Colonel GEE. There are no arrangements for participation in the cost of this project by the Canadian Government. However, the Canadian Government, to my knowledge, has no plant on the river which would benefit from this project in existence at the present time. The International Commission passes upon plans of this character in order that the interests of the two countries in this Columbia Basin may be brought together and differences worked out and a mutually acceptable plan provided.

The CHAIRMAN. As approved by this Commission, as far as you know.

Colonel GEE. This project has been approved by that body.

The CHAIRMAN. What is the flood protection and what areas will benefit by that protection, including the cities, towns, and improved land?

Colonel GEE. The agricultural areas on the Pend Oreille River downstream from this project, in the northeast corner of the State of Washington.

The CHAIRMAN. What is the length of the river?

Colonel GEE. About 50 miles are involved. The persons farming that bottom land will be directly benefitted by this project. The combined effect of this project and flood-control storage proposed in Grand Coulee Dam would serve to reduce heights on the lower Columbia River.

The CHAIRMAN. What is the distance of this dam from the ocean? Colonel GEE. I don't know, sir.

The CHAIRMAN. About how far?

Colonel GEE. About 500 miles.

The CHAIRMAN. Go ahead. I just wanted to get something for the record.

The estimated cost and the benefit-cost ratio is what?

Colonel GEE. The estimated cost of this project is $31,070,000. The benefit-cost ratio is 2.65 to 1; and it is a project which will increase the available power in the Columbia River Basin at the earliest possible date by virtue of the fact that the power will be increased immediately upon completion of the dam and is not dependent upon the installation of power-generating facilities at Abeni Falls.

The CHAIRMAN. What is the estimated cost of the power-generating facilities at this dam?

Colonel GEE. About $16.300.000, sir.

The CHAIRMAN. And the estimated cost of the dam in addition to that is

Colonel GEE. About $14,700.000 for the dam; about $16,300,000 for the powerhouse.

The CHAIRMAN. The ratio of benefits is

Colonel GEE. Two point six five to one, sir.

The CHAIRMAN. Are any members desirous of asking any questions at this point?

Colonel GEE. Mr. Chairman. I have a letter from the Munitions Board which I should like to insert in the record at this point urging the early completion of this project to augment the power supply in the Columbia Basin.

The CHAIRMAN. That letter may be filed in connection with your statement. Have you any other further statement to make generally for the record?

Colonel GEE. Another letter from the Secretary of Defense on the same subject which I should like to insert in the record.

The CHAIRMAN. For it or against?

Colonel GEE. For it, and urging its early completion. In the interest of national defense.

That is all, sir.

The CHAIRMAN. That letter also may be filed. (The two letters referred to are as follows:)

THE SECRETARY OF DEFENSE,
Washington, February 7, 1949.

Memorandum to Lt. Gen. R. A. Wheeler, Chief of Engineers (via, Assistant Secretary of the Army).

Subject: Acceleration of hydroelectric projects in the Pacific Northwest.

1. Surveys of the national electric power supply situation show a critical condition, particularly in the Pacific Northwest, where the present shortage of generating capacity will continue for several years. This is especially serious since it affects a principal aluminum-producing area. Production of the metal should be greatly increased, whereas it is now being curtailed for lack of sufficient power.

2. The Northwest, because of lack of fuel, must depend largely on hydroelectric power, and because of the Government program of multipurpose projects in the Columbia River Basin the responsibility for a very large part of its future power supply lies in the hands of the Government agencies responsible for carrying out that program.

3. A study has been made by engineers of your staff, the Bureau of Reclamation, and the Munitions Board to determine which projects on the present program might be expedited in order to bring relief to the Northwest. The study reveals that little can be done to accelerate the program to provide early relief because of the size of the projects and the time required for their completion. The earliest possible addition to capacity appears to be that which can be accomplished through securing authorization for the Albeni Falls project and pushing the reservoir work to early completion. This would produce an increase of 96.000 kilowatts over the present program in fiscal years 1951-52.

4. By 1953 the effects of an accelerated program would begin to be apparent and in appreciable amounts. The most highly expedited practical program should bring the power requirements and generating capacity into balance by 1956.

5. Projects which should be expedited for the earliest practicable completion are listed below (the list includes some projects not yet authorized and some associated projects of the Bureau of Reclamation):

6. It is requested that the Corps of Engineers present its portion of this expedited program for early authorization of new projects and that you request appropriations which would enable the earliest practicable completion of the electric power features of this portion of the program for the Columbia River Basin.

JAMES FORRESTAL.

[First endorsement]

Office, The Assistant Secretary of the Army-February 14, 1949.

To: The Chief of Engineers.

1. Attention is invited to basic memorandum dated February 7, 1949, to the Chief of Engineers from the Secretary of Defense, which invites attention to a serious situation affecting the national defense, and requesting the acceleration of certain civil works projects.

2. Although this request is being processed outside of regular channels, it is requested that the Chief of Engineers take such action as is deemed to be appropriate in view of the over-all civil works program to attain the objectives outlined in Secretary Forrestal's memorandum.

GORDON GRAY,

The Assistant Secretary of the Army.

Second indorsement]

Office, Corps of Engineers, Washington 25, D. C., February 17, 1949.

To: The Assistant Secretary of the Army.

This office will take necessary action to attain Secretary Forrestal's objectives as outlined in the basic memorandum. The exact course of that action will be developed at an early date.

R. C. CRAWFORD,

Major General,

Acting Chief of Engineers.

NATIONAL MILITARY ESTABLISHMENT,

MUNITIONS BOARD,

WASHINGTON 25, D. C., December 30, 1948.

[Memorandum to the Chief, Corps of Engineers, via Assistant Secretary of the Army] Subject: Electric power projects in the Pacific Northwest.

(1) In a letter to the Chief, Corps of Engineers from the Director of the Munitions Board Staff, dated September 15, 1948, the Munitions Board expressed interest in the development of electric power generating facilities in the Pacific Northwest. No mention was made of the Albeni Falls project. However, in a letter of the same date to the Secretary of Defense, the Munitions Board, in addition to its comments on the Pacific Northwest facilities, recommended that authorization be requested for the Albeni Falls project.

(2) From studies of the electric-power situation in this area and discussions held between representatives of this Board and of your office, it is apparent that the hydroelectric power supply in the Pacific Northwest will be insufficient to meet the requirements of the area during the next several years and that there are relatively few projects which can be completed in time to assist in relieving the shortage in the near future.

(3) The Corps of Engineers has informed the Munitions Board that the proposed Albeni Falls Reservoir would provide, within about 3 years, a substantial amount of storage for improvement of low waterflows at downstream hydroelectric plants at Grand Coulee and Bonneville and would increase the prime power output of the Columbia River system by 77,000 kilowatts. This would be followed by an output of 42,600 kilowatts from the Albeni Falls generators. These would be substantial and much needed additions to the area's capabilities.

(4) The Munitions Board recommends that the Albeni Falls project be given a high priority and that prompt action be taken to secure its authorization and initiation of its construction. The Board considers that this is an important step for the early alleviation of the power shortage now affecting civilian and military production in this strategically important area. For the Munitions Board:

LER. LUTES, Lieutenant General, U. S. A., Director of the Staff.

[Memorandum for the Secretary of Defense]

Subject: Electric power supply in the Northwest.

(1) The present production of aluminum falls far short of meeting require ments. To meet military requirements, the producers have resorted to voluntary rationing. This accentuates the shortage in meeting nonmilitary requirements. None of the metal is going into stock piles. In case of war the present rate of production would have to be doubled.

(2) The present obstacle to increased production is lack of low-cost electric energy, of which slightly less than 10 kilowatt-hours are required to produce a pound of aluminum. Electric energy is one of the large items of expense in aluminum production and the practical price limit for 16 cents-per-pound aluminum is 3 mills per kilowatt-hour. The 16-cent price, which the industry would like to adhere to, has not been changed since the war although competitive materials have increased considerably.

(3) As a matter of practical fact, the only important possibility for increased electric power for aluminum is the hydroelectric projects being constructed in the Pacific Northwest by the Corps of Engineers and the Department of the Interior. Large projects such as these require from 3 to 5 or 6 years for completion.

(4) A recent survey made for the National Security Resources Board by electric utility operating representatives indicates that the load on the principal power resources in the Northwest will grow from 4,127,000 kilowatts in 1948 to 5,850,000 kilowatts in 1951 if the generating capacity can be provided.

(5) The Munitions Board has written to the Corps of Engineers and to the Secretary of Interior urging that they do all possible to speed up completion of some of their projects. These particular jobs are:

Corps of Engineers:

McNary.

Ice Harbor.

Foster Creek.

Department of the Interior:

Grand Coulee.

Shasta.

Keswick.

Lower Monumental.
Detroit.

Anderson Ranch.
Yakima-Ridge.

In addition, authorization should be urged for the Albeni Falls project (Corps of Engineers) which of itself would not only add 42,000 kilowatts to the power supply of the area but the storage capacity of which will add 100,000 kilowatts to the firm power at Grand Coulee.

(6) In the presentation of appropriation requests for power projects to the Congress, direct identification with the defense program is seldom so clear as it is in the case of these Northwest hydro-electric power projects. It is also seldom, in time of peace, that the National Military Establishment would feel warranted in making recommendations of this character. However, in this area the Government is the dominant power producer. No privately owned utility can or will, or perhaps should be expected to provide the very large amounts of power needed. The only practical method of obtaining an increase in the power supply in this area is to speed up the projects named.

(7) We feel that in this instance we are justified in urging large appropriations for these projects and, if the opportunity presents itself, of supporting the appropriation requests of the Corps of Engineers and the Department of the Interior for these projects before congressional appropriation committee.

LER. LUTES,

Lieutenant General, United States Army,
Director of the Staff.
(For the chairman.)

SEPTEMBER 15, 1948.

Lt. Gen. RAYMOND WHEELER,

Chief, Corps of Engineers, Department of the Army, Washington 25, D. C. (Via Assistant Secretary of the Army)

DEAR GENERAL WHEELER: From a national defense standpoint, this Board and the National Military Establishment have an interest in the development of the electric power generation facilities which are being constructed in the Pacific Northwest. These projects are directly identified with the defense program because, as a matter of practical fact, it is to this area and to Government power projects in it that we must look for additional electric energy needed for production of more aluminum.

Currently, aluminum is being manufactured at four times the prewar rate and the best judgment of the industry is that in order to meet present demands this output should be increased by about one-third. Munitions Board estimates indicate that in case of war, the present production would have to be doubled.

The output cannot be increased and, at the same time, a price close to the present market maintained because of the lack of low-cost electric energy. Any price increases in the metal (there has been no change since the war) will be reflected in the cost of defense materiel, particularly in the cost of the 70 group Air Force.

In the Pacific Northwest, where the Federal Government is the dominant electric power producer, no private utility can, or should be expected to, provide any great increase in power facilities. Rapid completion of projects now under way is the only practical means of obtaining an increased supply of aluminum in the next 4 years.

We suggest that your budget plans for fiscal year 1950 take into consideration all feasible means of speeding up completion of these projects: McNary Dam, Ice Harbor, Foster Creek, Lower Monumental, and Detroit.

Sincerely yours,

LER. LUTES. Lieutenant General, United States Army, Director of the Staff.

The CHAIRMAN. I believe those are the only two general projects. Do we have any pending bills for preliminary examination and survey? Colonel GEE. None, sir.

The CHAIRMAN. Do we have pending in that area a bill introduced, H. R. 427, for the establishment of the Columbia Valley Authority and subsequent bills for the establishment of the Columbia River Administration?

Colonel GEE. That is correct, sir.

H. R. 2766

The CHAIRMAN. In that area we have a bill here, H. R. 2766, authorizing flood control on the Yakima.

Colonel GEE. Mr. Chairman, this project is covered in the comprehensive plan of the Columbia Basin on which a general statement will be given by Colonel Weaver later. I believe the report or comment on this bill should be deferred until after the statement is heard.

H. R. 3774

The CHAIRMAN. A bill, H. R. 3774, by Representative Angell, with respect to the construction of some works along the Willamette. What do you have to say with respect to that?

Colonel GEE. The same comment applies. This project is also included in the comprehensive report on the Columbia Basin and he will be prepared

The CHAIRMAN. Is it presently approved?

Colonel GEE. No, sir; it is included within the one report.
The CHAIRMAN. That will be covered generally later?
Colonel GEE. Yes, sir.

H. R. 3636

The CHAIRMAN. The next is a bill, H. R. 3636, by Representative Horan to establish a Columbia River Interstate Commission and for other purposes, and there has been no report on that bill, as I understand; and do you have any comment to make?

Colonel GEE. No comment at this time, sir.