Portland Observer, May 11. 1983 Section II Page 3 Business Notes 428.1 m illion w aa appropriated by Congraaa laat m onth for O re g o n and W ash in g to n N a tio n a l Forests. T h e P ac ific N o rth w est Region o f the U S D A -F o rest Service is planning to issue contracts for em ploym ent on n a tu ra l resource projects in v o lvin g all 19 N a tio n a l Forests in Oregon and Washington. C o n trac t expenditures w ill be planned fo r road m aintenance, tra il maintenance, site preparation for reforestation, timber stand im prove­ ment, and campground water and sewer system improvements. Most o f the funds w ill be used to contract w ork to private firms and individuals and that there will be very little hiring o f people by the Forest Service. Interesting development in w orld trade — C h in a la a m a r k e t w it h tre m e n d o u s p o te n tia l for western U .S. forest products producers. It is also being eyed as a m arket by other countries. The Soviet U n ion just signed an agreement to sell China one m illion cubic meters (253 m illion board feet) o f logs each year beginning in 1983. The three-to-five year deal marked the first timber trade between the two countries since I960. We're selling OREGON bv Charles G ood mac her O reg o n should le i lim b e r and agriculture and other declining in ­ dustries and displaced w orkers flo u n d e r. In s tea d , special tax e x ­ penditures; reduction o f corporate income taxes; expensive promotion­ al tours by government officials and advertising campaigns in Asia; and expansion o f c o m p u te r and elec­ tronics training at all levels o f edu­ cation should be used to "a ttrac t** large high techn o lo g y firm s and to u ris m to O reg o n . T h is is the message being p ro no u nced loud and clear by m a jo r business and government leaders alike. MARKETING OREGON A conference in P o rtla n d this M o n d a y and T uesd ay e n title d " M a rk e tin g Conference and M a n ­ pow er D e ve lo p m en t fo r H ig h Tech n olo gy" emphasized the need to d evelop a " h ig h technology w orkforce.” The Oregon Economic Development Departm ent co-spon­ sored and organized the conference. D r . C lif f o r d S m ith o f B echtel, In c . sum m arized the conference focus during his luncheon speech to the several hun d red business and government officials. Smith called for “ progressive cooperation” be- C o n s tru c tio n hirin g fell 600 s h o rt o f the normal seasonal upswing in M arch. The wet weather was undoubtedly a contributing factor. Never­ theless, co n stru ctio n em ploym ent has a long way to go to erase the enormous employment deficit imposed by the recession. ____ tween the private and public sectors. Daniel Terpack o f Hewlett-Packard and O regon C han cello r o f Higher Education W illiam C . " B u d " Davis called for more public spending for high technology training in order to meet the m anpow er needs o f high technology firms. State Senator Jim G ard n er (D -P o rtla n d ) added that the state is doubling its commitment to this purpose by p ro vid in g SI m illion in matching funds for com­ puter education. C a llin g fo r g reater e ffo rts to "s e ll** O regon were M a y o r F ran k Ivancie and Governor Victor Atiyeh along w ith c o rp o ra te executives fro m P o rtla n d G e n e ra l E le c tric , F lo a tin g P o in t System s, U .S . N a tio n a l Bank, W acker Siltron ic, various public relations firm s and others. SALEM TESTIMONY T h e " s e llin g ” comm enced w ith testim ony M a y 2 b efo re the Joint Legislative Committee on Trade and Econom ic Development by Ivancie and eight others. M ayor Ivancie de­ fended his many recent trips abroad by declaring, "T h e only way to keep Oregon in the minds o f prospective new industries was by m aking continuous trips to those states and c o u n trie s ." Ivancie noted that no Japanese industrial firms are locat­ ed in O regon w hile C a lifo rn ia has IOS plants; Alaska 34; G eorgia 21; and so on. H e felt that the reason Oregon has none is that "th e state is not well know n.” C .N . W in n in g s ta d o f F lo a tin g Point Systems noted the decline o f the wood and agricultural products industries and growth o f high tech­ n olo gy. " T h e q u e s tio n ," said W in ningstad, " is how to go about getting and retaining high technolo­ gy companies." Winningstad’s con­ clusion; " s im p le — target the biggies.” Moving to specifics, Winningstad com m ented on O regon actions to resolve w hat he sees as m a jo r obstacles to grow th. "O re g o n has fixed the land availability problem; the p erm it and higher ed u catio n problems are being settled now; the only thing left to remedy is the tax situation and that is in the w orks, to o .” CORPORATE TAXATION Dr. M ai Russ o f Wacker Siltronics launched an a tta ck on O reg o n 's existing m ethod o f ca lc u la tin g c o rp o ra te incom e tax lia b ility . W acker, said Russ, should only be taxed on incom e made d irec tly in O regon and not on w o rld w id e or nationwide income. (N o te: Oregon uses the " U n i t a r y " concept fo r calculating corporate income to be taxed. This takes in to account the parent company's w orldw ide sales, property and payroll. Basically, the unitary worldw ide method rests on the assum ption th at a d o lla r o f p ro p e rty , p a y ro ll or sales w ill produce about the same net income wherever it is expended.) C liffo r d A lte rm a n o f K e ll, A lte rm a n and Runstein suggested a 10-year " o p t io n " on the u n itary m ethod. G len U lm e r o f A r th u r Anderson and Co. commented that Japanese companies are urging a boycott o f C a lifo rn ia because o f that s ta le’ s use o f a unitary system. ( O f the nineteen legislators present, not one raised the question o f why 103 Japanese plants located in California if the unitary system is indeed such an obstacle.) State R epresentative D o n n a Z a jo n c (R -S a le m ) asked i f a five year moratorium on the unitary tax w ould be h e lp fu l. Iva n c ie replied that most companies needed more than five years but " it was a step in the right d ire c tio n ." W inningstad added that in a d d itio n to the tax fairness question, Japanese corpo­ rations have " a very great concern about disclosure o f inform ation that they did not want disclosed." The Netlonel Urben Leegue, N ew York, received 4600,000 fo r technical assistance and training to League affilia te offices through the country, with the objective o f supporting and improving operations and management and liaison to government agencies. The grant fro m the U .S. Department o f Labor was one o f three totaling $16 million. The locel D ep e rtm en t of Housing and Urban D evelop m en t office Friday announced a reduction of Interest rates on Its home mortgagee. The rate dropped to 11 Vi percent from 12 percent on stan­ dard 30 year Federal Housing A d m in istratio n insured loans. Rates on graduated payment mortgages dropped to I I W percent, m u lti-fa m ily home mortgages dropped to 12Vi percent and interim construction loan rates slid to 12 ‘4 percent from 14 percent. ____ ____ By December, 1982, there were nearly 9 percent more managers end administrators In the American economy than In January. 1981. according to the Bureau o f L a b o r Statistics. This is in sharp contrast to the nearly I percent decline in overall employment and the 12 percent drop in blue-collar jobs during the same period. " A f t e r all the discussion about the squeeze on m iddle management, the striking thing is that management has grown at a ll," said Samuel Ehrcnhalt, regional commissioner o f the Bureau o f Labor Statistics for the New Y o rk region. " I t tells us som ething about the contrasting economic w orlds we are moving to , where some groups are going up sharply while others are plum m eting." The D e p a rtm e n t o f T ra n a p o rta tio n 'a M a r itim e A d m ln ia tra tlo n w ill eatab liah a P o rtlan d field o ffic e in the coming months. Portland has been served by the Seattle o ffic e. The mission o f the o ffic e is to promote U .S. ports and the merchant marine through port development and marketing programs. Seven Oregon cities share jobs bill money Oregon communities will share $12,244 million in Community Development Block G rant (C D B G ) funds as part o f the emergency jobs bill recently signed into law by President Reagan, it was announced today by Secretary o f Housing and Urban Development Samuel R. Pierce, Jr. The funds are Final allocations for the state’s large and small communities, and include $8.38 million for metropolitan cities and urban counties entitled to funds, and $3,664 million for smaller com­ munities. " W e want to help men and women who may be in need o f em­ ploym ent,” Secretary Pierce said, "a n d we think cities can do this by hastening planned construction or spurring economic development with these C D B G funds." In all, $4.6 billion — including SI billion C D B G funds — is aimed at communities to provide hum anitari­ an assistance to individuals and jo b ­ less persons. The Oregon share of funds modified the original C D B G form ula, to take into account both current unemployment and long­ term unemployment rates statewide. In Oregon, 7 cities and urban counties are entitled to funds based on the existing law, and receive $16.308 million annually under the program. The state's smaller cities also share $11,081 million annually. The funds announced today are new appropriations awarded in addition to the annual programs. Both entitlement communities and states must meet normal submission requirements for receipt Washington environmentalists won a victory this week when the Northern T ie r Pipeline C om pany said it w ill abandon plans fo r a controversial 1,490 mile pipeline to move Alaskan crude oil from Washington state to the midwest. The company said this week that for PENNIES A GALLON Argenion Bacteriostatic Water Treatment Unit Designed to provide: Eugene M edford Portland Salem Springfield Clackamas County Washington County 412.244,000 713.000 246,000 4,680,000 313,000 312,000 1,077,000 1,033,000 Bellevue Bellingham Bremerton Everett Kennewick Olympia Pasco Richland Seattle Spokane Tacoma Yakima King County Pierce County Snohomish County it w ill not re ap p ly to the S tate o f Washington for a perm it. That per­ mit application was denied in A pril o f I9 8 2 fo r the p ip eline's firs t leg and a d eep -w ate r pier at P o rt Angeles. A special Washington State commission applied the same stan­ dards the state uses for siting nuclear pow er plants and recom m ended denial o f a construction permit. State en viro n m e n ta lists opposed the supertanker port which would bring the hazards o f o il sp ills, fire and explosion. T he State also objected to the fact that, once completed, the pipeline and port would bring few jobs to Washington. N o rth e rn T ie r spent a b o u t $5 m illio n stu d ying its o p tio n s and decided not to make another attempt to receive necessary permits. It had o b ta in ed p erm its fo r the p ip elin e from Idaho, Montana, North Dakota, M innesota and the federal govern- •20,049.000 229,000 360,000 207.000 347,000 160,000 156,000 130,000 118.000 5,960,000 1,872,000 1,276,000 353,000 2,628.000 1,453.000 1,147,000 ment had given its approval. The decision leaves the future o f the company, which was formed for the sole purpose o f designing and constructing the proposed pipeline, in doubt. Its m ajor backers include G e tty O il C o m p a n y , U .S . Steel Corp., Westinghouse Electric Corp., B u rlin g to n N o rth e rn , In c ., and Farmers Union Central Exchange, a farm-supply cooperative. O N LY $149” RETAIL Sand orders with check or money order to: Trumbull & Sons Diet. P.O. Box 236 Boardman, OR 97818 (603)481-6311 13 and 14 at Portland State U niver­ sity S m ith C e n te r, w ill fea tu re representatives o f social w ork, local and state g o v e rn m e n t, vo lu n tee r agencies, the corporate sector, labor and the unemployed. T h e co nference is open to all interested persons at no cost to those who are unemployed. There is « -.1 * • M A IN O FFIC E: SW 5th & Washington Portland Oregon Telephone 2 2 4 4 4 4 4 5fl convenient offices throughout Oregon It’s the FAR WEST w ay SM