B737 LNDG AT ANC DESCRIBED POTENTIAL CONFLICT WHEN TWR ISSUED CLRNC TO LIGHT TWIN ARR FOR RWY 7R TO CIRCLE TO RWY 32; CLRNC CHANGED TO GAR.

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WE WERE CLRED FOR A VISUAL APCH TO RWY 7L ANCHORAGE. A B747 WAS CLRED FOR A VISUAL APCH TO RWY 7R. 6 MI AHEAD OF US. AN ACFT WAS THEN CLRED FOR A VISUAL APCH TO RWY 7R. (ACFT Y) AND APPEARED TO BE A 2-ENG LIGHT TWIN. ACFT Y WAS BEHIND US AND TO THE SW. ANC APCH GAVE ACFT Y APPROVAL TO PASS US! ACFT Y PASSED US INSIDE FIRE ISLAND AT WHAT WE ESTIMATE WAS A SPD OF AT LEAST 180 KTS. CURRENT WINDS ALOFT OVER FIRE ISLAND WERE OUT OF THE N AT 25-30 KTS (A DIRECT XWIND). AFTER SWITCHING TO ANC TWR; WE WERE CLRED TO LAND ON RWY 7L. ACFT Y WAS CLRED TO LAND; LONG; ON RWY 7R. THE B747 WAS TOLD TO HOLD SHORT OF RWY 7R AT INTXN C HOWEVER THERE WAS SOME CONFUSION WITH THE B747'S CLRNC TO HOLD SHORT. THE B747 READ BACK 'HOLD SHORT RWY 7R.' NOW ACFT Y WAS SCREAMING IN ON THE THRESHOLD OF RWY 7R WITH CLRNC TO LAND LONG WITH THE B747'S ENGS BLOWING ACROSS THE DEP END OF RWY 7R. TWR REALIZED THEY HAD SCREWED UP BY CLRING ACFT Y TO LAND RWY 7R WITH THE B747'S REAR END NEARLY HANGING ACROSS THE DEP END OF RWY 7R SO (HERE'S THE UNSAFE PART) HE ASKED ACFT Y IF HE COULD LAND ON RWY 32 WHICH WOULD HAVE REQUIRED HIM TO CUT IN FRONT OF US WITH LESS THAN 2 MI SEPARATION. ACFT Y SAID HE COULD DO IT. HAD HE CLRED ACFT Y TO LAND ON RWY 32 I WOULD HAVE NO CHOICE BUT TO GO AROUND DUE TO SAFETY. AT THE LAST SECOND TWR INSTRUCTED ACFT Y TO GO AROUND WITH BROKEN AND IMPROPER PHRASEOLOGY. ACFT Y COMPLIED. THIS WHOLE MESS WAS CREATED BY BOTH ANC APCH CTL AND ANC TWR WHICH WAS A HUGE DISTR TO US ON SHORT FINAL WITH A 20 KT DEMANDING XWIND LNDG. THE WHOLE MESS COULD HAVE BEEN AVOIDED WITH ANC APCH IF THEY JUST HAD INSTRUCTED ACFT Y TO SLOW AND FOLLOW US TO THE ARPT. PROPER HANDLING OF ACFT BY ANC APCH AND ANC TWR.