<ARTICLE>                        5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMBINED
FINANCIAL STATEMENTS OF U.S. TIMBERLANDS KLAMATH FALLS, L.L.C. AND U.S.
TIMBERLANDS FINANCE CORP. FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                     1,000
       
                              
<PERIOD-TYPE>                    6-MOS
<FISCAL-YEAR-END>                               DEC-31-1998
<PERIOD-START>                                  JAN-01-1998
<PERIOD-END>                                    JUN-30-1998
<CASH>                                                3,334
<SECURITIES>                                              0
<RECEIVABLES>                                         5,977
<ALLOWANCES>                                            100
<INVENTORY>                                               0
<CURRENT-ASSETS>                                      9,294
<PP&E>                                                1,476
<DEPRECIATION>                                          249
<TOTAL-ASSETS>                                      366,169
<CURRENT-LIABILITIES>                                11,256
<BONDS>                                             225,000
<PREFERRED-MANDATORY>                                     0
<PREFERRED>                                               0
<COMMON>                                                  0
<OTHER-SE>                                          129,913
<TOTAL-LIABILITY-AND-EQUITY>                        366,169
<SALES>                                              29,571
<TOTAL-REVENUES>                                     29,571
<CGS>                                                 6,899
<TOTAL-COSTS>                                        26,139
<OTHER-EXPENSES>                                        227
<LOSS-PROVISION>                                          0
<INTEREST-EXPENSE>                                   11,098
<INCOME-PRETAX>                                      (7,624)
<INCOME-TAX>                                              0
<INCOME-CONTINUING>                                  (7,624)
<DISCONTINUED>                                            0
<EXTRAORDINARY>                                           0
<CHANGES>                                                 0
<NET-INCOME>                                         (7,624)
<EPS-PRIMARY>                                             0
<EPS-DILUTED>                                             0