383 



Tongass Forest is central to all. For this reason, we support 

 the establishment of a 20 million dollar economic diversification 

 program of grants and loans. This program would 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 Tongass 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 cancelled. These agreements should be reviewed by the Secre- 

 tary and renegotiated as necessary to ensure employment stabi- 

 lization to the maximum extent possible for those working in the 

 forest; fair and reasonable competition within the timber indus- 

 try; full consistency with the Tongass Forest Plan as periodical- 

 ly revised; fair and reasonable compensation to the contract 

 holders for any taking; consideration of the respective interests 

 of southeast Alaska's diverse communities; definition and commit- 

 ment of timber available through the remaining contract period to 

 contract holders in the revised forest plan; and clarification of 

 Forest Service authority 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 

 enacting legislation which is unlikely to end the conflict over 

 the Tongass National Forest. The proposal not only reflects a 

 resolution 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. 



