According to the Kahnawake Branch of the Mohawk Nation, the men who signed this agreement were "not supported by the people, they were negotiating away everyone's rights in favour of the state. They were going against their own people. Chiefs are being removed by the people, and some would like to rescind their signatures from the documents signed, although they knew the affect that their signing would have....The State has violated the economic sovereignty of our people and our land, it is not the state that should be negotiating with the Confederacy, it is President Bill Clinton's responsibility. The effects will be extreme poverty, welfare, theft, people will not be able to pay their mortgages - due to no employment. You get the picture. These people have not felt anything like this up to this point. It will be extremely hard for them. The State has not devised any sort of structure to replace this, and left the territories with nothing, yet the state of New York feels that they can take and take until there is nothing left. Our sovereignty is in jeopardy. These 'chiefs' have opened the door to the destruction of the Haudenosaunee Iroquois Confederacy's inherent right to sovereignty."

A traditionalist from Tonawanda writes, "This document was developed between the state and one or two member of the nations that have signed. At no time were the people of Tonawanda ever informed as to what our chiefs were doing. For that last five years all council meetings have been conducted in private by our chief. We are not allowed a voice in our government."]

IN THE SPIRIT OF THE 1794 Treaty of Canandaigua, the Haudenosaunee and the State of New York do hereby enter into this Interim Agreement for their mutual benefit and in order to reaffirm and further the mutual respect, peace and friendship that exists between them, and to promote trade and commerce among our peoples. The parties are negotiating towards a final agreement which they hope to have signed before the expiration of this Interim Agreement.

This Agreement affirms the sovereign status of the Haudenosaunee Nations, as recognized by the United States Federal Government and represents a binding committment on the part of the State of New York and the Haudenosaunee. Inherent in that committment is a recognition by the State of New York of the sovereign status of the Haudenosaunee Nations to engage in the trade and commerce within their territories. This agreement also recognizes the inherent right of the Haudenosaunee Nations to regulate, monitor and exercise control over all trade and commerce within their territories.

Additionally, this Interim Agreement concerns the operation of such trade and commerce by the Haudenosaunee Nations and the State of New York within such territories, relative to the sale of cigarettes and tobacco producats by the Haudenosaunee. Furthermore, this Agreement represents an affirmation by the Haudenosaunee not to engage in the sale of motor fuel or diesel motor fuel. This agreement shall become effective and binding when signed and acknowledged by authorized representatives of the Onondaga Nation, The Cayuga Nation, the Tuscarora Nation, and the Tonawanda Seneca Nation.

In this Agreement, as in Article I of the Canandaigua Treaty, the peace and friendship of the aforesaid parties is firmly established, and shall be perpetual between the parties.

Nothing in this Agreement shall be deemed to constitute a waiver of sovereign immunity.

The fact that the State has signed this agreement should not be interpreted as any indication that the State is ratifying the 1794 Canandaigua Treaty, which was made between the Six Nations of the Haudenosaunee and the United States Government.

I. LICENSING

A. Agreement to License. The Haudenosaunee agrees to license all manufacturers, wholesalers, distributors, transporters, and retailers who are allowed to engage inthe cigarette and tobacco products trade or business within the boundaries of the Haudenosaunee territories, The granting of licenses to such manufacturers, wholesalers, distributors, transporters, and retailers shall be in the sole discretion of the Haudenosaunee. For purposes of this Agreement, the term "license" shall also include permits that are issued by a Haudenosaunee Nation that permit a person to engage in business activities within the boundaries of the Nation's territory or to engage in the cigarette trade or business located within the boundaries of the Nation's reservation, provided that the requirements to obtain a permit comply with this Agreement. The Haudenosaunee agrees not to allow unlicensed manufacturers, wholesalers, distributors, transporters, and retailers to engage in the cigarette trade or business within the boundaries of the Haudenosaunee territories. The State shall not grant licenses for the purpose of affording any person or entity the right to engage in the cigarette and tobacco product trade or business within the boundaries of the Haudenosaunee territories. The Haudenosaunee agrees not to engage in, or to license any person or entity to engage in, the sale or trade of motor fuel or diesel motor fuel products. The Nation's granting of a license shall not constitute permission by the Nation to sell or deliver cigarettes or tobacco products to any entity doing business within the Nation's territory without first obtaining permission from the Nation for the quantity to be delivered.

B. Evidence of License. When granting a license, the Haudenosaunee agrees to provide the licensee with written evidence that such license has been granted, the date the license was granted, the scope of the license (i.e. a manufacturers license, a wholesalers license, a retailer's license, a transporter's license), the product for which the license is being granted (cigarettes and tobacco products) and the expiration date of the license, if the Haudenosaunee chooses to limit the time that a licensee may engage in the licensed trade or business. The Haudenosaunee agrees that the written evidence of the license shall be uniform. The Haudenosaunee further agrees to provide the State with a proforma copy of the license or written evidence of a license that the Haudenosaunee will utillize to grant such licenses.

C. Information Sharing with the State. The Haudenosaunee agrees to inform the State in accordance with the provisions of this Agreement of any new licensees, revoked licenses, and changes to an existing license.

A. Interim Period Stamping. During the period of the Agreement, the Haudenosaunee agrees to authorize its licensees to sell only packs and cartons of cigarettes containg the State of New York Tax Exempt Stamp. The State of New York agrees to provide the Haudenosaunee with adequate Tax Exempt Stamps to cover that quantity of cigarettes owned by the Haudenosaunee and housed on the Nation territory as of April 1, 1997. So that the State may know who many Tax Exempt Stamps the Haudenosaunee will need, the Haudenosaunee agrees to provide the State of New York with a full accounting of the quantity of cigarettes owned by the Haudenosuanee and housed on the Nation territory as of April 1, 1997. This accounting shall be provided to the State, in full, within two business days of the effective date of this Agreement.

B. Sovereign Authority to Stamp Product. The Haudenosaunee agrees to exercise its sovereign authority to ensure that each package of cigarettes offered for sale within the boundaries of Haudenosaunee territories bears a Haudenosaunee stamp, or New York tax exempt stamp, regardless of whether the product is imported onto the Haudenosaunee territories by the Haudenosaunee or any other person. The authority to stamp, order and distribute product shall be vested with the Haudenosaunee and may not be delegated.

C. Sales of Cigarettes. The Haudenosaunee agrees that all cigarettes that are offered for sale within the boundaries of the Haudenosaunee territories shall be required to be taken by the purchaser at the time of the sale. The Haudenosaunee further agrees, that, except when sales are being made by a cigarette manufacturer, wholesaler, or distributer to the Haudenosaunee acting as a distributor of Product, no sales shall be made by the Haudenosaunee, or a licensee of the Haudenosaunee, via electronic transfer, (such as, but not limited to, the Internet, the telephone wires, cellular technology, and cable) or where delivery is made of the purchaser through common carrier, the United States Post Office, or any mail or package carrier.

D. The Haudenosaunee Stamp. The Haudenosaunee stamp will be a stamp that is designed by the Haudenosaunee, provided that the stamp shall not be similar (either in design or color scheme) to any stamps used by any states, Indian Nations, or foreign nations, or any political subdivision thereof, bordering on New York or by any low-tax or no-tax states, foreign nations, or any political subdivision thereof. The Haudenosaunee agrees to obtain the Haudenosaunee stamps from the vendor with which the state has its stamp production agreement (which is currently the Meyercord Company) and to affix such stamp to all unstamped cigarettes imported to or sold within the boundaries of the Haudenosaunee territories. In recognition of the need to eliminate "bootlegging" and the use of fradulent Haudenosaunee stamps, the Haudenosaunee agrees to use equipment leased or purchased from the vendor with which the State has its stamp production agreement when affixing the Haudenosaunee stamps to the product. The vendor has the right to share all information pertaining to this Agreement with the State of New York.

E. Presumption of Contraband. The parties agree that any cigarettes discovered within the boundaries of the Haudenosaunee territories that do not bear the Haudenosaunee stamp, the State's tax stamp or the State's tax-exempt stamp shall be presumed to be contraband unless such product is located in a warehouse exclusively controlled by the Haudenosaunee. Further, any motor fuel or diesel motor fuel for which the amounts to be remitted under this Agreement have not been remitted are presumed to be contraband. As contraband, cigarette, motor fuel, and diesel motor fuel product is subject to seizure or forfeiture.

A. Manufacturer, Distribution, and Transportation Licensees

1. Within five business days of the enforceability date of this Agreement, the Haudenosaunee agrees to share with the State, a current list of the manufacturers, wholesalers, distributors, and transporters who are licensed by the Haudenosaunee to engage in cigarette trade or business with the Haudenosaunee, any of the members of the Haudenosaunee, or within the boundaries of the Haudenosaunee territories, This list will be updated on a weekly basis during the term of this interim Agreement.

2. With respect to each such licensed maunfacturer, wholesaler, distributor, and transporter, the information provided by the Haudenosaunee to the State shall contain the following items: (a) the name under which the business operates and if different, the business' legal name, (b) the business address, and (c) the legal name, address and telephone number(s) of the business owner(s).

3. The Haudenosaunee agrees that, within five business days of licensure, revocation of a license, return of a license, or change in any of the information previously supplied to the State, the Haudenosaunee will inform the State of such additions, deletions, or amendments to the information previously provided to the State.

B. Store List

1. Within five business days of the effective date of the Agreement the Haudenosaunee shall provide the State with a current list of all retail businesses operating on theHaudenosaunee teritories that are licensed by the Haudenosaunee to engage in the cigarette trade. Changes to this list will be updated on a weekly basis during the term of this interim Agreement.

2. With respect to each such licensed retail business, the information provided by the Haudenosaunee to the State shall contain the following items: (a) the name under which the business operates, and if different, the business' legal name: (b) the business address: and (c) the legal name , address and telephone number(s) of the business owners(s).

C. Distribution and Sales Reports. The Haudenosaunee agrees to file bi-weekly reports with the State that disclose the distribution of cigarettes within the Haudenosaunee territories. The reports shall contain:

1. The name and business address where the cigarettes are received by the Haudenosaunee, any of its members, or any business operating with the Haudenosaunee territories. The date of transaction, the type of transaction (purchase, return of product), the amounts of product received or returned for each transaction, the names of the seller and purchaser (or consignor and consignee, if applicable), and invoice numbers are to be specifically stated.

D. Information to be provided by the Haudenosaunee. Upon a request for information from the State the Haudenosaunee agrees to provide the State with any information that the Haudenosaunee has in its possession, provided that the information being requested by the State will be used by the State in the enforcement and administration of its laws. The Haudenosaunee further agrees to inform the State immediately upon any sale of cigarettes to an individual of more than (30) cartons of cigarettes within a twenty-four (24) period. Such notice may be verbal, provided that the confirmation is made in writing.

E. Secrecy of Information Shared with the State. Any and all information received from the Haudenosaunee shall be subject to the Laws of Secrecy governing the disclosure of information by the State Department of Taxation and Finance.

A cigarette compliance team shall be appointed to ensure compliance with the provisions of Section VI and to investigate any alleged violations of Section VI. The compliance team shall have the authority to investigate alleged violations both on and off the Nations territory. The cigarette compliance team will consist of two members, one being selected by the Haudenosaunee and one being selected by the State. Within two days of the receipt, by the Haudenosaunee or the State, of a complaint alleging a violation of Section VI, the compliance team shall meet and investigate the complaint. Upon completing its investigation, the compliance team shall file a report of its findings with the State and with the Haudenosaunee Ntion where the investigation occurred. Such report shall be filed no later that 24 hours after the investigation has been conducted. Within two days of filing of a report concluding that a violation of Section VI has occurred, the Haudenosaunee Nation shall notify the violator of its right to a hearing to determine what penalty will be assessed, such hearing to be conducted within thirty (30) days in accordance with the Nation's laws. The hearing will determine if the license will be suspended or revoked, or if another penalty will be assessed. The Haudenosaunee shall notify the State of the determination of the hearing and of the penalty to be assessed for the violation.

A. The Haudenosaunee shall agree to make reasonable good faith efforts to ensure the enforcement of this Agreement within the boundaries of its territory. The Haudenosaunee further agrees, pursuant to its Laws and procedures, to use its best efforts to seize unlicensed products in violation of this Agreement and prevent its distribution eithin the boundaries of the territory.

B. The Haudenosaunee further agrees to notify the State immediately of any seizure executed pursuant to this Agreement, and to provide to the State information relating to such seizure, including, but not limited to, the names of the person or company in possession of the contraband, and the make, model and registration of any vehicles seized, the amount of the product seized by the Haudenosaunee, the purported destination of said product, and the ultimate disposition of the matter pursuant to Haudenosaunee law.

C. The State of New York shall agree to make reasonable good faith efforts to ensure the enforcement of the Agreement. The State further agrees, pursuant to State and federal laws and procedures, to use its best efforts to seize unlicensed products in violation of this Agreement and prevent its distribution outside the boundaries of the Haudenosaunee territories and its introduction into these territories.

D. In the event that the State commences an action or investigation pursuant to this Agreement, against businesses or individuals operating in violation of the Agreement, or otherwise avoiding the terms of this Agreement, the Haudenosaunee shall provide to the State, to the fullest extent possible, all information in possession of the Haudenosaunee relating to such business or individuals.

E. In the event that the State beomes aware of individuals operating unlicensed business on the Haudenosaunee territories or transporting, purchasing or selling unlicensed or unstamped products or otherwise avoiding the terms of this Agreement it shall promptly notify the Haudenosaunee and provide to the Haudenosaunee, to the fullest extent possible, all information in possession of the State relating to such businesses in violation of the civil regulations addressed by this Agreement or individuals regarding such violations.

A. As a demonstration of good faith, the Haudenosaunee agrees to increase its selling prices for cigarettes and tobacco products to a reasonably acceptable level on the effective date of the Agreement with the objective of achieving an acceptable level of parity at the end of thirty (30) days.

B. The Haudenosaunee agrees not to sell diesel motor or motor fuel to anyone, either directly or through its licensees. Nothing in this Agreement will preclude the Naitons from obtaining tax exempt gasoline products for their citizens at a designated "nation pump" located near their territory.

C. For purposes of this Agreement, the volume of cigarettes sold shall not exceed that volume of the same sold on the Haudenosaunee territories during calenday year 1996.

The parties hereby agree that this Agreement shall be in effect for a period of thirty (30) days from the effective date of April 1, 1997. It is agreed that both parties shall use their best efforts to negotiate a separate Agreement that will be signed prior to the sunset date set in this Agreement, and that such agreement shall become effective upon the expiration of this Agreement.

The undersigned represent that they possess the requisite authority to sign and that they have the power to bind their respective governments to this Agreement

MICHAEL URBACH, COMMISSIONER
NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE

CHIEF ONONDAGA NATION

CHIEF TONAWANDA SENECA NATION

CHIEF TUSCARORA NATION

CHIEF CAYUGA NATION