And in Los Angeles and southern California, we have had a real problem of smog, and it has extended throughout the entire State, in most of the metropolitan areas, and surprisingly enough in some of the rural areas.

Senator GRUENING. You have it in San Francisco, too, do you not? Governor BROWN. Yes, we do; but not as much, because we have those prevailing westerlies. But we have a real smog problem in San Francisco, too.

And the University of California at Riverside has make a study of the effect of smog upon vegetables and fruits, and there is a tremendous loss occasioned by reason of air pollution all over the State of California. The agricultural people do not think they are bothered by it, but as a matter of fact they can scientifically prove that that is happening, too. And it is a very expensive thing to get rid of, because you have to attach to an automobile an expensive device. But that is another story.

Already the country's expanding population is spreading over the wide reach of the West. The census of our 11 Western States is growing at almost twice the rate of that of the rest of the country. And this is just the beginning.

Failure by the Federal Government to recognize and prepare more fully for this irrepressible westward movement could have disastrous economic and social effects on every section of the Nation. Preparing the West for the vast new populace certain to rise there is essential for a Nation whose population is expected to soar to 370 million within just 50 years. There can be no relief from that situation if the basic development of the West is allowed to stagnate for lack of resource programs. In the East, the South, and Midwest it would mean increasingly overcrowded urban areas and an ulitmate ceiling on national development.

Fortunately, this need not happen. Federal investment in the water resources of the 11 Western States will pay huge dividends in terms of ample living space, agricultural land, and industrial expansion capable of sustaining an ever-growing citizenry. All of that will help provide and spread the revenue base for the public services necessary for our increasingly complex society. Federal investment in the development of our water resources will also pay off by providing flood control which would save countless lives and prevent untold millions of dollars in property damage. Finally, it will stimulate to a tremendous degree a booming recreation industry that is contributing substantially to our national economy and can do so far more in the age of shorter working hours which lies ahead.

It is simply good business for the Federal Government to recognize and invest in the vast potential of the West in the interest of the entire national economy. A study based on Federal internal revenue collections reveals that farmers and townspeople on and in the vicinity of Western reclamation projects paid $340 million in income taxes during the 1958 fiscal year. A very sizable share of those payments came from non farm residents whose occupations stemmed from irrigation farming activities. Federal taxes from those areas alone have totaled $3 billion since 1940, 11 percent more than was spent for project construction since the start of the reclamation program in 1902. These taxpayments are in addition to regular project repay

ments which return, in the form of water and power revenues, 92 percent of the funds expended for reclamation projects.

The benefits of western development are manifest for the entire Nation in private as well as public ways. Thus, a growing and prosperous West provides a constantly expanding and more lucrative market for eastern industries. The $53 billion market of the Western States was three times the export market of the United States in 1956. For example, the turbines, the generators, the complex electrical equipment necessary for western waterpower projects spell jobs, prosperity, and a broader tax base in Schenectady, N.Y.; Gary, Ind.; Pittsburgh, Pa.; and other eastern and midwestern manufacturing

centers.

Similar benefits also will accrue to the entire Nation as a result of informed and intelligent development of fish and wildlife programs, the proper use of our vast forests and rangelands and national and regional parks, throughout America.

Important as this legislation is to the West, it is even more important to the entire Nation. It is essential if we are to meet the needs of our people during the next 50 years. They will not be met by the shortsighted policies of the past 7 years. Full employment of our people in the years ahead demands full employment of our natural

resources.

And may I at this point commend your committee, Senator Murray, for the farsighted attitude you have taken not only toward the development of our own Nation's natural resources, but also in studying the relative rate of progress of the United States and other countries in resource development.

I have in mind particularly the recent intensive study made by your committee and the Public Works Committee of the Senate of the water resource development programs of the Soviet Union. I would venture the prediction that, in the long run, the rate of development of our natural resources and of our productive capacity would have more effect on the standing of the United States among the nations of the world than our progress in missile development, for our storehouse of natural resources and our ability to use these resources wisely provide the real foundation for the strength and continued vigor of our Nation.

We should bear in mind, too, that the so-called undeveloped nations of the world—nations which in most cases are not yet committed to the East or the West-may be more impressed by the manner and rate of development of our natural resources than our armed might.

So, I commend your committee and the Public Works Committee for your study of the Russian program of water resource development. I have read your subcommittee's report with great interest, yet also with great concern. It is most disturbing and disheartening to learn that the Russians' present rate of growth in electric power capacity is faster than that of the United States. It is deplorable, too, to learn that the Russians have built bigger dams, bigger turbines, and longer and higher voltage transmission lines then we now have.

For many years we took pride in the fact that Grand Coulee was the world's largest dam. Today, a Russian dam already in operation has relegated Grand Coulee to the No. 2 position, and soon another Russian Dam will lower Grand Coulee to the third position.

It is significant that much of the Russians' progress and the slippage in our program have taken place during the period when our administration has expounded the backward-looking, unproductive "no new starts" policy-a policy which the administration has seen fit to reverse only this year as the elections approach. While the Russians, on their side of the Bering Sea, have proceeded with vigor in building massive dams and water resource projects, we have just begun, under the prodding of a Democratic Congress, to plan the giant Rampart Canyon project on our side of the Bering Sea, in Alaska.

In the past we have not needed the example of the Russians or any other nation to think in big terms and act in big terms. I do not believe we need such examples today. The challenge is clearly here, if we but face up to it. In our great and expansive West, different time zones and different river flow conditions make obvious the need for interconnections of our regional power systems. We need extra high voltage transmission systems which will be operated on a common carrier principle to transmit power generated by both public and private power utilities. Such long-distance transmission lines would not only make possible more effective utilization of our water resources, but also would provide for the best development and use of our fossil fuels. Yet, in the face of this crying need for giant transmission facilities, a recent report of the Bonneville Power Administration calls for a completely inadequate interconnection between the great Northwest and northern California systems.

I am convinced that the people of the West and the people of the Nation will not be satisfied with such myopic planning-planning that does no show faith in our future. This week, therefore, I am ordering the employment by the State of California of a consulting engineering firm to make a study of plans for a truly adequate extra high voltage transmission interconnection between the Bonneville Power and Central Valley systems. I am hopeful that other affected States will join in such a study. I want to emphasize that I am in complete agreement with our neighbors in the Pacific Northwest that in building any tie line between our regions, first rights to any usable power should remain in the region of origin for use by both public and private agencies.

The need for planning and building high voltage regional interconnections in the West-and, in fact, the entire country-is but one example of the need for the bill which is being discussed before your committee today.

To summarize, Senate bill 2549 gives promise that future Federal resource programs will receive the national attention they deserve and it holds out the promise that resource development programs will be devised on a scale and scope that the Nations welfare demands.

In closing I call your attention to this advice inscribed on the wall behind the Speaker's chair in the House of Representatives:

Let us develop the resources of this land; call forth its powers; built up its institutions; promote all its great interests, and see whether we also in our day and generation may not perform something worthy to be remembered.

And I have read your bill, and I think it will provide the coordination that I am sure the Governors need, to know where to go in the inventory of our great natural resources.

The CHAIRMAN. Thank you very much, Governor Brown, for your very efficient statement. I am sure it will have the attention of every member of this committee and will be helpful to us in the study of our problems. We will expect to have contacts with you from time to time in the future in connection with these problems, and we want you to know that we appreciate your efforts and the fine attention you have given to the problems.

Governor BROWN. Thank you very much.

Senator GRUENING. Governor Brown, I want to congratulate you on this very splendid presentation. I think you have gone to the heart of the nationwide problem. And I would like to ask you whether you do not think that resource development is essential wherever it may be under the flag to the development of our economy, to the increasing employment, to make way for the many new people that are coming out of schools and colleges looking for jobs; and that nothing is more essential than this kind of approach, which, as has been so well pointed out, was active during the 1920's and 1930's, but during the last 8 years has been practically abandoned.

Governor BROWN. Well, we in California are trying to do our part of the job. We have a water program out there. We are trying to sell a bond issue of $1,750 million to the people of our State. And we can do it; but we can do it only with the assistance of the Federal Government in connection with some of the programs that we have to undertake that are within the Federal area, such as the Central Valley project. And if we can work together, we will be able to take care of the growth of California, but if we do not, we will all be in very serious trouble.

And all you have to do is look at that Central Valley project, run down the eastern side of the San Joaquin Valley, and see what has happened as they have moved in on the agricultural areas of southern California. They are moving up into Tulare and Fresno and Kern and Kings Counties. And if they did not have the vision-the people, that is, that sponsored that Central Valley project, going back into the 1920's and the 1930's-we would be in very serious difficulty in California today.

Now, with respect to the other Western States, I am not so familiar with the situation, but I am sure that the same thing applies there. We are going to have more people, and it takes so long to get these projects completed that if we do not begin now, we will be in really serious trouble.

Senator GRUENING. Governor Brown, I was very much interested in your reference to our investigation of what the Russians are doing. You are quite right in saying that soon another dam will lower Grand Coulee to the third position; and then another dam to the fourth and another to the fifth. All of these dams are now in process of construction, and they will be completed before Rampart, at the rate at which is administration is proceeding.

Perhaps you ought to know that last year, of course, there was nothing in the budget for Rampart, and we managed to get a small item produced which, when it finally went to the White House, in the public works bill, provided for the beginning of studies, an item of $50,000. That was vetoed. And we would not have had it. Then the Congress revised the bill, cut it 22 percent; and again it was

vetoed. But fortunately, the veto was overriden, and so we got a start, with $48,750 for studies.

This year the Corps of Engineers sent word they would like to have $350,000 to continue these studies. The administration's budget contained an item for $75,000, one-fifth that amount.

Well, now, at that rate of progress, instead of being able to complete the studies, as the Corps of Engineers would like to do, in 3 years, it will take 15 years. What a contrast that is with what the Russians are doing. It is very ironic for us in Alaska to consider that but for the wisdom of William H. Seward, Alaska would be under Soviet Government administration, and the dam at Rampart would now be under construction full blast. We hate to think of that. We hate to think that a totalitarian system whose philosophy we despise is going ahead and doing a much better job than we are in that field and in other fields.

Senator KUCHEL. First of all, I want to say to my brother, Governor Brown, that I appreciate the generous comment he has made. He and I did serve together on the Water Projects Authority under the administration of Earl Warren. I think it is correct to say that we approached the problem of supplying abundant water to the people of California on a nonpartisan basis, and that we made progress even in those days toward that goal.

The Governor has given us a number of excellent points that merit study by this committee.

Speaking as one member of the committee, I am very glad to endorse the study which he has announced will be made by a consulting engineering firm, and for my part I would like to have this committee participate in precisely the same kind of study, because essentially, we in the West continue to face the problem of sufficient water and power for the expanding economy that is our unquestioned destiny. One of the purposes of the bill, Governor, in behalf of which you speak here today, is to provide the Chief Executive, any Chief Executive, with advice as to the best means by which that problem can be solved.

I happen to be the vice chairman of the Senate Select Committee on Water Resources, and all across this country this last fall I participated in hearings on water shortages. How can the Government of the United States assist the people in caring for the problem of water shortages in the days ahead? You, Governor, and I are two examples of men from different political parties whose State will be forever grateful to the Government of the United States for what it has done for our State.

One of my illustrious predecessors, Hiram Johnson, carved forever his niche in the hall of fame when he finally successfully achieved passage of the Boulder Canyon Dam legislation-legislation which was vigorously and bitterly and sometimes unfairly opposed by people who did not want the Federal Government to participate in reclamation legislation.

And yet today, in the part of California from which I come, southern California, were it not for the water and the electricity which Hoover Dam furnishes to the area south of the Tehachapi Mountains, we would be unable to maintain the rate of economic growth and the