379 



that each part of the region's economy is important and that the 

 Tongass Forest is central to all. 



For this reason, we support the establishment of a $20 million 

 economic diversification program of grants and loans. This pro- 

 gram will be utilized by communities and local businesses that 

 depend on the Tongass Forest to stimulate the creation of new jobs. 

 "Value-added" initiatives and more efficient utilization of the Ton- 

 gass Forest and its resources would be encouraged and supported, 

 and the loss of potential future jobs in the timber industry would 

 be mitigated. 



The two long-term timber sale contracts should not be unilateral- 

 ly canceled. These agreements should be reviewed by the Secretary 

 and renegotiated as necessary to ensure employment stabilization 

 to the maximum extent possible for those working in the forest; 

 fair and reasonable competition within the timber industry; full 

 and reasonable compensation to the contract holders for any 

 taking; consideration of the respective interests of Southeast Alas- 

 ka's diverse communities; definition and commitment of timber 

 available through the remaining contract period to contract hold- 

 ers in the revised forest plan; and clarification of Forest Service au- 

 thority to protect fish and wildlife habitat in areas under contract. 



The State of Alaska encourages this committee to consider adopt- 

 ing the Southeast compromise proposal this year rather than en- 

 acting legislation which is unlikely to end the conflict over the 

 Tongass National Forest. The proposal not only reflects a resolu- 

 tion of many issues of local concern but addresses these concerns in 

 a manner which furthers the national interest in true multiple use 

 management of the National Forest. I believe that this compromise 

 is not only the best hope of settling differences that divide the 

 people of Southeast Alaska but addresses the national interest in 

 the Tongass as well. 



We hope, Mr. Chairman, for the sake of the people of Southeast 

 Alaska that this compromise will be adopted and that Southeast 

 Alaska can depend on some stability in its economy in the future. 



Thank you very much. 



[The prepared statement of Governor Cowper follows:] 



