there is the problem of transmission of sexually transmitted diseases to their wives, their babies, and other members of their home community. Although it is hard to get official statistics on the matter, there is strong anecdotal evidence to suggest that HIV and hepatitis C are on the increase in rural PNG and that some, if not most of these infections, have been transmitted via a male partner who has used prostitutes in urban areas or industrial sites. In a report on the effects of the destruction of the Borneo rain forest on the natives of Sarawak, Dr. Tatsuo Hayashi, records a visit by Dr. Ron Aspinall to the Penan people. He found that sexual diseases increased as the cash economy increased. This was mainly due to Filipino loggers visiting Penan villages in search of women. He also notes that there was an increase in psychological disorders that he blames on the cultural destruction brought about by this destruction of the Penan's forest homeland (Hayashi, 1990). In theory, the local people should gain considerable benefits from logging operations in their area, royalties are paid, and there is income to be earned, both directly by being involved in the operation its self, and by the supply of goods and services. This should result in an increased cash flow in the local economy and increasing living standards. According to Wood (1985) the direct effect of industry on the economic health of the local population is probably minimal. Wages are very low by