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has not needed the added investment strategy to meet the reduced demand for 



Tongass timber from 1982 through 1986 the Forest Service could have met 



total demand solely through its normal investment program." 



Representatives of APC in Sitka and KPC cite that the rationale for 

 ANILCA Sec. 705 was for the purpose of maintaining timber employment in the 

 region at pre-1980 levels (peak years for both mills). However, despite the 

 millions of dollars from the Fund, according to the GAO over 1200 jobs were 

 lost from 1980 to 1986, primarily due to a poor market for pulp. At 

 Congressional Oversight Hearings in May 1986, the Forest Service in response 

 to questioning by Rep. Don Young stated, "Given the reduced demand for Alaska 

 sawn products in export markets since 1981, no amount of ANILCA investments 

 could have maintained the timber industry employment at historic levels." 



Even today, despite the recent upward swing in demand for Tongass 

 wood products, Tongass timber jobs are still well below 1980 levels. For 

 instance. Forest Service figures released just two weeks ago in a draft report 

 to Congress show that in 1988 the direct, full-time equivalent employment 

 supported by the Tongass timber program totalled 1,781 -- far less than the 

 GAO's 1980 figure of 2700 jobs. 



S.346 would not eliminate the Tongass timber program. The program 



would still be funded through the annual Congressional appropriations process. 



Intensive "lanagement, or the Forest Service's "added investment" program for 



cutting marginal timber, could still continue. The Forest Service, in 



response to a question from this Committee last year, stated: 



The elimination of the permanent Tongass Timber Supply 

 Fund appropriation would not necessarily mean more, or 

 less , funding for the timber program or for any other 

 resource program on the Forest. What the eleimination 

 of the permanaent appropriation would mean is that the 

 added inestments that were designed to offset some of 



