Governmenf Reporf on Industry Problems Draws Praise of NLMA

The National Lumber Manufacturers Association has conveyed to Commerce Secretary Luther Hodges the industry's "sincere appreciation" for the efforts of Commerce officials to find solutions to the several problems presently confronting lumbermen.

The expression of thanks was contained in a letter from NLMA Executive Vice President Mortimer B. Doyle, commenting on a recent l80O-word ooStatement on the Lumber Problem," prepared by the Business and Defense Services Administration, an agency under Hodges' jurisdiction.

Doyle applauded the BDSA statement as "an extremely well-prepared summary of many of the problems confronting our industry." Even more important, he said, it "sets out in very readable form the very specific actions taken by this Administration to assist domestic lumber producers to overcome these problems." The association spokesman added:

"Much remains to be done in order to restore full health and vigor to our industry, but it is appropriate, particularly at this time of year, to tender our sincere appreciation for the efforts on the part of many men in your Department to help find solutions to our problems that are in the public interest."

Doyle singled out for special praise BDSA Administrator Daniel L. Goldv; Thomas C. Mason. director of the Forest Products Division of BDSA; and Assistant Secretary of Commerce for International Afrairs Jack N. Behrman.

Elforts to lrnprooe UnlaoorobleConditions

Doyle also wrote to Goldy advising him that the lumber association plans to give "wide circulation" to BDSA's "well-bal. anced, concise statement of the situation."

The BDSA report attributed present difficulties of the lumber industry to "a complex of factors related to industry operations, governmental policies and regulations, technological changes, and domestic and international economic developments."

A major factor, the agency said, has been "the substantial increase in softwood lumber imports resulting from the competitive advantages of Canadian producers in raw materials, production and shipping costs and the devaluation of Canadian currency."

After identifying specific causes of the industry's difliculties, the report reviewed st€ps taken by the Administration to ease the situation.

President Kennedy, the statement noted, has asked the Tarifi Commission to expedite its current investigation of whether imports have caused serious injury, or threaten to cause serious injury, to domestic producers. If the Tarifi Commission finds in favor of U. S. manufacturers, the President could restrict imports by increasing the duty, establishing a quota or developing "orderly marketing agreements" with supplying countries, the report observed.

While awaiting the Tarifi Commission findings, BDSA reported, Mr. Kennedy has asked the Justice Department to advise him whether" in the current lumber import controversy, he could legally invoke a law (Section 22 oI the Agricultural Marketing Act of f937) which, under certain conditions, empowers the Chief Executive to curb imports of agricultural commodities.

The report also recalls that last July the President announced a six-point program intended to assist the domestic lumber industry. In this connection BDSA reported the following developments: o The U. S. and Canada are establishing "an ad hoc joint expert working group of government officials" to examine such issues as the recent West Coast timber blowdown, long-term supply and demand prospects for North American timber resources, wood utilization and market development. o The Administration asked Congress for additional funds for forest development roads and trails, to speed harvesting of National Forest timber-and the lawmakers responded by authorizing "substantial increases" for fiscal 1963.1964. and 1965. o The Interior Department increased by 150 million board feet the allowable cut oI timber on lands managed by Interior. Similarly, the Agriculture Deparhent increased by 547 million board feet the allowable cut in the 42 National Forests in the West Coast and Inland Empire states where timber demand is critical.

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