OPA

Secretary of the Interior Don Hodel told Congress today that longstanding problems plaguing federal efforts to serve Indian tribes will continue until the tribes, the Congress and the Administration make a unified effort to "find new ways to work together toward our common goal: to create a framework within which American Indians can improve the quality of their lives."

"The old ways of doing things are not leading to the accomplishment of this goal," Hodel said in testimony prepared for the Subcommittee on Interior and Related Agencies of the House Appropriations Committee.

"We believe with bold, creative approaches, perhaps we could develop proposals which work," Hodel said.

Hodel appeared at the hearing with Ross Swimmer, Assistant Secretary for Indian Affairs, who said that fundamental changes are needed to fulfill the proclaimed federal policy of self-determination for Indian tribes.

"It is time to give the tribes the responsibility they seek," Swimmer said. The Assistant Secretary said that inevitably the concept of a paternalistic federal agency will clash with the concept of self-determination and freedom -- one must give way in order for the other to survive. He said this is not an issue of reducing financial support.

"The BIA (Bureau of Indian Affairs) is expected to address almost every social and economic ill known to mankind through approximately 100 discrete programs," Swimmer noted. An already overwhelming task is further complicated by a lack of agreement among the tribes, Congress and the Administration as to priorities among the many responsibilities.

Swimmer pointed out that BIA currently has responsibilities for delivering some form of virtually every federal, state and local program. For example, the BIA has responsibility for schools, colleges, police departments, courts, social services, job training and employment programs; acts as a bank for deposits, payments, investments and credit programs; is a trustee of tribal and individual Indian assets; oversees forests and fisheries; employs agronomists and archaeologists, minerals and mining experts; operates irrigation and power systems; builds houses, dams, roads, schools and jails; and provides technical assistance.

The Assistant Secretary emphasized that he was not suggesting the Federal Government abandon programs or reduce funding where there is need among American Indians.

"We should specifically identify those federal programs which deal with the management of Indian trust resources such as lands, mineral resources and trust funds," as well as those managed by other federal agencies, Swimmer said. "It is a responsibility of the entire Federal Government to ensure that the best available services are provided in connection with the management of Indian lands, resources and trust funds."

Federal support for other than trust services should come through a new category of funding which could be included in the BIA budget for true self-determination grants, Swimmer said.

"With these self-determination funds the tribes would have complete autonomy in determining what programs would be provided," Swimmer explained. "Tribes not wishing to operate programs directly could contract with the BIA to operate the programs for them. Thus, rather than having programs which the tribe can contract from the BIA, the tribes could design their own programs and contract them to the BIA, or if they chose, to another federal or local agency."

Earlier this year, the Department recommended placing control of Indian education programs at the local level; combining a number of disparate programs to create a unified job-training/job-creating effort as an alternative to welfare; standardizing contract support payments, while including a subsidy to stabilize funding to small tribal governments; and, securing competent, professional private sector assistance to manage properly approximately $1.7 billion in Indian trust funds.

Mr. Chairman and Members of the Subcommittee: I am pleased to have the opportunity to appear before the Subcommittee today to discuss the relationship between American Indians and Alaskan Native people and the Federal Government. Establishing an appropriate relationship between Indian people and the Federal Government has been a serious dilemma for more than two centuries.

I would like to remind you, Mr. Chairman, that when I first appeared before you, we addressed three major problems in the Department of the Interior: One was the Minerals Management Service's royalty management program, on which we have made significant progress; the second was computers, on which there has also been significant progress; and the third was Indians, on which we had no consensus on how to solve the problems.

Over the years there have been conflicts in cultures, conflicts in goals, conflicts in approaches to solving problems. As many reports point out problems persist in education, health, law enforcement, and the delivery of services. The Federal Government over many Congresses and Administrations has tried innumerable ways to solve the problems. It has passed so many laws that the portion of United States Code related to Indian Affairs is about the same size as that related to labor law or laws governing the Congress. The Government has poured billions of dollars into Indian programs -- nearly three billion dollars appropriated annually in recent years, about: one-third of which is to the Department of the Interior.

Time and again the government has set up commissions to examine Indian problems and recommend solutions. Although proposed solutions are many and varied, two major themes recur: the need for economic development: on reservations and the desire of American Indians for self-government to decide their own goals and directions.

In 1983 President Reagan's Policy on American Indians reinforced the government-to-government relationship of Indian Tribes with the United States for purposes of self determination for Indian people and promoted both tribal self-government and the development of reservation economies.

In keeping with this policy, the President's choice for the Assistant Secretary for Indian Affairs in the Department of the Interior, was a person who would continue to stress the themes of economic development and self-determination. Ross Swimmer is the former Chief of the Cherokee Nation of Oklahoma, the second largest tribe in population in the country. He is the first Chairman of any tribe to lead Indian Affairs for the Department of the Interior. He continues to have the President's and my support.

Since Mr. Swimmer has been in office, the Administration has proposed some of the most exciting and promising initiatives on Indian Affairs in years. But we have not been able to generate broad-based support for these initiatives Examples of the initiatives are:

A self assistance program that would enable a welfare recipient to achieve sustained and meaningful work and skill development.

Major changes in the area of self determination including a new approach to equitably funding tribal indirect contracting costs and funding a new program targeted at enhancing small tribes' capabilities.

A new plan to improve for full financial trust services for the $1.7 billion held in trust for tribes and individual Indians by contracting with a qualified financial institution.

The transfer of the operation of the remaining Federal Indian schools to tribal or public schools through the use of contracting or cooperative agreements. Currently, the Federally and tribally operated schools account for only 10 percent of all Indian students nationwide and such a transfer would move the policy and decision making to the local level.

Because of the diversity and complexity of tribes, almost every proposal to change the status quo in Indian country is met with fear and resistance. To attain a consensus among 500 such groups has been impossible. To obtain congressional concurrence in major changes has been extraordinarily difficult.

Mr. Chairman, we view this as a new opportunity to focus attention on the need to get unified with the Congress and tribal leaders -- a chance to focus attention on the fundamental problem. The tribes, the Federal employees, the lobbyists and the political leaders in Congress and the Administration must find new ways to work together toward our common goal: to create a framework within which American Indians can improve the quality of their lives. The old ways of doing things are not leading to the accomplishment of this goal. We believe with bold, creative approaches, perhaps we could develop proposals which would work. It is in that spirit that I appear before you today -­ ready to work with you, American Indians, and Alaskan Natives to meet that goal.

Assistant Secretary Swimmer and the Department of Interior Solicitor Tarr are here with me to discuss improved relationships between Indian tribes and the Federal Government, new approaches to funding for the tribes, and to respond to the areas of concern that the Subcommittee may have. Mr. Swimmer has prepared a statement which he would like to summarize for you.

Mr. Chairman and Members of the Committee, I appreciate the opportunity to appear before the subcommittee today to discuss current problems and future directions for the Bureau of Indian Affairs. I want to attempt to provide an overall perspective of the far-ranging responsibilities the Administration and the Congress have placed on the Bureau of Indian Affairs.

With the exceptions of national defense and health care, some form of virtually every other federal, state and local program is found in the Bureau of Indian Affairs: BIA operates schools and colleges, police departments, courts, social services, job training and employment programs. It acts as a bank for deposits, payments, investments and credit programs, and as a trustee of tribal and individual Indian assets. The Bureau oversees forests and fisheries, and irrigation and power systems. It employs experts in mining and minerals, and agriculture and archeology. The Bureau builds houses, dams, roads, schools, and jails. Bureau employees operate programs while preparing to work themselves out of a job by providing training and technical assistance to allow tribal contracting. The Bureau must meet federal trust responsibilities while encouraging tribal self-determination.

The Bureau of Indian Affairs is expected to address almost every social and economic ill known to mankind through approximately 100 discrete programs. The BIA provides services to almost 500 tribes and Alaska Native groups in 30 states from California to Maine. Rather than asking why there are problems in the operation of Indian programs, we should ask how anyone can realistically think that one Bureau could fulfill such expectations.

If a member of Congress requests funds to expedite cadastral surveys in his state, the Committee does not add the money to the Smithsonian budget -- it goes to the BLM because they have the expertise. Funds to increase reforestation efforts go to the Forest Service, not the Bureau of Mines. Yet, if these activities were proposed for Indian country, the money would not be added to the Bureau of Land Management or the Forest Service but to the budget of the Bureau of Indian Affairs -- not because we have the best surveyors or the best foresters, but simply and solely because it is an Indian project.

We are all responsible for this anomaly: the Administration, the Congress, and the Indian tribes. No one identifies a need in Indian country and then asks which Federal agency is most capable to do the job. If it's not health related, the responsibility is usually given to the Bureau.

There are obvious reasons for this. We want to hold someone accountable; we want to be able to readily identify expenditures for Indian programs; and we want to ensure that within the competing demands for Federal services, the voice of the Indian people is heard. Title 25 of the Annotated Code is almost 1500 pages long and the regulations governing Indian programs cover more than 800 pages. Felix Cohen's Handbook of Federal Indian Law states: "The federal law governing Indians is a mass of statutes, treaties, and judicial and administrative rulings, that includes practically all the fields of law known to textbook writers -- the laws of real property, contracts, corporations, torts, domestic relations, procedure, criminal law, federal jurisdiction, constitutional law, conflict of laws, and international law. And in each of these fields the fact that Indians are involved gives the basic doctrines and concepts of the field a new quirk which sometimes carries unpredictable consequences." There are over 4,000 different treaties and statutes which have been approved. The Bureau is often criticized for not meeting all of its responsibilities but those responsibilities have become truly monumental, and in some cases, conflicting.

Even with all these duties, it might be possible for the Bureau to operate in a manner which meets with the approval of the Administration, the Congress, and the tribes -- if everyone could agree on the priorities. What is the most important program of the Bureau -- where should we concentrate most resources and energies? What program is second on the list? And so on, until we can name the least important program of the Bureau of Indian Affairs. I would suggest that if you posed that question -- program specific -- to each tribe and each Member of Congress with an interest in Indian affairs, that you wouldn't get a dozen identical lists. There simply is no agreement on the priorities of the Bureau of Indian Affairs. No agreement among tribes, members of Congress, or even among employees of the Bureau. Without such basic consensus among those who pass the laws, those who are charged to carry out the laws, and those whom the laws are designed to serve, how much of the fault can really be laid on the management of the Bureau?

Let me give an example of what this multiplicity of programs means at the local level: one employee at an agency office in Oklahoma is responsible for certifying general assistance clients and applicants for child welfare assistance. This person also approves expenditures from individual trust accounts held for incapacitated adults and minor children. In addition, this employee oversees the scholarship, adult education, and adult vocational training programs. And for next year, the tribe has recommended that this individual also assume all clerical duties associated with the programs. Which portion of this job should the individual do first and spend the most time on? This is not necessarily an extreme example, because at the agency level, many individual programs have relatively few dollars and small workloads, thus, making it impossible to justify a full-time position for each.

We recognize that the Congress is sincere in its desire to help Indian people. Please believe that we at the Department of the Interior share this desire. I would agree that the administration of Indian programs has been and continues to be plagued with many problems, program deficiencies and shortcomings. I have tried, and will continue to try, to work with Congress and the Indian tribes to resolve these issues. Having served as a tribal chairman for years, when I came to Washington I had some ideas on changes that could be made to improve Bureau operations. A number of these ideas -- none of which was associated with a budget reduction -- met with approval of the Secretary and the Administration and were included in the Bureau's budget proposal for fiscal year 1988: placing control of education programs at the local level; combining a number of disparate programs to create a unified job training - job creation effort as an alternative to welfare; standardizing contract support payments, while including a subsidy to stabilize funding to small tribal governments; and, securing competent, professional, private sector assistance to properly manage one and one-half billion dollars in trust funds. Unfortunately, 'the Bureau apparently did not present a sufficiently compelling case for adoption of these recommendations, as most have met with strong opposition.

In your letter of October 16, 1987 requesting that we appear for this hearing, reference is made to the report of the American Indian Policy Review Commission which stated that present budgetary practices do not provide an equitable share of Federal appropriations for Indian services and that there was one Federal administrator for every 19· Indians. You asked that we be prepared to address ways of assuring a greater pass through of appropriations to tribes themselves rather than to layers of the BIA bureaucracy.

We are prepared to make two very basic recommendations which I believe will accomplish what you seek. Before addressing those, however, I would like to clarify the record regarding the so-called "bloated bureaucracy" of the BIA. Employment in the Bureau of Indian Affairs has decreased by 20 percent since 1976. That is remarkable enough, but when one considers that during this same period of time, the Indian population served by the Bureau has increased by over 30 percent, the difference is even more striking.

With respect to the recommendations I am about to make, it is understood that working out the details will require time and effort, but it is an effort the Department is willing to make if the tribes and the Congress will do the same. I should also stress that the views set forth in my statement are solely those of the Department of the Interior and should be viewed as such. The development of specific recommendations will require coordination with other affected executive branch agencies prior to submission of an Administration proposal.

First, we should specifically identify those federal programs which deal with the management of Indian trust resources, i.e. lands, minerals resources, and trust funds. Trust programs need to be distinguished from other programs which may be necessary and important, and which may meet very real needs, but do not involve the management of trust assets. I would not argue against the need for other programs in addition to those necessary to fulfill trust responsibilities but "need" does not necessarily equate with "trust responsibilities."

We should then determine if there are other agencies of the Federal Government more capable to upgrade and carry out the various program functions involved in the management of trust assets. These programs should not reside solely within the Bureau of Indian Affairs -- it is a responsibility of the entire Federal Government to ensure that the best available services are provided in connection with the management of Indian lands, resources and trust funds.

The Bureau of Indian Affairs and the Indian Health Service are subject to "Indian preference" in hiring and promotion of employees. I fully subscribe to the intent of Indian preference, and feel that the fact that 83 percent of BIA employees are Indians is proof of our sincere attempts at compliance, but it should be examined in context of changed conditions. Less than one-half of one percent of the population of the United States meets the requirements to be extended Indian preference in Federal hiring. I have been told that of the working-age population, only 47,000 Indians have completed college. The BIA, IHS, national Indian organizations, some Committees of Congress, and hundreds of tribal governments are all competing to obtain the best of a very small workforce. And, of course, not all Indians are interested in working for either the Federal government or tribal governments. Congress has allowed tribal contractors operating programs with Federal funds to waive Indian preference. At a minimum, I think we need to review the categories of employment where we currently have, or are projecting, a shortage and be granted waiver authority at the Federal level.

The following recommendation concerns the operation of all other programs which have not been specifically identified through the foregoing process. Our recommendation is that there be only one other category in the Bureau's budget -- true self-determination grants. We currently have a situation where self-determination is limited to allowing tribes to contract for programs which the Bureau has operated in the past. And, the tribes are supposed to run the programs in much the same way as the Bureau had, being held to the same requirements and regulations. If, for instance, a tribe spends education funds on a social services program, that cost would most likely be disallowed under an audit and the Bureau would be directed to recoup those funds from the tribe. It doesn't matter that the need is real and the funds were put to good use. It only matters that the expenditure was outside the scope of the contract. This occurs because of the large number of separate programs the Bureau is required to operate, since notwithstanding the rhetoric of self-determination, both the Administration and the Congress want to know exactly how much we are spending on every conceivable activity in Indian country.

A formula should be established as the basis for the distribution of these self-determination funds. Since the Bureau's budget is based largely on historical spending, including tribal-specific increases over a number of years, there is currently a great disparity in funds available to similarly situated tribes. In establishing the formula, we would suggest that it be based primarily on a per capita distribution, with some adjustment for small tribes, and perhaps, an adjustment for tribes which have no economic or natural resource base. The per capita distribution should address the expansion of many tribes' membership criteria.

With these self-determination funds the tribes would have complete autonomy in determining what programs would be provided. Tribes not wishing to operate the programs directly could contract with the Bureau to operate the programs for them. Thus, rather than having programs which the tribe can contract from the Bureau, the tribes could design their own programs and contract them to the Bureau, or if they chose, to another Federal or local agency. This would also address the question of the size of the BIA labor force. Once the statutory responsibilities were defined and staff resources identified to meet these responsibilities the size of the BIA workforce would be a result of specific tribal requests for services. It would be necessary to establish some broad parameters in that the use of the funds would have to be legal; that it comport with certain minimum standards with respect to protection of individual rights and public safety; that programs contracted to the Bureau not include requirements which civil servants are not otherwise allowed to perform; and that sufficient advance notice be given for any new program to be contracted to the Bureau so that appropriate staff could be made available.

While these recommendations sound fairly straightforward, I do not underestimate the time and effort that would be involved in reaching a consensus with the tribes and the Congress in identifying those specific activities required to meet the statutory responsibility, or in devising a fair way to distribute the remaining federal resources. Such an undertaking could, however profoundly affect the way the Bureau of Indian Affairs currently operates and would better enable the Department and the Bureau to carry out their responsibilities once we have all agreed on exactly what those programs should be.

It would also provide much needed changes by making self-determination truly meaningful. Responsibility would properly be placed at the tribal level for the design and oversight of programs that respond to local needs. Such action would be consistent with President Reagan's 1983 statement on American Indian policy, which reinforced the policy developed during the Nixon Administration endorsing self-determination and government-to-government relationship with Indian tribes. A policy statement without a concomitant change in structure and direction to implement the policy, has hampered the ability of the Federal government to meet the raised expectations of the Indian people.

True self-determination cannot be limited to programs designed 50 years ago -- or even those designed 15 years ago. Those programs and delivery systems represent Washington's view of what is needed or what will work on reservations; and, being Bureau-wide programs, they also operate on the assumption that what works on the Navajo reservation should work on the Mississippi Choctaw reservation.

True self-determination must mean more, and it is time to revisit the concepts of self-determination and self-government -- not merely to tinker with the law which maintains a contractual relationship between the Bureau and the tribes within. The limitations imposed by pre-established funding levels for specific programs. It is time to give the tribes the responsibility they seek. That concludes my opening statement, Mr. Chairman. We are prepared to discuss the issues raised in the news articles, as well as other matters the Committee may wish to address. While we would have written the news articles differently, at least what was written gives us the opportunity to respond to these concerns.

Interior Assistant Secretary Ross Swimmer Thursday told Senator James McClure that every option will be examined before a final decision is made concerning the relocation of the Bureau of Indian Affairs (BIA) agency office in Lapwai.

“I assured Senator McClure that we would look at remodeling the present site; other sites in the area; or new construction. We will not make a decision until all of those have been considered,” Swimmer said.

Swimmer's action came about after press reports circulated earlier in the week that a move to Spokane, Washington was being considered because of structural and other problems with the present Agency headquarters owned by the local school district in Lapwai. Senator McClure asked Swimmer to reconsider the move out of the state and to examine every option that was available to the Agency that provides services to the Nez Perce, Coeur D'Alene and Kootenai Indian tribes.

Swimmer said that an asbestos problem in the building has been temporarily abated and that any further needed repairs will be discussed with the General Services Administration (GSA), the Federal agency responsible for filling the space needs of all Federal agencies. “Now that we have been assured by the school district that owns the building that we can remain there, we have asked GSA to look further for suitable space in Lapwai,” he said.

Swimmer said he would notify Senator McClure as soon as an evaluation is completed which is expected to take about 60 days.

Ownership of the 170-acre campus of the former Intermountain Indian School in Brigham City, Utah will be formally returned to the city in a ceremony to be held in the City Hall January 28.

John W. Fritz, the Interior Department's Deputy Assistant Secretary for Indian Affairs, will give Mayor Peter C. Knudson a quit claim deed to the Congressman James V. Hansen CR. Utah) and the Brigham City council will be present.

The transfer of the land, originally donated by the city to the United States in 1942, is in accord with a federal law enacted August 27, 1984. Congress had directed the closing of the school by June of 1984 because of declining enrollments in Bureau of Indian Affairs off-reservation schools.

The land was first used by the United States in World War II as the site of the Bushnell Military Hospital. The city, at that time, also provided power, water and sewer lines, paved roads, and sand and gravel for building construction. A 3,700 bed hospital was completed in 1943 and was used by the Army until 1946.

In 1949 the land and buildings were transferred to the Bureau of Indian Affairs to be used as a temporary school to help meet a greatly increased post-war demand for education on the Navajo reservation. At first the Intermountain school was used by Navajo students who were overage for their school grade level. It subsequently became a vocational 'training school for students from many tribes and Alaska and, more recently, provided a full high school program. At its peak, the school had an enrollment of about 2,300.

A spokesman for the city said the property will be developed for use as an industrial/business park.

The President's 1986 budget request for the Bureau of Indian Affairs continues to stress the basic goals of strengthening tribal government, encouraging economic development and providing essential program services on the reservations.

The $927.4 million requested includes increases for school operations, tribal courts, welfare grants, services to newly recognized tribes, and the loan guaranty program under the recently amended Indian Financing Act:. There will also be increases for support funds for tribal contracting of reservation programs, for water policy implementation in the northern plains and for cadastral surveys in Alaska to expedite the transfer of land to Native corporations and individuals.

Two programs initiated in 1983, one to assist small tribes develop needed management skills and the other to provide "seed money" grants for reservation enterprises, will maintain funding levels increased in 1985 to $4.9 million and $9.8 million respectively. The request for $47.6 million for law enforcement on the reservations similarly reflects an $8.8 million increase received in 1985.

The 1986 budget request represents a reduction of $66.3 million from the 1985 appropriation of $993.7 million. The two major areas of retrenchment are construction --cut back $43.2 million --and the Johnson-O'Malley (JOM) program of education assistance to public schools --reduced from $25.7 million to zero.

The JOM funds are distributed to public schools and school districts enrolling substantial numbers of Indian students. It is supposed to be used for special supplemental programs for the Indians. A BIA education spokesman said this program was considered expendable because similar supplemental assistance is provided in the public schools through programs funded by the Department of Education and the Department of Health and Human Services. He added that reports by the General Accounting Office and the Interior Inspector General have indicated, "also, that in many cases JOM funds have been used for basic public school activities, not aimed at the unique needs of Indian students.

Construction funding is requested only for ongoing projects, with no new starts planned for 1986.

The reservation road construction program of the Bureau will be funded by a $100 million allocation of contract authority from the Highway Trust Fund of the Department of Transportation. These funds are in addition to those in the BIA request.

A change, mandated by Congress, in the way contract support funds are listed in the budget request makes a line item by line item comparison with the 1985 appropriation misleading.

In 1985, contract support funds totaling $35.9 million were listed separately in their own line item categories. In 1986, the contract support funds are lumped together with program monies. This has the effect of making program increases seem larger than they really are and making it appear that some programs received increases when, in fact, they did not.

Contract support funds are used for overhead or administrative costs of programs operated by tribal groups under contracts with the BIA.

Secretary of the Interior Don Hodel has signed into existence a Royalty Management Advisory Committee, a key element of the Department's action plan to improve the processing of mineral royalties collected on federal and Indian lands.

"The committee members will represent those parties directly affected by the federal Royalty Management Program --the States, Indian Tribes, and individual Indians who receive royalty payments, as well as industry and the general public," Hodel said. "They will be an invaluable and well qualified source of guidance for me on matters that concern royalty participants."

The establishment of the committee is one of the major steps called for in the Department's recently announced Royalty Management Action Plan, which is aimed at providing quicker, more efficient and accurate processing of mineral revenues from federal and Indian leases. The Department's Minerals Management Service (MMS) is responsible for handling these revenues, which in 1984 amounted to more than $9 billion.

"It's very important to get the committee in place and functioning as soon as possible," Hodel said. "It’s advice will help tremendously in implementing other elements of the action plan."

Other features of the action plan include the installation of a new computer system to improve accounting, the establishment of a Lease Management Board to review all Departmental lease management policies, and steps to improve relations with States and Indian Tribes. According to its charter, the committee will initially address such issues as future systems design, funding guidelines for programs that delegate auditing authority to State and Indian governments, and product valuation regulations.

The committee will have no more than 31 members, who will serve on a non-reimbursable basis. Recommendations for membership are being solicited by the Department from affected States, Indian Tribes, industry, and the public. The nominating process is expected to be completed by August 31, and the first meeting of the committee may be held as early as October.

Secretary of the Interior Don Hodel said today he has sent letters to the Pueblo of Santa Ana and to the New Mexico Attorney General rejecting the Pueblo's proposal to conduct parimutuel wagering on greyhound dog races on reservation land.

The Secretary said he recognizes the proposal was intended to raise income to accomplish "a variety of worthwhile and important objectives" for the reservation, but "it would be irresponsible for me silently to acquiesce in the Pueblo's engaging in activities which specifically have been called to my attention and which appear to violate federal criminal law."

Last November the Pueblo submitted to the Secretary a proposal to build a dog racing track on reservation lands near Albuquerque. Although the Pueblo later withdrew the request for Secretarial approval, news reports indicated that the Pueblo was proceeding with plans for the dog racing enterprise. The initial issue was whether parimutuel wagering on dog races is a violation of New Mexico and federal law.

Because a potential violation of federal criminal law is indicated, Hodel said he would refer the matter to the U.S. Justice Department.

Hodel, in his letter, said that "both an analysis of the gambling laws of the State of New Mexico and appropriate deference to the construction of such laws by the New Mexico Attorney General" caused him to conclude that betting on dog races would violate New Mexico's criminal laws and, therefore, would violate the federal Assimilative Crimes Act (ACA), which applies State criminal laws to Indian reservations.

Referring to the Pueblo's proposed lease of its reservation lands and to a proposed contract with an individual from Abilene, Kansas to manage the dog races, Hodel said that "since the proposed gambling activities would violate federal criminal law, I will not approve either the lease or the management contract." In response to public statements by attorneys for the Pueblo and for the manager indicating that the gambling project would proceed without Secretarial approval, Hodel said, "Because I will not acquiesce to a potential violation of federal criminal law nor ignore in these circumstances federal statutes requiring Secretarial approval of the lease and contract, I am referring this matter to the Attorney General of the United States."

Hodel's letters were delivered Tuesday as he was in New Mexico for a two-day visit which includes a meeting with the All Indian Pueblo Council.

Before leaving Washington last week for a month-long western trip, Hodel told a news conference that attempts by Indian tribes to engage in gambling operations such as parimutuel wagering that are in conflict with State laws could jeopardize Indian bingo enterprises already in existence on many reservations across the country.

"I believe that Indian bingo has been extremely significant for about 85 reservations," Hodel said at the news conference. "It is one of the few sources of income for some of those reservations which basically have no other resource."

In his letter rejecting the Pueblo of Santa Ana proposal, Hodel noted that the objective of the planned enterprise was to obtain "badly needed funds for services to its people and economic development on the reservation so as to enable employment opportunities and improved lifestyle." The Secretary said, however, that despite the laudable objectives he could not approve any gambling operation that would be in conflict with federal laws.

Secretary of the Interior Don Hodel said today he was "absolutely that the President had nominated Ross Swimmer for Assistant Secretary for Indian Affairs. “We are exceedingly fortunate that Mr. Swimmer is willing to accept this position,” Hodel said, "for he has extraordinary qualities of leadership and business experience vital to the success of U.S Indian programs.

"Ross Swimmer combines a solid knowledge of tribal and Indian affairs with understanding and skill in modern business management," Hodel said, noting that the nominee has served for 10 years as the Principal Chief of the Cherokee Nation of Oklahoma, which includes more than 67,000 registered members living mostly in 14 counties of northeastern Oklahoma. At the same time he was president of the First National Bank of Tahlequah.

"He is dedicated to helping tribes achieve economic success in a competitive society while preserving the rich Indian heritage," Hodel said.

Swimmer, 41, was appointed by President Reagan in 1983 as Co-Chairman of the Presidential Commission on Indian Reservation Economies.

Swimmer earned a political science degree in 1965 and a law degree in 1967 at the University of Oklahoma. From 1967 to 1972 he was a partner in an Oklahoma City law firm. He became general counsel for the Cherokee Nation in 1972, serving in that capacity until 1975 when he was elected Principal Chief. In 1974, he was named executive vice president of the First National Bank in Tahlequah and was promoted to president the following year.

He is a member of the Oklahoma and American Bar Associations, Oklahoma Historical Society, Oklahoma Industrial Development commission; Oklahoma Bankers Association; Chairman, Board of Directors of the Council of Energy Resource Tribes; and Executive Committee of the Boy Scouts of America in Eastern Oklahoma. He also is the president of Cherokee National Historical Society and Chairman of the Inter-tribal Council of the Five Civilized Tribes.

Swimmer and his wife Margaret, a Tulsa attorney, have two children.

Interior Secretary Don Hodel today pledged to work with tribal governments so that Indian reservations can share in economic prosperity and not be "islands surrounded by the rest of America."

Addressing a joint meeting of the National Congress of American Indians and the National Tribal Chairmen's Association in Tulsa, Okla., the Secretary also said that he does not plan to abolish the Bureau of Indian Affairs (BIA) or to establish an additional agency to take over Indian trust responsibilities now administered by BIA.

Hodel lauded President Reagan's selection of Ross Swimmer, Principal Chief of the Cherokee Nation, to be the new Assistant Secretary for Indian Affairs in the Department of the Interior. Swimmer is awaiting Senate confirmation.

"His knowledge of tribal and Indian affairs and his understanding and skill in modern business management will be of tremendous value in achieving success in America's Indian programs," Hodel said of the nominee.

Reaffirming President Reagan's commitment to Indian self-determination and a government-to-government relationship between the Department and the Tribes, Hodel said that if Tribes are to have strong, effective governments they will eventually have to develop sound tribal economies and set their own priorities.

"Only the Tribes can decide when they are ready to assume more independence and take on the responsibilities of self-determination," Hodel said.

"We recognize and accept that the progress and decision making must be individual to each Tribe," Hodel said. “We also recognize, as you must, that Indian Tribes are not and cannot be islands surrounded by the rest of America. and that economic, social and governmental development will progress as Tribes are able to take advantage of the strengths of the American economy.”

The Secretary said the Administration will continue supporting appropriations to help Tribes develop their economies and to allow Tribes to administer contracted programs.

"But Tribes cannot count on automatic financial increases," Hodel added "And new money --federal or local --will be available to Tribes that are willing to accept the challenge of economic, political and social development."

Hodel noted that Swimmer was co-chairman of the President's Commission on Indian Reservation Economies, and that following consultation with tribal leaders, "we plan to move forward on appropriate recommendations (of the commission), particularly additional procurement opportunities from the Federal Government, technical assistance for economic development and emphasis on Trust.

"I can assure you that the (commission’s) report did not mandate abolishing the BIA, but it did suggest more programs should be run by Tribes addressed immediately," Hodel said.

The Secretary said he did not expect to implement a recommendation of the commission for a separate agency to handle trust responsibility issues.

"A separate agency would result in a duplication of effort and loss of momentum and would not be in the best interests of the Tribes," Hodel said.

He said that one of Swimmer's top priorities after confirmation by the Senate will be to improve the BIA capability i~ administering its trust responsibilities.

"This Administration respects all treaties, acts of Congress and other agreements made with Indian Tribes and will administer its trust responsibility accordingly through the Bureau of Indian Affairs," Hodel said.

The Secretary emphasized, "We will continue our efforts to make the Bureau of Indian Affairs a well managed organization that is responsive to the needs of Indian Tribes and Indian people," Hodel said.

He said their is no plan to change the number of BIA field offices.

"Delegation of greater authority and responsibility to field offices coupled with more frequent and extensive communication with the fields should work to make the bureau more responsive to tribal needs" Hodel said.

Interior Secretary Don Hodel today announced the appointment of LaDonna Harris, a nationally known enrolled member of the Comanche Tribe, as the U.S. representative "to the Inter-American Indian Institute (III.).

"I am very pleased that a highly- qualified Indian woman with such close ties to the Indian community has agreed to serve in this important position," Hodel said. "I believe that her many years of service to the Indian people in this country will go a long way toward meeting the III goal of improving the conditions and the relations with the indigenous people throughout the Western Hemisphere.

A native of Oklahoma, Harris currently serves as president of Americans for Indian Opportunity (AIO) in Washington, D.C. AIO, an organization started by Harris 15 years ago, is a national Indian advocacy organization working to strengthen tribal governments. She also organized Oklahomans for Indian Opportunity and has served as a leader and advisor to various Indian advocacy organizations.

"I look forward to using the experience I have gained working with tribal leaders and the Indian community over many years in addressing the many issues confronting the indigenous people in the Western Hemisphere," she said. "I welcome the opportunity to make a contribution to the goals of the Institute, particularly during this time as we experience a resurgence of Indianness in this country arid throughout North America."

Harris previously served as a consultant to the Institute and participated in the 8th Inter-American Indian Congress in 1981 in Yucatan, including presentation of a technical paper on economic development. She also traveled to Guyana in 1983 to enlist that country as a member of the Institute.

Harris, 52, was appointed by President Johnson as a member of the National Indian Opportunities Council and continued service on that body under Presidents Nixon and Ford. She was appointed by President Carter as a member of the President's National Commission on Mental Health and chaired a task force on Indian health problems.

The Institute, established by international convention in 1940, is comprised of 17 nations. Its primary purpose includes dissemination of information to member nations in planning economic, social, educational and cultural improvements for Indians throughout the hemisphere. The Institute acts in a consultative and advisory capacity for the various national bureaus/institutes of Indian Affairs.

Harris replaces Dave Warren who resigned earlier this month and was appointed Secretary General of the 9th Congress now meeting in Santa Fe, N.M.

Sidney L. Mills, director of the Bureau of Indian Affairs' office of trust responsibilities, has been appointed director of the BIA's area office at Albuquerque, New Mexico, Ross Swimmer, Interior assistant secretary for Indian affairs announced today.

Mills, a member of the Oglala Sioux Tribe, served as the Albuquerque area director from 1978 to 1982, before coming to Washington for the position in trust responsibilities. Both positions are at the senior executive service level.

The Albuquerque area director is responsible for BIA operations and activities in New Mexico and Colorado, serving 19 Pueblo tribal groups, the Jicarilla and Mescalero Apache Tribes, the Southern Utes and Ute Mountain Utes, and the Ramah Navajo reservation. Mills is expected to begin his new duties early in 1986.

A Navy veteran, Mills entered federal service in 1973. His experience includes a six month stint in 1980 as the acting deputy assistant secretary for Indian affairs and a similar detail in 1979 as the acting deputy commissioner for the BIA. He has been executive assistant to the commissioner, acting deputy area director and contracting officer for the Bureau's area office in Aberdeen, South Dakota.

Prior to 1973, he served in the private sector as a purchasing manager for the Great Western Sugar Company; merchandise control manager, Creative Merchandising, Inc., and purchasing manager for the Sundstrand Aviation Company, all in Denver, Colorado.

The Albuquerque position has been vacant since August 30, 1985 when former area director Vincent Little retired.