For over a hundred years the federal government has been underfunding its treaty obligations and other commitments to the Navajos. As a result, much of the reservation economy now operates at the level of bare subsistence. Deficiencies in social overhead capital have brought on even more marked deficiencies in industrial and commercial capital. These deficiencies are in turn reflected in undeveloped human resources, in lagging educational levels, a high incidence of disease and malnutrition, and an emerging complex of human problems. Therefore, the Navajo people and their Tribal government are seeking government assistance for a Ten Year Plan to bring the Navajo up to an equal footing with the rest of the nation. Implementation of this plan will require a substantial increase in public expenditures. The Ten Year Plan will be developed in two parts. Part I sets out the main features of the gap that separates the Navajo's economic and social circumstances from those of other Americans, and indicates the magnitudes of the public investment that will be required to close the gap. Part II will specify the goals and steps needed to achieve them. Funding requirements are set out in two categories: social overhead investment and investment in productive business enterprise. Since cost estimates set out in the Plan are based on 1972 price levels, Navajo circumstances will continue to lag behind in 1982, but the gap that still exists will be rapidly closing. This report presents Part I of the Ten Year Plan. (Author/NQ)