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<br />project. This modification would reflect a recognition that the <br />total national well-being is the summation of local and regional <br />well-being and is not based simply on national economic efficiency. <br />The inclusion of the regional development objective in <br />the formulation and evaluation of each plan would have the effect <br />of eliminating the benefit-cost ratio with respect to national <br />economic efficiency as a "go-no go;' signal and thus mitigate the <br />effect of a high discount rate; but the use of the opportunity <br />cost discount rate would still give those responsible for judgments <br />concerning federal water resource projects a distorted view of <br />the merit of investments in water resource projects by substi- <br />tuting the time preferences of the individual for the time <br />preferences of society. <br />!! is ~ Mexico's view that the ..appropriate discount rate <br />for the formulation ~ evaluation of federal water resources <br />projects is the average ~ of interest payable ~ the Treasury <br />on interest bearing marketable securities ~ the United States <br />outstanding at ~ ~ ~ the fiscal year preceding_~ computation <br />which upon original issue had terms to maturity of fifteen years <br />or more. <br /> <br />The Water Resources Council proposal acknowledges that <br />current reimbursement and cost-sharing policies require review <br />at an early date. Reimbursement and cost-sharing policies as well <br />as principles and standards for evaluation affect project formu- <br />lation. It is ~ Mexico's view that adoption of ~ principles <br />and standards should be deferred until they ~ ~ adopted <br />and implemented in coordination with revised reimbursement and <br /> <br />-7- <br />