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TITLE V. REGIOHAL ECONOMY 



SEC. 501. ECONOMIC STUDY 



The Secretary is directed to 

 commission an economic development study 

 to analyie the economic impact of all 

 potential activities within the 

 boundaries of the Tongass National 

 Forest and to recommend appropriate 

 federal action to enhance economic 

 stability and diversification in the 

 region and to alleviate any adverse 

 impacts from changes in the memagement 

 of the Tongass National Forest, such as 

 termination of the long-term contracts 

 and reduction in the annual allowable 

 cut on the Tongass. There are author- 

 ised to be appropriated $2,000,000 for 

 the purposes of this section. 



SEC. 502. COMMUNITY IMPACT 



(a) The Secretary of Agriculture 

 shall make to the State of Alaska annual 

 payments in lieu of taxes in an amount 

 equal to 25% of the receipts from sale 

 of timber and other resources from the 

 Tongass National Forest, but in no event 

 shall such payments be less than 

 $1,000,00 annually. 



(b) The Secretary is authorized to 

 establish a loan progrsua to provide 

 loans to forest products industries 

 within Southeast Alaska for value added 



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