over the Klamath Indian Tribe by providing in the alternative for private or Federal acquisition of the part of the tribal forest that must be sold, and for other purposes," which has been submitted to the President of the Senate by a separate communication.

As we indicated in our letter to Senator Neuberger, dated September 26, 1957, we believe that only through sustained-yield management of the Klamath Indian forest can its timber, water, wildlife, and recreational resources be maintained, and that further legislation for that purpose is desirable. An equally important premise, however, is that any provision for sustained-yield management should not infringe on the property rights of the Indians or discriminate against them. Our views are set forth at some length in the letter to the President of the Senate and need not be repeated here. The following general comments, however, are offered with respect to S. 2047:

1. The bill provides for Federal acquisition of the entire Klamath Indian forest. We believe that the Indians who elect to remain in the tribe should not be compelled to sell their share of the forest if they do not wish to do so. A sustained-yield plan for managing the part of the forest that is kept by the tribe will be prepared in accordance with the Termination Act. Although that plan will be subject to change by the tribe, the Indians who elect to remain in the tribe will have expressed an intention to maintain intact their part of the forest, and there should be no appreciable risk of quick liquidation.

2. The bill provides for Federal acquisition of the forest without giving private industry any opportunity to acquire the land subject to an enforcible contractual agreement to follow sustained-yield management practices. We believe that such an opportunity should be provided. Admittedly, there are difficulties. Two important ones are the fact that private industry may not be willing to pay the full market value of the forest, and Federal enforcement of a sustained-yield obligation voluntarily assumed by contract will present administrative problems. The second difficulty can be overcome, and the only way to determine whether private purchasers will pay the full market value of the land when subjected to sustained-yield requirements is to offer the property for competitive purchase. If private industry is not willing to purchase under those circumstances, this Department recommends Federal purchase of these lands.

3. The bill provides for a new appraisal of the tribal lands. The appraisal required by the Termination Act has just been completed at considerable expense, and we believe that a new appraisal would not be justified. Congress should be able to determine now whether the present appraised value will be acceptable as the basis for Federal acquisition.

4. The bill provides for Federal purchase and resale of nonforested tribal lands. There is no need for the Federal Government to incur the expense of acquiring such property.

5. The bill recites that the tribal marsh comprises approximately 70,000 acres. The figure should be approximately 15,689 acres.

6. The bill does not make the per capita payment of the purchase price for the forest and marsh subject to the provisions of section 15 regarding the protection of individuals who need assistance in the management of their affairs.

The Bureau of the Budget has advised us that there is no objection to the submission of this report.

Sincerely yours,

Hon. JAMES E. MURRAY,

FRED A. SEATON, Secretary of the Interior.

DEPARTMENT OF AGRICULTURE, Washington, D. C., January 14, 1958.

Chairman, Committee on Interior and Insular Affairs,

United States Senate, Washington, D. C.

DEAR SENATOR MURRAY: You have asked this Department for a report on S. 2047, a bill to provide for the acquisition by the United States of all tribal lands of the Klamath Tribe of Indians.

We are sympathetic with the bill's objectives of obtaining a fair return to the Indians and assuring sustained yield of timber but we recommend that there be enacted as a substitute for S. 2047 a bill being transmitted to the President

of the Senate by the Secretary of the Interior. This Department has collaborated in preparation of that bill.

S. 2047 would amend the Klamath Supervision Termination Act of August 13, 1954 (68 Stat. 718). A three-man appraisal board would be established to determine fair market value of Klamath tribal lands in Oregon and the Board would report its results to the Committee on Interior and Insular Affairs during the 85th Congress. The Secretary of the Interior would be required to purchase for the United States the tribal lands at the fair market value fixed by the Appraisal Board and pay each Indian his pro rata share of the purchase price. Also, S. 2047 would require that acquired tribal lands which consist of timberlands under sustained-yield management be transferred to the Forest Service, Department of Agriculture, for administration as national-forest lands. About 70,000 acres of the acquired tribal lands comprising Klamath marsh would be administered by the Fish and Wildife Sevice, Department of the Interior. The remaining acquired tribal lands would be sold competitively, giving tribal members priority right to purchase any such lands for not less than the highest competitive bid.

The Klamath tribal forest lands are of such character that it would be appropriate for them to be added to and administered as a part of the national-forest system. As national-forest lands they would be managed under established multiple-use policies for lasting public benefit.

In the disposition of the tribal forest property to implement termination of Federal supervision over the Klamath Indian Tribe it is essential that (1) adequate compensation be obtained for the Indians, and (2) sustained-yield management of the tribal forest lands be assured. We recognize that these two basic objectives could be attained by the Federal acquisition of the entire tribal forest for national-forest purposes as proposed by S. 2047. But the beneficial ownership of the tribal forest has been in the Indians and those who might elect to remain in the tribe should be permitted to retain their share of the tribal forest lands and manage them under the terms of the Termination Act.

Sustained yield on the remainder of the tribal forest that must be disposed of in order to compensate the Indians who do not choose to stay on the tribal rolls would be assured by adding it to the national-forest system. Also its Federal purchase for that purpose could provide adequate compensation to the Indians. However, if purchasers would be willing to pay for those tribal forest lands at a price that would adequately compensate the Indians, and if at the same time purchasers would agree to manage them under satisfactory and enforcible requirements for sustained yield, it would be appropriate to provide for such sales. If purchasers will not buy under these conditions, this forest land should be acquired for national-forest purposes. Another point is that appraisals of the tribal property already have been under the provisions of the Termination Act. There is no need to provide for another appraisal at additional cost.

In its submission of the substitute bill, the Department of the Interior points out the Federal acquisition cost will be dependent upon the number of members who elect to withdraw from the tribe and the amount of forest lands sold under the terms of the bill. Assuming that purchasers are found, administrative costs to this Department will be involved in reviewing timber-management plans submitted by bidders and supervising sustained-yield operations of purchasers. There is no way of estimating these costs at this time.

The Bureau of the Budget has advised that it has no objection to the submission of this report.

Sincerely yours,

E. T. BENSON, Secretary.

EXECUTIVE OFFICE OF THE PRESIDENT,

Hon. JAMES E. MURRAY,

BUREAU OF THE BUDGET, Washington, D. C., January 10, 1958.

Chairman, Committee on Interior and Insular Affairs,

United States Senate, Washington, D. C.

MY DEAR MR. CHAIRMAN: This is in response to your request for this Bureau's views on S. 2047, to provide for the acquisition by the United States of all tribal lands of the Klamath Tribe of Indians.

The Department of the Interior in a report being submitted to your committee recommends that S. 2047 not be enacted in its present form but that it be enacted if it is amended to conform substantially to the draft of a substitute bill presented by that Department.

The Bureau of the Budget concurs in the recommendation of the Department of the Interior on S. 2047.

Sincerely yours,

ROBERT E. MERRIAM, Assistant Director. Senator NEUBERGER. On January 13, the Secretary of the Interior submitted to the Congress an executive communication containing a draft of a proposed bill to amend the act terminating Federal supervision over the Klamath Indian Tribe by providing in the alternative for private or Federal acquisition of the part of the tribal forest that must be sold, and for other purposes.

Because of the continuing need for a solution to the existing situation and the rapid approach of the summer when timber sales must begin, I sponsored the department's bill, by request. I am not endorsing the administration's bill, which has been designated as S. 3051.

However, in fairness to the Secretary, the Indians, and others, the bill should be before us for consideration. I am openminded as to its ultimate operation.

Without objection, I will insert in the record at this point the executive communication from the Secretary of the Interior to the President of the Senate, dated January 13, 1957, together with the Department's bill which I sponsored at their request.

(The communication and proposed bill follow :)

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington, D. C., January 13, 1958.

Hon. RICHARD M. NIXON,

President of the Senate,

Washington, D. C.

DEAR MR. PRESIDENT: Enclosed herewith is a draft of a proposed bill to amend the act terminating Federal supervision over the Klamath Indian Tribe by providing in the alternative for private or Federal acquisition of the part of the tribal forest that must be sold, and for other purposes.

We recommend that the proposed bill be referred to the appropriate committee for consideration; and we recomend that the bill be enacted.

The purpose of the bill is to assure the continued sustained-yield management of the part of the Klamath Indian forest that must be sold in order to pay the members who withdraw from the tribe, and at the same time make certain that the Indians receive the fair market value of the part of the forest that is sold. Congress has determined by the Termination Act of August 13, 1954 (68 Stat. 718), that a continuation of the Federal trust over the property of the Klamath Indians would not be in the best interest of the Indians. The essence of the Termination Act is that the Klamath Indians shall be freed of all Federal restraints applicable to them because of their Indian origin, and that they shall be placed in the same status as all other citizens, subject to no special restrictions or rights. As would be the case in any group, however, certain individuals may not be qualified to handle a large capital asset with reasonable prudence, and the 1954 statute requires the Secretary of the Interior to safeguard the interests of these individuals, before terminating the Federal trust, by arranging for the appointment of guardians through the State courts or by such other means as he deems adequate, which could include the establishment of individual private trusts for them.

Another basic feature of the Termination Act is the provision that each member of the tribe shall be given an opportunity to withdraw from the tribe and have his interest in the tribal property converted into money and paid to him. Those members who remain in the tribe will participate in a tribal management plan for the residual tribal assets.

The need for further legislation arises from the fact that a large percentage of the members of the tribe is expected to withdraw from the tribe, which will require a large part of the forest to be sold in order to pay the withdrawing members their proportionate share of the tribal assets. If such sales are made under

the present law a large part of the forest will not be continued under sustainedyield management.

The conservation of this timber resource is of primary importance to the economy of the area and to the welfare of the public generally. In recognition of this fact, Congress has deferred any sales of tribal forest lands until after the end of the 2d session of the 85th Congress in order that further legislation may be considered.

The manner in which the Klamath Indian forest is managed in the future will have a vital impact on the life and economy of the entire Klamath River Basin. If it is kept intact and managed according to sustained-yield principles, the forest will remain a perpetually productive source of pondosa pine and other commercial species. Such management will also assure continuation of its important function as a watershed. The large numbers of migratory waterfowl for which it now provides nesting and feeding grounds will be protected, as will the deer and other species of wild animals that now find sanctuary within its boundaries. Further development of the forest's recreational potential will also be made possible.

If sustained-yield management is abandoned and the forest is broken up and disposed of in small individual tracts, all these values soon may be lost.

The likelihood of the forest's being dissipated in this fashion is a matter for genuine concern.

The tremendously disruptive influence that rapid cutting of the Klamath forest would have on the economy of the area is not difficult to contemplate when it is realized that 40 percent of the area's economy is based on timber production, and that the Indian timber includes about 26 percent of the total commercial-forest area and 26 percent of the sawtimber volume in Klamath County.

Other values of the forest, while less tangible than timber, are of significant importance and must be considered in the public interest.

In the fall, waterfowl by the millions, following the Pacific flyway, pour into the Upper Klamath Basin to rest and feed before continuing southward to their wintering grounds. The marsh on the Klamath Reservation is the most important marsh to waterfowl that is left unprotected in the Nation. This nesting area has been one of the mainstays in keeping up the supply of redheads, canvasbacks, and ruddy ducks in the Pacific flyway. Deer and other wild creatures also find year-round habitat in the forest.

The influence which the Klamath Reservation forest has in reducing flood crests and stabilizing the flow of streams throughout the year is a contributing reason for preventing the timber from being cut to the minimum specifications of the State law. Approximately 303,000 acres of irrigated farmlands are dependent on streams that head on the forest slopes of the Klamath Basin.

The maximum development of water power on the Klamath River cannot be realized without the protection of its headwaters. A large part of the extensive water resource of the Klamath Basin originates in the many large springs found on reservation lands. Rapid cutting of the Klamath Reservation forest well might jeopardize the farm production and the water power developments dependent on the watershed protection provided by this forest.

Furthermore, denuding this area of its forest cover would destroy its scenic and recreational appeal, and the slash left from hurry-up logging operations would tend to increase the fire hazard.

When it is considered that this 745,280-acre tribally owned forest area, described as one of the finest of its type, now is contributing so vitally to the general welfare of the Klamath River Basin and to the Nation it must be concluded that any action that would in the long run diminish or eliminate those benefits should be avoided.

This Department believes that only through sustained-yield management of the forest can its timber, water, wildlife, and recreational resources be maintained. It is generally conceded that much of the area will not be continued under sustained-yield management if it is sold under the present law.

Federal acquisition of the part of the forest that must be sold, and payment to the Indians of the full amount they could expect to receive if the forest lands were sold under the present Termination Act, would accomplish the conservation objective without infringing the rights of the Indians. Before authorizing Federal acquisition, however, we believe that private industry should be given an opportunity to acquire the land, at the same price, subject to an enforceable contractual agreement to follow sustained-yield management practices.

There are two major difficulties to this approach. One is that Federal en forcement of a sustained-yield agreement will present administrative problems.

These will be minimized if the lands that are to be sold are offered for sale in a comparatively small number of units, for example, 10 to 15, containing relatively large acreages. The other is the possibility that private industry may not be willing to pay the full market value of the land if it is subjected to a sustained-yield requirement. This fact can be ascertained only by making the offer. If private industry is not willing to purchase under these circumstances, then this Department recommends Federal purchase of the lands.

If the forest lands cannot be sold to private industry under the plan proposed, Federal acquisition would be in accord with the conservation program vigorously pursued by President Theodore Roosevelt a half century ago. In his annual message to Congress dated December 3, 1901, as quoted in 103d Congressional Record, page 1257, he said:

"The forest reserves will inevitably be of still greater use in the future than in the past. Additions should be made to them whenever practicable, and their usefulness should be increased by a thoroughly businesslike management." In a letter dated August 24, 1906, as quoted in 103d Congressional Record, page 1258, to Gifford Pinchot, President Roosevelt said:

"The forest policy of the administration *** is based *** on the vigorous purpose to make every resource of the forest reserves contribute in the highest degree to the permanent prosperity of the people who depend upon them. If ever the time should come when the western forests are destroyed, there will disappear with them the prosperity of the stockman, the miner, the lumberman and the railroads, and most important of all, the small ranchman who cultivates his own land. I know that you are with me in the intention to preserve the timber, the water, and the grass by using them fully, but wisely and conservatively. We propose to do this through the freest [sic] and most cordial cooperation between the Government and every man who is in sympathy with the policy, ***"

The bill which we recommend can be summarized as follows:

1. The Secretary of the Interior and the Secretary of Agriculture will jointly define the boundaries of the tribal forest and the tribal marsh. 2. The Indians who elect to stay in the tribe will keep the part of the forest that is allocated to them, and that part will be subject to management in accordance with a plan that is satisfactory both to the Indians and to the Secretary. This is provided for by the present law. The proposed management plan provides for sustained yield management.

3. The rest of the forest that must be sold on behalf of the withdrawing members will be offered in appropriate units for private purchase

(a) at not less than the appraised realization value,

(b) subject to sustained-yield requirements that are enforceable by a forfeiture and reversion of title in the event of a violation of the requirements. Enforcement could also be obtained by injunction in appropriate cases.

Realization value is the amount for which the lands could be sold on the open market prior to the termination date, without limitation on use, if as much as 70 percent of the forest were offered for sale. If 70 percent of the Indians elect to withdraw, that is the maximum amount they could expect to receive under the present law. The Indians cannot be required to take less.

4. The Secretary of Agriculture will purchase at the realization value any of the forest units not purchased by private industry that are suitable for national forest administration. Any units that are not purchased by private industry or by the Secretary of Agriculture will be sold by the Secretary of the Interior under the Termination Act. Any purchase by the Secretary of Agriculture will occur on or about January 1, 1960, which should permit the termination program to be completed by August 13, 1960, as required by present law.

5. If any of the forest lands retained by the tribe are later offered for sale, the Secretary of Agriculture must be given the right of first refusal, and he is authorized to buy them for addition to the national forest system. 6. The Secretary of the Interior will buy the marsh at its realization value, effective January 1, 1960, and it will become a national wildlife refuge.

7. Any Klamath Indian who is occupying a homesite on forest land acquired by the Secretary of Agriculture will be entitled to continue to occupy a reasonable acreage of the homesite under regulations of the Secretary of Agriculture.