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LONG-TERM CONTRACT(S) - THE FOUNDATTOW 



There can be no question but that the long-term 

 contract(s), together with the pulp mill(s) constructed as a 

 requirement of the contract, is the foundation of the timber 

 industry in Southeast Alaska. On these foundations the timber 

 industry has become the year-round and a principal mainstay of 

 the economy of Southeast Alaska. 



The General Terms of KPC' s long-term contract describe 

 clearly the underlying conditions and assumptions. Both the 

 U.S. Government and KPC stated their intention to facilitate 

 the pioneering of a larger scale timber industry which has 

 become a primary and the only vear-round industrial base 

 underpinning the economy of Southeast Alaska. The old growth 

 climax forests of Southeast Alaska contain a high percentage of 

 over mature and decaying material which is not saw grade and is 

 only suitable for pulp. (Pulp grade material comprises nearly 

 50 percent of the volume of timber harvested in the Tongass.) 

 For this reason, officials of the U.S. Forest Service knew it 

 would necessitate construction of a pulp mill to provide a 

 foundation for developing the timber industry. 



Today, having the pulp mill(s) supported by its long-term 

 contracts is as essential as ever before . . . for these 

 reasons: 



1. The shrinking federally-owned land base available for 

 multiple use forest management due to wilderness 



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