upr000288 22

10 dition is necessary, I think it is important that the people of this community not be further led into believing that they can participate in the water facilities here at Basic under conditions other than those which I have outlined. Since it does not seem practical for a local public body to assume the responsibility of furnishing water to this plant it must obviously continue to be the responsibility of the Colorado River Com­mission. If it becomes necessary for the Government to exercise the provision in the Agreement with your State to recapture this plant in order to insure its operation in the interests of national security, then the Federal Government ?would operate the water facilities. However, I do not want you to believe me unreasonable or un­sympathetic to the requirements of your community. I honestly hope that some arrangements can be worked out and if my representative and representatives of the Colorado River Commission together with lessees at the Basic Magnesium Plant can agree upon a fixed amount of water that will definitely serve the needs of this plant and assure its operation in the interests of national security, I would approve an arrangement for making the remainder of the water available to the Irrigation District. But I must repeat that the Basic Magnesium Plant must have a prior call upon an adequate supply from the facility. I am one of.those individuals who believe in free enterprise and I think that a public body is not an appropriate organization for operating an industrial facility. This plant was sold to the State of Nevada for $1 in order that industrial utilization of Nevada’s power interests in the Hoover Dam could be brought about for the benefit of this State and of this area. The agreement under which title was