VANCOUVER — High unemployment remains a major problem for the Nisga'a, but spokesmen for the three parties involved in the historic treaty are optimistic about the future of the B.C. First Nation.

Almost three years have passed since the Nisga'a Nation of the isolated Nass River valley in northwestern British Columbia signed the landmark treaty _ the first in about a century in a province still struggling towards settlements with other First Nations.

Despite opposition from many British Columbians and successive provincial governments, the Nisga'a and the B.C. and federal governments finally reached an agreement and the treaty took effect in May 2000.

In the second annual report, called Prosper, the three parties pointed to some progress.

The report shows an increasing number of Nisga'a -- as well as non-aboriginals -- are creating economic opportunities for themselves in the Nass Valley, particularly in fisheries and forestry.

But the lagging economy provincewide also affects the Nisga'a, Nisga'a president Joe Gosnell said Thursday.

"The unfortunate aspect of the entire Pacific Northwest -- with the softwood (dispute with the United States) has an impact on our people in the Nass Valley," said Gosnell.

Unemployment reported in the first annual report was in the 80 per cent range, occasionally dipping into the 70s, he said. He had no current figures for the latest report, but said jobs were being created.

The forest sector is the current lifeblood of the Nass, primarily because it operates on a yearly basis, while fisheries also contribute but are more seasonal, he said.

Additionally, the treaty calls for improvements and paving of the highway that connects Terrace, the nearest community, to the valley.

That construction has meant that 30 per cent of the workforce, or 10 workers, have been hired from the Nass Valley.

There are about 5,000 Nisga'a, about half of them still living in the Nass Valley.

British Columbia is the only province in Canada that, for the most part, did not negotiate treaties with aboriginals. Now the entire provincial land base is claimed by First Nations in more than 50 treaties in negotiation.

The Nisga'a treaty gives the Nisga'a ownership of about 2,000 square kilometres in the valley and self-government powers in many areas.

The deal is worth about $500 million in cash, grants and program funds, including $190 million in cash.

Peter Baird, a treaty negotiator and spokesman federal Indian and Northern Affairs, estimated the unemployment rate among Nisga'a has dropped by between 10 and 12 per cent since the treaty was implemented.

"The report highlights the kind of Nisga'a participation in the fisheries, the resource sector, the pine mushroom harvest and the employment generated on road construction," said Baird.

"Those are three things that have boosted their local economy."

In the entire Nass Valley there are now only a handful of bed-and-breakfast accommodations along with camping facilities but no hotels, motels or resorts.

The Nisga'a so far have emphasized getting infrastructure in place for their immediate needs, said Baird.

They have built a new government building, recreation centre and a larger cultural and visitors' centre.

"Now the priorities are to get people working in the resource sector which are critical to them, like the fisheries and the logging and they are focusing on that now."

Some other highlights cited in the report include:

-- Salmon caught by the Nisga'a brought in $386,126 to Nisga'a fishermen and $162,908 to their government while employing more than 100 people in Nisga'a fisheries. Sixteen Nisga'a received training in swift water rescue;

-- Much of the 74,469 cubic metres of wood harvested was taken by the Nisga'a-owned Laxgalt'sap Forest Corp, employing 30 people.

-- More than $1.3 million was added to the local economy through the harvest of the world-famous pine mushrooms in the valley.

The B.C. government will do its part to try to ensure the treaty's success, despite the Liberals' opposition to the treaty signed while they were in opposition, Attorney General Geoff Plant, minister responsible for treaty negotiations, said Thursday.

But Plant also suggested the province is still opposed to the wide-ranging self-government aspects of the treaty.

"We have public support from (last year's) referendum for a set of (treaty) principles that I think would result in treaties that are somewhat different from the Nisga'a treaty," he said.

"But we are also prepared to accept the reality of the Nisga'a agreement and do what we can to help make it work."