J F FRIEDKIN ADVISED LAST NIGHT THAT AT MEETINGS WITH MEXICAN REPRESENTATIVES AFTERNOON OF APRIL 30 AND ON MAY 1 ORAL AGREEMENT WAS REACHED IN PRINCIPLE ON ALTERNATE FIVE WITHOUT COMMENT AS TO CAPACITY OF WORKS OR QUALITY OF WATER AND WITH UNDERSTANDINC THAT THE PLAN IS SUBJECT TO FURTHER STUDY. THE UNITED STATES AND MEXICAN PANEL BEGIN DRAFTING OF UNDERSTANDING TODAY AND IF AGREEMENT IS REACHED FRIEDKIN WILL SEND DRAFT TO HIS DEPARTMENT ON MAY 3. HE INFORMS ME THAT SAYRE IS IN COMMUNICATION WITH INTERIOR. CONCERNING 280 000 ACRE-FEET FOR CHANNEL CONTROL RELEASES BEGINNING IN OCTOBER FRIEDKIN STATES THAT HE PRESENTED SUCH PLAN AS BEING UNDER CONSIDERATION AND THAT HE POINTED OUT RELEASES MUST BE MADE IN WINTER MONTHS. I REASSURED HIM THAT OUR DETERMINATION THAT WE RELEASE THIS WATER IS DEFINITE. HE WILL KEEP ME INFORMED OF FURTHER PROGRESS.