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Show -102- jursidiction. Recognition would be by way of money compensation or some other equivalent adjustment* The effect of these requirements is to leave unimpaired the underlying Federal jurisdiction, but also to meet the problems that concern ths States both as to the status of certain established rights as against the exercise of Federal jurisdiction and as to the undertaking of projects under that jurisdiction, that might- prevent the full consumptive use of the waters in the basin. From the viewpoint of this department and for the Federal Government as a whole, I see no objection to .these requirements as applied to the Republican River Basin. On the contrary, they should be conducive to the highest and most useful employment of the waters in that basin. In my letter of February 2J+ attention was directed to the provisions of article I of the compact stating that the compact should not be taken as establishing any general principle as to other interstate streams. My principal concern were the formula in its present form to be applied to interstate streams with sizable hydroelectric-power developments or pro- spects, would be that the last clause of section 2 (a) (2) of the bill might be construed as governing every exercise of the Federal regulatory power over power uses. I think, however, that the clause was not intended to and would not support so sweeping a construction. I understand it to be applicable in cases where the exercise of Federal jurisdiction would inter- fere with or prevent "full beneficial consumptive usen of waters vdthin the basin, such as by requiring or providing for the use of water outside the basin. I do not understand the clause to mean that existing regulatory jurisdiction could be exercised in any case, as to a use for hydroelectric . production within the basin only after the consultation and determination provided for in section 2 (a) (2), for the exercise of such regulatory jurisdiction of itself would not "interfere with the full beneficial con- sumptive use of the waters within the basin." ; . I"t happens that in the case of the Republican.River Basin prospects for the development of power are of no great moment, so that the remote possibility of a construction of section 2 (a) (2) along the lines suggested is not important. I call attention to the point, however, so that the possible ambiguity can be removed by some rephrasing of the provision should the Congress wish to apply a similar formula to an interstate stream where the production of hydroelectric power would be of considerable importance. I would suppose, of course, that the application of such a formula to other streams would depend on the particular circumstances of the case, and that those circumstances would determine the manner of its statement. One.other point concerning the proposed compact should be noted. It may be. recalled that this department considered it necessary to raise several objections to the draft of compact negotiated by the States in I9I4I. None of* these objections are now present, since they are adequately met by the saving provisions of article X relating to various Federal interests. The Director of the Bureau of the Budget advises that this report would -not be- in conflict with the program of the President, Sincerely yours, TT . , _ _ . Harold L. Ickes, Secretary of the Interior© |