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'~.: ,,' ."'11'".,., " 002~)7 .".....1, surplus. It would h:!,ve to be shown also that the diversion of that water would be "the most economical means of meeting the need in areas where a shortage exists or is approaching" . said Mr. Dominy. ' Northwesterners weren't the only ones hearing aoout hard realities. In Tucson, Ashby Lohse, a member of the Arizona Interstate Stream Commission, said iIl, a talk to the Tucson Rotary Club that President Johnson would veto any CAP bill that did not satisfy California. Yet the events in Congress during the past two years, he said, led to the "inescapable conclusion" that any bill satisfying California would not meet Arizona's needs. Therefore Arizona would have to demonstrate both its determination and its ability to build CAP on its own. Once it did so, said Mr. Lohse, California would take whatever it could get and 'a federal project could be put through Congress.' Therefore Arizona was considering three state approaches to CAP: (1) Build only the water-diversion works, costing about $500 million. No dams. Incur a deficit of about $300 mil- lion over a 50-ye:!T payout period, such. deficit to be made up from some state source. (2) Build water-diversion works plus Marble Canyon Dam, using revenue from the sale of Marble Canyon power to p:!.y off the project. (3) Build water works plus. Marble plus Hualapai. Use revenues from Hualapai to pay for some kind of water importation project after CAP was paid for. Could the project he finan'ced if the state had to build it? Mr. Lohse said he had been assured by New York' bond firms that it could. But if both approaches-state and federal-failed, Tucson must be prepared to build its own water-diversion works, said Mr. Lohse. The cost? About $125 million, which would mean doubling present city water rates. But the alternative-a ceiling , or' a restriction on Tucson's development-would be more costly. "Until Tucson has a secure water supply, it will have problems," said Mr. Lohse. "There is no source of supply other than the Colorado." Pinal Farmers Back State CAP There was some soul-searching in Pinal county as ~ell as Tucson, and the result WHS the formation of an association to go after a state CAP with no federal strings attached. The association was made up of Pinal farmers, including officers of irrigation and electrical districts. They sent a telegram to Sec- retary Udall advis'ing that they favored immediate construction of a state-financed project. They said they opposed any further efforts to get federal approval if that involved guarantees to other states exceeding what the Supreme Court had granted them. "We're not against a federal program," said Chairman Martin Talla, Casa Grande and Stanfield farmer. "But we are definitely against the 4.4 plan for California." James L. Savage, -26-