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has Vegas H May 10, 1951 Itr* *te* BM.nhardt* Attached are: newspaper clippings concerning meeting of the Colorado Hives* OosnLssloet and- has Vegas Valley Water District held yesterday at which Stoats UsOarran -read letter from Mr* JttMMk Larson approving sale of the water line and ' facilities from ha&e Mead to Henderson to the Laa Vegas Valley Water District for the atm of i>L*Q0* IMs was merely a con­firmation of recent newspaper report to the same effect* . Senator McCarran stated that neither the Governiaent nor the Colorado Hirer Commission would lose anything by the sale hut there was no further explanation of the statement* 1 understand the water facilities were Included In the sale by Ctoeral Services Administration of. the entire properties to the State at some $1,250,000, which it is mm proposed he conveyed to the Water District for #1*00* I an reliably advised that at a meeting of the Colorado Hiver Commission following Senator MoC&rran4a statement, the' Commission could not obtain any assurance that the §2^,000,000 the State is obligated, to pay General Service® Administration for the entire property, would be reduced by the value of the water facilities that arc to be conveyed to the Water District, so that apparently General Services expects the State as a whole to assume this cost, and if such is the case, the Oolorado Hiver Commission will net approve the sale agreement, but will agree to sell, surplus i# to approximately 1/3 of the plant capacity, or approximately 12,000,000 GPD to the Water District* There are several Infernal meetings being arranged between John Muslim, General Services Repres ©ntative * the Oolorado 'HIver Comission and the Water District to endeavor to clear up this and several other features of the proposed plan for Mie conveyance which I under©tend was prepared by John Mueller* without previous consultation with the Colorado River Commission* X will keep you advised of developments. W* H* Johnson