downstream floodplains in India and Bangladesh. The Department of Forestry was established in 1952 to oversee conservation and exploitation of the country's significant forestry resources. Forestry resource exploitation increased with the start of the First Development Plan in 1961. Uncontrolled felling of trees in the 1970s by private companies in logging areas and by rural populations along roads and in main valleys stripped hillsides and caused serious erosion. Tsheri cultivation, forest fires, and overgrazing also contributed to the degradation of Bhutan's forestry resource. In 1981 some 3.3 million hectares, or between 70 and 74 percent of the land, were forested, but in 1991 foreign estimates indicated a shrinking forest of only 60 to 64 percent of the land. Even more conservative estimates indicated that closer to 50 percent of Bhutan's territory still was forested in the late 1980s, and about 15 percent of GDP was produced through the nation's important forest industry. Recognizing the potential value of its forestry resource, Bhutan became increasingly conscientious about forestry management in the 1970s. Starting in 1977, the World Wildlife Fund began supporting Bhutan's forest management through organizing forest ranger training programs, supplying funds for forest boundary demarcation, building guard posts, and constructing a patrol road for what was later to be designated the Royal Manas National Park. Bhutan rejected World Bank aid to build a major dam on the Manas Chhu in 1986 that would have flooded this major conservation area on the southern Bhutan-India border. By 1989 Bhutan had developed nine other forest and wildlife preserves, also mostly along the southern border with India. In the face of increasing denuded hillsides, private logging was banned, and strict standards for public-sector logging operations were established in 1979. Farmers were warned against burning off forests to clear land for tsheri cultivation, and Forest Guards were trained in increasing numbers to help preserve the valuable resources. Surveying, demarcation, conservation, and management plans for harvesting forest products were part of the Fifth Development Plan's focus on forestry preservation. Wildlife sanctuaries also were developed. One of the immediate results of forestry sector regulation, however, was a sharp decrease in revenues since the late 1970s. In 1991 the government, with assistance from UNDP and the World Wildlife Fund, established a trust fund for environmental conservation. Initially in the amount of US$20 million, the UNDP-administered fund was aimed at producing up to US$1 million per year for training in