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"I believe that the potential benefits of an orderly phaseout, rather than an immediate and abrupt termination, exceed the relatively low subsidy cost involved and that this course of action is definitely in the national interest. Such a plan would also afford a reasonable protection to past Government and private investment in the helicopter program". (p. 2)

The record in this case fully supports the soundness of this judgment. NYA, of course, recognizes the practical problems created by the refusal of Congress to appropriate further helicopter subsidies. In order to accommodate these problems, NYA has stated its willingness to accept a form of certificate which, effective July 1, 1965, would condition NYA's right to receive subsidy payments upon the enactment of Congressional appropriations available to the Board for the purpose of making such payments. (Tr. 55) The effect of this proposal is to enable the Board to decide the issues in this case on the basis of the statutory standards (as it should and must) leaving the further and separate question of appropriations in the hands of Congress.

NYA proposes to resolve its problems a step at a time. It believes that if the Board fulfills its statutory function, NYA will have an appropriate basis to obtain the necessary Congressional appropriation. With favorable Board action, NYA can present its position before the Budget Bureau and in Congress. Without it, it cannot.

Moreover, if NYA were granted subsidy eligibility subject to Congressional appropriations, it will provide a tangible and meaningful endorsement by the cognizant government agency of the value of its service. At the same time, it would give unqualified recognition to the authority of Congress in the appropriations area.

Actually, today there are better reasons for subsidizing helicopter service than ever before. It is more widely accepted, There is relatively little subsidy required to complete the job. Major new advances in vertical lift transportation have just occurred and remain to be fully exploited. NYA can contribute substantially to the solution of the pressing problem of ultra-short haul city center to city center service. In the past, NYA has received substantial support in Senatorial and Congressional circles. Under conditions which will prevail in the future, it can realistically hope for broader support.