Abstract: Economic exploitation of natural resources relies on the material basis of protecting forest resources and preserving ecological equilibrium. Only under ecological equilibrium can continuous utilization of forest resources be talked about and long-term economic benefit guaranteed. Once ecological equilibrium is destroyed, economic loss will be effected and even the existance of mankind endangered.In our country, mountainous and hilly land account for 60-70% of the tetri-tory. In these areas forestry should be developed as the major undertaking in combination with the developement of a diversified economy, with forestry joined together with its processing industry and trade. This will constitute an effective way for developing our forestry and making our country and people rich.There are 1200 million mu of barren hills and waste land in our country awaiting afforestotion. In order to accomplish the task of making our country green, different types of systems of job responsibility should be energetically popularized, initiative of contractors brought into full swing and interests of contractors integrated with the achievement in afforestation.In developing our forestry, scientific research should be strengthened and science and technology in forestry popularized. A long-range programme for the development of science and technology in forestry should be worked out in one or two years.