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91<br />

operations in terms of employment through September. By the end of<br />

that month their bulk sugar and molasses storage capacities are<br />

expected to be depleted. They expect to re-evaluate their situation<br />

for October. The plantations directly employ some 2,800 workers. If<br />

a major layoff occurs in October, then our unemployment roll by October<br />

would run an additional 2,800 plus the 250 indicated in our survey—<br />

some 3,000 people or greater. The subsequent figures through November<br />

then might Increase at a large rate as sugar-related industries are<br />

affected. A 3,000 unemployment roll as a result of the strike would<br />

result in a total unemployment rate for the Big Island of about fifteen<br />

percent or 5,000 people. (Our unemployment rate was 6.3 percent before<br />

the Impact of the strike.)<br />

This survey will run on a weekly basis for the duration of the strike<br />

and we will be submitting weekly reports to you.<br />

An Inventory of the Island's food and medical supply indicates adequacy<br />

for at least one month. We initially made monthly surveys at the out-<br />

set, then every two weeks and now we are making weekly food and medical<br />

surveys.<br />

He understand that goods are being brought in from the East, Gulf,<br />

Canada and other ports. Reportedly, this move incurs greater shipping<br />

expenses, and to pass the additional cost to the consumer is obviously<br />

a burden, especially coupled with the wage freeze. Families with Icwer<br />

incomes would be hit more severely by such a move. If the importers<br />

were forced to operate on a price freeze and at a point when this<br />

situation makes it unprofitable, they will cease to look at other ports<br />

or their operations.<br />

As you know, we have our Civil Defense agency taking the food and<br />

medical survey and our Department of Research and Development surveying<br />

the economic impact of the strike.<br />

We appreciate the shipment of chlorine that you arranged for our water<br />

and sewer uses. The shipment will alleviate our immediate shortage.<br />

Dr. Shelley M. Mark<br />

Mr. Wesley Hlllendahl<br />

Mr. Robert Hasegawa<br />

Mr. Frederick Erskine<br />

Dr. Wilbur S. Lummis, Jr.

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