37 



why isn't Ketchikan trying to pony up some money to help an em- 

 ployer and receive — you know, the state of Baltimore spent $200 

 million to try to attract 400 jobs in the baseball park. Why is this 

 a Federal problem? I mean, because this bill goes beyond an exten- 

 sion. It goes to — the suggestion is that we have got to provide 

 cheaper timber. We have got to provide other relief in this oper- 

 ation and we have got to take it out of the Federal treasury, if you 

 will, however that translates into the Federal treasury. I want to 

 know what the other beneficiaries are seeking to do here. 



Mr. Lewis. Well, it's 



Mr. Young. Will the gentleman yield? 



Mr. Miller. One of the things — I think the Interior Department 

 wouldn't force it because they can't commit to a local big city or 

 even the State. I am surprised you got it out of either in a period 

 of eight years. That is just not good business. 



Mr. Lewis. We don't have 



Mr. Miller. Well, nobody can, but you want us to commit to a 

 23-year-old contract. 



The Chairman. We want an extension of 15 years so that they 

 can go out and raise some money. 



Mr. Miller. Well, I think — but I think that also brings the ques- 

 tion as to what are others prepared to do. Why is all of a sudden 

 a Federal 



Mr. Lewis. It is the timber supply that is the problem. 



Mr. Miller. Well, that is your contention, but that is based upon 

 the fact that you have to go out and go to market rates and you 

 have to borrow all this money from the bank. I am saying there 

 are some rich cousins here. You have got $19 billion in the State 

 fund. You have got $25 million grant. Mind you, $110 million to 

 Southeast Alaska that was given when the original clause language 

 changes were given and the bill — the consolation part of it Senator 

 Stevens got $110 million a region. Does the region think this is im- 

 portant? 



The Chairman. We don't get into this argument 



Mr. Miller. No, it is on my time and I want a better reason 



The Chairman. The Federal Government owns the timber. 



Mr. Miller. I understand that. 



The Chairman. The Federal Government owns the timber and no 

 one can participate until they know the Federal Government is 

 willing to participate in the process. You can't go out and simply 

 make wood. It is impossible. And by the way, I just got handed a 

 little Associated Press deal, Jack Ward Thomas, that famous for- 

 ester, says that the Federal Government at the minimum will be 

 probably liable for $1.41 billion in Alaska because of negated tim- 

 ber contracts. That is the Chief of the Forest Service talking about 

 the obligation of this government thanks to the Thomas Reform Act 

 that you and I worked on. 



Mr. Miller. Well, the response would be then to cut our losses 

 rather than extend it 15 years. We got to cut our losses and let this 

 contract run out and be on our merry little way. 



The Chairman. But you cut your losses and the company does 

 all that, but you do not maintain the employment in that city, and 

 I thought that is 



