Statement by the President Concerning Plans for Development of California's Water Resources.

THE WAR DEPARTMENT Civil Functions Appropriation Bill, 1947 (H.R. 5400), which I approved on May 2, 1946, makes appropriations for a number of thoroughly worth-while projects that will further the development of the water resources of the Nation. I am also glad to note that the Congress, by the addition of certain provisos to the item for the Kings River Project, California, has afforded an opportunity for assuring that the Federal reclamation policy, including repayment and the wide distribution of benefits, will apply to that project. This is in accordance with the view that I have heretofore expressed and the position repeatedly taken by the late President Roosevelt. It is consistent with the policies laid down by the Congress in the Flood Control Act of 1944.

Consistently with the action taken by the Congress on the Kings River Project, I propose in the near future to send to the Congress my recommendations regarding an over-all plan for the development of the water resources of the Central Valley area in California. I am withholding action in that regard pending receipt of comments from the Governor of California. The overall plan for the Central Valley area of California will include means for achieving comprehensive development and utilization of its water resources for all beneficial purposes, including irrigation and power, and it will provide adequately for flood protection. It will have regard for the need for integrated operation of reservoirs which is essential for complete utilization of the land and water resources of the area. It will provide for application in the Central Valley area of the Federal reclamation policy-including repayment of costs and the wide distribution of benefits. I hope that the Congress will, by the adoption of that plan, act to put an end to a situation which, in California and in Washington, has been productive of administrative confusion as well as confusion to the general public.

In the meantime, in view of the legislative history of the provisos in the Kings River item, and in view of the disadvantageous position in which the Government would be placed if repayment arrangements were unduly postponed, I am asking the Director of the Budget to impound the funds appropriated for construction of the project, pending determination of the allocation of costs and the making of the necessary repayment arrangements.