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this moment, however, timber harvest could be increased and jobs 

 increased if further restraints imposed by these lawsuits were 

 lifted. 



The harvest rate we would anticipate for 1989 without 

 such restraints would be close to 450 million board feet. 



The world market outlook remains very strong. Alaska 

 pulp products are sold in 20 countries. There has been worldwide 

 resurgence in rayon and cellophane because of renewed recognition 

 of the strength of these biodegradable products. There are many 

 specialty uses for dissolving pulp, including lacquers, tire cord, 

 industrial belting, munitions and pharmaceuticals. Furthermore, 

 as a result of revision in exchange rates, there is now a permanent 

 institutional change on the forest in Alaska which will maintain 

 our industry at a higher rate of harvest. As you know, logs 

 harvested on National Forest land in Alaska are subject to primary 

 manufacture. The change in the exchange rates has caused products 

 manufactured in Alaska and shipped to the Pacific Rim to be cheaper 

 than products manufactured from round logs in the Pacific Rim. 

 While this generalization is not true for every product, it is true 

 with respect to enough products so that Alaska timber is able to 

 compete on world markets. Accordingly, we will be able to supply 

 jobs at an accelerating rate on the National Forest land. 



Conversely, the Village Corporations in Southeast Alaska, 

 established under the Alaska Native Claims Settlement Act of 1971 

 are running out of timber. Six of those villages are already out 

 of timber, another three will run out of timber in two years, and 



