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complex ballot initiatives which, in part, would have 

 provided funds for partial or whole acquisition of the 

 Headwaters Forest in 1990. Many observers believe this 

 rejection was unrelated to the Headwaters Forest issue and 

 another ballot measure with partial funding for the 

 Headwaters acquisition is being planned for 1994 or 1995 

 by California state of f ici^rs.~~~~Woreover , the concept of a 

 public acquisition of the Headwaters Forest has bipartisan 

 support in the California legislature and, unlike the so- 

 called California Desert bill, has been publicly supported 

 both by (Republican) Governor Pete Wilson and by 

 (Democrat) Assembly Speaker Willie Brown. 



Let me also emphasize, Mr. Chairman, that, although 

 the voluntary moratorium has expired, we remain sincere in 

 our professed willingness to permit an acquisition of 

 these 4,500 acres. We are also realistic. We acknowledge 

 the existence of a budget deficit that is so large as to 

 make an acquisition completely for cash quite unlikely. 

 We likewise recognize, as does the Department of 

 Agriculture, that these 4,500 acres have such a high value 

 that an acquisition solely through traditional land 

 exchanges will not likely be possible. Indeed, these 

 values alone make the 44,000 acre acquisition contemplated 

 by H.R. 2866 wholly unrealistic. 



Notwithstanding these practical constraints to an 

 acquisition, we are prepared to continue to work 



