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20 percent, with the balance being borrowed from financial institu- 

 tions. Decline in value in the neighborhood of 30 percent would in- 

 volve a total loss of the equity; it would often hurt the people that 

 owned it and as we have been learning quite recently breaking 

 banks as well. Over the weekend we heard that the Alliance Bank 

 went down. The cancellation of the timber contract would elimi- 

 nate the only year-round employment in southeast Alaska. 



Senator Wirth. Mr. Dirksen, I am afraid we are at that point. 

 Mr. Clifton. 



STATEMENT OF JOHN M. CLIFTON, CHAIRMAN, KETCHIKAN 

 OVERALL ECONOMIC DEVELOPMENT COMMITTEE 



Mr. Clifton. My name is John Clifton and I am employed by a 

 locally owned First Bank. I am Chairman of the Overall Economic 

 Development Program in Ketchikan; the Committee consists of 14 

 citizens in the City and Borough of Ketchikan and the members 

 have backgrounds from diversity in the public and private sector. 



The Committee was designed to create employment opportuni- 

 ties, costs are more stable and diversified local economies, improve 

 local conditions and provide a mechanism for building and coordi- 

 nating the efforts of local individuals and organizations concerned 

 with the economic development of the Ketchikan Community. 



At a special meeting held on March 28th the Committee voted to 

 support the Policy Statement of the Alaska Loggers Association on 

 the Tongass Legislation. The vote was six to two voting against the 

 motion; the two minority voters did acknowledge their support for 

 the Policy Statement on the Tongass National Forest Legislation as 

 presented by the Southeast Conference. 



Now many of the arguments that we have heard here deal with 

 emotional issues. The information in my written statement clearly 

 shows the economic importance of the timber industry to southeast 

 Alaska and the impact of reduction levels of harvest. With small 

 reductions harvest the levels of employment and population would 

 significantly be lowered and the opportunities to use the region 

 would be greatly reduced. 



I urge careful consideration of the Tongass National Forest Leg- 

 islation and the economic impact of your decisions on the people in 

 the communities in Southeast Alaska. 



[The prepared statement of Mr. Clifton follows, attachments re- 

 tained in subcommittee files:] 



