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3785 Na.than R., lIargold -8- Hay 16. 1938 . quantity is far in excess of that amount of water vmich the Lower Basin states are entitled to receive under the Colorado River Compaot and the Boulder Canyon Projeot Aot. The Upper Basin states take the position that my improvement or development for power by the City of Los Angeles or the l,:etropoli tan Water Distriot. under the proposed contraots. or other- wise, shall not in any manner be taken to entitle the Lower Basin states to any use of water for the produotion of eleotrical energy. or for any other purpose, in excess of that quantity permitted by the Colorado River Compaot and the Boulder Canyon Projeot Aot. The City of Los Angeles requests an extension of the time for amorti- zation of the cost of machine~ and equipment usod at Boulder Dam from a period of ten years, to a poriod of fifty years. If the provisions of the oontract are adequate to maintain this investmont so that the security of the Government may at all times be preserved. and if the interest rate is fair. we see no objoction to the suggested extension of time. " The Uppor Basin states arc in no way dispoSQd to sta.nd in tho way of the propor developmont of any sistor state. Wo havo met on nil@Crous ooea- sions, and have listened to dotailed presentations by representatives of Southern California. and have tried to accomodate our minds to their pro- posals. The questions involved in this controversy are still the subject ef serious consideration by the Upper Basin states and will be pursued at the August cenferenoe. If there is a fair selution oonsistent with tho basic rights ef all tho statos invelved, it is our hope that it ~y dovo10u,