ABSTRACT
This chapter addresses some of the considerations in addition to economics that ultimately were responsible for the projects secured by the Treaty. The US insistence on the Libby project stemmed from the apparently urgently felt need to provide storage on the upper Kootenay for flood control purposes in the Bonners Ferry, Idaho, reach of the river. British Columbia’s concern over the inundation of the East Kootenay valley persisted, however, as did its concern over financing the projects favored in the federal position. Canada would relinquish its rights to make a major diversion of the Kootenay into the Columbia. In spite of the opposition of British Columbia to the inundation of the East Kootenay valley, federal authorities continued to press the case for the desirability of retaining the right to a major diversion of the Kootenay River. The assumptions underlying the analyses are as follows: All power generated at Canadian plants to be sold at 4 mills/kwh in British Columbia.
