This section contains the nature of the case and procedural background.

Alaska (D) wanted to sell 49 million board feet of timber, but with a contractual requirement that it be processed before it left the state. In return, the price was lower than it would have been otherwise. The intent was to protect existing in state timber-processing industries, promote new industries, and derive revenue from all timber resources. South-Central Timber Development (P), which had processing facilities out-of-state, brought an action seeking to have the condition declared void as contrary to the Commerce Clause. The District Court agreed and issued an injunction. The Court of Appeals reversed, finding it unnecessary to reach the question whether, standing alone, the requirement would violate the Commerce Clause, because it found implicit congressional authorization in the federal policy of imposing a primary manufacture requirement on timber taken from federal land in Alaska. P appealed, and the Supreme Court granted certiorari.

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