FOR IMMEDIATE RELEASE                                         OTJ
THURSDAY, JULY 24, 1997                            (202) 616-2765
                                               TDD (202) 514-1888
                                 
       RENO STRESSES NEED FOR MORE ECONOMIC OPPORTUNITY IN
  INDIAN COUNTRY, AND RENEWS SUPPORT FOR TRIBAL SELF-GOVERNMENT

     WASHINGTON, D.C. -- Speaking to Native American tribal
leaders and banking industry representatives, Attorney General
Janet Reno today stressed the need for more banking and economic
opportunities in Indian country, urged bankers and tribal leaders
to honor the nation's fair lending laws, and pledged renewed
support for tribal self-government.

     At a conference, sponsored by the Justice Department's
Office of Tribal Justice and the Treasury Department's Office of
the Comptroller of the Currency, Reno spoke about the need for
economic development in Indian country, fair access to credit,
and tribal self-government.

Economic Development     

     Reno stated that government and tribal leaders must work
together to encourage more economic opportunities for Native
Americans.

     "Historically, lenders were reluctant to finance mortgages
in Indian country, but recently, statutes have eased the
requirements for mortgage lending in Indian country, and new
federal programs are creating a secondary market for Indian
country mortgages," said Reno, at the Conference on Banking in
Indian Country.

     But Reno noted that many Native Americans and Alaska Natives
continue to be among the poorest people in the nation.  On some
of the larger reservations unemployment is above 50%, and more
than 40% of Native American and Alaska Native children under age
five fall below the poverty line.

     "We all need to work together to spur banking, investment,
and economic opportunities in Indian country," added Reno.

Fair Lending

     During the conference, which was designed to educate tribal
leaders about federal banking laws and bankers about lending in
Indian country, Reno also stressed the need for all Native
Americans to be able to obtain credit.

     "Every community needs fair access to credit, including
American Indian communities," said Reno.  "Credit is crucial to
Indian tribes because the need for economic development is so
great in Indian country."

     Highlighting the Justice Department's efforts to ensure fair
access to credit, Reno noted a recent case.  Last May, the
Justice Department reached a settlement with a bank in Nebraska,
which resolved allegations that the bank unfairly charged
American Indian borrowers higher interest rates for consumer
loans.  Under the agreement, the bank agreed to create a $275,000
fund to compensate victims, develop credit related education
programs on the reservation and recruit qualified tribal members
to work at the bank.

     "All bankers and tribal leaders should work to ensure that
the spirit of the fair lending laws are honored."

Tribal Self-Government

     Also, Reno said that the Justice Department is redoubling
its efforts to support tribal courts, tribal police and
institutions of tribal government.  She noted that President
Clinton has directed executive branch agencies to work with
Indian tribes to support tribal self-government.

     "Our goal is to assist tribal governments to take their
rightful place in our nation's family of governments, and to help
Indian communities to secure safe, healthy, productive lives for
their families and their children," said Reno.

     Reno noted that Justice Department provides support for
tribal governments in litigation before federal courts, makes law
enforcement and crime prevention programs available to tribal
governments, and offers information about funding, and training
for tribal judges.  Last year, the Office of Justice Programs
awarded more than $1 million to support drug court efforts.      

     "The federal government is committed to promoting tribal
self sufficiency and economic development," said Reno.
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