It has been put off on the theory that the other dams were more necessary, and that this dam could come in at the last of the program. But it is one of the most important projects, if not the most important project right now in the whole Tennessee Valley. I cannot state too urgently or emphatically to this committee the dire need which we feel for the appropriation of this money to get the Gilbertsville Dam started.

I realize fully the responsibility of this committee, that you are trying to do an economical job. I am always hesitant to ask for an increase in an appropriation item. And I would hesitate in this instance if I did not feel that it was for the ultimate good of the productive work that the Tennessee Valley Authority is trying to accomplish, and I hope that the Directors in their testimony will bear me out in the statement that there is great need for this dam in that area.

I thank you for giving me this opportunity to make a statement at this time, Mr. Chairman.

WEDNESDAY, APRIL 14, 1937.

GILBERTSVILLE DAM CONSTRUCTION

Mr. WOODRUM. Mr. Gregory, of Kentucky, desires to make a statement to the committee on the Gilbertsville Dam. We will be very glad to hear you at this time, Mr. Gregory.

STATEMENT OF HON. NOBLE J. GREGORY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF KENTUCKY

Mr. GREGORY. Mr. Chairman, I appreciate your courtesy in allowing me to make a brief statement to you with reference to the Gilbertsville Dam.

It is not my desire to clutter the records of this committee with an extensive statement with reference to the Tennessee Valley Authority program, but I do wish to express to this committee my deep interest. in the construction of the Gilbertsville Dam on the Tennessee River and the deep interest of the citizens of western Kentucky and Tennessee in its early construction.

I wish to heartily concur in the statements which have been made by Senator McKellar and Representative Pearson, of Tennessee, and others who have appeared in behalf of this project, and on behalf of the people of my section I wish to ask that the appropriation for this year be placed at $2,740,000, as I am advised that this will meet with the approval of the Authority, and that they can well use this amount to begin the construction of this all-important dam.

I further wish to suggest that whatever amount you may set aside to allocate for this purpose may be allocated for the purpose of preliminary investigation and construction. I am advised that the preliminary surveys and investigations are rapidly reaching completion. I have just discussed the matter with Dr. Arthur E. Morgan, and, while he says that there is some preliminary work yet to be done, funds could be well used for preliminary construction.

It is our information and belief that the construction of this dam at this time on the Tennessee River gives assurance of early navigable use of the Tennessee creating a 9-foot navigable channel, and rendering this river immediately navigable while otherwise it would not become so navigable until this particular dam is completed. In other words, until the Gilbertsville Dam is completed the navigation feature of the Tennessee River would be of limited value.

The people of the flood-stricken area of Kentucky and Tennessee earnestly solicit your cooperation toward early construction as a further protective measure against future floods and disasters such as have so recently swept this particular section.

It is hoped that your committee will give this matter earnest consideration.

I have just discussed that feature with Dr. Morgan this morning, and he tells me that in his opinion the construction of this dam would be justified as a reservoir feature, if for no other reason.

I am sure you gentlemen have followed the story of the recent flood and its effects, and that this feature alone, if no other, is of great interest to you.

I want to express my appreciation, Mr. Chairman, for your courtesy in allowing me to give you my views on this matter, and I hope you will give the matter your favorable consideration.

Mr. WOODRUM. We thank you for your statement, Mr. Gregory.

Analysis of obligations under "Administrative expenses, Adjusted Compensation Payment Act"

Analysis of obligations under "Administrative expenses, Adjusted Compensation Payment Act" -Continued

Analysis of obligations under "Administrative expenses, Adjusted Compensation Payment Act" -Continued

RECAPITULATION UNDER TREASURY DEPARTMENT

Statement showing employees included in supplemental estimate for administrative expenses, Adjusted Compensation Payment Act, whose salaries aggregate $2,400

STATEMENT OF HON. R. WALTON MOORE, ASSISTANT SECRETARY OF STATE

PROPOSED ESTABLISHMENT OF AIR SERVICE FROM AREQUIPA, PERU, TO BUENOS AIRES VIA LA PAZ, BOLIVIA, AND FROM RIO DE JANEIRO TO BUENOS AIRES VIA ASUNCION, PARAGUAY

The question which I understand the committee is considering concerns the appropriation of approximately $448,500 to be made available for air-mail contracts on two new services in South America; one from Arequipa, Peru, to Buenos, Aires via La Paz, Bolivia, and the other from Rio de Janeiro to Buenos Aires via Asuncion, Paraguay.

The matter of the establishment of these services first came to my attention some months ago when it was presented for consideration at a meeting of the Interdepartmental Committee on Civil International Aviation. This committee was created by the President in June 1935, to "gather information pertaining to civil international aviation in all its phases and to submit such recommendations as may seem called for", and is composed of the Assistant Secretaries of State, Treasury, and Commerce, and the Second Assistant Postmaster General.

The proposed services were discussed at several meetings of the interdepartmental committee during the past few months. After carefully considering all aspects of the question, the committee unanimously agreed that it would be in the best interest of the United States to make available the funds necessary for air-mail contracts, and reported this conclusion to the President.

I understand that what is now desired is an expression of my views as a member of the committee as to the merits of these proposals. I am, of course, not in a position to discuss the matter from the point of view of postal revenue.

It has long been the policy of the United States to foster and develop economic and political relations with the Latin American republics. The importance of United States trade with these countries is well known. The investment of United States capital in Latin America amounts to several billions of dollars, and this area is generally considered of vast promise for future commercial expansion to the benefit of all the countries concerned. Similarly, in the political field, this Government, in recent years more than ever, has felt the importance of close friendship and intimate cultural relations with our Latin American neighbors. The recent Inter-American Conference at Buenos Aires emphasized the importance of trade relations among the American nations, and one of the chief bases for its program was the consideration of all measures which would improve communications.

Adequate air-mail and air-transport facilities are of material assistance in building up international trade and promoting better understanding between peoples of different nations. Nations which are far removed from each other geographically are brought into close proximity in point of time by the establishment of efficient air services. Air communication between the United States and Latin America is particularly advantageous and necessary because of the great distances to be traversed. The time saved by air as compared to steamship travel between New York and Buenos Aires amounts to approximately 13 days, and an additional saving would be made by the establishment of the proposed service through Bolivia. As a result of the establishment of these facilities, businessmen and statesmen now travel between the two continents with a frequency never before even dreamed of.

In establishing air communication with South America, United States aviation interests have accomplished a piece of work which is of fundamental importance. No phase of United States commercial activity in the American republics has, in many years, done so much to enhance the prestige of the United States in this hemisphere. These interests have successfully overcome great obstacles in establishing direct air-mail services to all the countries of Latin America except Bolivia and Paraguay. It is now proposed to include these last two countries on the through services. The establishment of the proposed routes should be of great benefit to the relations of the United States with these countries.