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Both pulp mills used the long term timber supply as collateral to 

 obtain financing and made huge Investments In facilities. A year 

 around timber industry grew up around the pulp mills including saw 

 mills, logging camps, stevedoring operations and air taxi services. And 

 when markets have been poor, as they were from 1981 to 1985. the 

 pulp mills did not break their contracts with the United States and 

 close their doors on the people of Southeast Alaska. Instead they used 

 the 50 year timber contracts as collateral to finance prolonged 

 operating at a loss. The Japanese-owned mill accumulated a 

 staggering debt during the market depression of the mid-80's, but 

 refused to close its doors, treating the upholding of its commitment to 

 the U.S. a matter of honor. - 



According to the Forest Service, over the last ten years the 

 Tongass timber industry has resulted In 1 1 .900 direct and indirect 

 Jobs each year, on the average, and an annual payroll of $279 million. 

 But these numbers have to put in perspective. The Tongass forest 

 products industry accounts for 30% of all private industry employment 

 in Southeast Alaska and is responsible for one quarter of the Southeast 

 Alaska economy . These Jobs are sorely needed in my State where we 

 are currently experiencing double-digit unemployment. The two pulp 

 mills are the only two year around manufacturing plants in Alaska. The 

 federal regional development program for Southeast Alaska has 

 worked and H.R 987 pulls the rug right out from under it. 



The feeling is that H.R 987 essentially legislates the forest plan 

 for the Tongass before Its revision can be completed. The Tongass 

 forest planning team has worked for two years at a cost of over $5 

 million to the taxpayer and the draft plan is due June 1 of this year, 

 less than four months away. The Forest Service has held over 30 

 hearings in all communities across Southeast Alaska, hundreds and 

 hundreds of people have Invested their faith and valuable time in the 

 forest planning process. I am aware that just the State of Alaska 

 Department of Fish and Game has worked thousands of man hours, 

 over 59 man months, preparing its input into the forest plan. All of 

 this effort would be wasted if H.R 987 becomes law. It Is up to this 

 Committee and the Senate to see that the taxpayer's money is not 

 wasted in this way and that the Forest Service is allowed to carry out 

 Its responsibilities mandated under the National Forest Management 

 Act and the Resources Planning Act. 



The Tongass plan is the very first forest plan in the nation to be 

 revised — to circumvent the process in this way sets a very bad 

 precedent. How many more forest plans for other national forests will 

 be brought before this Committee to be tailored in a way which is 

 advantageous to preservation interests before their revisions are 

 complete? We have too much at stake in national forests across the 

 Nation to make a mockery of the planning process. 



