reservoir could be undertaken in the absence of reservoir construction. The Bureau believes the scope of the recreation plan proposed as an integral component of the proposed Mount Carbon reservoir project goes beyond that intended in the Federal Water Project Recreation Act. There- fore the Bureau recommends against authorization of recreation development beyond that normally related to a proposed Federal dam and reservoir. ~ , I I The Bureau concurs in the item of local cooperation pertaining to guidance and leadership in preventing unwise and uneconomical future development of the flood plain areas by encouraging prudent use of flood proofing, land regulation planning, and other flood plain management techniques to reduce future flood losses. Because a large percentage of flood control benefits are due to protection of future development in the flood plain, the Bureau believes the project should be reviewed prior to initiation of construction to determine if the size and scope of the proposed plan should be modified to achieve the most practicable 'balance between structural works, flood plain regulation and a broad flood plain management program. .' , "., I concur in the views of the Bureau of the Budget. With,respect to_the recreation development in_ c~nnection with the Mount Carbon reservoir proj- ect, I recommend- against authorization of recreation development beyond that normally related to a proposed Federal dam and reservoir. Scaling the" recreatiori._-,!evel~pment t,,-_that normally, related to a Federal water resources reservoir project would reduce the estimated Federal cost to $22..,651,000 for construc_ti()~. If the project is authorized, the Chief of Engineers, during the precon- struction planning stage will review the size and scope of the proposed project and modify the plans as needed to achieve the most reasonable balance between structural works, flood plain regulation, and a broad program of flood plain management. The objective of this review is to avoid uneconomic, hazardous or unnecessary development of the area subject to flooding. Subject to consideration of its views, the Bureau of the Budget advises there would be no objection to submission of this report to the Congress; however, it states that no commitment can be made at this time as to when any estimate of appropriation would be submitted for construction of the project, if authorized by the Congress, since this would be governed by the President's budgetary objectives as determined by the then prevailing fiscal situation. A copy of the letter from the Bureau of the Budget is inclosed. (,\,-. . Sincerely yours, 1 Ind Report 5r~~, ~ STANLEY R. RESOR Secretary of the Army viii