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Governor Knowles' Letter to President Bush

November 1, 2001

The President
The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Dear Mr. President:

First, let me express my deep appreciation for your leadership at this difficult moment in the history of the United States as the nation responds to the enormous security and economic concerns growing out of the terrorist incidents of September 11 and the recent threat from acts of bioterrorism.

Alaskans shared the nation's sense of horror and grief at the terrorist attacks on the World Trade Center towers and the Pentagon and generously offered their prayers, blood, and money in response. Alaskans pitched in to assist in the recovery effort, sending disaster response managers and medical personnel to New York and stationing Alaska National Guard units in homeland defense missions and serving the nation in support of Operation Enduring Freedom. Alaska public safety and health officials have also responded quickly to protect the public following threats of possible anthrax contamination.

As you lead our nation through this difficult time, I also appreciate your call for the nation to return to work and it is in that spirit that I write today. I am deeply concerned about the severe hardships currently inflicted upon the residents of Western Alaska villages that are dependent on the commercial salmon fishery as the mainstay of jobs and economy in their communities and am writing for your assistance.

For over 100 years, residents of the Eastern Aleutian Islands, Bristol Bay, Yukon Kuskokwim Delta, and Norton Sound have been dependent on the commercial salmon fishery for their incomes. These residents are now threatened by forces that are beyond their control or that of the State of Alaska: changing world salmon markets that have resulted in unprecedented low salmon prices.

The situation is so severe that I declared an economic disaster for these rural communities where there are few economic alternatives. Many rural residents live below the federal poverty level and many depend on commercial fishing income just to maintain a subsistence lifestyle. The lack of cash hits them particularly hard since winters are far more severe, and basic living expenses such as heating, utilities, and food are far more costly than in most of the rest of the United States.

The reason for this economic disaster is well known. The rapid growth in production of farmed salmon in foreign nations such as Chile and Norway has displaced traditional markets for Alaska wild salmon in recent years. In addition to lost market share, the glut of farmed fish on the world market has undercut prices paid to fishermen by two-thirds in the past few years. Market experts believe this fundamental shift in the world salmon market is not likely to change. Most fishermen accept this and are looking at ways to restructure their industry to remain competitive.

Much like other states that rely on agriculture as a mainstay of their economies, Alaska must protect our salmon resources and create stronger markets for our wild salmon. Alaska's salmon is as important to our health and economy as land crops are to agricultural states. Federal assistance with our efforts would be comparable to drought aid, pricing supports, and other assistance which agricultural states have received for many years. Since you went through a similar situation as Governor when you had to declare a partial agricultural disaster in 1996 and one for the entire state in 1998, I am sure you can identify with our concerns and our need for federal assistance.

I have asked my commissioners of Fish and Game, Labor and Workforce Development, and Community and Economic Development to identify the extent of the fisheries disaster, the impacts on local residents, and the ways in which we can address the regime shift. They will be coordinating with local governments, tribal entities, and nonprofits in these regions.

I respectfully request your support for a coordinated federal response to marshal the resources of relevant federal agencies within their programmatic authorities. In addition to long-term aid for economic diversification, I am interested in discussing with appropriate federal agencies the possibility of programs for vessel and permit buyback and debt restructuring for our Alaska fishermen.

Senator Stevens has been of great assistance with past fisheries disasters. State and federal money allocated for the previous disaster was well used to help families in need, boost economic diversification, and provide needed fisheries research. However, that disaster qualified for Magnuson-Stevens aid since it was a failure in the fish runs themselves. This year's problem is caused instead by fundamental changes in the market and pricing for wild salmon and will require new approaches.

I would greatly appreciate your support of these efforts and look forward to working closely with your administration to seek appropriate assistance. As soon as we have additional data, I will forward it to you and the relevant federal agencies.

Sincerely,

Tony Knowles
Governor

cc: The Honorable Ted Stevens
The Honorable Frank Murkowski
The Honorable Don Young
White House Intergovernmental Affairs
Donald Evans, Secretary of Commerce
Gale A. Norton, Secretary of the Interior
Joe Allbaugh, Director of FEMA
Hector V. Barreto, Administrator of Small Business Administration
Tommy Thompson, Secretary of Health and Human Services
Mel Martinez, Secretary of Housing and Urban Development
Elaine L.Chao, Secretary of Labor
Ann M. Veneman Secretary of Agriculture

Renew Hope Joint Information Center · 550 W. 7th Ave, Suite 1770 · Anchorage, AK 99501 · 907-269-4540
Norton Sound Region (907) 443-2274
· Yukon Region (907) 452-7126 · Kuskokwim Region (907) 543-3475

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