WASHINGTON—  The American Forest & Paper Association reported that paper shipments in all writing grade are down or flat. Total sales are down by 7% over all compared to a year ago. The decline for coated free sheet was down by less that 1%. Inventory levels were up by 2%. Uncoated free sheet ( offsets & bonds) have declined for the eighth month in a row. Coated free sheets( # 1 and #2 )  are down less than 1%. Coated mechanical( magazine and catalogue ) decreased for the third year in a row. Uncoated mechanical ( newsprint) decreased for the tenth month in a row. Imports increased in all catagories except coated mechanical.