Ka Wai Ola - Office of Hawaiian Affairs, Volume 4, Number 5, 1 May 1987 — ANCSA Considered Great Victory [ARTICLE]

ANCSA Considered Great Victory

By Sabra Kauka McCracken Editor's Note: The writer is a Hawaiian, born and raised in Hawaii who has lived and worked as a photojournalist in Anchorage, Alaska, for 12 years. She is responding to an article by Office of Hawaiian Affairs Trustee Moanikeala Akaka whieh appeared under Trustees' Views. Trustee Akaka's views were expressed in Ka Wai Ola O OHA under the heading, "Learn from Past Errors." "The following article is offered in halanee to that strongly negative view," McCracken explains. Trustee Moanikeala Akaka said that the Alaska Native Claims Settlement Act (ANCSA) of 1971 was a disaster, a failure. But to those who led the battle, ANCSA was considered a great victory. "We started with absolutely no recognition of Native ownership of land," said Arthur Lazarus, an expert in Indian Law with 30 years of experience fighting for Native tribes. The Supreme Court ruled in the Tee Hit Ton Case that the United States could wipe our aboriginal title without owing the Natives a dime, Lazarus told BristoI Bay Native Corp. (BBNC). Also, there was tremendous pressure from the state elaim to Alaska public land and from oil companies to drill. "If you think of all those threats that existed and then look at the first proposals that were made by Secretary Udall, a eap of $2.5 million and one-million acres, and compare that to what you actually won, almost $1 billion and 44 million acres of land! You couldn't get that today," Lazarus said. Sen. Ted Stevens, R-Alaska, also said that ANCSA was a real breakthrough in Indian law. "It gave Alaska Natives a ehanee to participate in the rapid 1970's expansion of the Alaska economy," he said. Akaka's elaim that "Native leaders allowed their people to be bilked out of land and money" is inaeeurate. Alaska Natives wanted, and asked for the land question to be settled; received the biggest settlement ever, understanding this would extinguish aboriginal title to the remaining land. The $1 billion and 44 million acres was divided between 12 regional corporations and some 220 villages. A 13th, non-land based, regional corporation based, regional corporation was formed, for those Alaska Natives who had moved out of state. Some village corporations later merged, with eaeh other or with their regional, to form stronger eeonomie units. This precedent setting full ownership of land brings the risk of losing it. Yet, only one village corporation, Haida Corp., and two regionals, Bering Straits and 13th Region, have declared Chapter 11 giving them time to reorganize. So, Akaka's statement that nearly all Alaska Native corporations are failing is, again, inaccuarate. A unique loophole in the new tax reform bill makes it possible for outside businesses seeking a tax shelter to buy the losses of Alaska's Native corporations leaving intact Native management and land ownership. Bering Straits and 13th Region have now sold their losses, sharing millions of dollars in tax savings with the purchasing companies. A bill arranging for the Haida Corp. to sell part of its

land in southeast Alaska to the Forest Service passed Congress and is waiting for President Reagan's signature. Haida may, alternatively, sell its losses to an outside company looking for a tax shelter. Doing spectacularly well is Cook Inlet Region with a 1985 net ineome of $25.782 million. Doing very well are NANA (Northern Alaska), Arctic Slope, AHTNA and Bristol Bay. Turning the corner are the Aleuts, Sealaska, Koniag, Doyon and Calista. Akaka criticized Calista for losing $6 million last year but they made $44 million and have $80.2 million in assets. To further stem the flower of red ink Calista this year sold Settlers Bay, a 1,726 acre real estate development in the economically depressed Matanuska-Susitna Valley. Calista Preisident Nelson Angapak speaks Yupik and is very sensitive to his traditional cultural values and his people's special relationship to the land. Angapak was instrumental in getting ANCSA passed. Delays in implementing ANCSA and in distributing settlement money caused some early financial problems, thus forcing Native leaders, who were just learning how to manage corporations, to spend tens of millions of dollars on legal services. At the recent Alaska Federation of Natives convention in Anchorage some 2,500 representatives of regional and village corporations met for three days to discuss ANCSA amendments. The major questions before Alaska Natives are what to do in 1991 when stock restrictions and protection from undeveloped land taxes lapse. They are also seeking to include "New Natives," those born after 1971, in their corporations. "We're spending a lot of time, effort and money to understand the implications of 1991 and to amend ANCSA," said Sue Gamache, Calista shareholder. "We're also finally seeing the results of our intern and scholarship programs as our shareholders get college educations and skills to run the corporations. You have to give us time to leam."