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The Ketchikan Overall Economic Development Committee is designed 

 to create employment opportunities, foster more stable and 

 diversified local economies, improve local conditions, and 

 provide a mechanism for guiding and coordinating the efforts of 

 local individuals and organizations concerned with the economic 

 development of the Ketchikan community. Members are appointed by 

 the Borough Mayor. The Committee is comprised of 5 sub- 

 committees, Timber, Fisheries, Tourism and Secondary Industries. 

 The membership represents a cross section of the public and 

 private sector of the community. 



While our stated purpose is to promote development, it is clearly 

 understood that the preservation of existing jobs is critical to 

 the economic well being of the community. 



The Committee approved a motion on March 28, 1989 supporting the 

 "Policy Statement of the Alaska Loggers Association on Tongass 

 Legislation" (see attached Exhibit 2). The vote was 6 to 2 with 

 the chair only voting in case of a tie. While two members of the 

 committee do not support the ALA statement, they do support the 

 "Policy Statement on the Tongass National Forest Legislation and 

 Management" prepared by the Southeast Conference (see exhibit 3). 



The members are opposed to the legislation that will cost the 

 area jobs. 



Recognizing the importance of the industry, the timber sub- 

 committee initiated the idea for the conference on "The Future of 

 the Timber Industry In Southeast Alaska" which was held January 

 28, 1989 and was sponsored by the University of Alaska Southeast 

 - Ketchikan and the Ketchikan Chamber of Commerce. The idea with 

 the conference was for the speakers to present their views in a 

 format that could be published and used in the future. 

 Unfortunately the program was not well covered by the media, and 

 the written text of their presentations was just made available 

 this week. 



Dr George W. Rogers of Juneau, Alaska gave a first hand 

 perspective in his presentation of "The Impact of the Long Term 

 Contracts on the Economy of Southeast Alaska: 1954 - 1988". The 

 long term contracts were what made the development of the timber 

 industry possible (see exhibit 4). 



Drs. Con Schallau and Wilbur R. Maki of the Pacific Northwest 

 Research Station in Corvalis, Oregon presented their findings in 

 a presentation titled "Some Economic Implications of a Change in 

 Timber Harvesting on the Tongass National Forest" which they 

 developed with the assistance of Dr. Doug 01son(6ee exhibit 5). 

 I would summarize their presentation with an excerpt: 



"An economic impact analysis of Southeast Alaska 

 demonstrates that some plausible changes in harvesting from 

 the Tongass National Forest will be accompanied by 

 significant changes in employment. A reduction from the 

 current harvesting level of 396 mmbf to 350mmbf would 



