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HRD-81-97 1 (1981-05-14)

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    UNITED STATES GENERAL ACCOUNTING OFFICE
            WASHINGTON, D.C. 20548

RELEASED


May 14, 1981


115808


The Honorable John M. Ashbrook
Ranking Minority Member
Committee on Education and Labor
House of Representatives


Dear Mr. Ashbrook:


LAlaska Comm rcial Company's Activities Regarding
Competition       ther         After Acquisition
by Community Services Administration Grantee
(HRD-81-97)


     Pursuant to your December 16, 1980, request, we developed
information regarding allegations that an Alaskan business venture,
CEDC Sales, Inc., doing business under the name Alaska Commer-
cial Company (ACC), had obtained a significant competitive edge
and unfairly challenged privately financed grocery businesses by
receiving Federal funding provided through a Community Services
Administration (CSA) grantee. The grantee--Community Enterprise
Development Corporation of Alaska (CEDC)--is a rural development
corporation formed in 1968 and funded by CSA under title VII of
the Economic Opportunity Act of 1964, as amended.

     The information we developed was provided in an April 28,
1981, briefing to Committee staff. We understand that this in-
formation will be used in ongoing deliberations on H.R. 3045, a
bill to amend the Economic Opportunity Act of 1964 (42 U.S.C. 2701
et seq.) to reauthorize, among other things, title VII of the act
relating to community economic development.

     We obtained information on the specific topics mentioned in
your December 16 letter primarily through discussions with offi-
cials from CSA's Office of Economic Development in Washington,
D.C.; the CSA grantee, CEDC, in Anchorage, Alaska; and the ACC
headquarters office in Kent, Washington. Available documentation
was obtained at these locations.

                                                           (013972)


.. - I / ii


HUMAN RESOURCES
   DIVISION


B-203155


Subject:


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