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I have been assured that the purpose of the Congress in approving section 4 (c) was to facilitate legislative oversight of a new program. Fortunately, that objective can be attained through well tested procedures fully compatible with our system of government; for example, the Congress may require the Secretary of the Interior to submit such reports as it may find of value in carrying on its legislative functions."

The question before your committee is what sort of measure will comply with the President's views, since all of us-both you and we are interested in getting operations under the Small Projects Act underway.

The clearest, cleanest and surest way of meeting the President's objections would be to eliminate all that portion of section 4 (c) which provides for a 60-day layover period and for the vetoing of proposed contracts under the act by either of the 2 committees during that period. In view of the President's message, this is the Interior Department's first choice.

This bill

Next in line as an alternative is the proposal contained in S. 340. though much less desirable than a complete striking of the language in question, would meet the objections stated in the President's message.

As between it and S. 517, a choice based on their relative workability would appear to favor S. 340. Since, however, this is a matter primarily concerning working arrangements within the Congress, we do not care to comment on it in detail. The division of small projects into two classes which S. 362 would effect-i. e., those the cost of which is more than $500,000, and those the cost of which is $500,000 or less-appears to us to be an unnecessary complication. In view of the fact that all proposals that will come under the basic act are, relatively speaking, quite small, we do not recommend that they be further broken down into two classes with full affirmative congressional action requested for all in the over-$500,000 class.

The Bureau of the Budget has advised that there would be no objection to the submission of this report to your committee.

Sincerely yours,

HATFIELD CHILSON,

Acting Secretary of the Interior.

EXHIBIT 4

Hon. CLAIR ENGLE,

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington, D. C., January 22, 1957.

Chairman, Committee on Interior and Insular Affairs,

House of Representatives, Washington, D. C.

MY DEAR MR. ENGLE: In your letter of November 21, you asked for my views on a draft of amendment to the Small Reclamation Projects Act of 1956 (Public Law 984, 84th Cong.) which was enclosed with your letter.

We have given the matter serious consideration and, while we recognize the improvement which your fanguage represents over that in the present law, have concluded that the cleanest way of meeting the problem would be to strike the language to which the President objected. A draft of bill along this line is enclosed for your consideration. This approach, we believe, will not hamper the proper legislative oversight which the Congress may exercise.

Sincerely yours,

FRED G. AANDAHL, Assistant Secretary of the Interior.

EXHIBIT 5

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington 25, D. C., January 25, 1957.

The honorable the SECRETARY OF THE INTERIOR.

MY DEAR MR. SECRETARY: This will confirm advice given Mr. Stevens by telephone regarding the testimony the Department is presenting to the House Committee on Interior and Insular Affairs regarding H. R. 2146.

The Bureau of the Budget concurs in the view of the Department of the Interior that the elimination of all that portion of section 4 (c), which provides for a waiting period and for the vetoing of proposed contracts by either of the two committees, would be the clearest and surest way of meeting the President's objections to the original language of the Small Reclamation Projects Act. If, however, the committee believes that the Congress should have an opportunity to consider proposed projects prior to the execution of the contracts by the Secretary of the Interior, this objective could be met most satisfactorily by the procedure contemplated by S. 340. Under that bill the Secretary would be required to submit project proposals to the Congress 60 days prior to executing contracts with the applicant organization. In our judgment the procedure prescribed in H. R. 2146, which requires affirmative approval by regulation of the two committees prior to the making of appropriations for small reclamation projects, might prove cumbersome.

Sincerely yours,

ROGER W. JONES, Assistant Director for Legislative Reference.

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OF MICHIGAN

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MAIN READING ROOM

ALASKA NATIVE SERVICE

Request by Alaska Territorial Senate for investigation by Congress of the Alaska Native Service, an agency of the Department of the Interior, and material supplementary thereto

TRANSMITTED TO THE MEMBERS OF THE COMMITTEE
ON INTERIOR AND INSULAR AFFAIRS OF THE SENATE
BY HON. HENRY M. JACKSON, OF WASHINGTON

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Printed for the use of the Committee on Interior and Insular Affairs

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FOREWORD

To the Members of the Committee on Interior and Insular Affairs of the Senate:

On February 15, 1957, the Senate of the Territory of Alaska passed a memorial requesting a congressional investigation of the Alaska Native Service's administration of the Wheeler-Howard Act program in Alaska. This memorial was referred by Senator Murray, chairman of the Interior and Insular Affairs Committee, to the appropriate executive agency for study and comment.

The request for investigation, the report of the executive agency, and supplementary material, including letters and telegrams from various suppliers to the native small-business men, are presented herewith for the consideration of the committee and determination of such action as the members think appropriate in the circumstances. The material presented is as follows:

1. Memorial No. 3 of the Senate of the Territory of Alaska with accompanying letters.

2. Letters of transmittal to Department of Interior and acknowledgments.

3. Letter of comment of United States Department of Interior with accompanying documents.

4. Correspondence and telegrams from business entities relative to the matter described.

HENRY M. JACKSON,

Chairman, Subcommittee on Territories.

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