The main aspect of this study -was to analyze the changes which occurred in the British market between 1935 and the present. Changes have been manifold and have caused noteworthy fluctuations in the lumber export-import trade between British Columbia and the United Kingdom. The period under review was divided into five parts: pre-war (1936-1939), war (1940-1945), post-war (1946-1949), period after the devaluation of the pound sterling (1950-1952) and the present (1953-1954). Two additional chapters were included, one dealing with the future export trends, and the other treating briefly the historical growth of the lumber industry and its part in the provincial economy. A comparison was included of the mechanical and physical properties of Douglas fir, western hemlock, western red cedar and Sitka spruce and those of European whitewood and redwood. Housing activity in the United Kingdom was treated in detail throughout the thesis. The housing problem has been acute and will remain so in the next decade. Large quantities of softwood lumber are consumed in housing. Although the amount of lumber used per dwelling-unit decreased from 10-1/2 cubic metres to 7-1/2 cubic metres during the war, under the control system, it is expected to reach its former level on the anticipation that larger houses are to be built. During the pre-war period lumber exports from British Columbia increased remarkably, being larger by eightfold in 1936 than in 1931, and by twelvefold in 1939 than in 1931. The substantial housing program, preferential tariffs, trade promotion work and European Timber Exporters1 quota system, as well as British Columbia's lumber prices, contributed to the increased lumber exports to the United Kingdoms. During the war British Columbia's lumber played an important role in Great Britain. Total imports dropped to 25 percent of the prewar level and British Columbia supplied over fifty percent of them. The home production of softwood lumber increased about five times over pre-war level, reaching a peak in 1942 (344,000 standards). Timber control reduced consumption and controlled imports. The post-war reconstruction program in the United Kingdom caused heavy buying in British Columbia. In 1947, 31 percent of total British softwood lumber imports originated in this province. The dollar shortage in 1948 and 1949 forced the United Kingdom to decrease imports from British Columbia. The devaluation of the pound sterling made British Columbia's lumber expensive when comparing it with Russian and Scandinavian lumber. Increased prices and the inability to get lumber from Sweden and Finland after the outbreak of the Korean war, however, caused larger buying (about 400,000 standards) in British Columbia during 1951 and 1952. The present situation has been influenced by the decontrol of softwood lumber consumption in the United Kingdom which took place in November, 1953. The consumption is estimated to reach about 1,400,000 standards in 1954. An amount of 350,000 standards would be a fair share to be shipped from this province annually to the United Kingdom. A notable feature of the present is the willingness of Russia to export lumber (250,000 standards in 1954) to the United Kingdom. The import requirements of Great Britain are estimated to be 1,200,000 standards in I960 representing little more, than half of the pre-war level. They will have to be imported from outside Europe, mainly from Russia and British Columbia. Although this province is a source of high quality lumber, it is recommended that the British market be developed mainly for lower quality lumber by means of reasonable prices, and care in production and shipping. United Kingdom imports from British Columbia will depend upon its dollar purchasing power. This could be increased by two-way trade between Great Britain and Canada. During the period under review proportionally more and more western hemlock was shipped to Great Britain. The ratio between Douglas fir and western hemlock dropped from 1 to 7 of pre-war, to 1 to 4 in wartime and 1 to 2 in 1952. Since there is more mature western hemlock timber than Douglas fir on the coast from where the future exports are expected such a change in favour of western hemlock is an important achievement. / Forestry, Faculty of / Graduate

This paper reports upon an investigation conducted into the movement of softwood lumber from British Columbia to the United States during the years 1955 to 1962. The principal method used in the course of the study was an examination of the briefs and statements submitted to the United States Tariff Commission during hearings held in Washington, D.C, in October 1962. In order to keep the material within the context of current events, some space was devoted to a brief summary of pertinent political and economic occurances in both the United States and Canada during the last part of 1962 and the first half of 1963. Thereafter six chapters are devoted to comparisons between forests and extraction, conversion, and distribution costs in the Pacific Northwest of the United States and in the province of British Columbia. Basically the same type of forest is found in these two regions, but the utilization and development of the areas have been different, as have been the competitive factors which have arisen in the areas. Many of the pertinent data have been put into tabular form for easy reference. The penultimate chapter summarizes the briefs and statements submitted by the interested United States lumber dealers, shippers, and producers, and by the Council of Forest Industries of British Columbia, which represented the British Columbia lumber men, at the United States Tariff Commission hearings. The conclusions reached as a result of this investigation were (1) there is a shortage of domestic softwood lumber in the United States which can best be filled by British Columbia lumber imports, (2) British Columbia lumber producers have an advantage over Pacific Northwest producers with regard to stumpage costs, (3) British Columbia lumber producers have no advantage over Pacific Northwest producers with regard to conversion costs, (4) Distribution costs greatly favour British Columbia lumber producers with regard to water-borne lumber, and slightly favour American Pacific Northwest lumber producers with regard to railborne shipments, (5) the exclusion of the Pacific Northwest lumber producers from the Puerto Rican lumber market illustrates the impact of the Jones Act restrictions on the United States lumber industry, (6) in addition to the cost advantages which the British Columbia producers have in the United States Atlantic Coast market, they enjoy intangible advantages which may be characterized as marketing techniques which have created good will for Canadian producers in the American markets, and (7) United States softwood lumber producers in the Pacific Northwest could improve their competitive position in the Domestic market by internal reforms, although they were unable to have imposed on their behalf prohibitive tariffs or quotas. Finally, several suggestions as to possible areas for internal reform are put forward. / Business, Sauder School of / Graduate