THE MINERAL INDUSTRY OF ALASKA 75 
 
the rapid development of oil and gas resources, potential mineral resources,
timber sales, tourism, and population growth. The studies noted the great
increase in motor vehicle registrations and travel in the preceding 8 years
and the projected growth in these areas. Prepared at the request of the American
Association of State Highway Officials, the report was to be presented to
Congress along with those on other States as an aid and guide for the preparation
of a nationwide highway legislative and financing program to replace the
Interstate Program at its expiration in 1973. 
 Alaska, with help of Federal funds, was planning to spend $327 million on
its highway program by the end of 1972. Of the total, $154 million was earmarked
for the primary road program, $86 million for the secondary road program,
and $26 million for the emergency program— highway damage from floods,
land,lides, earthquakes, etc. The remaining $61 million was to go toward
maintenance, access roads, upgrading, and development work. 
 Late in the year, the Federal Highway Administrator announced that the Department
of Transportation had released funds for preliminary engineering work for
reconstruction of portions of the CordovaChitina Highway in the Copper River
country. The monies were to come from the disaster relief fund and would
also cover the costs of reconstruction of segments of the highway damaged
by the 1964 earthquake. The Department of Transportation earlier had decided
against rebuilding but had been prevailed upon to reconsider its decision.

 At the request of Alaska's Governor, the State Legislature created the Northern
Operations of Rail Transportation and Highways Commission (NORTH). Made up
of five members from Alaska and five from the Nation as a whole, including
the Undersecretary of Transportation and the General Manager of the Alaska
Railroad, the Commission was to act as an advisory body to the Governor and
the Legislature in order to promote and implement the policies of the State
regarding economic development of northern Alaska. 
 Initial proposals included extension of the Alaska Railroad westward from
Fairbanks to Nome by way of Bornite on the Kobuk River and construction of
a winter snow road north of Fairbanks from Liven- 
good through Bettles and Anaktuvuk Pass to Umiat and the Sagavanirktok River.
At a meeting in Washington, D.C. NORTH authorized $225,000 in State funds
for preliminary studies of the railroad extension from Dunbar to Bornite.
Estimated cost of the 400-mile project was put at $150 to $160 million. The
Undersecretary of Transportation and the general manager of the Alaska Railroad
joined in support of the $225,000 spending authorization. 
 Legislation to modify provisions of the Jones Act thus permitting use of
the British Columbia ferry system in freight shipments from the contiguous
United States to southeastern Alaska ports was pending in the Congress at
yearend. Under the shipping act enacted in 1920, shipment of cargo in interstate
commerce was limited to the use of United States built and operated water
carriers. Passage of the pending legislation was seen as providing more frequent
service to Alaska's Panhandle as well as easier long-line carriage of freight
to northern Alaska communities. 
 In a related development, Sea-Land Service, Inc., a major carrier in the
Seattle-Anchorage trade, announced a new cargo service for southeastern Alaska
to start in the spring of 1968. The new service was contingent upon no changes
being made in the Jones Act. Sea-Land planned a $5 million investment in
southeastern Alaska facilities including terminals at Ketchikan and Juneau.
From these points, plans called for Alaska ferries to distribute cargo vans
during 8 months of the year with tugs and barges used during the tourist
season. 
 Ferry service to southeastern Alaska from Kelsey Bay on Vancouver Island
via the British Columbia ferry system was interrupted with the grounding
of the ferry Queen of Prince Rupert. When the Canadian authorities indicated
that service was not scheduled to resume until the spring of 1968, Alaska
moved to use vessels of its own system to provide service. In less than a
month the State established a Seattle-Ketchikan run after obtaining Coast
Guard designation of the Inland Passage as lakes, bays, and sounds: the Alaska
ferries were not rated as oceangoing vessels. 
 Puget Sound-Alaska Van Lines contracted for two additional hydrotrain yessels,
each of 48 railcar capacity. Puget