1.   Facing stiff penalties for exceeding the quotas, speculation that Canadian mills may slow shipments is growing.

2.   In that case, Canadian mills could be encouraged to increase lumber exports to the U.S. to gain revenue in the stronger U.S. dollar.

3.   Some industry experts believe Canadian mills will take the penalties and continue selling.

4.   Talk swirled in markets today that two Canadian mills said they will cut back production to avoid reaching quota limits set by the U.S. and Canada earlier this year.

5.   Talk this week that several Canadian mills decided to close shifts contributed to concerns of a supply shortage.

6.   Those profits could prompt Canadian mills to increase their shipments to the U.S., where the housing market is weak and building activity is slowing down for winter.

7.   Traders said at least one major Canadian mill is expected to take much of November off to leave room under the limit.

8.   The new fee is in response to a complaint by the U.S. lumber industry that Canadian lumber mills were dumping wood in the United States below fair market prices.

9.   The place was shunned because of the story that Canadian mill owner Albert Rennie hanged himself there before the war after a typhoon destroyed his business.