COMPLEX. IT IS AN IMPORTANT SECTOR OF MY STATE'S ECONOMY AND THE ECONOMY OF THE PACIFIC NORTHWEST. WE ARE ALL CONCERNED ABOUT THE PEOPLE WHOSE LIVES ARE AFFECTED BY THE TIMBER SUPPLY CRUNCH. BUT, LET'S NOT MAKE A FATAL ERROR BY CUTTING OFF IMPORTANT MARKETS FOR SHORT TERM FEEL GOOD SOLUTIONS, WHICH COST US MORE THAN THEY SAVE US.

Senator SARBANES. Thank you very much, Congressman Miller. Congresswoman Unsoeld.

STATEMENT OF JOLENE UNSOELD, MEMBER, U.S. HOUSE REPRESENTATIVES FROM THE STATE OF WASHINGTON, THIRD DISTRICT

Representative UNSOELD. Thank you very much, Mr. Chairman, and thank you for the opportunity to allow us to express our eagerness on the topic.

Senator SARBANES. It's our pleasure to have you here.

Representative UNSOELD. I represent Southwest Washington, one of the most timber-intensive areas in the country. I'm also known as something of an environmentalist. And from both an economic and environmental perspective, it grieves me to see what the unrestricted export of raw logs has done to the Northwest.

In the areas of forest products, the Northwest has been relegated virtually to the status of a colony, exporting low-value raw materials and importing high value finished product.

We're now, the United States is the only major exporter of highquality softwood logs in the world. If my home State of Washington were a separate nation, we would be the second largest exporter of raw logs in the world. Log exports from Washington have grown from less than 10 percent of the timber harvest in 1964 to about 40 percent of the total today.

Canada, as has been mentioned, and a dozen other countries, have either banned or restricted this type of export without any loss to their export of finished products.

In fact, an increase.

Now, Mr. Chairman, with two exceptions, the annual ban on the export of Federal logs and the ban on unprocessed Western Red Cedar, we have allowed this destructive reverse colonization to continue unabated.

Although there's been a ban on the export of logs from Federal land since 1973 in the West, national forests in Washington contribute less than 20 percent of the total harvest. In Washington, two-thirds of the harvest from State lands is exported, and 80 percent of that is old growth.

Absent any Congressional authorization, the State is powerless to slow the export of logs from its own land.

All three of the elements of Senator Packwood's legislative package, I support: Authorizing the States to restrict export of logs from their own land, making permanent the ban on the export of Federal logs and the closing of the substitution loophole.

In anticipation of some of the criticisms that I've heard from my colleague from Washington, I am also offering legislation that will set a uniform Federal policy banning the export of the West's most precious resources-our old growth trees from our remaining ancient forests.

My legislation is patterned after the successful ban on the export of unprocessed Western Red Cedar from public lands, enacted by my predecessor, Representative Don Bonker.

My legislation would extend the ban of old growth logs to old growth logs over 24 inches in diameter. This is only one variation

on a theme that is to be offered by Northwest Members, which demonstrates our seriousness in dealing with the long-term timber supply issue.

Now, I also believe we must promote the export of finished wood products. For years, we've been behind Canada and we could greatly improve our trade imbalance with the Pacific Rim through such promotion-not trying to substitute one kind of job for another. But, we should get the greatest value from that resource before we export it.

Mr. Chairman, I would like to perhaps anticipate a couple of other questions or comments.

When the Trade Act was adopted by Congress, what was given with one hand was taken away with the other. And even though the Secretary of Commerce has before it a petition asking for a restriction on this exporting of raw resources, unless Congress were to act in 60 days, the administration is powerless to have a permanent correction to that situation.

Also, we have a precedent for this kind of action. We, the Northwest, are a resource-based economy. Timber and fish are our major resources. Now, a few years ago, the foreign fishing industry dominated the harvesting and processing of Northwest fish. Under the Magnuson Act, we Americanized the fishery. We now have a billion dollar industry, much of it in my colleague's District, and no one has said that wasn't a good trade policy.

Presentation by my Governor from the State of Washington will be presented in a later panel, but, I would like to point out that the Governors of Washington have traditionally opposed export restriction. Now this is a major departure from those past views, to say that we ought to be to have a better control over that precious resource, our old growth logs.

I would very much urge this Committee to take a hard look at the protection of our old growth resources and our ability to be able to export finished products and keep those jobs at home. Thank you, Mr. Chairman.

[The complete prepared statement of Representative Unsoeld follows:]

STATEMENT OF REP. JOLENE UNSOELD (WA)

IN SUPPORT OF LEGISLATION TO RESTRICT LOG EXPORTS

BEFORE THE

SENATE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS NOVEMBER 7, 1989

Mr. Chairman, I represent southwest Washington, one of the most timber-intensive areas in the country. I am also known as something of an environmentalist. From both an economic and environmental perspective, it grieves me to see what the unrestricted export of raw logs has done to the Northwest.

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In the area of forest products, the Northwest has been relegated to the status of a colony exporting low value raw materials and importing high value finished products.

The U.S. is now the only major exporter of high quality softwood logs in the world. If my home state of Washington were a separate country, it would be the second largest exporter of raw logs in the world. Log exports from Washington grew from less than 10 percent of the timber harvest in 1964 to about 40 percent of the total.

We are virtually alone among timber producing nations in allowing our precious forest resources, and the processing jobs that go with them, to be exploited by others. Canada and a dozen other countries have either banned or greatly restricted log exports to conserve their timber for domestic processing.

With two exceptions

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the annual ban on the export of federal logs, and the ban on the export of unprocessed western red cedar -we have allowed this destructive reverse colonialism to continue unabated.

Largely as a result of the booming log export trade, the Northwest is facing the most serious log shortage in its history. Dozens of mills are shutting down because they cannot outbid export brokers for scarce timber. And as our remaining unprotected old growth forests dwindle, it makes no sense to allow the unrestricted and unsustainable export of raw logs from our public forests.

Although there has been a ban on the export of logs from federal lands in the west since 1973, national forests in Washington contribute less than 20 percent of the total harvest. In Washington, two-thirds of the harvest from state lands is exported, and 80 percent of that is old growth. Absent congressional authorization, the state is powerless to slow the export of logs cut from its own lands.

Private landowners in Washington, who contribute over 60 percent of the timber harvest, find it difficult to resist the higher prices commanded by the export market. To make matters worse, the booming export market has spurred overcutting on private lands, creating a 'timber gap' that will reduce the timber supply for decades.

This leaves the small and independent sawmills, which lack their own timber lands, almost entirely dependent on the national forests. That is why the controversy over the spotted owl, which has greatly reduced the timber output of the Northwest's national forests, has so devastated the economies of many timber-based communities.

Mr. Chairman, we in the Northwest have the best forests and the most efficient mills in the world computerized mills ready, willing, and able to cut to metric dimensions or other specifications.

We are selling raw logs to Japan and other Pacific Rim trading partners instead of lumber, paper, and plywood, in large part, because there are barriers to free trade in finished products. For example, Japan has an escalating tariff structure for finished wood