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EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE budget WASHINGTON, D.C. 20503 April 8, 1969 OFFICE OF THE DIRECTOR MEMORANDUM FOR THE CABINET COMMITTEE ON ECONOMIC POLICY SUBJECT: Task Force on Softwood Lumber and Plywood -- Preliminary Report The Task Force on softwood lumber and plywood, which was appointed by the Cabinet Committee on March 7, has met three times. A number of actions designed to ease the immediate situation have been taken and are already showing some effect. Over the longer range, it has become increasingly clear that the demand for softwood lumber and plywood will grow very rapidly and that fundamental programs will have to be initiated if overall demands -- especially those related to the housing program -- are to be met. (1) The Short-Range Picture At the initiative of the Task Force the following actions designed to ease the pressures on the market have been taken: The Interstate Commerce Commission has issued a number of orders to speed boxcar turnaround, and significant improvement in boxcar availability has been noted. The Assistant Secretary of Defense has issued orders to the Services and to DSA to limit procurement to that consistent with essential military requirements, to stretch out deliveries wherever economically feasible, and to determine and specify substitute materials wherever practical and economically valid. The Department of State has engaged in conversations with the Japanese and has elicited assurances that exports to Japan during the first half of 1969 would be kept to a level 15 percent under the corresponding period of last year. Similar explorations regarding exports for the second half of the year are in progress.