first and most serious part of that, that's been under way, and we have been working with these people for the past five or six months, is a proposed program by Southern California Edison and Arizona Public Service, in which they are looking at the possibility of installing either one or two 750,000 kilowatt generating stations to service their requirements. They have asked us and we have submitted proposals to them on coal that would be a requirements contract along the lines of that which we already have with Arizona Public Service, and they have asked for price proposals for locating generating stations on both the north and south end of our properties. They have technical groups that are studying this matter. We are not in actual negotiation as yet, and of course, there are other people who aspire to serve that requirement, as do we, but we are very hopeful that we have a good position. Of course, when you think of it, 750,000 kilowatts is more than we already have installed, compared to the 575,000 that is there now, and a million and a half kilowatts would be almost three times what we now have installed. So it is a program in which we have very, very high hopes. Q: Have they said anything about the timing of that construction? A: Well, I can repeat what the presidents of the respective companies have said. They are thinking in terms of concluding an agreement by the end of this calendar year and of having delivery start in the fourth quarter of 1969. Q: I would also like to ask, in relation to Peru; prior to the Presidential election, there was some concern as to the attitude regarding business and private enterprise. I would be curious as to how this has worked out within the last two years and the present status? A: We are very much encouraged about the attitude taken by President Belaunde and his advisors. We think that the moves that he has made have basically been in the right direction, and we have seen no evidence insofar as we are concerned, that would lead us to be fearful that they are not still very much interested, and as a matter of fact, he has specifically urged us to expand. Now, I think some of this concern has grown out of the situation that has to do with Standard of New Jersey, which, 12 without getting into the merits of it at all, from the Peruvian standpoint, is a kind of a special case. We have really no indication at all other than the fact that they are anxious to have us expand our facilities down there. Q: Does their interest extend to tax concessions, and if so, over what period of time in a new development? A: Frankly, as a matter of policy, we don't believe in getting tax concessions for an operation. We could be wrong on this, but when you go into a foreign country and want to extract their natural resources, their natural wealth, and you also ask the special privilege of tax concession, it isolates you from other people and puts you in a favored position which frankly we don't think is sound. Q: Would you comment on the international supply and demand picture of iron ore? A: Certainly, with the ore reserves that there are in existence, and those that are susceptible of development, I can't see that there is any shortage of iron ore in the world. The demand has been increasing. However after the war there was great apprehension of a shortage of iron ore because of the depletion of the Mesabi Range and other known deposits. The result was that everyone accelerated their exploration efforts and they have just been all too successful, as far as we're concerned. We don't mind succeeding outselves, but we wish some of our competitors hadn't done so well. A lot of these reserves are not in operation, and whether they will actually come into being depends upon the price that's available, and in, I would say, the last year or so, there has been a kind of a firming of the price. Some of the marginal deposits are more or less dropping out of sight as active competitors. But perhaps the most significant area of new discovery is in Western Australia. New discovery may be a little bit of a misnomer because some of these de-posits were known, but the Australian Commonwealth government would not permit the export of iron ore until fairly recent years. That has been changed now and there are vast reserves of very high grade ore in Western Australia. We have one of the deposits, but there are others, in some of which American companies are interested, and this is the thing that I'll be anxious to see come out of 13