3 The bill already provides for an overall project category limit that we accept and will comply with even if certain projects experience difficulties. The effect of requiring the second approval is to delay the start of certain projects, or to suspend or abandon ongoing projects. BOARD AUTHORITY FOR REPROGRAMING This course of action would obviously introduce inefficiencies and costs that are undesirable. We believe the Board of the Commission should be given the reprograming authority that it seeks, so long as the amount authorized and appropriated by Congress for the total capital program and the major categories within it is not exceeded. I think this is consistent with the treaty, it is consistent with Public Law 96-70, it is consistent with sound management practices, and it is consistent with the trust that ought to be afforded the Board of the Commission, with its five member U.S. majority which the Senate confirmed after careful consideration. AUTHORITY TO INITIATE NEW PROJECTS I recommend that the committee for similar reasons also adopt language authorizing the Commission to initiate projects that are not included in the budget submission, but have been subsequently determined by the Board to be necessary for efficient, continuous, and safe operation of the canal, on a 30-day notice and wait basis and with the understanding, of course, that these new project starts would not violate the ceiling for the various categories of capital projects. There have been cases in the past where similar reprograming actions were necessary to assure safety and to increase canal capacity. There are examples of those in my statement. They prove, I think, the need for this authority we seek. RESTORATION OF BUDGET LIMITATION The remaining actions that I believe are necessary require restoration of certain budget limitations that were imposed by the House committee in this pending bill, in three activities. I will mention them only briefly. The Administrator will be prepared to provide more detailed justification, either this morning or in followup written answers if you have some questions. LIMITATION ON HIRE OF VEHICLES First, I believe all limitations on the hire of vehicles ought to be removed. The funds we have sought for hire of vehicles are required to provide a contract for shuttle bus service to transport employees where their duties are related to the actual movement of ships through the canal. GUIDE SERVICE Also, we seek restoration of a reduction of $68,000 in the operation of guide services. If we had to live with this reduction, one of two equally unfavorable actions would happen: either (a) the Commission would be required to remove the motor launch Las Cruces from service, or (b) it would have to reduce its visitor facility operations to an ineffective level.