Memorandum for Sherman Adams from Rowland Hughes Regarding Great Lakes Connecting Channels

1-6 Cale. G. has copy L. Senmary EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON 25, D.C. JAN 51956 MEMORANDUM FOR GOVERNOR ADAMS Subject: Great Lakes Connecting Channels On July 18, 1955, Secretary of the Army submitted a report to the Congress with the approval of the Bureau of the Budget, recom- mending an authorization for deepening the connecting channels in the Great Lakes. While it was recognized that this project was necessary to realize fully the benefits of the Saint Lawrence Seaway Project, it was also clearly understood that the prospective increases in inter- lake traffic alone would have justified the deepening of the channels. On August 1, 1955, H. R. 2552 to authorize this project passed the House of Representatives, but it was not considered by the Senate prior to adjournment. It is expected that the Senate will take early action in this sessione B. : At the time the 1957 budget recommendations were under considera- tion, the question was raised as to whether provision should be made under proposed legislation for the Great Lakes connecting channel. This question was taken up with our Office of Legislative Reference. We were advised that at the time the Bureau of the Budget reported on various Senate bills to authorize this project, the question of the Administration's position had been taken up with White House staff. It had been agreed that the Administration should take credit for this proposal. Therefore, provision was made in the 1957 budget for this project. You will find a description of it in the material furnished to you in connection with new construction projects proposed for 1957 on page 23, Civil Functions, Corps of Engineers. We have eliminated any reference to this project in the President's budget message. However, the detailed sections of the budget indicate that we have made provision for $5 million to initiate the deepening and improvement of the Great Lakes connecting channel. It is contemplated that following enactment of the authorizing legislation, a detailed budget estimate will be forwarded to the Congress. The total cost of this project will approximate $110 million. Towland Hughes Director Dondero 323 1/10/2011 -