of the present landowners, for access to the timber depends upon their attitude as much as upon access roads.

I would not support any measure which would override the wishes of the landowners and the present market operators in the area, but I am firmly convinced that through this bill under consideration we can create conditions which will stimulate the expansion of the currently profitable timber operations in the Appalachian region of Georgia.

The entire Appalachian area needs improved health facilities to make the area more inviting for workers and investors. We need mineral resource studies to locate deposits for exploitation. We need to improve open land for grazing and for protection of its productive capabilities.

Many areas of the Nation are in critical need of wholesome water. We now have water in abundance in the Appalachian region, but we must take steps now to protect the quality of that water.

Appalachia needs improved vocational education facilities to help its residents-current and future-to increase their productivity.

We in Georgia pledge to continue our present efforts in the Appalachian area, and we will expand our assistance as the opportunities arise. State initiative was behind this program now under consideration, and through it I believe that the States want to be true partners in the growth of the region.

I am sure that the other Governors of the Appalachian States share my conviction that this program will become the Nation's outstanding example of local-State-Federal cooperation.

I am concerned that the bill under consideration does not make provision for a full-time State representative, as recommended by the Systems Development Corp. and the Conference of Appalachian Governors' staff. A true partnership is lacking when two full-time highly capable Federal executives are assigned to work with 11 part-time State representatives led by an also part-time State cochairman.

In Georgia we have found a network of area planning and development commissions to be remarkably effective. These multicounty organizations allow local communities to join together in economic surveys and to initiate their own plans for economic development, and they also initiate their own plans for a development. The State matches funds and provides assistance in planning.

I might point out we have to have a minimum of five counties. They have to have a full-time executive director. This money that is raised for planning is on a match basis of 50-percent State funds, 50percent local funds. We in Georgia have pioneered in this program and in Georgia we have had this program for almost 6 years.

Georgia has concentrated its efforts in the Appalachian counties. Almost 65 percent of the $390,000 that Georgia has put into our 16 development commissions since 1961 has gone to the 3 commissions in our Appalachian area. Our budget for the next biennium allocates almost $1 million for those area development organizations. We are making, and will continue to make, strong efforts to help ourselves, but the regional problem cannot be solved until a regionwide attack is carried out.

I am convinced that our Georgia program is now one of the finest examples in the country of State and local cooperation for economic

development. With the passage of the Economic Opportunity Act of 1965, these area commissions broadened their perspective and have been invaluable in setting up programs under that act. They will be of similar assistance in carrying out the programs of the Appalachian Regional Development Act of 1965.

I urge the committee to take care that the "human resources development" program now underway under the Economic Opportunity Act be closely coordinated with the Appalachian program, for human resources development is an essential part of regional development.

Our Appalachian area, which is filled with natural resources, cannot benefit our Nation and mankind until we have trained men who can dedicate themselves with skill and enthusiasm to the development of those resources.

The wealth of our Nation is based on the increased productivity of the individual. The nonproductive are a drain on the economy—a drain which this bill is designed to eliminate.

The Appalachian program and the Economic Opportunity Act of 1964 are pioneer efforts in expanding the wealth of the Nation. The entire Nation not only will benefit from the increased productivity of the Appalachian region, but also the findings of the combined programs will show us sound approaches to the further development of other regions of the country.

The Appalachian and Economic Opportunity programs are wise investments, not wealth-consuming expenditures. They are businesslike approaches which will bring rich returns to both the present and future inhabitants of Appalachia and of the United States as a whole. I urge that this committee and the Congress complete the action begun last year and pass the Appalachian Regional Development Act of 1965.

The people of Appalachia are waiting, not in idleness, but with the confidence that their current efforts will be reinforced by the determination of the whole Nation.

The days of our reform have not passed and surely our affluent America can afford to eliminate the scourge of poverty from those citizens too long neglected, too long forgotten in the mountains of Appalachia.

Thank you, Mr. Chairman. Those are my remarks as far as this part of the presentation is concerned.

Senator RANDOLPH. Thank you, Governor Sanders. You have called our attention to the need for a representative of all the States on the proposed commission. It has been our thinking that there is the authority within the States to select such a person or persons, and this individual would come from among your own representatives, as it were, and would be paid by the Staes at a level they would establish. Now, is it your feeling that we must provide in the bill not only authority, but language that would make this office, as you say, full time rather than part time?

Governor SANDERS. Mr. Chairman, I believe, and I think I speak for the States that are in this particular region, that we certainly have no reason not to expect to pay for a State representative on the State level to coordinate and to implement this program, but we feel that where you have Federal executives assigned to the program then certainly these men are going to be full time, capable, qualified people to do a job.

We think that there should be written into the bill provisions that would require on a State level full-time representatives so that we will have a true partnership in this particular program between the Federal, State, and local communities, and we won't have in some States perhaps part-time individuals who are trying to do a fulltime job.

I know now that the bill does not spell out in any detail the mandatory provisions of this kind, but it has been our experience, as I pointed out to you in my testimony with reference to our local area of planning commissions, that the finest thing that we did on a State level was require the counties to employ a full-time executive director as a prerequisite to any matching or any participation of State funds. We have 16 of them now in Georgia.

Of course, as I said, we put most of the money into these planning commisisons in the Appalachian region of our State, but they have proven to be invaluable. They have proven to be the difference between a community actually falling behind or being able to keep abreast of the times.

Senator RANDOLPH. Thank you, Governor.

Senator Muskie?

Senator MUSKIE. Governor, what is the economic past of your area? Is it coal mining?

Governor SANDERS. No, sir. The past of our Appalachian region primarily is not coal mining. This region of Georgia is primarily a mountainous region in which the people have had very little opportunity to develop any particular trade or any particular occupa tion, Senator. Most of them have actually made their living from some type of farming.

Actually, there has been very little industrial opportunity of any kind in the area. Some of them have actually made their living from such things as the tourist trade that might come through the area to see the beautiful mountains. There are other people in Georgia that will tell you that some have made a right fair living off of taking some of the corn crops and turning it into other items that they sell in the mountains, but this has been somewhat in the past in this area. Senator MUSKIE. So it has always been an undeveloped area? Governor SANDERS. It has always been a relatively undeveloped area because of the accessibility to it. We have done a great deal in recent years in providing some roads and opening up the area. We have made a tremendous effort in Georgia to stimulate and improve our tourist industry and we have been able in recent years to bring many new people into this area so that these people would have a greater opportunity for some economic livelihood.

I might point out that we do have a project in this area where we are trying to develop in our university a tourist recreation center in which we would take the people as they now live in the area and teach them to utilize their own natural trades and skills and to develop the things that they can do through this type of life that they have lived for so many years and be able to market these things in a very fine economic way. This has been a very fine project.

We have not at this point been able to completely finance it, but Dr. Hugh Masters, who came to us from the Kellogg Foundation, and who developed the adult education continuing program in

Georgia, is a man who has been spearheading this particular project. We are hopeful that this will bear fruit in the near future.

Senator MUSKIE. Do you see prospects for industrial growth? Governor SANDERS. Yes; I do. I see prospects for industrial growth if this bill is passed. These people in Georgia in the 35 counties of our State, or close to 700,000 people, these people are wonderful people. In fact, so far as their willingness to work and their willingness to do a job, I think perhaps they represent the finest of their kind in our State, but they have not had the opportunity.

I think that with the access roads, with some help in the forest resources that we have in that area, that we will be able to take a group of people in my State that have wanted for years and years to do the things that other people have an opportunity to do, but who have never had that opportunity.

I think this really would be just like opening a door for them and giving them a chance to actually come out of the darkness into the light and compete with other people of our Nation and the other people of our State.

Senator MUSKIE. What kinds of industries do you see as possibilities?

Governor SANDERS. Well, I think a lot of industries. I think industries that would, for instance, develop wood products. We have an abundance of timber in that area. I think there are many industries. In fact, I talked with a friend of mine a couple of weeks ago who said if this bill were passed he very seriously would consider going in with the legislation that would be made available, building a plant and perhaps manufacturing these wooden pads that you ship almost everything in the country on today, or some type of a wooden pad. He said this was a fine industrial opportunity that he felt the people in this area could step into immediately and develop phenomenal skill and proceed to provide some industrial opportunities and jobs.

I think in this, Georgia would have a great opportunity to go in with our wood products and develop this particular area of industry that today we are not able to do in that area.

Senator MUSKIE. What kinds of incentives does the State of Georgia provide now for industrial development?

Governor SANDERS. We provide many things. We have, of course, tax exemptions on our industrial equipment. Anyone who would come and build a plant, actually locate in the State, the equipment that they acutally use and the capital inducement is exempt for sales and use tax purposes. This, too, applies to existing plants in our State. We have a very competitive and a very fine tax structure in our State as far as the ad valorem taxation is concerned. We have 26 areas of vocational trade schools we have built in which we are actually building curriculums that would fit the needs of those people who would come to the State of Georgia and would like to develop certain types of skills in that particular type of industrial develop

ment.

So we have gone as far as we know how to go to try to provide a kind of climate, provide the type of labor. In addition to that, I might say this not a legislative matter, but we find that the people who have located in our State tell us that so far as the number of hours and the interest that the employees have in their jobs, the

loyalty that they have to the company, and the efficiency with which they are able to work and the pride that they take in the productivity of the company, that it is the highest anywhere in the country.

As a result, we have been able to capture a great deal of new industry and we hope, Senator, that we will continue.

Senator MUSKIE. Has the Area Redevelopment Act been of any assistance in these areas?

Governor SANDERS. Yes, sir; it has helped us in many ways.
Senator MUSKIE. Thank you.

Senator RANDOLPH. Senator Cooper?

Senator COOPER. Governor Sanders, we are, of course, concerned that the States might diminish their interest because of the fact that the Federal Government would be represented full time and the States might not. I raised this question several times with Governors, and also with Mr. Sweeney.

It seems to me this a matter for the States. Why can't Georgia— why can't the other States which are included in this program, appoint their full-time representatives? Why can't these full-time representatives coordinate their activities and secure the best possibe use of this program?

Governor SANDERS. Senator, I think we can. My only concern is I felt like, as a matter of program, the procedure that I am sure we all follow in this program, I think it would be better in the course of the legislation simply to provide that there would a full-time representative. I find that in government and in so many other areas of activity that where you leave things purely and simply on a voluntary basis, and you leave it simply on the basis of part-time, perhaps, operations, that too often they wind up in a part-time category and this is the concern that I have.

I just simply felt that in the bill, rather than leave it simply voluntary, since we have done this same thing on a State level with our area planning commission, that we ought to spell it out that there ought to be full-time representatives, to provide that the State pay these representatives in full. If you are going to have full-time people working on the Federal level, I think we ought to have fulltime people on the State level.

Senator COOPER. I am going to say again, I think that is the responsibility of the States. I think it would be very sad and unfortunate if this bill should be passed with all of the benefits on behalf of which the Governors have testified, and then the States did not assume their part of the responsibility to see that they have full-time personnel working on it.

We hear often about the Federal Government's power, and we are urged, and want, to let the States have their responsibility. This is the simplest responsibility they could undertake, that is to see that they have adequate personnel to carry out and watch over the program. I think you have made a very good statement and I think it is well to have raised this question. I have been raising it, but I think, again, it would be a tragedy if the States do not do their part at least as far as personnel and coordination is concerned.

Governor SANDERS. Senator, I can only answer for one part. We will have it whether you make it part time, full time, or mandatory. Senator COOPER. We hope it will be full time.