I look forward to sharing with you Oregon's per- 

 spective on these challenges over the next few days. 

 We, as well, have been challenged to do more with 

 less, and we began that process in the early days of 

 my administration as governor We have been pru- 

 dent. We began cutting budgets and implementing 

 service reforms that have enabled us to blunt some of 

 the impact of the recession and reductions in federal 

 funds. And we concentrated very early on diversified 

 economic development for our timber-based economy. 



But we have not done enough. Like most of you, 

 we too have been hit by the downturn — and hit 

 hard High interest rates have devastated our housing 

 market — despite one of the largest and most suc- 

 cessful veteran's home loan programs in the nation. 

 The housing slump has devastated our forest indus- 

 try — the pillar of our economy Only five states in 

 the nation have a greater jobless rate than Oregon. 

 At least one of the five, Washington state, 12 9 per- 

 cent IS represented here today Oregon is at 11.4 

 percent. 



We, also, are wearing the "Oregon boot," but we 

 are looking at policy initiatives for our forest products 

 industry base that we can bring to Congress with your 

 help. 



I am announcing today my endorsement of a 

 change in the way timber harvest decisions are made 

 nationally. My goal, and, I believe, your goal is to 

 achieve a stable supply of timber at an affordable 

 price, which will allow Westerners to compete suc- 

 cessfully with other regions and foreign markets. Cur- 

 rently, these decisions are made based on very 

 volatile housing start assumptions that rise and fall at 

 the mercy of — among other things — interest rates 

 I believe that the U.S. forest products industry would 

 be better served by a broader base of assumptions 

 reflecting not only housing starts but increased mar- 

 kets — both domestic and international — for finished 

 products 



The Western Governors' Conference is a forum for 

 this policy goal. By approaching Congress and the 

 Administration as one region and one group of gover- 

 nors, we can speak with one voice and be heard. 

 Our initiative can help stabilize and conform the 

 actions taken by the Bureau of Land Management and 

 the US Forest Service. 



I mentioned this announcement this morning, actu- 

 ally, so we can begin uniting on not only the issues 

 that I address, but uniting on the issues that you will 

 bring to us 



The ultimate message to you this morning is not 

 only that Oregon welcomes you. It is that Oregon is 



listening to you The people of our state are following 

 our deliberations. 



All of us are groping for answers. We will not have 

 answers in three days or in three months But we can 

 emerge from this conference with a problem-solving 

 agenda, a series of joint initiatives, and an acute 

 awareness of the tasks we face and the steps we 

 must take. 



To find solutions, we must explore ideas Our nation 

 was founded on ideas The translation of our ideas 

 into action is the process through which our nation 

 retains its great spirit and magnificent vitality. 



I am an optimist It is often said that an optimist 

 proclaims that we live in the best of all possible 

 worlds, while the pessimist fears that this is all true. 



I suppose, at the very least, that optimism means 

 making the best of it when you are getting the worst 

 of it. 



I conclude this morning with optimism, because it is 

 that generous spirit that has brought us together 

 today. The generosity of private industry has made 

 possible this 35th Western Governors' Conference to 

 come together as well as we have. It includes the 

 generosity of many companies who are suffering with 

 us through this recession and companies who are as 

 interested in turning our economy around as you and I 

 are. They are optimistic about our ability to do so. 



So, it IS time for us to get on with the business 

 about us in the beautiful surroundings in which we find 

 ourselves 



What we learn here can measure our solutions as 

 well. 



I would like to, again, greet the governors and our 

 honored guests, and again say to you, welcome to 

 Oregon 



I thank you all very much for being here and shar- 

 ing your wisdom with me. At this point, I think it is 

 time we return to your chairman. Governor Herschler, 

 who will proceed with the program that we are all 

 eagerly looking forward to. 



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