Senator COOPER. I would like to say here that the answers that you have given, that this land acquisition is directed toward consolidation of a tract or unit for management, I think settles my question.

STATEMENT BY BRIG. GEN. HARRY G. WOODBURY, JR., DEPUTY DIRECTOR OF CIVIL WORKS FOR COMPREHENSIVE PLANNING, OFFICE, CHIEF OF ENGINEERS, ACCOMPANIED BY COL. JOHN C. H. LEE, JR., AND IRWIN REISLER, ASSISTANT CHIEF OF THE PLANNING DIVISION, CIVIL WORKS DIRECTORATE

General WOODBURY. Mr. Chairman and members of the committee, I am Brig. Gen. Harry G. Woodbury, Jr., Deputy Director of Civil Works for Comprehensive Planning. I appreciate the opportunity to appear before you today in behalf of the Chief of Engineers and the Department of the Army.

The Department of the Army participated in the development of the broad program for the Appalachian region which you have before you in the form of S. 3. We are impressed by the magnitude and difficulty of the problems for which solutions must be found if the human and natural resources of this large, but underdeveloped, region are to be more effectively utilized to increase the Nation's strength and wealth, and to better the lot of the region's people. We are convinced, moreover, that a comprehensive and unified program will be required if those ends are to be met. Hence we support enactment of S. 3.

The going civil works program of the Corps of Engineers makes a vital contribution toward the economic development of underdeveloped regions such as Appalachia. It does this by providing protection from floods, by making available dependable water supplies for industrial and municipal use, by greatly expanding the opportunities for healthful outdoor recreation through the creation of lakes and surrounding public use areas, by the generation of electrical energy of special value for peaking purposes, by the abatement of pollution through increasing the low waterflows of the main streams of the region, by enhancing fish and wildlife resources, and by reducing the cost of transportation through the provision of navigable waterways where this is found to be economically feasible. In short, the civil works program can advance the economic development of Appalachia by making possible the utilization of one of its greatest natural resources the waters with which it has been so richly endowed by

nature.

The currently authorized program of the Corps of Engineers in the Appalachian region is progressing at a substantial rate with an appropriation level of about $170 million in fiscal year 1965. It is expected that a high level of activity in this region can be sustained for a number of years to come based on the present backlog of authorized projects, and those which have been or will soon be recommended to the Congress for authorization on the basis of the current study program. The question is not whether we should continue what we are doing these projects are already well justified under current criteria and their value will be further enhanced by the proposed development of the Appalachian region—but rather what more should be done to correct the remaining problems of inadequate control of water, and thereby help raise further the level of economic activity in the Ap

palachian region. It is in this regard that we address ourselves to the proposed water resources survey contemplated under section 206 of the bill currently under consideration.

Section 206 of the bill would authorize the Secretary of the Army to prepare a comprehensive plan for the development and efficient utilization of the water and related land resources of the Appalachian region, giving special attention to the need for an increase in the production of economic goods and services in the Appalachian region as a means of expanding economic opportunities and thus enhancing the welfare of the people. The language in this section broadens the dimensions in water resources planning by requiring that a water resources system be designed with the objective of stimulating economic growth as a part of an overall program for regional development as opposed to the more conventional practice of planning water developments to accommodate to normal growth patterns. The Department of the Army accepts this challenging responsibility. We anticipate that the other Federal and State agencies will cooperate by providing certain segments of the overall water plan, and that the Appalachian Regional Commission, authorized by title I of this act, will provide overall coordination to insure that the water plan will constitute an integral and coordinated component of its still more comprehensive regional program. Section 206 provides for this necessary participation.

The time available for completion of the proposed study is very short. Allowing for the contemplated review processes, we estimate that about 3 years will be available for field studies and report preparation. This will require that an intensive study effort be initiated as soon as funds can be obtained after passage of the legislation. Our advance preparations have been geared to that objective.

1. We have developed a tentative plan of survey which defines, in general terms, the scope and overall requirements of the study, including the procedures for and the general extent of participation anticipated for cooperating agencies. To further define those requirements we have initiated informal discussions with those agencies.

2. We have developed preliminary plans for organization and staffing of this study. We contemplate establishing, under the direction of our Ohio River division engineer, a small special Appalachian study office which will be charged with responsibility for management of the study and for report preparation. Under the direction of that office, existing Corps of Engineers field offices of the region, consisting of 11 districts in 3 divisions, in coordination with other agency counterparts, will perform the necessary field investigations within their present areas of responsibility and provide the data necessary for development of the overall plan. We expect that our present study program will make substantial inputs into the regional planning effort.

3. A small temporary office has been established within the Office of the Chief of Engineers to carry out the advanced planning effort. Col. John C. H. Lee, Jr., is currently in charge of that activity and has been tentatively selected by the Chief of Engineers to head the field study office when it is established. He is here with me this. morning, sir.

4. Aside from these advance preparations for the water resources survey, the Department of the Army and the Corps of Engineers are participating in the deliberations of the Federal Development Planing Committee for Appalachia, headed by Mr. Sweeney, which was established by the President to continue Federal planning activities in the Appalachian region.

Mr. Alfred Fitt, Special Assistant to the Secretary of the Army for Civil Functions, and his alternate, Mr. Irwin Reisler, Assistant Chief of the Planning Division, Civil Works Directorate, Office, Chief of Engineers, are working closely with the Chairman, Mr. John Sweeney, and the Committee to insure that the water resources activities are properly integrated and coordinated with the overall effort contemplated for the region. Mr. Reisler is also here this morning.

Senator RANDOLPH. I will place a copy of my letter to Secretary Ailes, dated January 15, 1965. The letter contains my proposed amendment to S. 3, to provide assistance to local communities in their share of the costs for local flood protection projects.

(The letter and proposed amendment are as follows:)

Hon. STEPHEN AILES,
Secretary of the Army,
Department of the Army,
Washington, D.C.

U.S. SENATE,

Washington, D.C., January 15, 1965.

DEAR MR. SECRETARY: As you know, President Johnson has assigned the highest priority to the enactment of the Appalachian Regional Development Act of 1965. Accordingly, the Senate Committee on Public Works has scheduled hearings on S. 3 for January 19 and 21. It is hoped that by conducting hearings on these dates we will have an opportunity to receive testimony from all the Governors of the Appalachian States who may wish to testify.

We would like a representative of the Corps of Engineers to testify on section 206 of S. 3 and on the amendment for assistance to local resources, which I propose to offer in committee. You will find enclosed a copy of my proposed amendment, for your information.

Mr. John L. Sweeney, Chairman of the Federal Development Planning Committee for Appalachia, is presenting the administration position on the legislation on Tuesday, January 19, at 10 a.m. We should like to hear the testimony of the representative of the Corps of Engineers following Mr. Sweeney, at approximately 10:30 a.m. The hearing is being held in room 4200, New Senate Office Building.

We should appreciate if you will have your staff communicate with Richard B. Royce of the Senate Committee on Public Works staff regarding the name of the person who will testify. In accordance with committee policy, we should like to have 75 copies of the statement and trust that despite the short time elapsing we may have these not later than 5 p.m. on Monday, January 18. Since the Senate bill, S. 3, has not yet been printed, I enclose a copy of the identical House bill, H.R. 4.

Truly,

WATER RESOURCE PROJECTS

JENNINGS RANDOLPH.

SEC. 215. (a) In any project recommended by the Secretary of the Army for construction as a part of the comprehensive plan provided for in Section 206, or projects authorized in the Appalachian region in accordance with Section 107 of the River and Harbor Act of 1960 (ss U.S.C. 577) or Section 205 of the Flood Control Act of 1948, as amended (ss U.S.C. 701s), where local interests are required under the provisions of Section 3 of the Act approved June 22, 1936 (49 Stat. 1571), as amended, to furnish lands, easements and rights-of-way necessary for the project, or are required under the existing provisions of law or administrative regulations, to furnish monetary contributions towards the

cost of construction of the project, the Secretary of Commerce is authorized, on application of the responsible local interests, and on recommendation of the Chief of Engineers, and with the concurrence of the Appalachian Regional Commission, to advance funds to the Secretary of the Army to

(1) acquire in the name of the United States title to all lands, easements, and rights-of-way necessary for the project by donation, or with funds heretofore or hereafter appropriated or made available for the project: Provided, That such title shall be transferred by the Secretary to the appropriate local interests upon completion of construction of the project;

(2) defer the payment of the required monetary contributions, and pay the entire first cost of the project out of funds heretofore or hereafter appropriated or made available for the project;

Provided, That the State, political subdivision thereof, or other responsible local agency agrees to repay the cost of such lands, easements, and rights-of-way, together with government administrative acquisition costs, and the amount of required monetary contribution, including interest which shall commence with the initiation of construction, within the life of the project but in no event to exceed fifty years after completion of construction, except that no payment need be made until one year after completion of construction. The interest rate used for the purposes of computing interest shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction is initiated, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations, which are neither due nor callable for redemption for fifteen years from date of issue: Provided further, That neither the amount of the deferred required monetary contribution nor the costs incurred by the Government in obtaining lands, easements and rights-of-way pursuant to authority stated herein, shall be considered in determining the limitation of Federal participation in projects authorized under Section 107 of the River and Harbor Act of 1960 and Section 205 of the Flood Control Act of 1948, as amended.

(b) The provisions of subsection (a) of this Section shall apply to projects heretofore authorized in the Appalachian Region when will be a component of the comprehensive plan provided for under Section 206 of this Act, and where construction has not been initiated: Provided, That the Secretary of the Army, upon application of the responsible local interests, and, on recommendation of the Chief of Engineers, and the concurrence of the Commission, shall notify the Public Works Committees of the House of Representatives and the Senate by separate letter reports that subsection (a) will be applied; Provided further, That no agreement with the local interests shall be entered into for a period of thirty days after such notification has been given.

(c) Not to exceed $10,000,000 of the funds authorized in Section 401 of this Act shall be available to carry out this section.

General WOODBURY. Thank you, Senator. I will continue with my

statement.

PROPOSED AMENDMENT

The committee has asked us to present our views with respect to a proposed amendment to S. 3 which would authorize the Secretary of the Army, from funds to be made available under this act, to assist local interests in financing their participation in Federal water resources projects. These funds could be utilized to permit construction of projects which are desirable components of the Appalachian development program by covering the local share of the costs required under the legislation authorizing such projects, subject to the requirement that local interests agree to repay such costs, with interest, over an extended period of time. The Department of the Army considers the objective of this amendment to be a desirable addition to the legislation under consideration. As recognized in the legislation, many communities in Appalachia do not now have the necessary tax base to support needed expansion of economic activity. This in turn prevents them from financing public improvements which are essential to create

the economic environment that is necessary to promote private investment in the area. There have been a number of instances where local flood protection projects, which have been authorized by Congress or which would have been eligible for accomplishment under general authority available to the Chief of Engineers, have not been constructed because the communities could not furnish the lands and rights-of-way that are requirements for such projects. The recurrent flood problems existing in those areas cause economic losses they can ill afford to suffer and deters economic expansion. With provision for deferred payment, as the amendment proposes, these improvements could proceed in keeping with objectives for economic development of the region.

Some portions of the draft language of section 215 need further clarification. For example, subsection (a) (1) which provides for use of funds heretofore or hereafter appropriated or made available to the project is inconsistent with the funding procedure contemplated in subsection (c). Other revisions may also be desirable after further review. If desired by the committee, we will undertake such review and submit revised draft language which will be coordinated within the executive branch of the Government.

I thank you for the opportunity afforded me to present the views of the Chief of Engineers and the Department of the Army on this important legislative proposal.

I am prepared to try to answer any questions that you might have. Senator RANDOLPH. The committee appreciates your testimony, General, and we would be grateful for further clarification of the proposed amendment. We would appreciate whatever assistance your staff could give the committee in perfecting section 215, and we would hope that a final draft might be furnished the committee by January 25, if possible.

Senator RANDOLPH. General Woodbury, as an aside here, while you were speaking, Senator Cooper correctly stated that the purpose of this legislation encompasses a broad and necessary program. That is the essence of what he said. You have testified on one of the very important efforts that will be made. It is a broad water resource program in depth and scope to not only control floods but to develop the rivers to benefit people, to benefit industry, and to add to the economic strength of the areas which have been adversely affected in the past by inadequate resource development among other factors.

You people were doing what you could when you could. I recall recently an editorial in the Charleston, W. Va., Gazette. I hope to refresh my memory on its content and perhaps place it in the record. It brought out the need in the Kanawha River region of the sort of program that is envisaged here. Someone expressed disheartening response to the delays which have been perhaps necessary.

To refer to another-and somewhat sensitive aspect of this subject-some of the Tennessee Valley Authority people have expressed concern about the study that is authorized in this section 206. There would appear to be some anxiety that the Corps of Engineers might encroach on areas of TVA responsibility in this study though, of course, there is inevitably a certain degree of overlapping authority in such a project.

How do you plan for the participation and cooperation of the TVA in this study?