ON BEHALF OF THE MEMBERS OF THE SENATE COMMITTEE ON INDIAN AFFAIRS, I WOULD LIKE TO ONCE AGAIN WELCOME ALL OF THE ESTEEMED TRIBAL ELDERS, CLAN MOTHERS, AND THE REPRESENTATIVES OF TRIBAL GOVERNMENTS FROM ACROSS INDIAN COUNTRY TO YOUR NATION'S CAPITOL.

THOSE OF US WHO ARE PRIVILEGED TO SERVE AS YOUR ADVOCATES IN THE CONGRESS UNDERSTAND THAT THERE IS NOTHING MORE FUNDAMENTAL TO ECONOMIC GROWTH IN INDIAN COUNTRY THAN THE SOVEREIGNTY OF TRIBAL GOVERNMENTS. THIS IS WHERE WE BEGIN.

IN RECENT TIMES, IMPRESSIVE NUMBERS OF SCHOLARS, POLITICIANS AND BUSINESS PEOPLE HAVE PROPOSED VARIOUS WAYS OF ENHANCING, IMPROVING AND GENERATING THE ECONOMIC WELL-BEING OF NATIVE AMERICA.

SOME OF THESE PROPOSALS HAVE INCLUDED SET-ASIDES BY VARIOUS FEDERAL DEPARTMENTS, BUT SADLY, WE FIND THAT THESE PROGRAMS DO NOT ALWAYS ASSURE THE CONTINUITY OF PRODUCTION AND EMPLOYMENT THAT IS NECESSARY IN ANY BUSINESS.

FOR EXAMPLE, DURING OPERATION DESERT STORM, ONE TRIBE WAS DELUGED WITH ORDERS BY THE ARMY FOR CAMOUFLAGE NETTING. BUT THAT WAR CAME TO A SPEEDY CONCLUSION AND IN A SIMILAR WAY, THE ORDERS CAME TO A SPEEDY CONCLUSION.

THE LAGUNA PUEBLO HAS HAD SOME SUCCESS WITH DEPARTMENT OF DEFENSE PROGRAMS, BUT HERE AGAIN, LIKE OTHER FEDERAL AGENCIES, THEY FIND THEMSELVES SUBJECT TO BUDGET CONSTRAINTS.

OTHERS HAVE SUGGESTED THE ESTABLISHMENT OF ENTERPRISE ZONES. THESE SUGGESTIONS ARE AMBITIOUS AND THEORETICALLY FEASIBLE. HOWEVER, THEIR SUCCESS DEPENDS UPON A WILLINGNESS TO INVEST IN THAT ENTERPRISE ZONE.

WITH UNEMPLOYMENT AVERAGING FORTY-NINE PERCENT IN INDIAN COUNTRY, ONE COULD HARDLY EXPECT TO FIND TOO MANY INVESTORS IN RESERVATIONS WITH ENTERPRISE ZONES. AND BECAUSE RESERVATIONS ARE TYPICALLY SO FAR REMOVED FROM URBAN AREAS, OFTEN THE INCENTIVES FOR INVESTMENT ARE LIMITED.

SADLY, I NOTE THAT MOST TRIBAL LEADERS LOOK UPON THE INCOME-PRODUCING POTENTIAL OF GAMING AS THE ANSWER TO THE PROBLEMS IN THEIR COMMUNITIES.

HOWEVER, RECENT EVENTS SUGGEST THAT THIS SOURCE OF ECONOMIC DEVELOPMENT MAY BE IN TROUBLE. IN ADDITION TO THE FAILURE OF SOME TRIBAL GAMING OPERATIONS, THE MOOD IN THE CONGRESS SEEMS TO BE DECIDELY HOSTILE TO INDIAN GAMING.

LAST YEAR, AT AN OVERSIGHT HEARING IN THE HOUSE OF REPRESENTATIVES, ALMOST EVERY MEMBER OF THE PANEL EXPRESSED CONCERN WITH GAMING GENERALLY, AND INDIAN GAMING IN PARTICULAR.

AND AS MANY HERE KNOW, FOR THE LAST TWO YEARS, THERE HAVE BEEN PROPOSALS IN THE HOUSE OF REPRESENTATIVES TO IMPOSE A FEDERAL TAX ON INDIAN GAMING REVENUES AT THE RATE OF THIRTY-FOUR PERCENT.

OTHER TAX INITIATIVES IN THE CONGRESS WOULD SEEK TO ELIMINATE COMPETITION BY TRIBES IN THE COMMERCIAL MARKETPLACE BY IMPOSING TWO LAYERS OF TAXES ON TRIBAL ENTERPRISES.

HOWEVER, THE PROSPECTS FOR ECONOMIC GROWTH IN INDIAN COUNTRY ARE FAR FROM BLEAK.

JUST THIS PAST WEEK, WE PASSED THE DEPARTMENT OF DEFENSE APPROPRIATIONS BILL IN THE SENATE -- PROVIDING ANOTHER EIGHT MILLION FOR THE ENVIRONMENTAL CLEAN-UP OF INDIAN LANDS AFFECTED BY THE OPERATIONS OF OUR MILITARY, EXTENDING THE MENTOR-PROTÉGÉ PROGRAM, AND AMENDING THE INDIAN FINANCING ACT TO ASSURE THAT SMALL BUSINESSES CAN PARTICIPATE IN THE INDIAN INCENTIVE PAYMENT PROGRAM.

THE EFFORTS TO FORM A NATIONAL INDIAN BANK ARE WELL UNDERWAY. SEVEN TRIBES HAVE ALREADY COMMITTED SUBSTANTIAL FUNDS TO BEGIN THE PROCESS OF SECURING A NATIONAL BANK CHARTER FROM THE OFFICE OF THE COMPTROLLER OF THE CURRENCY, TO DEVELOP A PLAN OF ORGANIZATION AND MANAGEMENT, AND TO RAISE SUFFICIENT ADDITIONAL FUNDS TO CAPITALIZE A NATIONAL TRIBAL BANK .

OF COURSE, THERE ARE TRIBES THAT ARE ALREADY IN THE BUSINESS OF BANKING -- THE MILLE LACS BAND, THE BLACKFEET, AND POSSIBLY THE LARGEST -- THE PEACE HILLS TRUST STARTED BY THE SAMSON CREE NATION IN CANADA WHICH NOW HAS A CURRENT NET EQUITY OF THIRTY-FIVE MILLION DOLLARS, ASSETS IN EXCESS OF FOUR HUNDRED MILLION DOLLARS, AND MANAGES OVER TWO HUNDRED AND FIFTY MILLION IN TRUST FUNDS.

THOSE TRIBES WHO HAVE SEIZED THE IMPETUS TO CHARTER A NATIONAL BANK TO SERVE INDIAN COUNTRY HAVE SEVERAL COMMENDABLE OBJECTIVES, INCLUDING THE FACILITATION OF LOANS AND THE CONDUCT OF BUSINESS IN INDIAN COUNTRY. AT LEAST ONE PARTICIPATING TRIBAL GOVERNMENT SEES THE NATIONAL BANK AS A VEHICLE FOR TRIBES TO DO BUSINESS WITH ONE ANOTHER.

LAST YEAR, SOME OF YOU ATTENDED THE COMPTROLLER'S CONFERENCE ON BANKING IN INDIAN COUNTRY. AS A RESULT OF THAT CONFERENCE, THERE WAS CONSIDERABLE INTEREST GENERATED IN THE PRIVATE SECTOR TO LEARN MORE ABOUT DOING BUSINESS IN INDIAN COUNTRY.

IT IS CLEAR THAT ONE OF OUR MOST IMPORTANT CHALLENGES IS TO ESTABLISH A

POSITIVE CLIMATE FOR BUSINESS IN INDIAN COUNTRY. HOW CAN WE GO ABOUT THIS?

SOME HAVE SUGGESTED THAT THE FEDERAL GOVERNMENT DEVELOP A RESOURCE GUIDE FOR TRIBAL GOVERNMENTS ON FEDERAL CONTRACTING AND GRANT OPPORTUNITIES. BUT I WANT TO COMMEND TO YOUR CONSIDERATION SOMETHING THAT I HAVE BEEN SUGGESTING SINCE THE TIME I ASSUMED THE CHAIR OF THE INDIAN AFFAIRS COMMITTEE IN 1987.

AS THE RANKING MEMBER AND FORMER CHAIRMAN OF THE DEFENSE APPROPRIATIONS SUBCOMMITTEE, I DEAL WITH HUNDREDS OF DEFENSE CONTRACTORS AND PRIVATE SECTOR COMPANIES. WHEN I SPEAK TO THEM OF DOING BUSINESS IN INDIAN COUNTRY, WITHOUT EXCEPTION, THEY ASK THE SAME BASIC QUESTIONS.

THEY WANT TO KNOW WHAT KIND OF INFRASTRUCTURE THERE IS -- DO THOSE TRIBAL GOVERNMENTS WHO ARE INTERESTED IN GOVERNMENT CONTRACTING OR DEVELOPING SUBCONTRACTING CAPABILITIES ON THEIR RESERVATIONS HAVE INFORMATION ON THE PROXIMITY TO THEIR COMMUNITIES OF AIRPORTS, RAILWAYS OR OTHER MEANS OF TRANSPORTING MANUFACTURED GOODS TO THE LOGICAL MARKETPLACES.

IF THEY ARE TO CONSIDER PLACING A PERMANENT PLANT FACILITY ON A RESERVATION, THEY WANT TO KNOW ABOUT HOUSING, SCHOOLS, HOSPITALS, STORES AND RECREATIONAL FACILITIES.

THEY WANT TO KNOW ABOUT WHAT LAWS WILL GOVERN THEIR CONTRACTS, AND WHAT MECHANISMS THERE WILL BE FOR THE RESOLUTION OF ANY DISPUTES.

THEY WANT TO KNOW ABOUT ACCESS TO CAPITAL AND THE STATUS OF THE TRIBAL LANDS ON WHICH A BUSINESS WILL BE LOCATED.

SO IT SEEMS TO ME CLEAR THAT IF WE WANT TO STIMULATE THE INTEREST OF THOSE WHO MAY BE INCLINED TO DO BUSINESS IN INDIAN COUNTRY, WE MUST BE PREPARED TO ANSWER ALL OF THEIR QUESTIONS ABOUT INDIAN COUNTRY GENERALLY, AND EACH INDIAN COMMUNITY SPECIFICALLY.

PERHAPS THERE SHOULD BE A RESOURCE GUIDE TO INDIAN COUNTRY, BECAUSE WE NEED TO BUILD AWARENESS OF THE CAPACITIES AND CAPABILITIES IN INDIAN COUNTRY NOT ONLY FOR PRIVATE SECTOR BUSINESSES BUT ALSO FOR THE FEDERAL GOVERNMENT.

THERE IS A SKILLED LABOR FORCE IN INDIAN COUNTRY. WITH ALL DUE RESPECT FOR THE IMPORTANCE OF INTERNATIONAL TRADE AND COMMERCE, WHY SHOULD WE SEND WORK TO DEVELOPING NATIONS WHEN WE KNOW THAT THE WORK CAN BE PERFORMED IN INDIAN COUNTRY?

IT IS BEYOND DOUBT THAT WHAT IS GOOD FOR THE ECONOMY OF NATIVE AMERICA IS GOOD FOR THE ECONOMY OF THE NATION.

IT SHOULD BE MADE MORE WIDELY KNOWN THAT OVER THE PAST FEW YEARS, INDIAN NATIONS HAVE CONTRIBUTED EIGHT AND A HALF BILLION DOLLARS TO THE AMERICAN ECONOMY.

OVER THE NEXT DAY AND A HALF, YOU WILL BE HEARING ABOUT THE RESOURCES THAT TRIBES MAY WANT TO DRAW UPON TO LEARN HOW TO GET STARTED IN BUSINESS, HOW TO MARKET TRIBAL PRODUCTS, HOW TO DEVELOP A BUSINESS, AND HOW TO GO ABOUT IDENTIFYING FINANCING AND BUSINESS OPPORTUNITIES.

MAY I SUGGEST THAT YOU GIVE SOME CONSIDERATION TO THE CONCEPT OF A SPECIAL PURPOSE CORPORATION?

THIS IS A CONCEPT THAT WILL BE DISCUSSED IN MORE DETAIL AT A TRIBAL LEADERS MEETING THAT IS BEING HELD ON THE MASHANTUCKET PEQUOT RESERVATION ON SUNDAY, AUGUST 9^TH. I HAVE CALLED UPON A FEW PEOPLE WHO HAVE HAD SOME EXPERIENCE WITH THIS MODEL TO SHARE THE SPECIFICS WITH THE TRIBAL LEADERS WHO WILL GATHER THERE, PRIOR TO THE OPENING OF THE MASHANTUCKET PEQUOT MUSEUM AND RESEARCH CENTER ON MONDAY OF NEXT WEEK.

BUT IN SHORT, THE SPECIAL PURPOSE CORPORATION IS A MODEL AND A MEANS FOR BRINGING ALL OF THE RESOURCES AND EXPERTISE TO BEAR THAT A YOUNG BUSINESS OR INDIVIDUAL TRIBAL ENTREPRENEUR WILL NEED TO GET HIS OR HER IDEA OR BUSINESS TO THE NATIONAL AND GLOBAL MARKETPLACES.

THE CORPORATION MAY HAVE A SPECIFIC FOCUS -- SUCH AS HELPING YOUNG COMPANIES TO ESTABLISH THEMSELVES IN THE FIELDS OF EMERGING TECHNOLOGIES.

OR THE CORPORATION MAY HAVE A BROADER FOCUS -- HELPING NEW ENTERPRISES IN LEARNING HOW TO DO BUSINESS WITH THE GOVERNMENT OR TO MARKET THEIR PRODUCTS OR SKILLS BY ATTRACTING INVESTMENT CAPITAL.

DEPENDING UPON ITS FOCUS, EACH SPECIAL PURPOSE CORPORATION MAY HAVE A DIFFERENT COMPOSITION OF PERSONS WITH EXPERTISE IN THOSE AREAS THAT WILL BE RELEVANT TO NEEDS OF YOUNG ENTERPRISES -- BE IT GOVERNMENT, LAW, TECHNOLOGY, PATENTING AND TRADEMARK, OR WALL STREET.

THE HISTORY OF OUR RELATIONS WITH NATIVE AMERICA IS NOT A HAPPY AND SPARKLING ONE. IT HAS BEEN ONE OF BROKEN PROMISES AND BROKEN TREATIES.

TO THIS DAY, ONE CAN HEAR THE CRIES OF ANGUISH AMONG THE DESCENDANTS OF THE GREAT SIOUX NATION OVER THE BREAKING OF THE SOLEMN PROMISE OF OUR GOVERNMENT THAT THE BLACK HILLS WOULD BE INDIAN COUNTRY SO LONG AS THE GRASS GROWS AND THE WATER FLOWS. THAT TREATY LASTED ONLY A FEW YEARS.

ONE CAN TRACE THE BATTLE OF LITTLE BIG HORN AND THE DEMISE OF CRAZY HORSE TO A BROKEN PROMISE. AND THERE HAVE BEEN HUNDREDS OF BROKEN PROMISES.

SOME HAVE SUGGESTED THAT WE ARE NOW INVOLVED IN A PERIOD OF SHATTERED DREAMS. BUT WHAT REMAINS WELL INTACT IS YOUR SOVEREIGNTY. YOUR SOVEREIGNTY IS THE FOUNDATION ON WHICH YOUR FUTURES WILL BE BUILT.

WITH EVERY STEP TOWARD PROGRESS IN DEVELOPING TRIBAL ECONOMIES, WE BRIGHTEN THE DREAMS OF INDIAN COUNTRY AND HEIGHTEN THE HOPES OF TRIBAL PEOPLE ACROSS THE LAND. LET US PLEDGE OURSELVES TO ASSURING THAT THE FIRST CITIZENS OF THIS GREAT NATION WILL ALWAYS SHARE IN ITS ABUNDANCE.