442 



Mr. PouLSON. There would be little reason for either mill to at- 

 tempt to continue operation, and every reason to sue for damages. I 

 find it extraordinary that neither the Mrazek nor the Wirth bill 

 addresses the issue of compensation, to which there is no doubt the 

 pulp companies would be entitled should either of these bills be en- 

 acted. I am not suggesting that either of these bills would be ac- 

 ceptable to the people of Southeast Alaska if there were compensa- 

 tion. 



I do suggest, however, that the reason the figure is not in the 

 bills is that it would grossly exceed the net annual cost of what the 

 enemies of these contracts call the Tongass subsidy until the con- 

 tracts expire and would put the lie to any claim that passage of 

 these bills would save money for the U.S. Treasury. 



There is a parallel situation in the country at the present time. 

 As senators, you will be called upon this year to approve legislation 

 that will cost upwards of $100 billion — that is billion with a B — to 

 honor the deposit insurance claims of depositors in failed, and in 

 may cases, fraudulently run, savings and loan institutions. The ra- 

 tionale is that the credibility of the United States in honoring its 

 obligations is at stake. I have yet to hear of anyone in public office 

 suggesting that the government not honor this obligation, despite 

 its astounding cost. 



I and thousands of my townspeople. Senators, have a much more 

 modest claim against the full faith and credit of the United States, 

 and that is that the spirit of the 50-year contracts that underpin 

 our economy continue to be honored. 



Senator Wirth. Senator Murkowski? 



Senator Murkowski. Thank you, Mr. Chairman. I want to com- 

 pliment the witnesses. I do not have any particular questions. I 

 think it was covered in their testimony, the obligations that the 

 Federal Government has. 



I would like to compliment Elaine Sunde for the many courtesies 

 that she extended our committee in making arrangements and 

 hotels and various other things She, of course, works full time and 

 has been very, very hospitable, as have all the folks in Sitka. 



Senator Burns. I would just reiterate, I thank you very much for 

 making those arrangements. 



I am getting a signal from this panel that your main concern is 

 long-term contracts, is that correct? In other words, it is the main 

 problem. You do not wish to lock up these areas but you object to 

 the contracts and the attitude that goes with those contracts, is 

 that right? 



[Affirmative response.] 



Senator Burns. Thank you very much. 



Senator Wirth. Thank you very much, and thank you all very 

 much. Elaine, thank you again for all of your help. We appreciate 

 you all being here. 



We have been going now for three hours, and why don't we take 

 a 10-minute stretch. I will ask our Panel 3 if they will prepare to 

 join us at 11:10, and we will proceed at that point. 



Thank you. 



[Recess.] 



Senator Wirth. If the committee would come back to order. The 

 third panel this morning is a very distinguished group of Alaskans, 



