The people's voice. [volume] (Helena, Mont.) 1939-1969, 1954-09-17
IKE MAY Retreat
ON iva
BY Labor's Daily News Service

customers threats of court action if
IVA has to bear the brunt of extra
costs under the proposed Dixon Yates
contract, repeatedly have forced the
administration to try smoothing things
over by having Acc carry all extra
costs.
A terse communique issued by two
generals was the first open indication
of COP partial retreat. The admins
tration, stung by the Aug. 26 letter
written by IVA Vice Chairman Harry
Curtis to Budget Diecrtor Rowland
Hughes, took quick steps to seal from
public view the open conflict between
IVA on one side and Acc and the
Budget Bureau on the other.
IVA BRIsTLED
Curtis wrote to Hughes charging
that Acc has ignored IVA experts,
impugned IVA performance and
sought to break contract it has with
IVA.
He noted that Hughes seemingly
has changed his orders on Dixon
Yates. Hughes on June 16 took the
position that IVA must bear the
whole extra cost burden except for
taxes and must furnish Acc all the
power the AEC-TVA contracts call
for. The extra cost of Dixon Yates
to the government is estimated at
S92-to-140 million over 25-year
period.
Hughes Aug. 10 wrote in effect
that IVA needn't furnish as much
power as it's contract calls for, and
must bear only part of the extra costs
excluding taxes. Acc would pay the
utility combines taxes.
Curtis letter also complained that
Acc had refused to furnish IVA
with the entire proposed contract.
Under the contract Dixon-Yates pri-
vate utility combine is to furnish
IVA with 100000 kilowatts power
capacity output in replacement" for
power IVA furnishes Acc. Acc had
let IVA see only selected excerpts,
Curtis charged.
MEETING OF MINDS
But President Eisnehower's new
VA chairman, Gen. Herbert D. Vogel
(ret.), got together with Acc Gener-
al Manager Gen. K. D. Nichols (ret.)
and issued their communique.
Tho +11,O uanaralS sold.
la meeting of minds has been
achieved on all fundamental issues
- But "many technical details
must be worked out.
2-"TVA will proceed in good faith
and as expeditiously as possible to
prepare all necessary data Nego-
tiations can proceed between the two
agencies in the same spirit of good
will that has exemplified past nego-
tiations."
3-The Acc made copy of the
contract available to IVA Aug. 81.
Thus Curtis Aug. 26 letter bore
fruit as IVA finally was given the
contract draft-its terms still are
kept secret from the public and even
from most congressman.
Curtis in effect had complained
that Acc wasn't dealing with IVA
in good faith, but the communique
talked only of IVA proceeding in
good faith.
The communique did not reveal
what the agreements on fundamental
issues were-who would bear the eX-
ira costs burden and whether IVA
would be relieved of having to furnish
100000 kilowatts of it's total con-
tracted power supply to Acc. Acc
staffers were mum, too. TWAS board
met to hear from Vogel what he had
done. Vogel told inquiring reporters
% talk to AEC-it's "their baby he
said.
But reports were abroad that on
,hese narrow issues, Nichols had sur
'endered - presumably on orders
rom above - and had agreed that
Acc would pay all extra costs.
NJUNCTIONS THREATENED
One reason assigned for this par
ial retreat by the administration is