S2Between 1970 and 1986, hardwood log exports increased by 102 percent, hardwood lumber exports by 329 percent, hardwood veneer exports by 442 percent, and hardwood plywood exports by 61 1 percent. Much of this increase has been for white and red oak products in the European and Asian markets. The factors influencing these increases include increased cost of tropical and European hardwood products, rapid growth in European and Asian economies, and an emerging furniture industry in Taiwan. Given the ample supplies of temperate hardwood timber in the United States relative to the rest of the world, continued demand for U.S. hardwood products seems likely. However, the increase in this demand will be contingent on the value of the dollar against European and Asian currencies, growth in foreign economies, furniture production technology, and foreign consumer acceptance of substitute materials.S3.