and 1970. I would also remind you that the greater part of these deliveries is under long-term contracts, in some cases with escalation protection against possible increases in costs. This gives us the ability to predict these earnings with reasonable accuracy. Such predictions are not so easily come by in our construction or land development. Because our construction backlog normally represents about the volume of work that we would perform in a year to a year and one half, no forecast beyond that is particularly meaningful. Our present backlog of $115 million is distinguished by three things. First it is 81% foreign. Second, it is 7 9% negotiated work and 21% firm price work (about the reverse of normal). Third, it appears free of any catastrophic losers. Today we do not find foreign work necessarily more profitable than domestic work. However, the high proportion of our work that is represented by cost-plus contracts will cause our construction profits in 1967 to fall below the high levels of 1966 when firm price work bolstered profits. The conditions that caused our earnings from land development to decline in 1966 will continue into 1967 and we are anticipating that our land development profits will be of more modest proportions this year. Looking longer ahead, we feel that our real estate inventories and investments have been acquired at favorable prices and represent a source of continuing profits in the years to come. Pulling it all together, despite our inability to be precise about predictions in construction and land development, we feel that these activities will perform sufficiently well so that, combined with ever expanding mining -10-