57 



In this sense, the financial restructuring measures to be put into 1 4 



place by the Export-Import Bank of Japan, the other financial 

 institutions and the shareholders are exceptional and 

 unprecedented. It should be acknowledged that these measures 

 represent the most extensive support that the Japanese side can 

 offer." 



The pulp mills have weathered the bad times and are just 

 beginning to prosper 



In 1988, the pulp mills have had their best year ever exporting over 

 $160 million in product in addition to their domestic sales. The 

 Southeast Alaska forest products industry as a whole exported $475 

 million in products during 1988. This is up from $327 million in 

 1987, a 45% increase, and $249 million in 1986. The two pulp mills 

 have exported more than $3 billion in products since they were 

 constructed to more than 36 different countries around the world. 



Employment in the industry is up 17% from 1987. In 1988, 3447 

 people were employed at the saw mills, pulp mills and in logging 

 camps. But that doesn't tell the entire employment story, an 

 additional 976 people were employed in stevedoring, towing, road 

 construction and the Forest Service. These 4423 direct jobs result in 

 another 6192 indirect and induced jobs for a grand total of 10,615 

 jobs dependent upon the Southeast Alaska timber industry. These 

 jobs are sorely needed in my State where we are currently 

 experiencing double-digit unemployment. 



The high quality Alaska Pulp product plays a critical role in 

 our space program and national defense 



It is also important mention that the Sitka mill makes a product 

 critical to the NASA program and our national defense. Because of 

 the special nature of the mix of spruce and hemlock fibers and the 

 extremely high quality of the pulp product, it is used to produce a 

 special rayon yarn critical to several components in the space shuttle 

 and in strategic missiles. 



Alaska Pulp provides material to Avtex Fibers in Front Royal, 

 Virginia, the only qualified supplier of aerospace grade rayon yarn 

 essential to the production of solid rocket nozzles and reentry 

 vehicles used in many tactical and strategic missiles and the space 

 shuttle program. 



Avtex nearly closed its doors for good last November, but due to 

 critical potential impacts to national security, both DOD and NASA 

 negotiated an agreement to allow Avtex to continue operating. Key 



