Wayzata World Factbook 1996/The World Factbook - 1996 Edition - Wayzata Technology (3079) (1996).iso/pc/mac/backgrou.nd_/cards.xml

Text File | 1996-02-09 | 3MB | 3,288 lines

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        <text>U.S. Department of StateBackground Notes:  Taiwan, November 1995Bureau of Public AffairsNovember 1995Name: Taiwan  PROFILE  Geography  Area: 14,000 sq. mi.; about the size of West Virginia. Cities: Capital--Taipei (pop. 2.6 mil-lion). Other cities--Kaohsiung (1.4 mil-lion), Taichung (832,654). Terrain: Largely mountainous. Climate: Maritime subtropical.  People  Population (1994): 21 million. Annual growth rate: 0.9%. Languages: Mandarin Chinese (official), Taiwanese, Hakka. Education: Years compulsory--nine; Attendance--99.9%. Literacy (1994)--95%. Health: Infant mortality rate--0.5%.  Life expectancy (1994)--male 72 yrs.; female 78 yrs. Work force: 9.2 million.  Political Establishment  Type: Multi-party democracy.  With the direct presidential elections scheduled for 1996, Taiwan will complete its transition from a one-party, authoritarian state to an open, vigorous democracy with three major parties and more than 70 registered parties. Constitution: December 25, 1947. Branches: Five Yuan--Executive, Legislative (parliament), Judicial, Control, Examination. Separate National Assembly has certain powers regarding appointment, impeachment, and constitutional amendment but has no general legislative functions. Administrative subdivisions: Taiwan Province, Fujian Province (for Kinmen and Matsu islands), Taipei and Kaohsiung Special Municipalities. Major political parties: Chinese Nationalist Party (Kuomintang or KMT); Democratic Progressive Party (DPP); Chinese New Party (CNP). Suffrage: Universal over 20 years of age.  Economy  GDP (1994): $244.2 billion. Annual growth rate (1994): 6.5%. Per capita GDP (1994): $11,600. Natural resources: Small deposits of coal, natural gas, limestone, marble, and asbestos. Agriculture (3.6% of GDP): Major products--pork, rice, betel nut, sugar cane, poultry, shrimp, eel. Industry (37.4% of GDP): Major sectors--electronics and computer products, chemicals and petrochemicals, basic metals, textiles, transport items, plastics, machinery. Trade (1994): Exports--$93 billion: electronics and computer products, textile products, basic metals, plastic and rubber products.  Major markets--U.S. 26%, Hong Kong (including indirect trade with the P.R.C.) 23%, Japan 11%.  Imports--$85.4 billion: electronics and computer products machinery and electrical products, chemicals, iron and steel, transport equipment, crude oil.  Major suppliers--Japan 29%, U.S. 21%, Europe 19%.  THE U.S. AND TAIWAN  On January 1, 1979, the United States changed its diplomatic recognition from Taipei to Beijing.  In the United States-People's Republic of China Joint Communique that announced the change, the United States recognized the Government of the People's Republic of China (P.R.C.) as the sole legal government of China and acknowledged the Chinese position that there is but one China, and Taiwan is part of China.  The Joint Communique also stated that within this context, the people of the United States will maintain cultural, commercial, and other unofficial relations with the people of Taiwan.On April 10, 1979, President Carter signed into law the Taiwan Relations Act (TRA), which created domestic legal authority for the conduct of unofficial relations with Taiwan.  U.S. commercial and cultural interaction with the people of Taiwan is facilitated through the American Institute in Taiwan (AIT), a nongovernmental entity.  The Institute has its headquarters in the Washington, DC, area and field offices in Taipei and Kaohsiung.  It is authorized to accept visa and passport applications and to provide assistance to U.S. citizens in Taiwan.  A counterpart organization, the Taipei Economic and Cultural Representative Office (TECRO), has been created by Taiwan.  It has its headquarters in Taipei and field offices in Washington, DC, 11 other U.S. cities, and Guam.Following derecognition, the United States terminated its Mutual Defense Treaty with Taiwan but has continued the sale of defensive military equipment to Taiwan in keeping both with the Taiwan Relations Act and with the 1982 U.S.-P.R.C. Joint Communique. The Taiwan Relations Act requires the United States to "make available to Taiwan such defense articles and defense services in such quantity as may be necessary to enable Taiwan to maintain a sufficient self-defense capability." In the 1982 Communique, the United States stated that "it does not seek to carry out a long-term policy of arms sales to Taiwan;" that U.S. arms sales would "not exceed, either in qualitative or in quantitative terms, the level of those supplied in recent years;" and that the U.S. intends "gradually to reduce its sale of arms to Taiwan."  The P.R.C., in the 1982 communique, reiterated its policy of striving for a peaceful solution to the Taiwan question.Maintaining diplomatic relations with the P.R.C. has been recognized to be in the long-term interest of the United States by six consecutive administrations; however, maintaining strong, unofficial relations with Taiwan is also in the U.S. interest.  The United States is committed to these efforts because they are important for America's global position and for peace and stability in Asia.  Trade and Investment  Over four decades, Taiwan transformed itself from an underdeveloped, agricultural island to an economic power that is a leading producer of high-technology goods.  Taiwan has moved from being a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor, especially in Asia.U.S. commercial ties with Taiwan have been maintained and expanded since derecognition.  Taiwan continues to enjoy Export-Import Bank financing, Overseas Private Investment Corporation guarantees, most-favored-nation (MFN) status, and ready access to U.S. markets.In recent years, U.S. economic dealings with Taiwan have focused on expanded market access for American goods and services.  AIT has been engaged in a series of trade negotiations which have focused on protection of intellectual property rights, and issues relating to Taiwan's accession to the World Trade Organization (WTO), as well as other market access issues.  Taiwan's bid to join the WTO and its desire to become an Asia-Pacific "regional operations center" are spurring economic liberalization moves.  In 1991 Taiwan, under the name "Chinese Taipei," became a member of the Asia-Pacific Economic Cooperation (APEC) forum, of which the U.S. is also a member.The United States is Taiwan's largest trading partner, taking 26% of Taiwan's exports and supplying 21% of its imports.  Taiwan is the U.S.' seventh-largest trading partner and seventh-largest export market.  In 1994, Taiwan's two-way trade with the U.S. was about $43 billion.  Imports from the U.S. consisted mostly of agricultural and industrial raw materials.  Exports to the U.S. were mainly electronics and consumer goods.  Electronics is Taiwan's most important industrial export sector and is the largest recipient of U.S. investment.As Taiwan's income level has risen, demand for imported, high-quality consumer goods has increased.  In recent years, Taiwan has successfully diversified its trade markets, cutting its share of exports to the U.S. from 49% in 1984 to 26% in 1994.  Taiwan's 1994 total trade surplus with the United States was some $9 billion, a significant amount, but a decline from a high of $17 billion in 1987.  Taiwan's dependence on the U.S. market should continue to decrease as its exports to Southeast Asia and the P.R.C. grow and its efforts to develop European markets produce results.  ADMINISTRATION  In December 1949--and following a civil war between the Communists and the ruling Nationalists--the P.R.C. was founded on the mainland by the victorious communists.  Chiang Kai-shek--the leader of the Nationalist Chinese regime--fled to the island of Taiwan, which the Nationalists already administered, and established a "provisional" capital in Taipei.From 1949 until 1991, the authorities on Taiwan claimed to be the sole legitimate government of all of China, including the mainland.  In keeping with that claim, when the Nationalists fled to Taiwan in 1949, they re-established the full array of central political bodies they had originally established on the mainland.  Taiwan Province and, later, the Special Municipalities of Taipei and Kaohsiung were local bodies governed separately from the central administration.  While this structure remains largely the same, the authorities on Taiwan have abandoned the claim of governing mainland China, stating that they do not "dispute the fact that the P.R.C. controls mainland China."The authorities in Taipei exercise control over the islands of Taiwan, Kinmen, Matsu, and the Penghu Islands (Pescadores).  Taiwan's two major cities, Taipei and Kaohsiung, are administered as provincial-level municipalities.  The rest of Taiwan and the Penghu Islands are administered together as the Province of Taiwan.  Kinmen and Matsu are administered by Taiwan authorities but they are considered in principle to be part of the mainland province of Fujian. National Assembly.  Under the constitution adopted by the KMT in 1947, the sovereignty of the people was to be exercised by the National Assembly.  The first National Assembly was elected on the mainland in 1947 and was re-established on Taiwan when the KMT fled mainland China. The second National Assembly, elected in 1991, is composed of 325 members serving four-year terms.The National Assembly's main functions prior to August 1994 were to elect the president and vice president and to amend the constitution. Amendments passed by the National Assembly in July 1994 paved the way for direct election of the president and vice president; Taiwan's first presidential election is scheduled for March 1996. The National Assembly's powers now are to amend the constitution, recall the president, impeach the president, and ratify certain presidential appointments in other branches of the government.President.  The president is leader of Taiwan and commander-in-chief of its armed forces. With the consent of the Legislative Yuan, the president appoints the premier, who is the head of the Executive Yuan.Executive Yuan.  The Executive Yuan is roughly analogous to the U.S. executive branch of government in that it constitutes the cabinet and is responsible for policy and administration.Legislative Yuan.  The main lawmaking body is the Legislative Yuan (LY).  It dates from the late 1940's and originally was viewed as a "rubber stamp" institution. The LY has greatly enhanced its standing in relation to the executive branch and has established itself as an important player on the central level.The LY elected in 1992 has 161 members serving three-year terms, all of whom are up for election in December 1995.  The LY has begun to reflect the recently liberalized political system; in the 1992 elections, the main opposition party--the Democratic Progressive Party (DPP)--challenged the KMT monopoly on control of the legislature. In 1994, the LY passed legislation to allow for the direct election of certain local officials.Control Yuan.  The Control Yuan monitors the efficiency of the public service and investigates instances of corruption.  The 29 Control Yuan members are appointed by the president and approved by the National Assembly, and they serve six-year terms.  Recently, the Control Yuan has become more activist and has conducted several major investigations and impeachments.Judicial Yuan.  The Judicial Yuan administers Taiwan's court system.  It includes a 17-member Council of Grand Justices that interprets the constitution.  Grand justices are appointed by the president--with the consent of the National Assembly--to nine-year terms.Examination Yuan.  The Examination Yuan functions as a civil service commission.Military.  Taiwan maintains a large military establishment.  Its primary mission is defense of Taiwan, predominately from the P.R.C., which has refused to renounce the use of force against Taiwan should Taiwan declare independence or in case of involvement by a foreign military power.  Principal Leaders  President--Lee Teng-hui Vice President--Li Yuan-Zu Premier--Lien Chan Vice-Premier--Hsu Li-teh  POLITICAL CONDITIONS  Lee Teng-hui succeeded Chiang Ching-kuo as President when Chiang died on January 13, 1988.  Lee was elected by the National Assembly to a six-year term in 1990, marking the final time a president was elected by the National Assembly.  As noted, starting in 1996, the president and vice president will be directly elected to four-year terms by Taiwan's voters.This change in the political process is the result of the liberalizing trend that began in the late 1980s when President Chiang Ching-kuo lifted the emergency decree which had been in place since 1948.  This decree had granted virtually unlimited powers to the president for use in the anti-communist campaign, and it provided the basis for nearly four decades of martial law.  Until martial law was ended in 1987, individuals and groups expressing dissenting views were treated harshly.Since ending martial law, Taiwan has dramatically improved respect for human rights and has worked to create a democratic political system. Restrictions on the press have greatly diminished, restrictions on personal freedoms have been relaxed, and the prohibition against organizing new political parties has been lifted.Taiwan's political system has been dominated by the KMT; until 1986, the party's chairman was also Taiwan's president. Many top political officials are members of the party's Central Standing Committee, which is the chief policy-making organ within the party. As the ruling party, the KMT has been able to fill appointed positions with its members and maintain control of the island.Since 1986, emerging political parties have challenged the KMT's dominance. Before then, candidates opposing the KMT ran in elections as independents or "nonpartisans."  Many "nonpartisans" grouped together illegally to create Taiwan's first new political party in over four decades, the DPP.  Despite the official ban on forming new political parties, Taiwan authorities did not prohibit the DPP from operating. In 1989, the DPP and other new political parties were legalized, and the DPP's support and influence increased.The DPP's voice has been an important factor in legislative decisions since 1992, and winning the Taipei mayoral election in December 1994 significantly enhanced the DPP's image. Its platform includes outspoken positions on some of the most sensitive issues in Taiwan politics. The DPP maintains that Taiwan is an entity separate from mainland China, in contrast to the KMT position that Taiwan and the mainland are both part of "one China."  A number of ranking DPP officials, in sharp contrast to tenets of both KMT and P.R.C. policy, openly advocate independence for Taiwan.The second major opposition party, the Chinese New Party (CNP) established in 1993, has a conservative platform. The CNP emphasizes "clean government" and the original KMT focus on reunification with the mainland.  Although CNP membership remains small, its influence is considerable, especially in its ability to draw support away from the KMT.  REPRESENTATIVE OFFICES  American Institute in Taiwan (AIT): AIT-Washington: Room 1700, 1700 North Moore Street, Arlington, VA 22209; tel. [phone]; fax [phone].AIT-Taipei: 7, Lane 134, Hsin Yi Road, Section 3 Taipei, Taiwan; tel. [phone]; fax [phone].  Taipei Economic and Cultural Representative Office (TECRO): TECRO-Washington:  4201 Wisconsin Ave. NW, Washington, DC 20016-2137; tel. [phone]; fax [phone].TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers going to Taiwan also may be obtained before your departure from the relevant office in the U.S. (see "Representative Offices" listing in this publication).  Upon their arrival in Taiwan, U.S. citizens are encouraged to register with the relevant office there (see "Representative Offices" listing in this publication). This may help family members contact you en route in case of an emergency. Further Electronic Information: Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line. Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet: Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone]. Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone]. National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ==============================  Background Notes Series -- Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC    This information is in the public domain and may be reproduced without permission; citation of this source is appreciated.  (###)</text>
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        <text>BACKGROUND NOTES:  ZAMBIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATESEPTEMBER 1992Official Name:   Republic of ZambiaPROFILEGeographyArea:  752,614 sq. km. (290,585 sq. mi.); slightly larger thanTexas.  Cities:   Capital--Lusaka (pop. 982,000).  Othercities--Kitwe (348,000), Ndola (376,000), Livingstone (84,000),Kabwe (167,000). Terrain:  Varies; mostly plateau savanna.Climate:  Generally dry and temperate.PeopleNationality:  Noun and adjective--Zambian(s).  Population (1991):8 million.  Annual growth rate:  3%.  Ethnic groups:  More than 70tribal groups. Religions: Christian, indigenous beliefs.Languages:  English (official), about 70 local languages anddialects, including Bemba, Tonga, Nyanja, Lozi, Luvale, Ndembu(Lundu), and Kaonde.  Education:  Years compulsory--7.Attendance--less than 50% in grades 1-7.  Less than 20% of primaryschool graduates are admitted to secondary school.  Literacy--54%.Health:  Infant mortality rate--87/1,000.  Life expectancy--51 yrs.Work force:  Agriculture--60%. Industry and commerce--40%.GovernmentType:  Republic.  Independence:  October 24, 1964.  Constitution:1991.Branches:  Executive--president (chief of state), cabinet.Legislative--unicameral National Assembly.  Judicial--SupremeCourt, high court, magisterial court, and local courts.Ruling political party:  Movement for Multiparty Democracy (MMD).Suffrage: Universal adult.Subdivisions:  Nine provinces subdivided into districts.Flag:  Green field with small vertical stripes (red, black, orange)in lower right corner and orange eagle above stripes.EconomyGDP (1991):  $4.2 billion.  Annual growth rate:  1%.  Per capitaGDP:  $380.Natural resources:  Copper, cobalt, zinc, lead, coal, emeralds,gold, silver, uranium, hydroelectric power, fertile land.Agriculture:  Products--corn, tobacco, cotton, soybeans,groundnuts, sugar cane, livestock, and horticultural products.Industry:  Types--mining, transport, construction, foodstuffs,beverages, chemicals, textiles, fertilizers.Trade (1990):  Exports--$1.3 billion: copper, cobalt, lead, andzinc.  Major markets--Japan, Italy, France, China.  Imports--$1.1billion:  crude oil, manufactured goods, machinery, transportequipment, foodstuffs.  Major suppliers--South Africa, UK, Japan,US, Germany.Official exchange rate (June 1992):  140 kwacha=US$1.Bilateral economic aid:  Major donors--US, UK, Netherlands, EC,Japan, Germany, Nordic countries.  In early 1992, Zambia's economicreform program qualified for new assistance from the World Bank andis being monitored by the International Monetary Fund (IMF).  Otherdonors include 17 UN organizations and at least 25 multilateral andnon-governmental organizations.  nPEOPLEZambia's population comprises more than 70 Bantu-speaking tribes.Some tribes are small, and only two have enough people toconstitute at least 10% of the population.  Most Zambians aresubsistence farmers.  The predominant religion is a blend oftraditional beliefs and Christianity.Expatriates, mostly British (15,000 in 1986) or South African, livemainly in Lusaka and in the copperbelt in northern Zambia, wherethey are employed in mines and related activities.  Zambia also hasa small but economically important Asian population, most of whomare Indians. The country is 42% urban.HISTORYThe indigenous hunter-gatherer occupants of Zambia began to bedisplaced or absorbed by more advanced migrating tribes about 2,000years ago.  The major waves of Bantu-speaking immigrants began inthe 15th century, with the greatest influx between the late 17thand early 19th centuries.  They came primarily from the Luba andLunda tribes of southern Zaire and northern Angola but were joinedin the 19th century by Ngoni peoples from the south.  By the latterpart of that century, the various peoples of Zambia were largelyestablished in the areas they currently occupy.Except for an occasional Portuguese explorer, the area layuntouched by Europeans for centuries.  After the mid-19th century,it was penetrated by Western explorers, missionaries, and traders.David Livingstone first saw Victoria Falls in 1855.In 1888, Cecil Rhodes, spearheading British commercial andpolitical interests in central Africa, obtained a mineral rightsconcession from local chiefs.  In the same year, Northern andSouthern Rhodesia (now Zambia and Zimbabwe respectively) wereproclaimed a British sphere of influence. Southern Rhodesia wasannexed formally and granted self-government in 1923, and theadministration of Northern Rhodesia was transferred to the BritishColonial Office in 1924 as a protectorate.In 1953, both Rhodesias were joined with Nyasaland (now Malawi) toform the Federation of Rhodesia and Nyasaland.  Northern Rhodesiawas the center of much of the turmoil and crisis that characterizedthe federation in its last years.  At the core of the controversywere insistent African demands for greater participation ingovernment and European fears of losing political control.A two-stage election held in October and December 1962 resulted inan African majority in the Legislative Council and an uneasycoalition between the two African nationalist parties.  The councilpassed resolutions calling for Northern Rhodesia's secession fromthe federation and demanding full internal self-government under anew constitution and a new national assembly based on a broader,more democratic franchise. On December 31, 1963, the federation wasdissolved, and Northern Rhodesia became the Republic of Zambia onOctober 24, 1964.At independence, despite its considerable mineral wealth, Zambiafaced major challenges.  Domestically, there were few trained andeducated Zambians capable of running the government, and theeconomy was largely dependent on foreign expertise.  Abroad, threeof its neighbors--Southern Rhodesia and the Portuguese colonies ofMozambique and Angola--remained under white-dominated rule.Rhodesia's white-ruled government unilaterally declaredindependence in 1965.  In addition, Zambia shared a border withSouth African-controlled South-West Africa (now Namibia).  Zambia'ssympathies lay with forces opposing colonial or white-dominatedrule, particularly in Southern Rhodesia.  During the next decade,it actively supported movements such as the Union for the TotalLiberation of Angola (UNITA), the Zimbabwe African People's Union(ZAPU), the African National Congress of South Africa (ANC), andthe South-West Africa People's Organization (SWAPO).Conflicts with Rhodesia resulted in the closing of Zambia's borderswith that country and severe problems with international transportand power sup-ply.  However, the Kariba hydroelectric station onthe Zambezi River provided sufficient capacity to satisfy thecountry's requirements for electricity.  A railroad to theTanzanian port of Dar es Salaam, built with Chinese assistance,reduced Zambian dependence on railroad lines south to South Africaand west through an increasingly troubled Angola.By the late 1970s, Mozambique and Angola had attained independencefrom Portugal, while Zimbabwe had achieved independence inaccordance with the 1979 Lancaster House agreement.  Zambia'sproblems did not abate, however.  Civil war in the formerPortuguese colonies generated refugees and caused continuingtransportation problems.  The Benguela Railroad, which extendedwest through Angola, was essentially closed to traffic from Zambiaby the late 1970s. Zambia's strong support for the ANC, which hadits external headquarters in Lusaka, created security problems asSouth Africa raided ANC targets in Zambia.In the mid-1970s, the price of copper--Zambia's principalexport--suffered a severe decline worldwide. Zambia turned toforeign and international lenders for relief; but as copper pricesremained depressed, it became increasingly difficult to service itsgrowing debt.  By the late 1980s, Zambia had the highest percentageof gross domestic product (GDP) consumed by foreign debts inAfrica.GOVERNMENTZambia was the first British territory to become a republicimmediately upon attaining independence.  The constitutionpromulgated on August 25, 1973, abrogated the original 1964constitution.  The new constitution and the national elections thatfollowed in December 1973 were the final steps in achieving whatwas called a "one-party participatory democracy."The 1973 constitution provided for a strong president and aunicameral national assembly.  National policy was formulated bythe Central Committee of the United National Independence Party(UNIP), the sole legal party in Zambia.  The cabinet executed thecentral committee's policy.In accordance with the intention to formalize UNIP supremacy in thenew system, the constitution stipulated that the sole candidate inelections for the office of president was the person selected to bethe president of UNIP by the party's general conference.  Thesecond-ranking person in the Zambian hierarchy was UNIP's secretarygeneral.In December 1990, at the end of a tumultuous year that includedriots in the capital and a coup attempt, President Kaunda signedlegislation ending UNIP's monopoly on power.  In response togrowing popular demand for multi-party democracy, and afterlengthy, difficult negotiations between the Kaunda Government andopposition groups, Zambia enacted a new constitution in August1991.  The constitution enlarged the National Assembly from 136members to a maximum of 158 members, established an electoralcommission, and allowed for more than one presidential candidate.Moreover, candidates no longer had to be members of UNIP.  Underthe present constitution, the president is elected directly byuniversal suffrage and may serve a maximum of two 5-year terms.The National Assembly is comprised of 150 directly elected members,up to 8  presidentially appointed members, and a speaker.  Zambiais divided into nine provinces, each administered by an appointedgovernor.  Multiparty elections for president and parliament wereheld in October 1991.The Supreme Court is the highest court and the court of appeal;below it are high court, magistrate's court, and local courts.Principal Government OfficialsPresident--Frederick ChilubaVice President--Levy MwanawasaMinister of Foreign Affairs--Vernon MwaangaAmbassador to the United States--Dunstan KamanaAmbassador to the United Nations--Otema MusakaZambia maintains an embassy in the United States at 2419Massachusetts Avenue, NW, Washington, DC 20008 (tel. [phone]).POLITICAL CONDITIONSThe major figure in Zambian politics from 1964 to 1991 was KennethKaunda, who led the fight for independence and traditionallybridged the rivalries among the country's various regions andethnic groups.  Kaunda tried to base government on his philosophyof "humanism," which condemns human exploitation and stressescooperation among people but not at the expense of the individual.Kaunda's political party--the United National Independence Party(UNIP)--was founded in 1959 and was in power under Kaunda'sdirection since the country gained independence in 1964.  Before1972, Zambia had three significant political parties--UNIP, theANC, and the United Progressive Party (UPP).  The ANC drew itsstrength from western and southern provinces, while the UPP foundsome support among Bemba-speakers in the copperbelt and northernprovinces.  Although not strongly supported in all areas of thecountry, only UNIP had a nationwide following.In February 1972, Zambia became a one-party state, and all otherpolitical parties were banned.  Kaunda, the sole candidate, waselected President in the 1973 elections.  Elections also were heldfor the National Assembly.  Only UNIP members were permitted torun, but these seats were sharply contested.  President Kaunda'smandate was renewed in December 1978 and October 1983 in a "yes" or"no" vote on his candidacy. In the 1983 election, more than 60% ofthose registered participated and gave President Kaunda a 93% "yes"vote.Growing opposition to UNIP's monopoly on power led to the rise in1990 of the Movement for Multiparty Democracy (MMD).  The MMDassembled an increasingly impressive group of important Zambians,including prominent UNIP defectors and labor leaders.  During theyear, President Kaunda agreed to a referendum on the one-partystate and, in the face of continued opposition, dropped thereferendum and signed a constitutional amendment making Zambia amultiparty state.  Zambia's first multiparty elections forparliament and the presidency since the early 1970s were held onOctober 31, 1991.  Movement for Multiparty Democracy (MMD)candidate Frederick Chiluba resoundingly carried the presidentialelection over Kenneth Kaunda by winning 81% of the vote.  To add tothe MMD landslide, in the parliamentary elections the MMD won 125of the 150 elected seats and UNIP the remaining 25.  However, UNIPswept the Eastern Province, gathering 19 of its seats there.ECONOMYThe Zambian economy is based primarily on its state-controlledcopper industry.  Traditionally, the copper industry has accountedfor a significant portion of the GDP, from one-third to one-half ofgovernment revenues, and more than 90% of Zambia's foreign-exchangeearnings.  Due to a sharp decline in world copper prices in 1975,prolonged drought, internal management problems, and limitedexpertise, Zambia's economy has severely declined for more than adecade, with reduced imports, rising unemployment, and growingforeign debt.  Copper production has fallen to less than 500,000metric tons per year from a 1976 high of 720,000 metric tons.Unless the copper company can make massive improvements in itsfacilities, production will continue to decline.In late 1982, the government restricted public spending, reducedgovernment subsidies, raised farm-producer incentives, and devaluedthe currency, first by fiat and then by introducing aforeign-exchange auction system in 1985.In February 1986, Zambia and the International Monetary Fund (IMF)agreed on a new 2-year standby program designed to restorefinancial discipline, restructure external debt, and promotenon-mineral exports.  In December 1986, in response to sharp risesin the price of staples and food shortages, rioting erupted in thecopper-producing region, and at least 15 people were killed.  Thegovernment, convinced that economic reform policies wereresponsible, abandoned the IMF program in May 1987, citingunacceptably high social, economic, and political costs.  At thesame time, the government emphasized that it had not abandoned itsefforts to restructure Zambia's economy; rather, it would pursuerestructuring on its own terms and with its own plan.By early 1989, in consultations with the IMF and the World Bank,Zambia developed a new economic reform plan.  Despite food riots inLusaka in June 1990, the government adhered to its plan and earnedthe support of Western donors.  In early 1991, Zambia qualified fornew World Bank assistance for the first time since 1987.  Progresson economic restructuring stalled by mid-year when President Kaundafailed to follow through on earlier commitments to the World Bank.In mid-September, following Zambia's failure to meet a thirdarrears payment in as many months, the World Bank formallysuspended all lending activity.  Several Western donors followedsuit by suspending their aid programs.  Immediately upon hiselection, President Chiluba began to implement critical economicreforms and reopened negotiations for the resumption of World Bankand IMF programs.  As of January 1992, the World Bank again beganto provide assistance under the Economic Recovery Credit.  However,the country's foreign debt remained in excess of $7 billion.Although Zambia's reform plan includes privatization of mostgovernment-owned enterprises, there still is substantial governmentparticipation in many sectors through a system of state-owned orstate-controlled (parastatal) companies under one state-ownedholding company:  ZIMCO (Zambia Industrial and Mining CorporationLtd.).  More than 100 companies in the ZIMCO group contribute morethan 50% of Zambia's GDP and 30% of  total national wageemployment.The most important component of ZIMCO is Zambia Consolidated CopperMines (ZCCM), which is 60% state-owned.  ZIMCO also includes mostenergy industries, the transportation industry, major hotels,wholesale and retail distributors, insurance, a commercial bank,the fertilizer plant, breweries, saw mills, plantations, automobileassembly plants, glass works, and other industries.  The governmentrecognizes that the inefficiencies and high costs of public-sectordomination contribute to the country's economic decline and hasannounced its intention to privatize 80% of state-ownedenterprises.Despite the dominant role of parastatals, the private sector playsa vital role in the Zambian economy.  Private firms areparticularly active in the construction and highway transportationindustries, banking, and commercial agriculture.  Government hasmoved toward a more market-oriented development approach;private-sector investment, both domestic and foreign, is beingencouraged, particularly in agriculture and agribusiness throughnew investment legislation and other incentives.Agriculture is the main livelihood of half of Zambia's population.Maize (corn) is the principal cash crop as well as the staple food.Other important crops include groundnuts,  soybeans, cotton, sugar,sunflower seeds, wheat, sorghum, millet, cassava, and tobacco.Zambia has potential for significant increases in agriculturalproduction; only about 20% of an estimated 60 million hectares ofarable land is cultivated.  In the past, the agricultural sectorhas suffered from low producer prices, difficulties in theavailability and distribution of credit and inputs, and theshortage of foreign exchange.Zambia is one of the most urbanized and industrialized countries inSub-Saharan Africa. Manufacturing, heavily import dependent,primarily produces for the domestic consumer market.  Despite somerecent improvement, most plants operate at about 50% of capacity,and output remains below that of 10 years ago.As a landlocked country, Zambia depends on external transportationroutes, specifically road and rail routes through Zimbabwe andBotswana to ports in South Africa and through Tanzania to theIndian Ocean port of Dar es Salaam.  In recent years, the southernroute has increasingly carried Zambian imports, and exports throughDar es Salaam have increased.  In 1984, the southern route carriedabout 64% of Zambia's imports and 20% of its exports, while Dar esSalaam handled 66% of exports and 32% of imports.  Since late 1986,Zambia rerouted remaining copper exports transiting South Africa toboth Dar es Salaam and Beira, Mozambique.  In 1987, Zambiaannounced that it had stopped exporting copper via the southernroute and South Africa.During 1990, reacting to positive political developments in SouthAfrica, Zambia relaxed its restrictions on using South Africanports.  A new transportation route opened through Namibia to WalvisBay, which is of growing importance as a port for Zambia's importsand exports.  Zambia is participating under the aegis of theSouthern African Development Coordination Conference (SADCC) inefforts to restructure, rehabilitate, and improve the transportinfrastructure of southern and eastern Africa so as to reduce theregion's economic dependence on and vulnerability to events inSouth Africa.FOREIGN RELATIONSZambia is a member of the Organization of African Unity (OAU), thefront-line states, Southern African Development CoordinationConference (SADCC), and the Preferential Trade Area (PTA).  Zambiatraditionally has been active in promoting peaceful change in thesouthern African region.  Its major foreign policy goals haveincluded an end to the civil war in Angola and majority rule inSouth Africa.  President Kaunda was a persistent advocate ofpeaceful change in South Africa, meeting with the South Africanpresident and foreign minister, ANC leaders Nelson Mandela andOliver Tambo, and Inkatha leader Buthelezi.  He also cooperated inUS efforts to promote peaceful solutions to regional problems.Since his election, President Chiluba has established trade linkswith South Africa and recognized Israel.Zambia is a leading member of the Non-Aligned Movement (NAM).  Thecountry has received development assistance from a number ofWestern and neutral countries, the World Bank, and theInternational Monetary Fund. China also has been a prominent donor,particularly in the transportation sector, and North Korea hasundertaken some agricultural projects.DEFENSEThe Zambian Defense Force (ZDF) consists of the army, the airforce, and Zambian National Service (ZNS).  The ZNS, whileoperating under the Ministry of Defense, is responsible primarilyfor public works projects.  The ZDF is designed primarily forinternal defense.US-ZAMBIAN RELATIONSBilateral relations between Zambia and the United States werestrained during the last year of the Kaunda-led government but haveimproved dramatically with the establishment of multipartydemocracy and the election of President Chiluba.  Zambia and theUnited States share common political and legal traditions and agreeon the most pressing southern African regional goals:  successfulimplementation--including free and fair elections--of the AngolaPeace Accord, a cease-fire in Mozambique, and ending apartheid inSouth Africa.The United States has a substantial foreign assistance program inZambia and has strongly supported its economic reform program.  Inaddition to support for development projects--primarily in theagricultural sector--the United States has provided food aid andparticipated in international efforts to rehabilitate the TazaraRailroad line, Zambia's principal land route to the Tanzanian portof Dar es Salaam.  US efforts to assist Zambia in drought reliefcan add an increasingly important positive element to bilateralrelations.  President Chiluba made a private visit to Washington,DC, in February 1992, and Vice President Bush visited Zambia in1982.Principal US OfficialsAmbassador--Gordon StreebDeputy Chief of Mission--Michael AriettiPolitical Officer--Don GattoEconomic/Commercial Officer--Necia QuastPublic Affairs Officer--Steadman HowardAID Mission Director--Fred WinchConsular Officer--William FitzgeraldThe US embassy in Zambia is at the corner of Independence andUnited Nations Avenues (PO Box 31617), Lusaka (tel. 228595).TRAVEL NOTES:Climate and clothing:  Summer clothing is worn mid-August tomid-May.  Light woolens are useful in winter (mid-May tomid-August).Customs and currency:  Travelers from the US must obtain entryvisas from the Zambian embassy in Washington, DC, or from theZambian mission to the UN in New York.  A valid passport and recordof inoculation for cholera are required.Travelers may be asked to declare the currencies they hold at thetime of entry.  Restrictions have been placed on the export ofZambian kwacha.Health:   Standards in Lusaka and other urban areas are fair.Water from the municipal system is considered potable, but boilingis advised.  Malaria is endemic throughout the country, includinglarge urban areas, and malaria suppressants are essential.Infections will result from bathing in streams, lakes, and ponds.Although not required, vaccination against typhoid fever isrecommended; vaccination against yellow fever is required.Telecommunications:   Direct-dialing within Zambia is limited.International communications by telephone and telegraph areadequate but expensive.  Direct international dialing is availableto Europe and North America. Lusaka is 2 hours ahead of Greenwichmean time or 7 hours ahead of eastern standard time.Transportation:   Airlines connect Lusaka with London, Paris, Rome,Bombay, Nairobi, Johannesburg, and other cities in Africa.Scheduled domestic service by Zambian Airways provides directconnections to the larger provincial towns. Zambia Railwaysprovides passenger service within the country and to Dar es Salaam,but service is slow.   Paved roads lead from Lusaka to Tanzania,Malawi, Zimbabwe, Botswana, and Zaire.  Driving is on the left.Rental cars and an inter-city "luxury" bus service are available.The few urban taxis and buses are crowded, and schedules areerratic.Tourist attractions:   Victoria Falls is becoming the center of amodern resort area with various accommodations. Kafue and LuangwaValley National Parks are among the largest in Africa.  Both parksare abundantly stocked with native wildlife and offer fullaccommodations to visitors. Several smaller parks near Lusaka offer1-day trips. Regular air service operates between Lusaka andresorts on Lake Tanganyika. Several small parks near Lusaka offer1-day trips.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office      of Public Communication --Washington, DC --  September 1992 -- Editor:  Jo BrooksDepartment of State Publication 7841Background Notes Series -- This material is in the public domainand may be reprinted without permission; citation of this source isappreciated.  For sale by the Superintendent of Documents, USGovernment Printing Office, Washington, DC  20402.</text>
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        <text>BACKGROUND NOTES:  YEMENPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATENovember 1992Official Name:  Republic of YemenPROFILEGeographyArea:  527,970 sq. km. (203,796 sq. mi.); about the size ofCalifornia and Pennsylvania combined.  Cities:  Capital--Sanaa.Other cities--Aden, Taiz, Hodeida, and Al-Mukalla.  Terrain:Mountainous interior with a flat and sandy coastal plain.Climate:  Temperate in the mountainous regions in the westernpart of the country; extremely hot with minimal rainfall in theremainder of the country; humid on the coast.PeopleNationality:   Noun and adjective--Yemeni(s).  Population (1990est.): 12 million.  Annual growth rate: 3.2%.  Ethnic group:Arab.  Religion:  Islam.   Language: Arabic.  Education:Attendance (est.)--67% primary, 10% secondary.  Literacy(est.)--28%.  Health: Infant mortality rate--116/1,000 livebirths.  Life expectancy--52 yrs.  Work force (2.8 million est.):As percentage of total population--25%.  Agriculture andfisheries--64%.  Industry and commerce--11%.  Services--25%.GovernmentType:  Republic.  Unification (of former South and North Yemen):May 22, 1990.  Constitution:  Adopted May 21, 1990.Branches:  Executive--Five-member Presidential Council assistedby a 38-member cabinet.  Legislative--301-seat provisional unifiedparliament (159 members from the North, 111 members from theSouth, and 31 independent "at-large" members).   Judicial--Theconstitution calls for an independent judiciary.  Thetransitional parliament passed a law establishing the courtsystem, setting out qualifications for judges, and creating, forthe first time in either Yemen, a Supreme Court.  However, thelaw has not yet been implemented.Administrative subdivisions:  17 governorates subdivided intodistricts.Political parties:  Yemeni Socialist Party, General People'sCongress, Yemeni Grouping for Reform, Ba'athist Parties,Nasserist Parties, and Muslim Fundamentalist Parties.  Suffrage:Universal over 18.National holiday:  May 22 (Unity Day).Flag:  Three horizontal bands--red, white, and black bands.EconomyGDP (1990 est.):   $7.4 billion.  Per capita GDP (1990 est.):$617.Natural resources:  Oil, natural gas, fish, rock salt, smalldeposits of coal and copper.Agriculture (est. 26% of GDP): Products--qat (a shrub containingnatural amphetamine), cotton, fruits, vegetables, cereals,livestock and poultry, hides, skins, tobacco, honey.  Arable land(est.)--5%.Industry (est. 18% of GDP):  Types--petroleum refining, mining,food processing, building materials.Trade (1990 est.):  Exports--$908 million:  crude petroleum,refined oil products, hides, fish, fruits, vegetables, cotton,coffee, biscuits, plastic pipes.  Major markets--United States,Western Europe, South Korea, Saudi Arabia.  Imports--$2.1billion:  cereals, feed grains, foodstuffs, machinery, petroleumproducts, transportation equipment.  Major suppliers--Japan,Saudi Arabia, Australia, EC countries, China, Russia and othernewly independent states, United States.Exchange rate (April 1991):  Official--12 rials=US$1.  Market--20to 27 rials=US$1.PEOPLEUnlike other people of the Arabian Peninsula who havehistorically been nomads or semi-nomads, Yemenis are almostentirely sedentary and live in small villages and towns scatteredthroughout the highlands and coastal regions.Yemenis are divided into two principal Islamic religious groups:the Zaidi community of the Shi'a sect, found in the north andnorthwest, and the Shafa'i community of the Sunni sect, found inthe south and southeast.  Yemenis are mainly of Semitic origin,although Negroid strains are present among inhabitants of thecoastal region.  Arabic is the official language, althoughEnglish is widely understood.  In the Mahra area (the extremeeast), several non-Arabic languages are spoken.  When the formerstates of North and South Yemen were established, most residentminority groups departed.HISTORYAlthough its early history is obscure, Yemen was one of theoldest centers of civilization in the Near East.  Between the 12thcentury BC and the 6th century AD, it was part of the Minaean,Sabaean, and Himyarite kingdoms and later came under Ethiopianand Persian rule.  In the 7th century, Islamic caliphs began toexert control over the area.  After this caliphate broke up, theformer North Yemen came under control of the Zaidi sectimams1, who established a theocratic political structure thatsurvived until modern times.  Egyptian caliphs occupied much ofNorth Yemen throughout the 11th century.  By the 16th century,North Yemen was part of the Ottoman Empire and its imams exertedsuzerainty over South Yemen.Former North Yemen.  Under the Ottoman Empire, Yemen had nominalsovereignty until World War I.  Turkish forces withdrew fromformer North Yemen in 1918, and Zaidi Imam Yahy strengthened hiscontrol over the area of former North Yemen.  After briefmilitary encounters with Saudi Arabia and the United Kingdom(which controlled the Aden protectorate in what was former SouthYemen), its boundaries were established by treaty with those twocountries.  It became a member of the Arab League in 1945 and theUnited Nations in 1947.Imam Yahy died during a coup attempt in 1948 and was succeeded byhis son Ahmad, who ruled until his death in September 1962.  ImamAhmad's reign was marked by renewed friction with the UnitedKingdom and growing pressures to support the Arab nationalistobjectives of Egyptian President Gamal Abdal Nasser.Shortly after assuming power, Ahmad's son--Imam Badr--was deposedby revolutionary (republican) forces which took control of Sanaaand then created the Yemen Arab Republic (YAR).  At the requestof the new government, Egypt assisted the YAR with troops andsupplies to combat the deposed Imam Badr.  Saudi Arabia andJordan supported Badr's  royalist forces to oppose the newlyformed republic.Conflict continued periodically until 1967 when Egyptian troopswere withdrawn from North Yemen after the 1967 Arab-Israeli war.The Egyptian-supported regime then collapsed, and moderaterepublican leaders rallied to the defense of Sanaa against afinal royalist siege of the city.  By 1968, most of the opposingleaders reached a reconciliation; Saudi Arabia recognized therepublic in 1970.Former South Yemen.  British influence increased in the south andeastern portion of Yemen after capture of the port of Aden in1839.  The area was ruled as part of British India until 1937,when it was made a crown colony with designated East Aden andWest Aden protectorates.  By 1965, many of the tribal stateswithin the protectorates  and the Aden colony proper had joinedthe British-sponsored Federation of South Arabia.However, in 1965, two rival nationalist groups--the Front forthe Liberation of Occupied South Yemen (FLOSY) and the NationalLiberation Front (NLF)--turned to terrorism in their struggle tocontrol the country.  FLOSY was associated with the sizablenumber of Nasserite Egyptian supporters in neighboring YAR.In 1967, in the face of rising violence, British troops beganwith- drawing.  Federation rule collapsed.  NLF elements seizedcontrol.  The United Kingdom, having announced its intention todeal with any indigenous group capable of forming a newgovernment, met with the NLF at Geneva.  Following thesenegotiations, South Arabia, including Aden, was declaredindependent on November 30, 1967, and was renamed the People'sRepublic of South Yemen.During the early period of its independence, South Yemen wasruled by a three-member presidential council and a council ofministers.  The NLF was the dominant political force, although acommunist and a Ba'ath party also existed.  In June 1969, aradical wing of the NLF gained power and changed the country'sname to the People's Democratic Republic of Yemen (PDRY) onDecember 1, 1970.  In August 1971, a more radical NLF groupachieved power at the expense  of Prime Minister Muhammad AliHaytham.  In 1978, President Salim Rubbaya Ali was overthrown ina bloody coup and executed by Abdul Fattah Ismail, who assumedthe presidency.  The PDRY enacted a new constitution andamalgamated the three political parties into one, the YemeniSocialist Party (YSP), which became the only legal party.Movement Toward Union.  The Governments of the PDRY and the YARhad declared in 1972 that they approved a future union.  However,little progress was made toward unification, and relations wereoften strained.  In 1979, simmering tensions led to fighting, andPDRY troops occupied YAR territory.  After the intervention ofthe Arab League, the troops withdrew.  During a summit meeting inKuwait in March 1979, the presidents of both countries reiteratedtheir support for unity.  However, that year PDRY President AbdulFattah Ismail established the National Democratic Front (NDF)insurgency against the YAR.In April 1980, PDRY President Abdul Fattah Ismail resigned,ostensibly for health reasons, and  was  exiled and replaced byAli Nasir Muhammad.  The new president adopted a lessinterventionist stance toward both the YAR and neighboring Omanafter 1982.  Both the NDF insurgency and a similar movementagainst the Oman Government were reined in.  However, internalopposition to Ali Nasir grew and, in August 1985, became morefocused after Ismail's return from exile in Moscow.  A YemeniSocialist Party conference in October 1985 did little to reducethe tensions arising from his return.On January 13, 1986, a violent struggle began in the PDRY capitalbetween Ali Nasir Muhammad and Abdul Fattah Ismail and theirsupporters.  Fighting lasted for more than 1 month and resultedin thousands of casualties, Ali Nasir's ouster, and Ismail'sdeath.  Some 60,000 exiles, including Ali-Nasser and his sup-porters, fled to the YAR, producing a further deterioration inYAR-PDRY relations.  In the PDRY, the prime minister, Haydar AbuBakr Al-Attas, assumed the presidency.  A period of instabilityfollowed and continued until the summer of 1986.In May 1988, the YAR and PDRY Governments concluded agreementsthat considerably reduced tensions and renewed their discussionsconcerning unification.  They also agreed to establish a jointoil exploration investment area along their undefined border, todemilitarize the border, and to allow all Yemenis free borderpassage by presenting only a national identification card.In November 1989, the leaders of the YAR and the PDRY agreed on adraft unity constitution originally drawn up in 1981.  Thelegislatures ratified this constitution on May 21,1990, and theRepublic of Yemen (RY) was declared on May 22.  On May 22, Yemenalso announced a 30-month transitional period for completingarrangements for unifying the different political and economicsystems.1 In Islam, a recognized leader or a religious leader.  Among theSunni, the term refers to the leader in the Friday Mosque prayer.The term also is a synonym for caliph, the vicegerent of God.The Shiites apply it to Ali, Hasan and Hussein, and the rest ofthe caliphs in the family of Ali, whom they consider, alone ofthe orthodox calips, to have been successors of the Prophet.GOVERNMENT AND POLITICAL CONDITIONSAs part of the transitional period, a presidential council wasjointly elected by the 26-member YAR Advisory Council and the17-member PDRY Presidium.  This council consists of five members--three from the North and two from the South--to overseeexecutive duties during the transitional period.  The council hasappointed a prime minister, who formed a 38-member cabinet.  Thecentral government offices are located in Sanaa, capital of theformer YAR, with branches in Aden, capital of the former PDRY.Employees are being transferred from the North to the South, andvice versa, in order to facilitate ministry integration.  As partof the new unified government, the council also has appointed a45-member  advisory council.Yemen has formed a new 301-seat provisional unified parliament,consisting of 159 members from the North, 111 members from theSouth, and 31 independent "at-large" members appointed by thechairman of the council.  The 31 "at-large" positions includesome members of the opposition parties.  The provisionalparliament is entrusted with all legislative powers stipulated inthe constitution, with the exception of electing members of thecouncil and amendment of the constitution.  Country-widelegislative elections are expected to be held before November 22,1992.The unity constitution, ratified on May 21, 1990, will serve asthe legal cornerstone for the new state.  The constitutionaffirms Yemen's commitment to several important principles,including free elections, a multi-party political system, theright to own private property, and equality under the law in theareas of sex, color, origin, language, occupation, social status,and religious belief.  The unity constitution was submitted to apopular referendum in May 1991 and over-whelmingly approved.Principal Government OfficialsPresidential CouncilChairman Ali Abdallah Saleh--PresidentPrime Minister--Haydar Abu Bakr Al-AttasMinister of Foreign Affairs--Abd al-Karim al-Iryani Ambassador to the United States--Moshin Al-AlainiAmbassador to the United Nations--Abdullah Al-AshtalThe Republic of Yemen maintains an embassy in the United Statesat 2600 Virginia Ave., NW,  Suite 705, Washington, DC  20037(tel. [phone]).ECONOMYAt the time of unification, both the YAR and the PDRY werestruggling with underdeveloped economies.  In the North,disruptions of civil war (1962-70) and frequent periods ofdrought dealt severe blows to a previously prosperousagricultural sector.  Coffee production, formerly the North'smain export and principal form of foreign exchange, declined inthe 1980s, as the cultivation of qat (a shrub whose leavescontain natural amphetamine and are chewed for a mild stimulatingeffect) increased.  Low levels of domestic industry andagriculture and the lack of raw  materials made the YAR dependenton imports.Trade deficits were compensated for by remittances from Yemenisworking abroad and foreign aid.  Beginning in the mid-1950s, theSoviet Union and China provided large-scale assistance to theYAR.  This aid included funding of substantial constructionprojects, scholarships for study in communist countries, andconsiderable military assistance.  Since the collapse of theSoviet Union, Russian aid to Yemen has effectively ceased.Industrial development was still in its early stages at the timeof unification, and was mainly in cement, food processing,cooking oil, flour, household plastic goods, and cigarettes.  In1966, traces of copper, sulfur, coal, and quartz were found.  Oilwas discovered in the Marib area in 1984 by an American oilcompany.  Reserves currently are projected at 500 millionbarrels.  An oil refinery began operation in April 1986.In the PDRY, economic activity was overwhelmingly concentrated inthe port city of Aden.  The economy of South Yemen sufferedgreatly when the UK military base at Aden was closed in 1967.The PDRY made small gains in diversification after the mid-1970s,and in 1982, a minor oil discovery was made by an Italiancompany.  Other firms and nations, particularly the former SovietUnion, later participated in efforts to discover and produce oilin South Yemen.  At the time of unification, much of SouthYemen's revenue was derived from refinery operations in whichcrude oil was imported to Aden and refined products exported.  Asin its northern counterpart, worker remittances and foreign aidwere extremely important to the PDRY economy.  Foreign assistanceto both countries declined, however, as oil-rich Gulf states cutback aid because of declining oil revenues.At unification, the PDRY had a centrally planned Marxist-orientedeconomy while the YAR was more market oriented.  The unifiedYemen Government currently is in the process of integrating twodisparate economic systems.  It hopes to complete thisintegration by the end of the 30-month transitional period, whichis scheduled to end on November 22, 1992.  Parliamentaryelections, which will complete this process, probably will nottake place until February 1993.The most important development for the Yemeni economy was thediscovery of oil in the 1980s.  The Shabwa fields in the South,the Marib fields in the  North, and the Joint Investment Area(called the "Jana Block" since unification) are all believed tohave substantial  oil reserves.  The success of oil developmentactivities will be important for Yemen's future economicdevelopment.  In 1990 and 1991, more than a dozen foreign oilcompanies, including US companies Occidental, Sun, Pecten(Shell-USA), and Chevron, signed production-sharing agreementswith the Yemeni Government to begin oil exploration in the South.After Iraq's invasion of Kuwait in August 1990, more than 750,000Yemeni expatriates living and working in the Arab Gulf countries,especially Saudi Arabia, returned to Yemen.  Saudi Arabia,Kuwait, the United Arab Emirates, and the United States stoppedor reduced their assistance to Yemen because of its Gulf policy,which was sympathetic to Iraq.Since unification in May 1990, Chinese aid has steadilydecreased.  Trade also has decreased since the Gulf War, as Chinanow requires hard currency for all purchases.  Chineseconcessionary financing--no interest loans--has beendiscontinued.  Current Yemeni debt to China is estimated at $200million.  China is still involved with several public worksprograms in Yemen, which includes highway construction andbuilding a dam.  They are still providing educational aid in theform of medical training to Yemeni students.The influx of the returnees, coupled with the cut in outsideassistance, has imposed severe burdens on the Yemeni economy:Remittances from expatriate workers largely stopped, andunemployment within Yemen increased. The returnees and theirchildren, comprising about 7% of the population, have increasedpressure on schools, health clinics, housing, and socialservices.  The Yemeni Government seeks increased bilateral andmultilateral assistance to cope with these economic problems.FOREIGN RELATIONSPrior to unification, the two nations pursued very differentexternal relations.  In the North, the Imams of Yemen sought tokeep their countries isolated.  Under the influence of CrownPrince Badr, large aid missions from the Soviet Union and thePeople's Republic of China had been established in 1958 and 1959,but communist aid declined after the end of the civil war in1970.Following the September 1962 revolution, the Yemen Arab Republicbecame closely allied with and heavily dependent on Egypt, whichsupplied troops to help defend the new republic.  The Saudisfeared that the republican government posed a threat to SaudiArabia's southern border and sup- ported the royalists, enablingthem to achieve considerable military success in North Yemen.After the Egyptian evacuation in 1967 and the subsequent royalistfailure to topple the republican regime, Saudi-Yemeni differenceswere overcome, and relations were re-established.In February 1989, North Yemen joined Iraq, Jordan, and Egypt informing the Arab Cooperation Council (ACC), an Arab regionalorganization intended to foster closer economic cooperation andintegration.  In September 1989, Sanaa hosted the second ACCsummit meeting, at which the four heads of state signed a numberof agreements in economic, agricultural, labor, cultural,educational, and other fields.  After unification, Yemen wasaccepted as a member of the ACC in place of its YAR predecessor.In the wake of the Gulf crisis, the ACC has remained inactive.In the South, the PDRY had diplomatic relations with manycountries in the East and West and with moderate Arab states,including Saudi Arabia, Kuwait, and Egypt.  However, relationsbetween it and the conservative Arab states of the Persian Gulfand the Arabian Peninsula had been marked by politicalincompatibility and military clashes, such as that with SaudiArabia in 1969 and 1973.  The PDRY was the only Arab state tovote against admitting new Arab states in the Gulf area to theUnited Nations and the Arab League.The regime which took control in 1986, however, continued formerPresident Ali Nasir Muhammad's more conciliatory approach toforeign relations and, in pursuit of wider acceptance, undertookextensive consultations with the Eastern bloc and Arab states.Since unification, the Yemen Government has reaffirmed itscommitment to the Arab League and its organizations and to theOrganization of the Islamic Conference.  It also has stated itscommitment to the cause of the Palestinians and the establishmentof a Palestinian state with its capital in Jerusalem.  On abroader scope, it has emphasized that  it will pursue anonaligned policy and will seek security in the Red Sea andIndian Ocean, with an emphasis on nuclear non-proliferation inthis region.  It also has stated its commitment to thedissemination of democracy throughout the world.The Gulf crisis dramatically affected Yemen's relations with itsneighbors  [see ECONOMY].   A member of the UN Security Council(UNSC) for 1990 and 1991, Yemen abstained on a number of UNSCresolutions concerning Iraq and Kuwait, including the mandatoryeconomic sanctions resolution (UNSCR 661), and voted against the"use of force resolution" (UNSCR 678).  During the crisis, theYemeni media was pro-Iraqi, anti-American, and anti-Saudi.  Afterthe invasion of Kuwait, Yemen, contrary to the rest of theregion, did not condemn the Iraqi invasion of Kuwait and did notsupport UN action to reverse the Iraqi invasion of Kuwait.  TheYemeni Government maintained, and continues to maintain,high-level contacts with the Saddam regime.  However, thegovernment called for the withdrawal of Iraqi troops from Kuwait.The Yemeni Government abstained on the comprehensive "cease-fireresolution" (UNSCR 687) at the end of the Gulf  War.US-YEMEN RELATIONSThe United States had differing relations with the two Yemeninations.  The United States established diplomatic relations withthe Imamate of Yemen in 1946.  A resident legation, laterelevated to embassy status, was opened in Taiz, the capital atthe time, on March 16, 1959.  The United States recognized thenew Yemen Arab Republic on December 19, 1962.  On June 6, 1967,the YAR broke diplomatic relations with the United States in thewake of the Arab-Israeli conflict of that year.  Diplomaticrelations were restored following a visit by Secretary of StateWilliam P. Rogers  in 1972.During a border conflict between the Yemen Arab Republic and thePeople's Democratic Republic of Yemen in February 1979, theUnited States cooperated with Saudi Arabia to greatly expand thesecurity assistance program to the YAR, and relations improvedgreatly.  Hunt Oil of Dallas, Texas, discovered oil in the YAR in1984.  George Bush, while Vice President, visited  in April 1986,and YAR President Saleh visited the United States in January1990.  The United States had a $42 million US Agency forInternational Development (USAID) program in 1990.  From 1980 to1990, the United States provided the YAR with assistance in theagriculture, education, health, and water sectors.  In additionto its USAID program, the United States has about 50 Peace Corpsvolunteers in Yemen engaged in agricultural development,irrigation, nursing, and English instruction.  The US InformationService operates an English-language institute in Sanaa.On December 7, 1967, the United States recognized the People'sDemocratic Republic of Yemen and elevated its consulate generalin Aden to embassy status.  However, relations were strained dueto South Yemen's apparent concerns over US policy toward SaudiArabia and Israel.  Furthermore, the PDRY Government was closelyassociated with known terrorist organizations and was,consequently,  placed on the list of nations that supportterrorism.  On October 24, 1969, South Yemen formally brokediplomatic relations with the United States and expelled thediplomatic mission.The United States and the PDRY re-established diplomaticrelations on April 30, 1990,  3 weeks before the announcement ofunification.  After the announcement, the United Statesofficially recognized the Republic of Yemen.  Widely divergentviews between the American and Yemeni Governments have affectedthe bilateral relationship.  In FY 1990, US foreign aid to Yemenwas $22 million.  This aid was reduced to $2.9 million in FY 1991and $3 million in FY 1992, due to Yemeni support for Iraq in theGulf War.  The small US military assistance program to Yemen alsowas canceled during the Gulf crisis.Principal US Officials:Ambassador--Arthur H. HughesCharge d'Affaires a.i.--Bruce StrathearnThe address of the US Embassy in Yemen is PO Box 22347, Sanaa,Republic of Yemen.Additional InformationAvailable from the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402:American University.  Area Handbook for the Yemens.TRAVEL NOTES:Customs and currency:  A visa is required for US citizens and maybe obtained at the Republic of Yemen  Embassy in Washington, DC,or the Mission to the United Nations, 211 East 43d St., New York,NY 10017.  Customs controls prohibit liquor.  Persons arriving inthe Republic of Yemen may be required to change US $150 intoYemeni rials at the time of arrival; sufficient funds should,therefore, be carried to meet this requirement.Climate and clothing:  Climate varies according to area; cool anddry at high elevations (Sanaa), hot and humid along the Red Seaand Gulf of Aden coastal plains.  Lightweight wash-and-wearclothing is best.Health:  Smallpox, yellow fever, cholera, typhoid, and gammaglobulin shots are recommended; check current healthrequirements.Published by the United States Department of State --  Bureau ofPublic Affairs  -- Office of Public Communication -- Washington,DC -- November 1992.Department of State Publication 10021--Background Notes Series-- This material is in the public domain and may  be reprintedwithout permission; citation of this source is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>U.S. Department of State  Background Notes: Vietnam, August 1995  Bureau of Public Affairs      August 1995  Official Name: Socialist Republic of Vietnam    PROFILE    Geography    Area: 329,560 sq. km. (127,243 sq. mi.); larger than Virginia, North   Carolina, and South Carolina combined.  Cities (1994): Capital--Hanoi (3.5 million); Other cities--Ho Chi   Minh City (formerly Saigon--5 million); Haiphong (1.5 million).  Terrain: Varies from mountainous to coastal delta.  Climate: Tropical monsoon.    People    Nationality:  Noun and adjective--Vietnamese (sing. and pl.).  Population (1994): 74 million.  Annual growth rate (1994): 2.4%.  Ethnic groups: Vietnamese (85%-90%), Chinese, Muong, Thai, Khmer,   Cham, mountain groups.  Religions: Buddhism, Hoa Hao, Cao Dai, Christian (predominantly Roman   Catholic, some Protestant), animism, Islam.  Languages: Vietnamese, English (increasingly favored as a second   language), some French, Chinese, Khmer, mountain area languages.  Literacy: 88%.  Health: Infant mortality rate--36/1000. Life expectancy--63 yrs.   male, 67 yrs. female.    Government    Type: Communist people's republic.  Independence: Sept. 2, 1945.  Reunification: July 2, 1976.  New constitution: 1992.  Branches: Executive--president (head of state and chair of National   Defense and Security Council) and prime minister (heads cabinet of   ministries and commissions); "People's Committees" governing in local   jurisdictions.  Legislative--National Assembly; locally, People's   Councils. Judicial--Supreme People's Court.  Administrative subdivisions: 50 provinces, 3 municipalities under   central government control, one special zone; urban quarters and   rural districts; urban precincts and rural communes.  Political party: Vietnamese Communist Party, formerly (1951-76)   Vietnam Worker's Party, itself the successor of the Indochinese   Communist Party founded in 1930.  Suffrage: Universal at 18.    Economy    GDP (1994): $15.4 billion.  Real growth rate (1994): 8.8%.  Per capita income (1994): $220.  Natural resources: Phosphates, coal, manganese, bauxite, chromate,   offshore oil deposits, forests, rubber, marine products.  Agriculture (36% of GDP--38% of export earnings):  Products--rice,   rubber, fruit, vegetables, corn, manioc, sugar cane, coffee, fish.   Industry (26% of GDP-- 34% of total exports): Food processing,   textiles, cement, chemical fertilizers, steel, electric power.  Trade (1994): Exports--$3.6 billion: crude oil, textiles, marine   products, rice (third-largest exporter in world) and coal. Major   partners--Japan (22%), Singapore, Hong Kong, South Korea, and China.   Imports--$4.5 billion: petroleum, steel products, transport-related   equipment, chemicals, fertilizers, medicines, raw cotton.  Major   partners--Singapore (28%), Japan, South Korea, France, and Taiwan.   Exports to U.S.--$50 million. Imports from U.S.--$172 million.    U.S.-VIETNAM RELATIONS    President Clinton announced the normalization of diplomatic relations   with Vietnam on July 11, 1995. This followed the establishment of   Liaison Offices in Hanoi and Washington, DC, in January 1995 and the   lifting of the U.S. trade embargo on Vietnam in February 1994.   American companies have entered the Vietnamese market, and the U.S.   is now the eighth-largest foreign investor in Vietnam, with more than   $530 million committed in 34 projects as of June 1995.    The U.S. maintains an active dialogue with Vietnam on issues   concerning Americans missing from the war in Vietnam. It has been   U.S. policy since the early 1980s that normalization of relations   with Vietnam be based on withdrawal of the Vietnamese military from   Cambodia as part of a comprehensive political settlement--such a   settlement was signed in October 1992--and continued cooperation on   the prisoner of war/missing in action (POW/MIA) issue and other   humanitarian concerns.    In the 1980s, the United States and Vietnam developed and sustained   an active relationship on a range of humanitarian issues,   particularly on achieving the fullest accounting possible of   Americans missing and unaccounted for in Indochina. The two countries   agreed to handle these issues as a separate, humanitarian agenda,   without reference to political differences.    In June 1993, progress in repatriating the remains of American   servicemen increased, and a Vietnamese Government office was   established in Ho Chi Minh City to facilitate better accounting   operations in the south. A month later, the U.S. dropped its   objection to bilateral and multilateral lending to Vietnam. In 1994,   based on significant cooperation on the part of the Vietnamese on   POW/MIA issues, President Clinton removed the American trade embargo   on Vietnam. Since the lifting of the embargo, cooperation with   Vietnam on POW/MIA issues has increased. In January 1995, the two   countries opened liaison offices in their respective capitals, and on   July 11, President Clinton announced the establishment of diplomatic   relations with Vietnam.    Since January 1993, 167 sets of remains believed to be American have   been returned to the U.S., and 42 Americans have been identified.   Investigators have made a determination of the fate of 80 of 135   discrepancy cases--where individuals could have survived but did not   return alive and remain unaccounted for--leaving only 55 individuals   whose fates are unresolved. Achieving the fullest possible accounting   for those who did not return from the war remains the   administration's highest priority in its relations with Vietnam.    Principal U.S. Embassy Officials    Charge d'Affaires--Desaix Anderson    The U.S. embassy in Hanoi is at 7 Lang Ha Road, and the mailing   address is USLO Hanoi, PSC 461, Box 400, FPO AP 96521-0002 (tel. 844-  431-500 through 507; fax [phone]).    GOVERNMENT AND  POLITICAL CONDITIONS    The most important political institution in Vietnam is the Communist   Party of Vietnam (formerly the Vietnam Worker's Party), headed by   General Secretary Do Muoi. Sweeping amendments to the country's 1981   constitution were approved in April 1992, introducing a major   restructuring of the government while reaffirming the role of the   Communist Party of Vietnam as the leading force of state and society.    The Communist Party    According to the constitution, the Communist Party must operate   within the framework of the laws of the country and is separated from   the day-to-day operation of the government. In reality, however,   government policy remains largely the prerogative of the communist   leadership.    The Communist Party Central Committee membership is elected from the   large and unwieldy national Party Congress, which is supposed to   gather every five years and last met in 1991.  The Central Committee   represents less than 10% of the national Party Congress and meets   about twice a year.    Government policy is set by the all-powerful party Politburo and   carried out by the Secretariat, the governmental organ which oversees   day-to-day policy implementation. Many major policy directives are   issued as Central Committee resolutions but are formulated by the   Politburo; many others emanate directly from the Politburo.    Overlapping party and state positions continue to be held even though   there has been some effort to discourage both that practice and   direct party interference in government affairs. All but six out of   17 party Politburo members held high positions in the government as   of 1994, and 92% of the deputies in the National Assembly are party   members. This is also the case at lower levels, where provincial,   district, and village party officials dominate the administrative   councils.    Although the rate of new membership in the Communist Party has   decreased since the 1980s, the party remains the dominant institution   in Vietnamese society.    Government Structure    The most important powers within the Vietnamese Government--as   opposed to the Communist Party--are the executive agencies: the   offices of the president and the prime minister (most of whose   members are also on the party's Central Committee).    In 1992, the collective Council of State--which had served as the   parliament's standing committee and whose chairman acted as   ceremonial head of state--was abolished.  It was replaced by an   office of the president with authority over the armed forces and the   power to recommend the dismissal of government officials (subject to   the approval of the National Assembly). The revised constitution also   replaced the cumbersome Council of Ministers with a cabinet headed by   the prime minister.    The Vietnamese President, Le Duc Anh, functions as head of state but   also serves as commander of the armed forces and chairman of the   Council on National Defense and Security. According to the   constitution, these bodies, as well as the heads of ministries and   commissions, are elected by the National Assembly. Prime Minister  Vo   Van Kiet heads a cabinet composed of three deputy prime ministers as   well as the directors of the country's 31 ministries and commissions.   Four members of the Prime Minister's cabinet are concurrently members   of the Politburo.    The National Assembly--which under the 1992 constitutional revisions   was granted an increase in its authority and independence--is   designated as the highest representative body of the people and the   only body with legislative powers. Its members are elected every five   years, and it meets twice yearly.    The constitutional amendments of 1992 strengthened the legislative   and oversight powers of the National Assembly, giving it more   authority over defense and security policy and financial matters. The   assembly's standing committee and permanent committees were granted   new powers as well. The constitution also provided for choice in   parliamentary election balloting, which, for the first time,   permitted non-party members to be elected in 1992.    Although the National Assembly theoretically exercises wide lawmaking   and appointive authority, in the past, it has simply given formal   approval to proposals from the executive organs.    The chairman of the National Assembly is Nong Duc Manh, the first   member of an ethnic minority to hold this post and the first to   simultaneously command a position in the Politburo.    Local legislative bodies, called People's Councils, are elected at   provincial, district, and village levels. The councils choose   administrative committees that handle routine business on the local   level and are ultimately responsible to the office of the prime   minister. Their function is more executive than legislative.    Principal Officials    General Secretary of the Communist Party--Do Muoi  Prime Minister--Vo Van Kiet  President--Le Duc Anh  National Assembly Chairman--Nong Duc Manh    The embassy of the Socialist Republic of Vietnam is at 1233 20th St.   NW, Suite 501, Washington, DC 20036 (tel. [phone]; fax 202-861-  0917).    TRAVEL AND BUSINESS INFORMATION    The U.S. Department of State's Consular Information Program provides   Travel Warnings and Consular Information Sheets. Travel Warnings are   issued when the State Department recommends that Americans avoid   travel to a certain country. Consular Information Sheets exist for   all countries and include information on immigration practices,   currency regulations, health conditions, areas of instability, crime   and security, political disturbances, and the addresses of the U.S.   posts in the subject country. They can be obtained by telephone at   [phone] or by fax at [phone]. To access the Consular   Affairs Bulletin Board by computer, dial [phone], via a modem   with standard settings. Bureau of Consular Affairs' publications on   obtaining passports and planning a safe trip aboard are available   from the Superintendent of Documents, U.S. Government Printing   Office, Washington, DC 20402, tel. [phone].    Emergency information concerning Americans traveling abroad may be   obtained from the Office of Overseas Citizens Services at (202) 647-  5225.    Travelers can check the latest health information with the U.S.   Centers for Disease Control and Prevention in Atlanta, Georgia. A   hotline at [phone] gives the most recent health advisories,   immunization recommendations or requirements, and advice on food and   drinking water safety for regions and countries. A booklet entitled   Health Information for International Travel (HHS publication number   CDC-94-8280, price $7.00) is available from the U.S. Government   Printing Office, Washington, DC 20420, tel. [phone].    Information on travel conditions, visa requirements, currency and   customs regulations, legal holidays, and other items of interest to   travelers also may be obtained before your departure from a country's   embassy and/or consulates in the U.S. (for this country, see   "Principal Officials" listing in this publication).    Upon their arrival in a country, U.S. citizens are encouraged to   register at the U.S. embassy (see "Principal U.S. Embassy Officials"   listing in this publication). This may help family members contact   you en route in case of an emergency.    Further Electronic Information:    Consular Affairs Bulletin Board (CABB). Available by modem, the CABB   provides Consular Information Sheets, Travel Warnings, and helpful   information for travelers. Access at [phone] is free of charge   to anyone with a personal computer, modem, telecommunications   software, and a telephone line.    Department of State Foreign Affairs Network. Available on the   Internet, DOSFAN provides timely, global access to official U.S.   foreign policy information. Updated daily, DOSFAN includes Background   Notes; Dispatch, the official weekly magazine of U.S. foreign policy;   daily press briefings; directories of key officers of foreign service   posts; etc. DOSFAN is accessible three ways on the Internet:    Gopher: dosfan.lib.uic.edu  URL: gopher://dosfan.lib.uic.edu/  WWW: http://dosfan.lib.uic.edu/dosfan.html    U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly   basis by the U.S. Department of State, USFAC archives information on   the Department of State Foreign Affairs Network, and includes an   array of official foreign policy information from 1990 to the   present. Priced at $80 ($100 foreign), one-year subscriptions include   four discs (MSDOS and Macintosh compatible) and are available from   the Superintendent of Documents, U.S. Government Printing Office,   P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call (202) 512-  1800 or fax [phone].    Federal Bulletin Board (BBS). A broad range of foreign policy   information also is carried on the BBS, operated by the U.S.   Government Printing Office (GPO). By modem, dial [phone]. For   general BBS information, call [phone].    National Trade Data Bank (NTDB). Operated by the U.S. Department of   Commerce, the NTDB contains a wealth of trade-related information,   including Country Commercial Guides. It is available on the Internet   (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202)   482-1986 for more information.    ========================================  Background Notes Series -- Published by the United States Department   of State -- Bureau of Public Affairs -- Office of Public   Communication -- Washington, DC --  Managing Editor: Peter A. Knecht    Vietnam -- Department of State Publication 8955 -- August 1995 --   Editor: Marilyn J. Bremner    This material is in the public domain and may be reprinted without   permission; citation of this source is appreciated.  For sale by the   Superintendent of Documents, U.S. Government Printing Office,   Washington, DC 20402.  (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: VENEZUELAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of VenezuelaPROFILEGeographyArea:  912,050 sq. km. (352,143 sq. mi.); about the size of Texas and Oklahoma combined.Cities:  Capital--Caracas (metropolitan area population est. 2.8 million, 1990 census).  Other major cities--Maracaibo, Valencia, Barquisimeto.Terrain:  Varied.Climate:  Varies from tropical to temperate, depending on elevation.PeopleNationality:  Noun and adjective--Venezuelan(s).Population (1993 est.):  20.6 million.Annual growth rate:  2.3%.Ethnic groups:  Spanish, Italian, Portuguese, Arab, German, Indian, African.Religions:  Roman Catholic 96%.Languages:  Spanish (official), numerous Indian dialects.Education:  Years compulsory--9.  Literacy--91%.Health:  Infant mortality rate--21/1,000.  Life expectancy--72 yrs.Work force (about 7.5 million):  Services--62.5%.  Manufacturing--15.5%.  Agriculture--11%.  Construction--9%.  Other--2%.GovernmentType:  Federal republic.Independence:  July 5, 1821.Constitution:  January 23, 1961.Branches:  Executive--president (head of government and chief of state; five-year term); Council of Ministers (cabinet).  Legislative--bicameral congress (203-member Chamber of Deputies, 53-member Senate) elected for five-year term.Judicial--18-member Supreme Court.Subdivisions:  22 states, one federal district (Caracas), and one federal dependency (72 islands).Major political parties:  Democratic Action (Accion Democratica--AD), Social Christian (Comite Organizador Politico por Elecciones Independientes--COPEI), Convergencia (the President's coalition), the Radical Cause (Causa R), and the Movement to Socialism (Movimiento al Socialismo--MAS).EconomyGDP (1993):  $58.5 billion.Growth rate (1993):  -1%.GDP per capita:  $2,800.Natural resources:  Petroleum, natural gas, coal, iron ore, gold, other minerals, hydroelectric power, bauxite.Agriculture (5% of GDP):  Products--rice; coffee; corn; sugar; bananas; dairy, meat, and poultry products.Petroleum industry (23% of GDP):  oil refining, petrochemicals.Manufacturing (21% of GDP):  Types--iron and steel, paper products, aluminum, textiles, transport equipment, consumer products.Trade (1993):  Exports--$14.2 billion:  petroleum ($10.5 billion), iron ore, coffee, steel, aluminum, cocoa.  Major markets--U.S., Japan, Germany, Colombia, Netherlands, Brazil, Italy.  Imports--$11 billion:  machinery and transport equipment, manufactured goods, chemicals, foodstuffs.  Major suppliers--U.S., Japan, Germany, Spain, Italy, Colombia, Brazil.Official exchange rate:  170 bolivars = U.S. $1.PEOPLE AND HISTORYMost Venezuelans are of European, Indian, and/or African descent.  Many Spanish, Italian, and Portuguese immigrants arrived during the early 1950s.  About 85% of the population lives in urban areas, most of which are along the coast or in the Andes.  Almost half of Venezuela's land area lies south and east of the Orinoco River, yet it contains only 5.3% of the population.  In 1992, Venezuelans' median age was 21.The indigenous peoples of Venezuela ranged from agriculturalists--the Timotes, who used irrigation and terracing--to less-advanced groups living on islands offshore.  Coastal Carib tribes, especially the Teques and the Caracas, proved formidable enemies to the Spanish who followed Columbus after 1498; the Carib leader Guarcaipuro mobilized as many as 10,000 warriors to resist Spanish settlement.The first permanent Spanish settlement in South America--Nuevo Toledo--was established in Venezuela in 1522.  Spanish explorers noted that natives used a black, oily liquid--petroleum--in their daily chores and took some of it to Spain as a curiosity.  But the Spanish were interested in gold and looked for it elsewhere in their colonial empire.  Nor did they appreciate Venezuela's agricultural potential.Other Europeans, especially English adventurers and Dutch and French traders, began developing important commercial connections in the Venezuela region.  Spain's eventual efforts to limit their inroads and develop the colony proved counterproductive, and Venezuelans began to grow restive under colonial control.  Armed uprisings broke out in 1795, 1797, and 1799.  In 1806, Francisco de Miranda--a Venezuelan aristocrat--launched an unsuccessful rebellion.Independence was achieved in 1821 under the leadership of Simon Bolivar.  Venezuela, along with what are now Colombia, Panama, and Ecuador, was part of the Republic of Gran Colombia until 1830, when it separated and became a sovereign country.Much of Venezuela's 19th-century history was characterized by periods of political instability, dictatorial rule, and revolutionary turbulence.  The first half of the 20th century was marked by periods of authoritarianism--including dictatorships from 1908-35 and from 1950-58.  Following the overthrow of Gen. Marcos Perez Jimenez in 1958, democratic elections were held every five years.  Perez Jimenez' ouster also marked the start of the military's withdrawal from direct involvement in national politics.  The presidency has passed back and forth between the country's two main political parties:  Democratic Action (AD) won in 1958, 1963, 1973, 1983, 1988, and the Social Christian (COPEI) Party won in 1968 and 1978.After a constitutionally mandated 10-year hiatus from power, Carlos Andres Perez took office again as President on February 2, 1989, for a second five-year term.  He abandoned economic nationalism, import substitution, and state intervention, the trademarks of his first term (1974-79).  The decline of oil prices in the mid-1980s and changes in policy forced austerity on consumers accustomed to subsidies.  Economic hardship and the austerity program sparked violence in February 1989.When police no longer could maintain order, the government temporarily suspended some constitutional rights and used military force to restore order.  This turmoil set the stage for two military coup attempts against the Perez government, in February and November 1992.  In May 1993, Perez was removed from office pending resolution by the Supreme Court of charges against him for malfeasance.Perez was replaced by Ramon J. Velasquez, who presided over the December 1993 elections that brought Rafael Caldera to office.  Caldera, a founder of COPEI and a former president (1969-1974), ran on a coalition "Convergence" ticket promising a reduction in corruption; he won the presidency with just over 30% of the valid vote--a seven-percentage-point margin over his closest rival.  However, new elections and a new leader did not bring to an end the country's economic and political problems.GOVERNMENTThe president is elected by a plurality vote with direct and universal suffrage.  The term of office is five years, and a president cannot be re-elected until at least two terms have been served by others.  The president decides the size and composition of the cabinet and makes appointments to it with the involvement of the congress.  The executive branch initiates most legislation, which the legislature debates and approves, alters, or rejects.  The congress has the authority to override a presidential veto, but the president can also ask the congress to reconsider the portions of the bill found objectionable.The congress is bicameral, and elections for the Senate and the Chamber of Deputies are held at the same time every five years.  Until 1993, voters cast ballots for a party list of candidates.  The 1993 national election permitted, for the first time, the direct election of one-half of the Chamber of Deputies by name and district.  When the congress is not in session, its Delegated Committee acts on matters relating to the executive and in oversight functions. All courts in Venezuela are part of the federal system.  The 18 members of the Supreme Court of Justice are elected by a joint session of the congress to serve nine-year terms; one-third of the court is elected every three years, and each justice can serve only one term.  The minister of justice names judges to the lower civilian courts, which include district courts, municipal courts, and courts of first instance.  National SecurityThe armed forces number 89,000 personnel in four service branches--army, navy (including the marine corps), air force, and the Armed Forces of Cooperation (FAC), commonly known as the national guard--whose primary mission is to enforce internal security.Principal Government OfficialsPresident--Rafael CalderaForeign Minister--Miguel Angel Burelli RivasAmbassador to the United States--Pedro Luis EcheverriaAmbassador to the United Nations--Enrique Tejera ParisAmbassador to the OAS--Sebastian AlegrettVenezuela's embassy in the United States is at 1099 30th St. NW, Washington, DC 20007 (tel. [phone]). Consulates are in Boston, Chicago, Houston, Miami, New Orleans, New York, San Francisco, and Puerto Rico.  Only consulates issue visas.POLITICAL CONDITIONSVenezuela's history of free and open elections since 1958 and lack of military dominance in national politics has earned it a reputation as one of the more stable democracies in Latin America.  But the country has undergone a series of political and economic crises since early 1992 which have resulted in suspensions of constitutional rights.Its most recent economic and financial crisis led to restrictions on civil liberties earlier this year.  President Caldera gave the police the power to detain people without warrants, to enter homes without warrants, and to seize property without compensation.  With the government controlling imports--including supplies of imported newsprint and ink--newspaper publishers worried that the President would try to exert undue influence over reporting.  When the congress voted to restore civil liberties in late July 1994, the President signed a decree suspending them again.  He then challenged the congress to put the matter to a national referendum; congressional leaders agreed to uphold the President's decree.Despite this latest crisis, Venezuela's political and electoral system in recent years had made progress in becoming more open.  The 1993 national elections--with the presidency won by Caldera's coalition party--saw the first time in decades that elections were not dominated by the usual two political parties.  Also, as noted, the direct election of one-half of the Chamber of Deputies by name and district was permitted for the first time.  This resulted in a national congress comprised of four political blocs of roughly equal size, in contrast to the AD- and COPEI-dominated political system of the recent past.  Venezuela's armed forces have rejected a direct role in national politics since 1959.  Civil-military relations in Venezuela are good.  The majority of the military support democracy and the Caldera administration.  There have been some departures from this apolitical position in the recent past--such as the two tries in 1992 by elements of the military to overthrow the government--but these coup attempts were put down by the armed forces. On the local level, a decentralization of power from the national government to state and municipal authorities had begun in 1989 with the direct election of governors and mayors.  Until that year, the states were administered by governors appointed by the president.  In December 1989, governors in 20 states and mayors in 269 municipalities were elected for the first time in the country's history.  This election also was the first to use a system allowing the voter to choose individual candidates by name, rather than selecting only among party slates.  State and municipal elections were held again in 1992;  the next round of local elections is scheduled for 1995.ECONOMYVenezuela is rich in oil and other mineral resources, but its per capita income is only average for Latin America.  The economy has been shrinking in real terms since 1992; the inflation rate for 1993 was 46%.  As of December 1993, the country had $27.3 billion in public external debt.Venezuela's current economic crisis was triggered by the collapse of the country's banking system in early 1994.  The government's unsuccessful bank bailout cost an estimated half-year's budget.  The government had tried to intervene and assist many of the largest banks, which represented more than half of the nation's deposit base.  President Caldera has implemented a system of exchange and price controls to stem the flow of foreign exchange and to halt price increases.  GDP is expected to decline by 4%-5% for 1994.Due to the series of political and economic crises that Venezuela has experienced since 1992, business confidence within the country has been shaken, and there is increased caution by international investors.  Although new banking and insurance laws extend national treatment to foreign investors in the financial field, few have expressed interest.  Small and undercapitalized, the financial sector already had been declining as a percentage of GDP in recent years.  The government has no current financing arrangement with the International Monetary Fund (IMF).  Venezuela receives project loans from the World Bank and Inter-American Development Bank.Petroleum and Other ResourcesVenezuela's economy is dominated by petroleum; oil prices rebounded earlier this year, providing a boost for the economy.  Until recently, the country was largely an exporter of crude oil but now is predominantly a marketer of oil products.  In 1993, the petroleum industry accounted for 23% of GDP, 74% of exports, and 61% of central government revenue.The Government of Venezuela has opened up much of the hydrocarbon sector to foreign investment, promoting the establishment of massive new petrochemical joint ventures and reactivation of inactive fields.  Authorization of foreign participation in exploration and production seems imminent.  A program to privatize state-owned enterprises, begun in 1991, has stalled in recent years, but the Caldera administration has announced that further privatizations, including heavy industry, will go ahead.An abundance of other resources, such as iron ore, coal, bauxite, hydroelectric power, and gold are in various stages of development.  The Guasare Basin coal field is one of the larger fields in the Americas, and the government hopes to produce 10 million metric tons a year by the mid-1990s, making Venezuela a leading exporter of coal.  As projects develop over the next five years, mineral exports are expected to at least double in volume.Manufacturing, Agriculture, And TradeManufacturing makes up 21% of GDP.  Venezuela manufactures and exports steel, aluminum, textiles, apparel, beverages, and foodstuffs.  It also produces cement, tires, paper, and fertilizers, and assembles cars for both the domestic and export market.Agriculture accounts for only 5% of GDP, 11% of the labor force, and 20% of the land area.  The staple crops are maize and sorghum; most of Venezuela's wheat is imported.  Venezuela's main export crops are coffee and cocoa.  The sector is inefficient and depends on a network of subsidies and trade barriers.Venezuela usually has a trade surplus.  In recent years, non-traditional (i.e., non-petroleum) exports have been growing rapidly but still constitute only about one-fourth of total exports.  The United States is its major trading partner, but regional markets--particularly that of fellow Andean Pact member and neighbor Colombia--are growing in importance.Under former President Perez, Venezuela evinced an interest in joining the North American Free Trade Agreement (NAFTA).  President Caldera supports Venezuela's bilateral free trade agreement with Colombia and also signed the G-3 agreement with Colombia and Mexico earlier this year.Labor and InfrastructureVenezuela's labor force of about 7.5 million is growing at 2.5% a year.  Economic contractions sharply pushed up unemployment beginning in 1993 and also increased the informal sector's share of total employment to an estimated 43% in 1994.  The public sector employs 19% of the work force, while less than 1% works in the capital-intensive oil industry.  About 25% of employed workers are unionized.Venezuela has an extensive road system.  With the exception of air service, transportation and communications have failed to keep pace with the country's needs.  Much of the infrastructure suffers from inadequate maintenance.  Caracas has a modern subway, but only one functioning rail line serves the rest of the country.FOREIGN RELATIONSVenezuela traditionally has said that its international conduct will be governed by:--  Respect for human rights;--  The right of all peoples to self-determination;--  Non-intervention in the internal affairs of other nations;--  Peaceful settlement of disputes between nations, including border disputes;--  The right of all peoples to peace and security; and--  Support for democracy.During the Perez presidency, Venezuela maintained an influential role in foreign affairs.  Joined by Colombia, Mexico, and Panama, the country sought a regional solution to Central America's problems through the Contadora process.  Venezuela's political parties played a prominent role in helping Nicaragua organize its own elections in 1990, and it hosted peace talks between El Salvador and the rebel Farabundo Marti National Liberation Front.  Venezuela also was active in international forums such as the Non-aligned Movement.  It has adopted the American Convention on Human Rights and supports the Inter-American Commission on Human Rights.Under the Caldera administration, Venezuela has been less active in the international and regional arenas, reflecting the country's and the government's preoccupation with pressing internal economic problems.  Regionally, Venezuela continues to participate in such groupings as the Friends of Haiti and the Friends of Guatemala.  The Caldera government has indicated that its foreign policy priorities will be relations with Colombia, Brazil, and the Caribbean; regional and sub-regional economic integration; and relations with the United States.The country has numerous border disputes with its neighbors but seeks to resolve them peacefully.  Bilateral commissions have been established by Venezuela and Colombia to address a range of pending bilateral issues, including the resolution of the maritime boundary in the Gulf of Venezuela.  Relations with Guyana are complicated by Venezuela's claim to the area up to the Essequibo River--more than one-half the area of Guyana.  With the concurrence of both countries, the border issue was referred to the UN Secretary General for a determination of suitable means for settlement in 1987.  Since then, representatives of the two governments have held exchanges on the boundary under the auspices of the "good offices" of the United Nations.U.S.-VENEZUELAN RELATIONSThe United States is Venezuela's most important trading partner, representing more than 45% of its international trade.  The U.S. exports to Venezuela machinery, transportation equipment, agricultural commodities, and auto parts and imports oil and other natural resources.  The United States allocated $400,000 in FY 1994 for anti-narcotics assistance to Venezuela, which also received about $87,500 in International Military Educational Training (IMET) funds.  There is no USAID or Peace Corps mission in Venezuela.The United States and Venezuela share views on strengthening democratic institutions around the world; furthering human rights; accelerating sound economic, social, and cultural development through orderly and progressive change within the framework of a free society; and cooperating in the defense and security of the Western Hemisphere against aggression or subversion.Along with the United States, Venezuela supports the goals of nuclear non-proliferation in the hemisphere, conventional arms restraint, anti-terrorism, and the promotion of hemispheric economic development.  Venezuela and the United States both consider democratization in the region important.  But Venezuela also emphasizes avoiding force and not intervening in the internal affairs of states.Principal U.S. Embassy OfficialsAmbassador--Jeffrey DavidowDeputy Chief of Mission--Robert MorleyPolitical Counselor--Thomas TonkinEconomic Counselor--Charles AhlgrenCommercial Attache--Edgar FultonConsul General--James BlanfordAdministrative Counselor--Arnold MunozRegional Security Officer--Edward NapolielloPublic Affairs Counselor--Peter De ShazoThe U.S. embassy is on Avenida de Miranda and Avenida Principal de la Floresta, Caracas (tel. [phone]).  Office hours are 8 am to 5 pm, Monday through Friday.  The embassy is scheduled to move to a new location early in 1995. (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: URUGUAYPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Oriental Republic of UruguayPROFILEGeographyArea:  176,000 sq. km. (68,000 sq. mi.); slightly smaller than Oklahoma.Cities:  Capital--Montevideo (est. pop. 1.4 million).Terrain:  Plains and low hills, 84% agricultural.Climate:  Temperate.PeopleNationality:  Noun and adjective--Uruguayan(s).Population (1994):  3.2 million.Annual growth rate:  0.6%.Ethnic groups (est.):  European descent 90%, mestizo 7%, African descent 3%.Religions:  Roman Catholic 66%, Protestant 2%, Jewish 2%, non-professing or other 30%.Language:  Spanish.Education:  Literacy--96%.Health:  Life expectancy-- 75 yrs. (female); 69 yrs. (male).  Infant mortality rate--24/1,000.Work force (1993):  1.4 million.  Manufacturing--22%.  Government--20%.  Commerce--17%.  Agriculture--13%.  Utilities, construction, transport, and communications--12%.GovernmentType:  Republic.Independence:  1828.Constitution:  February 1967. Branches:  Executive--president (chief of state and head of government).  Legislative--General Assembly consisting of Chamber of Deputies, 99 seats; Senate, 30 seats.  Judicial--Supreme Court of Justice.Administrative subdivisions:  19 departments with limited autonomy.Political parties:  Colorado, Blanco (National), Broad Front Coalition, New Space Party.Suffrage:  Universal at 18.Economy (1993)GDP:  $13.1 billion.Annual growth rate:  2%.Per capita GDP:  $4,200.Natural resources:  Arable land, hydroelectric potential, gold, granite, and marble.Agriculture (11% of GDP):  Products--beef, wool, grains, fruits, vegetables.Industry (25% of GDP):  Types--meat processing, wool and hides, textiles, shoes, handbags, leather apparel, tires, cement, fishing, petroleum refining.Trade:  Exports--$1.6 billion:  meat, wool, hides, leather and wool products, fish, rice, furs.  Major markets--U.S. 9%, EU 20% (Germany 6%), Latin American Integration Association (ALADI) 52% (Argentina 19%, Brazil 22%).  Imports--$1.8 billion:  fuels, chemicals, machinery, metals.  Major suppliers--U.S. 11%, EU 17% (Germany 5%), ALADI 47% (Argentina 17%, Brazil 23%).Exchange rate (1994):  5.10 Uruguayan pesos = U.S. $1.PEOPLEUruguayans share a Spanish linguistic and cultural background, even though 25% of the population is of Italian origin.  Most are Roman Catholic.  Church and state are officially separated.  Uruguay is distinguished by its high literacy rate and large urban middle class.  The overall drop in real income since the 1960s has increased poverty, but the average Uruguayan standard of living still compares favorably with that of most other Latin Americans.  Metropolitan Montevideo, with about 1.4 million inhabitants, is the only large city.  The rest of the urban population lives in about 20 towns.  During the past two decades, an estimated 500,000 Uruguayans have emigrated, principally to Argentina and Brazil.  As a result of the low birth rate and relatively high rate of emigration of younger people, Uruguay's population is quite mature.HISTORYThe only inhabitants of Uruguay before European colonization of the area were the Charrua Indians, a small tribe driven south by the Guarani Indians of Paraguay.  The Spanish discovered the territory of present-day Uruguay in 1516, but the Indians' fierce resistance to conquest, combined with the absence of gold and silver, limited settlement in the region during the 16th and 17th centuries.  The Spanish introduced cattle, which became a source of wealth in the region.  Spanish colonization increased as Spain sought to limit Portugal's expansion of Brazil's frontiers.  Montevideo was founded by the Spanish in the early 18th century as a military stronghold; its natural harbor soon developed into a commercial center competing with Argentina's capital, Buenos Aires.Uruguay's early-19th-century history was shaped by ongoing fights between the British, Spanish, Portuguese, and colonists for dominance in the Argentina-Brazil-Uruguay region.  In 1811, Jose Gervasio Artigas--who became Uruguay's national hero--launched a revolt against Spain which resulted in the formation of a regional federation with Argentina.  In 1821, Uruguay was annexed to Brazil by Portugal, but Uruguayan patriots declared independence from Brazil in 1825.  With the support of Argentine troops and after three years of fighting, they defeated Brazilian forces.The 1828 Treaty of Montevideo brought Uruguay independence, and the new nation's first constitution was adopted in 1830.  The remainder of the 19th century under a series of elected and appointed presidents saw interventions by and conflicts with neighboring states, political and economic fluctuations, and large inflows of immigrants, including from Europe.Jose Batlle y Ordonez, President from 1903 to 1907 and again from 1911 to 1915, set the pattern for Uruguay's modern political development.  He established widespread political, social, and economic reforms, such as an extensive welfare program, government participation in many facets of the economy, and a plural executive.  Some of these reforms were continued by his successors.By 1966, economic, political, and social difficulties led to constitutional amendments, and a new constitution was adopted in 1967.  In 1973, amid increasing economic and political turmoil, the armed forces closed the Congress and established a civilian-military regime.  A new constitution drafted by the military was rejected in a November 1980 plebiscite.  Following the plebiscite, the armed forces announced a plan for return to civilian rule.  National elections were held in 1984; Colorado Party leader Julio Maria Sanguinetti won the presidency.GOVERNMENT AND POLITICAL CONDITIONSUruguay's 1967 constitution institutionalizes a strong presidency, subject to legislative and judicial checks.  The president's term is five years.  Twelve cabinet ministers, appointed by the president, head executive departments.  The constitution also provides for a bicameral General Assembly responsible for enacting laws and regulating the administration of justice.  The General Assembly consists of a 30-member Senate, presided over by the vice president of the republic, and a 99-member Chamber of Deputies.The highest court is the Supreme Court; below it are appellate and lower courts and justices of the peace.  In addition, there are electoral and administrative ("contentious") courts, an accounts court, and a military judicial system.In the 1989 presidential election, Blanco Party leader Luis Alberto Lacalle won the presidency with 31.4% of the vote.  Since taking office on March 1, 1990, President Lacalle has concentrated on economic and social reform programs.  The Lacalle administration is pursuing budget deficit reduction, foreign debt reduction, privatization of state enterprises, civil service reform, and education and labor reform.  To achieve these goals, President Lacalle has sought the legislative cooperation of the Colorado Party by appointing cabinet members from several Colorado Party factions.  He has continued the previous government's policies of reserving some directorship positions in the autonomous state entities for opposition parties.Uruguay will elect a president, all members of parliament, and all departmental governors on November 27, 1994.  The new president will assume office on March 1, 1995.National SecurityThe armed forces are constitutionally subordinate to the president through the minister of defense.  By offering early retirement incentives, the government has trimmed the armed forces to about 16,100 for the army, 4,200 for the navy, and 3,400 for the air force.  Uruguay has about 1,000 soldiers deployed in UN peace-keeping operations in Africa, the Middle East, and India-Pakistan; it has a battalion in Mozambique.Principal Government OfficialsPresident--Luis Alberto Lacalle de HerreraMinister of Foreign Affairs--Sergio Abreu BonillaAmbassador to the United States--Eduardo MacGillycuddyAmbassador to the United Nations--Ramiro PirizAmbassador to the OAS--Julio Cesar JaureguiUruguay maintains an embassy in the United States at 1919 F Street, NW, Washington, DC 20006 (tel. [phone]).  Consulates also are located in Miami, Los Angeles, and New York.ECONOMYUruguay's economy remains dependent on agriculture.  Although agricultural production accounts for 11% of the gross domestic product (GDP), it comprises more than 50% of exports.  The industrial sector, which produces 25% of GDP, is largely based on the transformation of agricultural products.  Leading industrial sectors include meat processing, leather production, textiles, leather footwear, handbags, and leather apparel.Uruguay's strategy to stimulate growth and meet its debt service obligations is based on exports.  However, a strengthening peso and weakening overseas markets for Uruguayan exports contributed to a 1993 trade deficit of $679 million.Uruguay is committed to an open financial system and maintains a free- floating exchange rate; the Lacalle administration has intervened in the exchange market to maintain a peso devaluation rate of about 2% per month. Although it has the best-educated work force in Latin America and a long tradition of social and political stability, Uruguay has endured decades-long economic stagnation.  Excessive bureaucracy, inefficient state monopolies, persistent inflation, and frequent labor unrest have led to an overall drop in real income since the 1960s and a low level of investment.The Lacalle administration has tried to carry out a program of economic liberalization similar to that of many other Latin American countries but with only partial success.  The program has included lowering tariffs, joining the Southern Cone Common  Market (MERCOSUR), eliminating deficit spending, controlling inflation--reduced from 129% in 1990 to a projected 1994 rate of 41%--and reducing the size of government.  But lack of public support, the conservative nature of the Uruguayan people, and the fragmented political system--which has stymied the government's efforts--suggest continued slow modernization.The government has failed to reform the bloated and inefficient public sector.  Privatization stalled when voters rejected sale of the telephone company, ANTEL, by 72% in a December 1992 referendum.  The government continued implementation of those parts of the 1991 state enterprise reform law not overturned in the 1992 referendum.  Port services were privatized, improving efficiency and reducing prices.  In May 1994, the state relinquished its monopoly on automobile insurance.  Other activities were transferred to the private sector either under contract, concession, or sale, including:  ground services and operation of the cargo terminal at Montevideo's Carrasco International Airport, domestic air service, construction and operation of the sewage and water supply systems for the zone east of Punta del Este, and operation of a mobile telephone system.FOREIGN RELATIONSUruguay has strong political and cultural links with the democratic countries of the Americas and Europe.  Uruguay supports constitutional democracy, political pluralism, and individual liberties.  Its international relations historically have been guided by the principles of non-intervention, respect for national sovereignty, and reliance on the rule of law to settle disputes.The government seeks export markets and financial support.  Uruguay is a member of the Rio Group, an informal group of Latin American states which deals with multilateral regional issues.  It is a party to the Inter-American Treaty of Reciprocal Assistance (Rio Treaty), General Agreement on Tariffs and Trade, and the Latin American Nuclear Free Zone.Uruguay's location between Argentina and Brazil makes close relations with these two larger neighbors particularly desirable.  The three countries have been working closely on integrating their economic systems and improving relations.  Uruguay also has been working with Brazil, Argentina, Paraguay, and Bolivia--under terms of the River Plate Basin Treaty--on an economic integration plan whose centerpiece is the development of the River Plate basin as a major shipping and commercial transportation link between the countries of the basin.U.S.-URUGUAYAN RELATIONSU.S.-Uruguayan relations traditionally have been based on a common outlook and emphasis on democratic ideals.  During the 1973-84 military regime, the United States expressed deep concern for human rights there and welcomed Uruguay's return to democracy.  Uruguay  works with the United States bilaterally and internationally to foster economic and political cooperation and to improve regional cooperation.The country supported the international coalitions in Operations Desert Shield and Desert Storm and assisted in overturning the UN resolution equating Zionism with racism.  It was an early proponent of the Enterprise for the Americas Initiative.  Uruguay also voted with the U.S. at the UN Human Rights Commission in March 1992 to name a special rapporteur on Cuba. The Lacalle administration cooperates with the United States on many fronts, such as regional efforts to reduce drug trafficking--which is increasing there--and to limit the exploitation of Uruguay's strict bank secrecy regulations for money laundering.Principal U.S. Embassy OfficialsAmbassador--Thomas J. DoddDeputy Chief of Mission--Gerald J. WhitmanPolitical Counselor--John A. RitchieEconomic Counselor--Robert A. GehringLabor Counselor--Glenda Gaye MarisConsul--Daniel D. DarrachChief, Administrative Section--Robert D. GoldbergPublic Affairs Officer (USIS)--Cynthia F. JohnsonChief, Office of Defense Cooperation--Col. William A. Jordan, USAFThe U.S. embassy in Uruguay is located at Lauro Muller 1776, Montevideo (tel: [phone] or 598-2-48-77-77; fax:  [phone]).  The mailing address for the embassy is APO Miami, Florida 34035.  (###)</text>
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        <text>U.S. Department of StateBackground Notes:  United Kingdom, November 1995Bureau of Public AffairsNovember 1995Official Name:  United Kingdom of Great Britain and Northern IrelandPROFILEGeographyArea:  244,111 sq. km. (94,251 sq. mi.); slightly smaller than Oregon.Cities:  Capital--London (metropolitan pop. about 6.9 million).  Other cities--Birmingham, Glasgow, Leeds, Sheffield, Liverpool, Bradford, Manchester, Edinburgh, Bristol, Belfast.Terrain:  30% arable, 50% meadow and pasture, 12% waste or urban, 7% forested, 1% inland water.Climate:  Generally mild and temperate; weather is subject to frequent changes but to few extremes of temperature.PeopleNationality:  Noun--Briton(s).  Adjective--British.Population:  58 million.Annual growth rate:  0.2%.Ethnic groups:  British, West Indian, South Asian.Religions:  Church of England, Roman Catholic, Presbyterian.Languages:  English, Welsh, Gaelic.Education:  Years compulsory--12. Attendance--nearly 100%.  Literacy--99%.Health:  Infant mortality--8/1,000.  Life expectancy--males 73 yrs;  females 79 yrs.Work force (1994, 28 million):  Services--72%.  Manufacturing and engineering--18%.  Mining and energy--5%.  Construction--4%.  Agriculture--1%.GovernmentType:  Constitutional monarchy.Constitution:  Unwritten; partly statutes, partly common law and practice.Branches:  Executive--monarch (chief of state), prime minister (head of government), cabinet.  Legislative--bicameral parliament:  House of Commons, House of Lords.  Judicial--magistrates' courts, county courts, high courts, appellate courts, House of Lords.Subdivisions:  Municipalities, counties, parliamentary constituencies, province of Northern Ireland, and Scottish regions.Political parties:  Conservative; Labour; Liberal Democrats; and various smaller parties including the Greens and parties of Scotland, Wales, and Northern Ireland.Suffrage:  British subjects and citizens of the Irish Republic resident in the U.K., at 18.EconomyGDP (1994):  $1 trillion.Annual growth rate (1994):  4.2%.Per capita GDP (1994):  $18,000.Natural resources:  Coal, oil, gas (North Sea).Agriculture (1.8% of GDP):  Products--cereals, livestock, livestock products, fish.Industry (33% of GDP):  Types--steel, heavy engineering and metal manufacturing, textiles, motor vehicles and aircraft, construction, electronics, chemicals.Trade (1994):  Exports--$200 billion: machinery and transport equipment, petroleum, manufactures, chemicals. Major markets--EU, U.S., Sweden, Saudi Arabia, Nigeria, Switzerland, South Africa.  Imports--$215 billion: machinery and transport equipment, manufactures, foodstuffs, petroleum, chemicals.  Major suppliers--EU, U.S., Japan, Norway, Sweden, Switzerland.U.S.-U.K. RELATIONSThe United Kingdom is one of the United States' closest allies, and British foreign policy emphasizes close coordination with the United States.  Bilateral cooperation reflects the common language, ideals, and democratic practices of the two nations.  The relations were strengthened by the U.K.'s alliance with the United States during both World Wars, the Korean conflict, and the Persian Gulf war.  The United Kingdom and the United States continually consult on foreign policy issues and global problems and share major foreign and security policy objectives.  In the United Nations, the U.K. is a permanent member of the Security Council.  As of May 1995, some 3,500 British soldiers were serving with UNPROFOR in Bosnia; additional reinforcements were sent in June.The U.K. has historic global ties, but as its global commitments have been reduced since World War II, it has sought a closer association with Europe.  A key member of the North Atlantic Treaty Organization (NATO), the U.K. is one of its major European maritime powers.  The U.K. ranks fourth among NATO countries in total defense expenditure.The 56,000-member Royal Navy is in charge of NATO's independent strategic nuclear arm--Polaris missile submarines now being replaced by Trident II.  Defense of U.S. reinforcement and resupply of Europe is one of the Royal Navy's major tasks.  In addition, the 7,600-member Royal Marines provide commando units for amphibious assault and for specialist reinforcement forces in and beyond the NATO area.  The army, with a strength of 123,500, including 7,600 women, provides for the ground defense of the United Kingdom through its participation in NATO.Trade and InvestmentThe United Kingdom is one of the largest European economies and one of the world's major trading powers.  London ranks with New York as a leading international financial center.After Canada, Japan, and Mexico, the United Kingdom is the fourth-largest U.S. export market. In 1994, it purchased American goods valued at $26.8 billion and accounted for about 25% of all U.S. trade with the European Union.  The U.K. is also the largest source of foreign tourists to the United States; an estimated 3 million British tourists visited the U.S. in 1994--and 3.1 million are expected for 1995--accounting for more than $8 billion in travel receipts.The U.K. is America's most important investment partner.  For 1993, two-way direct investment was more than $190 billion.  The U.K. was America's largest destination for investment abroad; valued at $96 billion, U.S. investment accounted for 18% of total investment in the U.K.  In addition, 21% of foreign direct investment in the U.S. came from the U.K., which at $95 billion was second only to Japan.British industry is a mixture of publicly and privately owned firms.  Several important industries are publicly owned, including  steel, railroads, coal mining, shipbuilding, and certain utilities.  Since 1979, the British Government has privatized most large state-owned companies, including British Steel, British Airways, British Telecom, British Coal, British Aerospace, and British Gas.The United Kingdom is an energy-rich nation with significant reserves of oil and gas in the North Sea and large coal resources.  Energy production accounts for almost 5% of GDP.  North Sea oil production, currently over 2.4 million b/d, is on an upward trend expected to continue into 1996.  U.K. offshore areas should be an important source of continued production and new discoveries for some years.  U.S. oil and oil-service companies participate actively in the North Sea oil industry and consider the United Kingdom an attractive environment for future investment.Principal U.S. Embassy OfficialsAmbassador--William J. Crowe Jr.Minister (Deputy Chief of Mission)--Timothy E. DealMinister for Economic Affairs--Thomas H. GeweckeMinister-Counselor for Political Affairs--Michael HabibMinister-Counselor for Commercial Affairs--Kenneth MoorefieldThe U.S. embassy in the United Kingdom is located at 24/31 Grosvenor Sq., W.1A 1AE, London (tel. [44] [phone]; fax [44] [phone]).GOVERNMENTThe United Kingdom does not have a written constitution.  The equivalent body of law is based on statute, common law, and "traditional rights."  Changes may come about formally through new acts of parliament, informally through the acceptance of new practices and usage, or by judicial precedents.  Although parliament has the theoretical power to make or repeal any law, in actual practice the weight of 700 years of tradition restrains arbitrary actions.Executive government rests nominally with the monarch but actually is exercised by a committee of ministers (cabinet) traditionally selected from among the members of the House of Commons and, to a lesser extent, the House of Lords. The prime minister is the leader of the majority party in the Commons, and the government is dependent on its support.Parliament represents the entire country and can legislate for the whole or for any constituent part or combination of parts.  The maximum parliamentary term is five years, but the prime minister may ask the monarch to dissolve parliament and call a general election at any time.  The focus of legislative power is the 650-member House of Commons, which has sole jurisdiction over finance.  The House of Lords, although shorn of most of its powers, can still review, amend, or delay temporarily any bills except those relating to the budget.  Only a few of the 1,200 members of the House of Lords attend its sessions regularly.  The House of Lords has more time than the House of Commons to pursue one of its more important functions--debating public issues.The judiciary is independent of the legislative and executive branches but cannot review the constitutionality of legislation.The separate identity of each of the U.K.'s constituent parts also is reflected in governmental structure.  Welsh affairs are handled at the national level by a cabinet minister (the Secretary of State for Wales) with the advice of a broadly representative council for Wales.  Scotland continues, as before its union with England, to employ different systems of law (Roman-French), education, local government, judiciary, and national church (the Presbyterian Church of Scotland instead of the Church of England).  In addition, most domestic matters are handled by separate departments grouped under a Secretary of State for Scotland, who also is a cabinet member.Until suspended in March 1972, Northern Ireland--with the British Government retaining ultimate responsibility--had its own parliament and prime minister.  Then, in response to deteriorating security and political conditions in the province, direct rule from London was established through a Secretary of State for Northern Ireland.  Northern Ireland is represented by 17 members in the House of Commons.  The six counties of Northern Ireland comprise about 900,000 Protestants and 650,000 Catholics.On November 15, 1985, the United Kingdom and the Republic of Ireland signed the Anglo-Irish agreement to diminish the divisions in Northern Ireland and to achieve peace and stability.  In the agreement, both governments affirm that any change in Northern Ireland's status will come about only with the consent of a majority of its people.  An intergovernmental conference was established to deal with political, security, legal, and cross-border cooperation issues and provides for possible future devolution of responsibility for some matters within Northern Ireland.In December 1993, the U.K. and Irish Governments adopted a joint declaration reiterating both governments' commitment that there would be no change in Northern Ireland's constitutional status unless a majority of the voters in the province so desired.  All constitutional parties were invited to take part in a negotiation aimed at achieving a political solution to the conflict in the province.  The U.K. and Irish Governments also cooperate in promoting economic and social development in the unstable areas and are seeking international support for this effort.In February 1995, U.K. Prime Minister Major and Irish Prime Minister Burton announced a Joint Framework Document (JFD) outlining their governments' shared proposals for inclusive talks on Northern Ireland.  The JFD lays the foundation for "all-party talks" among the political parties of Northern Ireland and the U.K. and Irish Governments.  At the same time, the U.K. Government separately announced a Framework for Accountable Government--proposals for a new, devolved local assembly in Northern Ireland.  These proposals are intended to form the basis for negotiations between the U.K. Government and Northern Ireland's political parties.As of 1994, the United States has given or pledged contributions totaling $248 mil-lion to the International Fund for Ireland. The Fund provides grants and loans to businesses to improve the economy, redress inequalities of employment opportunity, and improve cross-border business and commercial ties.Principal Government OfficialsHead of State--Queen Elizabeth IIPrime Minister--John MajorSecretary of State for Foreign and Commonwealth Affairs--Malcolm RifkindAmbassador to the U.S.--Sir John KerrAmbassador to the UN--Sir John WestonThe United Kingdom maintains an embassy in the United States at 3100 Massachusetts Ave. NW, Washington, DC 20008 (tel. [phone]; fax [phone]).POLITICAL CONDITIONSPrime Minister John Major's government was elected in April 1992 in a surprise win over the opposition Labour Party.  The Conservatives (Tories) have now won four straight general elections since 1979.  Although the Conservatives' share of the popular vote stayed steady at about 42% in 1992, their number of seats in the House of Commons fell from 375 to 336.  Deaths of several parliamentarians since 1992  and losses in by-elections have reduced the Tory majority over other parties in parliament to less than 10 today compared to 100 in 1987.  The official opposition, the left-of-center Labour Party, is up from 228 to 272.  The remaining seats are divided among the centrist Liberal Democrats (23), the Northern Ireland parties (17), the Scottish Nationalists (4), and the Welsh Nationalists (4).  The current Conservative Government is seeking to build on the 1980s legacy of former Prime Minister Margaret Thatcher, who led a drive to curb the power of unions, privatize nationally owned industries, and reform local government, education, and the National Health Service.Although Britain, like the United States, is emerging from its deepest recession since World War II, the Tories are being hit by scandal, internal divisions over Europe, and significant losses in the May 1995 local elections.  The Labour Party underwent its own transformation in the 1980s and early 1990s, abandoning unilateral nuclear disarmament and nationalization, and developing more moderate policies on social and economic issues.  The party is now leading in opinion polls for general elections due no later than 1997.Both main British parties support a strong transatlantic link but have become increasingly absorbed by European issues as Britain's economic and political ties to the continent grow in the post-Cold War world.  June 1994 European Union-wide elections for the European Parliament in Strasbourg saw huge gains by the Labour and Liberal Democrat parties at the expense of the Conservatives.TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, tel. [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.==============================Background Notes Series --  Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DCThis material is in the public domain and may be reproduced without permission; citation of this source is appreciated.(###)</text>
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        <text>US DEPARTMENT OF STATE BACKGROUND NOTES:  UNITED ARAB EMIRATESJuly 1991Official Name:  United Arab EmiratesPROFILEPeopleNationality: Noun and adjective--UAE, Emirian, or Emiri.Population (1990 est.): 1.8 million.  Annual growth rate: 2.8%.Ethnic groups: Arab, Pakistani, Indian, Iranian, Filipino  (15-20%of residents are UAE citizens).  Religions: Muslim (90%), Hindu,Christian.  Languages: Arabic (official), English, Hindi, Urdu,Persian.  Education: Years compulsory--ages 6-12.  Literacy (UAEcitizens)--about 60%. Life expectancy: About 63 yrs.  Work force(1990) 650,000 (90% foreign): Agriculture--6%.  Industry andcommerce--65%.  Services--16%.  Government--13%.GeographyArea: 82,880 sq. km. (30,000 sq. mi.); about the size of Maine.Cities (1990 est.): Capital--Abu Dhabi (pop. over 500,000); Dubai(pop. over 400,000).  Terrain: Largely desert with someagricultural areas.  Climate: Hot, humid, low annual rainfall.GovernmentType: Federation of emirates.  Independence: December 2, 1971.Provisional constitution: December 2, 1971.Branches: Executive--7-member Supreme Council of Rulers, whichelects president and vice president.  Legislative--40-memberFederal National Council (consultative only).  Judicial--Islamicand secular courts.Administrative subdivisions: Seven largely self-governingcity-states.Political parties: None.  Suffrage: None.Central government budget (1990): $4.3 billion.Flag: A vertical red stripe on the staff side and three horizontalstripes--green, white, and black from top to bottom--on the right.EconomyGDP (1990): $34 billion.  Annual growth rate (23%).  Per capita GDP(1990): $21,335.  Inflation rate (1990 est.): 10%.Natural resource: Oil.Agriculture (1.5% of 1990 GDP): Products--vegetables, dates, dairyproducts, poultry.Petroleum: (46% of 1990 GDP.)Other industry: (7.5% of 1990 GDP).Services: (45% of 1990 GDP): Trade, government, real estate.Trade (1990 est.): Exports--$21 billion: petroleum, gas, andpetroleum products.  Major markets--EC, Japan, US (4%).Imports--$12 billion: machinery, consumer goods, food.  Majorsuppliers--Western Europe, Japan, US (8%).Official exchange rate: US$1=3.67 dirhams.Foreign economic aid (1973 through 1989): In excess of $15 billion.Membership in International OrganizationsUN and several of its specialized agencies (ICAO, ILO, UPU, WHO,WIPO), World Bank, IMF, Arab League, Organization of the IslamicConference, Organization of Petroleum Exporting Countries,Organization of Arab Petroleum Exporting Countries, Non-AlignedMovement.PEOPLE     Only 15-20% of the total population of 1.8 million are UAEcitizens.  The rest include significant numbers of otherArabs--Palestinians, Egyptians, Jordanians, Yemenis, Omanis--aswell as many Iranians, Pakistanis, Indians, Filipinos, and WestEuropeans.     The majority of UAE citizens are Sunni Muslims with a smallShia minority.  Most foreigners also are Muslim, although Hindusand Christians make up a portion of the UAE's foreign population.     Educational standards among UAE citizens population are risingrapidly.  Citizens and temporary residents have taken advantage offacilities throughout the country.  The UAE University in Al Ainhad roughly 10,000 students in 1990.  A network oftechnical-vocational colleges opened in 1989.HISTORY     The UAE was formed from the group of tribally-organizedArabian Peninsula shaikhdoms along the southern coast of thePersian Gulf and the northwestern coast of the Gulf of Oman.  Thisarea was converted to Islam in the 7th century; for centuries itwas embroiled in dynastic disputes.  It became known as the PirateCoast as raiders based there harassed foreign shipping, althoughboth European and Arab navies patrolled the area from the 17thcentury into the 19th century.  Early British expeditions toprotect the India trade from raiders at Ras al-Khaimah led tocampaigns against that headquarters and other harbors along thecoast in 1819.  The next year, a general peace treaty was signed towhich all the principal shaikhs of the coast adhered.  Raidscontinued intermittently until 1835, when the shaikhs agreed not toengage in hostilities at sea.  In 1853, they signed a treaty withthe United Kingdom, under which the shaikhs (the "TrucialShaikhdoms") agreed to a "perpetual maritime truce."  It wasenforced by the United Kingdom, and disputes among shaikhs werereferred to the British for settlement.     Primarily in reaction to the ambitions of other Europeancountries, the United Kingdom and the Trucial Shaikhdomsestablished closer bonds in an 1892 treaty, similar to treatiesentered into by the UK with other Gulf principalities.  The shaikhsagreed not to dispose of any territory except to the United Kingdomand not to enter into relationships with any foreign governmentother than the United Kingdom without its consent.  In return, theBritish promised to protect the Trucial Coast from all aggressionby sea and to help out in case of land attack.     In 1955, the United Kingdom sided with Abu Dhabi in thelatter's dispute with Saudi Arabia over the Buraimi Oasis and otherterritory to the south.  A 1974 agreement between Abu Dhabi andSaudi Arabia would have settled the Abu Dhabi-Saudi border dispute;however, the agreement has yet to be ratified by the UAE Governmentand apparently is not recognized by the Saudi Government.  Theborder with Oman also remains unsettled.     In 1968, the UK announced its decision, reaffirmed in March1971, to end the treaty relationships with the seven TrucialShaikhdoms which had been, together with Bahrain and Qatar, underBritish protection.  The nine attempted to form a union of Arabemirates, but by mid-1971 they were unable to agree on terms ofunion, even though the termination date of the British treatyrelationship was the end of 1971.  Bahrain became independent inAugust and Qatar in September 1971.  When the British-TrucialShaikhdoms treaty expired on December 1, 1971, they became fullyindependent.  On December 2, 1971, six of them entered into a unioncalled the United Arab Emirates.  The seventh, Ras al-Khaimah,joined in early 1972.GOVERNMENT     Administratively, the UAE is a loose federation of sevenemirates, each with its own ruler.  The pace at which localgovernment in each emirate evolves from traditional to modern isset primarily by the ruler.  Under the provisional constitution of1971, each emirate reserves considerable powers, including controlover mineral rights (notably oil) and revenues.  In this milieu,federal powers have developed slowly.  In October 1986, theprovisional constitution was extended for another 5 years andprobably will be extended for another 5 years in December 1991.     The constitution established the positions of president (chiefof state) and vice president, each serving 5-year terms; a Councilof Ministers (cabinet), led by a prime minister (head ofgovernment); a supreme council of rulers; and a 40-member NationalAssembly, a consultative body whose members are appointed by theemirate rulers.  President Shaikh Zayyed bin Sultan Al Nahyyan hasbeen president of the UAE since it was founded.  His current 5-yearterm ends in December 1991, but it seems likely he will be electedto another 5-year term.Principal Government OfficialsSupreme CouncilPresident, Ruler of Abu Dhabi--Shaikh Zayyed bin Sultan Al NahayyanVice President and Prime Minister, Ruler of Dubai--Shaikh Maktoumbin Rashid Al MaktumRuler of Sharjah--Shaikh Sultan bin Muhammad al-QasimiRuler of Ajman--Shaikh Humaid bin Rashid al-NuaimiRuler of Umm al-Qaiwain--Shaikh Rashid bin Ahmad al-MuallaRuler of Ras al-Khaimah-- Shaikh Saqr bin Muhammad al-QasimiRuler of Fujairah-- Shaikh Hamad bin Muhammad al-SharqiMinister of State for Foreign Affairs--Hamdan bin Zayed al NahyanAmbassador to the United States--Sheikh Abdallah bin Zayyed binSaqr al NahyanAmbassador to the United Nations--Mohammad bin Husayn al-Sha'ali     The UAE maintains an embassy in the United States at 600 NewHampshire Avenue NW, Suite 740, Washington, DC 20037 (tel.[phone]).  The UAE Mission to the UN is located at 747 3dAvenue, 36th Floor, New York, NY 10017 (tel. [phone]).POLITICAL CONDITIONS     The relative political and financial influence of each emirateis reflected in the allocation of positions in the federalgovernment.  The ruler of Abu Dhabi, whose emirate is the UAE'smajor oil producer, is president of the UAE.  The ruler of Dubai,which is the UAE's commercial center and a significant oilproducer, is vice president and prime minister.     Since achieving independence in 1971, the UAE has worked tostrengthen its federal institutions.  Nonetheless, each emiratestill retains substantial autonomy, and progress toward greaterfederal integration has slowed in recent years.  A basic concept inthe UAE Government's development as a federal system is that asignificant percentage of each emirate's revenues should be devotedto the UAE central budget.     The UAE has no political parties.  There is talk of stepstoward democratic government, but nothing concrete has emerged.The rulers hold power on the basis of their dynastic position andtheir legitimacy in a system of tribal consensus.  Rapidmodernization, enormous strides in education, and the influx of alarge foreign population have changed the face of the society buthave not fundamentally altered this traditional political system.DEFENSE     The Trucial Oman Scouts, long the symbol of public order onthe coast and commanded by British officers, were turned over tothe UAE as its defense forces in 1971.  The UAE Armed Forces,consisting of 60,000 troops, are headquartered in Abu Dhabi and areprimarily responsible for the defense of six of the seven emirates.Dubai's central military command (12,000 troops) has primaryresponsibility for Dubai's defense.     The UAE military relies heavily on troop force from other Arabcountries and Pakistan.  The officer corps, however, is composedalmost exclusively of UAE nationals.     The UAE air force has about 1,800 personnel.  Equipmentincludes French Mirage 3s and 5s and newly purchased Mirage 2000s,British Hawk aircraft, and French helicopters.  The newlyrevitalized air defense has a Hawk missile program for which the USis providing training.  The UAE has taken delivery of two of fiveTriad I-Hawk batteries.  The UAE navy is small--about 1,000personnel--and maintains 12 well-equipped coastal patrol boats.     The UAE contributes a few hundred troops to the GulfCooperation Council's "Peninsula Shield" force, headquartered inSaudi Arabia.  These forces participated in the recent Gulf war.ECONOMY     Prior to the first exports of oil in 1962, the UAE economy wasdominated by pearl production, fishing, agriculture, and herding.Since the rise of oil prices in 1973, however, petroleum hasdominated the economy, accounting for most of its export earningsand providing significant opportunities for investment.  The UAEhas huge proven oil reserves, estimated at over 100 billion barrelsin 1990, with gas reserves estimated at over 200 trillion cubicfeet; at present production rates, these supplies would last wellover 100 years.     In 1990, the UAE produced about 2 million barrels of oil perday--of which Abu Dhabi produced approximately 80%--with Dubai, andSharjah to a much lesser extent, producing the rest.  The UAE's oilproduction rose significantly in the latter half of 1990 after theoutbreak of the Gulf war.  The UAE is embarking on a majorexpansion of production capacity during the next 5 years.     In 1990, GDP increased substantially as a result of soaringoil revenues, but many companies in the non-oil sector were hithard by a general slowdown in business during the period leading upto the Gulf war.  The oil sector remains the chief determinant ofgrowth in the UAE economy by virtue of its major contribution tothe GDP.  The preliminary estimate  of 1990 GDP is $34 billion, up23% from 1989.     The US has sizable trade with the UAE.  In 1990, the US shareof the UAE's imports was estimated at 8%.  About 4% of the UAE'sexports, mainly oil, went to the US.  The UAE's major tradepartners are Japan, the EEC, and the US.     The increase in the favorable overall balance of trade in1990--from $5.4 billion in 1989 to $9.5 billion in 1990--was due toboosts in the value of oil and gas exports.  The country's importsrose by about 16% from $10 billion in 1989 to $12 billion in 1990,while exports were up by 36% from $15.5 billion in 1989 to $21billion in 1990.  However, the UAE's balance of payments wasactually negative for the first time, registering a 300 millionloss.  This was due to the significant cash outflows from the UAE'smilitary contributions to the liberation of Kuwait, aid tocountries affected by the Gulf crisis, and huge capital transfersby individuals and companies during 1990 because of the crisis.     Major increases in imports occurred in manufactured goods,machinery, and transportation equipment, which together accountedfor 70% of total imports.  Another important foreign exchangeearner, the Abu Dhabi investment authority--which controls theinvestments of Abu Dhabi, the wealthiest emirate--manages anestimated $60 billion in overseas investments.     The depreciation of the dollar caused a considerable increasein the cost of imports from Europe and Asia, especially in thelatter half of 1990.  There is now a trend toward reducing thecountry's huge expatriate population, which represents about 90% ofthe total UAE work force of 650,000.  From now on, imports of newlabor will depend on the specific requirements of a new project.     Over 200 factories operate at the Jebel Ali complex in Dubai,which includes a deep water port and a free-trade zone formanufacturing and distribution in which all goods for re-export ortransshipment enjoy a 100% duty exemption.  A major power plantwith associated water desalination units, an aluminum smelter, anda steel fabrication unit are prominent facilities in the complex.     Except in the free trade zone, the UAE requires at least 51%local citizen ownership in all businesses operating in the  countryas part of its attempt to place Emiris into leadership positions.     As a member of the Gulf Cooperation Council (GCC), the UAEparticipates in the wide range of GCC activities that focus oneconomic issues.  These include regular consultations anddevelopment of common policies covering trade, investment, bankingand finance, transportation, telecommunications, and othertechnical areas, including protection of intellectual propertyrights.  The post-Gulf war period should see increased efforts toaccelerate economic integration by the UAE and other GCC countries.FOREIGN RELATIONS     The UAE joined the United Nations and the Arab League and hasestablished diplomatic relations with more than 60 countries,including the US, Japan, the Soviet Union, the People's Republic ofChina, and most Western European countries.  It has played amoderate role in the Organization of Petroleum Exporting Countries,the Organization of Arab Petroleum Exporting Countries, the UnitedNations, and the GCC.     Substantial development assistance has increased the UAE'sstature among recipient states.  Most of this foreign aid (inexcess of $15 billion) has been to Arab and Muslim countries.     Following Iraq's 1990 invasion and attempted annexation ofKuwait, the UAE has sought to rely on the GCC, Syria, Egypt, theUS, and other Western allies for its security.  The UAE believesthat the Arab League needs to be restructured to become a viableinstitution.US-UAE RELATIONS     The United States has enjoyed friendly relations with the UAEsince 1971.  Private commercial ties, especially in petroleum, havedeveloped into friendly government-to-government ties which includesecurity assistance.  The breadth, depth, and quality of US-UAErelations are increasing dramatically as a result of the US-ledcoalition's campaign to end the Iraqi occupation of Kuwait.  TheUnited States was the third country to establish formal diplomaticrelations with the UAE and has had an ambassador resident in theUAE since 1974.Principal US OfficialsAmbassador--Edward S. Walker, Jr.Deputy Chief of Mission--Brian J. MohlerPolitical Officer--Juliana Seymour PeckEconomic Officer--William T. Fleming, Jr.Consular Officer--Charles E. RobertsonPublic Affairs Officer--Sami G. HajjarCommercial Officer--B. Paul Sogna     Mailing Address--PO Box 4009, Abu Dhabi; tel: 336691, USIS:336567, Commercial Office: 345545; fax: 318441, Chancery: 213771,US Labor Office: 391604, Commercial Office: 331374.     Consul General in Dubai--Joseph Le Barron; PO Box 9343; tel:[phone]; fax: 379043, Commercial Office:  375121).Travel Notes     Customs: A visa is required for entry.  Business or visitorvisas can be arranged with only a few days' notice through localsponsors or major hotels.  Hotels levy a varying surcharge for thisservice.  No immunizations are required.  Health requirementschange; check latest information.     Health: No unusual precautions in food and drink arenecessary.  Water is potable.  For travel to some areas, malariasuppressant is advisable.  Many Western-trained doctors practice inthe UAE.</text>
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        <text>US DEPARTMENT OF STATE, BUREAU OF PUBLIC AFFAIRSBACKGROUND NOTES:  UGANDAOfficial Name:  Republic of UgandaPROFILEGeographyArea: 235,885 sq. km. (94,354 sq. mi.); about the size of Oregon.Cities: Capital-Kampala (pop. 331,900).  Other cities-Jinja, Mbale,Mbarara.  Terrain: 18% inland water and swamp; 12% national parks,forest, and game reserves; 70% forest, woodland, grassland.Climate: In the northeast, semi-arid-rainfall less than 50 cm. (20 in.);in southwest, rainfall 130 cm. (50 in.) or more. Two dryseasons-Dec.-Feb. and June-July.PeopleNationality: Noun and adjective-Ugandan(s).  Population (1989): 17million. Annual growth rate (1989):  3.4%. Ethnic groups: African(99%), European, Asian, Arab (1%).  Religions: Christian (majority),Muslim, traditional. Languages: English (official); Luganda andSwahili widely used; other Bantu and Nilotic languages.  Education:Attendance (1989, primary school enrollment)-60%.  Literacy(1989)-52%. Health: Infant mortality rate-99/1,000. Life expectancy-50yrs.GovernmentType: Transitional military government. Constitution: 1967(suspended 1985). Independence: October 9, 1962.Branches: Executive-president, prime minister, cabinet.Legislative-National Resistance Council (parliament).Judiciary-magistrates courts, appeals court, High Court.Administrative subdivisions: 10 provinces, 34 districts.  Politicalparties: Uganda People's Congress (UPC), Democratic Party (DP),(political activity is suspended). Suffrage: Universal adult.  Nationalholiday: Independence Day, Oct. 9.Flag: Six horizontal stripes-black, yellow, red, black, yellow, red-withthe national emblem, the crested crane, in a centered white circle.EconomyGDP (1989): $3.6 billion.  Inflation rate (1989): Approx. 60%.  Naturalresources: Copper, cobalt, limestone.  Agriculture: Products-coffee,cotton, tea, bananas, tobacco, sugarcane, corn, cassava.Industry: Types-processing of agricultural products (cotton ginning,coffee curing), cement production, light consumer goods, textiles.Trade (1989): Exports-$282 million: coffee, cotton, tea.  Majormarket-EC. Imports (1989)-$563 million: petroleum products,machinery, cotton textiles, metals, transportation equipment. Majorsuppliers-OPEC countries, EC.Official exchange rate (1990):  540 Ugandan shillings=US $1.  Fiscalyear:  July 1-June 30.Membership in International OrganizationsUN and some of its specialized and related agencies, Organizationof African Unity (OAU), Group of 77, Commonwealth, Non-alignedMovement, Organization of the Islamic Conference (OIC), INTELSAT.PEOPLE AND HISTORYAfricans of three main  ethnic groups-Bantu, Nilotic, andNilo-Hamitic-constitute most of the population. The Bantu  are themost numerous  and include the Baganda, which, with  more than1 million members, constitute the largest single ethnic group.The Nilo-Hamitic Iteso is the second largest group, followed by theBanyankole and Basoga, both of Bantu extraction. Uganda'spopulation is predominantly rural, and its density is highest in thesouthern regions.Until 1972, Asians constituted the largest non-indigenous ethnicgroup in Uganda. In that year, the Idi Amin regime expelled 50,000Asians, who had been engaged in trade, industry, and variousprofessions.  In the years since Amin's overthrow in 1979, Asianshave slowly returned. About 3,000 Arabs of various national originsand small numbers of Asians live in Uganda. Other non-indigenouspeople in Uganda include several hundred Western missionaries anda few diplomats and business people.When Arab traders moved inland from their enclaves along the IndianOcean coast of East Africa and reached the interior of Uganda in the1830s, they found several African kingdoms with well-developedpolitical institutions dating back several centuries.  These traderswere followed in the 1860s by British explorers searching for thesource of the Nile River.  Protestant missionaries entered the countryin 1877,  followed by Catholic missionaries in 1879.In 1888, control of the emerging British "sphere of interest" in EastAfrica was assigned by royal charter to the Imperial British EastAfrica Company, an arrangement strengthened in 1890 by anAnglo-German agreement confirming British dominance over Kenyaand Uganda.  The high cost of occupying the territory caused thecompany to withdraw in 1893, and its administrative functions weretaken over by a British commissioner.  In 1894, the Kingdom ofBuganda was placed under a formal British protectorate.The British protectorate period began to change formally in 1955,when constitutional changes leading to Uganda's independence wereadopted.The first general elections in Uganda were held in 1961, and theBritish government granted internal self-government to Uganda onMarch 1, 1962, with Benedicto Kiwanuka as the first prime minister.Uganda maintained its Commonwealth membership.In succeeding years, supporters of a centralized state vied with thosein favor of a loose federation and a strong role for tribally based localkingdoms. Political maneuvering climaxed in February 1966, whenPrime Minister Milton Obote suspended the constitution, assumed allgovernment powers, and removed the president and vice president.In September 1967, a new constitution proclaimed Uganda arepublic, gave the president even greater powers, and abolished thetraditional kingdoms.  On January 25, 1971, Obote's governmentwas ousted in a military coup led by armed forces commander IdiAmin Dada. Amin declared himself president, dissolved theparliament, and amended the constitution to give himself absolutepower.Idi Amin's 8-year rule produced economic decline, socialdisintegration, and massive human rights violations. The Acholi andLangi tribes were particular objects of Amin's political persecutionbecause Obote and many of his supporters belonged to those tribes.In 1978, the International Commission of Jurists estimated that morethan 100,000 Ugandans had been murdered during Amin's reign ofterror; some authorities place the figure much higher.In October 1978, Tanzanian armed forces repulsed an incursion ofAmin's troops into Tanzanian territory.  The Tanzanian force, backedby Ugandan exiles, waged a war of liberation against Amin's troopsand Libyan soldiers sent to help him.  On April 11, 1979, Kampalawas captured, and Amin fled with his remaining forces.After Amin's removal, the Uganda National Liberation Front (UNLF)formed an interim government with Yusuf Lule as president.  Thisgovernment adopted a ministerial system of administration andcreated a quasi-parliamentary organ known as the NationalConsultative Commission (NCC).  The NCC and the Lule cabinetreflected widely differing political views. In June 1979, following adispute over the extent of presidential powers, the NCC replacedPresident Lule with Godfrey Binaisa. In a continuing dispute over thepowers of the interim presidency, Binaisa was removed in May 1980.Thereafter, Uganda was ruled by a military commission chaired byPaulo Muwanga. The December 1980 elections returned the UPC topower under the leadership of President Obote, with Muwangaserving as vice president.  Under Obote, the security forces had oneof the world's worst human rights records.  In their efforts to stampout an insurgency led by Yoweri Museveni's National ResistanceArmy (NRA), they lay waste to a substantial section of the country,especially in the Luwero area north of Kampala.Obote ruled until July 27, 1985, when an army brigade, composedmostly of Acholi troops and commanded by Lt. Gen. BasilioOlara-Okello, took Kampala and proclaimed a military government.Obote fled to exile in Zambia.  The new regime,  headed by formerdefense force commander Gen. Tito Okello (no relation to Lt. Gen.Olara-Okello), opened negotiations with the insurgent forces ofYoweri Museveni, and pledged to improve respect for human rights,end tribal rivalry, and conduct free and fair elections.  In themeantime, massive human rights violations continued as the Okellogovernment murdered civilians and ravaged the countryside in orderto destroy the NRA's support.Negotiations between the Okello government and the NRA wereconducted in Nairobi in the fall of 1985, with Kenyan President DanielMoi seeking a cease-fire and a coalition government in Uganda.Although agreeing in late 1985 to a cease-fire, the NRA continuedfighting, seized Kampala in late January 1986, and assumed controlof the country, forcing Okello to flee north into Sudan.  Museveni'sforces organized a government with Museveni as president.Since assuming power, the NRA-led government has largely put anend to the human rights abuses of earlier governments, establisheda human rights commission to investigate previous abuses, andinstituted broad economic reforms after consultation with theInternational Monetary Fund (IMF), World Bank, and donorgovernments.  A constitutional commission was named to draft anew constitution.  Insurgent elements and armed bandits  in thenorth and east harass government forces and create a sense ofinsecurity, but they do not threaten the stability of the regime.GOVERNMENTThe Ugandan government is a transitional one which initially pledgedto rule for 4 years.  Citing continued security difficulties that frustratedachievement of political peace and sustained  economic recovery,the mandate was unilaterally extended for 5 additional years inOctober 1989.  The executive consists of officials representing widelydiverse political outlooks.  Yoweri Museveni is president and ministerof defense, and Samson Kisekka is prime minister.  In 1990,President Museveni was elected chairman of the Organization ofAfrican Unity (OAU).  Symbolically, it signaled  Uganda's reentry intothe world community.Legislative responsibility is vested in the 270-person NationalResistance Council (parliament), most of whose members wereelected in February 1989.  The Ugandan judiciary operates as anindependent branch of government and consists of magistratescourts, the High Court, and the High Court for Appeals. Politicalparties may not conduct public political activities.Principal Government OfficialsPresident, Minister of Defense, and Chairman of the NationalResistance Council-Yoweri Kaguta MuseveniVice President-Dr. Samson B.M. KisekkaPrime Minister-George AdyeboForeign Minister-Paul SsemogerereAmbassador to the United States-Stephen Katenta-ApuliUganda maintains an embassy in the United States at 5909 16thStreet NW, Washington, DC 20011 (tel. [phone]).ECONOMYUganda's economy has great potential.  Endowed with significantnatural resources, including amply fertile land, regular rainfall, andmineral deposits, it appeared poised for rapid economic growth anddevelopment at independence.  Yet, chronic political instability anderratic economic management produced a record of persistenteconomic decline that has left Uganda among the world's poorestand least-developed countries.After the turmoil of the Amin era, the country began a program ofeconomic recovery in 1981 that received considerable foreignassistance.  From mid-1984 on, however, overly expansionist fiscaland monetary policies and the renewed outbreak of civil strife led toa setback in economic performance.Since assuming power in early 1986, the government of PresidentMuseveni has taken important first steps toward economicrehabilitation.  Much of the country's infrastructure-notably itstransportation and communications systems which were destroyedby war and neglect -must be rebuilt.  Progress to date has beenlimited but encouraging.  Recognizing the need for increased externalsupport, Uganda negotiated  a policy framework paper with the IMFand the World Bank in 1987. It subsequently began implementingeconomic policies designed to restore price stability and sustainablebalance of payments; improve capacity utilization; rehabilitateinfrastructure; restore producer incentives through proper pricepolicies; and improve resource mobilization and allocation in thepublic sector. By 1990, these policies were beginning to produceresults.  Inflation  dropped from 300% in 1987 to less than 30% in1990;  some prices stabilized, production increased, and consumergoods were more widely available.  The Ugandan government alsohas worked with Western countries to reschedule or cancel thecountry's debts.Agricultural products supply nearly all of Uganda's foreign exchangeearnings, with coffee alone accounting for over 90% of the country'sexports.  However, with world coffee prices dropping, other exportsare becoming more important.  Exports of hides, skins, vegetables,fruits, and fish are growing, and cotton, tea, and tobacco continueto be mainstays.Most industry is related to agriculture.  The industrial sector is beingrehabilitated to resume production of building and constructionmaterials, such as cement, reinforcing rods, corrugated roofingsheets, and paint.  Domestically produced consumer goods includeplastics, soap, beer, and soft drinks.Uganda has about 32,000 kilometers (20,000 mi.) of roads; some6,400 kilometers (4,000 mi.) are paved.  Most radiate from Kampala.The country has about 1,300 kilometers (800 mi.) of rail lines.  Arailroad originating at Mombasa on the Indian Ocean connects withTororo, where it branches westward to Jinja, Kampala, and Kaseseand northward to Mbale, Soroti, Lira, Gulu, and Kapwach.  Uganda'simportant road and rail links to Mombasa serve its transport needsand also those of its neighbors-Rwanda, Burundi, and parts of Zaireand Sudan.  An international airport is at Entebbe on the shore ofLake Victoria, some 32 kilometers (20 mi.) south of Kampala.FOREIGN RELATIONSUganda is a UN member and a founding member of theOrganization of African Unity.  It also belongs to the Non-alignedMovement, the Group of 77, and the Organization of the IslamicConference.  In its multilateral diplomacy, Uganda presses for theend of all discrimination and the establishment of a multiracialdemocracy in South Africa.The Museveni government seeks good relations with all nations andwelcomes contacts without reference to ideological orientation.Relations with Kenya, however, have been  strained periodicallybecause of trade problems and charges that exiled politicaldissidents are not curtailed in Kenya.  Neighbors also are concernedabout Uganda's relationship with Libya, which has supplied militaryequipment and bartered fuel to Uganda.  In addition to its ties toWestern nations, Uganda has sought to maintain friendly ties withNorth Korea, the Soviet Union, and other former Eastern bloccountries, as well as with Cuba.DEFENSEThe National Resistance Army (NRA) constitutes the armed forces ofUganda.    Since 1986, its cohesiveness has been diluted byincorporating new recruits with no field experience, and members ofother political groups.  Uganda received military supplies and trainingfrom North Korea, Libya, and the Soviet Union.  Training is alsoprovided by Tanzania, the United Kingdom, and the United States.US-UGANDAN RELATIONSUS-Ugandan relations were strained and ultimately all but brokenduring Idi Amin's rule.  In 1973, persistent security problems andincreasingly difficult operating circumstances forced withdrawal of USPeace Corps volunteers and the termination of bilateral US economicassistance.  In November 1973, after repeated public threats againstUS Embassy officials and after the expulsion of Marine securityguards responsible for protecting US government property andpersonnel, the embassy was closed.  In 1978, Congress legislatedan embargo of all US trade with Uganda.Relations improved after Amin's fall.  In mid-1979, the United Statesreopened its embassy in Kampala. Relations with successorgovernments were cordial, although Obote and his administrationrejected strong US criticism of Uganda's human rights situation.Bilateral relations between the United States and Uganda have beengood since Museveni assumed power, and the United States haswelcomed his efforts to end human rights abuses and to pursueeconomic reform.In the early- to mid-1980s, the United States provided about $10million in assistance to Uganda annually, mostly in the form ofhumanitarian aid (food, medical supplies, hospital rehabilitation, anddisaster relief) and agricultural equipment needed to promoteeconomic recovery in the food and cash crop sectors of Uganda'srural economy.  In 1989, the United States provided $17 million indevelopment assistance, along with grant PL-480 commodityassistance (vegetable oil and tallow) with a market value of about $7million.  The US Agency for International Development (USAID)funding for 1991 is approximately $56 million, including Food forPeace commodities. The US Information Agency (USIA) has carried out a culturalexchange program aiding sports programs and the National Theater,bringing Fulbright professors to teach at Makerere University, andsponsoring US study and tour programs for many governmentofficials.Significant contributions to Ugandan health care, nutrition, education,and park systems from US missionaries, non-governmentalorganizations, private universities, AIDS researchers, and wildlifeorganizations have brought long-term benefits to US-Ugandanrelations.Principal US OfficialsAmbassador- John A. Burroughs, Jr.Deputy Chief of Mission-Robert GribbinPublic Affairs Officer-Dudley SimsDirector, AID-Keith SherperThe US Embassy in Uganda is in the British High CommissionBuilding on Parliament Avenue, Kampala (tel. [phone]).Travel NotesClimate and clothing: Although Uganda straddles the Equator, itsaltitude makes the climate temperate year round. Light-weightclothing supplemented by sweaters for the evening is most practical.Rainwear is needed during the rainy season.Customs: Visas are required for entry, as are inoculations for choleraand yellow fever. Travelers are required to exchange $150 dollars inUgandan shillings upon arrival, and receipts should be retained to beshown upon departure.  A $10 airport departure tax also is levied.Health: Malaria is present, and malaria suppressants arerecommended. Boil and filter water and wash fruits and vegetablesthoroughly.Telecommunications: Telephone and telex services are generallyavailable to the US and Europe. Kampala is 8 time zones ahead ofeastern standard time.Transportation: Kampala is served by several international airlinesfrom Europe and by more extensive connections through Nairobi.In-country, private cars serving as taxis are often crowded andunreliable. Traffic moves on the left.Published by the United States Department of State--Bureau of PublicAffairs--Office of Public Communication--Washington, DC--March1991.  Editor:  Peter Knecht.Department of State Publication 7958--Background NotesSeries--This material is in the public domain and may be reprintedwithout permission; citation of this source is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC 20402</text>
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        <text>United States Department of StateBureau of Public AffairsBACKGROUND NOTES:  TURKEYRELEASED:  January 1991Official Name:Republic of TurkeyPROFILEGeographyArea:  766,640 sq. km. (296,000 sq. mi.); slightly larger than Texas.Cities:  Capital-Ankara (pop. 3.69 million).  Other cities-Istanbul (6.82million), Izmir (2.61 million), Adana (1.93 million).  Terrain:  Narrowcoastal plain surrounds Anatolia; an inland plateau becomesincreasingly rugged as it progresses eastward.  Turkey includes oneof the more earthquake-prone areas of the world.  Climate:Moderate in coastal areas, harsher temperatures inland.PeopleNationality:  Noun-Turk(s).  Adjective-Turkish.  Population (1989 est.):55.3 million.  Annual growth rate:  2.2%. Ethnic groups:  Turkish,Kurdish, other.  Religions:  Muslim 98%, Christian, Jewish.Languages:  Turkish (official), Kurdish, Arabic.  Education:  Yearscompulsory-6. Attendance-95%.  Literacy-89%. Health:  Infantmortality rate-62/1,000.  Life expectancy-66 yrs.  Work force (18.7million):  Agriculture-50%.  Industry and commerce-21%.Services-29%.GovernmentType:  Republic.  Independence:  1923. Constitution:  November 7,1982.Branches:   Executive-president (chief of state), prime minister,Council of Ministers (cabinet).  Legislative-Grand National Assembly(450 members) chosen by national elections at least every 5 years.Judicial-constitutional court, court of cassation, council of state, highcouncil of judges and prosecutors.Political parties:  Motherland Party (ANAP), Social Democrat PopulistParty (SHP), Correct Way Party (DYP), democratic Left Party (DSP),several smaller parties.  Suffrage:  Universal, 21 and older.Central government budget (1989 est.):  $15.5 billion (32,933 billionTurkish lira).Defense:  2.8% of 1989 GDP or 13.2% of 1989 budget.National holiday:  Republic Day, October 29.Flag:  White crescent and star on a red field.EconomyGNP (1989 estimate):  $80.5 billion.  Annual growth rate (1983-89):5.3%.  Per capita income (1989 estimate):  $1,433.  Avg. annualinflation rate (1989):  About 68.8%.Natural resources:  Coal, chromite, copper, boron, oil.Agriculture (15% of GNP):  Major cash crops-cotton, sugar beets,hazelnuts, wheat, barley, and tobacco.  Provides more than 55% ofjobs, 25% of exports.Industry (32% of GNP):  Major growth sector.  Types-Foodprocessing, textiles, basic metals, chemicals, and petrochemicals.Trade (1989):  Exports-$12 billion:  tobacco, cotton, textiles, cement,raisins, nuts, leather, glass, ceramics.  Imports-$16 billion:petroleum, pharmaceuticals and dyes, iron and steel, machinery,plastics and rubber, transport vehicles.  Major partners-France,Germany, Iran, Iraq, Italy, Japan, Netherlands, UK, US, USSR.Fiscal year:  Calendar year.Official exchange rate (Feb. 1990):  2408 Turkish lira=US$1(adjusted daily).US economic aid (FY 1946-90):  $4.3 billion.  US military aid (FY1946-90):  more than  $14 billion.Membership in InternationalOrganizationsUN, North Atlantic Treaty Organization (NATO), Council of Europe,Organization for Economic Cooperation and Development (OECD),Islamic Conference Organization (OIC), European Community (EC)associate member, ITELSAT.PEOPLEBridging Europe and Asia Minor, Turkey is a land of geographic,economic, and social contrasts.  Slightly larger than Texas, modernTurkey spans bustling cosmopolitan centers, pastoral farmingvillages, barren wastelands, peaceful Aegean islands, and steepmountain regions.  More than half of Turkey's population-expectedto reach 83 million by 2005 if its annual growth rate of 2.2%continues-live in urban areas that juxtapose Western life-styles withsquatter dwellings that increasingly ring the cities' edges.  MostTurks,  however, work on farms.  Although Turkey is still adeveloping country,  recent improvements in services have resultedin the proliferation of electricity nationwide and telephoneconnections for all its 34,500 villages.Although 98% of the population is Muslim, Turkey has been officiallysecular since the early 1920s.  Most Turkish Muslims belong to theSunni branch of Islam.  The state exercises no legal discriminationagainst its non-Islamic minorities, primarily Armenian and SyriacChristians, and Jews.Turks of Kurdish origin constitute an ethnic and linguistic group.Estimates of their population range up to 10 million.  Although anincreasing number have migrated to the cities, the traditional homeof the Kurds is in poor, remote areas of the east and southeast,where incomes are less than half the national average and economicdevelopment lags.CultureTurkish culture, rich in Ottoman and folkloric elements, is traditionaland modern.  Turkish carpet weaving is one of the oldest crafts inthe world.  Ceramics and other Ottoman-era crafts retain their variedregional character.Modern Turkish cultural life dates from the 1923 founding of therepublic and early efforts to Westernize Turkish society.  As a result,the arts, literature, drama, and classical and contemporary musichave flourished.  State support of cultural activities is extensive andencompasses a national network of theaters, orchestras, opera andballet companies, university fine arts academies, and variousconservatories.  Public funds also are used to pro-vide partialsupport for private theater groups and for major art exhibitions andfestivals.HISTORYThe legendary Mustafa Kemal, a Turkish World War I hero laterknown as "Ataturk" or "father of the Turks," founded the republic ofTurkey in 1923 after the collapse of the 600-year-old OttomanEmpire.  The empire, which at its peak controlled vast stretches ofnorthern Africa, southeastern Europe, and western Asia, had failedto keep pace with European social and technological developments.The rise of nationalism impelled several ethnic groups to seekindependence, leading to the empire's fragmentation.  This processculminated in the disastrous Ottoman participation in World War I asa German ally.  Defeated, shorn of much of its former territory, andpartly occupied by forces of the victorious European states, theOttoman structure was repudiated by Turkish nationalists who ralliedunder Ataturk's leadership.  The nationalists expelled invading Greekforces from Anatolia after a bitter war.  The temporal and religiousruling institutions of the old empire (the sultanate and caliphate) wereabolished.The new republic concentrated on Westernizing the empire's Turkishcore-Anatolia and a small part of Thrace.  Social, political, linguistic,and economic reforms and attitudes introduced by Ataturk before hisdeath in 1938 continue to form the ideological base of modernTurkey.  Referred to as "Kemalism," it comprises secularism,nationalism, and modernization and turns toward the West forinspiration and support.  The continued validity and applicability ofKemalism are the subject of frequent discussion and debate inTurkey's political life.Turkey entered World War II on the Allied side shortly before the warended and became a charter member of the United Nations.Difficulties faced by Greece after World War II in quelling aCommunist rebellion and demands by the Soviet Union for militarybases in the Turkish Straits caused the United States to declare theTruman Doctrine in 1947.  The doctrine enunciated Americanintentions to guarantee the security of Turkey and Greece andresulted in large-scale US military and economic aid.  Afterparticipating with United Nations forces in the Korean conflict, Turkeyin 1952 joined the North Atlantic Treaty Organization (NATO).Military Coups and CoalitionsOne-party rule (Republican People's Party-RPP) established byAtaturk in 1923 lasted until elections in 1950.  The Democrat Partythen governed Turkey until 1960, when growing economic problemsand internal political tensions culminated in a military coup.  A newconstitution was written, and civilian government was reinstated withthe convening of the Grand National Assembly (GNA) in 1961.  Inaddition, the new constitution established a National Security Council(NSC) composed of the chief of the Turkish general staff andrepresentatives of the army, air force, and navy.Coalition governments, dominated by the RPP, ruled Turkey for thenext 5 years.  In 1965 and 1969, the Justice Party (JP), led bySuleyman Demirel, won sizable majorities of GNA seats and ruledalone.Political agitation surfaced in 1968 and increased as left- andright-wing extremists took to the streets.  In March 1971, seniormilitary leaders grew dissatisfied with the JP's inability to cope withdomestic violence. In a so-called "coup by memorandum," theycalled for the JP's replacement by a more effective government.Demirel's government resigned and was replaced by a successionof "above party" governments, which ruled until the October 1973general elections.  Those elections saw the RPP reemerge as thelargest party and its chairman, Bulent Ecevit, become prime ministerof a coalition government composed of the RPP and theconservative, religiously oriented National Salvation Party.  In 1974,the coalition faltered.  Ecevit resigned, early elections were called,and a prolonged government crisis ensued.From 1975 to 1980, unstable coalition governments ruled, ledalternately by Demirel and Ecevit.  By the end of 1979, anaccelerating decline in the economy, coupled with mounting violencefrom the extreme left and right, led to increasing instability. Demirel'sgovernment began an economic stabilization program in early 1980,but by summer, political violence was claiming more than 20 victimsdaily.   A severely divided GNA was unable to elect a new presidentor to pass other legislation to cope with the crisis.On September 12, 1980, the NSC, led by General Kenan Evren,moved successfully to restore public order.  Thousands of terroristswere captured, along with large caches of weapons and ammunition.While political activity was banned and the former political partiesdissolved, the NSC initiated steps to restore democratic civilian ruleby 1983. These measures included a national referendum onNovember 7, 1982, which resulted in overwhelming public approval(91%) of a new constitution drawn up by the 160-memberConsultative Assembly and modified by the NSC.  The referendumsimultaneously approved General Evren as president for a 7-yearterm.  A temporary article banning former political party leaders frompolitics for 10 years also went into effect.New political parties were allowed to form in 1983 as long asfounding members were not leaders or members of parliamentattached to any pre-1980 political parties.  Prior to the deadline forparticipation in the 1983 national elections, three political parties-theNationalist Democracy Party, the Motherland Party, and the PopulistParty-were authorized.In the 1983 elections, the Motherland Party (founded by Turgut Ozal,deputy prime minister between 1980 and 1982 and architect ofTurkey's successful economic austerity program under the militarygovernment) won an absolute majority in the 400-member GrandNational Assembly (GNA).  The Populist Party came in second, andthe Nationalist Democracy Party third. The new government tookoffice in December 1983.The Ozal administration, the first civilian government since the early1970s to rule without coalition partners, made economic reform itspriority.   In September 1987, a referendum lifting the 10-year ban onformer politicians passed by a small margin. Ozal called immediatelyfor national elections, the first since 1980 in which all legal partieswere allowed to participate.  The elections were held in November,and Ozal won a second 5-year term and a comfortable majority inparliament (292 of 450 seats based on a weighted proportionalsystem).  The Social Democrat Populist Party won 99 seats andbecame the main opposition party.  Former Prime Minister SuleymanDemirel's Correct Way Party won 59 seats.  No other party reachedthe 10% level necessary to enter parliament.  The Democratic LeftParty of former Prime Minister Bulent Ecevit won only 8% of the vote.The next parliamentary election is due in 1992.In 1989, Ozal was elected president.  Ozal's Motherland Partysuffered a setback in March 1989 municipal elections, receiving only22% of the votes cast; down from 36% in 1987.  The opposition hassince called repeatedly for early parliamentary elections.GOVERNMENT AND POLITICAL CONDITIONSThe 1982 constitution preserves a democratic, secular, parliamentaryform of government with a strengthened presidency.  It provides foran independent judiciary and safeguards internationally recognizedhuman rights.  These rights, including freedom of thought,expression, assembly, and travel, can be limited in times ofemergency and cannot be used to violate the integrity of the state orto impose a system of government based on religion, ethnicity, orthe domination of one social class.  The constitution prohibits tortureor ill treatment.  Labor rights, including the right to strike, arerecognized in the constitution but can be restricted.  The presidentand prime minister share executive powers.  The president, who hasbroad powers of appointment and supervision, is chosen by the GNAfor a term of 7 years and cannot be reelected.   The prime ministeradministers the government.  The prime minister and the Council ofMinisters are responsible to the GNA.The 450-member GNA carries out legislative functions.  Election is byproportional representation. To participate in the distribution of seats,a party must obtain at least 10% of the votes cast at the nationallevel as well as a percentage of votes in  the contested districtaccording to a complex formula.  This "double threshold" or"barrage" mechanism is intended to reduce the likelihood of coalitiongovernments by reducing the number of smaller parties inparliament.The president is to enact laws passed by the GNA within 15 days.With the exception of budgetary laws, the president may return a lawto the GNA for reconsideration.  If the GNA reenacts the law, it isbinding.  Constitutional amendments require a two-thirds majority forapproval.  They also may be submitted to popular referendum.The 1982 constitution preserves the judicial system previously ineffect and provides for a system of state security courts to deal withoffenses against the integrity of the state.  The high court systemremains in place with its functional division, common in Europeanstates, including a constitutional court responsible for judicial reviewof legislation, a court of cassation (or supreme court of appeals), acouncil of state serving as the high administrative and appeals court,a court of accounts, and a military court of appeals.  The HighCouncil of Judges and Prosecutors, appointed by the president,supervises the judiciary.Only the Motherland Party remains of the three parties that competedin the 1983 elections.  The Nationalist Democracy Party dissolveditself, and the Populist Party merged with the Social DemocratPopulist Party, a new center-left party.Principal Government OfficialsPresident of the Republic-Turgut OzalPrime Minister-Yildirim AkbulutMinister of Foreign Affairs-Ahmet Kurtcebe AlpetemocinAmbassador to the United States-Nuzhet KandemirAmbassador to the United Nations-Mustafa AksinTurkey maintains an embassy in the United States at 1714Massachussets Avenue NW, Washington, DC, 20036  andconsulates general in Chicago, Los Angeles, New York, andHouston.DEFENSETurkey's armed forces, with more than 700,000 members, are thelargest in NATO after those of the United States. Turkey enteredNATO in 1952 and serves as the organization's vital eastern anchor,sharing a long sea and land border with the Soviet Union andcontrolling the straits leading from the Black Sea to theMediterranean.  Two NATO headquarters are located in Izmir.  Morethan 10,000 US military personnel and their dependents are stationedat installations in Turkey, including a major air base at Incirlik, nearAdana, several communications and electronics facilities, and anumber of smaller installations.  Major Amer-ican militaryorganizations in Turkey include the Joint US Military Mission for Aidto Turkey and the US Logistical Group, each headed by a US majorgeneral.   With assistance from the United States and other NATOallies, the Turkish military is undergoing major modernization.FOREIGN RELATIONSBesides its relationships with NATO and the European Community(EC), Turkey is a member of the OECD and the Council of Europe.Its primary political, economic, and security ties are with the West.During the last several years, Turkey has continued to expand itsrelations with Western Europe, rejoining the Council of Europe afteran absence of several years and applying for full membership in theEC.  Turkey also has continued to expand its trade relations with theMiddle East and the Soviet Union.US-TURKISH RELATIONSTurkish-American friendship dates to the late 18th century and wasofficially sealed by a treaty in 1830.  The present close relationshipbegan with the agreement of July 12, 1947, which implemented theTruman Doctrine.  As part of the cooperative effort to further Turkisheconomic and military self-reliance, the United States has loaned andgranted Turkey more than $4 billion in economic aid and more than$14 billion in military assistance.US-Turkish relations were severely tested in July 1974, when Turkeyinvoked a 1960 treaty of guarantee for Cyprus and sent troops thereto protect the Turkish Cypriot community following the overthrow ofthe Cypriot government by mainland Greek officers in the Cypriotnational guard.  The ensuing fighting on Cyprus led to Turkishoccupation of the northern part of the island, which remains in placetoday.  Turkey's use of American-supplied arms during theintervention caused the US Congress to mandate an embargo in1975 on military shipments to Turkey.  Resentment of this action ledto a Turkish decision in July 1975 to suspend important US defenseactivities at joint installations and cancel the 1969 defensecooperation agreement.  The US embargo was relaxed in October1975, and in March 1976 a new defense agreement was signed, butnot approved, by the Congress.  In September 1978, the embargoended and US-Turkish relations improved markedly.  Turkey liftedrestrictions on US activities in late 1978.The United States and Turkey signed a defense and economiccooperation agreement in March 1980 that established a newframework for US military activities in Turkey and committed theUnited States to "best efforts" in providing defense support to theTurkish armed forces.  The two countries signed an exchange ofletters in March 1987 to extend the agreement through December of1990.  It will continue automatically on a year-to-year basis from 1991on, unless one of the two parties objects by September 18, 1991, orby the 18th of any following year.Turkey temporarily imposed some restrictions on American militaryactivities in early 1990 in response to the US Senate's considerationof a resolution to declare a day of remembrance for what Armeniansand others have described as genocide of Armenians bypre-republican Turkey. Turkey lifted the restrictions after theresolution failed to pass.  The unresolved Armenian and Cyprusissues continue to disturb US-Turkish relations.Principal  US OfficialsPrincipal OfficersAmbassador-Morton I. AbramowitzDeputy Chief of Mission-Marc GrossmanCounselorsPolitical Affairs-Michael I. AustrianPolitical-Military Affairs-Regina EltzEconomic Affairs-Charles JacobiniAdministrative Affairs-William KellyPublic Affairs Officer -Larry TaylorDefense/Air Attache-Col. Jerry KafkaNavy Attache-Capt. Jesse JamesArmy Attache-Col. Robert JiminezConsuls GeneralIstanbul-Thomas CarolanIzmir-Eugene ZajacConsulAdana-Harry ColeUS Mission AddressesThe US embassy is located at 110 Ataturk Blvd., Ankara.  Theconsulate general in Istanbul is at 104-108 Mesrutiyet Caddesi; theconsulate general in Izmir at 92 Ataturk Caddesi, third floor; and theconsulate in Adana, on Ataturk Caddesi.ECONOMYThe Turkish economy underwent dramatic changes in the 1980s.  Anexport-led growth strategy and free-market principles catapultedTurkey into the ranks of the fastest growing economies in the OECD.Turkey's free market orientation is dynamic, and it is unlikely toreturn to former inward-looking policies.  The industrial sector hasassumed greater importance in the Turkish economy, although thepublic sector, which includes state-owned or controlled enterprises,still accounts for about one-third of industrial production.  Ozal'sMotherland Party has reinforced and expanded economic  reformssince coming to power in 1983.Agriculture continues as a mainstay, employing almost half the totallabor force in the production of cotton, tobacco, grains, fruits, andvegetables.  Because of the productivity of Turkey's soil and theefforts of Turkish farmers, the country was one of the few in theworld that was self-sufficient in food during the 1980s.  Ambitiousgovernment projects, including a $21 billion irrigation program tocreate a new "fertile crescent" in the semiarid southeast, stressagriculture's important role in foreign trade.  Turkey's regionalclimatic diversity and usually adequate rainfall permit a broad rangeof crops.Growth in GNP averaged almost 7% between 1983 and 1989.  Thepace of Turkey's growth, however, slowed in the late 1980s.Unrestrained government spending, rapid economic development,and drought conditions have had a price:  unemployment stands at14.4%, and inflation remains steady at almost 70%.  One of the mainreasons for inflation is the public sector deficit, which reached 7.5%of GNP in 1989 and is expected to exceed that ratio in 1990.Severe drought conditions were a major factor in a recession thatcontinued into 1989.  Agricultural production dropped by almost11%, pushing real GNP growth to the lowest level since 1980-1.8%.  Turkish authorities have enacted austerity measures to reduceinflation, including an ambitious program to privatize inefficient stateeconomic enterprises that contribute substantially to the deficit.Better than normal agricultural conditions led to economic recoveryin 1990, with real GNP growth expected to reach 9%.  Yet, lowerimport duties-reduced to stimulate domestic production and demandby creating greater competition-and the Turkish lira's realappreciation against currencies of its primary trading partners, theUnited States and Germany, led to a major acceleration in importsand stagnation in export growth in 1990.  The trade deficit furtherworsened as all commercial relations with Iraq were suspended.  Acurrent account deficit in excess of $1 billion is expected for 1990.Domestic economic problems were offset in the 1980s by substantialimprovements in Turkey's external account as exports expandedfrom $5.7 billion in 1983 to $11.6 billion in 1989.  Turkey posted acurrent account surplus of $1.5 billion in 1988, the first time since1973.  This remarkable improvement came as a result of the lowesttrade deficit in a decade ($1.8 billion) and a jump of about 60% intourism revenues (from $1.48 billion to $2.36 billion).  In 1989, asurplus of $966 million was achieved.Turkey has an exemplary record for repayment of its foreign debt,which stabilized at $41 billion at the end of 1989.  Turkey refinancedmilitary debts during 1988 and 1989 by exchanging them forlong-term commercial credits. Turkey has attracted foreign investment by implementing one of themore liberal foreign investment laws in the world.  Between 1981 and1989, net foreign direct investment increased from $95 million to$633 million.  As of mid-1990, the government had authorized foreigndirect investment projects totaling $5.6 billion.Turkey's economic orientation is increasingly toward the West,although it is looking for new markets in Asia and the Middle East. In April 1987, Turkey applied for full membership in the EC.  In 1989,the EC announced it would consider no new members before 1993,the target for completion of the EC's single market plan.   In 1990,the EC called for closer economic cooperation with Turkey under theexisting association agreement and will review Turkey's membershipapplication.With potential membership in the EC as the catalyst, Turkeycontinues to liberalize its economy and harmonize related legislationto bring it closer to Western standards.  In the 1990s, measuredeconomic growth with financial stability will remain a major domesticgoal.TRAVEL NOTESCustoms:  A visa is not required of holders of US tourist passports(regular, official, or diplomatic) who plan to stay in Turkey for 3months or less.  Persons who plan to come to Turkey for longerstays must apply for a visa from a Turkish embassy or consulate.Currency:  There are no restrictions on the importation of Turkish liraor hard currencies into Turkey.  However, residents of Turkey mustdeclare all currencies in excess of the equivalent of $5,000 uponentry.  Visitors to Turkey may exchange Turkish lira up to theequivalent of $5,000 into foreign currency without anydocumentation.Climate and clothing:  Clothing and shoe requirements are about thesame as for the eastern US.  Climate on the periphery (Istanbul,Izmir, and Adana) is Mediterranean with cool, rainy winters and hot,moderately dry summers.  The Black Sea coast receives the greatestrainfall.  Shielded by mountains, the interior (Ankara) has continentalclimate with cold winters and dry, hot summers. Climate in theeastern mountainous area is often severe.Health:  Public health standards in the larger cities approach thosein the US, but care must be taken, especially in rural areas.  Whiletap water in major cities is generally potable, it is recommended thatbottled water be used at all times, because of  possible intermittentcontamination of water lines.  Turkish law requires that at least onepharmacy be open in a neighborhood at all times.Telecommunications:  Telephone and telegraph services, domesticand international, and generally dependable.  During peak hours,circuits are often overloaded. Turkey is seven hours ahead of EST.Daylight savings time is used.Transportation:  More than 20 scheduled airlines connect Turkey withall parts of the world.  Istanbul, Ankara, Izmir, Antalya, and Dalamanare Turkey's primary international airports.  Turkish Airlines (THY),Turkish state railways, and a variety of intercity bus companies servemany points in Turkey, Europe, and the Middle East.  Local buses,share cabs, and minibuses (dolmus), although somewhat crowded,provide satisfactory local transportation. Taxis are readily available.Main roads are fairly good in and between the large centers;secondary roads are generally adequate. Roads frequently lackshoulders.  Drivers should exercise extreme care because of heavytruck and other traffic, and unpredictable drivers.  Driving at night inthe countryside should be avoided because of many  or poorly-litvehicles on the highway.ADDITIONAL RESOURCESUS DEPARTMENT OF STATE DISPATCHAs the Department's new weekly paid subscription magazine, the USDepartment of State Dispatch is the most comprehensive source ofofficial infor-mation on US foreign policy.  Dispatch includesspeeches, congressional testimony, fact sheets, Gists, countryprofiles, treaty actions, updates on Central and Eastern Europe andevents in the Persian Gulf, and more.  Published by the Bureau ofPublic Affairs, the new magazine is indexed every 6 months.Dispatch is available by subscription only from:   The Superintendentof Documents, US Government Printing office (address below), andthe National Technical Information Service, US Department ofCommerce (5285 Port Royal Road, Springfield VA 22161-2171.COMPUTER INFORMATION DELIVERY SERVICEIn February 1991, the Department of State will join the ComputerInformation Delivery Service (CIDS), an established computernetwork providing access within minutes of release to time-sensitiveUS foreign policy information for subscribers around the world.  CIDSwill carry full texts of Dispatch, Background Notes, and the officialtranscripts of the daily press briefings, press conferences, and otherkey events.  For information concerning subscriptions, call the CIDSInfor-mation Center at [phone], or write the Office of PublicCommunication, Bureau of Public Affairs, US Department of State,Washington, DC, 20520-6810.Publications Concerning TurkeyAlso available from the Superintendent of Documents,  USGovernment Print- ing Office, Washington, DC, 20402:Turkey Post Report-US  Department of State (1990).Turkey,  A Country Study- American University (1989).Foreign Labor Trends-US Department of Labor.Foreign Economic Trends-US Department of Commerce.Economic trends and trade information is available from theInternational Trade Administration, US Department of Commerce,Washington, DC, 20230, or  from any Commerce Department districtoffice.Published by the United States Department of State - Bureau ofPublic Affairs  - Officeof  Public Communication  -  Washington, DC -- January 1991Editor:  Deborah Guido-O'Grady.Department of State Publication 7850 Background Notes Series.This material is in the public domain and may be reprinted withoutpermission; citation of this source is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC, 20402.</text>
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        <text>BACKGROUND NOTES:  TUNISIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJULY 1994Official Name:  Republic of TunisiaPROFILEGeographyArea:  163,610 sq. km. (63,378 sq. mi.), slightly smallerthan Missouri.Cities:  Capital--Tunis (pop. about1 million).  Other city--Sfax (500,000).Terrain:  Arable land in north and along central coast;south is mostly semiarid or desert.Climate:  Hot, dry summers and mild, rainy winters.PeopleNationality:  Noun and adjective--Tunisian(s).Population (1993):  8,530,000.  Annual growth rate(1993)--1.9%.Ethnic groups:  Arab-Berber 98%, European 1%, other 1%.Religions:  Muslim 98%, Christian 1%, Jewish less than1%.Languages:  Arabic (official), French.Education:  Years compulsory--9.  Literacy--65%.Health (1992):  Infant mortality rate--38/1,000.  Lifeexpectancy--67 years male, 70 years female.Work force (2,500,000):  Services--41%.   Industry--34%.Agriculture--24%.  Other--1%.GovernmentType:  Republic.Constitution:  June 1, 1959.Independence:  March 20, 1956.Branches:  Executive--president (chief of state and headof government).  Legislative--unicameral 163-memberChamber of Deputies (popularly elected).  Judicial--independent.  Judges of highest court are presidentiallyappointed.Administrative Subdivisions:  23 governorates.Political parties:  Constitutional Democratic Party(RCD), Movement of Democratic Socialists (MDS), RenewalMovement (formerly the Communist Party), SocialistProgressive Party (RSP), Popular Unity Party (PUP),Democratic Unionist Party (UDU), Social Liberal Party(PSP).  Illegal parties--Renaissance Party (An-Nahda),Tunisian Communist Workers' Party (POCT).Suffrage:  Universal at 20.Flag:  Red star on a red crescent in a white circlecentered on a red background.EconomyGDP (1993):  $12.2 billion.Growth rate (1992):  8%.Per capita GDP (1993):  $1,438.Natural resources:  crude oil, phosphates, iron ore,lead, zinc, salt.Agriculture (21% of GDP):  Products--olives, beets,dates, oranges, almonds, grain, sugar.Industry (20% of GDP):  Types--petroleum, mining(particularly phosphate and iron ore), tourism, textiles,footwear, food processing, beverages.Trade:  Exports--$6.1 billion (1993):  hydrocarbons,agricultural products, phosphates, and chemicals.  Majormarkets--EU 77%, Middle East 9%, U.S. 1%, Turkey, and theformer Soviet Union.  Imports--$6.7 billion (1993):industrial goods and equipment, hydrocarbons, food,consumer goods.  Major suppliers--EU 71%, U.S. 5%,Canada, Japan, Switzerland, Turkey, Algeria.Official exchange rate (1994):  1 dinar=U.S.$1.PEOPLETunisians are descendants of indigenous Berber and Arabtribes that migrated to North Africa during the seventhcentury.  Recorded history in Tunisia begins with thearrival of Phoenicians, who founded Carthage and otherNorth African settlements.  Carthage was captured by theRomans in AD 146, and the Romans continued to rule NorthAfrica until they were defeated by tribesmen from Europein the fifth century.  The Muslim conquest in the seventhcentury transformed North Africa.  Tunisia became acenter of Arab culture until its assimilation into theTurkish Ottoman Empire in the 16th century.France established a protectorate in Tunisia in 1881.The rise of nationalism led to Tunisia's independence in1956.  Independence leader Habib Bourguiba becameTunisia's first president in 1956 and held the officeuntil 1987, when Zine El-Abidine Ben Ali was elected.Post-independence tensions between France and Tunisiadecreased in 1962 when France withdrew from its Bizertenaval base.  But when Tunisia nationalized foreigninterests in 1964, relations with France again suffered.Cooperation with France improved in 1968, and France hasextended important economic credits and technicalassistance since then.GOVERNMENT AND POLITICAL CONDITIONSThe Tunisian republic was established in 1957 withBourguiba as President.  Tunisia adopted a constitutionin June 1959.  President Bourguiba ran unopposed andlegislative candidates met only token opposition in theelections that followed.  In October 1964, Bourguiba'sNeo-Destour Party was renamed the Destourian SocialistParty (PSD).  Bourguiba was named President-for-life in1974 by a constitutional amendment.  Opposition partieswere legalized in 1981, but the PSD maintained control ofall legislative seats until the 1994 elections.  Ben Ali,elected President in 1987, renamed the PSD theConstitutional Democratic Party (RCD) in 1988.  Itremains Tunisia's dominant political party.In 1987, President Ben Ali initiated a democratizationprocess, released some political prisoners, and abolishedspecial state security courts.  In 1988, he forged anational pact which was signed by representatives of allopposition forces, including the Islamists.Tunisia's constitution was revised in 1988 to permit thepresident to serve for three five-year terms.Legislative elections are held every 5 years.  Thepresident has full responsibility for determiningnational policy.  Presidential bills have priority beforethe Chamber of Deputies.  The president may govern bydecree when the Chamber is not in session.  In thepresidentially appointed cabinet, the prime minister isresponsible for executive policy and succeeds thepresident in case of death or disability.Ben Ali held presidential and legislative elections from1989 to 1991 but ran for president unopposed.  Inelections for the Chamber of Deputies, candidates of theillegal Islamist party An-Nahda garnered averages of 18%of the vote in districts they contested as independents.The government introduced modified proportionalrepresentation for 1990 municipal elections, butopposition parties boycotted the elections to protest RCDcontrol of the process.  A 1990 firebomb attack on an RCDparty headquarters in the Bab Souika district of Tunissparked a harsh government crackdown on the Islamistopposition.  Thousands of An-Nahda members andsympathizers were arrested for plotting to overthrow thePresident.  The 1992 military trials in which 265Islamists were convicted and sentenced to prison terms ofone year to life were marked by defendants' allegationsof widespread torture and abuse by security officers.Opposition parties were elected to Tunisia's Chamber ofDeputies for the first time in 1994 due to a newelectoral code which set aside 19 seats in thelegislature for opposition candidates elected byproportional vote.  In March 1994, President Ben Ali wasre-elected to another 5-year term, capturing 99.9% of thevote.Trade unions have played a key role in Tunisia's historysince the struggle for independence.  The assassinationof Tunisian labor leader Ferhat Hached in 1952 was acatalyst for the final push against the French.  TheGeneral Union of Tunisian Workers (UGTT) had a decisivepolitical presence during the first two decades of therepublic.  Bourguiba cracked down on the UGTT in 1978,1984, and 1985.  Despite a drop in union membership from400,000 to about 250,000 as the structure of the Tunisianeconomy changed, the UGTT continued to hold a prominentplace in Tunisia's political and social life.Tunisia is a leader in the Arab world in the promotion ofequal status for women under the law.  A Personal StatusCode was adopted shortly after independence in 1956which, among other laws, prohibits polygamy.  Rights ofwomen and children were further enhanced by 1993 reforms,which included a provision to allow Tunisian women totransmit citizenship even if they are married to aforeigner and living abroad.  The government hassupported a remarkably successful family planning programthat has reduced Tunisia's birth rate to 1.9%.Tunisia's judiciary is headed by the Court of Cassation,whose judges are appointed by the president.The country is divided administratively into 23governorates.  The president appoints all governors.Principal Government OfficialsPresident--Zine El-Abidine Ben AliPrime Minister--Hamed KarouiMinister of State--Abdallah KallelMinister of Foreign Affairs--Habib Ben YahiaMinister of National Defense--Abdelaziz Ben DhiaAmbassador to the United States--vacantTunisia's embassy in the United States is located at 1515Massachusetts Avenue NW, Washington, DC 20005 (tel. [phone], fax [phone]).ECONOMYTunisia's economic growth historically has depended onoil, phosphates, agriculture, and tourism.  Thegovernment's economic policies had limited success duringthe early years of independence.  During the 1960s, adrive for collectivization caused unrest, and farmproduction fell sharply.  Higher prices for phosphatesand oil and growing revenues from tourism stimulatedgrowth in the 1970s, but an emphasis on protectionism andimport substitution led to inefficiencies.  Tunisiareceived considerable economic assistance during thisperiod from the United States and European and Arabcountries.Late in 1985, commodity prices and tourism revenues fell,and harvests were poor.  Workers' remittances fell whenLibya expelled 32,000 Tunisian workers.  An overvalueddinar and a growing foreign debt sparked a foreignexchange crisis.  In 1986, the government launched astructural adjustment program to liberalize prices,reduce tariffs, and reorient Tunisia toward a marketeconomy.Tunisia's economic reform program has been lauded as amodel by international financial institutions.  Thegovernment has liberalized prices, reduced tariffs,lowered debt-service-to-exports and debt-to-GDP ratios,and extended the average maturity of its $9 billionforeign debt.  Structural adjustment brought additionallending from the World Bank and other Western creditors.In 1990, Tunisia acceded to the General Agreements onTariffs and Trade (GATT).  The government also hasprivatized about 32 state-owned enterprises.Unemployment continues to plague Tunisia's economy and isaggravated by a rapidly growing work force.  An estimated60% of the population is under the age of 25.Officially, 16% of the Tunisian work force is unemployed,but an estimated 50% of workers are unemployed orunderemployed.In 1992, Tunisia reentered the private internationalcapital market for the first time in six years, securinga $10-million line of credit for balance of paymentssupport.  An emerging stock exchange offers investorsopportunities.  Recent oil and natural gas discoverieshave put off until the 21st century Tunisia's becoming anet energy importer.  Still, difficult economic reformsneed to be made, including further reductions in tariffsand subsidies.The Tunisian Government adopted a unified investment codein 1993 to attract foreign capital.  More than 600export-oriented joint venture firms operate in Tunisia totake advantage of relatively low labor costs andpreferential access to nearby European markets.  Economiclinks are closest with European countries, which dominateTunisia's trade.  Tunisia seeks continued preferentialtrade agreements with European countries.  In 1993,Tunisia made the dinar convertible for tradetransactions.FOREIGN RELATIONSPresident Bourguiba took a non-aligned stance butemphasized close relations with Europe and the UnitedStates.  President Ben Ali aims to increase relationswith Arab and African nations while maintaining thosewith the West.Tunisia served as the headquarters of the Arab Leaguefrom 1979 to 1990 and has hosted the Palestine LiberationOrganization's (PLO) headquarters since 1982.  Since thesigning of the Israeli-PLO Accord in September 1993, thePLO Executive Committee has relocated to Jericho whilethe Political Department remains in Tunis.  Tunisiaconsistently has played a moderating role in thenegotiations for a comprehensive Middle East peace.  In1993, Tunisia was the first Arab country to host anofficial Israeli delegation as part of the Middle Eastpeace process.  Israeli citizens of Tunisian descent maytravel to Tunisia on their Israeli passport.Wedged between Algeria and Libya, Tunisia has hadstrained relations at times with its neighbors.  Tunisiaand Algeria resolved a long-standing border dispute in1993 and have cooperated in the construction of a naturalgas pipeline through Tunisia that connects Algeria toItaly.Tunisia's relations with Libya have been erratic sinceTunisia annulled a brief agreement to form a union in1974.  Diplomatic relations were broken in 1976 butrestored in 1977.  Relations deteriorated again in 1980,when Libyan-trained rebels attempted to seize the town ofGafsa.  In 1982, the International Court of Justice ruledin Libya's favor in the partition of the oil-richcontinental shelf it shares with Tunisia.  Libya's 1985expulsion of Tunisian workers and military threats ledTunisia to sever relations.  Relations were normalizedagain in 1987 but continue to be strained.Tunisia has supported the development of the Arab MaghrebUnion (UMA) along with Algeria, Morocco, Mauritania, andLibya.  But progress on Maghreb integration has beenstymied because of the political instability in Algeriaand Libya's differences with the U.S. and Europe over itssupport for terrorism.U.S.-TUNISIAN RELATIONSThe United States has maintained official representationin Tunis almost continuously since 1797.  The firstAmerican treaty with Tunisia was signed in 1799.  The twogovernments are not linked by security treaties, butrelations have been close since Tunisia's independence.U.S.-Tunisian relations suffered briefly after the 1985Israeli raid on PLO headquarters in Tunis, after the 1988assassination of PLO terrorist Abu Jihad, and in 1990during the Gulf War when Tunisia objected to U.S.intervention following Iraq's invasion of Kuwait.  Ineach case, however, relations warmed again quickly,reflecting strong bilateral ties.  The United States andTunisia have an active schedule of joint militaryexercises.  U.S. security assistance historically hasplayed an important role in cementing relations.  TheU.S.-Tunisian Joint Military Commission meets annually todiscuss military cooperation, Tunisia's defensemodernization program, and other security matters.The United States first provided economic and technicalassistance to Tunisia under a bilateral agreement signedMarch 26, 1957.  Aid has totaled more than $1.5 billionsince then.  Recently, it has primarily been used insupport of Tunisia's conversion to a market-orientedeconomy.  Assistance has been provided through the U.S.Agency for International Development (USAID) and theAgriculture Department's commodity credit programs andPL-480 (Food for Peace).The U.S. Government also responded rapidly with naturaldisaster relief following severe flooding in 1982 and1990 and a locust plague in 1988.  The Peace Corps hasbeen active in Tunisia since 1961.  The program's 75volunteers focus on rural and urban development,vocational education, and public health.  Americanprivate assistance has been provided liberally sinceindependence by foundations, religious groups,universities, and philanthropic organizations.The U.S. government has supported Tunisia's efforts toattract foreign investment.  The United States andTunisia concluded a bilateral investment treaty in 1990and an agreement to avoid double taxation in 1989.American firms seeking to invest in Tunisia and export toTunisia can receive insurance and financing for theirbusiness through U.S. Government agencies, including theOverseas Private Investment Corporation (OPIC) and theExport-Import Bank.  The best prospects for foreignersinterested in the Tunisian market are in high technology,energy, agribusiness, food processing, medical care andequipment, and environmental and tourism sectors.Principal U.S. OfficialsAmbassador--Mary Ann CaseyDeputy Chief of Mission--Carol K. StockerPolitical Officer--Andrea M. FarsakhEconomic Officer--David J. PeashockCommercial Officer--Paul C. O'FrielThe U.S. Embassy in Tunisia is located at 144 Ave. de laLiberte, 1002 Tunis-Belvedere (tel. [phone],fax [phone]).  The U.S. Information Service(USIS) offices are located at 14 Rue Yahia Ibn Omar, 1002Tunis-Belvedere (tel. [phone]).TRAVEL NOTESCustoms and currency:  Visas are not required of U.S.tourists visiting the country for up to four months.Firearms are carefully controlled, but there are nounusual customs restrictions.  Tunisian dinars may not beimported or exported, but foreign currency, includingdollars, may be imported; departing travelers may takeout the amounts they brought in and any other foreigncurrency certified to have been legally acquired inTunisia.Health:  Tunisia has no particular health hazards, buttapwater is not potable in certain seasons in Tunis.Adequate medical care is available in the capital and inother major cities.Published by the United States Department of State --Bureau of Public Affairs -- Office of PublicCommunication -- Washington, DC    July 1994 -- ManagingEditor:  Peter A. Knecht -- Editor:  Peter FreemanDepartment of State Publication 8142 -- Background NotesSeries.  For sale by the Superintendent of Documents,U.S. Government Printing Office, Washington, DC  20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: TRINIDAD & TOBAGOPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of Trinidad and TobagoPROFILEGeographyArea:  5,128 sq. km. (1,980 sq. mi.); about 1.5 times the size of Rhode Island.Cities:  Capital--Port of Spain (metropolitan pop. 300,000).  Other city--San Fernando (pop. 50,000).Terrain:  Plains and low mountains.Climate:  Tropical; rainy season (June through December).PeopleNationality:  Noun and adjective--Trinidadian(s) and Tobagonian(s).Population (1992 est.):  1.2 million.Annual growth rate:  1.8%.Ethnic groups:  African 40%, East Indian 40%, mixed 18%, European 1%, Chinese and other 1%.Religions:  Roman Catholic 30%, Hindu 24%, Anglican 11%, Muslim 6%, Presbyterian 3%, other 26%.Language:  English.Education:  Years compulsory--8.  Literacy--97%.Health:  Infant mortality rate--10/1,000.  Life expectancy--males 67 yrs., females 72 yrs.Work force (505,100):  Services--52%.  Manufacturing, mining and quarrying--15%.  Construction and utilities--13%. GovernmentType:  Parliamentary democracy.Independence:  August 31, 1962.Present constitution:  August 31, 1976.Branches:  Executive--president (chief of state), prime minister (head of government), cabinet.  Legislative--bicameral parliament.  Judicial--independent court system; highest court of appeal is Privy Council in London.Subdivisions:  7 counties, 4 municipalities (Trinidad); Tobago House of Assembly (Tobago).Political parties:  People's National Movement (PNM), United National Congress (UNC), National Alliance for Reconstruction (NAR), National Joint Actions Committee (NJAC), and others.Suffrage:  Universal at 18.Economy (1993)GDP:  $4.6 billion.Annual growth rate:  -1.5%.Per capita income:  $3,850.Natural resources (26% of GDP):  Oil and natural gas.Agriculture (4% of GDP):  Products--poultry, fish, pork, sugar, cocoa, citrus.Industry (10% of GDP):  Types--manufacturing; processed food and beverages, assembly operations.Trade:  Exports--$1.4 billion:  crude oil, petroleum products, ammonia, fertilizers, methanol, iron/steel, sugar.  Major markets--U.S., CARICOM, U.K., Venezuela.  Imports--$1.1 billion:  industrial machinery, electrical machinery, vehicle kits, paper products, meat, dairy, wood products, rice.  Major suppliers--U.S., U.K., Japan, Canada, CARICOM.Exchange rate (1994):  TT $5.85=U.S. $1.PEOPLETrinidad and Tobago's people are mainly of African or East Indian descent.  Virtually all speak English.  Small percentages also speak Hindi, French patois, and several other dialects.Trinidad has two major folk traditions:  Creole and East Indian.  Creole is a mixture of African elements influenced by Spanish, French, and English colonial culture.  Trinidad's East Indian culture came to the island with indentured servants brought in to resolve a labor shortage created by the emancipation of the African slaves in 1833.  Most remained on the land, and they still dominate the agricultural sector, but many have become prominent in business and the professions.  East Indians have retained their own way of life--preserving Hindu and Muslim religious festivals and practices--and have resisted assimilation into the Creole culture.HISTORYTrinidad's original inhabitants were Arawak and Carib peoples.  Columbus landed there in 1498 on his third voyage, and the island was settled by the Spanish a century later.  The Arawaks and Caribs were largely wiped out by the Spanish colonizers.  The survivors were gradually assimilated.  Although it attracted French, free black, and other non-Spanish settlers, Trinidad remained under Spanish rule until the British captured it in 1797.  It was formally ceded to Great Britain in 1802.  During the colonial period, Trinidad's economy relied on large sugar and cocoa plantations.  Tobago's development was similar to other plantation islands in the Lesser Antilles and quite different from Trinidad.  During the colonial period, French, Dutch, and British forces fought over possession of Tobago, and the island changed hands 22 times, more often than any other West Indian island.  Tobago was finally ceded to Great Britain in 1814.  Trinidad and Tobago were incorporated into a single colony in 1888.  In 1958, the United Kingdom tried to establish an independent Federation of the West Indies comprising most of the former British West Indies.  But disagreement over the structure of the federation soon led to its collapse after Jamaica and Trinidad and Tobago withdrew.  Trinidad and Tobago achieved full independence in 1962 and joined the Commonwealth.GOVERNMENTTrinidad and Tobago is a unitary state, with a parliamentary democracy modeled after that of the U.K.  From 1962 until 1976, Trinidad and Tobago, although completely independent, acknowledged the British monarch as the figurehead chief of state.In 1976, the country adopted a republican constitution, replacing Queen Elizabeth with a president elected by the parliament.  The general direction and control of the government rests with the cabinet, led by a prime minister and answerable to the bicameral parliament.The 36 members of the House of Representatives are elected to terms of at least five years.  Elections may be called earlier by the president at the request of the prime minister or after a vote of "no confidence" in the House of Representatives.  The Senate's 31 members are appointed by the president:  16 on the advice of the prime minister, six on the advice of the leader of the opposition, and nine independents selected by the president from among outstanding members of the community. The country's highest court is the Court of Appeal, the chief justice of which is appointed by the president with the concurrence of the prime minister and the leader of the opposition.  Final appeal on some matters is decided by the Judicial Committee of the Privy Council in London.Trinidad's seven counties and four largest cities are administered by elected councils which hold little real power.  Tobago was given a measure of self-government in 1980 and is ruled by the Tobago House of Assembly.Principal Government OfficialsPresident--Noor M. HassanaliPrime Minister--Patrick ManningMinister of Foreign Affairs--Ralph MarajAmbassador to the U.S. and the OAS--Corinne McKnightAmbassador to the UN--Annette des Iles The embassy of the Republic of Trinidad and Tobago is located at 1708 Massachusetts Avenue NW, Washington, DC 20036 (tel. [phone]).POLITICAL CONDITIONSThe first political party in Trinidad and Tobago with a continuing organization and program--the People's National Movement (PNM)--emerged in 1956 under Dr. Eric Williams, who became Prime Minister upon independence and remained in that position until his death in 1981.  Politics in Trinidad and Tobago generally run along ethnic lines, with Afro-Trinidadians supporting the PNM and Indo-Trinidadians supporting various Indian parties.The PNM remained in power following the death of Dr. Williams, but its 30-year rule ended in 1986 when the National Alliance for Reconstruction (NAR), a "rainbow" party aimed at Trinidadians of both African and Indian descent, won a landslide victory by capturing 33 of 36 seats.  Tobago's A.N.R. Robinson, the NAR's political leader, was named Prime Minister.  The NAR also won 11 of the 12 seats in the Tobago House of Assembly.The NAR began to break down when the Indian component withdrew in 1988.  Basdeo Panday, leader of the old United Labor Front (ULF), formed the new opposition with the United National Congress (UNC), an Indian-majority party which replaced the ULF.  The NAR's margin was immediately reduced to 27 seats, with six for the UNC and three for the PNM.In July 1990, the Jamaat al Muslimeen (JAM), an extremist Black Muslim group with an unresolved grievance against the government over land claims, tried to overthrow the NAR government.  The group held the prime minister and members of parliament hostage for five days while riots ripped through downtown Port of Spain.  After a long standoff with the police and military, Black Muslim leader Yasin Abu Bakr and his followers surrendered to Trinidadian authorities.  In July 1992, the Court of Appeal upheld the validity of a government amnesty given to the JAM during the hostage crisis.  All 114 members of the JAM  jailed since the coup attempt were released.  The government appealed the ruling.In December 1991, the NAR captured only the two districts in Tobago.  The PNM, led by Patrick Manning, carried a majority of 21 seats, and the UNC came in second.  Patrick Manning  became the new Prime Minister, and Basdeo Panday continued to lead the opposition.  As of 1994, the PNM majority had been reduced to 20 seats. ECONOMYEndowed with rich deposits of oil and natural gas, Trinidad and Tobago became one of the most prosperous countries in the Western Hemisphere during the oil boom of the 1970s.  Oil revenues let the government embark on a rapid industrial and infrastructural development program.  Part of this was the acquisition of more than 60 state-run enterprises, most of which eventually became serious drains on public finances.With the collapse in oil prices in the early 1980s, Trinidad and Tobago slumped into a recession from which it is emerging.  With the help of a stringent adjustment program, which began in 1988 under the NAR government and was expanded under the PNM government, Trinidad and Tobago's economy has shifted from central planning to free market liberalization.  The shift to a market-driven economy--involving trade liberalization, divestment of state enterprises, and an emphasis on export-led growth--has affected every sector.Trinidad and Tobago's economy remains tied to the petroleum and natural gas industry, which accounts for more than 25% of GDP.  The state oil companies, together with foreign--primarily U.S.--partners, have pursued an aggressive oil exploration campaign since 1989.  Half of the country's crude oil, as well as most of its natural gas, is pumped by Amoco.  Natural gas is expected to replace oil as the basis of the economy by the end of this century.  Currently, gas is used to generate the country's electricity and provide much of the raw material and energy for the chemical, fertilizer, and other industries.Other successful Trinidadian enterprises have primarily been in services:  banks, insurance firms, and other financial institutions, as well as trading companies and distributors.  Tourism, once frowned upon as a neo-colonial enterprise, is targeted for greater development and is growing.  But tourism, primarily in Tobago, still accounts for only 2.5% of GDP.Trinidad and Tobago's agricultural sector, which generates 4% of GDP, is dominated by sugar.  But sugar cultivation is no longer profitable, and the state-owned agribusiness, Caroni Ltd., has diversified into rice, citrus, and aquaculture with limited success.  Rice production has more than doubled since 1988.Trinidad and Tobago purchases a broad range of goods and services abroad, nearly half of them from the U.S.--which, in turn, buys more than half of Trinidad and Tobago's exports.  As part of its program for economic reform, the government has privatized, in whole or in part, many state-owned companies.  Policy changes to make Trinidad and Tobago more attractive to foreign investors have been implemented, including revisions of tax and tariff rates and removal of import restrictions on nearly all products.According to the Trinidad and Tobago Central Bank, GDP growth averaged -1.5% in 1992-93, but 3% growth is projected for 1994 based on first-quarter results.  High debt-service payments have forced a tight monetary policy.  Official unemployment has hovered at about 20% for several years and is expected to rise in the short term as state enterprises are revamped to become more profitable and as local manufacturers face increased competition from abroad.  Inflation was about 11% in mid-1994.FOREIGN RELATIONSTrinidad and Tobago is a democracy that maintains extensive relations with its Caribbean neighbors and major North American and European trading partners.  As the most industrialized and one of the largest countries in the English-speaking Caribbean, Trinidad and Tobago has taken a leading role in the Caribbean Community and Common Market (CARICOM).  Trinidad and Tobago has led efforts to advance economic integration among CARICOM member states.In international forums, Trinidad and Tobago emphasizes its independent voting record.  After its 1962  independence, it joined the UN and the Commonwealth.  In 1967, it became the first from the Commonwealth to join the Organization of American States (OAS).As a member of CARICOM, Trinidad and Tobago strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.RELATIONS WITH THE UNITED STATESTrinidad and Tobago and the U.S. enjoy cordial relations.  A U.S. embassy was established at Port of Spain in 1962, replacing the former consulate general.  Shortly after Trinidad and Tobago's independence, the U.S. Agency for International Development (USAID) helped construct the John F. Kennedy College of Arts and Sciences at the University of the West Indies.The U.S. naval base at Chaguaramas, first set up through the 1941 Leased Bases Agreement with Great Britain, was turned over to Trinidad and Tobago in 1967 after a U.S. decision that the base was no longer required for hemispheric security.  Two remaining military facilities and a navigations aid station later were relinquished to the government.  In FY 1994, the U.S. provided $150,000 in security assistance, most of which was for counter-narcotics funding.A tax information exchange agreement was signed in 1989.  Trinidad and Tobago is a beneficiary of the Caribbean Basin Initiative (CBI).  Negotiations were completed in August 1994 for a bilateral investment treaty and an intellectual property rights agreement.Principal U.S. Embassy OfficialsAmbassador--Brian DonnellyDeputy Chief of Mission--James G. HuffEconomic Officer--Don ClevelandPolitical Officer--Lloyd MossConsul General--Sandy CampbellPublic Affairs Officer--Daniel McGarrieThe U.S. embassy in Trinidad and Tobago is located at 15 Queen's Park West, Port of Spain, (tel. [phone]). (###)</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND  NOTES:  TOGOOFFICIAL NAME: REPUBLIC  OF  TOGOPROFILEGeographyArea:  56,600 sq. km. (21,853 sq. mi.); slightly smaller than WestVirginia.  Cities:  Capital-Lome (pop. 1989 est. 600,000).  Terrain:Savannah and hills and coastal plain.Climate:  Tropical.PeopleNationality: Noun and adjective-Togolese (sing. and pl.).  Population(1989 est.):  3.4 million.  Annual growth rate (1988 est.):  3.3%Density:  61 sq. km.  Ethnic groups:  Ewe, Mina, Kabye, Cotocoli,Moba.  Religions:  Animist 50%, Christian 30%, Muslim 20%.Languages:  French (official), local (Ewe, Mina, Kabye).  Education:Attendance (1987 est.)-70% of age group 5-19  enrolled.  Literacy(1985 est.)-male 45%, female 20%.  Health:  Life expectancy (1986est.)-male 51 yrs., female 54 yrs.  Work force (125,000):Agriculture-75%-80%, Commerce-20%, Industry-less than 5%.GovernmentType:  Republic.  Independence:  April 27, 1960.  Constitution:Adopted 1980.Branches:  Executive-president (chief of state, head of sole politicalparty).  Legislative-National Assembly.  Judicial-Supreme Court.Subdivisions: 21 prefectures.Political party: Rassemblement du Peuple Togolais (RPT).  Suffrage:Universal adult.Central government budget (1989):  $289 million.National holiday:  January 13, Fete Nationale.Flag:  Alternating horizontal stripes, three green and two yellow, witha white star in a red field in upper left corner.EconomyGDP (1988 est.):  $1.36 billion.  Annual growth rate (1989 est.):  4%.Per capita income (1987 est.):  $390.Natural resources:  phosphates, limestone, marble.Agriculture (34% of 1988 GDP):  Products-yams, cassava, corn,millet, sorghum, cocoa, coffee, rice.Industry (18% of 1988 GDP):  Types-mining, manufacturing,construction, energy.Trade (1988):  Exports-$297 million: phosphates, textiles, cocoa,coffee, cotton.  Imports-$335 million: consumer goods, includingfoodstuffs, fabrics, clothes, vehicles, equipment.  Partners-France,U.K., F.R.G. [now Germany], Netherlands, Japan, Nigeria, Coted'Ivoire, People's Republic of China, U.S., Poland.Official exchange rate (April 1989):  Communaute Financiere Africaine(CFA) franc floats with French franc (50 CFA=1 FF).  Avg.U.S.$1=320 CFA.Fiscal year:  Calendar year.Membership in International OrganizationsUN, Organization of African Unity (OAU), Economic Community ofWest African States (ECOWAS), Entente Council, West AfricanMonetary Union.GEOGRAPHYTogo is bounded by Ghana, Burkina Faso, Benin, and the Gulf ofGuinea.  It stretches 579 kilometers (360 mi.) north from the Gulf andis only 160 kilometers (100 mi.) wide at the broadest point.  Thecountry consists primarily of two savannah plains regions separatedby a southwest-northwest range of hills (the Chaine du Togo).Togo's climate varies from tropical to savannah.  The south is humid,with temperatures ranging between 23 oC and 32 oC (75 oF-90 oF).In the north, temperature fluctuations are greater-from 18 oC to morethan 38 oC (65 oF-100 oF).PEOPLETogo's population of 3.4 million people (1989 estimate) is composedof about 21 ethnic groups.  The two major ones are the Ewe in thesouth and the Kabye in the north.Population distribution is very uneven due to soil and terrainvariations.  The population is generally concentrated in the south andalong the major north-south highway connecting the coast to theSahel.  Age distribution is also uneven; more than one-half of theTogolese are less than 15 years of age.  The ethnic groups of thecoastal region, particularly the Ewes (about 25% of the population),constitute the bulk of the civil servants, professionals, andmerchants, due in part to the former colonial administrations whichprovided greater infrastructure development in the south.  The Kabye(15% of the population) live on submarginal land and traditionallyhave emigrated south from their home area in the Kara region toseek employment.  Their historical means of social advancement hasbeen through the military and law enforcement forces, and theycontinue to dominate these services.Most of the southern peoples use the Ewe or Mina languages, whichare closely related and spoken in commercial sectors throughoutTogo.  French, the official language, is used in administration anddocumentation.  The public primary schools combine French withEwe or Kabye as languages of instruction, depending on the region.English is spoken in neighboring Ghana and is taught in Togolesesecondary schools.  As a result, many Togolese, especially in thesouth and along the Ghana border, speak some English.HISTORYThe Ewes moved into the area which is now Togo from the NigerRiver Valley between the 12th and 14th centuries.  During the 15thand 16th centuries, Portuguese explorers and traders visited thecoast.  For the next 200 years, the coastal region was a majorraiding center for Europeans in search of slaves, earning Togo andthe surrounding region the name "the Slave Coast."In a 1884 treaty signed at Togoville, Germany declared aprotectorate over a stretch of territory along the coast and graduallyextended its control inland.  Because it became Germany's onlyself-supporting colony, Togoland was known as its modelpossession.  In 1914, Togoland was invaded by French and Britishforces and fell after a brief resistance.  Following the war, Togolandbecame a League of Nations mandate divided for administrativepurposes between France and the United Kingdom.After World War II, the mandate became a UN trust territoryadministered by the United Kingdom and France.  During themandate and trusteeship periods, western Togo was administered aspart of the British Gold Coast.  In 1957, the residents of BritishTogoland voted to join the Gold Coast as part of the newindependent nation of Ghana.By statute in 1955, French Togo became an autonomous republicwithin the French Union, although it retained its UN trusteeshipstatus.  A legislative assembly elected by universal adult suffrage hadconsiderable power over internal affairs, with an elected executivebody headed by a prime minister responsible to the legislature.These changes were embodied in a constitution approved in an 1956referendum.  On September 10, 1956, Nicholas Grunitzky becameprime minister of the Republic of Togo.  However, due toirregularities in the plebiscite, a UN-supervised general election washeld in 1958 and won by Sylvanus Olympio.  On April 27, 1960, in asmooth transition, Togo severed its juridical ties with France, shed itsUN trusteeship status, and became fully independent under aprovisional constitution with Olympio as president.A new constitution in 1961 established an executive president,elected for 7 years by universal suffrage, and a weak nationalassembly.  The president was empowered to appoint ministers anddissolve the assembly, holding a monopoly of executive power.  Inelections that year, from which Grunitzky's party was disqualified,Olympio's party won 90% of the vote and all 51 National Assemblyseats, and he became Togo's first elected president.Four principal political parties existed in Togo:  the leftist Juvento(Togolese Youth Movement); the Union Democratique desPopulations Togolaises (UDPT); the Parti Togolais du Progres (PTP),founded by Grunitzky but having limited support; and the UniteTogolaise (UT), the party of President Olympio.  Rivalries betweenelements of these parties had begun as early as the 1940s, and theycame to a head with Olympio dissolving the opposition parties inJanuary 1962 ostensibly because of plots against the majority partygovernment.  Many opposition members, including Grunitzky, fled toavoid arrest.On January 13, 1963, President Olympio was assassinated in anuprising of army noncommissioned officers dissatisfied withconditions following their discharge from the French army.  Grunitzkyreturned from exile 2 days later to head a provisional governmentwith the title of prime minister.  On May 5, 1963, the Togoleseadopted a new constitution which reinstated a multiparty system,chose deputies from all political parties for the National Assembly,and elected Grunitzky as president and Antonine Meatchi as vicepresident.  Nine days later, President Grunitzky formed a governmentin which all parties were represented.During the next several years, the Grunitzky government's powerbecame insecure.  On November 21, 1966, an attempt to overthrowGrunitzky-inspired principally by civilian political opponents in the UTparty-was unsuccessful.  Grunitzky then tried to lessen his relianceon the army, but on January 13, 1967, Lt. Col. Etienne Eyadema(later Gen. Gnassingbe Eyadema) ousted President Grunitzky in abloodless military coup.  Political parties were banned, and allconstitutional processes were suspended.  The Committee ofNational Reconciliation ruled the country until April 14, whenEyadema assumed the presidency.  In late 1969, a single nationalpolitical party, the Assembly of the Togolese People (RPT), wascreated, and President Eyadema was elected party president onNovember 29, 1969.  In 1972, a national referendum, in whichEyadema ran unopposed, confirmed his role as the country'spresident.In late 1979, Eyadema declared a Third Republic and a transition toa more civilian rule with a mixed civilian and military cabinet.  Hegarnered 99.97% of the vote in uncontested presidential electionsheld in late 1979 and early 1980.  A new constitution also providedfor a national assembly to serve primarily as a consultative body.Eyadema was reelected to a third consecutive 7-year term inDecember 1986 with 99.5% of the vote in an uncontested election.On September 23, 1986, a group of some 70 armed Togolesedissidents crossed into Lome from Ghana in an attempt to overthrowthe Eyadema government.  With all Togolese armed forces unitsremaining loyal to the president, the incursion was halted after 2days of sporadic fighting.  The attempted overthrow resulted inseveral hundred casualties, with official figures listing 13 dissidentsand 23 Togolese soldiers and civilians killed.  As a result of bilateraltensions caused by the incursion, the Togo-Ghana border closed forseveral months.GOVERNMENT AND POLITICAL CONDITIONSThe present Togolese Government is a highly centralized, one-partysystem that rules by decree.  Since its creation in 1969, the rulingRPT has taken control of women's, youth, and labor groups bycreating party organs to replace or supervise existing organizations.Party committees in almost every village in the country often sponsorself-help development activities or promote political education.  In theofficial protocol of Togo, members of the political bureau of the RPTtake precedence over members of thecabinet.  All cabinet ministers are ex officio members of the party'scentral committee and are appointed by the president.  The role ofthe National Assembly is still evolving.  Presently, proposedlegislation is submitted by the Council of Ministers to the assemblyand becomes law after its pro forma approval.Recently the Togo Government has sought to improve its image.  InOctober 1987, Togo established a National Human RightsCommission for the investigation of complaints of human rightsabuses.  It is authorized to receive complaints from Togolese andforeign residents and has access to government and police files.  Itsprimary functions include promoting the rights of individuals-througheducation programs regarding human rights issues-and curtailingofficial abuses.  Also, following longstanding complaints ofcorruption, President Eyadema in late 1988 began a highly visibleanticorruption campaign leading to the ouster of several seniorgovernment officials.The Togolese judiciary is modeled on the French system.  Thehighest review court is the Supreme Court, headed by a presidentialappointee.  For administrative purposes, Togo is divided into 21prefectures, each having a prefect (governor) appointed by thepresident.Principal Government OfficialsPresident, Minister of National Defense-General GnassingbeEyademaMinister of Planning and Mines-Barry  Moussa BarqueMinister Delegate at the Presidency-Gbegnon AmegbohMinister of Interior and Security-General Yao AmegiMinister of Foreign Affairs and Cooperation-Yaovi AdodoMinister of Industry and State Enterprises-Koffi DjondoMinister of Finance and Economy-Komla AlipuiAmbassador to the United States-Ellom-Kodjo SchuppiusPermanent Representative to the United Nations-Koffi AdjoyiTogo maintains an embassy in the United States at 2208Massachusetts Ave., NW., Washington, D.C. 20008 (Tel.[phone]).ECONOMYSubsistence agriculture and commerce are the main economicactivities in Togo; the majority of the population depends onsubsistence agriculture.  Food and cash crop production employ themajority of the labor force and contribute about 34% to the grossdomestic product (GDP).  Coffee and cocoa traditionally have beenthe major cash crops for export, but cotton production has increasedto 31,000 metric tons in 1987 from 20,000 in 1985.  Despiteinsufficient rainfall in some areas, the Togolese Government largelyhas achieved its goal of self-sufficiency in food crops-corn, cassava,yams, sorghum, millet, and groundnuts.  Food crop production iscontrolled by small- and medium-sized farms; average farm size is1-3 hectares.Commerce is the most important economic activity in Togo afteragriculture, and Lome is an important regional trading center.  Itsport operates 24 hours a day, mainly transporting goods to theinland countries of Mali, Burkina Faso, and Niger.  Lome's "GrandMarche" is known for its entrepreneurial market women, who havea stronghold over many areas of trade, particularly in African cloth.In addition to textiles, Togo is an important center for re-export ofalcohol, cigarettes, perfume, and used clothing to neighboringcountries.In the industrial sector, phosphates are Togo's most importantcommodity, and the country has an estimated 130 tons of phosphatereserves.  The 3.2 million tons exported in 1988 accounted for 34%of exports as compared to 27% for agricultural products, with theremaining 39% representing all other exports and re-exports.  Togoalso has substantial limestone and marble deposits.Encouraged by the commodity boom of the mid-1970s, whichresulted in a four-fold increase in phosphate prices and sharplyincreased government revenues, Togo embarked on an overlyambitious program of large investments in infrastructure whilepursuing industrialization and development of state enterprises inmanufacturing, textiles, and beverages.  However, following declinesin world prices for commodities, its economy became burdened withfiscal imbalances, heavy borrowing, and unprofitable stateenterprises.Togo turned to the International Monetary Fund (IMF) for assistancein 1979, while simultaneously implementing a stringent adjustmenteffort with the help of a series of IMF standby programs, World Bankloans, and Paris Club debt rescheduling.  Under these programs, theTogolese Government introduced a series of austerity measures andmajor restructuring goals for the state enterprise and ruraldevelopment sectors.  These reforms were aimed at eliminating moststate monopolies, simplifying taxes and customs duties, curtailingpublic employment, and privatizing major state enterprises.  Havingsatisfied donors with its progress in fiscal discipline and reform, in1988 Togo was granted a fifth IMF standby agreement of $9.4 millionand a third World Bank Structural Adjustment Facility of $17.7 millionfor a 3-year period.Togo also returned to the Paris and London Clubs in 1988 andsucceeded in rescheduling a total of $150 million in outstanding debtover the next 16 years.  Despite many economic successes, theexternal debt service obligations of the government were 30.5% ofGDP in 1989.   External budgetary and development assistance willbe required in the short- to medium-term to finance expected budgetshortfalls and required public investment.To overcome the restrictions of a limited market and sparseresources, Togo supported wholeheartedly the formation of theEconomic Community of West African States (ECOWAS).  TheECOWAS Development Fund is located in Lome.  The trade andservice sectors account for most foreign investment, and there is aninfusion of funds from neighboring countries into Togolese banks.Togo actively seeks more capital investment, particularly in thecontinued privatization of former state enterprises.  Historically,France has been Togo's principal trading partner, although otherEuropean Community countries are important to Togo's economyand Japan is presently trying to penetrate the West African market.Total U.S. trade with Togo amounts to about $45 million annually.President Eyadema's government has improved the country'shighways, port, airport, utilities, and telecommunications network.New high rises and hotels are being built each year in Lome.  PeaceCorps volunteers, in cooperation with the government, haveconstructed many rural schools, wells, and clinics and have assistedagricultural and road improvement projects.  Togo's principalsources of development assistance have been France, the EuropeanDevelopment Fund, the Federal Republic of Germany, the UnitedStates, Japan, and the World Bank.  The volume of foreignassistance available to Togo in 1988 was an estimated $163 million($104 million bilateral and $59 million multilateral).FOREIGN  RELATIONSAlthough Togo's foreign policy is nonaligned, it has strong historicaland cultural ties with Western Europe, especially France and WestGermany.  Togo recognizes the People's Republic of China andNorth Korea.  It reestablished relations with Israel in 1987.Togo pursues an active foreign policy and participates in manyinternational organizations.  It is particularly active in West Africanregional affairs and in the Organization of African Unity.  In 1980,President Eyadema served as president of the Economic Communityof West African States.  Relations between Togo and neighboringstates, with one exception, are generally very good.  Ties to Ghanahave been strained due to border disagreements and the 1986armed incursion by Togolese dissidents residing in Ghana.DEFENSEThe small, professionally competent Togolese military is one of themost important institutions in the country.  It serves as the ultimatepower base for the president (who also acts as minister of defenseand chief of staff of the armed forces).  The Togolese Armed Forcestotal about 10,000, with most personnel in the land forces, includingarmored, paratroop, and rapid intervention divisions, as well as thePresidential Guard.  Togo also has a small navy with two coastalpatrol craft, and a small air force with fighter and transport aircraft.Historically, the Togolese Armed Forces have obtained equipmentfrom Eastern and Western sources and recently have sought tostandardize on major items, e.g., tanks from England and vehiclesfrom France and West Germany.  A number of French militaryofficers serve in advisory and technical capacities.  Many Togoleseofficers are trained in France; some also are trained in other foreigncountries in schools attended by a mix of African nationals.  The U.S.Government brings about six Togolese officers to the United Stateseach year under the International Military Education and Trainingprogram.U.S.-TOGOLESE RELATIONSTogo is a pro-Western, market-oriented country and the UnitedStates and Togo have had very good relations since itsindependence.  Although the United States has never been one ofTogo's major trade partners, the fall in the dollar/CFA exchange ratein recent years has helped make U.S. goods a little morecompetitive.  The largest U.S. exports to Togo generally have beenused clothing and scrap textiles.  Other important U.S. exportsinclude rice, wheat, shoes, tobacco products, and frozen poultryparts, and U.S. personal computers and other office electronics arebecoming more widely used.  U.S. imports from Togo rosedramatically in 1986, climbing to $27.1 million from only $12.3 millionin 1985.  The main reason for this increase was U.S. purchases ofTogolese phosphates in 1986 valued at $23.6 million.The Government of Togo, with the support of the Overseas PrivateInvestment Corporation (OPIC) and Agency for InternationalDevelopment (AID), is investigating the possibility of establishing anexport processing zone (EPZ) near the port of Lome.  The zonewould attract private investors interested in manufacturing, assembly,and food processing, primarily for the export market.U.S. economic aid to Togo includes about 100 Peace Corpsvolunteers, a $4-million PL 480 (Food for Peace) program, and adevelopment assistance program totaling $4 million for 1989.  Inaddition to Togolese officers' participation in U.S. military training,there is an active cultural exchange program, and several privateAmerican institutions assist Togo's university.Travel NotesClimate and clothing:  Bring warm weather clothing.  A light wrap isuseful in July and August.Customs:  U.S. citizens do not need a visa to enter the country forstays of under 3 months.  If remaining in Togo for more than 10days, an exit visa is required.  Innoculation against yellow fever isrequired unless the traveler is arriving from a noninfected area andis staying in Togo less than 2 weeks.  Malaria is a risk.  As healthrequirements change, please check latest information.Currency:  The CFA (Communaute Financiere Africaine-AfricanFinancial Community) franc is legal tender, and no ceiling is imposedon the number of CFA francs which may be brought into the country.The CFA franc is freely convertible into French francs.  However, forconversion into U.S. dollars, obtain permission from the governmentagency handling foreign exchange.  Dollars and travelers checks canbe exchanged in Lome.Health:  Avoid tap water and unwashed fruits and vegetables.  Localmedical services are limited.Telecommunications:  Telecommunications improved dramaticallywhen a new satellite ground station came into service in 1981.  It ispossible to directly dial many countries (including the United States)from Togo, and telecommunications services continue to beupgraded.Transportation:  Air travel is the best way to get to Lome, which hasdaily international flights to and from Europe and major West Africancities.  Uncertain road conditions or frontier difficulties can complicateautomobile travel to Benin other than via the direct road from Lometo Cotonou.  Accra is an easy 3-hour drive from Lome, but theborder has been closed occasionally.  Lagos is about 5 hours byroad, depending on border crossing formalities.  Taxis are availablein Lome and other urban areas.Gross Domestic Product, 1988Commerce, tourism, transportation and communication, and services- 48%Agriculture - 34%Phosphate mining - 10%Other mining, construction, manufacturing, and energy  - 8%Source:  US Department of Commerce, Foreign Economic Trendsand Their Implications for the United States, May 1988Published by the United States Department of State --  Bureau ofPublic Affairs  -- Office of  Public Communication --  Washington,D.C.February 1990 -- Editor:  Marilyn J. Bremner. Department of StatePublication 8325 - Background Notes Series  -- This material is in thepublic domain and may be reprinted without permission; citation ofthis source is appreciated. For sale by the Superintendent ofDocuments, U.S. Government Printing Office, Washington, D.C.20402.</text>
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        <text>U.S. Department of StateBackground Notes:  Thailand, November 1995Bureau of Public AffairsNovember 1995Official Name: Kingdom of Thailand  PROFILE Geography Area: 513,115 sq. km. (198,114 sq. mi.): about the size of Texas. Cities: Capital--Bangkok (pop. 9 million est.). Other cities--Chiang Mai (160,000), Hat Yai (140,000), Nakon Ratchasima (190,000). Terrain: Densely populated central plain; a northeastern plateau; mountain range in the west; southern isthmus joins the land mass with Malaysia. Climate: Tropical monsoon. People Nationality: Noun and adjective--Thai(s). Population: 59 million. Annual growth rate: 1.4%. Ethnic groups: Thai 89%, other 11%. Religion: Buddhist 95%,  Muslim 4%, Christian, Hindu, other. Languages: Thai (official language); English is the second language of the elite; regional dialects. Education: Years compulsory--nine. Literacy--93%. Health: Infant mortality rate (1993)--7/1,000. Life expectancy (1994)--66 years male, 71 years female. Government Type: Constitutional monarchy. Constitution: December 22, 1978; new constitution approved December 7, 1991; amended January 4, 1995. Independence: Never colonized, traditional founding date 1238. Branches: Executive--king (chief of state), prime minister (head of government). Legislative--National Assembly (bicameral). Judicial--three levels of courts;  highest is Supreme Court (Sarndika). Administrative subdivisions: 76 provinces subdivided into 767 districts. Political parties: Multiparty system; Communist Party is prohibited. Suffrage: Universal at 18. Economy GDP (1994): $143 billion. Annual growth rate (1994): 8.7%. Per capita income (1994): $2,400. Natural resources: Tin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, fluorite. Agriculture (10% of GDP): Products--rice, tapioca, rubber, corn, sugarcane, coconuts, soybeans. Industries: Tourism, textiles, garments, agricultural processing, cement, integrated circuits, jewelry. Trade (1994): Exports--$45 billion: textiles and footwear, fishery products, computers and parts, jewelry, rice, tapioca products, integrated circuits, rubber. Major markets--U.S., Japan, Singapore, Hong Kong, EU. Imports--$54 billion: machinery and parts, petroleum, iron and steel, chemicals, vehicles and parts, jewelry, fish preparations, electrical appliances, fertilizers and pesticides. Major suppliers--Japan, U.S., Singapore, Taiwan, Germany, South Korea, EU. U.S.-THAI RELATIONS Since World War II, the United States and Thailand have developed close relations, as reflected in several bilateral treaties and by both countries' participation in UN multilateral activities and agreements. The principal bilateral arrangement is the 1966 Treaty of Amity and Economic Relations, which facilitates U.S. and Thai companies' economic access. Other important agreements address civil uses of atomic energy, sales of agricultural commodities, investment guarantees, and military and economic assistance.The United States and Thailand are among the signatories of the 1954 Manila pact of the former Southeast Asia Treaty Organization (SEATO). Article IV(1) of this treaty provides that, in the event of armed attack in the treaty area (which includes Thailand), each member would "act to meet the common danger in accordance with its constitutional processes."  Despite the dissolution of the SEATO in 1977, the Manila pact remains in force and, together with the Thanat-Rusk communique of 1962, constitutes the basis of U.S. security commitments to Thailand. Thailand continues to be a key security ally in Asia, along with Australia, Japan, and South Korea.Thailand's stability and independence are important to the maintenance of peace in the region. Economic assistance has been extended in various fields, including rural development, health, family planning, education, and science and technology. However, the bilateral aid program is now being phased out, as Thailand becomes more developed. The U.S. Peace Corps in Thailand has about 185 volunteers, almost half of whom teach English. The remainder are engaged in education, agricultural and rural development, and health programs.Thailand has received U.S. military equipment, essential supplies, training, and assistance in the construction and improvement of facilities and installations since 1950. In recent years, U.S. security assistance has consisted of military training programs carried out primarily in the U.S. A small U.S. military advisory group in Thailand oversees the delivery of equipment to the Thai armed forces and the training of Thai military personnel in its use and maintenance. As part of their mutual defense cooperation over the last decade, Thailand and the United States have developed a vigorous joint military exercise program, which engages all the services of each nation and now averages 40 joint exercises per year.Thailand is a key route for Golden Triangle--the intersection of Burma, Laos, and Thailand--heroin trafficking to international markets, including the United States. While Thailand is no longer a significant opium producer, money laundering, police and military corruption, and a continuing narcotics flow out of Burma have hindered efforts to limit its role as a transfer point.The United States and Thailand work together and with the United Nations on a broad range of programs to halt the flow of narcotics. A memorandum of understanding was signed in 1971 affirming U.S.-Thai cooperation, resulting in a strengthened Thai enforcement program. With U.S. support, Thailand has a good record in crop control, law enforcement, and demand reduction but would benefit from greater efforts to stem money laundering.After a 1991 coup in Thailand, the U.S. made clear its full support for a quick return to a democratically elected government. As required by law, U.S. military and economic assistance to Thailand was suspended, with the exception of counternarcotics programs. However, after the democratic elections in September 1992, assistance was restored.  Trade and Investment While many areas of agreement strengthen understanding and cooperation between the United States and Thailand, U.S. calls for Thailand to play a role in the world economic structure proportionate with its industrial diversification and growing economic importance have led to trade frictions and strains on otherwise excellent bilateral relations.Thailand has made considerable progress in improving legal protections for intellectual property. In recognition of this progress and following passage of a new copyright act in 1994, Thailand was removed from the priority watch list. Thailand remains on the watch list, however, and the U.S. Government continues to work with Thailand to secure additional improvements in its legal regime and to encourage effective enforcement of existing legislation.The United States also has an ongoing dialogue with Thailand on promoting worker rights. U.S. legislation links worker rights with U.S. trade policy and continues to seek improved access for U.S. products and services in the Thai market. Principal U.S. Embassy Officials Charge d'Affaires--Ralph L. Boyce, Jr. Political Affairs Counselor--Barbara Tobias Economic Affairs Counselor--David R. Moran Public Affairs Counselor--William Kiehl Consul General--Thomas P. Furey  The U.S. embassy in Thailand is located at 95 Wireless Road, Bangkok (tel. [phone]). There is a consulate at Chiang Mai, Vidhyanond Road (tel. [phone]). GOVERNMENT AND POLITICAL CONDITIONS Following a 1932 revolution which imposed constitutional limits on the monarchy, Thai politics were dominated for half a century by a military and bureaucratic elite. Changes of government were effected primarily by means of a long series of mostly bloodless coups.Beginning with a brief experiment in democracy during the mid-1970s, civilian democratic political institutions slowly gained greater authority, culminating in 1988 when Chatichai Choonavan--leader of the Thai Nation Party--assumed office as the country's first democratically elected prime minister in more than a decade. Three years later, yet another bloodless coup ended his term.Shortly afterward, the military appointed Anand Panyarachun, a businessman and former diplomat, to head a largely civilian interim government and promised to hold elections in the near future. However, following inconclusive elections, former army commander Suchinda Kraprayoon was appointed prime minister.Thais reacted to the appointment by demanding an end to military influence in government. Demonstrations were violently suppressed by the military; in May 1992, soldiers killed at least 50 protesters.Domestic and international reaction to the violence forced Suchinda to resign, and the nation once again turned to Anand Panyarachun, who was named interim prime minister until new elections on September 13, 1992. In the subsequent elections, the political parties that had opposed the military in May 1992 won by a narrow majority, and Chuan Leekpai, a leader of the Democratic Party, became Thailand's 20th prime minister. Following the dissolution of parliament on May 19, 1995, new elections were held July 2. The Thai Nation Party won the largest number of parliamentary seats, and its leader, Banharn Silpa-Archa, became Thailand's 21st prime minister.The king has little direct power under the constitution but is a symbol of national identity and unity. The present monarch--who has been on the throne for fifty years--commands enormous popular respect and moral authority, which he has used on occasion to resolve political crises that have threatened national stability.Thailand's legal system blends principles of traditional Thai and Western laws; Koranic law is applied in the far south, where Muslims constitute the majority of the population. The Supreme Court is the highest court of appeals, and its judges are appointed by the king.Thailand's 76 provinces include the metropolis of greater Bangkok. Bangkok's governor is popularly elected, but those of the remaining provinces are career civil servants appointed by the ministry of interior. Principal Government Officials Chief of State--Bhumibol Adulyadej Prime Minister--Banharn Silpa-Archa Minister of Foreign Affairs--Kasem S. Kasemsri Ambassador to the U.S.--vacant Charge d'Affaires--Akrasid Amatayakul Ambassador to the UN--Nitya Pibulsonggram  Thailand maintains an embassy in the United States at 1024 Wisconsin Ave. NW, Washington DC 20007  (tel. [phone]). Consulates are located in New York City, Chicago, and Los Angeles.TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).  Upon their arrival in a country, U.S. citizens are encouraged to register at the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you en route in case of an emergency. Further Electronic Information: Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line. Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet: Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone]. Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone]. National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ==============================  Background Notes Series -- Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC   This information is in the public domain and may be reproduced without permission; citation of this source is appreciated.  (###)</text>
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        <text>BACKGROUND NOTES:  TANZANIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEMAY 1994Official Name:  United Republic of TanzaniaECONOMYTanganyika/TanzaniaSubstantial measures have been taken to liberalize the Tanzanian economy alongmarket lines and encourage both foreign and domestic private investment.In early 1986, the Government of Tanzania embarked on an adjustment program todismantle state economic controls and encourage more active participation ofthe private sector in the economy.  The program included a comprehensivepackage of policies which reduced the budget deficit and improved monetarycontrol, substantially depreciated the overvalued exchange rate, liberalizedthe trade regime, removed most price controls, eased restrictions on themarketing of food crops, freed interest rates, and initiated a restructuringof the financial sector.With the establishment of an institutional framework for the privatization ofparastatal enterprises, reduction in this costly and inefficient area has alsobegun.The reform program increased external resources, food production, and food andnon- traditional exports.  During the 1986-92 period, both GDP and exportsincreased at an average of about 4% per year, after near GDP stagnation in1993.  The government also launched programs to rehabilitate keyinfrastructure (roads, railways, and ports).However, Tanzania's economy remains overwhelmingly donor dependent, with asmuch as 40% of GDP consisting of external aid.  Furthermore, the public sectorstill accounts for more than 70% of GDP, and periodic foreign exchangeshortages and an inefficient bureaucracy and legal system hamper businessenterprise.Agriculture dominates the economy, providing over 60% of GDP and 85% ofemployment.  Cash crops, including coffee, tea, cotton, cashews, sisal,cloves, and pyrethrum make up 48% of export earnings.  The volume of all majorcrops, both cash and goods, which have been marketed through official channelshas increased over the past few years, but large amounts of produce neverreach the market.  Poor pricing and unreliable cash flow to farmers continueto frustrate the agricultural sector.Accounting for less than 10% of GDP, Tanzania's industrial sector is one ofthe smallest in Africa.  It grew 12% during the late 1980s but continues toshow overall signs of decline.  It has been hit hard recently by persistentpower shortages caused by low rainfall in the hydroelectric dam catchmentarea, a condition compounded by years of neglect and bad management at thestate-controlled electric company.Main industrial activities include producing raw materials, importsubstitutes, and processed agricultural products.  Foreign exchange shortagesand mismanagement continue to deprive factories of much needed spare parts andhave reduced factory capacity to less than 30%.Despite Tanzania's past record of political stability, an unattractiveinvestment climate has discouraged foreign investment.  Government steps toimprove that climate include redrawing tax codes, floating the exchange rate,licensing foreign banks, and creating an investment promotion center to cutred tape.  In terms of mineral resources and the largely untapped tourismsector, Tanzania could become a viable and attractive market for U.S.  goodsand services.ZanzibarZanzibar's economy is based primarily on the production of cloves (90% grownon the island of Pemba), the principal foreign exchange earner.  Exports havesuffered recently with the downturn in the clove market.  Tourism is anincreasingly promising sector, and a number of proposals are being consideredfor new hotels and resorts.The Government of Zanzibar has been more aggressive than its mainlandcounterpart in instituting economic reforms and has legalized foreign exchangebureaus on the islands.  This has loosened up the economy and dramaticallyincreased the availability of consumer commodities.  Furthermore, withexternal funding, the government plans to make the Port of Zanzibar a freeport.  Rehabilitation of current port facilities and plans to extend thesefacilities will be the precursor to the free port.  The island's manufacturingsector is limited mainly to import substitution industries, such ascigarettes, shoes, and processed agricultural products.  In 1992, thegovernment designated two export-producing zones and encouraged thedevelopment of offshore financial services.  Zanzibar still imports much ofits staple requirements, petroleum products, and manufactured articles.FOREIGN RELATIONSAlong with many other Third World nations, Tanzania based its foreign policyon the concept of nonalignment with both major power blocs.  Former PresidentNyerere defined nonalignment as the right of small nations to determine theirown policies in their own interests and to have an influence in world affairsthat accords with the right of all people to live equally.Tanzania played an important role in several regional and internationalorganizations including the Non-Aligned Movement, the front- line states,Southern Africa Development Coordination Conference, the Organization ofAfrican Unity (OAU), the United Nations, and its specialized and relatedagencies.As one of Africa's best-known elder statesmen, Nyerere has been involved inmany of these organizations, particularly as former chairman of the sixfront-line states concerned with southern Africa and as former chairman of theOAU (1984-85).  Tanzania supports the tenets of majority rule andself-determination for all of southern Africa and has been a principalsupporter of liberation groups in that part of the continent.In recent years, Tanzania has joined with many other developing countries tosupport a new international economic order.  Tanzania advocates measures tostabilize international commodity prices and provide balance-of- paymentssupport for countries facing unfavorable terms of trade.  It acknowledges theneed for structural adjustment in developing economies but also stresses theimportance of developed country cooperation in the transfer of resources andtechnology, debt settlement, and increasing access to primary commoditymarkets.Tanzania enjoys particularly close ties with neighboring Uganda, Zambia, andMozambique.  In 1977, the Kenyan, Tanzanian, and Ugandan partnership in theEast African Community, established 10 years earlier, was dissolved.  Thebreakup resulted in suspension of nearly all trade between Tanzania and Kenyaand closure of the border to most tourist travel.  The border was re-opened in1984, and relations with Kenya have improved significantly.U.S.-TANZANIAN RELATIONSThe United States enjoys cordial relations with the United Republic ofTanzania.  The United States has historically sought to assist Tanzania'seconomic and social development through bilateral and regional programsadministered by the U.S.  Agency for International Development (USAID).  From1953 to 1992, total US economic assistance was $480 million in loans, grants,and PL 480 Title II (Food for Peace).In the 1970s, USAID focused on strengthening national institutions inagriculture and, to a lesser degree, on health.  In agriculture, food cropsand livestock were emphasized.  Health care assistance has supported labordevelopment, particularly training for maternal and child care health aides.Training is an important part of the USAID program, and almost 2,000Tanzanians have received either long- or short-term training, primarily in theUnited States.The AID program of the 1990s, however, is emphasizing improving the ruraltransportation network, private enterprise development, and family planning.The Peace Corps program, revitalized in 1979, provides assistance in wildlifemanagement, teaching, forestry, and agricultural mechanics on both themainland and on Zanzibar.  There are about 80 volunteers.Principal U.S.  Embassy Officers Ambassador--Peter Jon de Vos Deputy Chief ofMission--Steven Browning Director, USAID--Dale B.  Pfeiffer Public AffairsOfficer (USIS)--Gregory Lynch Peace Corps Director--James E.  MayerThe U.S.  embassy in Tanzania is located at 36 Laibon Road, Dar es Salaam.The consulate in Zanzibar was closed on June 15, 1979.Travel NotesCustoms:  Visas and inoculations against cholera and yellow fever are requiredfor entry.Climate and clothing:  Lightweight, tropical clothing is worn year-round,although in the cooler season (June-September), a light wrap is useful in theevenings.  Due to cultural sensitivities, conservative dress is recommended.Health:  Community sanitation is poor.  Tapwater is not potable.  Boil andfilter water, and prepare fruits and vegetables carefully.Telecommunications:  Direct-dial telephone and cable services are available tothe United Kingdom, United States, and other parts of the world.  Tanzania iseight standard time zones ahead of eastern standard time and does not observedaylight-saving time.Transportation:  Dar es Salaam is served by several international airlines.Taxis are available 24 hours at certain locations; fare should be agreed uponin advance.  Buses and trains generally are overcrowded.  Traffic moves on theleft.Further InformationAvailable from the Superintendent of Documents, U.S.  Government PrintingOffice, Washington, DC 20402:American University.  Tanzania:  A Country Study.  Key Officers of ForeignService Posts (Guide for Businesses).For information on economic trends, commercial development, production, traderegulations, and tariff rates, contact the International Trade Administration,U.S.  Department of Commerce, Washington, DC 20230.Published by the United States Department of State -- Bureau of Public Affairs-- Office of Public Communication -- Washington, DC May 1994 -- ManagingEditor:  Peter KnechtDepartment of State Publication 8097 -- Background Notes Series Contents ofthis publication are not copyrighted unless indicated.  If not copyrighted,the material may be reproduced without consent; citation of the publication asthe source is appreciated.  Permission to reproduce any copyrighted material(including photos and graphics) must be obtained from the original source.For sale by the Superintendent of Documents -- U.S.  Government PrintingOffice, Washington, DC 20402.</text>
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        <text>BACKGROUND NOTES:  TANZANIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEMAY 1994Official Name:  United Republic of TanzaniaPROFILEGeographyArea:  Mainland--945,000 sq.  km.  (378,000 sq.  mi.); slightly smaller thanNew Mexico and Texas combined.  Zanzibar--1,658 sq.  km.  (640 sq.  mi.).Cities:  Capital--Dar es Salaam (pop.  2 million); Dodoma (futurecapital--200,000), Zanzibar Town (160,000), Tanga (190,000), Mwanza (225,000),Arusha (140,000).  Terrain:  Varied.  Climate:  Varies from tropical to aridto temperate.PeopleNationality:  Noun and adjective--Tanzanian(s); Zanzibari(s).  Population:Mainland--25 million.  Zanzibar-- 800,000.  Ethnic groups:  More than 120.Religions:  Muslim 35%, indigenous beliefs 35%, Christian 30%.  Languages:Kiswahili (official), English.  Education:  Attendance--86% (primary).Literacy--90%.  Health:  Infant mortality rate--110/1,000.  Lifeexpectancy--53 yrs.  Work force:  Agriculture--85%.  Industry, commerce, andgovernment--15%.GovernmentType:  Republic.  Independence:  Tanganyika 1961, Zanzibar 1963, union formed1964.  Constitution:  1982.  Branches:  Executive--president (chief of stateand commander in chief), prime minister, first vice-president, and secondvice-president (also president of Zanzibar).  Legislative-- unicameralNational Assembly (for the union), House of Representatives (for Zanzibaronly).  Judicial--mainland:  Court of Appeals, High Courts, ResidentMagistrate Courts, district courts, primary courts.  Zanzibar:  High Court,people's district courts, kadhis courts (Islamic courts).  Political parties:Chama Cha Mapinduzi -- Revolutionary Party, Party for Democracy andDevelopment, Mageuzi National Convention for Construction and Reform, CivicUnited Front, Union for Multi-party Democracy, National League for Democracy.Suffrage:  Universal at 18.  Administrative subdivisions:  25 regions (20 onmainland, 3 on Zanzibar, 2 on Pemba).  Flag:  Diagonal yellow-edged black bandfrom lower left to upper right; green field at upper left, blue field at lowerright.EconomyGDP (1992):  $3.6 billion.  Annual growth rate:  3.6% (est.  1991).  Percapita income:  $260.  Natural resources:  Hydroelectric potential, coal,iron, gemstone, gold, natural gas, nickel, diamonds.  Agriculture (60% ofGDP):  Products--coffee, cotton, tea, tobacco, cloves, sisal, cashew nuts,maize.  Industry (9% of GDP):  Types--textiles, agribusiness, lightmanufacturing, oil refining, construction.  Trade:  Exports--$440 million:coffee, cotton, tea, sisal, diamonds, cashew nuts, tobacco and cloves.  Majormarkets--U.K., Germany, India, Japan, Italy, and Far East.  Imports--$1.4billion:  petroleum, consumer goods, machinery and transport equipment, usedclothing, chemicals, pharmaceuticals.  Major suppliers-- U.K., Germany, Japan,India, Italy, U.S.  Official exchange rate:  335 Tanzanian shillings=U.S.$1.PEOPLEPopulation distribution in Tanzania is extremely uneven.  Density varies from1 person per square kilometer (3/sq.  mi.) in arid regions to 51 per squarekilometer (133/sq.  mi.) in the mainland's well-watered highlands and 134 persquare kilometer (347/sq.  mi.) on Zanzibar.  More than 80% of the populationis rural.  Dar es Salaam is the capital and largest city; Dodoma, located inthe center of Tanzania, has been designated to become the new capital by theend of the decade.The African population consists of more than 120 ethnic groups, of which theSukuma, Haya, Nyakyusa, Nyamwezi, and Chaga have more than 1 million members.The majority of Tanzanians, including such large tribes as the Sukuma and theNyamwezi, are of Bantu stock.  Groups of Nilotic or related origin include thenomadic Masai and the Luo, both of which are found in greater numbers inneighboring Kenya.  Two small groups speak languages of the Khoisan familypeculiar to the Bushman and Hottentot peoples.  Cushitic-speaking peoples,originally from the Ethiopian highlands, reside in a few areas of Tanzania.Although much of Zanzibar's African population came from the mainland, onegroup known as Shirazis traces its origins to the island's early Persiansettlers.  Non-Africans residing on the mainland and Zanzibar account for 1%of the total population.  The Asian community-- including Hindus, Sikhs, Shi'aand Sunni Muslims, and Goans--has declined by 50% in the past decade to 50,000on the mainland and 4,000 on Zanzibar.  An estimated 70,000 Arabs and 10,000Europeans reside in Tanzania.Each ethnic group has its own language, but the national language isKiswahili, a Bantu-based tongue with strong Arabic borrowings.HISTORYTanganyika/Tanzania Northern Tanganyika's famed Olduvai Gorge has providedrich evidence of the area's prehistory, including fossil remains of some ofhumanity's earliest ancestors.  Discoveries suggest that East Africa may havebeen the site of human origin.Little is known of the history of Tanganyika's interior during the earlycenturies of the Christian era.  The area is believed to have been inhabitedoriginally by ethnic groups using a click-tongue language similar to that ofSouthern Africa's Bushmen and Hottentots.  Although remnants of these earlytribes still exist, most were gradually displaced by Bantu farmers migratingfrom the west and south and by Nilotes and related northern peoples.  Some ofthese groups had well-organized societies and controlled extensive areas bythe time the Arab slavers, European explorers, and missionaries penetrated theinterior in the first half of the 19th century.The coastal area first felt the impact of foreign influence as early as the8th century, when Arab traders arrived.  By the 12th century, traders andimmigrants came from as far away as Persia (now Iran) and India.  They built aseries of highly developed city and trading states along the coast, theprincipal one being Kilwa, a settlement of Persian origin that held ascendancyuntil the Portuguese destroyed it in the early 1500s.The Portuguese navigator Vasco da Gama explored the East African coast in 1498on his voyage to India.  By 1506, the Portuguese claimed control over theentire coast.  This control was nominal, however, because the Portuguese didnot colonize the area or explore the interior.  Assisted by Omani Arabs, theindigenous coastal dwellers succeeded in driving the Portuguese from the areanorth of the Ruvuma River by the early 18th century.  Claiming the coastalstrip, Omani Sultan Seyyid Said (1804-1856) moved his capital to Zanzibar in1841.European exploration of the interior began in the mid-19th century.  TwoGerman missionaries reached Mt.  Kilimanjaro in the 1840s.  British explorersRichard Burton and John Speke crossed the interior to Lake Tanganyika in 1857.David Livingstone, the Scottish missionary-explorer who crusaded against theslave trade, established his last mission at Ujiji, where he was "found" byHenry Morton Stanley, an Anglo- American journalist-explorer, who had beencommissioned by the New York Herald to locate him.German colonial interests were first advanced in 1884.  Karl Peters, whoformed the Society for German Colonization, concluded a series of treaties bywhich tribal chiefs in the interior accepted German "protection." Prince Ottovon Bismarck's government backed Peters in the subsequent establishment of theGerman East Africa Company.In 1886 and 1890, Anglo-German agreements were negotiated that delineated theBritish and German spheres of influence in the interior of East Africa andalong the coastal strip previously claimed by the Omani sultan of Zanzibar.In 1891, the German Government took over direct administration of theterritory from the German East Africa Company and appointed a governor withheadquarters at Dar es Salaam.Although the German colonial administration brought cash crops, railroads, androads to Tanganyika, European rule provoked African resistance, culminating inthe Maji Maji rebellion of 1905-07.  The rebellion, which temporarily united anumber of southern tribes and ended only after an estimated 120,000 Africanshad died from fighting or starvation, is considered by most Tanzanians to havebeen one of the first stirrings of nationalism.German colonial domination of Tanganyika ended after World War I when controlof most of the territory passed to the United Kingdom under a League ofNations mandate.  After World War II, Tanganyika became a UN trust territoryunder British control.  Subsequent years witnessed Tanganyika moving graduallytoward self-government and independence.In 1954, Julius K.  Nyerere, a schoolteacher who was then one of only twoTanganyikans educated abroad at the university level, organized a politicalparty--the Tanganyika African National Union (TANU).  TANU-supportedcandidates were victorious in the Legislative Council elections of September1958 and February 1959.  In December 1959, the United Kingdom agreed to theestablishment of internal self-government following general elections to beheld in August 1960.  Nyerere was named chief minister of the subsequentgovernment.In May 1961, Tanganyika became autonomous, and Nyerere became prime ministerunder a new constitution.  Full independence was achieved on December 9, 1961.Mr.  Nyerere was elected President when Tanganyika became a republic withinthe Commonwealth a year after independence.ZanzibarAn early Arab/Persian trading center, Zanzibar fell under Portuguesedomination in the 16th and early 17th centuries but was retaken by Omani Arabsin the early 18th century.  The height of Arab rule came during the reign ofSultan Seyyid Said, who encouraged the development of clove plantations, usingthe island's slave labor.The Arabs established their own garrisons at Zanzibar, Pemba, and Kilwa andcarried on a lucrative trade in slaves and ivory.  By 1840, Said hadtransferred his capital from Muscat to Zanzibar and established a ruling Arabelite.  The island's commerce fell increasingly into the hands of traders fromthe Indian subcontinent, whom Said encouraged to settle on the island.Zanzibar's spices attracted ships from as far away as the United States.  AU.S.  consulate was established on the island in 1837.  The United Kingdom'searly interest in Zanzibar was motivated by both commerce and thedetermination to end the slave trade.  In 1822, the British signed the firstof a series of treaties with Sultan Said to curb this trade, but not until1876 was the sale of slaves finally prohibited.The Anglo-German agreement of 1890 made Zanzibar and Pemba a Britishprotectorate.  British rule through a sultan remained largely unchanged fromthe late 19th century until after World War II.Zanzibar's political development began in earnest after 1956, when provisionwas first made for the election of six non-government members to theLegislative Council.  Two parties were formed:  the Zanzibar Nationalist Party(ZNP), representing the dominant Arab and Arabized minority, and theAfro-Shirazi Party (ASP), led by Abeid Karume and representing the Shirazisand the African majority.The first elections were held in July 1957, and the ASP won three of the sixelected seats, with the remainder going to independents.  Following theelection, the ASP split; some of its Shirazi supporters left to form theZanzibar and Pemba People's Party (ZPPP).  The January 1961 election resultedin a deadlock between the ASP and a ZNP-ZPPP coalition.On April 26, 1964, Tanganyika united with Zanzibar to form the United Republicof Tanganyika and Zanzibar, renamed the United Republic of Tanzania on October29.United Republic of TanzaniaTANU and the Afro-Shirazi Party of Zanzibar were merged into a single party,Chama Cha Mapinduzi (CCM Revolutionary Party), on February 5, 1977.  On April26, 1977, the union of the two parties was ratified in a new constitution.The merger was reinforced by principles enunciated in the 1982 unionconstitution and reaffirmed in the constitution of 1984.The elections that followed the granting of self-government in June 1963produced similar results.  Zanzibar received its independence from the UnitedKingdom on December 19, 1963, as a constitutional monarchy under the sultan.On January 12, 1964, the African majority revolted against the sultan, and anew government was formed with the ASP leader, Abeid Karume, as president ofZanzibar and chairman of the Revolutionary Council.  Under the terms of itspolitical union with Tanganyika in April 1964, the Zanzibar Governmentretained considerable local autonomy.Abeid Karume was named First Vice President of the union government, a post heheld until his assassination in April 1972.  Aboud Jumbe, a fellow member ofthe ASP and the Revolutionary Council, was appointed to succeed Karume.  In1981, 32 persons were selected to serve in the Zanzibar House ofRepresentatives.  The election marked the first poll since the 1964revolution.  In 1984, Jumbe resigned and was replaced by Ali Hassan Mwinyi asboth President of Zanzibar and First Vice President of Tanzania.  In theelection of 1985, Mwinyi was elected President of the United Republic ofTanzania; Idris Wakil was elected President of Zanzibar and Second VicePresident of Tanzania.  In 1990, Wakil retired and was replaced as Presidentof Zanzibar by Salmin Amour.In 1977, Nyerere merged TANU with the Zanzibar ruling party, the ASP, to formthe CCM as the sole ruling party in both parts of the union.  The CCM was tobe the sole instrument for mobilizing and controlling the population in allsignificant political or economic activities.  He envisioned the party as a"two- way street" for the flow of ideas and policy directives between thevillage level and the government.President Nyerere handed over power to his successor, President Ali HassanMwinyi, in 1985.  Nyerere retained his position as Chairman of the rulingparty for five more years, but in 1990, this post also was passed on toMwinyi, who started his last five-year term at that time.  Nyerere retiredfrom formal politics but remains influential behind the scenes.In 1990, in response to the currents of democracy sweeping much of the world,Tanzania began making substantial changes to its political system (see below).GOVERNMENTTanzania is changing from a single-party state with a strong central executiveto a more democratic multi-party system.  Currently, the president is assistedby two vice-presidents.  One of the vice- presidents serves as prime ministerand carries an administrative portfolio.  Selected from the National Assemblybody, this vice-president is the government's leader in the National Assembly.The other vice-president functions as President of Zanzibar and must be aZanzibari citizen.  The president and the National Assembly are electedconcurrently by direct popular vote for five- year terms.  If the presidentdissolves the assembly, he or she must stand for election as well.  Thepresident indicated in his New Year's Eve speech on December 31, 1991, thatthe current parliament would serve out its term, due to expire in 1995.  Thepresident must select the cabinet from among National Assembly members but hasthe power to appoint up to 15 members of the assembly.The unicameral National Assembly has 255 members, 180 of whom are elected fromthe mainland and Zanzibar.  At present, all are members of the CCM.  Theremaining members were appointed by the government and various "massorganizations" associated with the party.  Assembly actions are valid forZanzibar only in specifically designated union matters.  Zanzibar's ownelected House of Representatives has jurisdiction over all non-union matters.Tanzania has a five-level judiciary combining the jurisdictions of tribal,Islamic, and British common law.  Appeal is from the primary courts throughthe district courts, resident magistrate courts, to the high courts, and Courtof Appeals.  Judges are appointed by the Chief Justice, except those for theCourt of Appeals and the High Court, who are appointed by the president.  TheZanzibari court system parallels the legal system of the union, and all casestried in Zanzibari courts, except for those involving constitutional issuesand Islamic law, can be appealed to the Court of Appeals of the union.For administrative purposes, Tanzania is divided into 25 regions--20 on themainland, 3 on Zanzibar, and 2 on Pemba.  Since 1972, a decentralizationprogram on the mainland has worked to increase the authority of the regions.On July 1, 1983, the government reinstated 99 district councils to furtherincrease local authority.  Of the 99 councils operating in 86 districts, 19are urban and 80 are rural.  The 19 urban units are classified further as city(Dar es Salaam), municipal (Arusha, Dodoma, Tanga), and town councils (theremaining 15 communities).On the mainland, regional commissioners are also ex-official members of theNational Assembly.  The regional and area commissioners are assisted byappointed development directors and other functional managers, who form acouncil charged with administering the region or district in closecollaboration with CCM party officials.  Following the 1982 Party Congress,two new positions--regional and district party secretary--were created toassist in coordinating the activities between the party and the politicaljurisdictions.Constitutional and legal changes due to multi- party politics may affect manyof the arrangements described above.Principal Government OfficialsPresident--Ali Hassan MwinyiFirst Vice-President and Prime Minister--John Samuel MalecelaPresident of Zanzibar and Second Vice-President--Dr. Salmin AmourDeputy Prime Minister-- Augustine MremaMinister of Foreign Affairs--Joseph RwegasiraAmbassador to the United States--Charles NyirabuAmbassador to the United Nations--vacantTanzania maintains an embassy in the United States at 2139 R Street NW,Washington, DC 20008 (tel.  [phone]).POLITICAL CONDITIONSPresident Ali Hassan Mwinyi was elected for a second five-year term in 1990.Salmin Amour became President of Zanzibar and second Vice President of theUnion.  In a 1990 cabinet shuffle, President Mwinyi replaced Prime MinisterJoseph Warioba with John Samuel Malecela, a former foreign minister anddiplomat.  Julius Nyerere retired from his post as CCM party chairman in 1990and transferred that position to President Mwinyi.In the beginning Tanzania sought to achieve political and economic developmentwithin an authoritarian framework.  Since 1962, Nyerere had used the Kiswahiliword ujamaa (familyhood) to describe the ideal of communal cooperation hisgovernment sought to foster.  Goals were set forth in more conventionalsocialist terms in the TANU constitution and reaffirmed in February 1967 in aparty document, the Arusha Declaration.  The declaration, which enunciated theprinciples of socialism and self-reliance, asked that the governmentnationalize the means of production, prepare development plans that Tanzaniacould carry out without depending on foreign assistance, and place greateremphasis on improving rural living standards.The CCM was granted political supremacy over the government by theconstitution of 1977 and still remains a primary source of policy in thesocial, political, and economic fields.  Nearly all top government leaderswere provided by CCM, which plays a leading role in the government scheme ofnation-building and whose control structure is closely interwoven with thegovernment's.In early 1986, however, Nyerere admitted that the party was moribund,particularly at local levels, and began a campaign to inject new life into theCCM.  These initiatives failed, and by 1989, when the East European socialistregimes began to collapse, the party reluctantly conceded the need forfundamental reforms.Reforms of the political process met with considerable criticism.  Tanzania'ssingle- party politics made a mockery of democratic procedures through itselectoral practices.  No candidate was permitted to stand for office withoutthe approval of the senior leadership of the ruling party.  Voters wereexpected merely to ratify the party's choices and coercivemeasures--withholding ration allotments, for example--were commonly used to"encourage" participation in registration and voting.  To address thisproblem, President Mwinyi in 1991 appointed a special commission under ChiefJustice Francis Nyalali to examine and recommend fundamental reforms of thepolitical system.At the end of 1991, Tanzania began another attempt at democratic and economicreform in order to change its autocratic single-party state system.  Low paycombined with obsessive secrecy and lack of accountability had led to massivefraud, misfeasance, corruption, and a disregard for the leadership's code.The Zanzibar Declaration of 1991 began reform in earnest primarily because theproblems could no longer be hidden.In January and February 1992, the government decided to adopt multi-partydemocracy.  Legal and constitutional changes led to the registration of 11political parties.  Two parliamentary by-elections (won by the CCM) in early1994, which were contested by most parties, were the first-ever multi-partyelections in Tanzanian history.  Local elections are planned for August 1994and general elections for 1995.</text>
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        <text>U.S. Department of StateBackground Notes:  Syria, October 1995 (CONTINUED)Bureau of Public AffairsOctober 1995Official Name:  Syrian Arab RepublicFOREIGN RELATIONS  Ensuring national security, increasing influence among its Arab neighbors, and achieving a comprehensive Arab-Israeli peace settlement which includes the return of the Golan Heights are the primary goals of President Asad's foreign policy.  Syria's participation in the U.S.-led multinational coalition aligned against Saddam Hussein marked a dramatic watershed in Syria's relations both with other Arab states and with the West.  Syria participated in the multilateral Middle East Peace Conference in Madrid in October 1991.  While Syria's involvement with the multinational coalition during the Gulf war and participation in the peace process have helped to improve Syria's relations with the West, concern remains over the continuing presence of terrorist groups in Syria and Syrian-controlled areas of Lebanon, Syria's human rights record, and Syrian involvement in narcotics activity in Lebanon.  Syria's relations with Western nations were particularly strained in the past decade because of Syrian support for groups involved in international terrorism, including the Popular Front for the Liberation of Palestine-General Command (PFLP-GC), the Palestine Islamic Jihad (PIJ), the Abu Nidal Organization (ANO), Hizballah, the Turkish Revolutionary Left (Dev Sol), the Kurdish Workers Party (PKK), and the Japanese Red Army (JRA).    Relations with Other Arab Countries  Syria's relations with the Arab world were strained by its support for Iran during the Iran-Iraq War, which began in 1980. With the end of the war in August 1988, Syria began a slow process of reintegration with the other Arab states.  In 1989, it joined with the rest of the Arab world in readmitting Egypt to the 19th Arab League Summit at Casablanca.  This decision, prompted in part by Syria's need for Arab League support of its own position in Lebanon, marked the end of the Syrian-led opposition to Egypt and the 1977-79 Sadat initiative toward Israel, as well as the Camp David accords.  It coincided with the end of the 10-year Arab subsidy to Syria and other front-line Arab countries pledged at Baghdad in 1978.  Syria reestablished full diplomatic relations with Egypt in 1989.  In the 1990-91 Gulf war, Syria joined other Arab states in the U.S.-led multinational coalition against Iraq.     Involvement in Lebanon   Syria plays an important role in Lebanon by virtue of its history, size, power, and economy.  Lebanon was part of post-Ottoman Syria until 1926, when the French established Lebanon as a separate nation.  The presence of Syrian troops in Lebanon dates to 1976, when President Asad intervened in the Lebanese civil war on behalf of Maronite Christians.  Following the 1982 Israeli invasion of Lebanon, Syrian and Israeli forces clashed in eastern Lebanon.  The late U.S. Ambassador Philip Habib negotiated a cease-fire in Lebanon and the subsequent evacuation of PLO fighters from West Beirut.  However, Syrian opposition blocked implementation of the May 17, 1983, Lebanese-Israeli accord on the withdrawal of Israeli forces from Lebanon.  Following the February 1984 withdrawal of the UN Multinational Force from Beirut and the departure of most of Israel's forces from southern Lebanon a year later, Syria launched an unsuccessful initiative to reconcile warring Lebanese factions and establish a permanent cease-fire.    Syria actively participated in the March-September 1989 fighting between the Christian Lebanese Forces and Muslim forces allied with Syria.  In 1989, Syria endorsed the Charter of National Reconciliation, or "Taif Accord," a comprehensive plan for ending the Lebanese conflict negotiated under the auspices of Saudi Arabia, Algeria, and Morocco.    At the request of Lebanese President Hrawi, the Syrian  military took joint action with the Lebanese Armed Forces on October 13, 1990, to oust rebel General Michel Aoun who had defied efforts at reconciliation with the legitimate Government of Lebanon.  The process of disarming and disbanding the many Lebanese militias began in earnest in early 1991.  In May 1991, Lebanon and Syria signed the treaty of brotherhood, cooperation, and coordination called for in the Taif Accord which is intended to provide the basis for many aspects of Syrian-Lebanese relations.  The treaty provides the most explicit recognition to date by the Syrian Government of Lebanon's independence and sovereignty.  According to the U.S. interpretation of the Taif Accord, Syria and Lebanon were to have decided on the redeployment of Syrian forces from Beirut and other coastal areas of Lebanon by September 1992.  Arab-Israeli Relations   Syria was an active belligerent in the 1967 Arab-Israeli war, which resulted in Israel's occupation of the Golan Heights and the city of Quneitra.  Following the October 1973 Arab-Israeli war, which left Israel in occupation of additional Syrian territory, Syria accepted UN Security Council Resolution 338, which signaled an implicit acceptance of Resolution 242.  Resolution 242, which became the basis for the peace process negotiations begun in Madrid, calls for a just and lasting Middle East peace to include withdrawal of Israeli armed forces from territories occupied in 1967, termination of the state of belligerency and acknowledgment of the sovereignty, territorial integrity, and political independence of all regional states and of their right to live in peace within secure and recognized boundaries.  As a result of the mediation efforts of then U.S. Secretary of State Henry Kissinger, Syria and Israel achieved a disengagement agreement in May 1974, enabling Syria to recover territory lost in the October war and part of the Golan Heights occupied by Israel since 1967, including Quneitra.  The two sides have effectively implemented the agreement.   In December 1981, the Israeli Knesset voted to extend Israeli law to the part of the Golan Heights over which Israel retained control.  The United Nations Security Council subsequently passed a resolution calling on Israel to rescind this measure.  Syria participated in the Middle East Peace Conference in Madrid in October 1991.  Although serious gaps remain between Syria and Israel, through the mediation of the U.S., real negotiations are underway which have become detailed and substantive.  Concrete ideas have been conveyed on key issues such as withdrawal, security arrangements, normalization of relations, timing, phasing.  Syria is a member of:  the Arab Bank for Economic Development in Africa, Arab Fund for Economic and Social Development, Arab League, Arab Monetary Fund, Council of Arab Economic Unity, Customs Cooperation Council, Economic and Social Commission for Western Asia, Food and Agricultural Organization, Group of 24, Group of 77, International Atomic Energy Agency, International Bank for Reconstruction and Development, International Civil Aviation Organization, International Chamber of Commerce, International Development Association, Islamic Development Bank, International Fund for Agricultural Development, International Finance Corporation, International Labor Organization, International Monetary Fund, International Maritime Organization, INTELSAT, INTERPOL, International Olympic Committee, International Organization for Standardization, International Telecommunication Union, League of Red Cross and Red Crescent Societies, Non-Aligned Movement, Organization of Arab Petroleum Exporting Countries, Organization of the Islamic Conference, United Nations, UN Conference on Trade and Development, UN Educational, Scientific and Cultural Organization, UN Industrial Development Organization, UN Relief and Works Agency for Palestine Refugees in the Near East, Universal Postal Union, World Federation of Trade Unions, World Health Organization, World Meteorological Organization, and World Tourism Organization.    U.S.-SYRIAN RELATIONS   U.S.-Syrian relations, severed in 1967, were resumed in June 1974, following the achievement of the Syrian-Israeli disengagement agreement.  In recent years, Syria and the U.S. have worked together in areas of mutual interest.  In 1990-91, Syria cooperated with the U.S. as a member of the multinational coalition of forces in the Gulf war.  The U.S. and Syria also consulted closely on the Taif Accord ending the civil war in Lebanon.  In 1991, President Asad made a historic decision to accept then President Bush's invitation to attend a Middle East peace conference and to engage in subsequent bilateral negotiations with Israel.  Syria's efforts to secure the release of Western hostages held in Lebanon and its lifting of restrictions on travel by Syrian Jews helped further to improve relations between Syria and the United States.  President Clinton met President Asad in Geneva in January 1994 and again in October, when he traveled to Damascus.  The U.S. continues to have serious differences with Syria, however.  Syria has been on the U.S. list of state sponsors of terrorism since the list's inception in 1979.  Because of its continuing support and safe-haven for terrorist organizations, Syria is subject to legislatively mandated penalties, including export sanctions and ineligibility to receive most forms of U.S. aid or to purchase U.S. military equipment.  In 1986, the U.S. withdrew its ambassador and imposed additional administrative sanctions on Syria in response to evidence of direct Syrian involvement in an attempt to blow up an Israeli airplane.  A U.S. ambassador returned to Damascus in 1987, partially in response to positive Syrian actions against terrorism such as expelling the Abu Nidal Organization from Syria and helping free an American hostage earlier that year.  There is no evidence that Syrian officials have been directly involved in planning or executing terrorist attacks since 1986.  Other issues of U.S. concern include Syria's human rights record, the involvement of some Syrian military and security officials in the Lebanese drug trade, and full implementation of the Taif Accord.  In its ongoing bilateral dialogue, the U.S. urges Syria to cease providing support and safehaven to terrorist groups, improve its human rights performance, prosecute Syrians involved in the drug trade, cooperate with Lebanon in implementing a comprehensive narcotics control and eradication program in Lebanon's Biqa' Valley, and redeploy its forces in Lebanon in accordance with the Taif Accord.  Principal U.S. Officials   Ambassador--Christopher W.S. Ross Deputy Chief of Mission--Marjorie A. Ransom Political Officer--Douglas C. Greene Economic/Commercial Officer--David Rundell Consular Officer--Greta Holtz Administrative Officer--Ronald L. Gain Public Affairs Officer--Alberto M. Fernandez Defense Attache--vacant  The U.S. embassy is located at Abu Roumaneh, Al-Mansur St. No. 2; P.O. Box 29; Tel. [phone], 332557, 330416, 332315, 332814, 714108, 337178, 333232; USIS Tel: 331878, 338413; telex 411919 USDAMA SY; FAX [phone].  Travel Notes  Climate and clothing:  The climate compares to that of Arizona.    Customs and currency:  Passports are required.  U.S. tourists require visas for entry.    Health:  Although not meeting U.S. standards, public health poses no particular problems.  Vegetables and fruits should be washed and cooked; drink bottled water.  Telecommunications:  Local and international telephone and telegraph service is available.  ============================== Background Notes Series -- Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of Public Communication  --  Washington, DC  --  This material is in the public domain and can be reproduced without consent; citation of this source is appreciated. (###)</text>
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        <text>U.S. Department of StateBackground Notes:  Syria, October 1995Bureau of Public AffairsOctober 1995Official Name:  Syrian Arab RepublicPROFILEGeographyArea:  185,170 sq. km. (71,504 sq. mi.) (including 1,295 sq. km. ofIsraeli-occupied territory); about the size of North Dakota.Cities:  Capital--Damascus (pop. 4 million).  Other cities--Aleppo (1.5million), Homs (400,000).Terrain:  Narrow coastal plain with a double mountain belt in the west;large, semiarid and desert plateau to the east.Climate:  Mostly desert; hot, dry sunny summers (June to August) andmild, rainy winters (December to February) along coast.PeopleNationality:  Noun and adjective--Syrian(s).Population (1993):  14.3 million.Growth rate (1993):  3.8%.Major ethnic groups:  Arabs (90%), Kurds (9%), Armenians, Circassians,Turkomans.Religions:  Sunni Muslims (74%), Alawis (12%), Christians (10%), Druze(3%), and small numbers of other Muslim sects, Jews, and Yazidis.Languages:  Arabic (official), English and French (widely understood),Kurdish, Armenian, Aramaic, Circassian.Education:  Years compulsory--primary, 6 yrs.  Attendance--94%.Literacy--78% male, 51% female.Health:  Infant mortality rate--44/1,000 (1993).  Life expectancy--65yrs. male, 67 yrs. female (1993).Work force (3.7 million, 1993 est.):  Services (including government)--36%.  Agriculture--32%.  Industry and commerce--32%.GovernmentType:  Republic, under Arab Socialist Ba'ath party regimes since March1963.Independence:  April 17, 1946.Constitution:  March 12, 1973.Branches:  Executive--president, three vice presidents, prime minister,three deputy prime ministers, Council of Ministers (cabinet).Legislative--unicameral People's Council.  Judicial--SupremeConstitutional Court, High Judicial Council, Court of Cassation, StateSecurity Courts.Administrative subdivisions:  13 provinces and city of Damascus(administered as a separate unit).Political parties:  Arab Socialist Resurrection (Ba'ath) Party, SyrianArab Socialist Party, Arab Socialist Union, Syrian Communist Party, ArabSocialist Unionist Movement, Democratic Socialist Union Party.Suffrage:  Universal at 18.Economy (1993 est.)GDP:  $10 billion.Real growth rate:  8%.Per capita GDP:  $710.Natural resources:  Crude oil and natural gas, phosphates, asphalt, rocksalt, marble, gypsum.Agriculture (19% of GDP):  Products--cotton, wheat, barley, sugar beets,fruits and vegetables.  Arable land--28%.Industry (56% of GDP):  Types--mining, manufacturing (textiles, foodprocessing), construction, petroleum.Trade:  Exports--$3.4 billion:  petroleum, textiles, phosphates, fruitsand vegetables, cotton.  Major markets--Newly Independent States,Eastern Europe, EU, Arab countries.  Imports--$4.1 billion:  foodstuffs,metal and metal products, machinery, textiles, petroleum.  Majorsuppliers--France, U.S., Germany, Turkey, Italy, Japan.Official exchange rate:  Official--11.20 Syrian Pounds (S.P.) =U.S.$1.PEOPLEEthnic Syrians are of Semitic stock.  Syria's population is 90% Muslim--74% Sunni and 16% other Muslim groups including the Alawi, Shia, andDruze--and 10% Christian.  There is also a small Syrian Jewishcommunity.Arabic is the official, and most widely spoken, language.Arabs, including some 300,000 Palestinian refugees, make up 90% of thepopulation.  Many educated Syrians also speak English or French, butEnglish is the more widely understood.  The Kurds, many of whom speakKurdish, make up 9% of the population and live mostly in the north-eastcorner of Syria, though sizable Kurdish communities live in most majorSyrian cities as well.  Armenian and Turkic are spoken among the smallArmenian and Turkoman populations.Most people live in the Euphrates River valley and along the coastalplain, a fertile strip between the coastal mountains and the desert.Overall population density is about 140/sq. mi.Education is free and compulsory from ages 6 to 11.  Schooling consistsof six years of primary education followed by a three-year general orvocational training period and a three-year academic or vocationalprogram.  The second three-year period of academic training is requiredfor university admission.  Total enrollment at post-secondary schools isover 150,000.  The literacy rate of Syrians aged 15 and older is 78% formales and 51% for females.Ancient Syria's cultural and artistic achievements and contributions aremany.  Archaeologists have discovered extensive writings and evidence ofa brilliant culture rivaling those of Mesopotamia and Egypt in andaround the ancient city of Ebla.  Later Syrian scholars and artistscontributed to Hellenistic and Roman thought and culture.  Zeno of Sidonfounded the Epicurean school; Cicero was a pupil of Antiochus of Ascalonat Athens; and the writings of Posidonius of Apamea influenced Livy andPlutarch.Syrians have contributed to Arabic literature and music and have a proudtradition of oral and written poetry.  Although declining, the worldfamous handicraft industry still employs thousands.HISTORYArchaeologists have demonstrated that Syria was the center of one of themost ancient civilizations on earth.  Around the excavated city of Eblain northern Syria, discovered in 1975, a great Semitic empire spreadfrom the Red Sea north to Turkey and east to Mesopotamia from 2500 to2400 B.C.  The city of Ebla alone during that time had a populationestimated at 260,000. Scholars believe the language of Ebla to be theoldest Semitic language.Syria was occupied successively by Canaanites, Phoenicians, Hebrews,Arameans, Assyrians, Babylonians, Persians, Greeks, Romans, Nabataeans,Byzantines, and, in part, Crusaders before finally coming under thecontrol of the Ottoman Turks.  Syria is significant in the history ofChristianity; Paul was converted on the road to Damascus and establishedthe first organized Christian Church at Antioch in ancient Syria, fromwhich he left on many of his missionary journeys.Damascus, settled about 2500 B.C., is one of the oldest continuouslyinhabited cities in the world.  It came under Muslim rule in 636 A.D.Immediately thereafter, the city's power and prestige reached its peak,and it became the capital of the Omayyad Empire, which extended fromSpain to India from 661 to 750 A.D., when the Abbasid caliphate wasestablished at Baghdad, Iraq.Damascus became a provincial capital of the Mameluke Empire around 1260.It was largely destroyed in 1400 by Tamerlane, the Mongol conqueror, whoremoved many of its craftsmen to Samarkand.  Rebuilt, it continued toserve as a capital until 1516.  In 1517, it fell under Ottoman rule.The Ottomans remained for the next 400 years, except for a briefoccupation by Ibrahim Pasha of Egypt from 1832 to 1840.French OccupationIn 1920, an independent Arab Kingdom of Syria was established under KingFaysal of the Hashemite family, who later became King of Iraq.  However,his rule over Syria ended after only a few months, following the clashbetween his Syrian Arab forces and regular French forces at the battleof Maysalun.  French troops occupied Syria later that year after theLeague of Nations put Syria under French mandate.With the fall of France in 1940, Syria came under the control of theVichy Government until the British and Free French occupied the countryin July 1941.  Continuing pressure from Syrian nationalist groups forcedthe French to evacuate their troops in April 1946, leaving the countryin the hands of a republican government that had been formed during themandate.Independence to 1970Although rapid economic development followed the declaration ofindependence of April 17, 1946, Syrian politics from independencethrough the late 1960s was marked by upheaval.  A series of militarycoups, begun in 1949, undermined civilian rule and led to army colonelAdib Shishakli's seizure of power in 1951.  After the overthrow ofPresident Shishakli in a 1954 coup, continued political maneuveringsupported by competing factions in the military eventually brought Arabnationalist and socialist elements to power.Syria's political instability during the years after the 1954 coup, theparallelism of Syrian and Egyptian policies, and the appeal of EgyptianPresident Gamal Abdel Nasser's leadership in the wake of the 1956 Suezcrisis created support in Syria for union with Egypt.  On February 1,1958, the two countries merged to create the United Arab Republic, andall Syrian political parties ceased overt activities.The union was not a success, however. Following a military coup onSeptember 28, 1961, Syria seceded, reestablishing itself as the SyrianArab Republic.  Instability characterized the next 18 months, withvarious coups culminating on March 8, 1963, in the installation byleftist Syrian Army officers of the National Council of theRevolutionary Command (NCRC), a group of military and civilian officialswho assumed control of all executive and legislative authority.  Thetakeover was engineered by members of the Arab Socialist ResurrectionParty (Ba'ath Party) which had been active in Syria and other Arabcountries since the late 1940s.  The new cabinet was dominated by Ba'athmembers. The Ba'ath takeover in Syria followed a Ba'ath coup in Iraq theprevious month.  The new Syrian Government explored the possibility offederation with Egypt and Ba'ath-controlled Iraq.  An agreement wasconcluded in Cairo on April 17, 1963, for a referendum on unity to beheld in September 1963.  However, serious disagreements among theparties soon developed, and the tripartite federation failed tomaterialize.  Thereafter, the Ba'ath regimes in Syria and Iraq began towork for bilateral unity.  These plans foundered in November 1963, whenthe Ba'ath regime in Iraq was overthrown.In May 1964, President Amin Hafiz of the NCRC promulgated a provisionalconstitution providing for a National Council of the Revolution (NCR),an appointed legislature composed of representatives of massorganizations (labor, peasant, and professional unions), a presidentialcouncil (in which executive power was vested), and a cabinet. On February 23, 1966, a group of army officers carried out asuccessful, intra-party coup, imprisoned President Hafiz, dissolved thecabinet and the NCR, abrogated the provisional constitution, anddesignated a regionalist, civilian Ba'ath Government.  The coup leadersdescribed it as a "rectification" of Ba'ath Party principles.The defeat of the Syrians and Egyptians in the June 1967 war with Israelweakened the radical socialist regime established by the 1966 coup.Conflict developed between a moderate military wing and a more extremistcivilian wing of the Ba'ath party. The 1970 retreat of Syrian forcessent to aid the PLO during the "Black September" hostilities with Jordanreflected this political disagreement within the ruling Ba'athleadership.  On November 13, 1970, Minister of Defense Hafiz al-Asadeffected a bloodless military coup, ousting the civilian partyleadership and assuming the role of Prime Minister.GOVERNMENTUpon assuming power, Hafiz al-Asad moved quickly to create anorganizational infrastructure for his government and to consolidatecontrol.  The Provisional Regional Command of Asad's Arab Ba'athSocialist Party nominated a 173-member legislature, the People'sCouncil, in which the Ba'ath Party took 87 seats.  The remaining seatswere divided among "popular organizations" and other minor parties.  InMarch 1971, the party held its regional congress and elected a new 21-member Regional Command headed by Asad.In the same month, a national referendum was held to confirm Asad asPresident for a seven-year term.  In March 1972, to broaden the base ofhis government, Asad formed the National Progressive Front, a coalitionof parties led by the Ba'ath Party, and elections were held to establishlocal councils in each of Syria's 14 governorates.  In March 1973, a newSyrian constitution went into effect followed shortly thereafter byparliamentary elections for the People's Council, the first suchelections since 1962.The Syrian constitution vests the Arab Ba'ath Socialist Party withleadership functions in the state and society and provides broad powersto the President.  The president, approved by referendum for a seven-year term, is also secretary general of the Ba'ath Party and leader ofthe National Progressive Front.  The president has the right to appointministers, to declare war and states of emergency, to issue laws (which,except in the case of emergency, require ratification by the People'sCouncil), to declare amnesty, to amend the constitution and to appointcivil servants and military personnel.Along with the National Progressive Front, the president decides issuesof war and peace and approves the state's five-year economic plans.  TheNational Progressive Front also acts as a forum in which economicpolicies are debated and the country's political orientation isdetermined.  However, because of Ba'ath Party dominance, the NationalProgressive Front has traditionally exercised little independent power.The Syrian constitution of 1973 requires that the president be Muslimbut does not make Islam the state religion.  Islamic jurisprudence,however, is required to be the main source of legislation.  The judicialsystem in Syria is an amalgam of Ottoman, French and Islamic laws, withthree levels of courts:  courts of first instance, courts of appeals andthe Constitutional Court, the highest tribunal.  In addition, religiouscourts handle questions of personal and family law.The Ba'ath Party emphasizes socialism and secular Arabism.  AlthoughBa'ath Party doctrine seeks to build national rather than ethnicidentity, ethnic, religious and regional allegiances remain important inSyria.Members of President Asad's own sect, the Alawis, hold most of theimportant military and security positions.  In recent years there hasbeen a gradual decline in the party's preeminence, often in favor of theleadership of the broader National Progressive Front.  The party is alsonow dominated by the military, which consumes a large share of Syria'seconomic resources.Syria is divided administratively into 14 provinces, one of which isDamascus.  Each province is headed by a governor, whose appointment isproposed by the minister of the interior, approved by the cabinet andannounced by executive decree.  The governor is assisted by an electedprovincial council.National SecurityPresident Asad is commander-in-chief of the Syrian armed forces,comprising some 400,000 troops and a substantial number of reservists.Males serve 30 months in the military upon reaching the age of 18.About 30,000 Syrian soldiers are currently deployed in Lebanon.The break-up of the Soviet Union, long the principal source of training,materiel, and credit for the Syrian forces, has forced Syria to findother military suppliers.  Syria has in recent years purchased tanksfrom Slovakia and Russia, howitzers from Bulgaria, and SCUD missilesfrom North Korea.  Syria received significant financial aid from GulfArab states as a result of its participation in Gulf war, with a sizableportion of these funds earmarked for military spending.  Besidessustaining its conventional forces, Syria has sought to improve itsunconventional weapons capability.  While expanding its missile force,Syria continues to develop its chemical weapons capability.Principal Government OfficialsPresident--Hafiz al-AsadVice President for Foreign Affairs--'Abd al-Halim ibn Sa'id KhaddamVice President for Security Affairs--Rif'at al-AsadVice President for Educational and Cultural Affairs--Muhammad ZuhayrMashariqaPrime Minister--Mahmud Zu'biForeign Affairs--Farouk al-Shara'Ambassador to the United States--Walid al-MoualemAmbassador to the United Nations--VacantSyria maintains an embassy in the United States at 2215 Wyoming Avenue,NW, Washington, DC 20008 (tel.:  [phone], fax:  [phone]).Consular section hours are 10-2, Monday-Friday.  Syria also has anhonorary consul at 5615 Richmond Ave., Suite 235, Houston, TX 77057(tel. [phone]).POLITICAL CONDITIONSSyria is ruled by an authoritarian regime which exhibits the forms of ademocratic system but in which President Asad wields almost absoluteauthority.  His government has held power longer than any other sinceindependence.  In March 1992, Asad began his fourth seven-year term.His survival is due partly to a strong desire for political stability aswell as to his government's success in giving groups such as religiousminorities and peasant farmers a stake in society.The expansion of the government bureaucracy has created a large classwhich owes its position to Asad, whose strength is due also to thearmy's continued loyalty and the effectiveness of Syria's large internalsecurity apparatus, both comprised largely of members of Asad's ownAlawi sect.  The several main branches of the security services operateindependently of each other and outside of the legal system.  Eachcontinues to be responsible for human rights violations.Key decisions regarding foreign policy, national security, and theeconomy are made by President Asad, with counsel from his principaladvisors.  The parliament, in which the Ba'ath Party is guaranteed amajority, is elected every four years but has no independent authority.It cannot initiate laws; it may only react to initiatives by theexecutive.All three branches of government are guided by the views of the Ba'athparty, whose primacy in state institutions is assured by theconstitution.  The Ba'ath platform is proclaimed succinctly in theparty's slogan:  "Unity, freedom, and socialism."  The party is bothsocialist--advocating state ownership of the means of industrialproduction and the redistribution of agricultural land--andrevolutionary--dedicated to carrying a socialist revolution to everypart of the Arab world.   Founded by Michel 'Aflaq, a Syrian Christian,and Salah al-Din Al-Bitar, a Syrian Sunni, the Ba'ath Party embracessecularism and has attracted supporters of all faiths in many Arabcountries, especially Iraq, Jordan, and Lebanon.  Since August 1990,however, the party has tended to de-emphasize socialism and to stresspan-Arab unity.Syria has been under a state of emergency since 1963.  SyrianGovernments have justified martial law by the state of war whichcontinues to exist with Israel and by continuing threats posed byterrorist groups (radicals, Iraqi and Lebanese).  The current governmenthas suppressed all challenges to its authority.  Commercial and urbanelements, whose power and status have been eroded by the Ba'ath Partyand its policies, constitute part of the opposition.  The mostsignificant opposition, however, has come from fundamentalist SunniMuslims, who reject the basic values of the secular Ba'ath program andobject to rule by the Alawis, whom they consider heretical.  From thelate 1970s until its suppression in 1982, the arch-conservative MuslimBrotherhood posed an ongoing armed challenge to the regime.  In responseto an attempted uprising by the brotherhood in February 1982, thegovernment crushed the fundamentalist opposition centered in the city ofHama, leveling parts of the city with artillery fire and causing manythousands of dead and wounded.  Since then, public manifestations ofanti-regime activity have been very limited.In August 1994 parliamentary elections, the National Progressive Frontwon 167 of the 250 seats in the People's Council; most of those 167seats went to Ba'ath Party members. Independents won the remaining 83seats.In December 1991, President Asad won a fourth seven-year term aspresident in a popular referendum on his candidacy.  According toresults announced by the Syrian Government, President Asad received a99% affirmative vote with a reputed 99% of the eligible electoratevoting.ECONOMYSyria is a middle-income developing country with a diversified economybased on agriculture, industry and an expanding energy sector.  Duringthe 1960s, citing its state socialist ideology, the governmentnationalized most major enterprises and adopted economic policiesdesigned to address regional and class disparities. Despite the positivegrowth rates of the past few years, this legacy of state interventionand price, trade, and foreign exchange controls still hampers economicgrowth.  Despite a number of significant reforms and ambitiousdevelopment projects of the early 1990s, Syria's economy still is slowedby large numbers of poorly performing public sector firms, lowinvestment levels, and relatively low industrial and agriculturalproductivity. Syria's support for Iran during the Iran-Iraq War isolated it from itsArab neighbors in the 1980s.  This isolation, combined with the drop inoil prices, caused a fall in real growth during the 1980s from 10% to anaverage of 2.5% per year--less than the population growth rate of 3.8%.Living standards for most income groups in Syria declined during thedecade.  A severe drought in 1989 compounded economic problems, forcinguse of scarce foreign exchange reserves to import extraordinary amountsof wheat, flour and other foodstuffs.Syria's participation in the multinational coalition against Iraq in the1990-91 Gulf war ended the years of isolation, however, and gave itaccess to substantial European, Japanese, and Gulf financial resources(estimated at $500 million annually from 1990-92, with another $2billion promised, but not yet delivered by Gulf states in accordancewith the Damascus Declaration of March 1991).  In addition, Syria beganto look to new markets as economic ties with Moscow and Central Europebegan to loosen.Despite a declining manufacturing sector, by 1992, the effects offoreign aid, the new investment law of 1991, increased petroleumproduction, and exceptionally good harvests combined to boost GDP growthand enable the government to initiate a number of projects torehabilitate the country's deteriorating infrastructure and publicsector enterprises.  Current plans, many of which still lack securedfinancing, include upgrades of Syria's antiquated phone system andseverely underpowered electricity grid, as well as steel mill, cement,and fertilizer plant construction.Despite the improvements of 1989-92, Syria's economy faces seriouschallenges.  With almost 60% of its population under the age of 20, anda growth rate (3.8%) among the world's highest, higher unemploymentrates seem inevitable.  Oil production likely will level off over thenext decade, and financial aid flows from the Gulf are slowing.  Syrianeconomic reforms thus far have been incremental and gradual, with large-scale privatization not even on the distant horizon.Commerce has always been important to the Syrian economy, whichbenefited from the country's location along major east-west traderoutes.  Syrian cities boast both traditional industries such as weavingand dried-fruit packing and modern heavy industry.The bulk of Syrian imports have been raw materials essential forindustry and agriculture, advanced oil-field equipment, and heavymachinery for the infrastructure construction.  Major exports includecrude oil, refined products, raw cotton, cotton knits, fruits andvegetables.  Aside from commitments of foreign aid, earnings from oilexports are one of the government's most important sources of foreignexchange.Of Syria's 72,000 square miles, roughly one-third is arable, with 80% ofcultivated areas dependent on rainfall for water. Since 1989, theagriculture sector has recovered from years of governmentinattentiveness and drought.  Most farms are privately owned, butmarketing and transportation are controlled by the government.The government has redirected its economic development priorities fromindustrial expansion into the agricultural sectors in order to achievefood self-sufficiency, enhance export earnings, and stem ruralmigration.  Thanks to sustained capital investment, infrastructuredevelopment, subsidies of inputs, and price supports, Syria has gonefrom a net importer of many agricultural products to an exporter ofcotton, fruits, vegetables, and other foodstuffs.  One of the primereasons for this turnaround has been the government's investment in hugeirrigation systems in northern and northeastern Syria, part of a plan toincrease irrigated farmland by 38% over the next decade.Recent dam construction in Turkey has reduced the flow of the Euphratesto Syria and Iraq.  This has limited Syria's hydroelectric powergenerating capacity and caused greater domestic dependence on oil,Syria's main foreign exchange earner.Adequate flow of the Euphrates is crucial to Syrian agriculture andpower supply and is expected to be assured in a formal agreement withTurkey.  Nonetheless, Syria will need to adopt a more comprehensiveconservation program to ensure adequate water supply over the long term.Syria has produced heavy grade oil from fields located in the northeastsince the late 1960s.  In the early 1980s, a light-grade low-sulphur oilwas discovered near Dayr az Zawr in eastern Syria.  This discoveryrelieved Syria of the need to import light oil to mix with domesticheavy crude in refineries.Recently, Syrian oil production has been about 580,000 barrels/day, andreserves are estimated at 1.7 billion barrels).  Syria exports about300,000 b/d, which brings in approximately $3 billion annually and makesup 80% of total foreign exchange earnings.Although its oil reserves are small compared to those of many other Arabstates, Syria's petroleum industry in 1989 helped the country achieveits first trade surplus in over a decade, and has accounted for almostthree-quarters of the country's export income.  Government plans callfor major investment to exploit recently discovered natural gas reservesto maximize export revenues by freeing up oil from domestic consumption.Ad hoc economic liberalization has provided a boost to Syria's small butdynamic private sector.  In 1990, the government established an officialparallel exchange rate, (neighboring country rate, or NCR) to provideincentives for remittances and exports through official channels.  Thisaction improved the supply of basic commodities and contained inflationby removing risk premiums on smuggled commodities.Over time, the government has increased the number of transactions towhich the more favorable neighboring country rate applies.  Nonetheless,government and certain public sector transactions are still conducted atthe official rate of 11.2 Syrian pounds to the U.S. dollar, andexchange-rate unification remains an elusive goal.Although private sector firms have not had access to official foreignexchange since 1984, the government's Investment Law #10 of 1991 permitsretention of foreign exchange earned from exports in order to financecertain imports of raw materials.  The government retains a monopoly on"strategic" imports, such as wheat and flour, but it has expanded thelist of unrestricted imports.  This law also grants qualifying investorstax holidays and duty-free privileges for the import of capital goodsand inputs, permits some foreign exchange transactions at the favorableneighboring country exchange rate, and encourages joint public/privatesector ventures in which the government holds a passive 25% interest.Since passage of this law, over 400 new companies have been formed, withapproximately $1.8 billion in new investments.  While these reforms haveattracted offshore savings from Syrian expatriates, Western and Arabinvestors are waiting for additional economic liberalization, includingprivate banking facilities, a unified exchange rate, and development ofa stock market.Given the poor development of its own capital markets and Syria's lackof access to international money and capital markets, monetary policyremains captive to the need to cover the fiscal deficit.  Interest ratesare fixed by law, and most rates have not changed in the last 20 years.Basic foodstuffs continue to be heavily subsidized, and social servicesare provided for nominal charges.Through two decades of heavy military spending and expansion of thepublic sector, Syria accumulated an external debt (to the former SovietUnion, Iran, and the World Bank among others) conservatively estimatedat $16 billion.  Syria manages its debt by indefinite deferment--it isbadly in arrears on payments to the World Bank and has suspendedclearinghouse arrangements to draw down debt with its largest creditor,Russia.  Any programmed multilateral debt rescheduling, which usuallydepends on a structural adjustment program with the IMF, seems unlikelyin the near future.</text>
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        <text>BACKGROUND NOTES:  SWAZILANDPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEAPRIL 1993Official Name:  Kingdom of SwazilandPROFILEPeopleNationality:  Noun and adjective--Swazi(s).Population (1992 est.):  860,000.  Annual growth rate (1991est.):  3.4%.  Ethnic groups:  The great majority is Swazi, theremainder Zulu and non-African.Religions:  Christian and indigenous beliefs.  Languages:English and SiSwati (both official).Education: Years compulsory--none.  Attendance--99% primaryschool; 44% secondary school.  Literacy--64%.Health:  Infant mortality rate--98/1,000.  Life expectancy--53yrs. males; 60 yrs. females.Work force (12% of population):  Agriculture and forestry--30%.Financial and social services--26%.  Mining andmanufacturing--18%.  Transport and communications--8%.Construction--7%.GeographyArea:  17,363 sq. km. (6,704 sq. mi.); slightly smaller than New Jersey.Cities:  Capital--Mbabane (pop. 55,000 est.).  Principalcommercial city--Manzini (pop. 66,000 est.).Terrain:  Mountainous, plateau.Climate:  Near-temperate, subtropical, semi-arid.GovernmentType:  Monarchy.  Independence:  September 6, 1968.Constitution:  No written constitution in effect.Branches:  Executive--Monarch (chief of state), prime minister(head of government), cabinet.  Legislative--parliamentconsisting of House of Assembly (50 members) and Senate (20members).  Judicial--Court of Appeals, high court, subordinateand traditional courts.Administrative subdivisions:  4 regions, 4 municipal governments,and 40 Tinkhundla (traditional administrative units).Political parties:  None permitted by law.  Suffrage:  Universal.Flag:  Five horizontal stripes--blue, yellow, crimson, yellow,blue--with shield, two spears, and staff centered on wide crimsonband.EconomyGDP (1990 est.):  $704 million.  Real growth rate (1991):  7%.Per capita income (1990):  $900.Natural resources:  Asbestos, coal, diamonds, timber,hydroelectric power, clay.Agriculture (20% of GDP):  Products--sugar cane,  corn, citrusfruit, livestock, wood, pineapple, cotton, tobacco.  Cultivatedland--16% (crops plus commercial forests).Manufacturing (18% of GNP):  Types--sugar refining, lightmanufactured goods, woodpulp, textiles, ginned cotton, processedfoods, beverages, consumer goods.Trade (1991 est.):  Exports--$575 million:  sugar, soft drinkconcentrate, woodpulp, wood products, manufactures, canned fruit,asbestos, citrus, vegetables, meat and meat products.  Majormarkets--South Africa, Canada, EEC, US.  Imports (1991est.)--$637 million:  motor vehicles, heavy machinery, fuel andlubricants, foodstuffs, clothing.  Major suppliers--South Africa,UK, Japan, Germany.Official exchange rate: 1 lilangeni (pl. emalangeni)= 1 SouthAfrican rand; 3.1 emalangeni=US$1 (1992 average).PEOPLETraditionally, Swazis have been subsistence farmers and herders;a number are now working in the growing formal economy and ingovernment.  Some work in mines in South Africa.Christianity in Swaziland is sometimes mixed with traditionalbeliefs and practices.  Most Swazis ascribe a special spiritualrole to the monarch.The country's official languages are SiSwati (an Nguni languagerelated to Zulu) and English.  Government and commercial businessis conducted mainly in English.HISTORYAccording to tradition, the people of the present Swazi nationmigrated south before the 16th century to what is now Mozambique.Following a series of conflicts with people living in the area ofmodern Maputo, the Swazis settled in northern Zululand in about1750.Unable to match the growing Zulu strength, the Swazis movedgradually northward in the early 1800s and established themselvesin the area of modern Swaziland.  They consolidated their holdunder several able leaders.  The most important was Mswati II,from whom the Swazis derive their name.  Under his leadership inthe 1840s, the Swazis expanded their territory to the northwestand stabilized the southern frontier with the Zulus.Swazi contact with the British came early in Mswati's reign, whenhe asked British authorities in South Africa for assistanceagainst Zulu raids into Swaziland.  During Mswati's reign, thefirst whites settled in the country.Following Mswati's death, the Swazis reached agreements withBritish and South African authorities over a range of issues,including independence, claims on resources by Europeans,administrative authority, and security.  The Swazi interests wereadministered from 1894 to 1903 by South Africans.  In 1903, theBritish assumed control.In 1921, Swaziland established its first legislative body--anadvisory council of elected white representatives mandated toadvise the British High Commissioner on non-Swazi affairs.  In1944, the high commissioner conceded that the council hadofficial status and recognized the paramount chief, or king, asthe native authority for the territory to issue legallyenforceable orders to the Swazis.In 1921, after more than 20 years of rule by Queen RegentLabotsibeni, Sobhuza II became Ngwenyama (the lion) or head ofthe Swazi nation.In the early years of colonial rule, the British expected thatSwaziland would eventually be incorporated into South Africa.After World War II, however, South Africa's intensification ofracial discrimination induced the United Kingdom to prepareSwaziland for independence.Political activity intensified in the early 1960s.  Severalpolitical parties formed, and jostled for independence andeconomic development.  The largely urban parties had few ties tothe rural areas, where the majority of Swazis lived.  Thetraditional Swazi leaders, including King Sobhuza and hiscouncil, formed the Imbokodvo National Movement (INM), apolitical group that capitalized on its close identification withthe traditional Swazi way of life.  Responding to pressures forpolitical reform, the colonial government scheduled an electionin mid-1964 for the first legislative council in which the Swaziswould participate.  In the election, the INM and four otherparties, most having more radical platforms, competed in theelection.  The INM won all 24 elective seats.Having solidified its political base, the INM incorporated manydemands of the more radical parties, especially that of immediateindependence.  In 1966, the UK Government agreed to discuss a newconstitution.  A constitutional committee agreed on aconstitutional monarchy for Swaziland, with self-government tofollow parliamentary elections in 1967.  Swaziland becameindependent on September 6, 1968.Swaziland's first post-independence elections were held in May1972.  The INM received about 75% of the vote.  The NgwaneNational Liberatory Congress (NNLC) received slightly more than20% of the vote and 3 seats in Parliament.In response to the NNLC votes, King Sobhuza repealed the 1968constitution on April 12, 1973, and dissolved parliament. Heassumed all powers of government and prohibited all politicalparties and trade unions from operating.  He justified hisactions as having removed alien and divisive political practicesincompatible with the Swazi way of life.  In January 1979, a newparliament was convened, chosen partly through indirect electionsand partly through direct appointment by the king.King Sobhuza died in August 1982, and Queen Regent Dzeliweassumed the duties of Head of State.  In 1983, an internaldispute led to the replacement of the prime minister and theeventual replacement of Dzeliwe by a new Queen Regent Ntombi.Ntombi's son, Prince Makhosetive, was named heir to the Swazithrone.  Real power at this time was concentrated in the Liqoqo,a traditional advisory body which claimed to give binding adviceto the Queen Regent.  In October 1985, Queen Regent Ntombidemonstrated her power by dismissing the leading figures of theLiqoqo.  Prince Makhosetive returned from school in England toascend the throne and help end the continuing internal disputes.He was enthroned as Mswati III in April 1986.  Shortly afterward,he abolished the Liqoqo.  In November 1987, a new parliament waselected and a new cabinet appointed.  The present Prime Minister,appointed in 1989, is Obed Dlamini, a former trade unionist.In 1988 and 1989, an underground political party, the People'sUnited Democratic Movement (PUDEMO) emerged and clandestinelycriticized the King and the government, calling for democraticreforms.  In response to this political threat and to growingpopular calls for greater accountablity in government, the Kingand the Prime Minister , in 1990, initiated an ongoing nationaldebate on the constitutional and political future of Swaziland.This debate produced a number of political reforms, approved bythe King, including direct and secret election of legislativerepresentatives.  These reforms, an incremental advance fordemocracy in Swaziland, were incorporated into preparations fornational elections scheduled for June/July 1993.GOVERNMENT AND POLITICAL CONDITIONSAccording to Swazi law and custom, the monarch holds supremeexecutive, legislative, and judicial power.  In general practice,the monarch's power is delegated through a dualistic system:modern, statutory bodies, like the cabinet, and less formal,traditional governmental structures.  At present, parliamentconsists of a 50-member House of Assembly (40 chosen throughindirect election and 10 appointed by the King) and a 20-memberSenate (10 elected by the House of Assembly and 10 appointed bythe King).  Legislation passed by the parliament must be approvedby the King.  Executive authority is exercised by a royallyappointed prime minister (head of government) and cabinet.For local administration, Swaziland is divided into four regions,the administrators of which are appointed by the King.  Manzini,Mbabane, and two other towns have municipal governments.Parallel to this statutory government structure is a traditionalsystem consisting of the King and his traditional advisers,traditional courts, and 40 Tinkhundla (subregional districts inwhich the traditional chiefs are grouped).In 1992, the King appointed a committee to represent across-section of Swazi political opinion, including comments fromthe public at large.  The committee recommended (and the Kingapproved) a number of significant reforms of the electoralprocess (to include direct election of parliament in mid-1993),the Tinkhundla system, and the national government.  Severalmeasures remain in force, however, that could stifle furtherpolitical liberalization.  Chief among them are the arbitrarydetention powers of the government and the ban on politicalparties.Principal Government OfficialsHead of State--King Mswati IIIPrime Minister--Obed M. DlaminiForeign Affairs--George MambaAmbassador to the United States--Absalom Vusani MambaAmbassador to the United Nations--Dr. Timothy DlaminiSwaziland maintains an embassy in the US at Suite 441, Van NessCenter, 4301 Connecticut Avenue NW, Washington, DC 20008(202-362-6683).  Swaziland's UN Mission is at 866 UN Plaza, NewYork, NY 10017 (212 371-8910).ECONOMYSwaziland ranks among the more prosperous countries in Africa.Most of the high-level economic activity is in the hands ofnon-Africans, but ethnic Swazis are becoming more active smallentrepreneurs and are moving into middle-management positions.Although about 70% of Swazis live in rural areas, nearly everyhomestead has a wage earner.  Despite several years of strongeconomic growth, however, the economy has been unable to createjobs at the same pace that new job seekers enter the market. Thisis due in large measure to the country's high 3.4% populationgrowth rate, which also strains the country's natural heritageand its ability to provide adequate social services, such ashealth care and education.About 57% of Swazi territory is held by the Crown in trust forthe Swazi nation.  The balance is privately owned, much of it byforeigners.  The question of land use and ownership remains asensitive one.For Swazis living on rural homesteads, the principal occupationis subsistence farming (principally maize) and livestock herding.Cash crops such as cotton are also grown. Culturally, cattle areimportant symbols of wealth and status, but they are being usedincreasingly for milk, meat, and profit.Swaziland enjoys well-developed road links with South Africa.  Italso has railroads running east to west and north to south.  Theolder east-west link, called the Goba Line, makes it possible toexport bulk goods from Swaziland through the port of Maputo inMozambique.  Until recently, most of Swaziland's exports wereshipped through this port.  Conflict in Mozambique over the pastfew years has diverted many Swazi exports to ports in SouthAfrica.  A north-south rail link, completed in 1986, provides aconnection between the eastern Transvaal rail network and theSouth African ports of Richard's Bay and Durban.The sugar industry, based solely on irrigated cane, isSwaziland's leading export earner and private-sector employer.Soft-drink concentrate (a US investment) is the country's secondlargest export earner, followed by woodpulp and lumber fromcultivated pine forests.  Pineapple, citrus fruit, and cotton areother important agricultural exports.Swaziland currently mines asbestos, coal, and diamonds, almostall for export.  There is also a quarry industry for domesticconstruction.  Mining typically contributes just under 3% toSwaziland's GDP each year.Recently, a number of industrial firms have located at theindustrial estate at Matsapha, near Manzini.  In addition toprocessed agricultural and forestry products, the fast-growingindustrial sector at Matsapha also produces garments, textiles,and a surprising variety of light manufactures.  The SwazilandIndustrial Development Corporation (SIDC) has assisted inbringing many of these industries to the country.  Governmentprograms encourage Swazi entrepreneurs to run small andmedium-sized firms.  Tourism is also important, attracting morethan 270,000 visitors annually.From the mid-1980s onward, foreign investment in themanufacturing center has boosted economic growth ratessignificantly.  Moreover, since mid-1985, the depressed value ofthe currency has increased the competitiveness of Swazi exportsand moderated the growth of imports, generating trade surpluses.The country has run small trade deficits for the past 3 years,however.  South Africa and the European Community are majorcustomers for Swazi exports, and the US is a significant marketfor Swazi sugar, with purchases of 32,500 metric tons in 1991.Swaziland, Lesotho, Botswana, Namibia, and the Republic of SouthAfrica form the Southern African Customs Union (SACU), in whichimport duties apply uniformly to member countries. Swaziland,Lesotho, Namibia, and South Africa are also joined in the CommonMonetary Area (CMA), in which the free transfer and unrestricteduse of funds are permitted.  Swaziland issued its own currency,the lilangeni (emalangeni in the plural) in September 1974.  Thelilangeni, while not tied to the rand, at present trades at parwith it.FOREIGN RELATIONSSwaziland is a member of the UN and the Organization of AfricanUnity.  More than 40 countries have accredited ambassadors to theKingdom, although only 6 have resident representatives.Swaziland maintains diplomatic missions in Brussels (EEC),London, Denmark, Seoul, Ottawa, Maputo, Nairobi, New York (UN),and Washington, DC.Because of its location, Swaziland has close economic ties withSouth Africa; 15-20,000 Swazis work there in mines, industries,and farms.  Roughly 90% of Swaziland's imports either originatein or transit through South Africa.  Although diplomaticrepresentatives have not been exchanged, a South African TradeCommissioner is resident in Mbabane.US-SWAZI RELATIONSThe United States seeks to maintain and strengthen the goodbilateral relations that have existed since the Kingdom ofSwaziland became independent in 1968.  US policy there stressescontinued economic and political development.In the past, the US has assisted Swaziland in institutional andhuman resource development, agricultural development, and theexpansion of the rural health and rural water systems. Presently,it continues to focus on education and job-training but hasexpanded into other important areas, such as private sectordevelopment, family planning, and the development of a morejob-relevant primary school curriculum.  The US brings an averageof 22 Swazi students and professionals to the US each year, fromboth the private and public sectors, primarily for master's anddoctorate degrees.  Some 70 Peace Corps volunteers work inSwaziland, principally as secondary school science and mathteachers.Principal US OfficialsAmbassador--Stephen H. RogersDeputy Chief of Mission--Philip M. JonesDirector, AID Mission--Valerie Dickson-HortonDirector, Peace Corps--James KelleyThe US embassy in Swaziland is in the Central Bank Building,Warner Street, PO Box 199, Mbabane.Travel NotesCustoms:  US citizens do not need visas to enter Swaziland.Climate:  Swaziland's climate is moderate, similar to that of themiddle Atlantic states but drier and with the seasons reversed.Health:  Adequate medical care is available in Swaziland forroutine illnesses.  Serious illnesses and accidents must betreated in South Africa or elsewhere.  Tapwater should be boiledor filtered.  The climate is basically healthful.  Travelersshould consult most recent information.Telecommunications:  International and local telephone andtelegraph services are available.  Mbabane is seven time zonesahead of eastern standard time.Transportation:  Regular air service to and from MatsaphaAirport, near Mbabane and Manzini, links Swaziland with majorinternational routes.  Taxis and rental cars are available at theairport and in Mbabane.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of Public Communication -- Washington,DC -- April 1993 -- Editor:  Anita M. StockmanDepartment of State Publication 8174Background Notes Series -- This material is in the public domainand may be reprinted without permission; citation of this sourceis appreciated.For sale by the Superindendent of Documents, US GovernmentPrinting Office, Washington , DC 20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: SURINAMEPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of SurinamePROFILEGeographyArea:  163,265 sq. km. (63,037 sq. mi.); slightly larger than Georgia.Cities:  Capital--Paramaribo (pop. 180,000).  Other towns--Nieuw Nickerie, Moengo.Terrain:  Varies from coastal swamps to savanna to hills.Climate:  Tropical.PeopleNationality:  Noun--Surinamer(s).  Adjective--Surinamese.Population (1992):  438,000.Annual growth rate (1992):   1%.Ethnic groups:  Hindustani (East Indian) 37%, Creole 31%, Javanese 15%, Bush Negro 10%, Amerindians 3%, Chinese 1.7% (percentages date from 1972 census, the last in which ethnicity data was collected).Religions:  Hindu, Muslim, Roman Catholic, Dutch Reformed, Moravian and several other Christian groups, Jewish, Baha'i.Languages:  Dutch (official), English, Sranan Tongo (Creole language), Hindustani, Javanese.Education:  Compulsory--ages 6-12. Literacy--90%.Health:  Infant mortality rate (1991)--38/1,000.  Life expectancy (1991)--68.2 years.Work Force (100,000):  Government--49%.  Private sector--35%.  Parastatal companies--16%.GovernmentType:   Constitutional democracy.Constitution:   September 1987.Independence:  November 25, 1975.Branches:  Executive--president, vice president, Council of Ministers.  Legislative--elected 51-member National Assembly made up of representatives of political parties.  Judicial--Court of Justice.Administrative subdivisions:  10 districts.Political Parties:  Ruling Coalition--The New Front Coalition (NFC):  National Party of Suriname (NPS), Indonesian Peasant's Party (KPTI), Suriname Labor Party (SPA), and Progressive Reform Party (VHP).  Other parties in National Assembly--Alternative Forum (AF), Reformed Progressive, Party for Brotherhood and Unity in Politics (HPP), Pendawalima, Independent Progressive Group (BEP), New Democratic Party (NDP), Democratic Party (DP).Suffrage:  Universal at 18.Economy (1992)GDP:  $545 million.Annual growth rate:  -2.4%.Per capita GDP:  $1,200.Natural resources:   Bauxite, gold, iron ore, and other minerals; forests; hydroelectric potential; fish and shrimp.Agriculture:   Products--rice, palm oil, bananas, timber, and citrus fruits.Industry:   Types--aluminum, alumina, processed food, lumber, bricks, tiles, cigarettes, and glass.Trade:  Exports--$105 million:   bauxite, alumina, aluminum, wood and wood products, rice, bananas, and shrimp.  Major markets--U.S., Netherlands, EU, and other European countries.  Imports--$105 million:  capital equipment, petroleum, iron and steel products, agricultural products, and consumer goods.  Major suppliers--U.S., Netherlands, EU, Brazil, Caribbean countries.Exchange rate:  400 guilders=U.S. $1.PEOPLEMost Surinamers live in the narrow, northern coastal plain.  The population is one of the most ethnically varied in the world.  Each ethnic group preserves its own culture, and many other institutions, including political parties, tend to follow ethnic lines.  Informal relationships vary--the upper classes of all ethnic groups mix freely; outside of the elite, social relations tend to remain within ethnic groupings.  All groups may be found in the schools and workplace.HISTORYArawak and Carib tribes lived in the region before Columbus sighted the coast in 1498.  Although Spain officially claimed the area in 1593, the Portuguese and Spanish explorers of the 16th century gave the area little attention:  Gold had not yet been discovered there, and transportation was difficult.  Dutch settlement began in 1616 at the mouths of several rivers between present-day Georgetown, Guyana, and Cayenne, French Guiana.Suriname became a Dutch colony in 1667.  The new colony--Dutch Guiana--did not thrive.  Historians cite several reasons for this, including Holland's preoccupation with its more extensive (and profitable) East Indian territories, violent conflict between whites and native tribes, and frequent uprisings by the slave population, which was often treated with extraordinary cruelty.  Barely, if at all, assimilated into Western society, many of the slaves fled to the interior, where they resumed a West African culture and established the five major Bush Negro tribes in existence today:  the Djuka, Saramaccaner, Matuwari, Paramaccaner, and Quinti.Plantation farming steadily declined in importance as labor costs rose.  Rice, bananas, and citrus fruits replaced the traditional crops of sugar, coffee, and cocoa.  Exports of gold rose notably, however, beginning in 1900.  The Dutch Government gave little financial support to the colony.Suriname's economy was transformed in the years following World War I, when an American firm (Alcoa) began exploiting bauxite deposits in East Suriname.  Bauxite processing and then alumina production began in 1941.  This was of considerable importance during World War II, when over 75% of U.S. bauxite imports came from Suriname.  The U.S. stationed troops there during the war.Beginning in 1951, Suriname began to acquire an increasing measure of autonomy from the Netherlands.  On December 15, 1954, Suriname became an autonomous part of the Kingdom of the Netherlands and gained independence on November 25, 1975.Most of Suriname's political parties took shape during the autonomy period and were overwhelmingly based on ethnicity.  For example, the Nationale Partij Suriname (NPS) found its support among the Creoles, the Veruitstrevended Hervormd Partij (VHP) gained its backers from the Hindustani population, and the Indonesian Peasant's Party (or KTPI in Javanese) was based upon the Javanese group.  Other, smaller parties found limited support by appealing to the voters on a more strictly ideological or pro-independence line; the Partij Nationalistische Republiek (PNR) was among the most important.  Its members pressed most strongly for independence and for the introduction of leftist political and economic measures.  Many former PNR members would go on to play a key role following the post-independence coup of February 1980.Independence, "Revolution," And DemocracySuriname was a working parliamentary democracy in the years immediately following independence, when Henk Arron became the first Prime Minister and was reelected in 1977.  On February 25, 1980, the elected government was overthrown by 16 noncommissioned officers.  The military-dominated government then suspended the constitution, dissolved the legislature in August, and formed a regime which ruled by decree.  Although a civilian filled the post of president, a military man, Desi Bouterse, actually ruled the country.Throughout 1982, pressure grew for a return to civilian rule.  To end this threat, the military ordered drastic action.  Early in December 1982, the military authorities arrested and killed 15 prominent opposition leaders, including journalists, lawyers, and trade union leaders.Following the murders, the United States and the Netherlands suspended all economic and military cooperation with the Bouterse regime, which increasingly began to follow an erratic but generally leftist-oriented political course.  Economic decline rapidly set in after the suspension of economic aid from the Netherlands.  The regime also restricted the press and limited the rights of its citizens.The continued economic decline brought pressure for change.  During the 1984-87 period, the regime attempted to end the crisis through a succession of nominally civilian-led cabinets.  Many figures in the government came from the traditional political parties which had, in effect, been shoved aside during the coup.  The military eventually agreed to free elections in 1987, a new constitution, and a civilian government.  Ramsewak Shankar was elected President, and Henk Arron was elected Vice President.Another pressure for change had erupted in July 1986, when the Maroon or Bush Negro insurgency, led by former soldier Ronnie Brunswijk, began attacking economic targets in the country's interior.  In response, the army ravaged villages and killed suspected Brunswijk supporters.  Thousands of Bush Negroes fled to nearby French Guiana.  In an effort to end the bloodshed, the Surinamese Government negotiated a peace treaty, called the Kourou accord, with Brunswijk in 1989.  Commander Bouterse and other military leaders did not support this accord and blocked its implementation.On December 24, 1990, military officers forced the resignations of the President and Vice President elected in 1987.  Military-selected replacements were hastily approved by the National Assembly on December 29.  Faced with mounting pressure from the U.S. and other nations and international organizations, however, the government held new elections on May 25, 1991.  The New Front Coalition, comprised of the National Party of Suriname (NPS), the Progressive Reform Party (VHP), the Indonesian Peasant's Party (KTPI), and the Surinamese Labor Party (SPA), were able to win a majority.  The New Front Coalition and another pro-democracy coalition, the Democratic Alternative '91 (which won 9 seats), also controlled more than the two-thirds majority in the National Assembly required to elect Suriname's next president.On September 6, 1991, the People's Assembly, consisting of the National Assembly plus other elected representatives of districts and subdistricts, elected President Runaldo Ronald Venetiaan and Vice President Jules Ajodhia to five-year terms in office.  The government was able to effect a settlement to Suriname's domestic insurgency as a result of the August 1992 peace accord with Bush Negro and Amerindian insurgents.In April 1993, Desi Bouterse was replaced as Commander of the Armed Forces by Arthy Gorre, a military officer committed to bringing the armed forces under the control of the democratically elected government.  Despite these successes, public opinion polls conducted in August 1994 indicated that the New Front Coalition was losing support, at least in part because of the weak performance of the economy.GOVERNMENTThe Republic of Suriname is a constitutional democracy based on the 1987 constitution.  The legislative branch of government consists of a 51-member unicameral National Assembly, popularly elected for a five-year term.  The next election is in May 1996 for the entire Assembly.The executive branch is headed by the president, who is elected by a two-thirds majority of the National Assembly for a five-year term.  If the National Assembly cannot get two-thirds of its members to vote for one candidate, a People's Assembly is formed from all assembly delegates, regional and municipal representatives of the population who have been elected by popular vote.  A simple majority of this group may also elect the president in lieu of the National Assembly.  A vice president, normally elected at the same time as the president, needs only a simple majority in the National Assembly to be elected for a five-year term.  As head of the government, the president has a 16-minister cabinet that he appoints. There is no constitutional provision for removal or replacement of the president unless he resigns.  A State Advisory Council of 14 members advises the president in the conduct of policy.  Eleven of the 14 seats are allotted by proportional representation of all political parties represented in the National Assembly.  The vice president chairs the council and three representatives of  workers and employers organizations hold the rest of the seats.  The judiciary is headed by the Court of Justice (Supreme Court).  This court supervises the magistrate courts.  Members are appointed for life by the president in consultation with the National Assembly, the State Advisory Council and the National Order of Private Attorneys.The republic is divided into 10 administrative districts headed by a district commissioner appointed by the president.  The commissioner is similar to the governor of a U.S. state but serves at the president's pleasure. National SecuritySurinamese armed forces consist of the national army under the control of Commander Arthy Gorre and Defense Minister Siegfried Gilds and a much smaller civil police force which is responsible to the minister of justice.  The national armed forces comprise some 2,500 personnel, the majority of whom are deployed as light infantry security forces.  A small air force and navy/coast guard also exist.  The Netherlands has provided limited military assistance to the Surinamese armed forces since the election of a democratic government in 1991.  Suriname is pursuing regional military cooperation through bilateral agreements and exercises with Brazil, Venezuela, Guyana, French Guiana, Curacao, and the U.S.Principal Government OfficialsPresident--Runaldo Ronald VenetiaanVice President--Jules AjodhiaForeign Minister--Subhas MungraAmbassador to U.S. and OAS--Willem A. UdenhoutAmbassador to UN--Kriesnadath Nandoe Suriname maintains an embassy in the United States at 4301 Connecticut Ave, NW, Suite 108, Washington, DC 20008 (tel. [phone]).  There is a consulate general at 7235 NW 19th St., Suite A, Miami, Fl 33136 (tel. [phone]).ECONOMYThe backbone of Suriname's economy is the export of alumina and small amounts of aluminum produced from bauxite mined in the country.  Alumina and aluminum exports account for about 85% of Suriname's export earnings.  Suriname's bauxite deposits have been among the world's richest--although greater amounts of shale must be removed than at deposits in Guinea and Australia.Mining sites at Moengo and Paranam are estimated to have bauxite reserves for another 10 to 15 years.  All bauxite mined in Suriname is brought via navigable rivers and the Atlantic to the Suriname Aluminum Company's (SURALCO) alumina refinery and aluminum smelter in Paranam.  In 1984, SURALCO, a subsidiary of the Aluminum Company of America (ALCOA), entered into a joint venture with the Royal Dutch Shell-owned Billiton Company, which did not process the bauxite it mined.  Under this agreement, they share risks and profits.Inexpensive power costs are Suriname's big advantage in the energy-intensive alumina and aluminum business.  Alcoa built a $150-million dam for the production of hydroelectric energy at Afobaka (south of Brokopondo), which created a 1,550-square kilometer (600 sq. mi.) lake, one of the largest artificial lakes in the world.Suriname also is an exporter of rice, shrimp, timber, bananas, fruits, and vegetables.  It formerly exported palm oil.  All of these exports declined in 1989, due to lack of competitiveness of Suriname's products and also to insurgencies in the interior, which effectively closed access to timber and to most palm oil plantations.  Deteriorating infrastructure and lack of spare parts are additional constraints worsened by a skewed exchange rate.At independence, Suriname signed an agreement with the Netherlands providing for about $1.5 billion in development assistance grants and loans over a 10- to 15-year period.  Dutch assistance allocated to Suriname thus amounted to about $100 million per year.  Dutch transitional aid ended in February 1990.  To date, Suriname has had access to only a fraction of Dutch aid because of Dutch insistence that Suriname undertake structural economic reforms and produce specific plans acceptable to the Dutch for projects on which aid funds could be spent.Despite the lack of Dutch balance-of-payments support, Suriname has been able to embark on development projects in the areas of petroleum production expansion and a mini-refinery project for Staatsolie, the state-owned oil company.  In addition, Suriname has attracted investments by international companies in the areas of gold exploration and exploitation (Golden Star Resources) as well as in the tropical hardwoods industry (MUSA, Berjaja).  Exploitation of the country's tropical forests has raised environmental concerns both in Suriname and abroad, however.In the 1980s, as Suriname's economic situation deteriorated due to the cutoff of Dutch development aid, the government instituted a regime of stringent economic controls over prices, the exchange rate, imports, and exports.  The policy resulted in a reduction of activity in the officially controlled market.  Meanwhile, the tolerated black market grew considerably, at one point accounting for an estimated 85% of all imports.  The New Front Coalition began to move toward a comprehensive structural adjustment program (SAP) in 1991.Progress has been slow, but the government has eliminated some licensing requirements and, in 1993, allowed currency to be exchanged on a legalized free market comprising banks and exchanges.  In July 1994, the government took another step toward economic adjustment by unifying the multiple exchange rates applicable in various sectors of the economy at the rate of 180 guilders per U.S. dollar, and resolved to phase out expensive government subsidies on gasoline and a number of consumer goods.  The government's inability to bring its sizeable deficit under control, and its expansionary financing of the deficit through money creation, led to a rapid increase in inflation (to about 300% in 1993) and a dramatic fall in the parallel market value of the Surinamese guilder (from an official rate of 1.78 guilder per U.S. dollar in 1991 to 400 guilders per U.S. dollar in November 1994).Vestiges of the economic policies of the 1980s remain in the form of price controls and subsidies and the existence of numerous parastatal companies in nearly every economic sector.  By 1994, about half of the work force was still directly or indirectly on the government payroll.  FOREIGN RELATIONSSince gaining independence, Suriname has become a member of the United Nations, the Organization of American States, and the Non-Aligned Movement.  In 1994, Suriname began to participate in the Caribbean Community and Common Market (CARICOM) on political issues and became a member of the Association of Caribbean States (ACS); it is associated with the European Union through the Lome Convention.  Suriname participates in activities of both the Andean and Amazonian Pact countries and, reflecting its status as a major bauxite producer, is a member of the International Bauxite Association.  The country also belongs to the Economic Commission for Latin America (ECLA), the Inter-American Development Bank (IDB), the International Finance Corporation (IFC), the World Bank, and the International Monetary Fund (IMF).President Venetiaan's government is trying to raise Suriname's profile in the international community and especially within the region.  State visits to countries in and outside of the region have contributed to this effort, as have Suriname's recent charter membership in the ACS and associate membership in CARICOM on political issues.  Bilateral agreements with several of these countries, covering diverse areas of cooperation, have further underscored the government's determination to strengthen its regional ties.  The return to Suriname from French Guiana of about 8,000 refugees from the 1986-91 civil war between the military and domestic insurgents has improved relations with French authorities.  Long-standing border disputes with Guyana and French Guiana remain unresolved but have not negatively affected relations with either country.  An earlier dispute with Brazil ended amicably after formal demarcation of the border.U.S.-SURINAMESE RELATIONSSince the re-establishment of a democratic government, the United States has maintained positive and mutually beneficial relations with Suriname based on the principles of democracy, respect for human rights, rule of law, and civilian authority over the military.  Cooperation with the Suriname Government in the area of anti-narcotics activities has increased, and Suriname's efforts to liberalize economic policy have created new possibilities for U.S. investments.  Suriname strongly backed efforts by the United States to implement UN Security Resolution 940 designed to facilitate the departure of Haiti's de facto authorities from power. Suriname agreed to the construction of a safehaven for Haitian refugees. Principal U.S. Embassy OfficialsAmbassador--Roger R. GambleDeputy Chief of Mission--Ruth M. Van HeuvenDefense Attache--Lt. Col. Leocadio Muniz, U.S. ArmyPolitical Officer--Daniel F. ChristiansenEconomic/Commercial Officer--Kathleen A. MorenskiConsular Officer--David RenzPolitical Regional Affairs Officer--Robert V. MatthewsThe U.S. embassy in Paramaribo is located at Dr. Sophie Redmondstraat 129, P.O. Box 1821, Paramaribo, Suriname (tel. 472900, 476459; FAX [phone]).  (###)</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  SUDANOfficial Name:  Republic of the SudanPROFILEPeopleNationality:  Noun and adjective-Sudanese (sing. and pl.).Population (1989 est.):  25 million; 25% urban.  Annual growth rate(1987 est.): 3%.  Ethnic groups:  Arab-African, black African.Religions:  Islam, indigenous beliefs (southern Sudan), Christianity.Language:  Arabic (official), English, tribal languages.  Education:Years compulsory-9.  Attendance-50%.Literacy-20%.  Health:  Infant mortality rate-112/1,000.  Lifeexpectancy-49 yrs.  Work force (6 million, 1982):  Agriculture-78%.Industry and commerce-10%.  Government-6%.GeographyArea:  2.5 million sq. km. (967,500 sq. mi.); almost one-third size ofcontinental US.  Cities:  Capital-Khartoum.  Other cities-Port Sudan,Kassala, Kosti, Juba (capital of southern region).  No currentaccurate population statistics available.  Terrain:  Generally flat withmountains in east and west.  Climate:  Desert in north to tropical insouth.GovernmentType:  Military dictatorship.  Independence:  January 1, 1956.Constitution: 1985 provisional constitution amended, now suspended.Branches:  Executive authority is shared by the 15-memberRevolutionary Command Council (RCC) and the cabinet.  TheChairman of the RCC is concurrently chief of state (president) andprime minister.  Judicial-Supreme Court, attorney general, civil,shari'a (Islamic), special revolutionary courts, and tribal courts;special investigative commissions.Administrative subdivisions:  5 northern regions, 3 southern regions;each region, 2 or more provinces.Political parties:  All political parties banned following June 30, 1989,military coup.Central government budget (1990 est.):  $1.5 billion.Defense (1990  est.):  30% of GNP.Flag:  Horizontal red, white, and black stripes with green triangle onstaff side.EconomyGDP (1988 est.):  $9 billion. GDP Annual growth rate (1990 est.):0.0%.Per capita income GDP (1990 est.):  $300.  Avg. annual inflation rate(1989): 75%, (1990 est.) 45%.Natural resources:  Modest reserves of oil, iron ore, copper, chrome,and other industrial metals.Agriculture (40% of GNP):  Products-cotton, peanuts, sorghum,sesame seeds, gum arabic, sugar cane, livestock.Industry:  Types-textiles, cement, cotton ginning, edible oil and sugarrefining.Trade (1988 est.):  Exports-$550 million:  cotton, sorghum, peanuts,gum arabic, sesame seeds.  Major markets-Egypt, Persian Gulfstates, Saudi Arabia.  Imports-$1 billion:  oil and petroleum products,wheat, agricultural inputs and machinery, industrial inputs andmanufactured goods.  Major suppliers-Saudi Arabia, Egypt, Gulfstates.Official exchange rates:  4.5 Sudanese pounds (SL)=US$1; officialcommercial rate is SL 12=US$1.  Fiscal year:  July 1-June 30.Membership in  International OrganizationsUN and several of its specialized and related agencies, Arab League,Organization of African Unity (OAU), Organization of the IslamicConference (OIC), Non-Aligned Movement, Group of 77.PEOPLEIn Sudan's 1981 census, the population was calculated at 21 million.Current estimates range to 25 million.  The population of metropolitanKhartoum (including Khartoum, Omdurman, and Khartoum North) isgrowing, and ranges from 3-4 million, including over 1 milliondisplaced persons from the southern war zone.Sudan has two distinct cultures-Arab and black African-and effectivecollaboration between them is a major problem.The five northern regions cover most of Sudan and include mosturban centers.  Most of the estimated 18 million Sudanese who livein this area are Arabic-speaking Muslims.  Among these are severaldistinct tribal groups; the Kababish of northern Kordofan, acamel-raising people; the Jaalin and Shaigiyya groups of settledtribes living along rivers; the semi-nomadic Baggara of Kordofan andDarfur; the Hamitic Beja in the Red Sea area and Nubians of thenorthern Nile area, some of whom have been resettled on the AtbaraRiver; and the Negroid Nuba of southern Kordofan and Fur in thewestern reaches of the country.The southern region has a population of about 4-6 million and apredominantly rural, subsistence economy.  Here the Sudanesepractice mainly indigenous, traditional beliefs, although Christianmissionaries have converted some.  The south also contains manytribal groups and uses many more languages than the north.  TheDinka (pop. 1 million or more) is the largest of the many blackAfrican tribes in Sudan.  Along with the Shilluk and the Nuer, they areamong the Nilotic tribes.  The Azande, Bor, and Jo Luo are "Sudanic"tribes in the west, and the Acholi and Lotuhu live in the extremesouth, extending into Uganda.HISTORYSudan was a collection of small, independent states from thebeginning of the Christian era until 1820-21, when Egypt conqueredand unified the northern portion of the country.  Although Egyptclaimed all of present Sudan during most of the 19th century, it wasunable to establish effective control of southern Sudan, whichremained an area of fragmented tribes subject to frequent attacks byslave raiders.In 1881, a religious leader named Muhammad Ahmed ibn Abdallaproclaimed himself the Mahdi, or "expected one," and began to unifytribes in western and central Sudan.  His followers took on the name"Ansars," which they continue to use today. Taking advantage ofconditions resulting from Ottoman-Egyptian exploitation andmal-administration, the Mahdi led a nationalist revolt culminating inthe fall of Khartoum in 1885.  The Mahdi died shortly thereafter, buthis state survived until overwhelmed by an Anglo-Egyptian forceunder Kitchener in 1898.  Sudan was proclaimed a condominium in1899 under British-Egyptian administration.  While maintaining theappearance of joint administration, the British formulated policies,and supplied most of the top administrators.IndependenceIn February 1953, the United Kingdom and Egypt concluded anagreement providing for Sudanese self-government andself-determination.  The transitional period toward independencebegan with the inauguration of the first parliament in 1954.  With theconsent of the British and Egyptian governments, Sudan achievedindependence on January 1, 1956, under a provisional constitution.The United States was among the first foreign powers to recognizethe new state.The National Unionist Party (NUP), under Prime Minister Ismailel-Azhari, dominated the first cabinet, which was soon replaced bya coalition of conservative political forces.  In 1958, following a periodof economic difficulties and political maneuvering that paralyzedpublic administration, Chief of Staff Lt. Gen. Ibrahim Abboudoverthrew the parliamentary regime in a bloodless coup.Gen. Abboud did not carry out his promises to return Sudan tocivilian government, however, and popular resentment against armyrule led to a wave of riots and strikes in late October 1964 thatforced the military to relinquish power.The Abboud regime was followed by a provisional civiliangovernment until parliamentary elections in April 1965 led to acoalition government of the Umma and National Unionist Partiesunder Prime Minister Muhammad Ahmad Mahjoub.  Between 1966and 1969, Sudan had a series of governments that proved unableeither to agree on a permanent constitution or to cope with problemsof factionalism, economic stagnation, and ethnic dissidence.Dissatisfaction culminated in a second military coup on May 25,1969.  The coup leader, Col. Gaafar Muhhamad Nimeiri, becameprime minister, and the new regime abolished parliament andoutlawed all political parties.Disputes between Marxist and non-Marxist elements within the rulingmilitary coalition resulted in a briefly successful coup in July 1971, ledby the Sudanese Communist Party.  Several days later,anti-communist military elements restored Nimeiri to power.In 1976, the Ansars mounted a bloody but unsuccessful coupattempt.  In July 1977, President Nimeiri met with Ansar leader Sadiqal-Mahdi, opening the way for reconciliation.  Hundreds of politicalprisoners were released, and in August a general amnesty wasannounced for all opponents of Nimeiri's government.In September 1983, as part of an Islamicization campaign, PresidentNimeiri announced his decision to incorporate traditional Islamicpunishments drawn from the Shari'a (Islamic law) into the penalcode.  This was controversial even among Muslim groups.  Afterquestioning Nimeiri's credentials to Islamicize Sudanese society,Ansar leader Sadiq al-Mahdi was placed under house arrest.  OnApril 26, 1984, President Nimeiri declared a state of emergency, inpart to ensure that Shari'a was applied more broadly.  Mostconstitutionally guaranteed rights were suspended.  In the North,emergency courts later known as "decisive justice courts," wereestablished, with summary jurisdiction over criminal cases.Amputations for theft and public lashings for alcohol possessionwere common during the state of emergency.  Southerners andother non-Muslims living in the north were also subjected to thesepunishments.In September 1984, President Nimeiri announced the end of the stateof emergency and dismantled the emergency courts but soonpromulgated a new judiciary act which continued many of thepractices of the emergency courts.  Despite Nimeiri's publicassurances that the rights of non-Muslims would be respected,southerners and other non-Muslims remained deeply suspicious.Early 1985 saw serious shortages of fuel and bread in Khartoum, agrowing insurgency in the south, drought and famine, and anincreasingly difficult refugee burden.  In early April, during Nimeiri'sabsence from the country, massive demonstrations, first triggered byprice increases on bread and other staples, broke out in Khartoum.On April 6, 1985, senior military officers led by Gen. Suwar el Dahabmounted a coup.  Among the first acts of the new government wasto suspend the 1983 constitution and disband Nimeiri's SudanSocialist Union.  A 15-member transitional military council wasnamed, chaired by Gen. Suwar el Dahab.  In consultation with aninformal conference of political parties, unions, and professionalorganizations known as the "Gathering," the council appointed aninterim civilian cabinet, headed by Prime Minister Dr. El GizouliDefalla.Elections were held in April 1986, and the transitional military councilturned over power to a civilian government as promised.  Thegovernment, headed by Prime Minister Sadiq al Mahdi of the UmmaParty, consisted of a coalition of the Umma, DUP, and severalsouthern parties.  This coalition dissolved and reformed several timesover the next few years, with Sadiq al Mahdi and his Umma partyalways in a central role.During this period, the economy continued to deteriorate.  Whenprices of basic goods were increased in 1988, riots ensued, and theprice increases were cancelled.  The civil war in the south wasparticularly divisive (see "Civil Strife" below).  When Sadiq refused toapprove a peace plan reached by the DUP and the SudanesePeoples Liberation Army (SPLA) in November 1988, the DUP left thegovernment.  The new government consisted essentially of theUmma and the Islamic fundamentalist National Islamic Front (NIF).    In February 1989, the army presented Sadiq with an ultimatum:he could move toward peace or be thrown out.  He formed a newgovernment with the DUP and approved the SPLA/DUP agreement.On June 30, 1989, however, military officers under then-ColonelOmar al Bashir replaced the government with the RevolutionaryCommand Council for National Salvation (RCC), a junta comprisedof 15 military officers assisted by a civilian cabinet.  General al Bashiris president and chief of state, prime minister and chief of the armedforces.Civil StrifeIn 1955, southern resentment of northern domination culminated ina mutiny among southern troops in Equatoria Province.  For the next17 years, the southern region experienced civil strife, and varioussouthern leaders agitated for regional autonomy or outrightsecession.This chronic state of insurgency against the central government wassuspended early in 1972 after the signing of the Addis Ababaaccords granting southern Sudan wide regional autonomy on internalmatters, but a 1983 decree by President Nimeiri dividing the southinto three regions revived southern opposition and militantinsurgency.  After the 1985 coup, the new government rescinded thisdecree and made other significant overtures aimed at reconcilingnorth and south.  In May 1986, the Sadiq al Mahdi governmentbegan peace negotiations with the SPLA, led by Col. John Garangde Mabior  In that year the SPLA and a number of Sudanese politicalparties met in Ethiopia and agreed to the "Koka Dam" declaration,which called for abolishing Islamic law and convening a constitutionalconference.  In 1988, the SPLA and the DUP agreed on a peace plancalling for the abolition of military pacts with Egypt and Libya,freezing of Islamic laws, an end to the state of emergency, and acease-fire.  A constitutional conference would then be convened.Following an ultimatum from the armed forces in February 1989, theSadiq government approved this peace plan and engaged in severalrounds of talks with the SPLA.  A constitutional conference wastentatively planned for September 1989.  The military governmentwhich took over on June 30, 1989, however, repudiated theDUP-SPLA agreement and stated it wished to negotiate with theSPLA without preconditions.  Negotiating sessions in August andDecember 1989 brought little progress.    The SPLA is in control of large areas of Equatoria, Bahr al Ghazaland Upper Nile provinces and also operates in the southern portionsof Darfur, Kordofan and Blue Nile provinces.  The governmentcontrols a number of the major southern towns and cities, includingJuba, Wau, and Malakal.  An informal cease-fire in May broke downin October 1989, and fighting has continued since then.The ongoing civil war has displaced over 2 million southerners.Some fled into southern cities, such as Juba; others trekked as farnorth as Khartoum and even on into Ethiopia.  These people wereunable to grow food or earn money to feed themselves, andmalnutrition and starvation became widespread.Following an international outcry, the Sadiq al Mahdi government inMarch 1989 agreed with the UN and donor nations (including theUS) on a plan called Operation Lifeline Sudan (OLS), under whichsome 100,000 tons of food was moved into both government andSPLA-held areas in southern Sudan, and widespread starvation wasaverted.  OLS was suspended when the informal cease-fire brokedown in late 1989.  Following prolonged negotiations, Phase II ofOLS to cover 1990 was approved by both the government and theSPLA in March of 1990.  In 1991, Sudan faces a food shortageacross the entire country because of two consecutive years ofdrought; 7-9 million people are believed to be at risk, and over 1million tons of grain are needed.  The US, the UN, and other donorsare attempting to mount a coordinated international relief effort inboth northern and southern Sudan to meet this need.GOVERNMENTSince 1983 Sudan has been divided into five regions in the north andthree in the south, each headed by a governor.  Since the 1985coup, regional assemblies have been suspended.  Each region isnow under the control of a military governor.  All regions have limitedbudgetary powers and depend on the central government foreconomic support.  Khartoum province, comprising the capital andoutlying districts, is administered by a special commissioner. Principal Government OfficialsPresident, Prime Minister, and Chairman of the RevolutionaryCommand Council-Lt. Gen. Omar Hassan al BashirDeputy Prime Minister-Maj. Gen. Al Zubeir Muhammad SalihForeign Affairs-Ali SahloulAmbassador to the United States-Abdalla Ahmed AbdallaAmbassador to the UN-Maj. Gen. (ret.) Joseph LaguECONOMYSudan's primary resources are agricultural.  Although the country istrying to diversify its cash crops, cotton accounts for nearly 50% ofexport earnings.  Another large export crop is gum arabic, used inpharmaceuticals, food preparation, and printing, with Sudanproducing four-fifths of the world's supply.  Grain sorghum (dura) isthe principal food crop, and wheat is grown for domesticconsumption.  Other crops such as sesame seeds and peanuts arecultivated for domestic consumption and increasingly for export.Livestock production has vast potential, and many animals,particularly camels and sheep, are exported to Egypt, Saudi Arabia,and other Arab countries.The inadequate transportation system and the high cost of haulingagricultural products over great distances are major hindrances toeconomic development.  Sudan's only paved highways linkKhartoum to Port Sudan and the capital to Kosti and the White Nile.Completed in mid-1980, the Khartoum-Port Sudan road has greatlyincreased commerce between these cities.  Southern transportationis vulnerable to bad weather.  Programs are underway to improveroads in southern and western Sudan.At present, the country's transportation facilities consist of one4,800-kilometer (2,784-mi.), single-track railroad with a feeder line,supplemented by river steamers, Sudan Airways, and about 1,900km. (1,200 mi.) of paved or gravel roads.Sudan has made large investments in growing cotton under variousirrigation and pump plans, particularly the Gezira scheme, south ofKhartoum between the White and Blue Niles.  Rain-fed agriculture,primarily millet, sesame seeds, peanuts, and short-staple cotton, hashad uneven success; there is progress in developing the rain-fedareas for mechanized agriculture.  These lands are promising,provided the problems of transportation and irrigation to supplementrainfall can be resolved.Sudan's limited industrial development consists principally ofagricultural processing and various light industries located atKhartoum North.  Although Sudan is reputed to have great mineralresources, exploration has been quite limited, and the country's realpotential is unknown.  Small quantities of asbestos, chromium, andmica are exploited commercially.  Extensive petroleum explorationbegan in the mid-1970s and might eventually produce all of Sudan'sneeds.  Significant finds were made in the Upper Nile region, but theongoing civil war in that area has forced suspension of explorationand development activity there.Sudan has an installed electrical generating capacity of 300megawatts (MW), of which 180 MW is hydroelectric and the rest,thermal.  More than 70% of the hydropower comes from theRoseires Dam on the Blue Nile grid.  Various projects are underwayfor expanding Roseires power station and for developing thermal andother sources of energy.The United States, the Netherlands, Italy, Germany, Saudi Arabia,Kuwait, and other Organization of Arab Petroleum ExportingCountries  (OAPEC) nations traditionally have supplied most ofSudan's economic assistance.  Sudan's role as an economic linkbetween Arab and African countries is demonstrated by the locationin Khartoum of the Arab Bank for African Economic Development.The World Bank has been the largest source of development loans.Current investment by US companies, largely in oil exploration,exceeds $1 billion.Sudan will require extraordinary levels of program assistance anddebt relief to manage a foreign debt exceeding $13 billion, more thanthe country's entire annual GDP.  Since the late 1970s, the IMF,World Bank, and key donors have worked closely to promotereforms to counter the effect of inefficient economic policies andpractices.  By mid-1984 a combination of factors-including drought,inflation, and confused application of Islamic law-reduced donordisbursements, and capital flight led to a serious foreign-exchangecrisis and increasing shortages of imported inputs and commodities.The government fell out of compliance with the IMF standby programand accumulated substantial arrearages on repurchase obligationsto the IMF.  A     4-year economic reform plan was announced bythe Sadiq government in 1988 but was not pursued.  Thegovernment of General Omar al Bashir announced its own economicreform plan in 1989 and began implementing a 3-year economicrestructuring program on July 1, 1990, designed to reduce the publicsector deficit, end subsidies, privatize state enterprises, andencourage new foreign and domestic investment.  It appears unlikely,however, that the IMF, the World Bank and the donor nations will findthese steps sufficient to embark on a coordinated program forSudan.  Sudan remains the world's largest debtor to the IMF, withaccumulated arrears of over $1.3 billion.Sudan continues to suffer from a severe shortage of foreignexchange, as imports exceed exports by more than two to one.Exports are largely stagnant.  The small industrial sector remains inthe doldrums, and Sudan's inadequate and declining infrastructureinhibits economic recovery.  Foreign exchange rate policiesdiscourage remittances from Sudanese working abroad.DEFENSEThe Sudanese People's Armed Forces is a 60,000-member armysupported by a small air force and navy.  It is a defensive force,having the additional duty of maintaining internal security.  Somerebels currently fighting in the South are former army members.Sudan's military services are hampered by limited and outdatedequipment.  In the 1980's, the US worked  with the Sudanesegovernment to upgrade equipment with special emphasis on airliftcapacity and logistics.  All US military assistance was terminatedfollowing the military coup of    June 30, 1989.  Sudan has mostrecently received military assistance from Iraq, China, and Libya.FOREIGN RELATIONSSudan in recent years has tried to steer a non-aligned course,courting western aid and seeking rapprochement with Arab states,while maintaining cooperative ties with Libya.Solidarity with other Arab countries has been a feature of Sudan'sforeign policy.  When the Arab-Israeli war began in June 1967, Sudandeclared war on Israel.  However, in the early and mid-1970s, Sudangradually shifted its stance and was supportive of the Camp Davidprocess.Relations between Sudan and Libya deteriorated in the early 1970sand reached a low in October 1981, when Libyan leader  began apolicy of cross-border raids into western Sudan.  After the 1985coup, the military government resumed diplomatic relations withLibya, as part of a policy of improving relations with neighboring andArab states.  In early 1990, Libya and Sudan announced that theywould seek "unity."  It is not clear how or when this unity will beimplemented.US-SUDANESE RELATIONSSudan broke diplomatic ties with the United States in June 1967,following the outbreak of the Arab-Israeli war.  Relations improvedafter July 1971, when the Sudanese Communist Party attempted tooverthrow President Nimeiri, and Nimeiri suspected Sovietinvolvement.  US assistance for resettlement of refugees following theFebruary 1972 peace settlement in the south added further impetusto the improvement of relations.  Diplomatic ties were restored onJune 25, 1972.On March 1, 1973, Palestinian terrorists of the "Black September"organization murdered US Ambassador Cleo A. Noel and DeputyChief of Mission Curtis G. Moore.  Sudanese officials arrested theterrorists and tried and convicted them on murder charges.  In June1974, however, the Sudanese government released them to thecustody of the Egyptian government.  The US ambassador to Sudanwas withdrawn in protest.  Although the US Ambassador returned toKhartoum in November, relations with Sudan remained static untillate 1975 and early 1976, when President Nimeiri mediated therelease of 10 American hostages being held by Eritrean insurgentsin rebel strongholds in northern Ethiopia.  In 1976, the United Statesdecided to resume economic assistance to Sudan.In late 1985, there was a reduction in staff at the American embassyin Khartoum because of the presence in Khartoum of a largecontingent of Libyan terrorists.  In April 1986, relations with Sudandeteriorated when the United States bombed Tripoli.  A US embassyemployee was shot on April 16, 1986.  Immediately following thisincident, all non-essential personnel and all dependents left for 6months.US interests in Sudan center around peace and relief.  The US hasworked closely with the governments of both Sadiq al Mahdi andGeneral Omar al- Bashir to see that emergency relief assistance isprovided to those displaced by the ongoing civil war.  Sudan'sposition during the Iraq/Kuwait crisis strained relations with theUnited States.  Sudan stated that Iraq should not have invadedKuwait, but it  was equally critical of the presence of Western forceson Islamic holy lands.Principal US OfficialsAmbassador-James R. CheekDeputy Chief of Mission-Joseph P. O'NeillUSAID Director-Frederick MachmerPublic Affairs Officer-Mary JeffersThe US Embassy in Sudan is located at Shari'a Ali Abdul Latif, POBox 699, Khartoum (tel. 74700, 74611).  Hours are 7 am-3 pmSunday through Thursday.   US Marine security guards at theembassy can be contacted at any time in an emergency.Travel NotesCustoms:  Visas and yellow fever immunizations are required.  Healthrequirements change; check latest information.  Travelers mustcomplete a currency declaration listing all currency and othervaluables in their possession.  Money should be declared upon entryand exchanged only at official exchange offices or banks.  Keep allreceipts.  Permits are required for photography.Climate and clothing:  Washable, lightweight fabrics, suitable for adesert climate, and conservative styles are recommended.Dry-cleaning facilities are limited in Khartoum and unavailableelsewhere.Health:  Facilities are limited.  Water is not potable and should bepurified before drinking.  Food should  be well-cooked.  Cholera,typhoid, tetanus, and polio immunizations, gamma globulin shots,and Aralen tablets are recommended.Telecommunications:  Limited international telephone and telegraphservice is available in Khartoum and Port Sudan.  There is nointernational direct dial service to Sudan.  Sudan is seven time zonesahead of Eastern Standard Time.Transportation:  Sudan is connected by international airlines withEurope, Saudi Arabia, and other countries in Africa.  Bookingsshould be made in advance.  Domestic service is available for flightswithin Sudan.  Travel by road or train outside Khartoum is limited.Taxis are available in Khartoum, Port Sudan, and Juba.  Visitorsrequire government permission for all travel outside of the Khartoumarea.National holidays:  Sudanese government offices are openSaturday-Thursday.   The US Embassy is also closed on holidays.Travelers should check ahead for holiday  schedule.Published by the United States Department of State --  Bureau ofPublic Affairs  -- Office of  Public Communication --  Editorial Division--  Washington, DC -- March  1991 -- Editor:  Peter  A. KnechtDepartment of State Publication  8022 -- Background Notes Series-- This material is in the public domain and may  be reprinted withoutpermission; citation of this source is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>U.S. DEPARTMENT OF STATESRI LANKA BACKGROUND NOTEJANUARY 1995Official Name:  Democratic Socialist Republic of  Sri LankaPROFILEGeographyArea:  65,610 sq. km. (25,332 sq. mi.); about the size of West Virginia.  Cities:  Capital--Colombo (pop. est. 1.3 million).  Other cities-- Kandy (150,000), Jaffna (100,000), Galle (80,000).  Terrain:  Coastal plains in the northern third of country; hills and mountains in south-central Sri Lanka rise to 2,133 m. (7,000 ft.).  Climate:  Tropical.  Rainy seasons--light in northeast, fall and winter, with average rainfall of 50 in.; heavy in southwest, summer and fall, with average rainfall of 200 in. PeopleNationality:  Noun and adjective--Sri Lankan(s).  Population (1994):  18.1 million.  Annual growth rate:  1.3%.  Ethnic groups:  Sinhalese (74%), Tamils (18%), Muslims (7%), others (1%).  Religions:  Buddhism, Hinduism, Islam, Christianity.  Languages:  Sinhala and Tamil (official), English.  Education:  Years compulsory--to age 12.  Primary school attendance--98%.  Literacy--88%.  Health:  Infant mortality rate--19/1,000.  Life expectancy--73 yrs.  Work Force:  6.8 million.GovernmentType:  Republic.  Independence:  February 4, 1948.  Constitution:  August 31, 1978.  Suffrage:  Universal over 18.      Branches:  Executive--president (chief of state and head of government), elected for a 6-year term.  Legislative--unicameral 225-member parliament.  Judicial--Supreme Court, Court of Appeals, High Court, subordinate courts.  Administrative subdivisions:  Eight provinces and 25 administrative districts.      Political parties:  United National Party, Sri Lanka Freedom Party, others represented in either parliament or provincial councils, and several ethnic Tamil and Muslim parties.      Economy (1994 estimates)GDP:  $11 billion.  Annual growth rate:  5.5%.  Per capita GDP:  $600.  Natural resources:  Limestone, graphite, mineral sands, gems, phosphate.      Agriculture (20% of GDP):  Major products--rice, tea, rubber, coconuts, spices.      Industry (20% of GDP):  Major products-- garments, chemicals, refined petroleum, wood products, basic metal products, and paper products.      Trade:  Exports--$3.1 billion; garments, tea, rubber, gems, refined petroleum, coconuts.  Major markets--U.S. ($1.2 billion), Germany, U.K., Belgium, Japan, Netherlands.  Imports--$4.4 billion.  Major suppliers--Japan, India, Hong Kong, South Korea, Taiwan, U.K., Singapore, U.S. ($200 million).     Official exchange rate (Dec. 1994): Rupees (Rs.) 49=$1.  PEOPLEThe Democratic Socialist Republic of Sri Lanka (formerly known as Ceylon) is an island in the Indian Ocean approximately  28 kilometers (18 mi.) off the southeastern coast of India with a population of about 17.4 million.  Density is highest in the southwest where Colombo, the country's capital, main port, and industrial center, is located.  The net population growth is about 1.3%.Sri Lanka is ethnically, linguistically, and religiously diverse.  Sinhalese make up 74% of the population and are concentrated in the densely populated southwest.  Ceylon Tamils, citizens whose South Indian ancestors have lived on the island for centuries, total about 12% and live predominantly in the north and east.  Indian Tamils, a distinct ethnic group, represent about 6% of the population.  The British brought Indian Tamils to Sri Lanka in the 19th century as tea and rubber plantation workers and they remain concentrated in the "tea country" of south-central Sri Lanka.  In accordance with a 1964 agreement with India, Sri Lanka granted citizenship to 230,000 "stateless" Indian Tamils in 1988.  Under the pact, India granted citizenship to the remainder, some 200,000 of whom now live in India.  Another 92,000 Indian Tamils who themselves or whose parents once applied for Indian citizenship now wish to remain in Sri Lanka.  Although technically not citizens of Sri Lanka, the Government has stated that this group  will not be forced to return to India.Other minorities include Muslims (both Moors and Malays), at about 7% of the population; Burghers, who are descendants of European colonists, principally from the Netherlands and the U.K.; and aboriginal Veddahs.      Most Sinhalese are Buddhist; most Tamils are Hindu.  The majority of Sri Lanka's Muslims practice Sunni Islam.  Sizable minorities of both Sinhalese and Tamils are Christians, most of whom are Roman Catholic.  The 1978 constitution, while assuring freedom of religion, grants primacy to Buddhism.      Sinhala, an Indo-European language, is the native tongue of the Sinhalese.  Tamils and most Muslims speak Tamil, part of the South Indian Dravidian linguistic group.  Use of English has declined since independence, but it continues to be spoken by many in the middle and upper middle classes, particularly in Colombo.  Both Sinhala and Tamil are official languages.      HISTORYThe actual origins of the Sinhalese are shrouded in myth.  Most believe that they came to Sri Lanka from northern India during the 6th century BC.  Buddhism arrived from the subcontinent 300 years later and spread rapidly.  Buddhism and a sophisticated system of irrigation became the pillars of classical Sinhalese civilization (200 BC-1200 AD) that flourished in the north-central part of the island.  Invasions from southern India, combined with internecine strife, pushed Sinhalese kingdoms southward. The island's contact with the outside world began early.  Roman sailors called the island Taprobane.  Arab traders knew it as "Serendip," the root of the word "serendipity."  Beginning in 1505, Portuguese traders, in search of cinnamon and other spices, seized the island's coastal areas and spread Catholicism.  The Dutch supplanted the Portuguese in 1658.  Although the Dutch were ejected by the British in 1796, Dutch law remains an important part of Sri Lankan jurisprudence.  In 1815, the British defeated the king of Kandy, last of the native rulers, and created the Crown Colony of Ceylon.  They established a plantation economy based on tea, rubber, and coconuts.  In 1931, the British granted Ceylon limited self-rule and universal franchise.  Ceylon became independent on February 4, 1948.Post-Independence Politics.  Sri Lankan politics since independence have been strongly democratic.  Two major parties, the United National Party (UNP) and the Sri Lanka Freedom Party (SLFP) have generally alternated rule.  The UNP ruled first from 1948-56 under three prime ministers--D.S. Senanayake, his son Dudley, and Sir John Kotelawala.  The SLFP ruled from 1956-65, with a short hiatus in 1960, first under S.W.R.D. Bandaranaike and then, after his assassination in 1959, under his widow, Sirima.  Dudley Senanayake and the UNP returned to power in 1965.      In 1970, Mrs. Bandaranaike assumed the premiership.  A year later, an insurrection by followers of the Maoist "Janatha Vimukthi Peramuna" (JVP, or "People's Liberation Front") broke out.  The SLFP government suppressed the revolt and declared a state of emergency that would last six years.  In 1972, Mrs. Bandaranaike's Government introduced a new constitution, which changed the country's name from Ceylon to Sri Lanka, declared it a republic, made protection of Buddhism a constitutional principle, and created a weak president appointed by the prime minister.  Its economic policies during this period were highly socialist and included the nationalization of large tea and rubber plantations.      The UNP, under J.R. Jayewardene, returned to power in 1977.  The Jayewardene Government opened the economy and, in 1978, introduced a new constitution based on the French model,   a key element of which was the creation of a strong presidency.  President Jayewardene was elected president by parliament in 1978 and by nationwide elections in 1982.  By a 1982 referendum, the life of parliament was extended by another six years.      The UNP's Ranasinghe Premadasa, Prime Minister in the Jayewardene Government, narrowly defeated Mrs. Bandaranaike (SLFP) in the 1988 presidential elections.  The UNP also won an absolute majority in the 1989 parliamentary elections.  Mr. Premadasa was assassinated on May 1, 1993, and was replaced by then-Prime Minister Dingiri Banda Wijetunga, who appointed Ranil Wickremesinghe to be Prime Minister.The SLFP, the main party in the People's Alliance (PA) coalition, returned to power in 1994 for the first time in 17 years.  The People's Alliance won a plurality in the August 1994 parliamentary elections and formed a coalition government with Chandrika Bandaranaike Kumaratunga as Prime Minister.  Prime Minister Kumaratunga later won the November 1994 presidential elections and appointed her mother (former Prime Minister Sirima Bandaranaike) to replace her as Prime Minister.Communal Crisis.  Historical divisions continue to have an impact on Sri Lankan society and politics.  From independence, the Tamil minority has been uneasy with the country's unitary form of government and wary that the Sinhalese majority would abuse Tamil rights.  Those fears were reinforced when S.W.R.D. Bandaranaike triumphed in the 1956 elections after appealing to Sinhalese nationalism.  Declaring Sinhala the country's official language--felt by Tamils to be a denigration of their own tongue--was the first in a series of steps over the following decades that appeared discriminatory to Tamils.      The decades following 1956 saw intermittent outbreaks of communal violence and growing radicalization among Tamil groups.  By the mid-1970s Tamil politicians were moving from support for federalism to a demand for a separate Tamil state--"Tamil Eelam"--in northern and eastern Sri Lanka.  In the 1977 elections, the separatist TULF won all seats in Tamil areas.  Other groups--particularly the "Liberation Tigers of Tamil Eelam" (LTTE)--sought an independent state by force.      In 1983, the death of 13 Sinhalese soldiers at the hands of Tamil militants unleashed the largest outburst of communal violence in the country's history.  Hundreds of Tamils were killed in Colombo and elsewhere, tens of thousands were left homeless, and more than 100,000 fled to South India.  Members of the TULF lost their seats in parliament when they refused to swear a loyalty oath.  The north and east became the scene of bloodshed as security forces attempted to suppress the LTTE and other militant groups.  Terrorist incidents occurred in Colombo and other cities.  Each side in the conflict accused the other of violating human rights.    The conflict assumed an international dimension when the Sri Lankan Government accused India of supporting Tamil insurgents.Indian Peace-keeping.  By mid-1987, the situation had reached an apparent impasse.  In an attempt to break the deadlock, Sri Lanka brought India directly into its communal dispute.  Under a July 29, 1987, accord signed by Indian Prime Minister Rajiv Gandhi and President Jayewardene, the Sri Lankan Government made a number of concessions to Tamil demands, which included devolution of power to the provinces, merger (subject to later referendum) of the northern and eastern provinces, and official status for the Tamil language.  India agreed to establish order in the north and east with an Indian Peace-keeping Force (IPKF) and to cease assisting Tamil insurgents.  Militant groups, although initially reluctant, agreed to surrender their arms to the IPKF.Within weeks, however, the LTTE declared its intent to continue its armed struggle for an independent Tamil Eelam and refused to surrender arms.  The 50,000-strong IPKF found itself engaged in a bloody police action against the LTTE.      Meanwhile, the Government of Sri Lanka moved ahead with the promised devolution of power.  By late 1988, all eight provincial council elections had been held.  Further complicating the return to peace was a burgeoning Sinhalese insurgency in the south.  The JVP, relatively quiescent since the 1971 insurrection, began to reassert itself in 1987.  Capitalizing on opposition to the Indo-Lankan accord in the Sinhalese community, the JVP launched an intimidation campaign against supporters of the accord.  Numerous UNP and other government supporters were assassinated.  The government, relieved of its security burden by the IPKF in the north and east, intensified its efforts in the south.  The JVP was crushed but at a high cost in human lives.      From April 1989 through June 1990, the government engaged in direct communications with the LTTE leadership.  In the meantime, fighting between the LTTE and the IPKF had escalated in the north.  Finally,  India withdrew all of its forces from Sri Lanka by May 1990, and fighting between the LTTE and the government recommenced.  Both  the LTTE and government forces have been accused of  serious human rights violations.  In January 1995, the Sri Lankan Government and the LTTE agreed to a cessation of hostilities as a preliminary step in a government-initiated plan for peace negotiations.Separatist violence is largely confined to the Northeastern province, which is 6 to 8 hours by road from the capital.  However, terrorist bombings directed against politicians and others have occurred in Colombo and elsewhere in the country.POLITICAL CONDITIONSSri Lanka's two major political parties--the UNP and the SLFP--embrace democratic values, international non-alignment, and encouragement of Sinhalese culture.  Past differences between the two on foreign and economic policy have narrowed.  The SLFP, however, still has a stronger social-welfare orientation than the UNP and still envisions a broader role for the state in governance in general.  In the last general election, held August 15, 1994, Tamil parties, including the Tamil United Liberation Front (TULF), and the Eelam People's Democratic Front (EPDF), and a Muslim party, the Sri Lankan Muslim Congress (SLMC), won key swing votes in the parliament.Political assassinations have become commonplace and have included the bomb killing of President Premadasa on May 1, 1993.  Other prominent national leaders and senior military personnel have been targets and/or victims of terrorist violence.  In April 1994, four bombs exploded at Colombo hotels and a group calling itself the "Ellalan Force" has threatened to target foreigners.   In October 1994, UNP presidential candidate Gamini Dissanayake and 53 UNP supporters were killed during an October campaign rally by a terrorist bombing.The People's Alliance government, which was elected in 1994, entered into preliminary peace negotiations with LTTE in mid-October, but a second round of talks was canceled after the assassination of opposition leader Gamini Dissanayake.  In her November 1994 inaugural address, President Kumaratunga announced her intention to resume peace talks with the LTTE.  President Kumaratunga also said her government would propose constitutional changes which would shift powers from the presidency to the office of the prime minister.GOVERNMENTThe president of the republic, directly elected for a 6-year term, is chief of state, head of government, and commander in chief of the armed forces.  Responsible to parliament for the exercise of duties under the constitution and laws, the president may be removed from office by a two-thirds vote of parliament with the concurrence of the Supreme Court.      The president appoints and heads a cabinet of ministers responsible to parliament.  The president's deputy is the prime minister, who leads the ruling party in parliament.  A parliamentary no confidence vote requires dissolution of the cabinet and the appointment of a new one by the president.      Parliament is a unicameral 225-member legislature elected by universal suffrage and proportional representation to a 6-year term.  The president may summon, suspend, or end a legislative session and dissolve parliament.  Parliament reserves the power to make all laws.Sri Lanka's judiciary consists of a supreme court, a court of appeals, a high court, and a number of subordinate courts.  Sri Lanka's legal system reflects diverse cultural influences.  Criminal law is fundamentally British.  Basic civil law is Roman-Dutch.  Laws pertaining to marriage, divorce, inheritance are communal.       Under the Indo-Sri Lankan accord of July 1987, the Government of Sri Lanka agreed to devolve significant authority to the provinces.  Provincial councils are directly elected for 5-year terms.  The leader of the council majority serves as the province's chief minister; a provincial governor is appointed by the president.  Councils possess powers in education, health, rural development, social services, agriculture, security, and local taxation.  Many of these powers are shared, or subject to central government oversight.  Predating the accord are  municipal, urban, and rural councils with limited powers.Principal Government OfficialsPresident--Chandrika Bandaranaike KumaratungaPrime Minister--Sirima BandaranaikeForeign Minister--Lakshman KadirgamarAmbassador--Designate to the United States--Jayantha DhanapalaAmbassador to the United Nations--Dr. Stanley KalpageSri Lanka maintains an embassy in the United States at 2148 Wyoming Avenue NW., Washington, DC 20008.   (Tel. [phone]). ECONOMYWith an economy of about $11 billion a year, and per capita GDP of $600, Sri Lanka has been coping with a decade long civil insurgency.  In 1989, GDP growth fell to a low of 2%, but recovered and hit a high of 7% in 1993.  With several rounds of local and national elections in 1994, growth fell to about 5.2%.  The forecast for 1995 is clouded, as the private sector awaits proof that the new government will deliver on its promises of creating an environment conducive to vigorous, private-sector growth.  The service sector is the largest component of GDP (50%), partly reflecting an extensive government apparatus and welfare state, but also including a rapidly growing tourism sector.  The booming industrial sector now accounts for 20% of GDP.  Garment manufacturing dominates industry.  Agriculture, the traditional leading sector, contributes 20% of GDP and provides employment to about half the population.  Rice, the staple cereal, is cultivated extensively.  The plantation sector--tea, rubber, and coconut--also is a major employer and, until the recent growth of the textile industry,  provided the bulk of export earnings.Since 1990, a successful new stock exchange has been founded; all exchange controls on current account transactions have been eliminated; and more than 40 state firms have been privatized.  Generous tax policies and other incentives have made Sri Lanka attractive to outside investors.  Direct foreign investment inflows were about $200 million in 1994. The expectation is that investment inflows will continue to rise and that GDP growth should average 5% to 6% for the remainder of the decade.Trade and Foreign Assistance.  Exports to the United States--Sri Lanka's single most important export market--were valued at over $1 billion in 1994.  The U.S. was Sri Lanka's largest market for textiles in 1994, followed by Germany, UK, and Japan.  Japan was Sri Lanka's largest source of imports in 1994, followed by East and South Asian nations such as India and Hong Kong.  Imports from the U.S. amounted to about $200 million in 1994. Sri Lanka is highly dependent on foreign assistance and has received about $500 million a year since 1990.  With the end of the JVP insurrection and a systematic decline in human rights abuses by the security forces, Western donor countries have increased support of Sri Lanka's economic liberalization programs.  Foreign assistance has been critical in the successful development of the large Mahaweli River Basin Project, privatization of state-run industry, development of the stock exchange, and the building of infrastructure.Labor.  Perhaps one-quarter of Sri Lanka's 6.8 million labor force is unionized, with more than 1,300 registered unions and 10 federations.  The largest labor group is the National Trade Union Conference.  Many unions are affiliated with political parties.  One of the largest unions is the Ceylon Workers Congress (CWC), which represents Indian Tamil workers on tea and rubber plantations.  It claims a membership of 360,000.  Its president, S. Thondaman, is Minister of Livestock Development and Rural Industries.  The CWC's agenda includes political issues, such as citizenship status for stateless Indian Tamils.FOREIGN RELATIONSSri Lanka follows a nonaligned foreign policy.  It participates in multilateral diplomacy, particularly at the United Nations, where it seeks to promote sovereignty, independence, and development in the developing world.  Sri Lanka was a founding member of the Non-Aligned Movement and hosted its 1976 summit.  It also is a member of the Commonwealth, the South Asian Association for Regional Cooperation (SAARC), the World Bank, International Monetary Fund, Asian Development Bank, and the Colombo Plan.  Sri Lanka continues its active participation in the Non-Aligned Movement, while also stressing the importance it places on regionalism by playing a strong role in SAARC.  U.S.-SRI LANKAN RELATIONSThe United States enjoys cordial relations with Sri Lanka that are based, in large part, on shared democratic traditions.  U.S. policy toward Sri Lanka is characterized by respect for its independence, sovereignty, and moderate, non-aligned foreign policy; support for the country's unity, territorial integrity, and democratic institutions; and encouragement of its social and economic development.  U.S. assistance has totaled more than $1.3 billion since Sri Lanka's independence in 1948.   Through the U.S.  Agency for International Development (USAID), it has contributed to Sri Lanka's economic growth with projects designed to reduce unemployment, improve housing, and develop the Colombo stock exchange.  In 1994, the U.S. delivered about $55 million in aid, including about $25 million in free wheat, $18 million in low interest 40-year loans for additional wheat, and about $12 million in a variety of other direct assistance activities.In addition, U.S. Peace Corps volunteers are active in much of Sri Lanka; the Voice of America operates a radio transmitter; and U.S. Naval vessels call regularly at Colombo.Principal U.S. Embassy OfficialsAmbassador--Teresita C. Schaffer Deputy Chief of Mission--John BoardmanPolitical Counselor--Scott DeLisiEconomic Counselor--Nicholas Riegg Administrative Officer--Judy Chammas Consular Officer--Brian Oberle Defense Attache--Lt. Col. Carl Cockrum Director, AID Mission--David Cohen Counselor for Public Affairs (USIS)--Duncan MacInnesThe U.S. Embassy in Sri Lanka is located at 210 Galle Road, Colombo 3 (tel: [phone], fax: [phone]).  U.S. Agency for International Development offices are located at 356 Galle Road, Colombo 3 (tel: [phone]; fax: [phone]).  U.S. Information Service offices are located at 44 Galle Road, Colombo 3. (tel: [phone], fax: [phone]).  Peace Corps offices are located at 50/5 Siripa Road, Colombo 5 (tel: [phone]).  Voice of America offices are located at 228/1 Galle Road, Colombo 4 (tel: [phone], fax: [phone]). FURTHER INFORMATIONThe following are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954.  To order, call [phone] or fax: [phone].  American University.  Area Handbook for Sri Lanka.U.S. Department of Commerce.  "Sri Lanka."  Foreign Economic Trends and Their Implications for the United States.  Annual.  U.S. Department of State.  U.S. Department of State Dispatch.  Weekly magazine.U.S. Department of State.  Key Officers of Foreign Service Posts: Guide for Business Representatives.  Biannual.CD-ROM and InternetU.S. Foreign Affairs on CD-ROM (USFAC).  USFAC contains a wealth of foreign policy information released by the U.S. Department of State, 1990-1994. Updated quarterly, USFAC is available from the Superintendent of Documents (see address under "Further Information" above).Department of State Foreign Affairs Network (DOSFAN).  Major reports, speeches, transcripts, and a variety of official U.S. Department of State publications are now available on a daily basis on the Internet.  To access current foreign policy information, point your gopher client to:  dosfan.lib.uic.edu. The Universal Resource Locator (URL) for DOSFAN on the Internet is:  gopher://dosfan.lib.uic.edu/.  On the World Wide Web, connect to the URL at: http://dosfan.lib.uic.edu/dosfan.html.  Travel InformationTravel advisory:  Continued fighting in the North and East and infrequent terrorist attacks elsewhere in Sri Lanka make it advisable for U.S. visitors to contact the Department of State before departure and the U.S. Embassy on arrival.  Petty street crime is common especially on crowded local transportation.  Travel advisories and other current travel information to Sri Lanka and other countries is available at no cost from the U.S. Department of State's Consular Information Program by telephone [phone]) or by fax [phone]).  Travel information is also on-line:  access the Consular Affairs Bulletin Board at [phone] by modem with standard settings. Visas and customs:  A passport and onward/return ticket and proof funds ($15 per day) are required.  A tourist visa is granted at entry and may be valid for up to 90 days.  Business travelers may be granted a landing endorsement at the port of entry for a one month period under certain circumstances.  Yellow fever and cholera immunizations are needed if arriving from an infected area.  Foreign currency, including travelers' checks, must be declared upon entry.  Visitors should keep currency exchange receipts.  On departure, they will be asked to show evidence of authorized exchange.Health:  The U.S. Centers for Disease Control and Prevention in Atlanta, Georgia, has the latest information on health requirements and conditions in foreign countries.  Call the Hotline at [phone] for telephonic or fax information.  Public health facilities in Sri Lanka are poor.  The U.S. embassy maintains a list of private physicians who may be consulted in emergency cases.  Medical supplies are scarce; bring any special drugs required.  Malaria is endemic outside Colombo.  Outside the capital, malaria suppres-sants are required.  Avoid drinking unboiled water. Avoid unpeeled, raw fruits and vegetables or under-cooked meats.  Telecommunications:  Domestic telephone service is fair. Long distance service is good and may be booked through an operator in advance.  International direct-dialing is available from most major hotels.  Telegraph, cable, and fax services are good and available 24 hours a day in Colombo and other larger towns.  International airmail service to the United States takes about 2 weeks.  Sri Lanka is 10-1/2 hours ahead of Eastern Standard Time.Tourism:  Tourists enjoy Sri Lanka's wonderful beaches and interesting archeological sites.  Contact the Embassy of Sri Lanka (see page 5) or your travel agent for more details.  (###)Published by the United States Department of State -- Bureau of Public Affairs  -- Office of  Public Communication -- Washington, DC -- 0000  Editor:  Deborah Guido-O'Grady with Dan Lawton, Office of India, Nepal and Sri Lanka, Bureau of South Asian Affairs.Department of State Publication Background Notes Series--This material is in the public domain and may  be reprintedwithout permission; citation of this sourceis appreciated.For sale by the Superintendent of Documents, US Government Printing Office, Washington, DC  20402.(###)</text>
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        <text>U.S. Department of StateBackground Notes:  Spain, November 1995Bureau of Public AffairsNovember 1995Official Name:  Kingdom of SpainPROFILEGeographyArea:  504,750 sq. km. (194,884 sq. mi.) including the Balearic and Canary Islands; about the size of Arizona and Utah combined. Cities:  Capital--Madrid (pop. 2.9 million est). Other cities--Barcelona (1.6 million), Valencia (753,000), Seville (659,000),  Zaragoza (586,000), Bilbao (369,000), Malaga (512,000).Terrain:  High plateaus and mountains. Climate:  Seasonably variable, dry; temperate in northwest.PeopleNationality:  Noun--Spaniard(s). Adjective--Spanish. Population:  40 million. Annual growth rate: 0.3%.   Ethnic groups:  Distinct ethnic groups within Spain include the Basques, Catalans, and Gallegos.Religion:  Predominantly Roman Catholic. Languages:  Spanish (official), Catalan-Valenciana 17%, Galician 7%, Basque 2%. Education:  Years compulsory--to age 16. Literacy--97%. Work force (15.2 million):  Services--55%.  Agriculture--12%. Construction--10%. Industry--4%.GovernmentType:  Constitutional monarchy (Juan Carlos I proclaimed King November 22, 1975).Constitution: 1978Branches:  Executive--prime minister nominated by monarch, subject to approval by democratically elected Congress of Deputies. Legislative--bicameral Cortes: a 350-seat Congress of Deputies (elected by the d'Hondt system of proportional representation) and a Senate. Four senators are elected in each of 47 peninsular provinces, 16 are elected from the three island provinces, and Ceuta and Melilla elect two each; this accounts for 208 senators. The 17 autonomous regions also appoint one senator as well as one additional senator for every 1 million inhabitants within their territory (about 20 senators). Judicial--Constitutional Tribunal has jurisdiction over constitutional issues. Supreme Tribunal heads system comprising territorial, provincial, regional, and municipal courts.Subdivisions:  47 peninsular and three island provinces; two enclaves on the Mediterranean coast of Morocco (Ceuta and Melilla); and three island groups along that coast--Alhucemas, Pelon de Velez de la Gomera, and the Chafarinas Islands.Political parties:  Spanish Socialist Workers Party (PSOE), Popular Party (PP), Social and Democratic Center (CDS), and the United Left (IU) coalition. Key regional parties are the Convergence and Union (CIU) in Catalonia and the Basque National Party (PNV) in the Basque country.EconomyGDP (1994):  $483 billion (seventh-largest OECD economy).  Annual growth rate:  2%. Per capita GDP: $12,000.Natural resources:  Coal, lignite, iron ore, uranium, mercury, pyrites, fluorspar, gypsum, zinc, lead, tungsten, copper, kaolin, hydroelectric power.Agriculture (3.5% of GDP):  Products--grains, vegetables, citrus and deciduous fruits, wine, olives and olive oil, sunflowers, livestock.Industry (23% of GDP):  Types--processed foods, textiles, footwear, petrochemicals, steel, automobiles, consumer goods, electronics. Trade (1994):  Exports--$73.5 billion:  automobiles, fruits, minerals, metals, clothing, footwear, textiles. Major markets--EU 75%, U.S. 5%. Imports--$92.7 billion:  petroleum, oilseeds, aircraft, grains, chemicals, machinery, transportation equipment, fish. Major sources--EU 69%, U.S. 7.3%.Average exchange rate: 134 pesetas=U.S.$1. nPEOPLESpain's population density, lower than that of most European countries, is roughly equivalent to New England. In recent years, following a long-standing pattern in the rest of Europe, rural populations are moving to cities.Spain has no official religion. The constitution of 1978 disestablished the Roman Catholic Church as the official state religion, while recognizing the role it plays in Spanish society. More than 90% of the population are at least nominally Catholic.Educational SystemAbout 70% of Spain's student population attends public schools or universities. The remainder attend private schools or universities, the great majority of which are operated by the Catholic Church.Compulsory education begins with primary school or general basic education for ages 6-14. It is free in public schools and in many private schools, most of which receive government subsidies. Following graduation, students attend either a secondary school offering a general high school diploma or a school of professional education (corresponding to grades 9-11 in the United States) offering a vocational training program. The Spanish university system offers degree programs in law, sciences, humanities, and medicine, and the superior technical schools offer programs in engineering and architecture.HISTORYThe Iberian Peninsula has been occupied for many millennia. Some of Europe's most impressive Paleolithic cultural sites are located there--the famous caves at Altamura contain spectacular paintings which date from about 15,000-25,000 years ago. The Basques are the first identifiable people of the peninsula and are the oldest surviving group in Europe. Iberians arrived from North Africa during a more recent period. Beginning in the ninth century BC, Phoenicians, Greeks, Carthaginians, and Celts entered the Iberian Peninsula, followed by the Romans, who arrived in the second century BC. Spain's present language, religion, and laws stem from the Roman period. Although the Visigoths arrived in the fifth century AD, the last Roman strongholds along the southern coast did not fall until the seventh century AD. In 711, North African Moors sailed across the straits, swept into Andalusia, and, within a few years, pushed the Visigoths up the peninsula to the Cantabrian Mountains. The Reconquest--efforts to drive out the Moors--lasted until 1492. By 1512, the unification of present-day Spain was complete.During the 16th century, Spain became the most powerful nation in Europe, due to the immense wealth derived from its presence in the Americas. But a series of long, costly wars and revolts, capped by the defeat by the English of the "Invincible Armada" in 1588, began a steady decline of Spanish power in Europe. Controversy over succession to the throne consumed the country during the 18th and 19th centuries, leading to occupation by France in the early 1800s.The 19th century saw the revolt and independence of most of Spain's colonies in the Western Hemisphere; three wars over the succession issue; the brief ousting of the monarchy and establishment of the First Republic (1873-74); and, finally, the Spanish-American War (1898), in which Spain lost Cuba, Puerto Rico, and the Philippines to the United States. A period of dictatorial rule (1923-31) ended with the establishment of the Second Republic. It was dominated by increasing political polarization, culminating in the leftist Popular Front electoral victory in 1936. Pressures from all sides, coupled with growing and unchecked violence, led to the outbreak of the Spanish Civil War in July 1936.Following the victory of his nationalist forces in 1939, Gen. Francisco Franco ruled a nation exhausted politically and economically. Spain was officially neutral during World War II but followed a pro-Axis policy. The victorious Allies isolated Spain at the beginning of the postwar period, and the country did not join the United Nations until 1955. In 1959, under an International Monetary Fund stabilization plan, the country began liberalizing trade and capital flows, particularly foreign direct investment.Despite the success of economic liberalization, Spain remained the most closed economy in Western Europe--judged by the small measure of foreign trade to economic activity--and the pace of reform slackened during the 1960s as the state remained committed to "guiding" the economy.Nevertheless, in the 1960s and 1970s, Spain was transformed into a modern industrial economy with a thriving tourism sector. Its economic expansion led to improved income distribution, and helped develop a large middle class. Social changes brought about by economic prosperity and the inflow of new ideas helped set the stage for Spain's transition to democracy during the latter half of the 1970s.Upon the death of General Franco in November 1975, Prince Juan Carlos de Borbon y Borbon, Franco's personally designated heir, assumed the titles of king and chief of state. Dissatisfied with the slow pace of post-Franco liberalization, in July 1976, the King replaced Franco's last prime minister with Adolfo Suarez. Suarez entered office promising that elections would be held within one year, and his government moved to enact a series of laws to liberalize the new regime.Spain's first elections to the Cortes (parliament) since 1936 were held on June 15, 1977. Prime Minister Suarez's Union of the Democratic Center (UCD), a moderate center-right coalition, won 34% of the vote and the largest bloc of seats in the Cortes.Under Suarez, the new Cortes set about drafting a democratic constitution which was overwhelmingly approved by voters in a December 1978 national referendum. GOVERNMENT AND POLITICAL CONDITIONSThe 1978 constitution established Spain as a parliamentary monarchy, with the prime minister responsible to the bicameral Cortes elected every four years. The elections of March 1979 gave Suarez's party a large plurality, but the coalition of parties backing Suarez soon began to disintegrate. In January 1981, Suarez resigned, and the King nominated Leopoldo Calvo Sotelo to replace him. On February 23, while the Congress of Deputies was voting on the Calvo Sotelo nomination, rebel elements among the security forces seized the Congress and tried to impose a military-backed government. However, the great majority of the military forces remained loyal to King Juan Carlos, who used his personal authority to put down the coup. The bloodless coup attempt was over in 18 hours. On February 25, the Congress of Deputies reconvened to approve Calvo Sotelo's nomination as Prime Minister.In October 1982, the Spanish Socialist Workers Party (PSOE), led by Felipe Gonzalez Marquez, swept both the Congress of Deputies and Senate, winning an absolute majority; the government was reelected in June 1986.On December 14, 1988, the two largest labor union confederations, the Socialist-affiliated General Workers Union and the communist-led Confederation of Workers Commissions, sponsored a successful one-day nationwide work stoppage.  The general strike was seen as an expression of labor union dissatisfaction with the governing PSOE's leadership as well as a move to highlight specific union grievances. It marked a widening split between the labor unions and the Socialist government. The strike was interpreted as a sign that the government had lost some support, especially among blue-collar workers, a sector of the electorate traditionally pro-socialist.Prime Minister Gonzalez called for a general election in October 1989. Although the PSOE retained control of the Senate, the party lost ground, both to the Popular Party on the right and the communist-led United Left. Gonzalez won a fourth term in 1993 with a minority government supported by the regional Catalan party.Local GovernmentThe 1978 constitution authorized the creation of regional autonomous governments. By 1985, 17 regions covering all of peninsular Spain, the Canaries, and the Balearic Islands had negotiated autonomy statutes with the central government. In 1979, the first autonomous elections were held in the Basque and Catalan regions, which have the strongest regional traditions by virtue of their history and separate languages. Since then, autonomous governments have been created in the remainder of the 17 regions.TerrorismThe Government of Spain is involved in a long-running campaign against Basque Fatherland and Liberty (ETA), a terrorist organization founded in 1959 and dedicated to promoting Basque independence. ETA targets primarily Spanish security forces, military personnel, and Spanish Government officials. The group has carried out numerous bombings against Spanish Government facilities and economic targets. In recent years, the Government of Spain has had more success in controlling ETA, due in part to increased security cooperation with French authorities.In early 1989, the Spanish Government held a series of meetings in Algeria with ETA representatives in an effort to reach an agreement ending the campaign of terrorism. But the talks broke down, and ETA resumed its terrorist operations with a series of bombings on April 7, 1989, effectively ending a three-month cease-fire. The spring and summer of 1990 saw another significant wave of terrorist operations, with ETA and the radical leftist group GRAPO claiming responsibility for bombings against public installations throughout the country.A series of highly successful Spanish police counter-terrorist operations conducted in coordination with French authorities, including the arrest of the ETA leadership, had reduced that organization's activities by the close of 1992. However, a core of hardliners saw to it that the ETA's agenda of violence continued, orchestrating two assassinations in January 1993.As for GRAPO, while not responsible for any deaths during 1992, its members procured the equivalent of $622,000 from armored-car heists. The group carried out an armored-car robbery in early January 1993, an act which was expected to boost the morale of members of Spain's Communist Party, the political arm of GRAPO.Catalonia liberation groups, most notable of which is Terra Lliure (TLL), were given special attention by the police in preparation for the 1992 Barcelona Summer Olympics, and their activity was largely neutralized.Principal Government OfficialsChief of State, Commander in Chief of the Armed Forces--King Juan Carlos IPresident of the Government (Prime Minister)--Felipe Gonzalez MarquezMinister of Foreign Affairs--Javier SolanaAmbassador to the United States--Jaime de Ojeda y EiseleySpain maintains an embassy in the United States at 2375 Pennsylvania Avenue NW, Washington, DC  20037 (tel. [phone]) and consulates in many larger U.S. cities.ECONOMYFollowing peak growth years in the late 1980s, the Spanish economy entered into recession in mid-1992. Both investment and private consumption were negative during 1993, while registered unemployment surged to nearly 25%. Four devaluations of the peseta since 1992 have made Spanish exports more competitive and have contributed to a boom in tourism revenues. A modest export-led recovery began in 1994. Late that year, investment also picked up, but consolidation of the recovery will require a return of consumer confidence and domestic private consumption.Spain's accession to the European Community--now European Union (EU)--in January 1986 has required the country to open its economy, modernize its industrial base, improve infrastructure, and revise economic legislation to conform to EU guidelines. The Spanish Government has announced its commitment to meet the Maastricht Treaty requirements for economic and monetary union; the fundamental challenges for Spain are to reduce the public sector deficit and to lower inflation.FOREIGN RELATIONSAfter the return of democracy following the death of General Franco in 1975, Spain's foreign policy priorities were to break out of the diplomatic isolation of the Franco years and expand its diplomatic relations, enter the European Community, and define its security relations with the West.As a member of NATO since 1982, Spain has established itself as a major participant in multilateral international security activities. Spain's EU membership represents an important part of its foreign policy, and even on many international issues beyond Western Europe, Spain prefers to coordinate its efforts with its EU partners through the European political cooperation mechanism.With the normalization of diplomatic relations with Israel and Albania in 1986, Spain virtually completed the process of universalizing its diplomatic relations. The only country with which it now does not have diplomatic relations is North Korea.Spain has maintained its special identification with Latin America. Its policy emphasizes the concept of Hispanidad, a mixture of linguistic, religious, ethnic, cultural, and historical ties binding Spanish-speaking America to Spain. Spain has been an effective example of transition from authoritarianism to democracy, as shown in the many trips that Spain's King and Prime Ministers have made to the region. Spain maintains economic and technical cooperation programs and cultural exchanges with Latin America, both bilaterally and within the EU.Spain also continues to focus attention on North Africa, especially on Morocco. This concern is dictated by geographic proximity and long historical contacts, as well as by the two Spanish enclave cities of Ceuta and Melilla on the northern coast of Africa. While Spain's departure from its former colony of Western Sahara ended direct Spanish participation, it maintains an interest in the peaceful resolution of the conflict brought about there by decolonization. Spain has gradually begun to broaden its contacts with sub-Saharan Africa. It has a particular interest in its former colony of Equatorial Guinea, where it maintains a large aid program.In its relations with the Arab world, Spain frequently supports Arab positions on Middle East issues. The Arab countries are a priority interest for Spain because of oil and gas imports and because several Arab nations have substantial investments in Spain.Spain has been successful in managing its relations with its two European neighbors, France and Portugal. The accession of Spain and Portugal to the EU has helped ease some of their periodic trade frictions by putting these into an EU context. Franco-Spanish bilateral cooperation is enhanced by joint action against Basque ETA terrorism. Ties with the United Kingdom are generally good, although the question of Gibraltar remains a sensitive issue; the two countries agreed in 1984 to discuss all subjects, including sovereignty, in their talks on the future of this British colony. This agreement has led to a relaxation of border controls and greater movement of people and goods.U.S.-SPANISH RELATIONSSpain and the United States have a long history of official relations and are now closely associated in many fields. This association has been cemented in recent years by the exchange of high-level visitors. In April 1993, King Juan Carlos received a gold medal from the United States National Philosophical Society in Philadelphia on the occasion of its 250th anniversary.In addition to U.S. and Spanish cooperation in NATO, defense and security relations between the two countries are regulated by a 1989 agreement on defense cooperation. Under this agreement, Spain authorizes the United States to use certain facilities at Spanish military installations. The two countries also cooperate in several other important areas. Under an agreement which will remain in force until 1997 and which is subject to renewal at that time, the U.S. National Aeronautics and Space Administration (NASA) and the Spanish National Aerospace Institute (INTA) jointly operate tracking stations in the Madrid area in support of earth orbital, lunar, and planetary exploration missions. The Madrid tracking station is one of the three largest tracking and data acquisition complexes supporting NASA operations.An agreement on cultural and educational cooperation was signed on June 7, 1989. A new element, supported by both the public and private sectors, gives a different dimension to the programs carried out by the joint committee for cultural and educational cooperation. These joint committee activities complement the binational Fulbright program for graduate students, postdoctoral researchers, and visiting professors, which, in 1989, became the largest in the world. Besides assisting in these exchange endeavors, the U.S. embassy also conducts a program of official visits between Spain and the United States.Principal U.S. Embassy OfficialsAmbassador--Richard N. GardnerDeputy Chief of Mission--Larry RossinCounselor for Administrative Affairs--William BurkeCounselor for Agricultural Affairs--Franklin LeeCounselor for Commercial Affairs--Emilio IodiceCounselor for Consular Affairs--Eloise ShouseCounselor for Economic Affairs--Emil CastroCounselor for Political Affairs--Harry JonesCounselor for Politico-Military Affairs--Enrique PerezCounselor for Public Affairs--Brian CarlsonChief, Office of Defense Cooperation--Col. Judy W. George, USAFDefense Attache--Capt. James Tinsley, USNDrug Enforcement Administration Attache--George FazFederal Aviation Administration Representative--Rudolph EscobedoNASA Representative--Anthony CarroRegional Security Officer--Kenneth SykesScience Attache--Helen LaneConsul General, Barcelona--Maurice ParkerConsul, Bilbao--Hilarian MartinezThe US embassy is located at Serrano, 75, 28006 Madrid (tel. [phone]; fax [phone]). Consulate general, Barcelona, Passeig Reina Elisenda 23, Barcelona 08034 (tel. [phone]; fax [phone]). Consulate Bilbao, Avenida del Ejercito, 11 - 3rd floor, Duesto, Bilbao, 12 (tel. [phone]; fax [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone]. Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone]. Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). Upon their arrival in a country, U.S. citizens are encouraged to register at the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher: dosfan.lib.uic.eduURL: gopher://dosfan.lib.uic.edu/WWW: http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.============================== Background Notes Series -- Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC This information is in the public domain and may be reproduced without permission; citation of this source is appreciated. (###)</text>
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        <text>BACKGROUND NOTES:  SOUTH AFRICA PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS U.S. DEPARTMENT OF STATE  NOVEMBER 1994  Official Name:  Republic of South Africa   Trade and Investment South Africa has rich mineral resources; the only major mineral products not found in South Africa are petroleum and bauxite.  It is the world's largest producer and exporter of gold and also exports a significant amount of coal.  The value-added processing of minerals to produce ferroalloys, stainless steels, and similar products is a major industry and an important potential growth area.  The country's diverse manufacturing industry is a world leader in several specialized sectors, including railway rolling stock, synthetic fuels, and mining equipment and machinery.  Agriculture accounts for about 6% of the gross domestic product, including citrus fruits, corn, dairy products, sugarcane, tobacco, wine, and wool.  However, because of inadequate and erratic rainfall, only about 15% of the land is suitable for arable farming.  South Africa has many developed irrigation schemes and generally is a net exporter of food.  The transportation infrastructure is well developed, supporting both domestic and regional needs.  The telecommunications and electrical infrastructure provide "first-world" class service to white urban areas.  The economy is recovering from a five-year recession primarily due to significant gains in  the agricultural sector.  South Africa's economic future looks hopeful, with GDP expected to increase and the financial rand expected to depreciate against the dollar.  However, several factors could alter these forecasts, including economic policies of the new government, future commodity prices, and the duration of the rebound in the global economy.  Exports and imports account for more than 38% of the GDP.  With the lifting of sanctions in 1993, the United States regained its position as South Africa's principal trading partner.  South Africa is the largest export market for U.S. goods and services in Sub-Saharan Africa.  In 1993, U.S. exports to South Africa totaled $2.4 billion, representing about 14% of South Africa's total imports.  Other major trading partners are Germany, Japan, and the United Kingdom.    Trade with other Sub-Saharan African countries, which represents a considerable portion of South Africa's trade, has continued to increase substantially despite the sanctions era.  South Africa's protective import policies present barriers to foreign goods.  Importers must apply for import permits for goods.  Tariff rates range from 5% to 50%, with luxury goods as high as 60% and automobiles at 100%.  Any South African producer may petition for tariff protection; approval is more likely where the producer has a major share of the domestic market and can show that foreign competition is eroding the company's market dominance.  In 1993, the South Africans submitted a Uruguay Round offer to rationalize their tariff structure and to lower existing tariffs that the United States has agreed to accept.  In the short to medium term, there may be continuing market access problems with some products, but the overall trend should be toward trade liberalization.  Foreign investors generally receive national treatment, but they are subject to certain lending limits.  Local content rules apply in certain industries.  In 1990, South Africa eliminated legal restrictions against foreign-owned financial institutions, which may now establish subsidiaries or branches or acquire domestic banks.  The Import-Export Bank may provide assistance for U.S. exports to South Africa.  Such assistance can help open many markets in housing, education, and health care to American exporters and provide a trade promotion tool of the type already available to firms from most of South Africa's other major trading partners.  In November 1993, the Overseas Private Investment Corporation signed a bilateral investment encouragement agreement with South Africa.  It can now assist U.S. investors in that market with services such as political risk insurance and identification of investment opportunities.  The Trade and Development Program also is actively exploring opportunities to fund feasibility studies.   FOREIGN RELATIONS South African forces fought on the Allied side in World Wars I and II and participated in the post-war UN force in Korea.  South Africa was a founding member of the League of Nations and in 1927 established a Department of External Affairs with diplomatic missions in the main West European countries and in the United States. At the founding of the League of Nations, South Africa was given the mandate to govern South-West Africa, now Namibia, which had been a German colony before World War I.  In 1990, South Africa granted independence to Namibia with the exception of the enclave of Walvis Bay, which was reintegrated into Namibia in March 1994.  After South Africa held its first non-racial election in April 1994, most sanctions imposed by the international community were lifted.  On June 1,  1994, South Africa rejoined the Commonwealth, and on June 23, 1994, its credentials to the UN General Assembly were accepted.  South Africa also joined the Organization of African Unity (OAU) and is beginning to play a leading role.  Following the elections, many countries established diplomatic missions in South Africa.  It now enjoys diplomatic relations with more than 80% of UN member states.  South Africa's principal foreign policy objective is to develop good relations with all countries, especially its neighbors.  In an effort to focus on domestic problems, South Africa is carefully considering to what degree it will participate in world affairs.   U.S.-SOUTH AFRICAN RELATIONS The United States has maintained an official presence in South Africa since 1799, when an American consulate was opened in Cape Town.  The U.S. Embassy is located in Pretoria and consulates general are in Johannesburg, Durban, and Cape Town.  Americans and South African also have many non-governmental ties; for example, black and white American missionaries have a long history of activity in South Africa.    From the 1970s through the early 1990s, U.S.-South African relations were severely affected by South Africa's racial policies.  However, since the establishment of the Government of National Unity in May 1994, the United States has enjoyed an excellent bilateral relationship with South Africa.  In May 1994, the United States committed to South Africa almost $600 million in aid to be distributed over three years.  The U.S. aid program is focusing on responding to specific requests from South African and non-governmental organizations.  Principal U.S. Officials Ambassador--Princeton Lyman Deputy Chief of Mission and Minister-Counselor--Priscilla Clapp Economic Counselor--Michael Cleverley Political Counselor--John Campbell Administrative Counselor--John Collins Public Affairs Officer--John Burns Defense Attache--Kim Henningsen USAID Director--Leslie "Cap" Dean Agricultural Attache--James Benson Consul General, Cape Town--Bismark Myrick Consul General, Durban--Pamela Bridgewater Consul General, Johannesburg--Alan McKee    (###)   TRAVEL NOTES Customs:  A passport valid for at least six months is required, but a visa is not required for regular passport holders on bona fide holiday, business visits, or in transit.  However, visas are required for extended stays, employment, study, and diplomatic and official passport holders.  Evidence of a yellow fever vaccination is necessary if arriving from an infected area.  Health:  The standard of community health is high, and city water is potable.  Medical facilities, good in urban areas and in the vicinity of game parks and beaches, may be limited elsewhere.  Avoid swimming in fresh water, as it may be infested with disease-causing organisms.  Telecommunications:  Calls to the U.S. can be dialed directly, and connections are usually good.  South Africa is six hours ahead of eastern standard time.  Transportation:  South Africa has a modern transportation network.   (###)   Published by the U.S. Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC, Managing Editor:  Peter A. Knecht  November 1994 -- Department of State Publication 8021 -- Background Notes Series -- This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402  (###)</text>
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        <text>BACKGROUND NOTES:  SOUTH AFRICA PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS U.S. DEPARTMENT OF STATE  NOVEMBER 1994  Official Name:  Republic of South Africa  PROFILE  Geography Area: 1.2 million  sq. km. (470,462 sq. mi.).    Capitals:  Administrative--Pretoria Legislative--Cape Town.   Judicial--Bloemfontein.   Other cities:  Johannesburg, Soweto, Durban.   Terrain:  Plateau, savanna, desert, mountains, coastal plains.   Climate:  moderate; similar to southern California.   People Nationality:  Noun and adjective--South African(s).   Annual growth rate:  2.6%.   Population:  42.7 million (1993 est.).   Ethnic groups:  African (black) 29.1 million; white 5.5 million; colored (mixed race) 3.3 million; Asian (Indian) 1 million.   Languages:  Afrikaans, English, Ndebele, North Sotho, South Sotho, Swati, Tsonga, Tswana, Venda, Xhosa and Zulu (all official languages).   Religions:  Predominantly Christian; traditional African, Hindu, Muslim, Jewish.  Education:  Years compulsory--7 yrs. for all children but not currently enforced.  An estimated 2 million school-age children do not attend school.   Health:  Infant mortality rate (per 1,000 live births)--66.  Life expectancy--65 yrs., women; 59 yrs., men.  Government Type:  Executive--president; under the 1993 transitional constitution, bicameral Parliament.   Independence:  The Union of South Africa was created on May 31, 1910; became sovereign state within British empire in 1934; became a Republic on May 31, 1961; left the Commonwealth in October 1968. Nonracial, democratic constitution came into effect April 27, 1994; rejoined the Commonwealth in May 1994.    Branches: Executive--president (chief of state) elected to a five-year term by the Parliament.  Legislative--bicameral Parliament consisting of 490 members in two chambers. National Assembly (400 members) elected by a system of proportional representation for a maximum five-year term.  Senate consisting of 90 members elected by the Provincial Legislatures (10 senators from each province).  Judicial--Supreme Court consisting of Appellate Division in Bloemfontein and nine provincial divisions.  Constitutional Court with power to override Parliament.   Administrative subdivisions:  Nine provinces:  Northern Cape, Western Cape, Eastern Cape, North-West, Northern Transvaal, Eastern Transvaal, PVW (Pretoria-Witwatersrand-Vereeniging), Orange Free State, Kwazulu/Natal.  Political parties:  African National Congress (ANC), National Party (NP), Inkatha Freedom Party (IFP), Vryheidsfront/Freedom Front (FF), Democratic Party (DP), Pan-African Congress (PAC), African Christian Democratic Party (ACDP).    Suffrage--Citizens and permanent residents 18 and older.   Economy  GDP (1993):  $111.8 billion.  GDP growth rate (1993):  1.1%.   GDP per capita (1993): $2,815.  Unemployment (1993):  46% (is heaviest among blacks).  Natural resources:  Almost all essential commodities, except petroleum and bauxite.   Manufacturing (1993):  About 25% of GDP.  A world leader in the areas of railway rolling stock, synthetic fuels, and mining equipment and machinery.  Industry:  Types--minerals, auto- mobiles fabricated material, machinery, textiles, chemicals, fertilizer.  Trade:  Exports (1993)--$6.7 billion:  gold, other minerals and metals, agricultural products.  Major markets--U.S., Germany, Japan, United Kingdom, other Sub-Saharan African countries.  Imports (1993)--$5.2 billion:  machinery, mining equipment, transportation equipment, automobiles, computers, aircraft parts, rice, and office machinery parts.  Major suppliers--U.S., Germany, Japan, United Kingdom.   Finance and business services (1993): About 16% of GDP.  Mining (1993): 10% of GDP); world's largest producer and exporter of gold; also significant coal production.   Official exchange rate (1993 avg.): Financial rand 4.30 rand=U.S.$1; commercial rand 3.2 rand=U.S.$1.    (###)   PEOPLE Until 1991, South African law divided the population into four major racial categories:  Africans (black), whites, coloreds, and Asians.  Although this law has been abolished, many South Africans still view themselves and each other according to these categories.  Africans comprise about 75% of the population and are divided into a number of different ethnic groups.  Whites comprise about 14% of the population.  They are primarily descendants of Dutch, French, English, and German settlers who began arriving at the Cape in the late 17th century.   Coloreds are mixed race people, primarily descending from the earliest settlers and the indigenous peoples.  They comprise about 9% of the total population.  Asians descend from Indian workers brought to South Africa in the mid-19th century to work on the sugar estates in Natal.  They constitute about 2% of the population and are concentrated in the Kwazulu-Natal Province.  Education is in a state of flux.  Under the apartheid system, schools were segregated and the quantity and quality of education varied significantly across racial groups.  Although the laws governing this segregation have been abolished, the long and arduous process of restructuring the country's educational system is just beginning.  The challenge is to create a single nondiscriminatory, nonracial system which offers the same standards of education to all people.    HISTORY People have inhabited Southern Africa for thousands of years.  Members of the Khoisan language groups are the oldest surviving inhabitants of the land;  however, only a few are left in South Africa today, and they are located in the western sections.  Most of today's black South Africans belong to the Bantu language group, which migrated south from central Africa, settling in the Transvaal region sometime before AD 100.  The Nguni, ancestors of the Zulu and Xhosa, occupied most of the eastern coast by 1500.   The Portuguese were the first Europeans to reach the Cape of Good Hope, arriving in 1488.  However, permanent white settlement did not begin until 1652, when the Dutch East India Company established a provisioning station on the Cape.  In subsequent decades, French Huguenot refugees, the Dutch, and Germans began to settle in the Cape.  Collectively, they form the Afrikaner segment of today's population.    The establishment of these settlements had far-reaching social and political effects on the groups already settled in the area, leading to upheaval in these societies and the subjugation of their people.  By 1779, European settlements extended throughout the southern part of the Cape and east toward the Great Fish River.  It was here that Dutch authorities and the Xhosa fought the first frontier war.  The British gained control of the Cape of Good Hope at the end of the 18th century.  Subsequent British settlement and rule marked the beginning of a long conflict between the Afrikaners and the English.  Beginning in 1836, partly to escape British rule and cultural hegemony and partly out of resentment at the recent abolition of slavery, many Afrikaner farmers (Boers) undertook a northern migration which became known as the "Great Trek."  This movement brought them into contact and conflict with African groups in the area, the most formidable of which were the Zulus.  Under their powerful leader, Shaka (1787-1828), the Zulus conquered most of the territory between the Drakensburg Mountains and the sea (now Kwazulu-Natal).  In 1828, Shaka was  assassinated and replaced by his half-brother Dingane.  In 1838, Dingane was defeated and deported by the Voortrekkers (people of the great trek) at the battle of Blood River.  The Zulus, nonetheless, remained a potent force, defeating the British in the historic battle of Isandhlwana before themselves being finally conquered in 1879.  In 1852 and 1854, the independent Boer Republics of the Transvaal and Orange Free State were created.  Relations between the republics and the British Government were strained.  The discovery of diamonds at Kimberley in 1870 and the discovery of large gold deposits in the Witwatersrand region of the Transvaal in 1886 caused an influx of European (mainly British) immigration and investment.  Many blacks also moved into the area to work in the mines.  The construction by mine owners of hostels to house and control their workers set patterns that later extend-ed throughout the region.  Boer reactions to this influx and British political intrigues led to the Anglo-Boer Wars of 1880-81 and 1899-1902.  British forces prevailed in the conflict and the republics were incorporated into the British Empire.  In May 1910, the two republics and the British colonies of the Cape and Natal formed the Union of South Africa, a self-governing dominion of the British Empire.  The Union's constitution kept all political power in the hands of whites.   In 1912, the South Africa Native National Congress was formed in Bloemfontein and eventually became known as the African National Congress (ANC).  Its goals were the elimination of restrictions based on color and the enfranchisement of and parliamentary representation for blacks.  Despite these efforts, the government continued to pass laws limiting the rights and freedoms of blacks.  In 1948, the National Party (NP) won the all-white elections and began passing legislation codifying and enforcing an even stricter policy of white domination and racial separation known as "apartheid" (separateness).  In the early 1960s, following a protest in Sharpville in which 69 protestors were killed by police and 180 injured, the ANC and Pan-African Congress (PAC) were banned.  Nelson Mandela and many other anti-apartheid leaders were convicted and imprisoned on charges of treason.  The ANC and PAC were forced underground and fought apartheid through guerilla warfare and sabotage.  In May 1961, South Africa relinquished its dominion status and declared itself a republic.   Later that year, it withdrew from the Commonwealth, in part because of international protests against apartheid.   In 1984, a new constitution came into effect in which whites allowed coloreds and Asians a limited role in the national government and control over their own affairs in certain areas.  Ultimately, however, all power remained in white hands.  Blacks remained effectively disenfranchised. Popular uprisings in black and colored  townships in 1976 and 1985 helped to convince some NP members of the need for change.  Secret discussions between those members and Nelson Mandela began in 1986.  In February 1990, State President F.W. de Klerk--who had come to power in September 1989--announced the unbanning of the ANC, the PAC, and all other anti-apartheid groups.  Two weeks, later Nelson Mandela was released from prison.  In 1991, the Group Areas Act, Land Acts, and the Population Registration Act--the last of the so-called "pillars of apartheid"--were abolished.  A long series of negotiations ensued, resulting in a new constitution promulgated into law in December 1993.  The country's first nonracial elections were held on April 26-29, 1994, resulting in the installation of Nelson Mandela as President on May 10, 1994.    GOVERNMENT AND POLITICAL CONDITIONS South Africa is under a transitional constitution until 1999.  The constitution provides for some executive power-sharing among political parties based on the proportion of the vote they received in the April 1994 elections.  Under the current constitution, there is a bicameral Parliament, a president, and an independent judiciary.   The Parliament consists of two houses--the National Assembly and the Senate--which are responsible for drafting the laws of the republic.  Under the current constitution the Parliament, when seated in joint session, is called the Constitutional Assembly.  This Assembly is required, by April 1996, to draft and approve a new constitution which is consistent with 34 constitutional principles.  If this fails, it will be dissolved and new elections held.  If successful, it will remain in office until 1999, when new elections, under the new constitution, will be held.   The National Assembly is comprised of 400 members elected by a system of "list proportional representation."  Each of the 19 parties that appeared on the ballot submitted a rank-ordered list of candidates.  The voters then cast their ballots for one party.  Seats in the Assembly were allocated based on the percentage of votes each party received.  In the 1994 elections, the ANC gained 252 seats in the Assembly, the NP 82, the Inkatha Freedom Party (IFP) 43, the Vyheidsfront/Freedom Front (FF) 9, the Democratic Party (DP) 7, the PAC 5, and the African Christian Democratic Party (ACDP) 2.  The Assembly also has specific control over bills relating to monetary matters.   The Senate consists of 90 members, 10 from each of the nine provinces created under the new constitution.  Voters received a separate ballot to elect provincial legislators, again utilizing the list proportional representation system.  Each of the Provincial Legislatures then chose the 10 senators based on the distribution of seats among the competing parties.  The Senate has co-equal legislative powers with the National Assembly, except for monetary bills.  However, it is specifically responsible for those laws which deal with the powers of the provinces.   The president is the executive head of state.  Following the April 1994 elections, the National Assembly elected Nelson Mandela President.  In addition, both the largest and second-largest parties--the ANC and NP--chose one deputy president each.  The president's responsibilities include assigning cabinet portfolios, signing bills into law, and serving as commander-in-chief of the military.  The president must work closely with the executive deputy presidents and the cabinet.  There are 27 seats on the cabinet; any party holding at least 20 in the Assembly is entitled to a proportionate share of cabinet seats.   The third arm of the central government is an independent judiciary.  This judiciary is characterized by a Supreme Court that consists of two sections--the Appellate Division and the Constitutional Court.   The Appellate Division (Court of Appeals) consists of the Supreme Court in Bloemfontein and nine regional Supreme Courts.  The Supreme Courts hear cases involving serious crimes, including capital offenses.  There are a series magisterial courts that rule on lesser crimes.  The jury system was abolished in 1969 and, as a result, the presiding judge or magistrate determines guilt or innocence.  The new constitution establishes a Constitutional Court with interpreting, defending, and enforcing the constitution.  The court will consist of a president and 10 judges and will have the power to overturn any law or executive act that it deems unconstitutional.  Chapter three of the constitution delineates over 25 fundamental rights of a South African citizen which the court is tasked with protecting.  The Constitutional Court must rule on whether the constitution adopted by the Constitutional Assembly or any of the provinces are consistent with the current constitution's constitutional principles.  Challenges Ahead Some of the challenges facing the Government of South Africa include raising the living standards of the majority of the population and restructuring the systems of government, education, and security forces.  Beginning in May 1994, the government embarked on the Reconstruction and Development Program to begin addressing the inequities of apartheid.   Prior to April 27, 1994, South Africa was divided into four provinces and 10 black "homelands," four of which were considered independent by the South African Government.  The new constitution abolished these distinctions and replaced the system with nine provinces.  Each province has an elected legislature and chief executive--the provincial premier.  While appearing to be a quasi-federal system, the nature of the relationship between the central and provincial governments has yet to be determined. During the apartheid era, the armed wings of the ANC and PAC waged an armed struggle against the regime.  The new government is now in the process of integrating these two forces and those of the now-defunct homelands into a single national defense force.  Human Rights The new constitution grants more than 25 inalienable and fundamental rights to all South Africans.  These rights include universal suffrage; equal protection under the law; and freedom of assembly, movement, religion, and expression.  The constitution also includes the right to a fair and public trial and freedom from political or extrajudicial killings, arbitrary arrest, or detention.  This constitution is the first in South Africa to guarantee these rights to all people, regardless of race or color.  In the final years of apartheid, levels of political violence were extremely high in South Africa.  The Human Rights Commission (HRC) reported that from July 1990 to March 1994, 13,464 people died in political violence.  Of that number, 4,139 died between July 1993 and March 1994.  The often violent confrontations between supporters of the ANC and IFP and the apparent random violence by individuals or groups opposed to South Africa's transition to democracy were thought to be major causes of this violence.   In most parts of the country, political violence dropped significantly following the April elections.  This is attributed, in part, to the newfound freedom to air and address political grievances.  However, incidents of political violence remain high in Kwazulu/Natal Province and in certain areas around Johannesburg.   In November 1993, the multi-party negotiating council agreed to repeal those sections of the Public Safety Act and the Internal Security Act which detained individuals without charging them with a crime.  The Human Rights Committee of South Africa reports that in the first half of 1994, 270 detentions without trial were recorded.  However, as of late June 1994,  no one was being held.   Principal Government Officials  State President--Nelson Mandela (ANC)  First Executive Deputy President--Thabo Mbeki (ANC)  Second Executive Deputy President--Frederik W. de Klerk (NP)   Ministers  Justice--Dullah Omar (ANC)  Defense--Joe Modise (ANC)  Safety and Security--Sydney Mufamadi (ANC)  Education--Sibusiso Bengu (ANC) Trade, Industry and Tourism--Trevor Manuel (ANC)  Foreign Affairs--Alfred Nzo (ANC) Labor--Tito Mboweni (ANC)  Posts, Telecommunication and Broadcasting--Pallo Jordan (ANC) Health--Nkosazana Dlamini (ANC)  Transport--Mac Maharaj (ANC) Provincial Affairs and Constitutional Development--Roelf Meyer (NP) Land Affairs--Derek Hanekom (ANC) Public Enterprises--Stella Sigcau (ANC) Public Service and Administration--Zola Skweyiya (ANC)  Housing--Joe Slovo (ANC)  Public Works--Jeff Radebe (ANC)  Correctional Services--Sipho Mzimela (IFP)  Finance--Chris Liebenberg (no party affiliation)  Agriculture--Kraai Van Niekerk (NP) Sports and Recreation--Steve Tshwete (ANC)  Home Affairs--Mangosuthu Buthelezi (IFP)  Water Affairs and Forestry--Kader Asmal (ANC)  Environmental Affairs--Dawie de Villiers (NP)  Mineral and Energy Affairs--Roelf "Pik" Botha (NP)  Welfare and Population Development--Abe Williams (NP)  Arts, Culture, Science and Technology--Ben Ngubane (IFP)  Minister Without Portfolio--Jay Naidoo (ANC)   The Republic of South Africa maintains an embassy in the United States at 3051 Massachusetts Avenue NW, Washington, DC  20008; tel. [phone].    ECONOMY  South Africa has a broad-based, industrialized economy that paradoxically exhibits most of the characteristics associated with developing economies:  a division of labor between formal and informal sectors, uneven distribution of wealth and income, a dependency on commodity exports, and a legacy of government intervention.  The formal sector, based on mining and manufacturing, is well developed.  A smaller, but important, agricultural and service sector exists.  Despite a strong private sector, there has been substantial government intervention in the economy.  There also are a number of large government-owned corporations.  Economic policy has concentrated on the formal sector, but since the mid-1980s, the policy has sought to develop the informal sector, focusing on education and training, job creation, and small business assistance.  The transition to a democratic, non-racial government, begun in early 1990, stimulated a debate on future economic policies to achieve sustained economic growth, redress the socioeconomic disparities created by apartheid, and improve the standard of living for the majority of the population.  The government is pursuing market-based policies, with the private sector as generator of wealth and the government actively addressing the inequities in health, education, housing, and social services.  It has embarked on a five-year, $10.5 billion Reconstruction and Development Program which would implement programs to reduce unemployment, provide free medical care to pregnant mothers and children under age 6, electrify many homes in town-ships, and build 1 million new homes.  To accomplish its goals without under-mining business confidence, the governments first-year budget calls for continued fiscal discipline and strict monetary controls.  South Africa aims to establish and maintain a pro-business environment and is encouraging both foreign and domestic investment.  Financial Policy South Africa has a sophisticated financial structure with a large and effective stock exchange.  The South Africa Reserve Bank performs all central banking functions.  It is independent but, in practice, works closely with the Department of finance to formulate and implement government policy.  The Exchange Control Department of the bank administers foreign exchange control regulations.  Exchange controls apply mainly to South African residents, but foreign investors are affected by the dual-exchange rate system for commercial and financial rand.  All foreign investment must be completed in financial rand (finrand) currency.  The finrand is used for investment and disinvestment purposes such as investing in South African securities and specified unit trusts, purchase of shares in new and existing companies, and the purchase of commercial property.  The commercial rand is used for all other business transactions in South Africa.  Although assets must be purchased in finrand, all dividends, interest, and income are freely remitted through the commercial rand.    Although there was press speculation that the finrand would be abolished and a unitary system adopted, government and bank officials set certain conditions for abolition of the dual-currency system, stating that the system would remain in effect until the conditions were met.   </text>
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        <text>U.S. Department of StateBackground Notes: Singapore, November 1995Bureau of Public AffairsNovember 1995Official Name: Republic of Singapore  PROFILE  Geography  Area: 641 sq. km. (247 sq. mi.)  Cities: Capital--Singapore (country is a city-state).  Terrain: Lowland.  Climate: Tropical.  People  Nationality: Noun and adjective--Singaporean(s).  Population (1994): 2.9 million (including resident foreigners).  Annual growth rate (1994): 2%.  Ethnic groups: Chinese 77%, Malays 14%, Indians 7%. Religions: Buddhist, Taoist, Muslim, Christian, Hindu.  Languages: English, Mandarin and other Chinese dialects, Malay, Tamil.  Education: Years compulsory--none. Attendance--93%. Literacy--91%.  Health (1994): Infant mortality rate--4/1,000. Life expectancy--74 yrs. male, 78 yrs. female.  Work force (1994): 1.6 million. Industry and commerce--66%. Services--27%. Government--6%. Agriculture--0.3%.  Government  Type: Parliamentary republic. Constitution: June 3, 1959 (amended 1965 and 1991). Independence: August 9, 1965. Branches: Executive--president (chief of state, four-year term); prime minister (head of government). Legislative--unicameral 81-member parliament (maximum five-year term). Judicial--High Court, Court of Appeal, subordinate courts. Political parties: People's Action Party (PAP), Singapore Democratic Party (SDP), Workers' Party (WP), Singapore's Peoples Party (SPP). Suffrage: Universal and compulsory  at 21.  Economy  GDP (1994): $69 billion.  Annual growth rate (1994): 10%.  Per capita income (1994, current prices): $16,200.  Natural resources: None. Agriculture: Products--poultry, orchids, vegetables, fruits. Manufacturing (28% of real GDP): Types--electronic and electrical products and components, petroleum products, machinery and metal products, chemical and pharmaceutical products, transport equipment (mainly shipbuilding and repairs), food and beverages, printing and publishing, textiles and garments, plastic products, instrumentation equipment. Trade (1994, excluding Indonesian trade, which is not reported by Singaporean authorities): Exports--$96 billion: office and data machines, machinery, petroleum products, telecommunications equipment, chemicals, textiles and garments. Major markets--Malaysia 20%, U.S. 19%, European Union (EU) 13%, Hong Kong 9%, and Japan 7%. Imports--$102 billion: crude oil and petroleum products, electrical, machinery, manufactured goods, and textiles and garments. Major suppliers--Japan 22%, Malaysia 16%, and U.S. 15%.  U.S.-SINGAPORE RELATIONS  The United States has maintained formal diplomatic relations with Singapore since that country became independent from Britain in 1965. Singapore's efforts to maintain economic growth and political stability and its support for regional cooperation harmonize with U.S. policy in the region and form a solid basis for amicable relations between the two countries. The growth of U.S. investment in Singapore and the large number of Americans living there enhance opportunities for contact between Singapore and the United States. Many Singaporeans visit and study in the United States.The U.S. Government sponsors visitors from Singapore each year under the International Visitor Program. The U.S. Government provides Fulbright awards to enable selected American professors to teach or conduct research at the National University of Singapore and the Institute of Southeast Asian Studies. It awards scholarships to outstanding Singaporean students for graduate studies at American universities and to American students to study in Singapore. The U.S. Government also occasionally sponsors cultural presentations in Singapore.The East-West Center and private American organizations, such as the Asia and Ford Foundations, also sponsor exchanges involving Singaporeans.The U.S. has a small military training assistance program with Singapore but provides no other bilateral aid.Singapore has consistently supported a strong U.S. military presence in the Asia-Pacific region. In 1990, the U.S. and Singapore signed a memorandum of understanding (MOU) which allows the U.S. access to Singapore facilities at Paya Lebar Airport and the Sembawang port. Under the MOU, a U.S. navy logistics unit was established in Singapore in 1992; U.S. fighter aircraft deploy periodically to Singapore for exercises; and an increased number of U.S. military vessels visit Singapore.  Trade and Investment  The U.S. is Singapore's second-largest market, absorbing 19% of Singapore's exports. Singapore employs careful economic management and skilled public relations to attract U.S.-based multinational corporations. Despite its relatively high-cost operating environment, Singapore continues to attract investment funds on a large scale. The U.S. leads in foreign investment, accounting for 57% of new foreign commitments (and 42% of all new commitments) to the manufacturing sector in 1994. Japan was second with a 21% share, followed by the EU (20.6%). Cumulative investment by American companies in Singapore is now about $10.5 billion. The bulk of U.S. investment is in electronics manufacturing, oil refining and storage, and the chemical industry. Singapore's total trade in 1994 amounted to $198 billion; Singapore imported $96 billion and exported  $102 billion worth of merchandise. Japan was Singapore's main import source (22% of the market), while Malaysia was Singapore's largest market, absorbing 20% of Singapore's exports. The U.S. was Singapore's second-largest export market at 19%. Singapore's exports to the U.S. consist of computer disk drives, computer parts and peripherals, integrated circuits, microcomputers, telecommunications equipment, and chemical products. Principal U.S. Embassy Officials  Ambassador--Timothy A. Chorba Deputy Chief of Mission--Emil Skodon Economic/Political Counselor--Charles Jacobini Political Officer--David Keegan Economic Officer--Anne Galer Ryan Public Affairs Counselor--Michael Anderson Commercial Counselor--Steven Craven Administrative Counselor--Joseph Hilliard, Jr. Defense Attache--Capt. Jeremy C. Rosenberg, USN  The U.S. embassy in Singapore is located at 30 Hill Street, Singapore 0617  (tel. [phone], fax [phone]).  GOVERNMENT  According to the constitution, as amended in 1965, Singapore is a republic with a parliamentary system of government. Political authority rests with the prime minister and the cabinet. The prime minister is the leader of the political party or coalition of parties having the majority of seats in parliament. The president, who is chief of state, previously exercised only ceremonial duties. As a result of 1991 constitutional changes, the president is now elected and exercises expanded powers over legislative appointments, government budgetary affairs, and internal security matters.The unicameral parliament consists of 81 members elected on the basis of universal adult suffrage. In the last general election, in August 1991, the governing People's Action Party (PAP) won 77 of the 81 seats, while opposition seats increased from one to four. The president may appoint up to six members of parliament from among nominations by a special select committee. These nominated members of parliament (NMPs) enjoy the same privileges as MPs (members of parliament) but cannot vote on constitutional matters or expenditures of funds. The maximum term of any one parliament is five years. Voting has been compulsory since 1959.Judicial power is vested in the High Court and the Court of Appeal. The High Court exercises original criminal and civil jurisdiction in serious cases as well as appellate jurisdiction from subordinate courts. Its chief justice, senior judge, and six judges are appointed by the president. Appeals from the High Court are heard by the Court of Appeal. The right of appeal to the Privy Council in London was abolished effective April 1994.The ruling party in Singapore, dominant since 1959, is the PAP, now headed by Prime Minister Goh Chok Tong. The PAP has held the overwhelming majority of seats in parliament since 1966. Goh succeeded Lee Kuan Yew, who served as Singapore's Prime Minister from independence through 1990. Since stepping down as Prime Minister, Lee has remained influential as Senior Minister.The PAP has held the overwhelming majority of seats in parliament since 1966, when the opposition Barisan Sosialis Party (Socialist Front) resigned from parliament, leaving the PAP as the sole representative party. In the general elections of 1968, 1972, and 1980, the PAP won all of the seats in parliament.  Workers' Party Secretary General J.B. Jeyaretnam became the first opposition party MP in 15 years when he won a 1981 by-election. Opposition parties gained a small number of seats in the general elections of 1984 (two seats out of a total of 79), in 1988 (one seat of 81), and 1990 (four seats of 81). Meanwhile, the PAP share of the popular vote declined from 78% in 1980 to 61% in 1991.  Principal Government Officials  President--Ong Teng Cheong Prime Minister--Goh Chok Tong Senior Minister--Lee Kuan Yew Deputy Prime Minister--Lee Hsien Loong Ambassador to the United Nations--Chew Tai Soo Ambassador to the United States--S. R. Nathan  Singapore maintains an embassy in the United States at 3501 International Place NW, Washington, DC 20008 (tel. [phone], fax [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).  Upon their arrival in a country, U.S. citizens are encouraged to register at the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you en route in case of an emergency. Further Electronic Information: Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line. Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet: Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone]. Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone]. National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ==============================  Background Notes Series -- Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC   This information is in the public domain and may be reproduced without permission; citation of this source is appreciated.  (###)</text>
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        <text>PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJUNE 1994Official Name: Republic of Sierra LeonePROFILEGeographyArea:  72,325 sq. km. (29,925 sq. mi.); slightly smallerthan South Carolina.Cities:  Capital--Freetown (est. 470,000).  Principaldistrict towns--Bo (269,000), Kenema (337,000), Makeni(316,000).Terrain:  Three areas--mangrove swamps and beaches alongthe coast, wooded hills along the immediate interior, anda mountainous plateau in the interior.PeopleNationality:  Noun and adjective--Sierra Leonean(s).Population ( 1990 est.):  4.1 million.Annual growth rate (1990 est.):   2.4%.Ethnic groups:  Temne 30%, Mende 29%, Creole 2%; 39%spread over 15 other ethnic groups.Religions:  Muslim 60%, Animist 30%, Christian 10%.Languages:  English, Krio, Temne, Mende, and variousother indigenous languages.Education:  Literacy--less than 21%.  Health:  Lifeexpectancy--42 yrs.Work force:  Agriculture--75%.  Industry--17%.  Services--1%.GovernmentType:  Republic currently under military rule.  TheNational Provisional Ruling Council (NPRC) rules bydecree.Independence:  From Britain, April 27, 1961.Constitution:  October 1, 1991, in force, but severelyrestricted by military decrees.Political parties:  Political parties were suspended bythe NPRC after the April 29, 1992, coup.EconomyGDP (1990 est.):  $950 million.  GDP growth rate:  0.5%.Per capita GNP (est.):  $230.  Annual inflation rate:20%.Natural resources:  Diamonds, rutile, bauxite, iron ore,gold, platinum, and chromite.Agriculture:  Coffee, cocoa, ginger, palm kernels,kassava, bananas, citrus, peanuts, plantains, rice, sweetpotatoes, vegetables.  Land--30% potentially arable, 8%cultivated.Industry:  Diamonds, bauxite, and rutile mining;forestry; beverages; cigarettes; construction goods;tourism.Trade (1991):  Exports--$149 million:  mining 62%,agriculture 37%.  Major markets--Netherlands 31%, U.K.15%, Germany 11%, U.S. 9%.  Imports--$161 million:  crudeoil, rice, chemicals, machinery, pharmaceuticals,building materials, light consumer goods, foodstuffs,used clothing, textiles.Exchange rate: 580 Leones=U.S.$1.PEOPLEEighteen ethnic groups make up the indigenous populationof Sierra Leone.  The Temne in the north and the Mende inthe South are the largest.  About 60,000 are Creoles,descendants of freed slaves who returned to Sierra Leonefrom Great Britain and North America.  In addition, about11,000 Lebanese, 500 Indians, and 2,000 Europeans residein the country.In the past, Sierra Leoneans were noted for theireducational achievement, trading activity,entrepreneurial skills, and arts and crafts work,particularly wood carving.  Many are part of largerethnic networks extending into several countries, whichlink West African states in the area.  However, the levelof education and infrastructure have declined sharplyover the last 20 years.HISTORYEuropean contacts with Sierra Leone were among the firstin West Africa, and Sierra Leone was one of the firstWest African British colonies.Foreign settlement did not occur until 1787, when theBritish prepared a refuge within the British empire forfreed slaves; that year, the site of Freetown received400 freedmen from Great Britain.  Disease and hostilityfrom the indigenous people nearly eliminated the firstgroup of returnees.Thousands of slaves were returned to or liberated inFreetown.  Most chose to remain in Sierra Leone.  Thesereturned Africans--or Creoles as they came to be called--were from all areas of Africa.  Cut off from their homesand traditions by the experience of slavery, theyassimilated British styles of life and built aflourishing trade on the West African coast.In the early 19th century, Freetown served as theresidence of the British governor who also ruled the GoldCoast (now Ghana) and the Gambia settlements.  SierraLeone served as the educational center of British WestAfrica as well.  Fourah Bay College, established in 1827,rapidly became a magnet for English-speaking Africans onthe West Coast.  For more than a century, it was the onlyEuropean-style university in Western Sub-Saharan Africa.The colonial history of Sierra Leone was not placid.  Theindigenous people mounted several unsuccessful revoltsagainst British rule and Creole domination.  Most of the20th century history of the colony was peaceful, however,and independence was achieved without violence.  The 1951constitution provided a framework for decolonization.Local ministerial responsibility was introduced in 1953,when Sir Milton Margai was appointed Chief Minister.  Hebecame Prime Minister after successful completion ofconstitutional talks in London in 1960.  Independencecame in April 1961, and Sierra Leone opted for aparliamentary system within the British Commonwealth.Sir Milton's Sierra Leone Peoples Party (SLPP) led thecountry to independence and the first general electionunder universal adult franchise in May 1962.  Upon SirMilton's death in 1964, his half-brother, Sir AlbertMargai, succeeded him as Prime Minister.  Sir Albertattempted to establish a one-party political system butmet fierce resistance from the opposition All PeoplesCongress (APC).  He ultimately abandoned the idea.In closely contested elections in March 1967, the APC wona plurality of the parliamentary seats.  Accordingly, thegovernor general (representing the British Monarch)declared Siaka Stevens--APC leader and Mayor of Freetown--as the new Prime Minister.  Within a few hours, Stevensand Margai were placed under house arrest by BrigadierDavid Lansana, the Commander of the Republic of SierraLeone Military Forces (RSLMF), on grounds that thedetermination of office should await the election of thetribal representatives to the house.  A group of seniormilitary officers overrode this action by seizing controlof the government on March 23, arresting BrigadierLansana, and suspending the constitution.  The groupconstituted itself as the National Reformation Council(NRC) with Brigadier A.T. Juxon-Smith as its chairman.The NRC in turn was overthrown in April 1968 by a"sergeants' revolt," the Anti-Corruption RevolutionaryMovement.  NRC members were imprisoned, and other armyand police officers deposed.  Stevens at last assumed theoffice of Prime Minister under the restored constitution.The return to civilian rule led to bi-elections beginningin the fall of 1978 and the appointment of an all-APCcabinet.  Tranquillity was not completely restored.  In1970, a state of emergency was declared after provincialdisturbances, and in March 1971 and July 1974, allegedmilitary coup plots were uncovered by the government.The leaders of the plots were tried and executed.  In1977, student demonstrations against the governmentdisrupted Sierra Leone politics.Following the adoption of the republican constitution inApril 1971, Siaka Stevens was appointed President of theRepublic by the House; he was inaugurated for a secondfive-year term in April 1977.  In the national electionthat followed in May 1977, the APC won 74 seats and theopposition SLPP 15.  The next year, Stevens' Governmentwon approval for the idea of one-party government, whichthe APC had once rejected.  Following enactment of the1978 constitution, SLPP members of parliament joined theAPC.The first election under the new one-party constitutiontook place on May 1, 1982.  Elections in about two-thirdsof the constituencies were contested.  Because ofirregularities, elections in 13 constituencies werecanceled by the government.  Bi-elections took place onJune 4, 1982.  The new cabinet appointed after theelection was balanced ethnically between Temnes andMendes.  It included as the new Finance Minister SaliaJusu-Sheriff, a former leader of the SLPP who returned tothat party in late 1981.  His accession to the cabinetwas viewed by many as a step toward making the APC a truenational party.Siaka P. Stevens, who had been head of state of SierraLeone for 18 years, retired from that position inNovember 1985, although he continued his role as chairmanof the ruling APC party.  In August 1985, the APC namedmilitary commander Joseph Saidu Momoh as party candidateto succeed Stevens; he was Stevens' own choice.  Momohwas elected President in a one-party referendum onOctober 1, 1985.  A formal inauguration was held inJanuary 1986; new parliamentary elections were held inMay 1986.In October 1990, President Momoh set up a constitutionalreview commission to review the one-party 1978constitution with a view to broadening the existingpolitical process, guaranteeing fundamental human rightsand the rule of law, and strengthening and consolidatingthe democratic foundation and structure of the nation.The commission, in its report presented January 1991,recommended re-establishment of a multi-party system ofgovernment.  Based on that recommendation, a constitutionwas approved by parliament in July 1991 and ratified inSeptember; it received presidential assent in Septemberand became effective on October 1, 1991.  There was greatsuspicion that Momoh was not serious, however, and APCrule was increasingly marked by abuses of power.  Therebel war in the eastern part of the county posed anincreasing burden on the country, and on April 29, 1992,a group of young RSLMF officers launched a military coupwhich sent Momoh into exile in Guinea and established theNPRC as the ruling authority in Sierra Leone.GOVERNMENT AND POLITICAL CONDITIONSThe NPRC suspended the 1991 constitution and rules bydecree of the Supreme Council of State (SCS).  InNovember 1993, the NPRC announced a timetable which callsfor debate on and adoption of a new constitution, andgeneral elections in late-1995.  Most civil rights arerespected.  A critical press continues to operate, thoughthe government has intervened with individual editors inresponse to alleged inaccuracies.  Press guidelinesenacted  early in 1994 impose heavy new financial burdenson publishers, and may serve to reduce the number ofnewspapers being published.  Political parties remainsuspended.The judicial system continues to function for civilcases.  It is comprised of a supreme court, court ofappeal and a high court of justice with judges appointedby the head of state.  Local courts administertraditional law, with lay judges; appeals move from thesecourts to the superior courts.The basic unit of local government generally is theparamount chief and council elders.  There is also anelected council and mayor in Freetown, Bo, Kenema, andMakeni.  The three provinces each have a residentminister.Principal Government OfficialsHead of State and Chairman of the National ProvisionalRuling Council--Captain Valentine E.M.  StrasserDeputy Chairman of the National Provisional RulingCouncil and Chief Secretary of State--Captain JuliusMaada BioSecretary of State in the Chairman's Office--JohnBenjaminForeign Minister--Dr. Abass BunduAmbassador to the U.S.--Dr. Thomas K. KargboAmbassador to the UN--Paolo BanguraSierra Leone maintains an embassy in the United States at1701 19th Street, NW, Washington, DC, 20009, tel. [phone]; and a permanent mission to the United Nationsin New York at 245 East 49th Street, New York, New York10017, tel. [phone].ECONOMYRich in minerals, Sierra Leone has relied on the miningsector in general, and diamonds in particular, for itseconomic base.  In the 1970s and early 1980s, economicgrowth rate slowed because of a decline in the miningsector.  Maintaining unrealistic exchange rates andexcessive government budget deficits led to sizablebalance-of-payments deficits and inflation.Inappropriate policy responses to external factors andinefficient implementation of aid projects andmaintenance have led to a general decline in economicactivity and a serious degradation of economicinfrastructures.  Sierra Leone's short-term prospectsdepend upon continued adherence to IMF programs andcontinued external assistance.Although 75% of the population engages in subsistenceagriculture, and despite the fact that most SierraLeoneans derive their livelihood from it, agricultureaccounts for only 30% of national income.  The governmentis trying to increase food and cash crop production andupgrade small farmer skills.  Also, the government workswith several foreign donors to operate integrated ruraldevelopment and agricultural projects.Mineral exports remain Sierra Leone's principal foreignexchange earner.  Diamonds alone account for more thanhalf of export earnings.  The loss in 1992 of the Konodistrict diamond mining area to rebel forces has deprivedthe country of this major source of foreign exchange.Sierra Leone's second largest recorded export is bauxite,mined in the Sherbro area by a Swiss firm.  Thisproduction reached 50,000 tons in 1990.  Sierra Leone hasone of the world's largest deposits of rutile, a titaniumore used as paint pigment and welding rod coatings.Sierra Rutile Ltd., wholly owned by Nord Resources of theUnited States, began commercial mining operations nearBonthe in early 1979.  Sierra Rutile is the largest non-petroleum U.S. investment in West Africa.  The export of88,000 tons realized $75 million for the country in 1990.The company and the Government of Sierra Leone concludeda new agreement on the terms of the company's concessionin Sierra Leone in 1990.Sierra Leone, since independence, has been traditionallya pro-business nation.  The government encourages foreigninvestment, although the business climate has beenhampered by a shortage of foreign exchange anduncertainty resulting from civil conflicts.  Investorsare protected by an agreement that allows for arbitrationunder the 1965 World Bank Convention.  Legislationprovides for transfer of interest, dividends, andcapital.Sierra Leone is a member of the Economic Community ofWest African States (ECOWAS).  With Liberia and Guinea,it formed the Mano River Union (MRU) customs union,primarily designed to implement development projects andpromote regional economic integration.  The MRU has sofar been inactive, however, in part because of domesticproblems and the civil war in Liberia.  The future of theMRU depends on the ability of its members to deal withthe Liberian civil war.Sierra Leone continues to rely on significant amounts offoreign assistance, principally from multilateral donors.After the United States, Italy is the largest bilateraldonor, concentrating on electricity development, and itis followed by Germany, the United Kingdom and theEuropean Union.FOREIGN RELATIONSSierra Leone has maintained cordial relations with theWest, in particular with the United Kingdom.  It alsomaintains diplomatic relations with the republics of theformer Soviet Union as well as with North Korea and Iran.President Stevens' Government had sought closer relationswith neighboring Guinea and Liberia; the NPRC iscontinuing this effort.Sierra Leone is a member of the UN and its specializedagencies, the Commonwealth, the Organization of AfricanUnity (OAU), the Economic Community of West AfricanStates (ECOWAS), the African Development Bank (AFDB), theMano River Union (MRU), the Organization of the IslamicConference (OIC), and the Non-Aligned Movement.U.S.-SIERRA LEONE RELATIONSU.S. relations with Sierra Leone began with missionaryactivities in the 19th century.  In 1959, the U.S. openeda consulate in Freetown and elevated it to embassy statuswhen Sierra Leone became independent in 1961.U.S.-Sierra Leone relations today are cordial, withethnic ties between groups in the two countries receivingincreasing historical interest.  Many thousand SierraLeoneans reside in the United States.In FY 1992, total U.S. aid to Sierra Leone in allcategories was about $13.5 million, primarily throughcommodity contributions through PL-480, Title II programswith the World Food Program and Catholic Relief Services.U.S. aid also stressed vocational education, agriculture,rural development, and health and human resourcesdevelopment.Principal U.S. OfficialsAmbassador--Lauralee M. PetersDeputy Chief of Mission--Charles RayPublic Affairs Officer--Kiki MunshiPeace Corps Director--(vacant)The U.S. embassy is located at the corner of Walpole andSiaka Stevens Streets, Freetown, tel: [phone]fax: [phone].Published by the United States Department of State --Bureau of Public Affairs -- Office of PublicCommunication -- Washington, DC  June 1994 -- ManagingEditor:  Peter A. Knecht -- Editor:  Josephine C. BrooksDepartment of State Publication 8069 -- Background NotesSeries.  For sale by the Superintendent of Documents,U.S. Government Printing Office, Washington, DC  20402.</text>
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        <text>SENEGAL BACKGROUND NOTES (JULY 1991)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEJuly 1991Republic of SenegalPROFILEGeographyArea:  196,840 sq. km. (76,000 sq. mi.); about the size of South Dakota.Cities:  Capital--Dakar.  Other cities--Thies, Kaolack, Saint-Luis, Ziguinchor.Terrain:  Flat or rising to foothills. Climate:  Tropical/Sahelian--desert orgrasslands in the north, heavier vegetation in the south and southeast.PeopleNationality:  Noun and adjective--Senegalese (sing. and pl.).  Population(est. 1990):  7 million.  Annual growth rate:  3%. Ethnic groups:  Wolof 43%,Fulani (Peulh) and Toucouleur 23%, Serer 15%, Diola, Mandingo, andothers 22%.  Religions: Muslim 94%, Christian 5%, traditional 1%.Languages:  French (official), Wolof, Pulaar, Diola, Mandingo.  Education:Attendance--primary 60%, secondary 15%. Literacy--28%. Health:  Infantmortality rate--78/1,000.  Life expectancy--48 yrs. Work force (3.4 million):Agriculture--70% (subsistence or cash crops).  Wage earners(250,000)--private sector 40%, government and parapublic 60%.GovernmentType:  Republic. Independence:  April 4, 1960. Constitution:  March 3, 1963,last revised 1984. Branches:  Executive--president (chief of state, commander in chief ofarmed forces).  Legislative--National Assembly (single chamber with 120deputies).  Judicial--Supreme Court (appointed by the president from sittingmagistrates.)Administrative subdivisions:  10 regions, 30 departments, 95arrondissements.Political parties:  17 registered parties, including the Socialist Party (PS), theDemocratic Party of Senegal (PDS), the People's Liberation Party (PLP), theDemocratic League/Movement for a Labor Party (LD/MPT), and theIndependence and Labor Party (PIT).  Suffrage:  Universalat 21.Central government budget (1988-89):  $1 billion.Defense (1989):  $96 million.National holiday:  April 4, Independ- ence Day.Flag: Three vertical bands--green, yellow, red, with a green star centered inthe yellow band.EconomyGDP (1989):  $5 billion. Annual growth rate:  6%. Per capita GDP (1988):$630.  Inflation rate (1989): 2%.Natural resources:  Fish, phosphate.Agriculture (22% of GDP):  Products--peanuts, millet, sorghum, manioc, rice,cotton.Industry (24% of GDP): Types--fishing, agricultural product processing, lightmanufacturing, mining.Services:  54% of GDP.Trade (1989):  Exports--$778 million: seafood, peanut products, phosphaterock.  Major markets--France, other European Community, US,Communaute Financiere Africaine (CFA) zone.  Imports--$987 million: food,consumer goods, petroleum, machinery, transport equipment.  Majorsuppliers--France, Nigeria, Algeria, Thailand, US.Exchange rate:  Floating rate fixed with French franc (FF)--franc 50=1 FF;1989 average 315 F CFA=US$1.Economic aid received (1988):  $566 million. US (1989)--$32 million.Membership in International OrganizationsUN and some of its specialized and related agencies, Non-AlignedMovement, Organization of the Islamic Conference (OIC), Organization ofAfrican Unity (OAU), West African Monetary Union, Interstate Committee toCombat the Sahel Drought (CILSS), Economic Community of West AfricanStates (ECOWAS), West African Economic Community (CEAO), SenegalRiver Development Organization (OMVS), Gambia River DevelopmentOrganization (OMVG).PEOPLEDespite the rapid migration into cities and towns, some 70% of Senegal'spopulation is still rural.  In these areas, density varies from about 77 persquare kilometer (200 per sq. mi.) in the west-central region to 2 per squarekilometer (5 per sq. mi.) in the arid eastern section.  Some 40,000Europeans (mostly French) and Lebanese reside in Senegal, mainly in thecities.  French,  the official language, is used primarily by the literateminority.  Most Senegalese speak Wolof, Pulaar, Diola, Mandingo, or otherethnic languages.HISTORYArchaeological findings throughout the area indicate that Senegal wasinhabited in prehistoric times.  Islam established itself in the Senegal Rivervalley in the 11th century.  Today, 94% of Senegalese are Muslims.  In the13th and 14th centuries, the area came under the influence of the greatMandingo empires to the east, during which the Jolof Empire of Senegalwas founded.  The empire comprised the states of Cayor, Baol, Oualo,Sine, and Soloum until the 16th century, when they revolted forindependence.The Portuguese were the first Europeans to trade in Senegal, arriving in the15th century.  They were soon followed by the Dutch and French.  Duringthe 19th century, the French gradually established control over the interiorregions and administered them as a protectorate until 1920, and as acolony thereafter.  After 1902, Dakar was the capital of all of French WestAfrica.  In 1946, a territorial assembly was elected by a restricted franchiseand given advisory powers.  These were gradually expanded and thefranchise broadened in succeeding years.  After the 1958 Frenchconstitutional referendum, Senegal became a member of the FrenchCommunity with virtually complete internal autonomy.In January 1959, Senegal and the French Soudan merged to form the MaliFederation, which became fully independent on June 20, 1960, as a resultof the independence and the transfer of power agreement signed withFrance on April 4, 1960.  Due to internal political difficulties, the federationbroke up on August 20, 1960; Senegal and Soudan (renamed the Republicof Mali) each proclaimed separate independence.  Leopold Sedar Senghor,internationally renowned poet, politician, and statesman, was electedSenegal's first president in August 1960.After the breakup of the Mali Federation, President Senghor and PrimeMinister Mamadou Dia governed together under a parliamentary system.In December 1962, their political rivalryled to an attempted coup by Prime Minister Dia.  Although this was putdown without bloodshed, Dia was arrested and imprisoned, and Senegaladopted a new constitution.  Dia was released in 1974.Since assuming the presidency in 1981, Abdou Diouf has encouragedbroader political participation, reduced government involvement in theeconomy, and widened Senegal's diplomatic engagements, particularly withother developing nations.  Despite chronic economic problems tempestuousdomestic politics that have, on occasion, spilled over into street violence,border tensions, and a nagging and occasionally violent separatistmovement in the southern region of Casamance, Senegal's commitment todemocracy and human rights appears strong as the republic enters itsfourth decade of independence.GOVERNMENT AND POLITICAL CONDITIONSSenegal is a republic with a strong presidency, legislature, independentjudiciary, and multiple political parties.  The president is elected by universaladult suffrage to a 5-year term.  The unicameral National Assembly has 120members, elected at the same time as the president.  The Supreme Court,whose justices are named by the president, is the nation's highest tribunal.Senegal is divided into 10 administrative regions, each headed by agovernor appointed by and responsible to the president.Senegal's principal political party is the Socialist Party (name changed fromSenegalese Progressive Union in 1976 after having joined the SocialistInternational), founded in 1949 by Leopold Senghor and now led byPresident Diouf.  The Socialist Party, which has governed Senegal sinceindependence in 1960, has advocated a moderate form of socialism basedon traditional African concepts but increasingly has encouraged privateenterprise, including foreign investment.Leopold Senghor, was elected in 1960, and served continuously until hisretirement in 1980.  In accordance with the constitution, Prime MinisterAbdou Diouf succeeded Senghor as president.  Diouf was elected to a full5-year term in his own right in 1983.The constitution, which previously restricted the number of political partiesto four, was amended in 1981 to legitimize previously unrecognized parties.The number of parties now stands at 17, the majority of which participatedin the February 1983 presidential and legislative elections.  In theseelections, the Socialist Party won 111 of the National Assembly's 120 seats,with the opposition split between Abdoulaye Wade's Parti DemocratiqueSenegalais (PDS) (8 seats) and Cheikh Anta Diop's RassamblementNational Democratique (1 seat).  The last national elections were held onFebruary 28, 1988, when President Diouf was re-elected for another 5 yearterm.  The Socialist Party retained  103 National Assembly seats, the PDStook 17.Principal Government OfficialsPresident of the Republic--Abdou DioufAmbassador to the United States--Ibra Deguene KaAmbassador to the United Nations--Claude Beckers DialloSenegal maintains an embassy in the United States at 2112 WyomingAvenue, NW., Washington, DC 20008  (tel. [phone]), and a missionto the United Nations at 392 Fifth Avenue, 9th floor, New York, NY 10018(tel. [phone]).DEFENSESenegal has well-trained and disciplined armed forces consisting of some12,000 army, air force, and navy personnel.  The Senegalese military forcereceives most of its training, equipment, and support from France.  TheUnited States, Great Britain, West Germany also provide limited support.Senegal has participated in international and regional peace- keepingmissions.  The Senegalese contributed a 600-member battalion to the UNInterim Force in Lebanon and also dispatched a battalion to the ShabaProvince of Zaire as part of the Inter-African Force assembled to counterdissident attacks against Kolwezi in 1978.  In August 1981, the Senegalesemilitary was invited into The Gambia by President Dawda Kairaba Jawarato put down a coup attempt.  Most recently, Senegal contributed a 500-mancontingent to the Persian Gulf coalition.ECONOMYSenegal's resource-poor economy is vulnerable to droughts, environmentaldegradation, and international commodity price fluctuations, and is heavilydependent on international donor assistance.  Senegal is overwhelminglyagricultural, with more than 70% of the labor force engaged in farming.Peanut production accounts for half of agricultural output, and food crops,especially millet, rice, corn, sorghum, and beans, currently provide abouttwo-thirds of the country's food needs.  The government plans extensiveexploitation of the Senegal River basin and the southern Casamance regionthrough investment in agroindustry with the aim of moving Senegal closerto food self-sufficiency.In spite of problems, the fishing sector has become a bright spot on theSenegalese economic horizon.  Export earnings reached about $209 millionin 1988, and rewriting of the fishing code and greater efforts at surveillanceof Senegal's coastline hold promise for increased revenues.Results from phosphate production, the third major foreign exchangeearner, are promising.  Production has increased and markets haveexpanded, and earnings have rebounded from the low world prices of 1987.Receipts from tourism, the fourth major foreign exchange earner, continueto climb. Since the early 1980s, President Diouf has pursued an ambitious reformprogram, undertaken with substantial donor help, designed to liberalize theeconomy by strengthening incentives to economic activity in the agriculturaland industrial sectors and reducing the cost of government and improvingits operations.  After years of deteriorating productivity and export earnings,the economy stabilized as stringent monetary and fiscal policies havecurbed demand, stabilized prices, reduced massive trade deficits, andnarrowed the government budget deficit.  Substantial rainfall over the pastseveral years have resulted in good harvests and a rebound in real GDPgrowth, which averaged about 3.6% in real terms over the 1986-90period--excluding 1988-89, when real GDP growth fell to less than 1% dueto uneven rainfall, locust infestations, and civil disturbances.  Although tradein the past 2 years has improved as a result of increases in world prices forSenegal's major export commodities, peanuts and phosphates, and lowerworld oil prices, Senegal's external debt continues to require nearly 22% ofannual earnings from exports and services, even after debt relief is takeninto account.In January 1990, the World Bank approved a fourth structural adjustmentloan of $80 million for Senegal.  Current adjustment  efforts, building on theprocess begun in 1985, focus on improving private sector incentives,reducing the costs of production (especially labor and energy), which makeSenegalese exports uncompetitive and simplifying administrative regulations;public sector resource management, reducing spending on civil servicewages and on subsidies to parastatals; and minimizing the social costs ofadjustment.  On June 30, 1990, Senegal completed the second year of a3-year $190 million enhanced structural adjustment facility program with theInternational Monetary Fund (IMF) and is implementing stringent revenueenhancement measures and expenditure cuts in preparation for the thirdyear of that program.Senegal seeks to attract foreign investment to hasten economicdevelopment.  Under the provisions of the 1987 investment code, the formerlengthy approval process has been eased, and capital and profits may befreely repatriated.  Exoneration from duty on imports of capital equipmentmay be available up to 12 years depending on sector and location.The Industrial Free Trade Zone, a government-owned and operated freetrade zone, offers liberal tax advantages and exemptions from customsduties for investors manufacturing for export.  Direct US investment inSenegal currently is about $30 million, mainly in petroleum marketing,pharmaceuticals manufacturing, and mining.  A US-Senegalese investmenttreaty has been ratified by Congress and is awaiting final formalities beforeit becomes effective.  Economic assistance, currently about $600 million ayear, comes largely from France, the World Bank, the IMF and the UnitedStates.  Significant amounts of assistance also are provided by Canada,Italy, Japan, and others.Senegal has excellent infrastructure, including well-developed port facilities,a major international airport serving 24 international airlines, direct andexpanding telecommunications links with major world centers, and a goodroad and railway system.FOREIGN  RELATIONSFormer President Senghor advocated close relations with France andnegotiation and compromise as the best means of resolving internationaldifferences.  To a large extent, President Diouf has carried on Senghor'spolicies and philosophies.  Senegal long has supported functionalintegration among French-speaking West African states through the WestAfrican Economic Community, and has taken an active role in the EconomicCommunity of West African States.  Senegal has a high profile in manyinternational organizations and was a member of the UN Security Councilin 1988-89.  President Diouf was chairman of the Organization of AfricanUnity in 1985-86, host of the Third Francophone Conference in 1989, andwill host the Organization of the Islamic Conference summit in 1991.Friendly to the West, especially France and the US, Senegal also is avigorous proponent of more assistance from developed countries to theThird World.Senegal traditionally has had good relations with its neighbors; however, anumber of problems have developed that include a maritime boundarydispute with Guinea-Bissau, the dissolution of the SenegambiaConfederation in 1989, and ongoing border and ethnic conflict withMauritania.  Senegal is actively seeking a diplomatic resolution of theseproblems.US-SENEGALESE RELATIONSThe United States maintains friendly relations with Senegal and providesconsiderable economic and technical assistance.  President Diouf made hisfirst official visit to Washington, DC, in August 1983 and has traveled severaltimes to the US since then, most recently in the fall of  1990.  As Senegal'sthird largest supplier, the United States exported $69 million in goods in1989, about 7% of Senegal's total imports.  For American businessmen,doing business with Senegal, the US Export-Import Bank provides exportcredits and guarantees, and  the Overseas Private Investment Corporationprovides investment insurance.  US direct investment in Senegal is valuedat about $30 million.  Recent business developments include aUS-Senegalese joint venture in a dairy and beef operation and explorationby the Dupont Company for titanium oxide.Since 1946, US assistance to Senegal has included capital and technicalassistance and loans and donations of food under PL 480 (Food for Peace).The US Agency for International Development implements this assistanceeffort through financial  stabilization; structural reforms; and projects theareas of agriculture, natural resource management, private enterprise, andhealth and family planning.  US primary development objectives in Senegalcurrently are to promote a dynamic market economy, increase cerealsproduction, and improve family health.The United States also has played a significant role in the highly successfulbattle against locust and grasshopper infestation and has providedemergency relief assistance to refugee populations.  Total US bilateralassistance to Senegal in 1990 was $42 million.  The Peace Corps inSenegal involves some 100 volunteers, engaged in forestry, health, andsmall business development.  The cultural exchange program consists ofthree Fulbright professors and about 20-30 international visitor grants ayear.Principal US OfficialsAmbassador--George E. MooseDeputy Chief of Mission--Prudence BushnellUSAID Director--Julius ColesPublic Affairs Officer (USIS)--Robert PalmeriDefense Attache--Lt. Col. Stephan Mytczynsky, USMCPeace Corps Director--Bruce CohenPolitical Officer--Michael DavisEconomic Officer--Alice DressConsular Officer--Bridget BurkhartThe US Embassy in Senegal is located on Ave. Jean XXIII at theintersection of Ave. Kleber, (PO Box 49), Dakar.</text>
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        <text>BACKGROUND NOTES:  SAUDI ARABIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEAUGUST 1994Official Name:  Kingdom of Saudi ArabiaPROFILEGeographyArea:  1,960,582 sq. km. (1,176,349 mi.), about one-fourth the size of the continental United States.Cities:  Capital--Riyadh (pop. 2.5 million).  Othercities--Jeddah (1.6 million), Makkah, (1.5 million),Dammam/Khobar/Dhahran, (1 million).Terrain:  Primarily desert with rugged mountains in thesouthwest.Climate:  Arid, with great extremes of temperature in theinterior; humidity and temperature are both high alongthe coast.PeopleNationality:  Noun--Saudi(s).  Adjective--Saudi Arabianor Saudi.Population (1992 est.):  16.9 million (12.3 millionSaudis, 4.6 million foreign nationals).Annual growth rate:  3.8%.Ethnic groups:  Arab (90% of native pop.), Afro-Asian(10% of native pop.).Religion:  Muslim.Language:  Arabic (official).Education:  Literacy--male 73%, female 48%.Health:  Infant mortality rate--38/1,000.  Lifeexpectancy--male 65 years, female 68 years.Work force:  5 million (60%-75% foreign workers).Government--34%.  Industry--28%.  Service and commerce--22%.  Agriculture--16%.GovernmentType:  Monarchy with Council of Ministers andConsultative Council.Unification:  September 23, 1932.Constitution:  None.Branches:  Executive--king (chief of state and head ofgovernment).  Legislative--none; a Consultative Councilwith advisory powers was formed September 1993.Judicial--Islamic Courts of First Instance and Appeals.Administrative divisions:  13 provinces.Political parties:  None.Flag:  Green and white, bears the Muslim creed in Arabicscript:  "There is no God but God; Muhammad is theMessenger of God."  Under the script is a horizontalwhite sword.EconomyGDP (1992):  $121 billion.Annual growth rate (1992):  5% overall; non-oil share 5%.Per capita GDP:  $7,200.Natural resources:  Hydrocarbons, gold, uranium, bauxite,coal, iron, phosphate, tungsten, zinc, silver, copper.Agriculture (est. 9% of GDP):  Products--dates, grains,livestock, vegetables.  Cultivated land--1%.Industry (est. oil, 38% of GDP; non-oil, 62%):petroleum, petrochemicals, cement, fertilizer, lightindustry.Trade (1992):  Exports--$47 billion:  $43 billion,petroleum and petroleum products; $4 billion, non-oilexports.  Imports--$30 billion:  manufactured goods,transportation equipment, construction materials,processed food products.  Major trading partners--U.S.,Japan, Western Europe.Official exchange rate:  3.75 Saudi riyals (SR)=U.S. $1.PEOPLESaudi Arabia's 1992 population is estimated to be about16.9 million, including about 4.6 million residentforeigners.  Until the 1960s, most of the population wasnomadic or semi-nomadic; due to rapid economic and urbangrowth, more than 95% of the population now is settled.Some cities and oases have densities of more than 1,000people per square kilometer (2,600 per sq. mile).Saudi Arabia is known as the birthplace of Islam, whichin the century following Muhammad's death in 632 spreadto much of the Mediterranean world.  Islam obliges allMuslims to make the Hajj, or pilgrimage to Makkah, atleast once during their lifetime if they are able to doso.  The cultural environment in Saudi Arabia is highlyconservative; the country adheres to a strictinterpretation of Islamic religious law (Shari'a).Cultural presentations must conform to narrowly definedstandards of ethics.  Men and women are not permitted toattend public events together and are segregated in thework place.Most Saudis are ethnically Arab.  Some are of mixedethnic origin and are descended from Turks, Iranians,Indonesians, Indians, and Africans, most of whomimmigrated as pilgrims and reside in the Hijaz regionalong the Red Sea coast.  Many Arabs from nearbycountries are employed in the kingdom.  There also aresignificant numbers of expatriate workers from NorthAmerica, South Asia, Europe, and East Asia.HISTORYExcept for a few major cities and oases, the harshclimate historically prevented much settlement of theArabian Peninsula.  People of various cultures have livedthere over a span of more than 5,000 years.  The Dilmunculture, along the Gulf coast, was contemporaneous withthe Sumerians and ancient Egyptians, and most of theempires of the ancient world traded with the states ofthe peninsula.The Saudi state began in central Arabia in about 1750.  Alocal ruler, Muhammad bin Saud, joined forces with anIslamic reformer, Muhammad Abd Al-Wahhab, to create a newpolitical entity.  Over the next 150 years, the fortunesof the Saud family rose and fell several times as Saudirulers contended with Egypt, the Ottoman Turks, and otherArabian families for control on the peninsula.  Themodern Saudi state was founded by the late King Abd Al-Aziz Al-Saud (known internationally as Ibn Saud).  In1902, Abd Al-Aziz recaptured Riyadh, the Al-Sauddynasty's ancestral capital, from the rival Al-Rashidfamily.  Continuing his conquests, Abd Al-Aziz subduedAl-Hasa, the rest of Nejd, and the Hijaz between 1913 and1926.  In 1932, these regions were unified as the Kingdomof Saudi Arabia.Boundaries with Jordan, Iraq, and Kuwait were establishedby a series of treaties negotiated in the 1920s, with two"neutral zones"--one with Iraq and the other with Kuwait--created.  The Saudi-Kuwaiti neutral zone wasadministratively partitioned in 1971, with each statecontinuing to share the petroleum resources of the formerzone equally.  Tentative agreement on the partition ofthe Saudi-Iraqi neutral zone was reached in 1981, andpartition was finalized by 1983.  The country's southernboundary with Yemen was partially defined by the 1934Treaty of Taif, which ended a brief border war betweenthe two states.  It remains undefined in many areas.  Theborder between Saudi Arabia and the United Arab Emirateswas agreed upon in 1974.  Boundary differences with Qatarremained unresolved.King Abd Al-Aziz died in 1953 and was succeeded by hiseldest son, Saud, who reigned for 11 years.  In 1964,Saud abdicated in favor of his half-brother, Faisal, whohad served as Foreign Minister.  Because of fiscaldifficulties, King Saud had been persuaded in 1958 todelegate direct conduct of Saudi Government affairs toFaisal as Prime Minister; Saud briefly regained controlof the government in 1960-62.  In October 1962, Faisaloutlined a broad reform program, stressing economicdevelopment.  Proclaimed King in 1964 by senior royalfamily members and religious leaders, Faisal alsocontinued to serve as Prime Minister.  This practice hasbeen followed by subsequent kings.The mid-1960s saw external pressures generated by Saudi-Egyptian differences over Yemen.  When civil war brokeout in 1962 between Yemeni royalists and republicans,Egyptian forces entered Yemen to support the newrepublican government, while Saudi Arabia backed theroyalists.  Tensions subsided only after 1967, when Egyptwithdrew its troops from Yemen.Saudi forces did not participate in the Six-Day (Arab-Israeli) war of June 1967, but the government laterprovided annual subsidies to Egypt, Jordan, and Syria tosupport their economies.  During the 1973 Arab-Israeliwar, Saudi Arabia participated in the Arab oil boycott ofthe United States and Netherlands.  A member of theOrganization of Petroleum Exporting Countries (OPEC),Saudi Arabia had joined other member countries inmoderate oil price increases beginning in 1971.  Afterthe 1973 war, the price of oil rose substantially,dramatically increasing Saudi wealth and politicalinfluence.In 1975, King Faisal was assassinated by a nephew, whowas executed after an extensive investigation concludedthat he acted alone.  Faisal was succeeded by his half-brother Khalid as King and Prime Minister; their half-brother Prince Fahd was named Crown Prince and FirstDeputy Prime Minister.  King Khalid empowered CrownPrince Fahd to oversee many aspects of the government'sinternational and domestic affairs.  Economic developmentcontinued rapidly under King Khalid, and the kingdomassumed a more influential role in regional politics andinternational economic and financial matters.In June 1982, King Khalid died, and Fahd became King andPrime Minister in a smooth transition.  Another half-brother, Prince Abdullah, Commander of the Saudi NationalGuard, was named Crown Prince and First Deputy PrimeMinister.  King Fahd's brother, Prince Sultan, theMinister of Defense and Aviation, became Second DeputyPrime Minister.Under King Fahd, the Saudi economy adjusted to sharplylower oil revenues resulting from declining global oilprices.  Saudi Arabia supported neutral shipping in theGulf during periods of the Iran-Iraq war and aided Iraq'swar-strained economy.  King Fahd played a major part inbringing about the August 1988 cease-fire and inorganizing and strengthening the Gulf Cooperation Council(GCC), a group of six Arabian Gulf states dedicated tofostering regional economic cooperation and peacefuldevelopment.In 1990-91, King Fahd played a key role before and duringthe Gulf war.  It was his early, formal request toPresident Bush for military assistance on August 6, 1990,that allowed U.S. troops to deploy in time to avertpossible moves by Iraq's Saddam Hussein into SaudiArabia.  King Fahd's action also consolidated thecoalition of forces against Iraq and helped define thetone of the operation as a multilateral effort toreestablish the sovereignty and territorial integrity ofKuwait.  Acting as a rallying point and personalspokesman for the coalition, King Fahd helped bringtogether his nation's GCC allies, Western allies, andArab allies, as well as non-aligned nations from Africaand the emerging democracies of Eastern Europe.  He usedhis influence as Custodian of the Two Holy Mosques topersuade other Arab and Islamic nations to join thecoalition.GOVERNMENT AND POLITICAL CONDITIONSThe central institution of Saudi Arabian Government isthe monarchy.  No formal constitution exists; there areno political parties or national elections.  Theauthority of the monarchy is based on Islamic law(Shari'a).  The king's powers are limited because he mustobserve the Shari'a and other Saudi traditions.  He alsomust retain a consensus of the Saudi royal family,religious leaders (ulema), and other important elementsin Saudi society.  The leading members of the royalfamily choose the king from among themselves with thesubsequent approval of the ulema.Saudi kings gradually have developed a centralgovernment.  Since 1953, the Council of Ministers,appointed by and responsible to the king, has advised onthe formulation of general policy and directed theactivities of the growing bureaucracy.  This councilconsists of a prime minister, the first and second deputyprime ministers, 20 ministers (of whom the minister ofdefense is also the second deputy prime minister), twoministers of state, and a small number of advisers andheads of major autonomous organizations.Legislation is by resolution of the Council of Ministers,ratified by royal decree, and must be compatible with theShari'a.  Justice is administered according to theShari'a by a system of religious courts whose judges areappointed by the king on the recommendation of theSupreme Judicial Council, composed of 12 senior jurists.The independence of the judiciary is protected by law.The king acts as the highest court of appeal and has thepower to pardon.  Access to high officials (usually at amajlis, or public audience) and the right to petitionthem directly are well-established traditions.The kingdom is divided into 13 provinces governed byprinces or close relatives of the royal family.  Allgovernors are appointed by the king.In March 1992, King Fahd issued several decrees outliningthe basic statutes of government and codifying for thefirst time procedures concerning the royal succession.The King's political reform program also provided for theestablishment of a national Consultative Council, withappointed members having advisory powers to review andgive advice on issues of public interest.  It alsooutlined a framework for councils at the provincial oremirate level.In September 1993, King Fahd issued additional reformdecrees, appointing the members of the nationalConsultative Council and spelling out procedures for thenew council's operations.  He announced reforms regardingthe Council of Ministers, including term limitations offour years and regulations to prohibit conflict ofinterest for ministers and other high-level officials.The members of 13 provincial councils and the councils'operating regulations also were announced in September1993.Principal Government OfficialsKing, Prime Minister, Custodian of the Two Holy Mosques--King Fahd bin Abd Al-Aziz Al-SaudMinister of Foreign Affairs--Prince Saud Al Faysal binAbd Al-Aziz Al-SaudAmbassador to the U.S.--Prince Bandar bin SultanThe Saudi Arabia embassy is at 601 New Hampshire AvenueNW, Washington, DC 20037; tel. [phone].ECONOMYOil was discovered in Saudi Arabia by American geologistsin the 1930s, although large-scale production did notbegin until after World War II.  Oil wealth has madepossible rapid economic development, which began inearnest in the 1960s and accelerated spectacularly in the1970s, transforming the kingdom.Saudi oil reserves are the largest in the world, andSaudi Arabia is the world's leading oil producer andexporter.  Oil accounts for more than 90% of thecountry's exports and nearly 75% of government revenues.Proven reserves are estimated at more than 260 billionbarrels--about one-quarter of world oil reserves.More than 95% of all Saudi oil is produced on behalf ofthe Saudi Government by the parastatal giant, SaudiARAMCO.  In June 1993, Saudi ARAMCO absorbed the statemarketing and refining company (SAMAREC), becoming theworld's largest fully integrated oil company.  Operatingin the former neutral zone, the Japanese-owned ArabianOil Company (AOC) and the Saudi subsidiary of Texaco,Saudi Arabian Texaco, provide the rest of Saudi crude oilproduction.  Most Saudi oil exports move by tanker fromterminals at Ras Tanura and Ju'Aymah.  The remaining oilexports are transported via the east-west pipeline acrossthe kingdom to the Red Sea port of Yanbu.Due to a sharp rise in petroleum revenues in 1974following the 1973 Arab-Israeli war, Saudi Arabia becameone of the fastest-growing nations in the world.  Itenjoyed a substantial surplus in its overall trade withother countries; imports increased rapidly; and amplegovernment revenues were available for development,defense, and aid to other Arab and Islamic countries.But higher oil prices led to development of more oilfields around the world and reduced global consumption.The result, beginning in the mid-1980s, was a worldwideoil glut, which introduced an element of planninguncertainty for the first time in a decade.  Saudi oilproduction, which had increased to almost 10 millionbarrels per day (b/d) during 1980-81, dropped to about 2million b/d in 1985.  Budgetary deficits developed, andthe government drew down its foreign assets.  Respondingto financial pressures, Saudi Arabia gave up its role asthe "swing producer" within OPEC in the summer of 1985and accepted a production quota.  Since then, Saudi oilpolicy has been guided by a desire to maintain market andquota shares.Through five-year development plans, the government hassought to allocate its petroleum income to transform itsrelatively undeveloped, oil-based economy into that of amodern industrial state while maintaining the kingdom'straditional Islamic values and customs.  Althougheconomic planners have not achieved all their goals, theeconomy has progressed rapidly, and the standard ofliving of most Saudis has improved significantly.Dependence on petroleum revenue continues, but industryand agriculture now account for a larger share ofeconomic activity.  A shortage of skilled Saudi workersat all levels remains the principal obstacle to economicdiversification and development; about 3.5 mil-lion non-Saudis are employed in the economy.Saudi Arabia's first two development plans, covering the1970s, emphasized infrastructure.  The results wereimpressive:  The total length of paved highways tripled;power generation increased by a multiple of 28; and thecapacity of the seaports grew tenfold.  For the thirdplan (1980-85), the emphasis changed.  Spending oninfrastructure declined, but it rose markedly oneducation, health, and social services.  The share fordiversifying and expanding productive sectors of theeconomy (primarily industry) did not rise as planned; butthe two industrial cities of Jubail and Yanbu--builtaround the use of the country's oil and gas to producesteel, petrochemicals, fertilizer, and refined oilproducts--were largely completed.In the fourth plan (1985-90), the country's basicinfrastructure was viewed as largely complete, buteducation and training remained areas of concern.Private enterprise was encouraged, and foreign investmentin the form of joint ventures with Saudi public andprivate companies was welcomed.  The private sectorbecame more important, rising to 70% of non-oil GDP by1987.  While still concentrated in trade and commerce,private investment increased in industry, agriculture,banking, and construction companies.  These privateinvestments were supported by generous governmentfinancing and incentive programs.  The objective was forthe private sector to have 70%-80% ownership in mostjoint venture enterprises.The fifth plan (1990-95) emphasizes consolidation of thecountry's defenses; improved and more efficientgovernment social services; regional development; and,most importantly, creating greater private-sectoremployment opportunities for Saudis by reducing thenumber of foreign workers.The sixth five-year plan will focus on lowering the costof government services without cutting them and will seekto expand educational training programs.  The plan callsfor reducing the kingdom's dependence on the petroleumsector by diversifying economic activity, particularly inthe private sector, with special emphasis on industry andagriculture.FOREIGN RELATIONSSaudi foreign policy objectives are to maintain itssecurity and its paramount position on the ArabianPeninsula, defend general Arab interests, promotesolidarity among Islamic governments, and maintaincooperative relations with other oil-producing and majoroil-consuming countries.  Saudi Arabia joined in theIslamic world's condemnation of the Soviet invasion ofAfghanistan.  Saudi trade and diplomatic relations withthe countries of Eastern Europe, the former Soviet Union,and the People's Republic of China are growing at acautious rate.Saudi Arabia signed the UN Charter in 1945.  The countryplays a prominent and constructive role in theInternational Monetary Fund, the World Bank, and Arab andIslamic financial and development assistanceinstitutions.  It is one of the largest aid donors in theworld and gives aid to numerous Arab, African, and Asiancountries.  Jeddah is the headquarters of the Secretariatof the Organization of the Islamic Conference and itssubsidiary organization, the Islamic Development Bank,founded in 1969.Membership in the 13-member OPEC and in the technicallyand economically oriented Arab producer group--theOrganization of Arab Petroleum Exporting Countries--facilitates coordination of Saudi oil policies with otheroil-exporting governments.  As the world's leadingexporter of petroleum, Saudi Arabia has a specialinterest in preserving a stable and long-term market forits vast oil resources by allying itself with healthyWestern economies which can protect the value of Saudifinancial assets.  It generally has acted to stabilizethe world oil market and tried to moderate sharp pricemovements.The Saudis frequently help mediate regional crises andactively support the Israeli-Palestinian peacenegotiations.  A charter member of the Arab League, SaudiArabia supports the Arab position that Israel mustwithdraw from the territories which it occupied in June1967, including East Jerusalem.  Saudi Arabia supports apeaceful resolution of the Arab-Israeli conflict butrejected the Camp David accords, claiming that they wouldbe unable to achieve a comprehensive political solutionthat would ensure Palestinian rights and adequatelyaddress the status of Jerusalem.  Although Saudi Arabiabroke diplomatic relations with and suspended aid toEgypt in the wake of Camp David, the two countriesrenewed formal ties in 1987.In 1990-91, King Fahd and Saudi Arabia played animportant role in the Gulf war, developing new allies andimproving existing relationships between Saudi Arabia andsome other countries.  However, there also werediplomatic and financial costs.  Relations between SaudiArabia and Tunisia, Algeria, and Libya deteriorated.Each country had remained silent following Iraq'sinvasion of Kuwait but called for an end to violence oncethe deployment of coalition troops began.  Relationsbetween these countries and Saudi Arabia are slowlyreturning to pre-war status.Saudi Arabia's relations with those countries whichexpressed support for Saddam Hussein's invasion ofKuwait--Yemen, Jordan, and Sudan--were severely strainedduring and immediately after the war.  For example,several hundred thousand Yemenis were expelled from SaudiArabia after the Government of Yemen announced itsposition, thus exacerbating an existing border dispute.Saudi-Yemeni relations, especially in the wake of the1994 Yemen civil war, remain fragile and of significantconcern to the Saudi Government.  The PalestineLiberation Organization's support for Saddam cost itfinancial aid as well as good relations with Saudi Arabiaand other Gulf states.  Recently, though, there have beenthe beginnings of a rapprochement between Saudi Arabiaand the Palestinians, with the Saudi Government providingassistance for Palestinian Authority start-up costs.During and after the Gulf war, the Government of SaudiArabia provided water, food, shelter, and fuel forcoalition forces in the region.  There also were monetarypayments to some coalition partners.  Saudi Arabia'scombined costs in payments, forgone revenues, and donatedsupplies were $55 billion.  More than $15 billion wenttoward reimbursing the United States alone.U.S.- SAUDI ARABIAN RELATIONSSaudi Arabia's unique role in the Arab and Islamic worldsand its strategic location make its friendship importantto the United States.  Diplomatic relations wereestablished in 1933; the U.S. embassy opened in Jeddah in1944 and moved to Riyadh in 1984.The United States and Saudi Arabia share a common concernabout regional security, oil exports and imports, andsustainable development.  Close consultations between theU.S. and Saudi Arabia have developed on international,economic, and development issues such as the Middle Eastpeace process and shared interests in the Gulf.  Thecontinued availability of reliable sources of oil,particularly from Saudi Arabia, remains important to theprosperity of the United States as well as to Europe andJapan.  Saudi Arabia is the leading source of importedoil for the United States, providing more than 20% oftotal U.S. crude imports and 10% of U.S. consumption.Since 1933, the Saudi Arabian Government has relied onthe U.S. Government and private organizations fortechnical expertise and assistance in developing itshuman and mineral resources.  The two countriesestablished a Joint Commission on Economic Cooperation inJune 1974.  Under com-mission auspices, cooperationbetween the two countries has grown in technical trainingand education, agriculture, science and technology,transportation, government administration,industrialization, and solar energy research.In addition to economic ties, a long-standing securityrelationship continues to be important in U.S.-Saudirelations.  A U.S. military training mission establishedat Dhahran in 1953 provides training and support in theuse of weapons and other security-related services to theSaudi armed forces.  Recently, the United States has soldSaudi Arabia military aircraft (F-15s, AWACS, F-16s, andUH-60 Blackhawks), air defense weaponry (Patriot and Hawkmissiles), armored vehicles (M1A2 Abrams and M-2Bradleys), and other equipment.  The compatibility ofequipment has helped U.S. operations in the Gulf.  TheU.S. Corps of Engineers has had a long-term role inmilitary and civilian construction activities in thekingdom.The Gulf war demonstrated U.S.-Saudi relations, withinstances of direct cooperation during the conflict inthe areas of cultural accommodation, command structure,and combat.  For example, the United States respectedSaudi Arabia's Islamic culture by issuing general ordersprohibiting the consumption of alcohol and settingguidelines for off-duty behavior and attire.  SaudiArabia accommodated U.S. culture and its militaryprocedures by allowing  U.S. servicewomen to serve intheir varied roles through-out the kingdom--a large stepfor a patriarchal society.Human RightsDespite close cooperation on security issues, the UnitedStates remains concerned about human rights conditions inSaudi Arabia.  Principal human rights problems includeabuse of prisoners and incommunicado detention;prohibitions or severe restrictions on the freedoms ofspeech and press, peaceful assembly and association, andreligion; denial of the right of citizens to change theirgovernment; systematic discrimination against women andethnic and religious minorities; and suppression ofworkers' rights.Principal U.S. OfficialsAmbassador--Raymond E. MabusDeputy Chief of Mission--C. David WelchCounselor for Consular Affairs--Gretchen G. WelchCounselor for Economic Affairs--Frank S. ParkerCounselor for Political Affairs--Kenneth R. McKuneCounselor for Political-Military Affairs--Richard A.Smith, Jr.Counselor for Public Affairs--C. Edward BernierConsul General, Dhahran--David WinnConsul General, Jeddah--Charles L. DarisThe U.S. embassy in Saudi Arabia is located in theDiplomatic Quarter of Riyadh (tel. [phone]).  TheConsulate General in Jeddah is located on Palestine Road,Ruwais, Jeddah (tel. [phone]); and the ConsulateGeneral in Dhahran is located between ARAMCO Headquartersand the Dhahran International Airport  (tel. [phone]).  The embassy and consulates are open for businessSaturday through Wednesday, in accordance with theofficial workweek of Saudi Arabia.TRAVEL NOTESCustoms:  Saudi Arabia forbids the importation, sale, oruse of alcohol or illicit drugs.  The government has andwill continue to apply the death penalty to anyoneconvicted of possession of drugs with intent todistribute.  In this conservative Muslim society,visitors must not import into Saudi Arabia any non-Muslimreligious materials, pork products, or any material thatmay be construed as pornographic by Saudi censors.Cholera shots are required for entry for travelersarriving from areas where cholera is epidemic.  All visaapplicants must have a letter of invitation from anemployer or Saudi sponsor.Climate and clothing:  Lightweight clothing is essentialfor the hot (38oC-54oC) climate.  However, during thewinter months in the interior regions (such as inRiyadh), the weather can be quite cool, so warmerclothing is recommended.  Riyadh is dry, while Jeddah andDhahran are humid most of the year.  Western men andwomen should dress very conservatively.  For women,skirts should be mid-calf length, sleeves elbow length,and necklines very modest; pants and pantsuits mayattract unwanted attention.Health:  First-class hotels are available in all themajor cities.  Eat and drink cautiously outside majorhotels and restaurants.  Hospital and emergency care andservices in major cities approach U.S. standards.Telecommunications:  Telephone and telegraph service isexpanding rapidly, and direct domestic and overseasdialing is available at most locations within thecountry.  Riyadh is eight time zones ahead of easternstandard time.  There are several daily English-languagenewspapers, as well as an English-language televisionstation.Transportation:  Many domestic and international flightsare scheduled daily; taxis and rental cars are availablein all major cities.  Saudi Arabia has an impressive andrapidly expanding network of paved roads, includingsuper-highways, connecting the country's regions andmajor cities.  Women are forbidden to drive, and womentraveling alone normally are unable to rent a hotel room.Published by the United States Department of State  --Bureau of Public Affairs  --  Office of  PublicCommunication  --  Washington, DC  --  August 1994  --Managing Editor:  Peter A. Knecht  --  Editor:  PeterFreemanDepartment of State Publication 7835  --   BackgroundNotes Series For sale by the Superintendent of Documents,U.S. Government Printing Office, Washington, DC  20402.</text>
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        <text>US DEPARTMENT OF STATE BACKGROUND NOTES:  SAO TOME AND PRINCIPEAugust 1991Official Name:  Democratic Republic of Sao Tome and PrincipePROFILEGeographyArea:  963 sq. km. (372 sq. mi.); one-third the size of RhodeIsland.  Cities:  Capital--Sao Tome.  Other cities--Trindade,Santana, Porto Alegre, Santo Antonio. Terrain:  Two small, volcanicislands. Climate:  Tropical, with wet and dry seasons.PeopleNationality:  Noun and adjective--Sao Tomean(s).  Population(1991):  123,500.  Annual growth rate: 1.8%.  Ethnic groups:  MixedAfrican, Portuguese-African.   Religion:  Christian 80%.  Language:Portuguese.  Education: Years compul-sory--to secondary level.Literacy--about 51%.  Health:  Infant mortality rate(1990)--62/1,000.  Life expectancy--65 yrs. Work force  (1990,35,000):  Agriculture--70%.  Industry, commerce, services--13%.Government--12%.GovernmentType:  Republic.  Independence:  July 12, 1975.  Constitution:November 5, 1975; revised September 1990, following a nationalreferendum.Branches:  Executive--president and prime minister.Legislative--National Assembly.  Judicial--Supreme Tribunal.Administrative subdivisions:  7 counties, 6 on Sao Tome, 1 onPrincipe.Political parties:  Movement for the Liberation of Sao Tome andPrincipe/Social Democratic Party (MLSTP/PSD); DemocraticConvergence Party/Group of Reflection (PCD/GR); ChristianDemocratic Front (PDC); Democratic Coalition (CODO).Suffrage: Universal adult.Central government budget (1990):  $9.2 million. Currentdeficit--$807,000.National holiday:  July 12.Flag:  Green, yellow, and green horizontal bands, two black starsin the yellow band, red triangle on the staff side.EconomyGDP (1990):  $53 million.  Annual growth rate:  3.8%.  Per capitaincome (1990):  $434.  Annual inflation rate: 40%, 1990;36%, 1989; 40%, 1988; 25%, 1987.Natural resources: Agricultural products, fish.Agriculture (25% of GDP): Products--cocoa, copra, palm kernels,bananas. Cultivated land--35,741 hectares.Industry (10% of GNP): Types--light construction, shirts, soap,beer, fisheries, shrimp processing.Trade (1990 est.): Exports--$2.4 million:  cocoa, copra, palmkernels, coffee. Major markets--Netherlands, Germany, China.Imports--$4.5 million: foodstuffs, petroleum products. Majorsuppliers--Portugal, Netherlands, Angola (fuel), Japan.Official exchange rate (July 1991):  192.0 dobras=US$1.Membership in International Organizations     UN, Organization of African Unity (OAU), European Community(associate member under the Lome Convention), Economic Community ofCentral African States (CEEAC).PEOPLE     Of Sao Tome and Principe's total population, about 116,500live on Sao Tome and 7,000 on Principe. All are descended fromgroups that have migrated to the islands since 1485.  Six groupsare identifiable:     --  Mestico, or mixed-blood, descendants of African slavesbrought to the islands during the early years of settlement fromBenin, Gabon, Congo, and Angola (these people also are known asfilhos da terra or "sons of the land");     -- Angolares, reputedly descendants of Angolan slaves whosurvived a 1540 shipwreck and now earn their livelihood fishing;     --  Forros, descendants of freed slaves;     --  Servicais, contract laborers from Angola, Mozambique, andCape Verde, living temporarily on the islands;     --  Tongas, children of servicais born on the islands; and     --  Europeans, primarily Portuguese.     In the 1970s, there were two significant populationmovements--an exodus of most of the 4,000 Portuguese residents andan influx of several hundred Sao Tomean refugees from Angola.     The islanders have been absorbed largely into a commonPortuguese-African culture. Almost all belong to the RomanCatholic, Evangelical Protestant, or Seventh-day AdventistChurches, which retain close ties with churches in Portugal.HISTORY     These uninhibited islands were first discovered by Portuguesenavigators between 1469 and 1472. The first successful settlementof Sao Tome was established in 1493 by Avaro Caminha, who receivedthe land as a grant from the Portuguese crown. Principe was settledin 1500 under a similar arrangement. By the mid-1500s, with thehelp of slave labor, the Portuguese settlers had turned the islandsinto Africa's foremost exporter of sugar. Sao Tome and Principewere taken over and administered by the Portuguese crown in 1522and 1573, respectively.     Sugar cultivation declined over the next 100 years, and by themid-1600s, Sao Tome was little more than a port of call forbunkering ships. In the early 1800s, two new cash crops, coffee andcocoa, were introduced. The rich volcanic soils proved well  suitedto them, and extensive plantations (rocas), owned by Portuguesecompanies or absentee landlords, soon occupied most of the goodfarmland. By 1908, Sao Tome had become the world's largest producerof cocoa, still the country's most important crop.     The rocas system, which gave the plantation managers a highdegree of authority, led to abuses against the African farmworkers. Although Portugal officially abolished slavery in 1876,the practice of forced paid labor continued. In the early 1900s, aninternational  press controversy arose over charges that Angolancontract workers were being subjected to forced labor andunsatisfactory working conditions. Sporadic labor unrest anddissatisfaction continued well into the 20th century, culminatingin an outbreak of riots in 1953 in which several hundred Africanlaborers were killed.  This "Batepa Massacre" remains a major eventin the colonial history of the islands, and its anniversary isofficially observed by the government.     By the late 1950s, when other emerging nations across theAfrican Continent were demanding independence, a small group of SaoTomeans had formed the Movement for the Liberation of Sao Tome andPrincipe (MLSTP), which eventually established its base in nearbyGabon. Picking up momentum in the 1960s, events moved quickly afterthe overthrow of the Caetano dictatorship in Portugal in April1974. The new Portuguese regime was  committed to the dissolutionof its overseas colonies.  In 1974, Portuguese representatives metwith the MLSTP in Algiers and worked out an agreement for thetransfer of sovereignty. After a period of transition, Sao Tome andPrincipe achieved independence on July 12, 1975, choosing as itsfirst president the MLSTP Secretary General Manuel Pinto da Costa.     Da Costa was re-elected unopposed in 1985 to a third 5-yearterm.  He declined to run in Sao Tome's first multi-partypresidential election, held in March 1991, and was succeeded onApril 3, 1991, by Miguel Trovoada, an MLSTP founder who had beenexiled after challenging Da Costa's leadership of the party.GOVERNMENT     Under the new constitution passed by the National Assembly inApril 1990, which was approved in an August public referendum andpromulgated in September, Sao Tome and Principe held multi-partyelections for the first time since independence.  Shortly after theconstitution took effect, the Popular Assembly formally legalizedopposition parties and permitted independent candidates toparticipate in the January 1991 legislative elections.  The PopularAssembly is the supreme organ of the state and the highestlegislative body.  It is elected for a 4-year period and meetssemiannually.     The president of the republic is elected to a 5-year term byuniversal suffrage and secret ballot.  Under the revisedconstitution, the president is now elected by direct vote and islimited to two terms.     Justice is administered at the highest level by the SupremeTribunal, formerly responsible to the Popular Assembly.  Thejudiciary is now independent under the new constitution.Principal Government OfficialsPresident--Miguel TrovoadaPrime Minister--Daniel Lima Dos Santos DaioMinister Foreign Affairs--Alda Bandeira Tavares Vaz Da ConceicaoAmbassador to the United States and the United Nations--JoaquimRafael Branco     The Sao Tome and Principe Mission to the United States, whichalso is the Sao Tomean Embassy to the United Nations, is located at801 Second Avenue, Suite 1504, NY, NY  10017 (tel. [phone])POLITICAL CONDITIONS     The MLSTP was the sole political party and predominant forcein Sao Tomean politics from independence until 1991.A new constitution, as announced in 1989 by President Da Costa, wasadopted by the Popular Assembly in April 1990 approved in an Augustnationwide referendum, and promulgated in September of that year.     In preparation for the elections, opposition parties werelegalized, and independent candidates were authorized to seekseats.  Several oppositoin candidates, including Miguel Trovoada,who became the country's new president, returned to Sao Tome andPrincipe from exile to participate.  In January 1991, Sao Tomebecame the second Lusophone African country (only weeks after CapeVerde) to hold multi-party legislative elections;  2 months later,it completed the transition by electing a new president.ECONOMY     Since the 1800s, the Sao Tome and Principe economy has beenbased on plantation agriculture.  At the time of independence,Portuguese-owned plantations occupied 90% of the cultivated land.After independence, control of these plantations passed to variousstate-owned agricultural enterprises. The dominant crop on Sao Tomeis cocoa, representing about 90% of exports.  Other export cropsinclude copra, palm kernels, and coffee.  Domestic food-cropproduction is inadequate to meet local consumption, and the countryimports some of its food.  Efforts have been made by the governmentin recent years to expand food production, and several projectshave been undertaken, largely financed by foreign donors.     Other than agriculture, the main economic activities arefishing and a small industrial sector engaged in processing localagricultural products and producing a few basic consumer goods.The scenic islands have potential for tourism, and the governmentis attempting to improve its rudimentary tourist industryinfrastructure.  The government sector accounts for about 20% ofboth employment and gross domestic product.  Since independence,the country has had a centrally directed economy with most means ofproduction owned and controlled by the state.  The new constitutionguarantees a "mixed economy," with privately owned cooperativescombined with publicly owned property and means of production.     In recent years, the economy of Sao Tome has encountered majordifficulties:  economic growth has stagnated, and cocoa exportshave dropped in both value and volume, leaving largebalance-of-payments deficits.  The situation stems from acombination of external and internal factors, including thesignificantly lower world price for cocoa and productioninefficiencies on the plantations.     In response to its economic downturn, the government announcedits intention to carry out far-reaching economic reforms.  In 1987,the government implemented  an International Monetary Fundstructural adjustment program, to which the new governmentcontinues to adhere.  It has invited greater private participationin management of parastatals, as well as in the agricultural,commercial, banking, and tourism sectors, and is increasing effortsto attract foreign investment to Sao Tome and Principe.     The Sao Tomean Government has traditionally obtained foreignassistance from various donors.  The UN Development Program, theWorld Bank, the European Community, and the African DevelopmentBank finance projects on the islands.  Both communist and Westerngovernments have provided bilateral technical assistance in thepast.     Portugal remains one of Sao Tome's major trading partners,particularly as a source of imports.  Food, manufactured articles,and machinery and transportation equipment are imported from theEuropean Economic Community. The Netherlands and Germany representthe largest markets for the country's exports.FOREIGN RELATIONS     Until independence, Sao Tome and Principe had few ties abroadexcept those that passed through Portugal.  Following independence,the new government sought to expand its diplomatic relationships.A common language, tradition, and colonial experience have led toclose collaboration between Sao Tome and other ex-Portuguesecolonies in Africa, particularly Angola.  Sao Tomean relations withother countries in the region, such as the Congo and Gabon, alsoare good.     Sao Tome and Principe has diplomatic relations with Westerncountries, including the US, Portugal, France, and Germany, andwith communist countries, such as the Soviet Union and Cuba.  Thelatter have been active in providing technical advisers in SaoTome, especially Cuba, which has advisers in the Ministries ofEducation and Planning.     While the Sao Tomean Government has maintained a foreignpolicy based on nonalignment and cooperation with any countrywilling to assist in its economic development, it has recentlybegun to emphasize ties to the United States and Western Europe.US-SAO TOMEAN RELATIONS     The United States was among the first to accredit anambassador to Sao Tome and Principe.  The US Ambassador, based inGabon, is accredited to Sao Tome on a non-resident basis.  TheAmbassador and embassy staff make regular visits to the islands.The first Sao Tomean Ambassador to the United States, resident inNew York City, was accredited in 1985.  In 1986, Sao TomeanPresident da Costa visited the United States and met with VicePresident Bush.     The United States has funded projects aimed at trainingmanagers on cocoa plantations and has contributed food commoditiesthrough the UN World Food Program. In addition, theUnited States has a program to develop and support farmers'cooperatives.  A small Peace Corps program in health education wasinaugurated in October 1990.  The United States, through the HumanRights Fund, provided communications equipment and an electionexpert to help organize Sao Tome and Principe's 1991 multi-partylegislative and presidential elections.Principal US OfficialsAmbassador--Keith L. WauchopeDeputy Chief of Mission--Stephen G. BrundagePolitical Officer--Alexander AndrewsEconomic/Commercial Officer--Matthew RooneyConsular Officer--Melissa KehoePublic Affairs Officer--Jan Hartman     The US Embassy in Gabon is located on the Boulevard de la Mer,B.P. 4000, Libreville, Gabon (tel: [phone]; fax: [phone]).Travel Notes     Customs:  Obtain visas in advance from a Sao Tomean Embassy.A vaccination certificate against yellow fever is required of allvisitors except those arriving from a non-infected area and whostay for less than 2 weeks. Health requirements change; checklatest information.     Climate and clothing: Lightweight, washable clothing isrecommended year round.  At higher altitudes in the interior,evenings can be cool enough for sweaters.     Health: Tapwater is not potable; boil drinking water.  Avoidraw vegetables and undercooked meats.  Take malaria pills starting3 weeks before arrival.  The islands have adequate hospitalfacilities for common ailments.     Telecommunications: Telephone and telegraph link the islandswith Europe and, more recently, with the African mainland at Gabon,although in the latter case connections are often difficult. Aradio network also connects the Sao Tomean government with itsrepresentative in Libreville. Sao Tome is four standard time zonesahead of eastern standard time.     Transportation:  Regular air service from Libreville islimited to four weekly flights by Equatorial Airlines.  Charteraircraft also are available. The Angolan national airline, TAAG,has two flights weekly from Luanda. Taxi service is available.  ThePortuguese national airline, TAP, has one flight monthly fromLisbon. There are two flights a week from Sao Tome to Principe, butmost transportation between the islands is by boat.     National holidays: Businesses may be closed on the followingofficial holidays Martyrs' Day,   February 4;Independence/National Day, July 12; Armed Forces Day,  First weekin September (varies); Farmers' Day, September 30.     For information on economic trends, commercial development,production, trade regulations, and tariff rates, contact theInternational Trade Administration, US Department of Commerce,Washington, DC, 20230 or any Commerce Department district office.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: ST. VINCENT & THE GRENADINESPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  St. Vincent and the GrenadinesPROFILEGeographyArea:  340 sq. km. (130 sq. mi.); slightly less than twice the size of Washington, DC.  The Grenadines include 32 islands, the largest of which are Bequia, Mustique, Canouan, and Union.  Some of the smaller islands are privately owned.Cities:  Capital--Kingstown (pop. 29,600).Terrain:  Volcanic and mountainous; the mountains are almost impenetrable, with the highest peak, Soufriere, rising to 1,219 meters (4,000 ft.).Climate:  Tropical.PeopleNationality:  Noun and adjective--Vincentian.Population:  114,000.Annual growth rate:  1.4%.Ethnic groups:  African descent (66%), mixed (19%), East Indian (6%), Carib Indian (2%).Religions:  Anglican (47%), Methodist (28%), Roman Catholic (13%), other Protestant denominations, Seventh Day Adventist, Hindu.Language:  English (official); some French patois spoken.Education:  Literacy--96%.  Compulsory--up to age 15.Health (1991):  Infant mortality rate--31/1,000.  Life expectancy--women 72 yrs., men 68 yrs.Work force:  About 40,000.  Agriculture--60%.GovernmentType:  Parliamentary democracy; independent sovereign state within the Commonwealth.Independence:  October 27, 1979.Constitution:  October 27, 1979.Branches:  Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), cabinet.  Legislative--unicameral legislature with 15-member elected House of Assembly and six-member appointed Senate.  Judicial--District courts, St. Vincent and the Grenadines Supreme Court (High Court and Court of Appeals), privy council.Subdivisions:  6 parishes.Political parties:  New Democratic Party (incumbent; holds 12 of 15 seats in parliament), St. Vincent Labor Party, Movement for National Unity.Suffrage:  Universal at 18.EconomyGDP (1992):  $200 million.Per capita GDP:  $1,730.Natural resources:  Timber, beaches.Industry:  Plastic products, detergents.Trade:  Exports--(bananas, eddoes and dasheen, arrowroot starch):  $75 million.  Major markets--U.K. 54%, CARICOM 34%, U.S. 10%.  Imports--(foodstuffs, machinery and equipment, chemicals and fertilizers):  $128 million.  Major suppliers--U.S. 36%, CARICOM 21%, U.K. 18%, Japan 3%.Official exchange rate:  St. Vincent and the Grenadines uses the Eastern Caribbean (EC) dollar, which is tied to the U.S. dollar at the rate of EC $2.70=U.S. $1.   PEOPLEMost Vincentians are the descendants of African slaves brought to the island to work on plantations.  There are also a few white descendants of English colonists, as well as some East Indians, Carib Indians, and a sizable minority of mixed race.  The country's official language is English, but a French patois may be heard on some of the Grenadine islands.  St. Vincent has a high rate of emigration.  With extremely high unemployment and under-employment, population growth remains a major problem.HISTORYCarib Indians aggressively prevented European settlement on St. Vincent until the 18th century, although African slaves--whether shipwrecked or escaped from St. Lucia and Grenada and seeking refuge in St. Vincent--intermarried with the Caribs and became known as "black Caribs."  Eventual tensions between the Caribs and the black Caribs led to a civil war in 1700.The French settled on the island in 1719 and lived peaceably with the Caribs, growing coffee, tobacco, indigo, cotton, and sugar on plantations worked by slaves.  Shortly afterward, the British tried to seize control of the island.  Possession was hotly disputed until 1763, when the island was ceded to Britain.  It was lost to the French again in 1779 but regained by the British under the Treaty of Versailles in 1783.Battles known as the Carib Wars continued between the British and the black Caribs until the British subdued the black Caribs in 1796.  That year, General Abercrombie crushed a revolt fomented by the French radical Victor Hugues.  Over 5,000 black Caribs were eventually deported to Roatan, an island off the coast of Honduras.Slavery was abolished in 1834, and the resulting labor shortages on the plantations attracted Portuguese immigrants in the 1840s and East Indians in the 1860s.  Conditions remained harsh for the former slaves and for the immigrant agricultural workers, as depressed world sugar prices kept the economy stagnant until the turn of the century.From 1763 until independence, St. Vincent passed through various stages of colonial status under the British.  A representative assembly was authorized in 1776, crown colony government installed in 1877, a legislative council created in  1925, and universal adult suffrage granted in 1951.During this period, the British made several unsuccessful attempts to affiliate St. Vincent with other Windward Islands in order to govern the region through a unified administration.  The most notable was the West Indies Federation, which collapsed in 1962.  St. Vincent was granted associate statehood status in 1969, giving it complete control over its internal affairs.  Following a referendum in 1979, St. Vincent and the Grenadines became the last of the Windward Islands to gain independence.Natural disasters have plagued the country throughout the 20th century.  In 1902, La Soufriere volcano erupted, killing 2,000 people, just two days before the Mt. Pelee eruption killed 30,000 on Martinique.  Much farmland was damaged and the economy deteriorated.  In April 1979, La Soufriere erupted again.  Though no one was killed, thousands had to be evacuated, and there was extensive agricultural damage.  In 1980, a hurricane devastated the banana and coconut plantations.  In 1987, Hurricane Emily destroyed as much as 70% of the banana crop.GOVERNMENTSt. Vincent and the Grenadines is a parliamentary democracy within the British Commonwealth.  Queen Elizabeth II is head of state and is represented on the island by a governor general, an office with mostly ceremonial functions.  Control of the government rests with the prime minister and the cabinet.The parliament is a unicameral body with a 15-member elected House of Assembly and a six-member appointed Senate.  The governor general appoints senators, four on the advice of the prime minister and two on the advice of the leader of the opposition.  The parliamentary term of office is five years, although the prime minister may call elections at any time.As in other English-speaking Caribbean countries, the judiciary in St. Vincent is rooted in British common law.  There are 11 courts in three magisterial districts.  The Eastern Caribbean Supreme Court, comprising a high court and a court of appeals, is known as the St. Vincent and the Grenadines Supreme Court in St. Vincent.  The court of last resort is the Judicial Committee of Her Majesty's Privy Council.There is no local government in St. Vincent, and all 6 parishes are administered by the central government.Principal Government OfficialsHead of State--Queen Elizabeth IIGovernor General--Sir David JackPrime Minister--James F. MitchellMinister of Foreign Affairs and Tourism--Alpian AllenAmbassador to the U.S. and the OAS--Kingsley C. A. LayneAmbassador to the UN--Herbert George YoungSt. Vincent and the Grenadines maintains an embassy at 3216 New Mexico Ave., NW, Washington, DC 20016 (tel. [phone]).  St. Vincent's ambassador to the U.S. also is accredited to the OAS.  St. Vincent also has a consul resident in New York.POLITICAL CONDITIONSThe People's Political Party (PPP), founded in 1952 by Ebenezer Joshua, was the first major political party in St. Vincent.  The PPP had its roots in the labor movement and was in the forefront of national policy prior to independence, winning elections from 1957 through 1966.  With the development of a more conservative black middle class, however, the party began to steadily lose support, until it collapsed after a rout in the 1979 elections.  The following year, Joshua resigned from the leadership, and the party dissolved itself in 1984.Founded in 1955, the St. Vincent Labor Party (SVLP), under R. Milton Cato, gained the support of the middle class.  With a conservative law-and-order message and a pro-Western foreign policy, it had gained enough strength by the mid-1960s to become the most powerful political force for the next 20 years.  Following victories in the 1967 and 1974 elections, the SVLP led the island to independence, winning the first post-independence election in  1979.  Expecting an easy victory for the SVLP in 1984, Cato called early elections.  The results were surprising:  with a record 89% voter turnout, James F. Mitchell's New Democratic Party (NDP) won nine seats in the House of Assembly.  Since the 1984 election, politics in St. Vincent have been dominated by  the NDP.  With a reputation for sound fiscal management and bolstered by a resurgent economy in the mid-1980s, Mitchell led his party to an unprecedented sweep of all 15 House of Assembly seats in the 1989 elections.  The opposition emerged from the election weakened and fragmented but was able to win three seats during February 1994 elections under a "Unity" coalition.ECONOMYThe economy expanded at a healthy pace in late 1980s, with growth averaging about 7%, principally due to strong performances by the manufacturing and construction sectors and favorable banana prices.  The country has been able to maintain access to foreign capital, both multilateral and bilateral aid, and credit.  The government wants economic diversification and infrastructure improvement.  The St. Vincent economy is heavily dependent on agriculture.  Bananas alone account for 60% of the work force and 20% of GDP.  Despite its good performance of late, such reliance on a single crop makes the economy vulnerable to external factors.  More than 60% of foreign exchange earnings are from banana exports; possible loss of this protected market with the establishment of a single European market--which had been planned for 1992--poses a serious challenge to the Vincentian economy.  Indeed, banana exports have fallen sharply in the last two years due to a combination of lower prices and drought.Since 1984, an agricultural diversification program and modest land reforms have helped strengthen the agricultural sector.  St. Vincent now exports a number of agricultural commodities--including arrowroots, coconuts, sweet potatoes, tannias, and eddoes, primarily to Caribbean Community and Common Market (CARICOM) countries.  St. Vincent used to be the world's largest producer and exporter of arrowroot, a crop used in the manufacture of baby food and computer paper.  But increased competition has reduced production by more than 80% from its peak in 1984.The tourism sector remains small, but it is robust and is assuming greater importance.  There were 157,532 visitors in 1990, an increase of 23% over the previous year, with cruise ship visitors up 58% and stayover visitors up 8%.  The tourist appeal of the country lies in the privacy and the unspoiled and diverse beauty of the Grenadine islands.  Fine sailing waters amid these islands attract affluent visitors.  Efforts are underway to broaden this appeal, although development of tourism is limited by airports that only handle small aircraft.The government has sought to attract investment with liberal tax and currency exchange regulations, revision of the tax code to promote savings, and reduction of the fiscal deficit through government expenditure control.  The government has funded the wide-ranging Development Corporation to locate foreign investors for joint ventures in manufacturing and agriculture.  St. Vincent's maritime laws have resulted in a lucrative ship registry business.St. Vincent and the Grenadines are beneficiaries of the U.S. Caribbean Basin Initiative.  The country belongs to the 13-member CARICOM, which has signed a framework agreement with the United States to promote trade and investment in the region.FOREIGN RELATIONSSt. Vincent's foreign relations were administered by the U.K. until independence in 1979.  It maintains close ties to the U.S., Canada, and the U.K. and cooperates with regional political and economic organizations such as the Organization of Eastern Caribbean States (OECS) and CARICOM.As a member of CARICOM, St. Vincent and the Grenadines strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.U.S.-ST. VINCENT RELATIONSThe United States and St. Vincent have good bilateral relations.  The U.S. supports the government's economic policies.  The U.S. Agency for International Development (USAID) contributes to the island in such areas as agricultural diversification, small business development and infrastructure improvement.  Most of this assistance will end when the regional USAID office in Barbados closes in FY 1996.  The Peace Corps has about 20 volunteers in St. Vincent working primarily in education and health.  The U.S. also actively supports the efforts of the St. Vincent Government to control drug cultivation and trans-shipment on the island.Principal U.S. Embassy OfficialsAmbassador--Jeanette W. HydeDeputy Chief of Mission--Tain P. TompkinsPolitical/Economic Counselor--Thomas R. HutsonConsul General--Dale ShafferRegional Labor Attache--Peggy ZabriskieEconomic-Commercial Officer--Carole JacksonPublic Affairs Officer--Tyrone KempUSAID Regional Director--Mosina JordanPeace Corps Director--James Scanlon (resident in St. Lucia)The United States maintains no official presence in St. Vincent.  The ambassador and embassy officers are resident in Barbados and frequently travel to St. Vincent.The U.S. embassy in Barbados is located in the Canadian Imperial Bank of Commerce Building, Broad Street, Bridgetown (tel:  [phone]; fax:  [phone]).  (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: SAINT LUCIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Saint LuciaPROFILEGeographyArea:  619 sq. km. (238 sq. mi.).Cities:  Capital--Castries (1992 pop. 53,883).  Other cities--Micoud, Gros-Islet, Vieux Fort, Soufriere.Terrain:  Mountainous.Climate:  Tropical.PeopleNationality:  Noun and adjective--St. Lucian(s).Population (1992):  138,150.Annual growth rate (1992):  1.6%.Ethnic groups:  African descent 90%, mixed 6%, East Indian 3%, Caucasian 0.8%.Religions:  Roman Catholic 90%, Church of England 3%, remainder Protestant sects.Languages:  English (official); a French patois is common throughout the country.Education:  Years compulsory--ages 5-15.  Attendance--more than 80% urban, 75% rural.  Literacy--82%.Health (1992):  Infant mortality rate--20/1,000.  Life expectancy--males 69 yrs., females 74 yrs.Work force (58,000):  Agriculture--37%.  Industry and commerce--20%.  Services--18%. GovernmentType:  Parliamentary democracy; independent sovereign statewithin the Commonwealth.Independence:  February 22, 1979.Constitution:  1979.Branches:  Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), cabinet.  Legislative--bicameral parliament.  Judicial--district courts, Eastern Caribbean Supreme Court (high court and court of appeals), Privy Council.Administrative subdivisions:  16 parishes.Political parties:  United Workers Party (ruling), St. Lucia Labor Party (official opposition--designated by the number of representatives in parliament), Progressive Labor Party (opposition).Suffrage:  Universal at 18.Economy (1992)GDP:  $476 million.Annual growth rate:  6.5%.Per capita GDP:  $3,500.Natural resources:  Forests, beaches, minerals (pumice), mineral springs.Agriculture (13% of GDP):  Products--bananas, cocoa, coconut, citrus fruits, livestock.Manufacturing (14% of GDP, including construction):  Types--garments, electronic components, beverages, corrugated boxes.Tourism:  9% of GDP.Mining:  1.3% of GDP.Trade:  Exports--$126 million:  bananas, other agricultural products, oils and fats, manufactured goods.  Partners--U.K., U.S., CARICOM countries, Italy.  Imports--$311 million:  food, fuel, manufactured goods, machinery and transport equipment.  Partners--U.S., CARICOM countries, U.K., Japan.Official exchange rate:  Eastern Caribbean $2.70=U.S. $1.  PEOPLESt. Lucia's population is primarily African and mixed African-European, with small Caucasian and East Indian minorities.  English is the official language, although many St. Lucians speak a French patois.  Between 85% and 90% of the people are Roman Catholic, a further reflection of early French influence on the island.  The population of just over 138,000 is evenly divided between urban and rural areas, although the capital, Castries, contains over one-third of the population.  Despite a high emigration rate, the population is growing rapidly, about 1.6% per year.HISTORYSt. Lucia's first known inhabitants were Arawaks, believed to have come from northern South America to settle around 200-400 AD.  Numerous archaeological sites on the island have produced specimens of the Arawaks' well-developed pottery.  Caribs gradually replaced Arawaks during the period 800-1000.Europeans first landed on the island in either 1492 or 1502, during one of the New World voyages of navigator and cartographer Juan de las Casas, who explored the Windward Islands south to the South American mainland.  The Dutch, English, and French all tried to establish trading outposts on St. Lucia in the 17th century but faced opposition from hostile Caribs.  The English, with their headquarters in Barbados, and the French, centered on Martinique, found St. Lucia even more attractive when the sugar industry developed in 1765.  British influence gradually spread.  English commercial law was introduced in 1827 and criminal procedures in 1833, and in 1838, the French language was officially abolished.  In that year, St. Lucia was incorporated into the British Windward Islands administration, headquartered in Barbados.  This lasted until 1885, when the capital was moved to Grenada.St. Lucia's 20th century history has been marked by increasing self-government.  A 1924 constitution gave the island its first form of representative government, with a minority of elected members provided for the previously all-nominated legislative council.  Universal adult suffrage was introduced in 1951, and elected members became a majority of the legislative council.  Ministerial government was introduced in 1956, and in 1958, St. Lucia joined the short-lived West Indies Federation, a semi-autonomous dependency of the United Kingdom.  When that collapsed in 1962, following Jamaica's withdrawal, a smaller federation was briefly attempted.  After the second failure, the United Kingdom and the six Windward and Leeward Islands--Grenada, St. Vincent, Dominica, Antigua, St. Kitts-Nevis-Anguilla, and St. Lucia--developed a novel form of cooperation called associated statehood.As an associated state of the United Kingdom from 1967 to 1979, St. Lucia had full responsibility for internal self-government but left its external affairs and defense responsibilities to the United Kingdom.  This interim arrangement ended on February 22, 1979, when St. Lucia achieved full independence.  Ties to the U.K. remain, as the nation recognizes Queen Elizabeth II as titular head of state and is an active member of the Commonwealth.  The island continues to cooperate with its neighbors through the Caribbean Community and Common Market (CARICOM), the East Caribbean Common Market (ECCM), and the Organization of Eastern Caribbean States (OECS).GOVERNMENTSt. Lucia is a parliamentary democracy modeled on the Westminster system.  The head of state is Queen Elizabeth II, represented by the governor general.  The governor general exercises basically ceremonial functions, but residual powers under the constitution can be used at the governor general's discretion.  The actual power in St. Lucia lies with the prime minister and the cabinet, usually representing the majority party in parliament.The bicameral parliament consists of a 17-member House of Assembly elected by universal adult suffrage for five-year terms and an 11-member Senate appointed by the governor general (of whom six are on the recommendation of the leader of the opposition and two entirely at the governor general's discretion).  The parliament may be dissolved by the governor general at any point during its five-year term, either at the request of the prime minister--in order to take the nation into early elections--or at the governor general's own discretion--if the House passes a vote of no confidence in the government.St. Lucia has an independent judiciary composed of district courts and a high court.  Cases may be appealed to the Eastern Caribbean Court of Appeals and, ultimately, to Elizabeth II's Privy Council.The island is divided into 10 administrative divisions, including the capital, Castries.  Popularly elected local governments in most towns and villages perform such tasks as regulation of sanitation and markets and maintenance of cemeteries and secondary roads.St. Lucia has no army but maintains a special defense unit within its police force and is training a coast guard.Principal Government OfficialsHead of State--Queen Elizabeth IIGovernor General--Sir Stanislaus JamesPrime Minister--John G.M. ComptonMinister of Foreign Affairs--William George MalletAmbassador to the UN--vacantAmbassador to the U.S. and the OAS--Joseph Edsel EdwardsSt. Lucia maintains an embassy at 3216 New Mexico Ave., NW, Washington, DC 20016 (tel. [phone]).POLITICAL CONDITIONSPolitics in St. Lucia is dominated by John Compton and his United Workers Party (UWP), which has governed the country for all but three years since independence.  Compton was Premier of St. Lucia from 1964 until independence in February 1979 and remained Prime Minister until elections later that year.The  St. Lucia Labor Party (SLP) won the first post-independence elections in July 1979, taking 12 of 17 seats in parliament.  A period of turbulence ensued, in which squabbling within the party led to several changes of prime minister.  Pressure from the private sector and the unions forced the government to resign in 1982.  New elections were then called and were won resoundingly by Compton's UWP, which took 14 of 17 seats.The UWP was elected for a second time on  April 16, 1987, but with only nine of 17 seats.  Seeking to increase his slim margin, Prime Minister Compton suspended parliament and called new elections on April 30.  This unprecedented snap election, however, gave Compton the same results as before--the UWP retained nine seats and the SLP eight.  In April 1992, Prime Minister Compton's government again defeated the SLP, led by businessman Julian Hunte.  In this election, the government increased its majority in parliament to 11 seats.The UWP has a reputation for being the more conservative of the two major political parties, but they are similar ideologically.  While past campaigns have been marked by occasional acrimony and violence, the elections themselves are generally considered to be free and fair.ECONOMYThe economy has evolved from its historic reliance on sugar.  It has diversified somewhat, including in the  agriculture, industry, and tourism sectors.Agriculture now is dominated by banana cultivation.  There are a large number of small and medium-sized agricultural enterprises.  This sector has been largely responsible for the extensive socio-economic changes that have taken place in St. Lucia since the 1960s.  Its effects are felt in a number of areas, particularly transport, distribution, and construction.More than 60% of foreign exchange earnings are from banana exports to the United Kingdom; possible loss of this protected market under the establishment of a single European market--which had been planned for 1992--has posed a serious challenge to St. Lucia's economy.  An attempt is being made to expand agriculture by encouraging the establishment of tree crops such as mangos and avocados; a variety of vegetables are produced for local consumption.Manufacturing, a small but robust sector, has been encouraged by generous regulatory and tax relief, waiver of import duties, provision of factory shells, and other government incentives.  A relatively ambitious diversification program has stimulated production of paper, metal products, textiles, beer, furniture, chemicals, and electronic components.  Local manufacturers export mainly to the CARICOM countries, but a number of U.S.-based firms have plants that export back to the United States.Improvements in roads, communications, and port facilities have created a more suitable investment climate for manufacturing as well as tourism and agriculture.  Foreign investors have also been lured by an educated and skilled work force and relatively stable political conditions.  The largest investment is a petroleum storage and transshipment terminal built by Hess Oil.  A Caribbean Development Bank (CDB)-funded airport expansion project has been completed.  A new deepwater harbor has been drawing transshipment trade away from Barbados.  A major manufacturing "free zone" has been established in Vieux Fort in the south.The tourism sector has made significant gains, experiencing a boom during the last few years despite some unfavorable external factors.  Visitors--both stayover as well as cruise ship passengers to the island--totaled almost 350,000 in 1992, up from about 310,000 the year before.  Not only has St. Lucia benefited from an expansion of the Caribbean tourist market as a whole, it has also been able to attract tourists away from alternative Caribbean destinations.  St. Lucia has beautiful beaches and spectacular mountain scenery.The development of the tourism sector has been greatly helped by the government's commitment to providing a favorable investment environment.  Incentives are available for building and upgrading tourism facilities, there has been liberal use of public funds to improve the physical infrastructure of the island, and the government has made efforts to attract cultural and sporting events and develop historical sites.  The Tourism Board hopes to maintain momentum in the industry through coordinating businesses' approach to the market, emphasizing quality of service, and undertaking a publicity campaign to promote hospitality, support for the tourist industry, and public awareness of the importance of tourism to St. Lucia's economy.  St. Lucia is a beneficiary of the U.S. Caribbean Basin Initiative.  It is also a member of the 13-member CARICOM, which has signed a framework agreement with the United States to promote trade and investment in the region.FOREIGN RELATIONSThe major thrust of foreign affairs for St. Lucia is economic development.  The government is seeking balanced international relations with emphasis on mutual economic cooperation and trade and investment.  It seeks to conduct its foreign policy chiefly through its membership in the OECS.  St. Lucia participated in the 1983 Grenada mission, sending members of its special services unit into active duty.St. Lucia is a member of the Commonwealth, the Organization of American States, and the United Nations.  It seeks pragmatic solutions to major international issues.  While maintaining good relations with its traditional friends--the United States, the United Kingdom, Canada, and many others--it also maintains diplomatic relations with Third World countries.  St. Lucia has relations with both North and South Korea and with Cuba and has been active in Eastern Caribbean regional affairs through the OECS and CARICOM.As a member of CARICOM, St. Lucia strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.Only four diplomatic missions exist in St. Lucia--those of Taiwan, France, and Venezuela and an office of the Barbados-based British High Commission.  Some countries with which St. Lucia has diplomatic relations have representatives resident in Barbados, Jamaica, Trinidad, or Guyana.St. Lucia has no major outstanding disputes with other nations.  It claims an exclusive economic zone for a distance of 320 kilometers (200 mi.) from its coasts.U.S.-ST. LUCIAN RELATIONSThe United States and St. Lucia enjoy excellent bilateral relations.  The United States supports the St. Lucian Government's efforts to expand its economic base and improve the lives of its citizens.U.S. assistance is usually channeled through multilateral organizations such as the Caribbean Development Bank, the Caribbean Agricultural Research and Development Institute, and the Organization of Eastern Caribbean States.  In recent years, the U.S. Government has worked through those agencies and bilaterally to assist:--  The Eastern Caribbean Investment Promotion Service (ECIPS);--  A project to diversify the agricultural sector called TROPRO;--  A project to rationalize the East Caribbean Drug Service;--  A health care management and planning project;--  An environmental coastal resources project (ENCORE); and--  A small enterprise assistance project (SEAP).The Peace Corps has 25-30 volunteers in the country, working primarily in education, agriculture, and health.U.S. security assistance programs provide limited military training to the special services unit and coast guard.  Principal U.S. Embassy OfficialsAmbassador--Jeanette W. HydeDeputy Chief of Mission--Tain P. TompkinsPolitical/Economic Counselor--Thomas R. HutsonConsul General--Dale ShafferRegional Labor Attache--Peggy ZabriskieEconomic-Commercial Officer--Carole JacksonPublic Affairs Officer--Tyrone KempUSAID Regional Director--Mosina JordanPeace Corps Director--James Scanlon (resident in St. Lucia)The United States maintains no official presence in St. Lucia.  The ambassador and embassy officers are resident in Barbados and frequently travel to St. Lucia.The U.S. embassy in Barbados is located in the Canadian Imperial Bank of Commerce Building, Broad Street, Bridgetown (tel:  [phone]; fax:  [phone]).   (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: ST. KITTS AND NEVISPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Federation of St. Kitts and NevisPROFILEGeographyArea:  St. Kitts 168 sq. km. (65 sq. mi.); Nevis 93 sq. km. (36 sq. mi.).Cities:  Capital--Basseterre (pop. about 15,000).Terrain:  Generally mountainous; highest elevations are 1,156 m. (3,792 ft.) at Mt. Liamuiga on St. Kitts and 985 m. (3,232 ft.) at Nevis Peak on Nevis.PeopleNationality:  Noun and adjective--Kittitian(s), Nevisian(s).Population (est.):  40,400 (St. Kitts 31,100; Nevis 9,300).Annual growth rate (1993 est.):  0.6%.Ethnic groups:  Almost entirely of African origin; some of British, Portuguese, and Lebanese origin.Religions:  Principally Anglican, with evangelical Protestant and Roman Catholic minorities.Languages:  English (official).Education (1991):  Years compulsory--9.  Literacy--98%.Health (1990):  Infant mortality rate--22/1,000.  Unemployment--12%.GovernmentType:  Constitutional monarchy with Westminster-style parliament.Constitution:  1983.Independence:  September 19, 1983.Branches:  Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), cabinet.  Legislative--an 11-member Senate appointed by the governor general (mainly on the advice of the prime minister and the leader of the opposition) and an 11-member popularly elected House of Representatives.  Judicial--Court of Appeal.Administrative subdivisions:  14 parishes.Political parties:  People's Action Movement (ruling), St. Kitts Labor Party, Nevis Reformation Party, Concerned Citizens Movement.Suffrage:  Universal at 18.EconomyGDP (1991):  $142 million.Annual growth rate (1991):  6.8%.Per capita GDP (1991):  $3,500.Natural resources:  Negligible.Agriculture:  Products--sugarcane, cotton, peanuts, vegetables.Industry (1990):  Types--manufacturing 14%, transport and communications 15%, construction 13%, hotels and restaurants 8%.Trade (1991):  Exports--$126 million.  Major markets--CARICOM, U.S., U.K.  Imports--$115 million.Official exchange rate:  Eastern Caribbean $2.70=U.S. $1.  nHISTORYThe islands of St. Kitts and Nevis were originally inhabited by Carib Indians.  Christopher Columbus landed on St. Kitts in 1493 on his second voyage and named it after his patron saint, St. Christopher.  Columbus also discovered Nevis on his second voyage, reportedly calling it Nevis because of its resemblance to a snowcapped mountain (in Spanish, "Nuestra Senora de las Nieves" or "Our Lady of the Snows").  European colonization of the islands did not begin for some time.In 1624, Sir Thomas Warner led the first English party to St. Christopher island; "Kitt" was an English nickname for "Christopher," hence it became known as "St. Kitt's" island.  From there, English colonists spread to other islands in the region.The same year, the French also colonized part of the island.  St. Kitts was held jointly by the English and French from 1628-1713, and intermittent warfare between French and British settlers during the 17th century ravaged its economy.  The island was ceded to Great Britain by the Treaty of Utrecht in 1713.  St. Kitts was taken by the French and held from 1782-83.In 1628, Warner sent Capt. Anthony Hilton to colonize Nevis.  Hilton became the first governor of Nevis, setting it on a path to prosperity for the next 150 years.  Its relative opulence in the 17th century gave it the name "Queen of the Caribbees."  Nevis was taken by the French in 1782.The Treaty of Paris in 1783 definitively awarded both islands to Britain.  They were part of the colony of the Leeward Islands from 1871-1956 and of the West Indies Federation from 1958-62.  In 1967, together with Anguilla, they became a self-governing state in association with Great Britain; Anguilla ceded later that year.  The Federation of St. Kitts and Nevis attained full independence on September 19, 1983.GOVERNMENT AND POLITICAL CONDITIONSAs head of the Commonwealth, Queen Elizabeth II is represented in St. Kitts and Nevis by a governor general, who acts on the advice of the prime minister and the cabinet.  The prime minister is the leader of the majority party of the House, and the cabinet conducts affairs of state.  St. Kitts and Nevis has a bicameral legislature:  an 11-member Senate appointed by the governor general (mainly on the advice of the prime minister and the leader of the opposition); and an 11-member popularly elected House of Representatives which has eight St. Kitts seats and three Nevis seats.  The prime minister and the cabinet are responsible to the parliament.Under the constitution, Nevis has considerable autonomy and has an island assembly, a premier, and a deputy governor general.  Under certain specified conditions, it may secede from the federation.St. Kitts and Nevis has enjoyed a long history of free and fair elections.  The most recent elections were held in November 1993.  The two major parties--the ruling People's Action Movement, or PAM, and the St. Kitts Labor Party--each won four seats, and both claimed victory.  A constitutional quarrel--including some demonstrations that turned violent--ensued through December.  Finally, the PAM, under Prime Minister Kennedy Simmonds, garnered the support of the Premier of Nevis (one parliamentary seat) and now holds a 5-4-2 majority.  Subsequent political grumblings have continued, but overall the tone is quiet.Constitutional safeguards include freedom of speech, press, worship, movement, and association.  Like its neighbors in the English-speaking Caribbean, St. Kitts and Nevis has an excellent human rights record.  Its judicial system is modeled on British practice and procedure and its jurisprudence on English Common Law.  The Royal St. Kitts Police Force has about 340 members.Principal Government OfficialsChief of State--Queen Elizabeth IIGovernor General--Sir Clement ArrindellPrime Minister and Minister of Foreign Affairs, Home Affairs, and Finance--Kennedy A. SimmondsAmbassador to the U.S.--Irvin R. Sweeney (charge d'affaires)Ambassador to the OAS and the UN--William V. Herbert (resident in Basseterre)Principal Nevis Island Government OfficialPremier--Vance AmoryThe embassy of St. Kitts and Nevis is located at 3216 New Mexico Ave., NW, Washington, DC 20016 (tel. [phone]).ECONOMYUntil recently, St. Kitts and Nevis was the last sugar monoculture in the Eastern Caribbean.  Faced with continuing reductions in the U.S. sugar quota, the Government of St. Kitts and Nevis embarked on a successful program to diversify the agricultural sector and stimulate the development of other sectors of the economy.  In addition to encouraging the planting of alternate crops, the government has found new uses for its sugarcane, such as gelled ethanol for cooking and a new cane liquor.The government has instituted a program of investment incentives for businesses considering locating in St. Kitts or Nevis, encouraging both domestic and foreign private investment.  Government policies provide liberal tax holidays, duty-free import of equipment and materials, and subsidies for training provided to local personnel.  The formation of the Investment Promotion Agency in 1987 has greatly assisted this effort; light manufacturing has expanded, particularly in electronics.Tourism has shown the greatest growth.  In 1987, tourism surpassed sugar as the major foreign exchange earner for St. Kitts and Nevis.  Completion of the U.S. Agency for International Development (USAID)-funded Southeast Peninsula Road project opened a whole new area of St. Kitts for hotel construction.  Many of the island's most beautiful beaches are found in this area.  St. Kitts and Nevis are beneficiaries of the U.S. Caribbean Basin Initiative and also belong to the 13-member Caribbean Community and Common Market (CARICOM), which has signed a framework agreement with the United States to promote trade and investment in the region.FOREIGN RELATIONSSt. Kitts and Nevis maintains diplomatic relations with the United States, Canada, the United Kingdom, China, and South Korea, as well as with many Latin American countries and neighboring Eastern Caribbean states.  It is a member of the Commonwealth; the United Nations and several of its specialized and related agencies; the World Bank and the International Monetary Fund; the Organization of American States; the Organization of Eastern Caribbean States; the Caribbean Regional Security System; and CARICOM.As a member of CARICOM, St. Kitts and Nevis strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.U.S.-ST. KITTS AND NEVIS RELATIONSSince St. Kitts and Nevis attained full independence in 1983, U.S. relations have been very friendly.  The U.S. embassy in Bridgetown, Barbados, conducts bilateral relations with St. Kitts and Nevis.The United States seeks to help St. Kitts and Nevis develop economically and to help strengthen its moderate, democratic, parliamentary form of government.  St. Kitts and Nevis are strategically placed in the Leeward Islands, near maritime transport lanes of major importance to the United States.  St. Kitts and Nevis benefit from a number of USAID projects, including scholarship and training programs and small business assistance, although these programs will diminish in 1996, when the regional USAID office in Barbados closes.Principal U.S. Embassy OfficialsAmbassador-designate--Jeanette W. HydeDeputy Chief of Mission--Tain P. TompkinsPolitical/Economic Counselor--Thomas R. HutsonConsul General--Dale ShafferRegional Labor Attache--Peggy ZabriskieEconomic-Commercial Officer--Carole JacksonPublic Affairs Officer--Tyrone KempUSAID Regional Director--Mosina JordanPeace Corps Director--James Scanlon (resident in St. Lucia)The United States maintains no official presence in St. Kitts and Nevis.  The ambassador and embassy officers are resident in Barbados and frequently travel to St. Kitts and Nevis.The U.S. embassy in Barbados is located in the Canadian Imperial Bank of Commerce Building, Broad Street, Bridgetown (tel:  [phone]; fax:  [phone]).  (###)</text>
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        <text>U.S. Department of StateBackground Notes:  Russia, October 1995Bureau of Public AffairsOctober 1995Official Name:   Russian FederationMilitary IssuesAs noted, Russia signed the NATO Partnership for Peace initiative inJune 1994; the U.S. looks forward to Russia's active participation inPartnership for Peace.  The U.S. and Russia signed a memorandum ofunderstanding on defense cooperation in September 1993 whichinstitutionalized and expanded relations between defense ministries,including establishing a broad range of military-to-military contacts.The U.S. and Russia carried out a joint peacekeeping training exercisein Totskoye, Russia, in September 1994.  Based on the January 14, 1994,agreement between Presidents Clinton and Yeltsin, the two nationsstopped targeting their strategic nuclear missiles at each other as ofMay 30, 1994.Agreements/Cooperation.  U.S. and Russian security cooperationemphasizes strategic stability, nuclear safety, dismantling nuclearweapons, preventing proliferation of weapons of mass destruction andtheir delivery systems, and enhancing military-to-military contacts.  Atthe Lisbon summit in 1992, the United States signed a protocol to theSTART I Treaty with Russia, Belarus, Kazakhstan, and Ukraine--where thestrategic nuclear weapons of the former Soviet Union were located--making the four countries party to the treaty and committing allsignatories to reductions in strategic nuclear weapons within the seven-year period provided by the treaty.  The treaty entered into forceDecember 5, 1994.On January 3, 1993, the U.S. and Russia signed the Treaty between theUnited States of America and the Russian Federation on FurtherReduction and Limitation of Strategic Offensive Arms (START II). Thistreaty reduces overall deployments of strategic nuclear weapons on eachside by more than two-thirds from current levels and will eliminate themost destabilizing strategic weapons--heavy intercontinental ballisticmissiles (ICBMs) and all other deployed multiple-warhead ICBMs.  At theSeptember 1994 summit, the two nations agreed to immediately beginremoving nuclear warheads due to be scrapped under START II--instead oftaking the nine years allowed --once START I takes effect and the STARTII Treaty is ratified by both countries.  At their May 1995 summit,Presidents Clinton and Yeltsin agreed on a set of principles that wouldguide further discussion in the field of demarcation between anti-ballistic missile systems and theater missile defenses.  They alsoagreed on steps to increase the transparency and irreversibility ofnuclear arms reduction and committed not to use in nuclear weapons newlyproduced fissile materials or fissile materials removed from nuclearweapons being eliminated and excess to national security requirements.Following ratification by Russia and the other NIS, the ConventionalArmed Forces in Europe Treaty entered into force on November 9, 1992.This treaty establishes comprehensive limits on key categories ofmilitary equipment--tanks, artillery, armored combat vehicles, combataircraft, and combat helicopters--and provides for the destruction ofweaponry in excess of these limits.Cooperative Threat Reduction (CTR).   Often called Nunn-Lugarassistance, this type of assistance is provided to Russia (as well asBelarus, Kazakstan, and Ukraine) to aid in the dismantlement of weaponsof mass destruction and prevent the proliferation of such weapons.  Todate, the U.S. has allocated over $600 million for assistance to Russiaunder this program.  Thirteen implementing agreements have been signed.Key projects have included assistance in the elimination of strategicoffensive arms ($162 million), design and construction of a fissilematerial storage facility ($90 million), provision of fissile materialcontainers ($50 million), material control and accounting and physicalprotection of nuclear materials ($45 million), and development of achemical weapons destruction plan and provision of equipment for a pilotlaboratory for the safe and secure destruction of chemical weapons ($55million).  Under the CTR program, the U.S. is also assisting Russia inthe development of export controls; providing emergency responseequipment and training to enhance Russia's ability to respond toaccidents involving nuclear weapons; providing increased military-to-military contacts; and encouraging the conversion of Russian defensefirms through the formation of joint ventures to produce products,including housing, for the civilian market.  As part of the CTR program,the U.S. has awarded $20 million to a joint venture project involving anAmerican housing firm and three Russian aerospace firms to constructhousing for demobilized military officers.  Portions of the Russiandefense firms will be converted to the production of prefabricatedhousing systems and related products.  In a multilateral effort (theEuropean Union and Japan are also involved), the U.S. has also provided$35 million to establish the International Science and Technology Center(ISTC), which provides alternative peaceful civilian employmentopportunities to scientists and engineers of the former Soviet Unioninvolved with weapons of mass destruction and their delivery systems.Officer Housing Resettlement.  The U.S. has assisted Russia with theconstruction of housing for demobilizing military officers.  In responseto appeals from the Russian and Baltic Governments, the United Statesannounced at the 1993 Vancouver summit the Russian Officer HousingResettlement Program to ease the burden of withdrawing Russian militaryforces from the Baltic nations.  A pilot project for construction of 450housing units for demobilizing officers was begun in summer 1993.  Atthe Tokyo summit of G-7 leaders, President Clinton committed the UnitedStates to finance 5,000 housing units for demobilizing militaryofficers.  Congress appropriated $160 million in FY 1994 for thisproject.  Of the 5,000 houses, 2,500 will be new construction and 2,500will be provided through vouchers for existing houses.  Distribution ofvouchers and assignment of housing began in August 1994 and is expectedto continue through 1996.Principal U.S. Embassy OfficialsAmbassador--Thomas R. PickeringDeputy Chief of Mission--Richard M. MilesCounselor for Political Affairs--William J. BurnsCounselor for Economic Affairs--Michael MozurCounselor for Commercial Affairs--John PetersCounselor for Consular Affairs--Michael MarineCounselor for Agricultural Affairs--Mary ReveltCounselor for Administrative Affairs--Peter S. FlynnCounselor for Public Affairs--Paul R. SmithPrivate Enterprise Officer, U.S. Agency for International Development--James A. NorrisSenior Representative, Federal Aviation Administration (FAA)--Dennis B.CooperDefense Attache--Brig. Gen. John C. Reppert, USAFTreasury Attache--William C. MurdenRegional Security Officer--Robert J. FranksImmigration and Naturalization Service--Irena Kipa-DaigleThe U.S. embassy in Russia is located at Novinskiy Bulvar 19/23, Moscow(tel. [7] [phone]-59; fax: [7] [phone]).Consuls GeneralConsulate General, St. Petersburg (Furshtatskaya Ulitsa 15, tel. [7][phone])--John EvansConsulate General, Vladivostok (Mordovtseva Ulitsa 12, tel. [7] (4232)268-458/554)--Desiree MillikanConsulate General, Yekaterinburg (tel. [7] [phone])--HowardSteersIn Moscow, the U.S. Commercial Office is located at Novinskiy Bulvar 15(tel. [7] [phone]/4660 or 956-4255, fax:  [7] [phone]).In St. Petersburg, the U.S. Commercial Office is located at BolshayaMorskaya Ulitsa 57 (tel. [7] [phone], fax: [7] [phone]).========================================Background Notes Series  --  Published by the United States Departmentof State  --  Bureau of Public Affairs  --  Office of PublicCommunication  --  Washington, DC  --  Series Editor:  Marilyn J.BremnerRussia  --  Department of State Publication 10305  --  October 1995This material is in the public domain and may be reprinted withoutpermission; citation of this source is appreciated.  For sale by theSuperintendent of Documents, U.S. Government Printing Office,Washington, DC  20402.(###)</text>
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        <text>U.S. Department of StateBackground Notes:  Russia, October 1995Bureau of Public AffairsOctober 1995Official Name:   Russian FederationECONOMY (CONTINUED)Income.  Disposable income increased by 10% in 1993.  With the sharprise in consumer purchasing power, Russians spend a lower proportion oftheir income for foodstuffs and essentials.  Consumers make 70% of theirpurchases in the private sector to take advantage of better selection,quality, and service.  Food availability and real per capita income haveimproved or stabilized, but social welfare problems, such as increasedcrime and health care shortages, are serious.  The gap between rich andpoor appears to have widened; about 20% of the population lives belowthe official poverty level.Law.  In 1993, Russia passed a new bankruptcy law prepared with theassistance of the American Bar Association.  But lack of legislation inmost areas of economic activity is a pressing issue.  Taxation andbusiness regulation are unpredictable, and legal enforcement of privatebusiness agreements is almost nonexistent.  Many government decisionsaffecting business have been inconsistent.  An growing crime wave hasswept over Russia and has increased costs for local and foreignbusinesses.Natural Resources.  With the mineral-packed Ural mountains and the vastoil, gas, coal, and timber reserves of Siberia and the Russian Far East,Russia is rich in natural resources. Unfortunately, most are located inremote and climatically unfavorable areas that are difficult to developand are far from Russian ports.  Oil and gas continue to be the mainsources of hard currency.  Russia is a leading producer and exporter ofminerals and gold and all major fuels.  The Russian fishing industry isthe world's fourth-largest-- behind Japan, the U.S., and China.  Russiaaccounts for one-quarter of the world's production of fresh and frozenfish and for about one-third of world output of canned fish.Industry.  Russia is one of the most industrialized of the former Sovietrepublics.  Besides its resource-based industries, it has developedlarge manufacturing capacities, notably in machinery.  Russia inheritedmost of the defense industrial base of the Soviet Union; converting itto civilian use is the major goal of the present government.  The shareof defense-industrial output going to civil purposes reportedlyincreased from 40% in 1988 to 80% in 1993, a result of sharp cut-backsin weapons production.Agriculture.  In 1993, agriculture accounted for about 13% of GDP andabout 13% of total employment.  Russia comprises roughly three-quartersof the territory of the NIS, yet has relatively little fertile soil forits great size since most of its territory is under permafrost andunsuited for agriculture.  Droughts generally afflict Russia every threeyears.  Northern areas concentrate mainly on livestock farming, and thesouthern parts and western Siberia produce grain.  Agriculturalproduction, chiefly grain and potatoes, accounts for more than one-halfof that for the entire NIS.  Radical reform of agriculture comprises oneof the pillars of post-communist transformation in Russia.Investment.  Cumulative foreign investment in Russia is estimated at $5billion to $7 billion, with U.S. investment making up as much as $2billion of the total.  In 1994 alone, total foreign investment was $3billion to $4 billion (this includes both direct and portfolioinvestment).  Although the ruble crisis in October 1994 and otherpolitical and economic disruptions seemed to have a negative effect onportfolio investment, direct investment remained stable.  Major areas ofinterest for U.S. investors have been in energy, food processing,telecommunications, and automobiles.  Joint ventures between Russian andforeign firms account for an increasing share of Russian output andtrade and are concentrated in the services sector.Trade.  By mid-1994, Russia had liberalized domestic trade anddismantled virtually all non-tariff restrictions on foreign trade.State-subsidized imports were phased out in 1994, as was the system ofquotas and licensing for exports except for a few commodities involvinginternational commitments.  To bolster future foreign trade, Russiaapplied in June 1993 to the General Agreement on Tariffs and Trade(GATT)--predecessor to the World Trade Organization (WTO).  Importtariffs rose from zero to an average 7% to 8% in 1993; a tariffaveraging 15% was introduced in July 1994.Russia has been running a trade surplus since 1993, due both toincreased exports (of commodities such as petroleum and aluminum) andlower imports (including grain).  It has increased official foreignexchange reserves from $4.5 billion in January 1994 to about $7 billionas of September 1994.  Capital flight remains a serious problem.Russia's trade is dominated by Europe; Germany and the countries ofCentral and Eastern Europe hold the lead.  Japan and China are Russia'slargest Asian trading partners; the U.S. has overtaken Cuba in tradewith the Americas.  Trade with the other NIS states is overwhelmingly inindustrial products; Ukraine and Kazakhstan are by far the mostimportant trade partners.  Russia continues to supply large amounts ofenergy to the NIS states at a discount, although it has tied governmentcredits to debt repayment.  Eurasian markets are of vital importance--supplies sustain vulnerable Russian industries, and the countries are onRussian transportation lines to hard-currency customers in Europe andbeyond.Debt.  Russia assumed 61% of the Soviet Union's debt in 1991.  Totalforeign debt is more than $80 billion, $45 billion of which is owed tothe Paris Club, $25 billion to the London Club, and the remainder toother countries and suppliers.  The government has rescheduled itsofficial debt payment obligations but has not yet done so with some ofits commercial creditors.  In 1993, the U.S. and other bilateralcreditors rescheduled about $15 billion of Russia's debt servicepayments.  Paris Club creditors agreed to a one-year rescheduling of$7.1 billion of debt service in 1994.  The Russian Government says thatit is owed $140 billion by other countries but acknowledges that much ofwhat was lent by the Soviet Union will never be repaid.  Russia expectsto receive $1.5 billion from its debtors in 1994, primarily in paymentsin kind.Banking.  The Russian commercial banking system has rapidly progressedin the five years of its existence.  The largest banks are approachingWestern standards, offering a full range of services.  Many of the 2,000registered commercial banks are small--only 10% have a capital baseexceeding $1 million--and 300 are authorized to deal with foreigncurrency accounts.  Sixty Russian banks are members of the Society forWorldwide Interbank Financial Telecommunication, and others havecorrespondent relationships with U.S. and other foreign banks that allowfor electronic fund transfers between Russia and other countries.   In1993, Citibank and Chase Manhattan Bank became the first U.S. banks toreceive a general license to open a subsidiary in Russia; there are now12 Western banks with operating licenses.  Currency inconvertibility--which used to be a major concern for Western traders, investors, andtourists--largely  has been overcome by the opening of currencyexchanges and direct interbank trading through Russia.Health.  Russia is experiencing serious public health problems whosecauses are related to the country's social and economic changes and ahealth care system inherited from the Soviet era.  The life expectancyfrom birth has declined, and the leading causes of death arecardiovascular disease, cancer, accidents, and respiratory conditions.With falling immunization coverage, preventable illnesses such asdiphtheria and tuberculosis are on the rise; plans are underway todevelop domestic production of vaccines as well as otherpharmaceuticals.  Environmental conditions for many Russians are also ahealth concern.  These factors, along with underfunding and poor healthcare management, are contributing to the public health problems inRussia.Multilateral Assistance.  Since 1990, the international community hasworked together to provide economic assistance on a scale unparalleledsince the end of World War II.  The United States is the largest sourceof technical assistance.  The International Monetary Fund (IMF), WorldBank, and European Bank for Reconstruction and Development have large-scale lending and investment programs in Russia amounting to billions ofdollars.  The Group of Seven industrialized nations also has committedmore than $12 billion in bilateral financing.  The European Union andindividual donor countries are also providing substantial technicalassistance and financial support for programs in the NIS.Environmental Issues.  The Russian Government inherited seriousenvironmental problems.  Air pollution and inadequate supplies ofuncontaminated water affect the health of the population and contributeto increased infant mortality rates.  Radioactive pollution--generatedby military nuclear testing and unsafe nuclear power plants, institutes,and laboratories--is especially dangerous.  In cooperation with theinternational community, Russia is working to develop soundenvironmental policies.  It has established a Ministry of Environmentand has introduced a pollution-fee system by which taxes are levied onair and water emissions and solid waste disposal, with the resultingrevenues channeled to environmental protection activities.  Russia alsoaims to develop regional cooperation among the NIS on transborderenvironmental problems.========================================Highlights From 1994 of Russian Infrastructure ProjectsInternational Space Station.  Russia and the U.S. engaged in a jointflight program to lead to the development of the inter-national spacestation.  Key elements include:  U.S. astronauts on board the Mir spacestation for approximately two years; up to 10 U.S. shuttle dockingmissions; and $400 million contract for the provision of hardware, jointtechnology, and on-board research support by U.S. firms.Sakhalin Island Development.  The Marathon, McDermott, Mitsui,Mitsubishi, and Shell Sakhalin II consortium planned to develop largeoil and gas fields offshore Sakhalin Island in a $10 billion project.Timan Pechora Exploration.  Texaco was involved in a $2.5 billiongreenfield oil exploration project in the Timan Pechora region of theKomi republic.Civil Aviation.  Russian manufacturers were using Western engines andavionics to bring the Russian civil fleet up to world standards.Civil Shipbuilding and Harbor Modernization.  Russia sought to modernizethe St. Petersburg, Vladivostok, and other ports. Russian shipyardsbuilt oil tankers, fishing trawlers, cargo ships, and pleasure craft.Defense Conversion.  The Russian Government sought to turn Russiandefense firms into the major suppliers of consumer and industrial goods.The defense sector has been producing nearly all of Russia's televisionsand other electronic equipment, plus most washing machines and vacuumcleaners.Telecommunications.  U.S. West was involved in a $40 million upgrade ofRussian telecommunications, involving 50,000 kilometers of fiber andmicrowave lines and 50 digital exchanges in 50 Russian cities.========================================FOREIGN RELATIONSOn December 27, 1991, Russia assumed the seat formerly held by theSoviet Union in the UN Security Council.  Russia also is a member of theOrganization for Security and Cooperation in Europe (OSCE) and the NorthAtlantic Cooperation Council.  It signed the NATO Partnership for Peaceinitiative on June 22, 1994.  On June 24, 1994, Russia and the EuropeanUnion (EU) signed a partnership and cooperation agreement that providesfor, inter alia, political dialogue at all levels; possible talks in1998 on a free-trade area; EU support for eventual Russian accession tothe GATT (now WTO); and EU assistance on improving nuclear safety,restructuring state-run enterprises, and developing economic efficiency.Russia has played a constructive role in mediating internationalconflicts through its cosponsorship of the Middle East peace process andits support of UN and multilateral initiatives in the Persian Gulf,Cambodia, Angola, the former Yugoslavia, and Haiti.  Russia has affirmedits respect for international law and OSCE principles.  It has acceptedUN and/or OSCE involvement in instances of regional conflict on itsperiphery, including the  dispatch of observers to Georgia, Moldova,Tajikistan, and Nagorno-Karabakh.DEFENSESince the breakup of the U.S.S.R., the Russians have discussedrebuilding a viable, cohesive fighting force out of the remaining partsof the former Soviet armed forces.  A new Russian military doctrine,promulgated in November 1993, implicitly acknowledges the contraction ofthe old Soviet military into a regional military power without globalimperial ambitions.  In keeping with its emphasis on the threat ofregional conflicts, the doctrine calls for a Russian military that issmaller, lighter, and more mobile, with a higher degree ofprofessionalism and with greater rapid deployment capability.  Such atransformation has proven difficult.The challenge of this task has been magnified by difficult economicconditions in Russia, which have resulted in reduced defense spending.This has led to training cutbacks and severe shortages of housing andother social amenities for military personnel, with a consequentlowering of morale, cohesion, and fighting effectiveness.  The evidentlypoor combat performance of the Russian armed forces in the Chechenconflict in part reflects these breakdowns.The current actual strength of the Russian armed forces probably fallsbetween 1.4 and 1.6 million, with authorized strength several hundredthousand higher.  Weapons production in Russia has fallen dramaticallyover the past few years; between 1988 and 1993, it fell by at least 50%for virtually every major weapons system.  Weapons spending in 1992 wasapproximately 75% less than in 1988.About 70% of the former Soviet Union's defense industries are located inthe Russian Federation.  A large number of state-owned defenseenterprises are on the brink of collapse as a result of cuts in weaponsorders and insufficient funding to shift to production of civiliangoods, while at the same time trying to meet payrolls.  Many defenseenterprises are now preparing for privatization, some with the help ofprivate U.S. firms (see "Military Issues").The Russian military, for the foreseeable future, will play a role indetermining Russia's internal stability and in formulating nationalpolicies.  This role will be crucial to Russia in proceeding withpolitical and economic reform and establishing a durable pattern ofcooperation with the West.========================================U.S. Support for Russian Democracy and DevelopmentThe U.S. Government has been in the forefront of deliveringprivatization assistance to Russia since October 1992.U.S. Agency for International Development (USAID).  USAID has theprincipal responsibility for implementing technical assistance to Russiaand the other New Independent States.  In FY 1994, USAID devoted over$1.6 billion in assistance to help Russia develop democraticinstitutions and transform its state-controlled economy to one based onmarket principles.  Programs are active in the areas of privatizationand private sector development, agriculture, energy, housing reform,health, environmental protection, economic restructuring, independentmedia, elections, and the rule of law.  The U.S. recently pledged $30million to help Russia in its fight against crime and to support a newlegal infrastructure.U.S. Export-Import Bank (Eximbank).  Eximbank approved about $2 billionin loans, loan guarantees, and insurance for transactions in Russia from1991 to March 1995.  Of this total, more than $1 billion was approvedunder its Oil and Gas Framework Agreement.U.S. Overseas Private Investment Corporation (OPIC).  OPIC providesloans, loan guarantees, and commercial and political investmentinsurance to American companies investing in Russia.  As of FY 1994,OPIC approved more than $720 million in investment financing and over$1.4 billion in insurance for more than 40 projects.  The totalinvestment value of these projects is more than $2.2 billion.  OPIC hasreserved $500 million in finance and insurance assistance for Russia andother NIS defense conversion efforts.Trade and Development Agency (TDA) and Department of Commerce.  TDA hasapproved more than $45 million in funding for feasibility studies on 114investment projects.Commerce Department.  American Business Centers have been opened in St.Petersburg, Nizhnevartovsk, Novosibirisk, Volgograd, Nizhny Novgorod,Yekaterinburg, Khaborovsk, Vladivostok, and Chelyabinsk to help U.S. andRussian companies do business in Russia.  An additional center inYuzhno-Sakhalinsk was planned for opening in 1995.  The CommerceDepartment has also established a Special American Business InternshipProgram (SABIT) in Russia, and an NIS business information system.Agricultural Credit.  For 1995, the U.S. has authorized $30 million inexport credit guarantees in connection with sales of U.S. agriculturalcommodities under a private banking sector program in Russia as part ofthe Commodity Credit Corporation's Export Credit Guarantee Program (GSM-102).U.S. Information Agency (USIA).  USIA continues diverse programs inpublic administration, communications, business, and education inRussia.  By 1995, more than 20,000 Russians will have participated inU.S.-sponsored exchanges.U.S. Department of Agriculture.  A variety of technical assistanceactivities are coordinated by USDA under the Emerging DemocraciesProgram.  In March 1994, a U.S.-Russia Joint Commission for Agribusinessand Rural Development was established to channel funds generated by thesale of donated U.S. commodities to support private and socialinitiatives in rural communities throughout Russia.Eurasia Foundation.  The Foundation--a private, non-profit, grant-makingorganization supported by U.S. funds--has disbursed more than $24million in small grants to U.S. and indigenous organizations promotingreform in Russia and the other NIS.========================================U.S.-RUSSIA RELATIONSWith the end of the Cold War and the reemergence of a Russian state,U.S. relations with Moscow have evolved rapidly.  At meetings inVancouver, Tokyo, Moscow, and Washington, DC, Presidents Clinton andYeltsin laid the basis for a U.S.-Russian partnership.  Progress hasbeen made in several important fields, particularly in arms control.While disagreements persist on individual issues, the U.S. and Russianow consult on major issues of mutual and international interest.The United States actively supports Russian efforts to developdemocratic institutions and a free market economy.  At summit meetingsin Vancouver, Moscow, and Washington, DC, Presidents Clinton and Yeltsinreaffirmed the fundamental importance of U.S.-Russian cooperation andagreed on a variety of bilateral initiatives to expand economicrelations between the two countries and promote democratic and marketreforms in Russia.U.S. assistance to Russia funds a variety of programs in the followingkey areas:  private-sector development, privatization and enterpriserestructuring, trade and investment, democracy initiatives, energy,health care, housing, and environment.  Humanitarian assistancerepresented a major portion of U.S. aid during the initial transitionphase in Russia, when there was a pressing need for food, medicine, andother essential commodities.  U.S. efforts now concentrate on technicalassistance and direct support for trade and investment.Congress has appropriated substantial resources to support U.S.assistance to Russia and the other NIS.  In September 1993, Congressapproved a special one-time assistance package of $2.45 billion aimed athelping all the NIS during the difficult period immediately followingthe fall of communism and the breakup of the Soviet Union.Approximately $1.6 billion of that amount was allocated for programs inRussia.  In August 1994, Congress passed a $850 million legislativepackage for assistance to the NIS in FY 1995, of which about 40% wastargeted for Russia.  Assistance activities in FY 1995 were to continueongoing programs to strengthen democratic practices and promote thedevelopment of private enterprise and market institutions.  There was tobe a new emphasis in the 1995 program on direct support for U.S.-Russiantrade and investment, which has been growing with the successfulimplementation of market reforms.  The 1995 program also was to includenew activities to expand cooperation on strengthening the rule of lawand fighting the rise in crime.U.S. obligations under all assistance programs total $3.65 billion, ofwhich more than $2.6 billion has been expended.  Approvals for thefinancing of investment and non-food exports under U.S. commercialprograms in Russia exceed $2.3 billion.Bilateral Economic IssuesGore-Chernomyrdin Commission.  Under the leadership of Vice PresidentGore and Prime Minister Chernomyrdin, the U.S. and Russia are workingto advance bilateral cooperation through eight working committees knowncollectively as the Gore-Chernomyrdin Commission.  The committeesaddress issues in the fields of science and technology, businessdevelopment, space, energy policy, environmental protection, health,defense diversification, and agriculture.  The Commission last met inMoscow in June 1995 and will again meet in January 1996.Trade and Investment.  At the September 1994 summit in Washington, DC,Presidents Clinton and Yeltsin agreed to place new emphasis on expandingtrade and investment.  They signed a joint statement on a "Partnershipfor Economic Cooperation," which will serve as a framework for reducingbarriers to expanded economic cooperation.  President Clinton alsoannounced that $100 million in FY 1995 assistance to the NIS would beused to provide direct support for trade and investment through theOverseas Private Investment Corporation (OPIC), the Trade andDevelopment Agency (TDA),  and the Commerce Department (see box on "U.S.Support for Russian Democracy and Development").U.S.-Russia trade was about $5.8 billion in 1994.  The U.S.-RussiaBusiness Development Committee (BDC) was established June 1992 in Lisbonand is co-chaired on the U.S. side by Commerce Secretary Ronald Brown.The BDC helps remove impediments to trade and investment.  The 1992U.S.-Russia trade agreement provides mutual most-favored-nation statusand offers intellectual property rights protection.  In 1992, the twocountries also signed treaties on the avoidance of double taxation andon bilateral investment.  The Russian parliament, however, has notratified the bilateral investment treaty.In October 1993, Russia received generalized system of preferences (GSP)status under which more than $440 million of Russian goods will benefit.The U.S. supports Russia's application to become a member of the WorldTrade Organization.</text>
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        <text>U.S. Department of StateBackground Notes:  Russia, October 1995Bureau of Public AffairsOctober 1995Official Name:   Russian FederationPROFILEGeographyArea:  17 million sq. km. (6.5 million sq. mi.); about 1.8 times thesize of the U.S.Cities:  Capital--Moscow (pop. 9 million).  Other cities--St. Petersburg(5 million), Novosibirsk  (1.4 million).Terrain:  Broad plain with low hills west of Urals; vast coniferousforest and tundra in Siberia; uplands and mountains (Caucasus range)along southern borders.Climate:  Northern continental, from subarctic to subtropical.PeopleNationality:  Noun and adjective--Russian(s).Population (1994 est.): 148 million.Annual growth rate:  0%.Ethnic groups:  Russian 81%, Tatar 4%, Ukrainian 3%, Chuvash 1.2%.Religion:  Russian Orthodox, Islamic, Jewish, Roman Catholic,Protestant, Buddhist, other.Language:  Russian (official); more than 140 other languages anddialects.Education:  Literacy--(ages 5-49) 100%.Health:  Infant mortality rate--28/1,000.  Life expectancy--62 yrs. men,74 yrs. women.Workforce:  72 million.  Production and economic services--84%.Government--16%.GovernmentType:  Federation.Independence:  August 24, 1991.Constitution:  December 12, 1993.Branches:  Executive--president, prime minister (chairman of thegovernment).  Legislative--Federal Assembly (Federation Council, StateDuma).  Judicial--Constitutional Court, Supreme Court, Supreme Court ofArbitration, Office of Procurator General.Political parties:  Russia's Choice,  Liberal Democrats Party, AgrarianParty, Communist Party of the Russian Federations, Unity and Accord,Yabloko Bloc, Women of Russia, Democratic Party of Russia, Russia'sPath.Subdivisions:  21 autonomous republics and 68 autonomous territories andregions.Suffrage:  Universal at 18 years.Economy (1994 est.)GDP:  $249 billion.Growth rate:  -10%.Per capita GDP:  $1,682.Natural resources:  Petroleum, natural gas, timber, furs.Agriculture:  Grain, sugar beets, sunflower seeds, meat, dairy products.Industry:  Complete range of manufactures (automobiles, trucks, trains,agricultural equipment, advanced aircraft, aerospace, machine andequipment products), mining and extractive industry, medical andscientific instruments, construction equipment.Trade:  Exports--$48 billion:  petroleum and petroleum products, naturalgas, woods and wood products, metals, chemicals.  Major markets--EU,NIS, United States, Japan, China.  Imports--$28 billion:  machinery andequipment, chemicals, consumer goods, medicines, meat, sugar,semifinished metal products.  Major partners--EU, United States, NIS,Japan, China.  (These figures do not include "shuttle"--or informal,unrecorded--trade.  Estimates for all trade are:  exports--$66 billion,imports--$51 billion.)Principal U.S. exports:  machinery, aircraft, meat.Principal U.S. imports:  aluminum, crude oil, platinum, oil products,iron and steel.PEOPLEThe area of the entire former Soviet Union was 22 million sq. km. (8.7million sq. mi.), and its population was about 260 million.  Russia'sarea is about 17 million sq. km. (6.5 million sq. mi.).  It remains thelargest country in the world by more than 2.5 million sq. mi.  Itspopulation density is about 23 persons per square mile (9 per sq. km.),making it one of the least populated countries in the world.  Itssociety is predominantly urban.Most of the roughly 150 million Russians derive from the Eastern Slavicfamily of peoples, whose original homeland was probably present-dayPoland.  As the official language of Russia, an official language in theUnited Nations, and as a lingua franca among the New Independent States,Russian--one of the Slavic languages--has great importanceinternationally.  As the language of writers such as Tolstoy,Dostoevsky, Chekov, Pushkin, and Solzhenitsyn, it has great importancein world literature as well.Russia's educational system has produced nearly 100% literacy.  About 3million students attend Russia's 519 institutions of higher educationand 48 universities.  As the result of great emphasis on science andtechnology in education, Russian medical, mathematical, scientific, andspace and aviation research is generally of a high order.  Since thecollapse of the Soviet Union, Russian scientists have been allowed moreacademic freedom and freedom of movement.  In some cases, this freedomhas resulted in a serious depletion of the country's human resources, asmany scientists have emigrated to other countries.  Many Russian Jewscontinue to emigrate to the West and to Israel.  The number of doctorsin relation to the population is high by American standards, althoughmedical care in Russia, even in major cities, is far below Westernstandards.The Russian labor force of 72 mil-lion workers is undergoing tremendouschanges.  Although well-educated and skilled, it is mismatched to therapidly changing needs of the Russian economy.  For example, Russia hasa large surplus of scientists, and the largest portion of the workforcecontinues to work in obsolete Soviet-era industries.  Millions ofRussian workers are underemployed.  Unemployment is highest among womenand young people.  As many as 6 million workers were temporarilyfurloughed in the past year.  Many Russian workers compensate by workingother part-time jobs.  With the collapse of the Soviet Union, thestandard of living fell dramatically, but it has begun to recover.Moscow is the largest city (population 9 million) and is the capital ofthe federation.  Moscow continues to be the center of Russian Governmentand is increasingly important as an economic and business center.  Itscultural tradition is rich, and visitors will find many museums devotedto art, literature, music, dance, history, and science.  It has hundredsof churches and some notable cathedrals.St. Petersburg, established in 1703 by Peter the Great as the capital ofthe Russian Empire, was called Petrograd during World War I; just daysafter the death of Lenin in 1924, it was renamed Leningrad. In 1991, asthe result of a city referendum, it was renamed St. Petersburg.  Underthe czars, the city was Russia's cultural, intellectual, commercial,financial, and industrial center.  After the capital was moved back toMoscow in 1918, the city declined but remained a cultural and military-industrial center.  It continues to be a center for publications,education, and scientific research.  St. Petersburg has about 30theaters, concert halls, opera houses, and "palaces of culture."  TheHermitage is one of the world's great museums. Finally, Vladivostok,located in the Russian Far East, is becoming an important trade centerwith the Pacific Rim countries.HISTORYThe vast Eurasian territory comprising historic Russia shows abundantevidence of human occupation dating back to Paleolithic times.  Writtenhistory indicates that Greek traders conducted extensive commerce withScythian tribes around the shores of the Black Sea and the Crimeanregion.  In the third century B.C., Scythians were displaced bySarmatians, who in turn were overrun by waves of Germanic Goths in thethird century A.D.  Asiatic Huns replaced the Goths and were in turnconquered by Turkic Avars in the sixth century.  By the ninth century,Eastern Slavs began to settle Ukraine, Belorussia, and around Novgorodand Smolensk.In 862, the political entity known as Kievan Rus was established in whatis now Ukraine and lasted until the 12th century.  In the 10th century,Christianity became the state religion under Vladimir, who adopted GreekOrthodox rites.  Consequently, Byzantine culture predominated, as isevident widely today in Russia's architectural, musical, and arttreasures.Over the next centuries, various invaders assaulted the Kievan state,and finally, Mongols under Batu Khan destroyed the main populationcenters except for Novgorod and Pskov and prevailed over the regionuntil 1480.  Under Ivan I, Moscow began to assume pre-eminence overother cities; Muscuvite czars threw off the Mongol influence andgradually expanded their domain through diplomacy and war, until IvanIII (1462-1505) was able to refer to his empire as "the Third Rome" andheir to the Byzantine tradition.The next 200 years saw the ebb and flow of regional conflict, until theRomanov dynasty was established under Czar Michael in 1613.  Thisdynasty ended with the liquidation of the Romanov family by theBolsheviks in 1917.During Peter the Great's reign (1689-1725), Russia burst into Europeanand world consciousness, and European influences spread throughoutRussia in ways still manifesting themselves in the history and currentfortunes of Russia and its neighbors.  He created Western style militaryforces, subordinated the Russian Orthodox Church hierarchy to the czar,reformed the entire governmental structure, and established thebeginnings of a Western-style education system.  His introduction ofEuropean customs generated nationalistic resentments in society, and aphilosophical duality of "Westernizers" and nationalistic "Slavophiles"emerged over the next centuries.  This dualism manifested itself invarious ways over time and since the dissolution of the Soviet Union in1991 has re-emerged as a key dynamic of current Russian social andpolitical thought.Peter's expansionist policies were pursued aggressively by Catherine theGreat (reigned 1762-96), who established Russia as a continental power.During her reign, power continued to centralize around the Romanovs andadministrative reforms put great wealth and privilege firmly in thehands of the Russian nobility.  Russian culture flowering during herreign formed the basis for Russia's cultural outpourings in music,literature, art, and dance, particularly of the 19th century.Napoleon failed in his attempt in 1812 to conquer Russia after occupyingMoscow; his total collapse, and attempts by Europe's great powers torestore continental order at the Congress of Vienna (1814-15), set thestage for Russia and Austria to dominate the affairs of eastern Europefor the next century.During the 19th century, which saw great social, economic, and politicalchange in the rest of Europe, the Western Hemisphere, and Asia, theRussian Government sought to suppress repeated attempts at reform fromwithin as well as in such neighboring states as Hungary and Poland.  Itseconomy failed to compete with those of Western countries, and pressuresfor social and political change continued to build under the weight ofagrarian traditions, the feudal serf system, and untrammeled andwasteful privilege among the aristocracy.  Russian cities were alsogrowing but did not have an industrial base to generate employment.This shortfall was especially acute after the emancipation of serfs in1861.  Countering these reactionary pressures politically was dynamicexpansion across Siberia until the port of Vladivostok was opened on thePacific coast in 1860.  Great accomplishments such as the Trans-SiberianRailroad opened vast frontiers to development late in the century butdid not solve fundamental problems of economic opportunity andprosperity for the majority of Russian subjects.Centuries of successful imperialistic expansion ended with the defeat inthe unpopular Russo-Japanese war in 1905.  Subsequent disaffectionfueled the successful Revolution of 1905 and spurred Czar Nicholas IItactically to grant a constitution.  However, hopes for reform wereshort-lived.  Brutal suppressions by the government grew into programsof police terror, and manipulations of popular anger were channeled intoantisemitic pogroms and other actions against national groups.  Stateabuses contrasted with official attempts at conciliation, such as landreform.1917 Revolution and the U.S.S.R.Ultimately, both approaches failed, and the ruinous effects of the WorldWar I, combined with internal pressures, sparked the March 1917revolution.  Alexander Kerenski became Premier.  On November 7, 1917,the Marxist-Leninist Bolshevik party, led by Vladimir Lenin, seizedcontrol and established the Russian Soviet Federated Socialist Republic.Civil war broke out in 1918 between Lenin's "Red" forces and Kerenski's"Whites" and lasted until 1920, when, despite foreign interventions, theBolsheviks triumphed.  After the Red army conquered Ukraine, Belorussia,Azerbaijan, Georgia, and Armenia, a new nation was formed in 1922, theUnion of Soviet Socialist Republics.The U.S.S.R. lasted 69 years; for more than half that time, it ranked asa nuclear superpower.  In the 1930s, tens of millions of its citizenswere collectivized under state agricultural and industrial enterprisesand millions died in political purges and the vast penal and laborsystem or in state-created famines.  During World War II, as many as 20million Soviet citizens died.The U.S.S.R.'s chief political figures were Lenin, leader of theBolshevik party and head of the first Soviet Government, who died in1924.  In the late 1920's, Joseph Stalin emerged as General Secretary ofthe Communist Party of the Soviet Union (CPSU) amidst intrapartyrivalries and maintained complete control over Soviet domestic andinternational policy until his death in 1953.  His successor, NikitaKhrushchev, served as Communist Party leader until he was ousted in1964.  Aleksey Kosygin became Chairman of the Council of Ministers andLeonid Brezhnev was made First Secretary of the CPSU Central Committeein 1964, but in 1971, Brezhnev rose to become "first among equals" in acollective leadership.  Brezhnev died in 1982 and was succeeded by YuriyAndropov (1982-84), Konstantin Chernenko (1984-85), and MikhailGorbachev, who resigned as Soviet President on December 25, 1991.  OnDecember 26, 1991, the U.S.S.R. formally was dissolved.The Russian FederationThe Russian Federation's independence dates from August 24, 1991.  Afterthe December 1991 dissolution of the Soviet Union, the RussianFederation became its largest successor state, inheriting its permanentseat on the United Nations Security Council, as well as the bulk of itsforeign assets and debt.  Almost all of the former Soviet republicsagreed to retain a vehicle for mutual discussion and cooperation--theCommonwealth of Independent States (CIS).  Georgia joined the CIS inlate 1993.Boris Yeltsin was elected President of Russia by popular vote in June1991.  By the fall of 1993, politics in Russia reached a stalematebetween President Yeltsin and the parliament.  The parliament hadsucceeded in blocking, overturning, or ignoring the President'sinitiatives on drafting a new constitution, conducting new elections,and making further progress on democratic and economic reforms.In a dramatic speech on September 21, 1993, President Yeltsin dissolvedthe Russian parliament and scheduled national elections for December 12,1993.  After an armed insurrection by opposition supporters failed onOctober 3, Yeltsin ordered the army to take over the parliament building(called the White House) in Moscow.Two houses of the new Russian parliament were elected in December 1993--the upper Federation Council (170 members) and the lower State Duma (450members).  Half of the new Duma members were elected from party listsand the other half in single-seat races in individual electiondistricts.  Pro-reform groups won a total of 112 Duma seats.Independents won 135 seats, while representatives from other partiesgained 15 seats.  The opposition, a diverse group, aimed for a unifiedposition but remained divided over key political and economic issues andwhether to participate in mainstream politics.  Fifty-four percent (58million) of the registered voters participated in the December 12, 1993elections.  A new constitution took effect the same day.GOVERNMENT AND POLITICAL CONDITIONSIn the political system established by the 1993 constitution, thepresident wields considerable executive power.  There is no vicepresident, and the legislative is subordinate to the executive.  Thepresident nominates the highest state officials--including the primeminister, who must be approved by the Duma; he may dissolve the Duma ifit repeatedly turns down his choice of prime minister.  The presidentcan pass decrees without consent from the Duma.  He also is head of thearmed forces and of the potentially powerful security council.Although the parliament elected in December 1993 has been more moderateand effective than many observers had predicted after the elections,coordination between the upper and lower houses is troublesome.  Bothhouses are divided between many parties, and groups with littleattachment to democracy--including communists and extreme nationalists--hold large numbers of seats, slowing the passage of laws on democraticand economic reforms.Russia is nominally a federation, but the precise distribution of powersbetween the central government and the regional and local authorities isstill evolving.  The Russian Federation consists of 89 components,including two "cities of federal significance," Moscow and St.Petersburg.  The constitution explicitly defines the federalgovernment's exclusive powers, but it also describes most key regionalissues as the joint responsibility of the federal government and theFederation components.President Yeltsin has opposed most local elections, preferring toappoint regional governors directly.  Relations between Moscow and thefederation components are largely stable.  The war in Chechnya (see box)has not spawned separatist movements elsewhere.Chechnya is a symptom and a result of Russia's uneven movement toward afunctional democracy.  Making democracy a reality in Russia is hamperedby the limited public trust of virtually all public institutions.Average Russians have a poor understanding of the benefits of democracy,associating it with social disorder, crime, corruption, and economichardship they have recently experienced.  But in spite of setbacks inRussia's democratic development, the country has made some progress ingovernmental and human rights reform over the past four years.========================================ChechnyaRussia's ill-conceived and badly executed military operation in therepublic of Chechnya overshadows Russia's internal political and humanrights situation.  In the course of the two months it took for theRussian forces to capture the republic's capital of Grozny, at least2,000 Russian soldiers, several thousand Chechen fighters, and perhaps15,000 to 20,000 civilians--ethnic Russians as well as Chechens--werekilled; huge areas of the capital were destroyed.  Russian forces wererepeatedly and credibly reported to have used indiscriminate andexcessive force against non-combatants.  From December 11, 1994--whenthe military operation against Chechnya began--until May 15, 1995,Russian forces gained daytime control of large swaths of territory inChechnya; the high levels of fighting included unconfirmed reports thatRussian forces employed toxic chemicals against Chechen fighters andcivilians.Peace talks between the Russians and Chechens, conducted under theauspices of the Organization for Security and Cooperation in Europe(OSCE), began on May 25, 1995.  On July 30, 1995, the two sides signed amilitary accord which called for a cease-fire, the complete disarmamentof Chechen fighters, and withdrawal of Russian troops from Chechnya.The terms of the armistice have not yet been fully implemented, and nooverarching political settlement--addressing the final status ofChechnya--has been reached.========================================ElectionsElections have generally been free and fair.  Parliamentary electionsare scheduled for December 17, 1995, and presidential elections for June1996.  The President and Duma have approved a new federal electoral law.The official campaign period began September 17.  More than 250electoral blocs declared their intention to stand candidates.At the same time, the political environment in Russia is more unclearnow than at any time since the standoff at the White House in October1993.  A number of competing election blocs have been formed, andRussian reformists who charged the Russian Government with major humanrights abuses in Chechnya are increasingly cut off politically.Largely because of Chechnya, President Yeltsin is isolated from histraditional reformist allies, and his popularity has fallen to historiclows.  Thus far, his misfortune has not redounded to the benefit of anyother political leader; no other politician has emerged as a naturalsuccessor.  The low popularity of all the likely candidates, coupledwith the enormous apathy of the Russian electorate, makes unpredictablefor now the election outcomes.  Despite much public discussion aboutpostponing the presidential elections, President Yeltsin has repeatedlypledged that they will be held as scheduled.Judicial SystemRussia's judiciary is still weak.  The reconvening of the ConstitutionalCourt was an important step in the country's judicial reform and hadbeen anxiously awaited.  It remains to be seen what role the court willplay.  Suspended by President Yeltsin in October 1993, the reconstitutedand redefined Constitutional Court held its first session on March 16.The 1993 constitution empowers the court to arbitrate disputes betweenthe executive and legislative branches and between Moscow and theregional and local governments.  The court is also authorized to rule onviolations of constitutional rights, examine appeals from variousbodies, and participate in impeachment proceedings against thepresident.  The July 1994 Law on the Constitutional Court prohibits thecourt from examining cases on its own initiative and limits the scope ofissues the court can hear.In the past three years, the Russian Government has made substantialefforts to reform the criminal justice system and judicial institutions.Despite these efforts, judges are only beginning to assert theirconstitutionally mandated independence from other branches ofgovernment.  This has been hampered by the slow passage of laws and byinadequate funding for judicial reforms on the part of Federation andregional governments.  In addition, judges have not received necessarytraining and are totally dependent on the Ministry of Justice for courtinfrastructure and financial support and on local authorities for theirhousing.Human RightsRussia's human rights record remains uneven despite human rightsguarantees in the 1993 constitution.  One of the most basic differencesfrom pre-democratic times in Russia is the empowerment of human rightsnon-governmental organizations and the press to investigate and publish.The often-critical coverage of Chechnya has demonstrated the degree towhich the media are substantially free and express a wide range ofviews.  The government placed intermittent restrictions on presscovering the war in Chechnya, citing the need to protect militarysecrets and to ensure journalists' safety.  The government also putheavy pressure on media representatives to follow the official line onthe conflict.There is still a great deal of official and societal ambiguity on theplace of human rights in Russia.  The Duma relieved Parliamentary HumanRights Ombudsman Sergey Kovalev of his duties after he publicizedRussian atrocities in Chechnya.  In August 1995, the Presidential HumanRights Commission, headed by Kovalev, was rumored to be disbanded.Instances of harassment of foreigners, political opponents, and humanrights activists by elements of the security services continue, makingthe recent expansion of the powers of the Federal Security Service, asuccessor to the Soviet KGB, a cause for concern.Freedom of assembly, association, religion, speech, and media aregenerally respected in Russia, although many important acts oflegislation in these areas have still not been passed. President Clintonrecognized the reality of freedom of emigration by declaring that Russiais in compliance with Jackson-Vanik provisions.  Certain practices,however, have not been codified into law due to the difficulty ofpassing legislation.  The law proposed in 1991 on exit and entry isbeing implemented even though it is not officially in the law books.Restrictions on freedom of travel are still imposed through theselective enforcement of the propiska (residence permit) system, mostoften against dark-complexioned people.  Refugees from Central Asia andthe Caucasus still meet discrimination in the major cities.Antisemitism continues to be a problem in Russia despite welcome effortsby Russian officials to discourage it and all forms of anti-democraticbehavior.  Statements by Russian leaders cannot by themselves eradicatethe roots of intolerance.  Efforts to discourage all forms ofintolerance at all levels of the Russian Government should beencouraged.In addition to human rights violations in Chechnya and the issuesdiscussed above, other issues of special concern include: unclear orunenforced laws, police brutality, unfit prison conditions, hazing inthe armed forces, violence against women, and bureaucratic obstacles tothe development of independent labor unions.Principal Government OfficialsPresident--Boris YeltsinPrime Minister--Viktor ChernomyrdinFirst Deputy Prime Ministers--Oleg Soskovets and Anatoliy ChubaysKey MinistersDeputy Prime Minister and Minister of Foreign Economic Relations--OlegDavydovCommunications--Vladimir BulgakCulture--Yevgeniy SidorovDefense--Pavel GrachevEconomic Affairs--Yevgeniy YasinEnvironment and Natural Resources--Viktor Danilov-DanilyanForeign Affairs--Andrey KozyrevFuel/Energy--Yuri ShafranikHealth--Eduard NechayevInterior--Anatoliy KulikovJustice--Valentin KovalevNationalities--Vyacheslav MikhailovNuclear Energy--Viktor MikhailovScience and Technology--Boris SaltykovAmbassador to Washington--Yuli VorontsovAmbassador to the United Nations--Sergey LavrovThe Russian Federation maintains an embassy at 2650 Wisconsin Ave. NW,Washington, DC  20007 (tel. [phone]) and a consulate at 1825 PhelpsPlace NW, Washington, DC  20008 (tel. [phone]).  Russian consulatesare also located in New York, San Francisco, and Seattle.ECONOMYAs it moves from a centrally planned economy to a free market system,the Russian economy has undergone considerable stress.  The country hasestablished new ties in the world economy while links to its traditionaltrade partners have diminished.  Russia accounts for more than one-halfof the population of the New Independent States (NIS) of the formerSoviet Union and 60% of their total gross domestic product.GDP.  GDP fell 19% in 1992,  another 12% in 1993, and 10% in 1994.  Butindustrial production rose slightly in July 1994, for the first timesince 1993.  Production of consumer durables, including automobiles andappliances, as well as food processing are also increasing.  In 1993,transport was down by 25% from the previous year's volume, constructionmaterials by 15%, and agriculture by 4%.  Oil extraction and natural gasproduction fell slightly.  The service sector of the economy, asrecorded in official statistics, grew almost 45% in 1993 over 1992, to42% of total GDP.  But official statistics miss significant economicactivity in the private sector and parallel economy.  Officialunemployment was only 1% of the work force in 1993, but this figureomits an estimated 4-5 million who work reduced hours or are onvoluntary leave.  The government forecasts 7 million unemployed--about12% of the working population, by the end of 1994.Monetary Policy.  Inflation rose to a peak of 30% per month by January1993.  Since then, monthly inflation has declined, albeit in fits andstarts.  The government has pursued various economic policies, includingraising interest rates, reducing or ending subsidies, and otherwisetrying to stabilize the macroeconomy.  Russia abolished the ruble zonein mid-1993, which forced other NIS republics to issue their owncurrencies and had a positive impact on Russian inflation.  The ruble,which is now traded daily against major currencies at the MoscowInterbank Currency Exchange, depreciated steadily against the dollarduring 1994.Government Spending/Taxation.  The Duma has passed a 1995 budget with aprojected deficit of less than 6% of GDP--austere enough to satisfy theInternational Monetary Fund. A value-added-tax (VAT) was introduced in1992 and accounted for 25% of government revenues in 1993.  Russia's taxbase has steadily eroded, due to the decline in industrial productionand the lack of liquidity in large sectors of the economy.  Asignificant proportion of taxes and trade duties is unpaid.Privatization.  Russia has made significant headway in privatizing manyeconomic sectors.  More than 50% of GDP is now produced in the marketeconomy.  More than one-half of the work force is in the private sector,and 70% of state-controlled industry has been privatized since reformsbegan in 1992.  There are 270,000 private farms.  About 30% of state-owned housing (about 8 million dwellings) had been turned over toprivate individuals by the end of 1993.  State-subsidized rents andutilities, however, continue to discourage individual home ownership.</text>
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        <text>US DEPARTMENT OF STATEPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSBACKGROUND NOTE:  Qatar, April 1992Official Name:  State of QatarPROFILEGeographyArea: 11,437 sq. km. (4,427 sq. mi.); about the size of Connecticutand Rhode Island combined.  Cities: Capital--Doha (pop. 300,000).Other cities--Umm Said, Al-Khor, Dukhan, Ruwais.  Terrain: Mostlydesert, flat, and barren.  Climate: Hot and dry.PeopleNationality: Noun and adjective--Qatari(s).  Population: 400,000.Ethnic groups: Arab 55%, South Asian 33%, Iranian 6%.  Religion:Islam 95%.  Languages: Arabic (official), English.  Education:Years compulsory--ages 6-16.  Attendance--98%.  Literacy--65%.Life expectancy--58 yrs.  Work force (primarily foreign):Industry, services, and commerce--70%, Government--20%,Agriculture--10%.GovernmentType: Traditional emirate.  Independence: September 3, 1971.Constitution: None; the 1970 Basic Law serves as a constitution.        Branches: Executive--Council of Ministers (cabinet).Legislative--Advisory Council (has assumed only limitedresponsibility to date).  Judicial--independent. Subdivisions:Fully centralized government. Political parties:  None.  Suffrage:None.        Flag: Maroon with white serrated border.EconomyGDP (1992 est.):  $5.2 billion.  Annual growth rate (1992 est.):4%.  Per capita income (1992 est.): $13,000.        Natural resources: Petroleum, natural gas, fish.        Agriculture (about 1% of GNP): Products--fruits,vegetables, (most food is imported).        Industry: Types--oil production and refining (32% of GNP),natural gas development, fishing, cement, power/desalinizationplants, petrochemicals, steel, and fertilizer.        Trade: Exports (1992 est.)--$2.2 billion: principally oil(75%-80%).  Major markets--UK, Japan, US, Western Europe. Imports(1992 est.)--$1.4 billion: industrial and consumer goods.  Majorsuppliers in 1989 were Japan (16%), UK (12%), and US (9%).  Germanyand Italy are also major suppliers.        Official exchange rate (March 1992): US$1=1.4 Qataririyals.        Economic aid sent (1980-86 est.): $360 million, mainly toother Arab    states, Palestinians, and developing countries.PEOPLE        Natives of the Arabian Peninsula, most of the Qatari peopleare descended from a number of migratory tribes which came to Qatarin the 18th century to escape the harsh conditions of the     neighboring areas of the Nejd and Al-Hasa.  Some Qataris aredescended from Omani tribes. The population is about 400,000, thegreat majority of which live in Doha, the capital.  Foreign workerswith temporary residence status make up 75%-80% of the population.Most are South Asians (from India, Pakistan, Bangladesh, and SriLanka), Egyptians, Palestinians, Jordanians, and Iranians. Theresident British community numbers about 5,000 in 1989, and about500 US citizens reside there.        For centuries, pearling, fishing, and trade were the mainsources of wealth.  At one time, Qataris owned nearly one-third ofthe Persian Gulf fishing fleet.  With the world recession in 1928and the introduction of Japan's cultured pearl industry, pearlingin Qatar declined drastically.        The Qataris are mainly Sunni ("Wahhabi") Muslims.  Islam isthe official religion, and Islamic jurisprudence is the basis ofQatar's legal system.  Arabic is the official language, and Englishis the lingua franca. Education is compulsory and free for all Arabresidents 6-16 years old.  The Qatari literacy rate, estimated at65%, is increasing.HISTORY        Qatar has been inhabited for millennia. In the 19thcentury,  the Bahraini Al Khalifa family dominated until 1868,when, at the request of Qatari nobles, the British negotiated thetermination of the Bahraini claim, except for the payment oftribute.  The tribute ended with the occupation of Qatar by theOttoman Turks in 1872.        When the Turks left, at the beginning of World War I, theBritish recognized as ruler Shaikh Abdullah bin Jassim Al Thani.The Al Thani  family had lived in Qatar for 200 years.  The 1916treaty  between the United Kingdom and Shaikh Abdullah was similarto those entered into by the British with other Gulfprincipalities.  Under it, the ruler agreed  not to dispose of anyof his territory except to the United Kingdom and not to enter intorelationships with any other foreign government without Britishconsent.  In return, the British promised to protect Qatar from allaggression by sea and to lend their good offices in case of a landattack.  A 1934 treaty granted more extensive British protection.        In 1935, a 75-year oil concession was granted to the QatarPetroleum Company, a subsidiary of the Iraq Petroleum Company,which was owned by Anglo-Dutch, French, and US interests.High-quality oil was discovered in 1940 at Dukhan, on the westernside of the peninsula.  Exploitation was delayed by World War II,and oil exports did not begin until 1949.        During the 1950s and 1960s, gradually increasing oilrevenues brought prosperity, rapid immigration, substantial socialprogress, and the beginnings of Qatar's modern history.        When the British Government announced a policy in 1968(reaffirmed in March 1971) of ending the treaty relationships withthe Gulf shaikhdoms, Qatar joined the other eight states  thenunder British protection (the seven trucial shaikhdoms--the presentUnited Arab Emirates--and Bahrain) in a plan to form a union ofArab emirates. By mid-1971, however, the nine sheikhdoms still hadnot agreed on terms of union, and the termination date (end of1971) of the British treaty relationship was approaching.Accordingly, Qatar sought independence as a separate entity andbecame the fully independent State of Qatar on September 3, 1971.GOVERNMENT AND POLITICAL CONDITIONS        The head of state is the emir, and the right to rule Qataris passed on within the Al Thani, the ruling family.  Politically,Qatar is evolving from a traditional society into a modern welfarestate.  Government departments have been established to meet therequirements of social and economic progress.  The basic law of1970 institutionalized local customs rooted in Qatar's conservative"Wahhabi" heritage, granting the emir preeminent power. The emir'srole is influenced by continuing traditions of consultation, ruleby consensus, and the citizen's right to appeal personally to theemir. The emir, while directly accountable to no one, cannotviolate the Shari'a (Islamic Law) and, in practice, must considerthe opinions of leading notables and the religious establishment.Their position was institutionalized in the Advisory Council, anappointed body that assists the emir in formulating policy.  Anelectoral system has not been set up.  Political parties arebanned.        The influx of expatriate Arabs has introduced ideas thatcall into question the tenets of Qatar's traditional society, butthere has been no serious challenge to Al Thani rule.        In February 1972, the deputy ruler and Prime Minister ofQatar, Sheikh Khalifa, deposed his cousin, Emir Ahmad, and assumedpower.  This move was supported by the key members of the Al Thaniand took place without violence or signs of political unrest.Principal Government OfficialsEmir, Acting Prime Minister--HH Sheikh Khalifa bin Hamad Al ThaniCrown Prince and Minister of Defense--HH Sheikh Hamad bin KhalifaAl ThaniMinister of Foreign Affairs--Mubarak Ali Al-KhaterAmbassador to the United States--Hamad Abdulaziz Al-KawariAmbassador to the United Nations--Dr. Hassan Ali Hussain Al-Ni'mah        Qatar maintains an embassy in the United States at Suite1180, 600 New Hampshire Avenue, NW, Washington, DC (tel.[phone]). Construction of a new chancery has begun in the VanNess Embassy Center in Washington, DC.  The Permanent Mission tothe United Nations is at 747 Third Avenue, 22nd Floor, New York, NY10017 (tel. [phone]).DEFENSE        Qatar maintains a modest defense establishment, includingan army (5,000 troops), an air force (1,000), a navy (800), and apolice force (6,000).  Qatar has purchased arms and equipment fromthe United Kingdom and, most recently, from France.  Modernequipment in the Qatari inventory includes the F-1 Mirage andCombattante Patrole boats.  Qatar plays an active role in thecollective defense efforts of the Gulf Cooperation Council (theregional organization of Arab states in the Gulf).  Qatari forcesplayed a disproportionately important role in Operation DesertShield/Storm.ECONOMY        Oil revenues are the basis of Qatar's economy and providemore than 80% of government revenue.  In 1973, oil production andrevenues increased sizably, moving Qatar out of the ranks of theworld's poorest countries and providing it with one of the highestper capita incomes.  Despite a marked decline in levels of oilproduction and prices since 1982, Qatar remains a wealthy country.        Qatar's economy was in a downturn from 1982 to 1989.  OPEC(Organization of Petroleum Exporting Countries) quotas on crude oilproduction, the lower price for crude oil, and the generallyunpromising outlook on international oil markets reduced oilearnings, the state's main source of revenue. The QatariGovernment's spending plans had to be cut to match lower income.The resulting recessionary local business climate caused many firmsto lay off expatriate staff to cut costs.  With the economy finallybeginning to recover, expatriate populations, particularly fromEgypt and South Asia, are growing again.  The overall number ofWesterners appears still to be declining.        Observers expect that Qatar's oil production and revenueswill decline toward the end of the century.        Oil production will not return to earlier peak levels of500,000 barrels per day (b/d), due to gradual depletion of oilfields, but the partial recovery of oil prices in 1989, along withproduction of close to 400,000 b/d, has begun taking Qatar'seconomy out of the doldrums.  The economy was also boosted in 1991by completion of the $1.5 billion Phase I  of North Field gasdevelopment.        North Field reserves (350 trillion cubic feet) are amongthe world's largest.  Their exploitation will influence Qatar'sfuture plans and public spending significantly. Recent officialstatements indicate that Qatar is about to start development ofPhase II, for domestic consumption.        Further phases of North Field gas development involvingexports via pipeline and/or gas liquifaction may cost $5-6 billion,not counting associated industrial projects.        Qatar's heavy industrial projects, all based in Umm Said,include a refinery with a 50,000 b/d capacity, a fertilizer plantfor urea and ammonia, a steel plant, and a petrochemical plant.All these industries use gas for fuel. Most of them are jointventures between European and Japanese firms and the State-ownedQGPC. Although the United States is a major equipment supplier forQatar's oil and gas industry, and US companies are playing a majorrole in North Field gas development, to date there has been littleAmerican investment in Qatar.  At least one US company isconducting some oil/gas exploration and development.        Qatar pursues a vigorous program of "Qatarization," underwhich all joint venture industries and government departmentsstrive to move Qatari nationals into positions of greaterauthority. Growing numbers of foreign-educated Qataris, includingmany educated in the United States, are returning to Qatar toassume key positions formerly occupied by expatriates. In order tocontrol the influx of expatriate workers, Qatar, over the past fewyears, has tightened the administration of its foreign manpowerprograms. Security is a principal basis for Qatar's strict entryand immigration rules and regulations.FOREIGN RELATIONS        Qatar achieved full independence in an atmosphere ofcooperation with the United Kingdom and friendship with itsneighboring states.  Most Arab states, the United Kingdom, and theUnited States were among the first countries to recognize Qatar,and the state promptly gained admittance to the United Nations andthe Arab League.  Qatar established diplomatic relations with theUSSR and China in 1988. It was an early member of OPEC and afounding member of the Gulf Cooperation Council.  Qatar and Bahraindispute ownership of the Hawar Islands.  In October 1991, the twocountries agreed to let the International Court of Justice at TheHague decide whether it would accept jurisdiction over the case.        Although Qatar is still a foreign aid donor, financialassistance to other countries has been sharply reduced since 1985.US-QATARI RELATIONS        Bilateral relations are cordial. The US Embassy was openedin March 1973.  The first resident US Ambassador arrived in July1974.        In the summer of 1986, the former Minister of Education,Sheikh Mohammed bin Hamad Al Thani, third-ranking official in thegovernment, visited the United States as guest of US Secretary ofEducation, William J. Bennett.  In October 1987, Energy SecretaryJohn S. Herrington led a delegation on a visit to Qatar whichincluded calls on the emir and the heir apparent and meetings atthe Ministry of Finance and Petroleum. Secretary of Energy HensonMoore led a delegation to Qatar in October 1991.  Over 400 Qatarisstudy at US universities.Principal US OfficialsAmbassador--vacantEconomic/Commercial Officer--Margarita RagsdaleConsular Officer--Kathleen A. SmithAdministrative Officer--Scott R. HeckmanPublic Affairs Officer--John F. Berry        The US Embassy in Qatar is located in Doha.  The address isPO Box 2390, (tel. [phone]; telex. 4847 AMEMB Doha; fax:[phone]).  The embassy is open Saturday through Wednesday(Qatar's workweek) and closed for American and Qatari holidays.Travel Notes        Climate and clothing:  May through mid-October is extremelyhot in Qatar, and light-weight attire is recommended.  Frommid-October through April, spring and fall clothing is comfortable.One should dress conservatively in public.        Visas:  American citizens require valid visas to enterQatar.  Generally, travelers are required to show evidence that aQatari citizen or company will sponsor them during their stay inQatar.  Visas are also available through the major hotels forintended guests, but arrangements must be made several weeks inadvance.        Communications:  Allow 2 weeks for airmail delivery betweenthe US and Qatar. Letters, videos, and packages are subject toinspection and censorship. Cable and telex lines to leading hotelsand places of business are good. Telephone connections areexcellent, and faxes are widely available. Qatar is eight timezones ahead of eastern standard time.</text>
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        <text>U.S. Department of StateBackground Notes:  Portugal, August 1995Bureau of Public AffairsAugust 1995Official Name:  Republic of PortugalPROFILE Geography Area: 94,276 sq. km. (36,390 sq. mi.), including the Azores and Madeira Islands; about the size of Indiana.Cities: Capital--Lisbon (pop. 1.9 million). Other major city--Oporto (1.7 million). Terrain: Mountainous in the north; rolling plains central south. Climate: Maritime temperate. PeopleNationality: Noun and adjective--Portuguese (sing. and pl.). Population:  9.8 million.Annual growth rate:  0.06%. Ethnic groups: Homogeneous Mediterranean stock with small black African minority. Religion: Roman Catholic 97%. Language: Portuguese. Education: Years compulsory--nine. Attendance--60%. Literacy--87%. Health:  Infant mortality rate--10/1,000. Life expectancy--75 yrs. Work force (4.6 million): Government, commerce, and services--55%. Industry--33%. Agriculture--12%. Government Type: Parliamentary democracy. Constitution: Effective April 25, 1976; revised October 30, 1982, and June 1, 1989.Branches: Executive--president (chief of state), Council of State (presidential advisory body), prime minister (head of government), Council of Ministers. Legislative--unicameral Assembly of the Republic (between 230 and 235 deputies). Judicial--Supreme Court, district courts, appeals courts, Constitutional Tribunal. Major political parties: Social Democratic Party, Socialist Party, Portuguese Communist Party, Popular Party (formerly Social Democratic Center). Suffrage: Universal at age 18.Subdivisions: 18 districts, two autonomous regions, and 1 dependency.Economy GDP (1994): $88 billion. Annual  growth rate (1994): 1.1%.Per capita GDP (1994): $8,925.Natural resources: Fish, cork, tungsten, iron, copper, tin, and uranium ores. Agriculture (5% of GDP): Forestry, fisheries. Industry (34% of GDP): Types--textiles, clothing, footwear, construction, food, beverages, tobacco.Services (61% of GDP): Commerce, government, housing, banking, and finance. Trade (1994): Exports--$17.5 billion: clothing, footwear, electrical machinery and appliances, automobiles. Imports--$24 billion: electrical and non-electrical machinery, automobiles, fuel, appliances. Major partners--European Union, U.S., European Free Trade Association (EFTA).Official exchange rate (August 1995): U.S. $1 = 150 escudos.U.S.-PORTUGUESE RELATIONSThe United States encourages a stable and democratic Portugal that is closely associated with the industrial democracies of Western Europe and NATO; it has supported Portugal's successful entry into the West European economic and defense mainstream. Portugal's commitment to democratic values is demonstrated by the country's transition from authoritarian rule to constitutional democracy following a nearly bloodless 1974 coup and its excellent human rights record. Bilateral ties date from the earliest years of the United States. On February 21, 1791, President George Washington opened formal diplomatic relations, naming Col. David Humphreys as U.S. minister. Portugal's history of looking toward the Atlantic rather than continental Europe and the U.S. position as an Atlantic power have fostered close contact between the two nations. Emigration and sizable Portuguese communities in the United States contribute to a strong cultural bond.The U.S. and Portugal share a mutually beneficial economic relationship, with bilateral trade of $1.8 billion in 1994. While total Portuguese trade has increased dramatically over the last 10 years, the U.S. percentage of it--both exports and imports--has declined. The Portuguese Government is seeking to increase exports of textiles and footwear to the United States and is encouraging greater bilateral investment.U.S.-Portuguese defense cooperation continues to be excellent. The Agreement on Cooperation and Defense, signed June 1, 1995, provides for continued U.S. access to the Lajes Air Base in the Azores as well as cooperation in non-military endeavors. The air base provides valuable service, as illustrated most recently by Operation Desert Storm and by Operation Restore Hope in Somalia. The United States and other NATO allies provide equipment and training to the Portuguese military.From 1975 through 1992, U.S. economic assistance to Portugal managed by the U.S. Agency for International Development (USAID) was $1.3 billion, including refugee and disaster assistance, agriculture, schools and rural education, health, low-income housing and housing guaranties, basic sanitation, consultants and training, balance-of-payments loans, PL 480 loans, and Economic Support Funds (ESF) cash transfers. The economically underdeveloped Azores Islands group was a major recipient of targeted USAID assistance. All forms of economic assistance ended by 1993; Portugal continues to participate in U.S. military training programs.Principal U.S. Embassy OfficialsAmbassador--Elizabeth Frawley BagleyDeputy Chief of Mission--Sharon WilkinsonPolitical Affairs--Julien LeBourgeoisEconomic Affairs--Donald CookeConsular Affairs--David BocskorAdministrative Affairs--Raymond BoneskiPublic Affairs--Kathleen BrionCommercial Affairs--Daniel ThompsonAgricultural Affairs--Franklin LeeDefense and Air Attache--Col. David BellArmy Attache--Lt. Col. Rudolph GarciaNavy Attache--Capt. James PonzoOffice of Defense Cooperation--Col. Jesse PerezConsul, Ponta Delgada--Luis Espada-PlatetThe U.S. embassy is at Avenida Forcas Armadas, Lisbon 1600 (tel. [phone]). The Ponta Delgada consulate is at Avenida Infante D. Henrique, Ponta Delgada, Sao Miguel, Azores 9502 (tel. 22216). The consular agent in Funchal, Madeira is Antonio Drummond Borges (tel. 47429).ECONOMIC CONDITIONSPortugal's economy is based on traditional industries such as textiles, clothing, footwear, cork and wood products, beverages (wine), porcelain and earthenware, and glass and glassware. Portugal will strengthen its position in the automobile industry in 1995 when the multibillion-dollar AutoEuropa project begins producing the Ford "Galaxy" and Volkswagen "Sharan" vans at a state-of-the-art plant in Setubal for export to European markets. The country is also a major European tourist destination: In 1994, more than 21 million tourists arrived in Portugal from Spain, the United Kingdom, Germany, France, and the United States.Portugal traditionally runs a merchandise trade deficit, which it finances through net receipts from tourism, remittances from Portuguese workers abroad, and net transfers from the European Union (EU). Net EU transfers in 1995 are expected to be $2.8 billion, or 3% of GDP. During 1989-93, its current account was broadly in balance and foreign direct investment averaged close to $2 billion per year.The country's entry into the EC--now the EU--in 1986 and the accompanying obligations to open its markets and compete freely with its EU partners stimulated economic reforms and continue to influence economic policy and business strategy.Portugal's privatization program has reduced the state presence in the economy and yielded substantial revenues to the government. It is the third-largest privatizer in the OECD, after the United Kingdom and New Zealand. The first phase of privatization--"de-nationalization" of the banking and insurance sector--is virtually complete. The state presence is now concentrated in oil refining, shipbuilding, steel, cement, basic chemical products, and public utilities such as telecommunications and energy. The second phase of privatization will focus on parastatals in many of these areas.Unemployment has become a greater problem in recent years. The 1993 recession and deepening structural change in agriculture and industry caused unemployment to increase from 4.1% in 1992 to 6.8% in 1994. This is still low compared to the EU average of 10.8% and is expected to come down as the economy strengthens in 1995. Nevertheless, the concern remains that unemployment may settle at a higher rate in the coming years as economic change and international competition eliminate lower-skilled jobs.Real wages are flexible--contractual wages have declined in recent years in both nominal and real terms--but high social costs and severance make labor resemble a fixed rather than a variable cost in many instances, slowing the recovery in employment.GOVERNMENTPortugal's April 25, 1976, constitution reflected the country's 1974-76 move from authoritarian rule to provisional military government to a parliamentary democracy with some initial communist and left-wing influence. The 1976 constitution, which defined Portugal as a "Republic . . . engaged in the formation of a classless society," was revised in 1982 and  in 1989.The 1982 revision placed the military under strict civilian control, trimmed the powers of the president, and abolished the Revolutionary Council (a non-elected committee with legislative veto powers). The 1989 revision eliminated much of the remaining Marxist rhetoric of the original document, abolished the communist-inspired "agrarian reform," and laid the groundwork for further privatization of nationalized firms and the government-owned communications media.The constitution provides for progressive administrative decentralization and calls for future reorganization on a regional basis. The Azores and Madeira Islands have constitutionally mandated autonomous status: A regional autonomy statute promulgated in 1980 established the Government of the Autonomous Region of the Azores, and the Government of the Autonomous Region of Madeira operates under a provisional autonomy statute in effect since 1976. Apart from the Azores and Madeira, the country is divided into 18 districts, each headed by a governor appointed by the Minister of Internal Administration. Macau--a dependency which will revert to Chinese sovereignty in 1999--is headed by a presidentially nominated governor general.The four main organs of the national government are the presidency, the prime minister and Council of Ministers (the government), the Assembly of the Republic (parliament), and the courts.The president, elected to a five-year term by direct, universal suffrage, is also commander-in-chief of the armed forces. Presidential powers include appointing the prime minister and Council of Ministers (in which the president must be guided by the assembly election results), dismissing the prime minister, dissolving the assembly to call early elections, vetoing legislation (which may be overridden by the assembly), and declaring states of war or siege.The Council of State, an advisory body to the president, is composed of the incumbents of six senior civilian offices, any former presidents elected under the 1976 constitution, five members chosen by the assembly, and five chosen by the president himself.The government is headed by the presidentially appointed prime minister, who names the Council of Ministers. A new government is required to define the broad outline of its policy in a program and present it to the assembly for a mandatory period of debate. Failure of the assembly to reject the program by a majority of deputies confirms the government in office.The Assembly of the Republic is a unicameral body composed of up to 235 deputies. Elected by universal suffrage according to a system of proportional representation, deputies serve terms of office of four years, unless the president dissolves the assembly and calls for new elections.The national Supreme Court is the court of last appeal. Military, administrative, and fiscal courts are designated as separate court categories. A nine-member Constitutional Tribunal reviews the constitutionality of legislation.Current AdministrationThe most recent presidential elections were held in January 1991. Mario Soares of the Socialist Party--first elected President in 1986--was re-elected in a landslide victory, garnering a full 70% of the popular vote. The October 1991 general election produced a victory for Anibal Cavaco Silva's Social Democratic Party, which received just over 50% of the popular vote.Prime Minister Cavaco Silva--now in his second four-year term--has been committed to privatizing and modernizing the economy. His government and the Socialist Party have cooperated over the years to encourage privatization of public sector enterprise. The Cavaco Silva government has implemented economic and social reforms designed to help Portugal compete with other European nations. General elections are scheduled for October 1995 and presidential elections for February 1996.Principal Government Officials President of the Portuguese Republic--Mario Soares Prime Minister--Anibal Cavaco SilvaAmbassador to the United States--Fernando Antonio Andresen GuimaresPortugal maintains an embassy in the United States at 2125 Kalorama Road NW, Washington, DC 20008 (tel. [phone]); consulates general in New York City, Boston, and San Francisco; consulates in Providence, RI; Newark, NJ; and New Bedford, MA; and honorary consulates in Honolulu, Los Angeles, Houston, New Orleans, Chicago, Philadelphia, Miami, Puerto Rico, and Waterbury, CT. The Portuguese National Tourist Office in the United States is located at 548 Fifth Avenue, New York, NY 10036 (tel: [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of Public Communication  --  Washington, DC  --  August 1995  --  Managing Editor:  Peter A. Knecht  --  Editor:  Marilyn J. BremnerDepartment of State Publication 8074  --  Background Notes series  --  This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC  20402.  (###)</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES: POLAND (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSAUGUST 1994Official Name:  Republic of PolandFOREIGN  RELATIONSPoland's primary foreign policy goal is integration into Westernsecurity and economic institutions, above all NATO and the EuropeanUnion (EU).  Poland seeks, through active engagement in the Partnershipfor Peace, to work toward full NATO membership.  An associationagreement which Poland signed in 1991 with the EU came into effect inFebruary 1994 and provides a framework for increasing integration.Poland applied for full EU membership in April 1994; it hopes to achievemembership before the year 2000.  In May 1994, Poland became an"Associate Partner" in the EU's defense structure, the Western EuropeanUnion.Developments since 1989 have radically altered regional politicalboundaries.  Poland has been active in regional diplomacy, as itsleaders from across the political spectrum stress the need for equalityin relations and Poland's independence and non-association with anyother state.  Poland has signed friendship treaties with all of itsneighbors.  The last was concluded with Lithuania in May 1994.U.S.-POLISH RELATIONSThe United States established diplomatic relations with the newly formedPolish Republic in April 1919.After Gomulka came to power in 1956, Poland appeared ready to followpolicies of increased internal liberalization and greater autonomy inforeign affairs.  Consequently, relations with the United States beganto improve.  However, during the 1960s, erosion of internalliberalization and reversion to a policy of full and unquestioningsupport for Soviet foreign policy objectives caused those relations tostagnate.  In 1968-69, an anti-Semitic campaign in Poland contributed toa further deterioration.The atmosphere for U.S.-Polish relations improved significantly afterGierek succeeded Gomulka as First Secretary of the Communist Party, andthe new Polish leadership expressed its interest in improving relationswith the United States.  President Nixon visited Warsaw in 1972 andsigned a consular agreement.  Visits to the United States later thatyear by the Polish Foreign Minister and the Minister of Foreign Tradeled to the Polish Government's decision to settle the question ofdefaulted pre-World War II bonds with American bondholders.Edward Gierek visited the United States in October 1974.  This visit,the first by a Polish leader, signaled significant improvements in U.S.-Polish relations.  During this period, several important agreements wereconcluded to promote cooperation in science and technology, healthresearch, commerce, and other areas.  Further improvements werereflected in visits to Poland by President Ford (1975) and PresidentCarter (1977).The birth of Solidarity in 1980 raised the hope that progress would bemade in Poland's external relations as well as in its domesticdevelopment.  U.S. policy throughout the Solidarity period had twogoals:  to encourage greater respect for human rights and individualfreedom, while carefully avoiding interference in Poland's internalaffairs.  Toward this end, for example, the U.S. Government provided atotal of $765 million in agricultural assistance during 1981.In response to the 1981 imposition  of martial law, President Reaganintroduced a number of sanctions against the Polish regime, includingsuspending trade credits and food aid, refusing to negotiate therescheduling of Poland's debt, and restricting the export of advancedtechnology to Poland.  In October 1982, the U.S. suspended most-favored-nation (MFN) status for Poland in response to the Polish Government'sdecision to ban Solidarity.The United States responded to the gradual human rights improvements in1983-84 by easing the sanctions and opening a dialogue with Poland.After the amnesty for political prisoners was declared in September1986, the United States began a re-engagement with Poland which led tothe lifting of sanctions in February 1987, as President Reagan restoredPoland's MFN tariff status.  In June 1987, the United States renewedparticipation in the Poznan International Fair.  In 1988, the U.S. andPoland agreed to upgrade their diplomatic relations, and ambassadorswere exchanged.President Bush, who had visited Poland as Vice President in 1987, paid astate visit to Poland in July 1989, shortly after the parliamentaryelections in which Solidarity candidates scored an overwhelming victory.With the formation in September 1989 of a government dominated bySolidarity, relations between the U.S. and Poland entered a new phase.Following Solidarity leader Lech Walesa's visit to the United States inNovember 1989, the Congress passed the Support for East EuropeanDemocracy (SEED) Act, which authorized a $928 million assistance programfor Poland and Hungary.  Key provisions of the act were a $200 millioncontribution to the $1 billion international fund to stabilize Poland'scurrency and a $240 million grant to create an enterprise fund.  Theseand other SEED programs were designed to support the Polish Government'seconomic reform program and the country's  rapid transition to a freemarket economy.Numerous high-level visits since 1989 reflect a deepening of bilateralrelations.  President Bush visited Poland again in 1992; Vice PresidentGore attended the commemoration of the 50th anniversary of the WarsawGhetto uprising in 1993 and of the 50th anniversary of the Warsawuprising in August 1994.  President Clinton visited Warsaw in July 1994for meetings with President Walesa and Prime Minister Pawlak.  While inPoland, the President announced a package of incentives designed topromote continued economic growth, trade, and investment; and to helpPoland cope with the human and social problems arising from systematictransformation.  The package included a $65 million Poland Partnerscapital investment fund; a $75 million privatization initiative tosupport Poland's Mass Privatization Program; a Polish Re-employmentFund; new law enforcement training; assistance in social sectorrestructuring; assistance to stimulate housing construction; and amicro-lending program.  President Walesa visited the United States in1991 and 1993.Poland continues to be the largest recipient of U.S. assistance toCentral and Eastern Europe.  The U.S. has contributed over $4.6 billionin debt relief.  The U.S. also has an active, broad-based, military-to-military security assistance and contact program with Poland.Commercial ties are as vibrant as political ties.  American firms arethe most active foreign investors in Poland.  The American Chamber ofCommerce in Warsaw has grown rapidly, as American businesses areattracted by Poland's economic growth and improving business climate.Post-communist political parties, which won the September 1993parliamentary elections, have continued free market reforms and supportPoland's integration into NATO and the European Union.  A smoothtransition after the 1993 elections dominated by post-communistsdemonstrated a commitment to democratic norms by all sides, which bodeswill for continued close cooperation between Poland and the UnitedStates.Principal U.S. Embassy OfficialsAmbassador--Nicholas A. ReyDeputy Chief of Mission--James HooperPolitical Counselor--Stephen D. MullEconomic Counselor--J. Aubrey HooksCommercial Counselor--Joan EdwardsPress and Cultural Affairs Counselor--Richard VirdenConsul General--David HopperPrincipal Officer, Poznan--Janet WeberPrincipal Officer, Krakow--Mary MarshallThe U.S. embassy in Poland is located at Aleje Ujazdowskie 29/31, Warsaw(tel. [phone]).  The consulate at Poznan is at Ulica Chopina 4 (tel.595-86, 595-87); at Krakow, Ulica Stolarska 9 (tel. 577-93, 597-64).TRAVEL NOTESEntry Requirements:  U.S. citizens do not need visas for visits of 90days or fewer.Tourist Attractions:  Poland's major tourist attractions include thewinter resort area of Zakopane in the southeastern mountains; themedieval city of Krakow, including Wawel Castle; the Nazi death camp atOswiecim (Auschwitz; the magnificently restored Teutonic fortress ofMalbork; and the reconstructed portions of Gdansk and Szczecin (twoHanseatic port cities) in the north.  Attractions in Warsaw area includeChopin's birthplace at Zelazowa Wola, the Wilanow and Lazienki palaces,and the "Old Town" and Royal Castle.Polish National Tourist Office Information Center:  333 N. MichiganAve., Chicago, IL  60601, Tel.: [phone], Fax: [phone].(###)Published by the United States Department of State --  Bureau of PublicAffairs --  Office of Public Communication --  Washington, DC --Managing Editor:  Peter A. Knecht  Editor:  Anita StockmanAugust 1994 --  Department of State Publication 8020 --  BackgroundNotes Series --  This material is in the public domain and may bereprinted without permission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. Government PrintingOffice, Washington, DC  20402.(###)</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES: POLANDPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSAUGUST 1994Official Name:  Republic of PolandPROFILEGeographyArea:  312,680 sq. km. (120,725 sq. mi.); about the size of New Mexico.Cities (1992):  Capital--Warsaw (pop. 1.6 million).  Other cities--Lodz(838,000), Krakow (744,000), Wroclaw (641,000), Poznan (583,000), Gdansk(462,000).Terrain:  Flat plain, except mountains along southern border.Climate:  Temperate continental.PeopleNationality:  Noun--Pole(s).  Adjective--Polish.Population:  38.5 million.Annual growth rate:  Negligible.Ethnic groups:  Polish 97%, German, Ukrainian, Belorussian, Lithuanian.Religions:  Roman Catholic 95%, Eastern Orthodox, Uniate, Protestant.Language:  Polish.Literacy:  98%.Health (1989):  Infant mortality rate--14/1,000.  Life expectancy--males66 yrs., females 75 yrs.Work force:  15.4 million.  Industry and construction--32%.Agriculture--29%.  Government and other--21%.  Trade and business--18%.GovernmentType:  Republic.Constitution:  Poland operates under a temporary constitution (the"Little Constitution") adopted on October 17, 1992, pending the passageof a more permanent document.  The constitution allows for limitedchecks and balances among the president, prime minister, and parliament.Judicial review is strictly limited.Branches:  Executive--head of state (president), head of government(prime minister).  Legislative--bicameral National Assembly (lowerhouse--Sejm, upper house--Senate).  Judicial--Supreme Court, provincialand local courts, constitutional tribunal.Administrative subdivisions:  49 provinces (voivodships).Political parties:  Democratic Left Alliance, Polish Peasant Party,Democratic Union, Union of Freedom, Union of Labor, Confederation for anIndependent Poland, and Non-partisan Bloc in Support of Reform.Suffrage:  Universal at 18.Flag:  Upper half white; lower red.EconomyGDP (1993):  $87 billion.Per capita GDP (1993):  $2,250.Growth rate (1993 est.):  4%.Natural resources:  Coal, copper, sulfur, natural gas, silver, lead,salt.Agriculture:  Products--grains, livestock, potatoes, sugar beets,oilseed.Industry:  Types--machine building, iron and steel, mining,shipbuilding, automobiles, textiles and apparel, chemicals, foodprocessing, glass, beverages.Trade (1993):  Exports--$15 billion:  ships, coal, textiles and apparel,copper, steel.  Imports--$17 billion:  oil and gas, pharmaceuticals,paper products, textiles and textile fibers, machinery.PEOPLEPoland today is ethnically almost homogeneous (98% Polish), in contrastwith the pre-World War II period, when there were significant ethnicminorities--4.5 million Ukrainians, 3 million Jews, 1 millionBelorussians, and 800,000 Germans.  The majority of the Jews weremurdered during the German occupation in World War II, and many othersemigrated in the succeeding years.  Most Germans left Poland at the endof the war, while many Ukrainians and Belorussians lived in territoriesincorporated into the U.S.S.R.  Small Ukrainian, Belorussian, Slovakian,and Lithuanian minorities reside along the borders, and a Germanminority is concentrated near the southwest city of Opole.HISTORYPoland's written history begins with the reign of Mieszko I, whoaccepted Christianity for himself and his kingdom in AD 966.  The Polishstate reached its zenith under the Jagiellonian dynasty in the yearsfollowing the union with Lithuania in 1386 and the subsequent defeat ofthe Teutonic Knights at Grunwald in 1410.  The monarchy survived manyupheavals but eventually went into a decline which ended with the finalpartition of Poland by Prussia, Russia, and Austria in 1795.Independence for Poland was one of the 14 points enunciated by PresidentWoodrow Wilson during World War I.  Many Polish-Americans enlisted inthe military services to further this aim, and the United States workedat the postwar conference to ensure its implementation.However, the Poles were largely responsible for achieving their ownindependence in 1918.  Authoritarian rule predominated for most of theperiod before World War II.On August 23, 1939, Germany and the Soviet Union signed the Ribbentrop-Molotov non-aggression pact, which secretly provided for thedismemberment of Poland into Nazi and Soviet-controlled zones.  OnSeptember 1, 1939, Hitler ordered his troops into Poland.  On September17, Soviet troops invaded and then occupied eastern Poland under theterms of this agreement.  After Germany invaded the Soviet Union in June1941, Poland was completely occupied by German troops.The Poles formed an underground resistance movement and a government-in-exile, first in Paris and later in London, which was recognized by theSoviet Union.  During World War II, 400,000 Poles fought under Sovietcommand, and 200,000 went into combat on western fronts in units loyalto the Polish government-in-exile.In April 1943, the Soviet Union broke relations with the Polishgovernment-in-exile, after the German military announced that they haddiscovered mass graves of murdered Polish army officers at Katyn, in theU.S.S.R.  (The Soviets claimed that the Poles had insulted them byrequesting that the Red Cross investigate these reports.)  In July 1944,the Soviet Red Army entered Poland and established a communist-controlled "Polish Committee of National Liberation" at Lublin.Resistance against the Nazis in Warsaw, including uprisings by Jews inthe Warsaw ghetto and by the Polish underground, was brutallysuppressed.  As the Germans retreated in January 1945, they leveled thecity.During the war, about 6 million Poles were killed, and 2.5 million weredeported to Germany for forced labor.  More than 3 million Jews (all butabout 100,000 of the Jewish population) were killed in death camps likethose at Oswiecim (Auschwitz), Treblinka, and Majdanek.Following the Yalta Conference of early 1945, a Polish ProvisionalGovernment of National Unity was formed in June 1945; the U.S.recognized it the next month.  Although the Yalta agreement called forfree elections, those held in January 1947 were controlled by theCommunist Party.  The communists then established a regime entirelyunder their domination.Communist Party DominationIn October 1956, after the 20th ("de-Stalinization") Soviet PartyCongress at Moscow and riots by workers in Poznan, there was a shake-upin the communist regime.  While retaining most traditional communisteconomic and social aims, the regime of First Secretary WladyslawGomulka liberalized Polish internal life.In 1968, a reverse trend set in when student demonstrations were sup-pressed and an "anti-Zionist" campaign initially directed againstGomulka supporters within the party eventually led to the emigration ofmuch of Poland's remaining Jewish population.In December 1970, disturbances and strikes in the port cities of Gdansk,Gdynia, and Szczecin, triggered by a price increase for essentialconsumer goods, reflected deep dissatisfaction with living and workingconditions in the country.  Edward Gierek replaced Gomulka as firstsecretary.Fueled by large infusions of Western credit, Poland's economic growthrate was one of the world's highest during the first half of the 1970s.But much of the borrowed capital was misspent, and the centrally plannedeconomy was unable to use the new resources effectively.  The growingdebt burden became insupportable in the late 1970s, and economic growthhad become negative by 1979.In October 1978, the Bishop of Krakow, Cardinal Karol Wojtyla, becamePope John Paul II, head of the Roman Catholic Church.  Polish Catholicsrejoiced at the elevation of a Pole to the papacy and greeted his June1979 visit to Poland with an outpouring of emotion.In July 1980, with the Polish foreign debt at more than $20 billion, thegovernment made another attempt to increase meat prices.  A chainreaction of strikes virtually paralyzed the Baltic coast by the end ofAugust and, for the first time, closed most coal mines in Silesia.Poland was entering into an extended crisis which would change thecourse of its future development.The Solidarity MovementOn August 31, 1980, workers at the Lenin Shipyard in Gdansk, led by anelectrician named Lech Walesa, signed a 21-point agreement with thegovernment which ended their strike.  Similar agreements were signed atSzczecin and in Silesia.  The key provision of these agreements was theguarantee of the workers' right to form independent trade unions and theright to strike.  After the Gdansk agreement was signed, a new nationalunion movement--"Solidarity"--swept Poland.The discontent underlying the strikes was intensified by revelations ofwide-spread corruption and mismanagement within the Polish state andparty leadership.  In September 1980, Gierek was replaced by StanislawKania as first secretary.Alarmed by the rapid deterioration of the PZPR's authority following theGdansk agreement, the Soviet Union proceeded with a massive militarybuildup along Poland's border in December 1980.  In February 1981,Defense Minister Gen. Wojciech Jaruzelski assumed the position of  PrimeMinister as well, and in October 1981, he also was named party firstsecretary.  At the first Solidarity national congress in September-October 1981, Lech Walesa was elected national chairman of the union.On December 12-13, the regime declared martial law, under which the armyand special riot police were used to crush the union.  Virtually allSolidarity leaders and many affiliated intellectuals were arrested ordetained.The United States and other Western countries responded to martial lawby imposing economic sanctions against the Polish regime and against theSoviet Union.  Unrest in Poland continued for several years thereafter.In a series of slow, uneven steps, the Polish regime rescinded martiallaw.  In December 1982, martial law was suspended, and a small number ofpolitical prisoners were released.  Although martial law formally endedin July 1983 and a general amnesty was enacted, several hundredpolitical prisoners remained in jail.In July 1984, another general amnesty was declared, and 2 years later,the government had released nearly all political prisoners.  Theauthorities continued, however, to harass dissidents and Solidarityactivists.  Solidarity remained proscribed and its publications  banned.Independent publications were censored.Roundtable Talks and ElectionsThe government's inability to forestall Poland's economic decline led towaves of strikes across the country in April, May, and August 1988.  Inan attempt to take control of the situation, the government gave defacto recognition to Solidarity, and Interior Minister Kiszczak begantalks with Lech Walesa on August 31.  These talks broke off in October,but a new series--the "roundtable" talks-- began in February 1989.These talks produced an agreement in April for partly open NationalAssembly  elections.  The June election produced a Sejm (lower house),in which one-third of the seats went to communists and one-third went tothe two parties which had hitherto been their coalition partners.  Theremaining one-third of the seats in the Sejm and all those in the Senatewere freely contested; virtually all of these were won by candidatessupported by Solidarity.The failure of the communists at the polls produced a political crisis.The roundtable agreement called for a communist president, but on July19, the National Assembly, with the support of some Solidarity deputies,elected Gen. Jaruzelski to that office.  Two attempts by the communiststo form governments failed, however.On August 19, President Jaruzelski asked journalist/Solidarity activistTadeusz Mazowiecki to form a government; on September 12, the Sejm votedapproval of Prime Minister Mazowiecki and his cabinet.  For the firsttime in more than 40 years, Poland had a government led and dominated bynon-communists.In December 1989, the Sejm considered the government's reform program torapidly transform the Polish economy from centrally planned to freemarket, amended the constitution to eliminate references to the "leadingrole" of the Communist Party, and renamed the country the "Republic ofPoland."The Polish United Workers' (Communist) Party dissolved itself in January1990, creating in its place a new party, Social Democracy of theRepublic of Poland.  Most of the property of the former Communist Partywas turned over to the state.The May 1990 local elections were entirely free.  Candidates supportedby Solidarity's Citizens Committees won most of the races theycontested, although voter turnout was little over 40%.  The cabinet wasreshuffled in July 1990; the national defense and interior affairsministers--hold-overs from the previous communist government--were amongthose replaced.In October 1990, the constitution was amended to curtail the term ofPresident Jaruzelski.  In December, Lech Walesa became the firstpopularly elected President of Poland.Poland in the 1990sPoland in the early 1990s made great progress toward achieving a fullydemocratic government and a market economy.  Free and fair electionswere held for the presidency in November 1990 and for parliament inOctober 1991 and September 1993.  Freedom of speech, religion, assembly,and the press were instituted.  A wide range of political partiesrepresenting the full spectrum of political views were established.In November 1990, Lech Walesa was elected President for a five-yearterm.  From 1991 to 1993, three parliamentary coalitions of post-Solidarity origin parties governed in quick succession, none longer than14 months.  Jan Krzysztof Bielecki, at Walesa's request, formed agovernment and served as its Prime Minister until October 1991.  Hisgovernment continued the Mazowiecki Government's "Big Bang" package ofeconomic reform, which introduced world prices and greatly expanded thescope of private enterprise.Poland held its first free and fair parliamentary elections in October1991.  More than 100 parties participated.  No single party receivedmore than 13% of the total vote.  President Walesa then asked firstBronslaw Geremek--a leader of the Democratic Union--and then JanOlszewski--the candidate of a minority coalition of five parties--toattempt to form a government.  Olszewski succeeded in putting together acoalition government that was ratified by parliament.  After a vote ofno-confidence in June 1992, however, Olszewski and his cabinet wereforced to resign over their efforts to purge alleged former secretpolice informers from political life.Five weeks later, a new minority coalition government, led by PrimeMinister Hanna Suchocka of the Democratic Union, was voted into office.Deep ideological differences caused tension among the coalitionpartners, however, especially when a controversial anti-abortion law waspassed in the Sejm.  The Solidarity Union's decision to withdraw supportfor the Suchocka Government fatally weakened it.  President Walesadissolved the parliament on May 28, 1993, after a vote of no-confidence.The Suchocka Government continued to govern until parliamentaryelections  in September 1993.  These elections took place under a newelectoral law designed to limit the number of small parties inparliament by requiring them to receive at least 5% of the total vote toenter the Sejm.  The Democratic Left Alliance (SLD) received the mostvotes, with 21%, and the Polish Peasant Party (PSL), came in second with15%.  The largest post-Solidarity party, the Democratic Union, came inthird with 11% of the vote.  Most of the small center and right partiesfailed to enter the parliament, as did the Solidarity Union.GOVERNMENT AND POLITICAL CONDITIONSThe current government structure consists of a council of ministers ledby a prime minister, typically chosen from a majority coalition in thebicameral legislature's lower house.  Under the constitution, thepresident must be formally consulted in the appointment of the ministersof foreign affairs, internal affairs, and defense and may technicallyreject any proposed minister.  The president--elected every five years--is head of state.  The judicial branch plays a minor role in decision-making.The parliament, consisting of 460 members of the Sejm and 100 members ofthe Senate, was elected on September 19, 1993, in free and fairelections in which 19 political parties participated.  A 1993 electorallaw stipulated that only parties receiving at least 5% of the total votecould enter parliament; under this law, six parties gainedrepresentation.In October 1993, SLD and PSL formed a government coalition with aparliamentary majority under Prime Minister Waldemar Pawlak.  The PawlakGovernment has maintained generally pro-market economic policies andmade clear its commitment to a democratic political system.Tensions between the parliament and President Walesa were evident earlyin 1994, as both sides took advantage of legal ambiguities to enhancethe power of their respective branches of government.  In April 1994,the two sides called a truce, agreeing to work to resolve theirdifferences during the constitution-drafting process scheduled to beginin May.The parliament's term of office ends in 1997, unless dissolved earlier.Poland's next presidential election is scheduled for December 1995.Along with the parties of Prime Minister Pawlak's ruling coalition, fourother parties are represented in parliament:  the Union of Freedom(formerly the Democratic Union), the Union of Labor (UP), theConfederation for an Independent Poland (KPN), and the Non-partisan Blocin Support of Reform (BBWR).National SecurityPoland's armed forces number 250,000.  Career soldiers make up aboutone-third of the army.  All males are required to serve a 12-monthperiod of basic military service.Poland is reducing armaments to levels agreed upon in the Treaty onConventional Armed Forces in Europe (CFE), signed in Paris in November1990.  Warsaw Pact members met early in 1991 and disbanded theorganization on March 31.  Polish officials have begun to restructurethe military to increase civilian control and de-politicize its ranks.There are no Russian troops remaining on Polish territory, with theexception of a small contingent at Legnica, which is tasked tofacilitate the transit of Russian troops from the former GermanDemocratic Republic through Poland.  The remaining Russian contingent isscheduled to leave by the end of 1994.The Polish military is in the process of modernizing, restructuring, andrelocating.  It is looking to the West for technology and co-productionto upgrade its armaments and procedures, hoping to minimize its formerdependence on the states of the former Soviet Union.  The military isrestructuring on the Western corps-brigade model and relocating itsforces (primarily from west to east) to give it a more balanced defensecapability.  A high priority for Poland is to integrate its militaryinto NATO.Principal Government OfficialsPresident--Lech WalesaPrime Minister--Waldemar PawlakMinister of Foreign Affairs--Andrzej OlechowskiAmbassador to the U.S.--Jerzy KozminskiPoland maintains an embassy in the United States at 2640 16th St. NW,Washington, DC 20009 (tel. [phone]/3802); the consular annexis at 2224 Wyoming Ave. NW, Washington, DC 20008 (tel. [phone]).Poland has consulates in Chicago,  New York City,  and Los Angeles.ECONOMYPoland underwent a profound transformation as the government introduceda free market system to replace the centrally planned economy.  The eco-nomic reform program introduced in 1990 stopped hyperinflation,stabilized the currency, and brought an end to chronic shortages ofconsumer goods.  However, the economy also suffered a recession, withsharp declines in industrial production and real incomes, and steadilyincreasing unemployment rates.  In May 1992, industrial production endedits decline and began a steady recovery, but unemployment has continuedto rise as state-owned enterprises are restructured and privatized toadapt to the new free-market economy.The U.S. and other Western countries have been supporting the growth ofa free enterprise economy by providing direct economic aid,restructuring Poland's foreign debt, and encouraging private foreigninvestment.AgriculturePolish agriculture employs one-third of the work force but contributesonly 8% to the gross domestic product (GDP).  Unlike the industrialsector, Poland's agricultural sector remained largely in private handsduring the decades of communist rule.  Private farms occupy three-fourths of the land and account for about four-fifths of agriculturalemploy-ment and production.  These 2.8 million private farms, however,are small and often fragmented.  In contrast, the roughly 5,000 statefarms, established under communist rule, average nearly 900 hectareseach.  The government is currently privatizing state farms.Production of wheat, feed-grains, vegetable oils, and protein meals isinsufficient to meet domestic demand.  However, Poland is the leadingproducer in Eastern Europe of potatoes, rapeseed, sugar beets, grains,hogs, and cattle.  Attempts to increase domestic feed grain productionare hampered by the short growing season, poor soil, and the small sizeof farms.While the government's economic reform has generally resulted in sharpprice increases to the consumer, the costs to farmers for their inputshave risen faster than the prices they can demand for their products.State monopolies still control agricultural procurement, processing, anddistribution.  In 1992, Polish agriculture was hit by the worst droughtof the century.Implementation of the government's privatization program in theagricultual sector--specifically the breakup of the state monopolies inprocurement and distribution--will help bring the costs of inputs andproduction into balance, but the small size and often fragmented natureof land holdings and the large portion of the population engaged infarming will continue to limit profit-ability.IndustryBefore World War II, Poland's industrial base was concentrated in thecoal, textile, chemical, machinery, iron, and steel sectors.  Today itextends to fertilizers, petrochemicals, machine tools, electricalmachinery, electronics, and shipbuilding.Poland's industrial base suffered greatly during World War II, and manyresources were directed toward reconstruction.  The communist economicsystem imposed on Poland in the late 1940s created large and unwieldyeconomic structures operated under tight central command.  In part,because of this systemic rigidity, the economy performed poorly even incomparison with other economies in Eastern Europe.In 1989, the Mazowiecki Government began a comprehensive reform programto replace the centralized command economy with a free market system.Economic Reform ProgramFour years into its transition to a market economy, Poland has becomethe first former centrally planned economy in Central and Eastern Europeto end its recession and return to growth.  Poland's transition-inducedrecession bottomed out in the second quarter of 1991, and for the lasttwo years the Polish economy has enjoyed an accelerated recovery.However, incomes remain low and unemployment high (nearly 16% as ofApril 1994) which has strained the political consensus for continuedreform.  The private sector now accounts for more than half of grossdomestic product and employs some 60% of the work force.The sweeping economic reforms introduced in 1989 removed price controls,eliminated subsidies to industry, opened Poland's markets tointernational competition, and imposed strict budgetary and monetarydiscipline.  These reforms have achieved impressive results in reducinginflation--from almost 600% in 1990 to 35% in 1993--and in bringingbudget deficits under control.  Poland's GDP grew 2.6% in 1992 and morethan 4% in 1993, making Poland one of the fastest growing economies inEurope.  Four years of successful macroeconomic stabilization policieshave greatly improved Poland's standing in the international financialcommunity.In March 1994, Poland successfully completed a standby arrangement withthe International Monetary Fund (IMF) which required complying withquarterly performance criteria in five key areas of fiscal and monetarypolicy.  Foreign investment flows also are increasing.  However, therestructuring of industry to adapt to the new conditions of a marketeconomy, a necessary accompaniment to macroeconomic stabilization, hasproceeded more slowly than expected.  Many state-owned enterprisescontinue to operate at a loss.  Efforts to privatize them haveencountered numerous snags, including worker apprehensions about largejob losses and management fears of bankruptcy.  Government budgetdeficits have been brought under control, but only by means of painfulspending cuts in sensitive areas such as education, health care, andpublic safety.   Meanwhile, the burden on the budget for government debtservicing and for subsidies to the Social Insurance Fund has mushroomed.The government's 1994 budget received a favorable evaluation by the IMFand bolstered international confidence in Poland's long-term economicprospects.  It was criticized as unnecessarily austere by oppositiongroups--including the Solidarity Trade Union--and by some supporters ofthe government parties.  The government's economic reform programs arelikely to face continued criticism from groups in society who feel theyhave not received their fair share of the benefits of the transition toa market economy.Foreign TradePoland's current account was in surplus in 1990 but fell to a deficit of$1.4 billion in 1991, due largely to the collapse of trade with theSoviet Union.  The current account recovered in 1992 to a deficit ofonly $269 million, as exporters found new Western markets, but slippedagain in 1993 to a deficit of $2.3 billion, as the recovering Polisheconomy created stronger demand for imports while recession in WesternEurope weakened demand for Polish exports.Poland's external debt is about $45 billion, and its debt service ratio(the ratio of hard debt service obligations to hard currency earnings)is one of the world's highest.  In 1991, most of Poland's creditorgovernments agreed to reduce Poland's official debt by 50%.  More than$13 billion is owed to commercial banks.  In March 1994, a preliminaryagreement was reached with major banks to reduce Poland's commercialdebt by a similar 40%-50%.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: PERUPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name: Republic of PeruPROFILEGeographyArea:  28 million sq. km. (496,222 sq. mi.); three times larger thanCalifornia.Cities:  Capital--Lima/Callao metropolitan area (pop. 7 million, 1993).Other cities--Arequipa, Chiclayo, Cusco, Huancayo, Trujillo, Piura,Iquitos, Chimbote.Terrain:  Western coastal plains, central rugged mountains (Andes),eastern lowlands with tropical jungle forests.  Climate:  Coastal area,arid and mild; Andes, temperate to frigid; eastern lowlands, tropicallywarm and humid.PeopleNationality:  Noun and adjective--Peruvian(s).Population (1994 est.):  22.9 million(69% urban).Annual growth rate (1994 est.):  2.0%.Ethnic groups:  Indian 45%; mestizo 37%; Caucasians 15%; black, Asian,and other 3%.Religion:  Roman Catholic.Languages:  Spanish, Quechua, and Aymara.Education:  Years compulsory--11.  Literacy--About 98%.Health:  Infant mortality rate--52/1,000 Life expectancy--65 yrs.Work force:  8.4 million.  Agriculture--35%.  Industry--10%.  Mining--12%.  Other services--27%.  Commerce--16%.GovernmentType:  Constitutional republic.Independence:  1821.Constitution:  December 1993.Branches:  Executive--president, two vice presidents, Council ofMinisters.  Legislative--unicameral Congress.  Judicial--Supreme Courtand lower courts, Tribunal of Constitutional Guarantees (authorizedunder 1993 constitution but not yet established).Administrative subdivisions:  12 regions, 24 departments, 1constitutional province.Political parties:  Change 90/New Majority, Popular Action (AP),American Popular Revolutionary Alliance (APRA), Popular Christian Party(PPC), Democratic Left Movement (MDI).Suffrage:  Universal over 18; compulsory until age 70 (members of themilitary may not vote).PEOPLEPeru's ethnic structure is primarily made up of Indians, mestizos, andCaucasians. Some Peruvians also are of African descent, and Lima andother coastal cities have Chinese and Japanese communities.  Mestizosform a cultural bridge between the Hispanic-European and Indiansocieties.  Caucasians tend to be culturally homogeneous throughout thecountry, whereas the mestizos and Indians show greater culturaldiversity.  Due to education, economic development, and the movementfrom rural to urban areas, however, a more homogeneous national cultureis developing, especially in major cities.Peru has two official languages--Spanish and the foremost indigenouslanguage, Quechua.  Spanish is used by the government and the media, andin education and commerce.  Indians who live in the Andean highlandsspeak Quechua and Aymara and are ethnically distinct from Indians wholive in the jungle and on the eastern side of the Andes.  The lattergroups speak various languages and dialects.  Some of these tribes stilllive much as they have since prehistoric times, while others have beenalmost completely assimilated into the mestizo-Hispanic culture.EducationUnder the 1993 constitution, primary education is free and compulsory.The system is highly centralized, with the Minister of Educationappointing all public school teachers.  Eighty-four percent of Peru'sstudents attend public schools at all levels.  School enrollment hasbeen rising sharply for years, due to a widening educational effort bythe government and a growing school-age population.  Illiteracy is morethan 70% in isolated, mountainous areas and is estimated at 28% in urbanareas.  Elementary and secondary school enrollment is about 5 million.University enrollment is more than 250,000.CultureThe relationship between Hispanic and Indian cultures determines much ofthe nation's cultural expression.  During pre-Columbian times, Peru wasone of the major centers of artistic expression in America.  Pre-Incacultures, such as Chavin, Paracas, Nazca, Chimu, and Tiahuanaco,developed high-quality pottery, textiles, and sculpture.  Drawing uponearlier cultures, the Incas continued to maintain these crafts but madeeven more impressive achievements in architecture.  The great fortressof Machu Picchu and the buildings at Cusco are excellent examples ofInca architectural design.Peru has passed through various intellectual stages--from colonialHispanic culture to European Romanticism after independence.  The early20th century brought indigenismo, expressed in a new awareness of Indianculture.  Since World War II, Peruvian writers, artists, andintellectuals have participated in worldwide intellectual and artisticmovements, drawing especially on U.S. and European trends.During the colonial period, Spanish baroque fused with the rich Incatradition to produce mestizo or creole art.  The Peruvian (Cusco) schoolfollowed the Spanish baroque tradition with influence from the Italian,Flemish, and French schools.Pancho Fierro made a distinctive contribution with his portrayals oftypical events, manners, and customs of mid-19th century Peru.Francisco Lazo, forerunner of the indigenous school of painters, alsoachieved fame for his portraits, as did others.  Peru's 20th-century artis widely known for its extraordinary variety of styles and originality.In the 1930s, a group of Peruvian artists reacted against thelimitations of the indigenous styles and adopted a more internationalstyle.  Peruvian sculpture has followed the same trend.HISTORYWhen the Spanish landed in 1531, Peru's territory was the nucleus of thehighly developed Inca civilization.  Centered at Cusco, the Inca Empireextended over a vast region from northern Ecuador to central Chile.  Insearch of Inca wealth, the Spanish explorer Francisco Pizarro arrived inthe territory after the Incas had fought a debilitating civil war andeasily conquered the weakened people.  The Inca capital at Cusco hadfallen by 1533, and the Spanish had consolidated control by 1542.  Goldand silver from the Andes enriched the conquerors, and Peru became theprincipal source of Spanish wealth and power in South America.Pizarro founded Lima in 1535.  The viceroyalty established at Lima in1542 initially had jurisdiction over all of South America exceptPortuguese Brazil.  By the time of the wars of independence (1820-24),Lima had become the most distinguished and aristocratic colonial capitaland the chief Spanish stronghold in America.Peru's independence movement was led by Jose de San Martin of Argentinaand Simon Bolivar of Venezuela.  San Martin proclaimed Peruvianindependence from Spain on July 28, 1821.  Emancipation was completed inDecember 1824, when Gen. Antonio Jose de Sucre defeated the Spanishtroops at Ayacucho, ending Spanish rule in South America.  Spain madefutile attempts to regain its former colonies, but in 1879 it finallyrecognized Peru's independence.After independence, Peru and its neighbors engaged in intermittentterritorial disputes.  Chile's victory over Peru and Bolivia in the Warof the Pacific (1879-83) resulted in a territorial settlement.Following a clash between Peru and Ecuador in 1941, the Rio Protocol--ofwhich the United States is one of four guarantors--sought to establishthe boundary between the two countries.  (Continuing boundarydisagreement last led to a brief armed conflict in early 1981.)The military has been prominent in Peruvian history.  Coups haverepeatedly interrupted civilian constitutional government.  The mostrecent period of military rule (1968-80) began when Gen. Juan VelascoAlvarado overthrew elected President Fernando Belaunde Terry of thePopular Action Party (AP).  As part of what has been called the "firstphase" of the military government's nationalist program, Velascoundertook an extensive agrarian reform program and nationalized thefishmeal industry, some petroleum companies, and several banks andmining firms.Because of Velasco's economic mismanagement and deteriorating health, hewas replaced by Gen. Francisco Morales Bermudez Cerruti in 1975.Morales Bermudez moved the revolution into a more pragmatic "secondphase," tempering the authoritarian abuses of the first phase andbeginning the task of restoring the country's economy.  Morales Bermudezpresided over the return to civilian government in accordance with a newconstitution drawn up in 1979.  In the May 1980 elections, PresidentBelaunde Terry was returned to office by an impressive plurality.Nagging economic problems left over from the military governmentpersisted, worsened by a period of unusual weather in 1982-83, whichcaused widespread flooding in some parts of the country, severe droughtsin others, and decimated the schools of ocean fish that are one of thecountry's major resources. After a promising beginning, Belaunde'spopularity eroded under the stress of inflation, economic hardship, andterrorism.During the 1980s, illegal cultivation of coca was established in largeareas on the eastern Andean slope.  Rural terrorism by Sendero Luminosoand the Tupac Amaru Revolutionary Movement increased during this timeand derived significant financial support from the illegal drugindustry.  The 1983 municipal elections were won largely by oppositionparty candidates. In 1985, the American Popular Revolutionary Alliance(APRA), founded in 1928 by Victor Raul Haya de la Torre, won thepresidential election, bringing Alan Garcia Perez to office. Thetransfer of the presidency from Belaunde to Garcia on July 28, 1985, wasPeru's first exchange of power from one democratically elected leader toanother in 40 years.Extreme economic mismanagement by the Garcia administration led tohyperinflation from 1988 to 1990.  Concerned about the economy, theincreasing terrorist threat from the Sendero Luminoso, and allegationsof official corruption, voters chose a relative unknown, AlbertoFujimori, as president in 1990.GOVERNMENTThe president is popularly elected for a 5-year term; the 1993constitution permits re-election.  The first and second vice presidentsalso are popularly elected but have no constitutional functions unlessthe president is unable to discharge his duties.  Although currentlyvacant, the two vice presidential positions will be filled by thewinning candidates of the April 1995 elections.  The principal executivebody is the Council of Ministers, headed by a prime minister.  The primeminister and the Cabinet are appointed by the president.  Allpresidential decree laws or draft bills sent to Congress must beapproved by the Council of Ministers.The legislative branch consists of a unicameral congress of 80 members;this will increase to 120 members in 1995.  In addition to passing laws,Congress is empowered to approve treaties, authorize government loans,and approve the government budget.  The president has the power toreview legislation but may not formally veto laws passed by Congress.The judicial branch of government is headed by a 16-member Supreme Courtseated in Lima.  The Tribunal of Constitutional Guarantees, a separatejudicial body dissolved by President Fujimori  in April 1992, isexpected to interpret the constitution on matters of individual rights.An attorney general serves as a judicial ombudsman; the 1993constitution calls for the creation of a separate Defender of thePeople.  Superior courts in departmental capitals reviews appeals fromdecisions by lower courts.  Courts of first instance are located inprovincial capitals and are divided into civil, penal, and specialchambers.Peru is divided into 24 departments and the constitutional province ofCallao, the country's chief port, adjacent to Lima.  The departments aresubdivided into provinces, which are composed of districts.  Localauthorities below the departmental level are elected.Principal Government OfficialsPresident--Ing. Alberto FujimoriFirst Vice President--vacantSecond Vice President--vacantMinistersPrime Minister--Efrain Goldenberg SchreiberMinister of the Presidency--Ma. Luisa Federici SotoForeign Minister--Efrain Goldenberg SchreiberEconomy and Finance--Ing. Jorge Camet DickmannInterior--Dr. Juan Briones DavilaJustice--Dr. Fernando Vega Santa GadeaDefense--Gen. Victor Malca VillanuevaEducation--Jorge Trelles MonteroPublic Health--Dr. Jaime Freundt Thurne-OyangurenAgriculture and Food--Ing. Absalon Vasquez VillanuevaLabor--Dr. Augusto Antonioli VasquezTransportation and Communications --Dr. Dante Cordova BlancoEnergy and Mines--Ing. Daniel Hokama T.Fisheries--Ing. Jaime Sobero TairaIndustry, Commerce, Tourism, and Integration--Dra. Liliana Ma.CanaleNovellaAmbassador to the United States--Ricardo LunaPermanent Representative to the United Nations--Fernando GuillenAmbassador to the Organization of American States (OAS)--BeatrizRamacciottiPeru maintains an embassy in the United States at 1700 MassachusettsAvenue NW., Washington, DC  20036 (tel. [phone]).  Peru hasconsulates in New York; Paterson, N.J.; Miami; Chicago; Houston; LosAngeles; and San Francisco.POLITICAL CONDITIONSPresident Fujimori inherited a government which faced an increasinglypowerful insurgency by the Sedero Luminoso; hyperinflation; statisteconomic policies; international isolation; rapidly growing cocaineproduction and trafficking; and a new low in voters' confidence inpolitical institutions.  President Fujimori's economic shock programsharply reduced inflation.  Peru resumed its ties with the internationalfinancial community, reduced trade restrictions, and welcomed foreigninvestment.In April 1992, the President carried out an "auto-coup," dissolvingcongress and regional governments and assuming control over thejudiciary.  There was broad popular support for the coup, whichreflected long frustration with politicians' inefficiency andcorruption.  Operating with a small circle of advisers, including theNational Intelligence Service (SIN), the president ruled by decree law.His intention, frequently stated, was to modernize Peru and endcorruption, drug-trafficking, and terrorism.  Following pressure fromthe Organization of American States and the United States, the Presidentconvened elections for a constituent congress on November 1992.  The OASdeclared that these and the municipal elections held in February 1993were fair.  The government won approval of the new constitution by aslim margin in October 1993.Political parties, such as Accion Popular, did well in the 1993municipal elections.  Opposition and independent politicians areactively preparing for the presidential/congressional elections in 1995.President Fujimori, whose approval rating was in the 60%- plus range inOctober 1994, is campaigning for re-election.President Fujimori continued the increased focus by the police and armyon intelligence and civic action in fighting the SL.  The capture of SLleader Abimael Guzman in September 1992, followed by other captures,significantly damaged the guerrillas.  Guzman called for SL to enterpeace negotiations with the government in 1993.Human rights violations by the security forces dropped considerably inlate 1992, as military authorities regained confidence in theirabilities to subdue terrorism.  President Fujimori has asserted hispersonal authority over the armed forces to an extent almost unequalledin Peruvian history.  The arrest of several generals and other officersin November 1992 for coup plotting revealed tensions within the armedforces.ECONOMYThe economic restructuring program of the Fujimori administration isbeginning to have a positive effect on Peru's economy, which hassuffered decades of high inflation, unproductive investment policies,high foreign debt, subsidies, mismanagement, and corruption.  Trade,investment, and foreign exchange policies have been liberalized as wellas laws on labor and land.  Inflation has been reduced significantlythrough tight monetary and fiscal policies.  Domestic deficit financinghas been curbed through tax reform, corrections in public prices, andexpenditure control, including the elimination of subsidies.  In mid-1994, the Fujimori administration had attained significant successes inprivatizing all state-owned enterprises.  The government sold its sharein the national phone system to a Spanish company for more than $2billion and later sold one of two major government banks to aninternational consortium in 1994.Growth in fisheries and the agricultural sector was spurred by theabatement of the El Nino climatic phenomenon which had caused thedepletion of ocean fish stocks and drought on shore.  In fact, in 1993,the strongest growth took place in the fisheries sector, especially inthe production of fishmeal for animal feed.  Fisheries grew 24% in 1993.Output in the construction sector also grew significantly, with a 14%increase.  Agricultural production rose 6% in 1993.  The recovery ofthis sector was concentrated in the crop sub-sector, which climbed 10%.Mining and petroleum production rose 8% with similar increases inpetroleum and mineral production.  The manufacturing sector alsounderwent a significant recovery, especially in primary processing;which rose 9% in 1993. Total manufacturing production increased 7%.Preliminary data for 1994 show that the leading growth sectors--both interms of their contribution to overall output--and rates of growth aremanufacturing, which rose 15% in January-May compared with the sameperiod of 1993; construction, which surged by 30%; agriculture, whichclimbed 16%; and electricity, which was up 11%.  The fisheries sector,while accounting for only about 2% of total output, made a significantcontribution to overall growth by rising 34% during the first fivemonths of 1994 against the comparable 1993 period.  Mining output isprojected to grow, aided by recovering international prices and thedevelopment of joint ventures attracting significant foreign investment,especially in the more prosperous Peruvian mining operations.For 1994 as a whole, manufacturing is expected to grow by 8%-9%.  Use ofcapacity should rise to 58%-60% by the end of the year, compared with53% at the end of 1993.  Primary product processing continues to play animportant role, and growth rates are highest in fishmeal, leather andskins, and foundry products.  With an apparent recovery of demand,output of consumer goods also is on the rise.The construction sector also will continue to grow strongly with outputincreasing a projected 12%-15%.  Strong public sector investment inhighway rehabilitation, schools, water, sewage, and ruralelectrification should fuel demand.  Output should also rise in thehousing sector, because of a strengthened public housing program and thereinitiation of a private mortgage system.NarcoticsPeru is the world's leading producer of the coca leaf.  Two-thirds ofthe world's cocaine supply originates from coca leaf grown in Peru.Contributions of this illicit industry to national economy is unknownbut probably adds several $100 million a year at a minimum.  Some100,000 farmers are involved in the production.  The large inflow ofillegal dollars from the drug industry artificially strengthens thePeruvian sol against the dollar, helping to erode internationalcompetitiveness of the country's legitimate exports.In 1993-94, the Government of Peru conducted operations, which includedthe seizure of drug traffickers and drugs; the destruction of coca labs;disablement of clandestine air strips; and prosecution of securityofficers involved in narcotics corruption.  The government also createdprograms to eradicate coca seed beds and enacted laws to ensure thedestruction of poppy cultivation.  Peru is cooperating withmultinational efforts to eliminate precursor chemicals used to transformcoca leaf into cocaine.Foreign Trade and Balance Of PaymentsIn 1993, Peru recorded a total merchandise trade deficit of more than$500 million. Peru's first-quarter 1994 merchandise trade deficitamounted to $247 million.  In 1993, U.S. merchandise exports to Perutotaled $1.1 billion; U.S. imports from Peru were $754 million.Generally, the 1994 balance of payments strengthened the trends begun in1993 and increased long-term capital flows into Peru.  This resulted ina larger capital account surplus, and a higher current account deficit.In 1993, the Peruvian balance-of-payments surplus was $500 million.  Thecurrent account deficit of $1.775 billion, according to Central Bankstatistics, was more than covered by capital inflows.  Within thoseflows, long-term investments are becoming more prominent.  The long-termcapital account surplus in 1993 was $1.237 billion, up from $612 millionin 1992.  Short-term capital flows fell sharply--from $1.576 billion in1992 to $1.037 billion in 1993.1The overall Peruvian balance-of-payments surplus for 1994 was estimatedto be more than $2.5 billion, with inflows from the privatizationprogram likely to exceed $3 billion.  This inflow of capital isfinancing a current account deficit that is expected to be somewhathigher this year than in 1993, especially given an expected realappreciation of the sol in 1994.Foreign InvestmentThe Fujimori government seeks to attract both foreign and domesticinvestment in all sectors of the economy.  Macroeconomic instability, ahostile political climate, and terrorism discouraged such investment inthe past, but increasing reforms and success in the PeruvianGovernment's war on terrorism have helped attract more foreigninvestors.  The new constitution--enacted January 1, 1994--LegislativeDecree 662 (DL 662) of September 1991, the Foreign Investment PromotionLaw, DL 757 of November 1991, and the Framework Law for PrivateInvestment Growth are the basic legal frameworks for foreign investorsin Peru.  Supreme Decree 162 (DS 162) of October 1992 provides theimplementing regulations for these legislative decrees.Foreign investment is now subject to national treatment and is permittedin almost all economic activity.  Article 63 of the new constitutionstates that "national and foreign investment are subject to the sameterms."  Although foreign investment must be registered with theNational Commission on Foreign Investment and Technology, if theinvestor intends to repatriate capital, profits, and royalties, noauthorization is actually required to move funds abroad.  All investorsneed prior approval to invest in industries that manufacture weapons.Economic OutlookThe Peruvian Government's primary economic objective is to reduceinflation to single digits and then to focus more on social and economicgrowth programs.  The government hopes to lower inflation to 9% in 1995.Current indicators suggest that the 1995 increase in GDP growth ratecould exceed that projected for 1994.  With single-digit inflation,strong economic potential, and continued foreign investment, Peru couldcontinue its economic recovery well into the latter half of the 1990s.Nonetheless, the government's preoccupation with macroeconomic issues,insufficient capital investment funds at home, and a dramatic drop inforeign credits as a result of Peru's policy of debt-service limitation.Upgrading education and services, reducing the 2.0% population growthrate through expanded family planning activities, decentralizing theeconomy, and agricultural development remain high government priorities,as does reducing the high unemployment and underemployment rates.FOREIGN RELATIONSPresident Fujimori is increasing Peru's ties to Japan and othercountries on the Pacific Rim, as noted by several presidential visitsand many others by government officials to the region.  The April 1992coup strained Peru's relations with many OAS and European countries.Relations improved as the government has returned to democraticinstitutions through the Constituent Congress process. The Presidentaims to improve relations with its neighbors.  Peru is a member of theAndean pact together with Bolivia, Colombia, Ecuador, and Venezuela.Peru has been a member of the United Nations since 1949.  Former UNSecretary General (1981-91) Javier Perez de Cuellar is Peruvian.U.S.-PERUVIAN RELATIONSThe principal U.S. interests in Peru continue to be the stability andstrengthening of democratic institutions, protection of human rights,ending illegal Peruvian exports of cocaine, interdicting the flow ofnarcotics to the Untied States, and maintaining sustainable economicdevelopment.U.S. relations with Peru have improved after the Peruvian Governmentimplemented its May 1992 promises to the OAS Ministerial Meeting(Nassau) to restore democracy after the coup.  Peru has accepted U.S.offers to provide technical assistance for the 1995 elections, whichwill be an important test for democracy.  Human rights remains asignificant element of U.S. policy toward Peru.  The terrorists remainthe largest violator of human rights in Peru.  The number ofextrajudicial executions and disappearances by security forces droppedin 1994.  With the November 1994 elimination of the repentant terroristlaw, under which terrorists could gain lighter sentences by  providinginformation on operations and members to the government, the number ofarbitrary detentions should also slow.  However, impunity of securityforces accused of past human rights abuses continues, and trials ofaccused terrorists in military and civilian courts lack due processguarantees.With increasing success against terrorism, the Peruvian Government hasturned more effort and resources toward control of the illegal cocaineindustry.  The Peruvian Government recently adopted a comprehensivenational drug control plan.  However, corruption and crippling resourceconstraints have limited Peruvian efforts.  The United States and otherdonors recognize that a significant long-term alternative developmentassistance effort, complemented by control of illegal drug trafficking,is necessary to reduce economic dependence of a large farming populationon coca production, and thus make it politically possible to eliminatecoca destined for illicit drug production.The United States fully supports Peru's efforts to reinsert itself inthe international financial community. The United States was a co-leader, along with Japan, of the Peru Support Group in 1993.U.S. Economic AssistanceU.S. bilateral assistance to Peru, including food aid and disasterrelief and rehabilitation, totaled more than $714 million during the1990-94 period.  Peru has been the Agency for InternationalDevelopment's (USAID) largest program in South America.  USAID hasprovided valuable resources for priority development projects at a timewhen Peru's own domestic resources have been severely restricted by theneed for austerity in public spending and by unprecedented naturaldisasters.Through Title II Food Aid Programs, USAID assists 2.6 million Peruviansliving below the poverty threshold.  Designed to alleviate not onlyhunger and to help them become reincorporated into the economy, it alsoprovides food for work activities, which have created jobs for 125,000temporary workers while building basic productive infrastructure forsustainable development.  In addition, the assistance has providedcapital access, management, technical, and business skills to 6,000people, helping them to establish or maintain small businesses.USAID also provides health, nutrition, and family planning services,emphasizing preventive health and nutrition interventions for youngchildren and their mothers.  USAID is the major donor for immunizationin Peru.  In 1993, immunization coverage of children under age onereached the highest levels ever in the country.  Further, in 1994, amajor public health milestone will be reached:  Polio will be declarederadicated from the Americas, an accomplishment that has not yet beenattained in any other region.  The last case of polio in the regionoccurred in Peru in 1991.  Moreover, adequate clinical treatment and useof oral rehydration therapy have contributed to an extremely lowfatality rate of slightly over 1% for cholera in 1994.USAID developed a nationwide computerized health and managementinformation system--the first in the Latin America and Caribbean region--for the Ministry of Health.  The system links the ministry's 32 healthregions and gives information-sharing on health statistics nationwideand for comparative purposes.  This will help improve national healthplanning and better allocate  scarce resources to segments of thepopulation in greatest need.Toward strengthening the investment climate through improved legal,regulatory, and judicial environment, USAID financed the creation of theLima Chamber of Commerce's Arbitration Center, which resulted in moreefficient resolution of commercial conflicts and is an effectivealternative to the slow judicial system.  The Microenterprise and SmallProducers Support Project helped increase small business earnings by $25million and expand Peru's agricultural export base by 2,000 smallagricultural producers with more access to both national andinternational markets.Increased democratization and transparency of government decision-makinghas been advanced through proactive initiatives of numerous USAID-assisted non-governmental organizations, including the Institute forLiberty and Democracy, Drug Information and Education Center, and FORONational/International.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: PARAGUAYPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of ParaguayPROFILEGeographyArea:  406,750 sq. km. (157,047 sq. mi.); about the size of California.Cities:  Capital--Asuncion (pop. 502,000). Other cities--Caaguazu, Coronel Oviedo, Pedro Juan Caballero, Encarnacion, and Ciudad del Este.Terrain:  East of Paraguay River--grassy plains, wooded hills, tropical forests; west of Paraguay River (Chaco region)--low, flat, marshy plain.Climate:  Temperate east of the Paraguay River, semiarid to the west.PeopleNationality:  Noun and adjective--Paraguayan(s).Population:  4.2 million.Annual growth rate:  3.1%.Ethnic groups:  Mixed Spanish and Indian descent (mestizo) 95%.Religions:  Roman Catholic 97%; Mennonite and other Protestant denominations.Languages:  Spanish, Guarani.Education:  Years compulsory--6.  Attendance--83%.  Literacy--90%.  Health:  Infant mortality rate (1992)--47/1,000.  Life expectancy--65 yrs. male; 69 yrs. female.Work force (1.4 million):  Agriculture--37%.  Industry and commerce--31%.  Services--19%.  Government--4%.GovernmentType:  Constitutional republic with strong presidency.Independence:  May 1811.Constitution:  June 1992.Branches:  Executive--president.  Legislative--Senate and Chamber of Deputies.  Judicial--Supreme Court of Justice.Administrative subdivisions:  17 departments.Political parties:  Colorado (National Republican Association), Authentic Radical Liberal, National Encounter, Febrerista Revolutionary, and numerous smaller parties not represented in Congress.Suffrage:  Adults age 18 and older.EconomyGDP (1993):  $7.2 billion.Annual growth rate (1993):  3.7%.Per capita GDP (1993):  $1,550.Natural resources:  Hydroelectric sites, forests.Agriculture (27% of GDP): Products--meat, corn, sugarcane, soybeans, lumber, cotton.  Arable land--9 million hectares, of which 30% cultivated.Industry (16% of GDP):  Types--sugar, cement, textiles, beverage, and wood products.Trade (1993):  Exports--$750 million: soybeans, meat and meat products, lumber, vegetable oil, yerba mate, cotton. Major markets--Brazil, Argentina, EU, U.S. (7%).  Imports-- $1.7 billion:  machinery, fuels and lubricants, electronics, consumer goods.  Major suppliers--EU, U.S. (30%), Japan, Argentina, Brazil.Official exchange rate:  1,905 guaranies = U.S. $1.  nPEOPLEParaguay's population is distributed unevenly throughout the country.  The vast majority of the people live in the east, most within 160 kilometers (100 mi.) of Asuncion, the capital and largest city.  The Chaco, which accounts for about 60% of the territory, is home to less than 4% of the population.Ethnically, culturally, and socially, Paraguay has one of the most homogeneous population in South America.  About 95% of the people are of mixed Spanish and Guarani Indian descent.  Little trace is left of the original Guarani culture except the language, which is understood by 90% of the population.  About 75% of all Paraguayans speak Spanish.  Guarani and Spanish are official languages.  Germans, Japanese, Koreans, Brazilians, and Argentines have settled in Paraguay. HISTORYPre-Columbian civilization in the fertile, wooded region that is now Paraguay consisted of numerous seminomadic, Guarani-speaking tribes of Indians, who were recognized for their fierce warrior traditions.  They practiced a mythical polytheistic religion, which later blended with Christianity.Spanish explorer Juan de Salazar founded Asuncion on the Feast Day of the Assumption, August 15, 1537.  The city eventually became the center of a Spanish colonial province encompassing most of southern South America.  Paraguay declared its independence by overthrowing the local Spanish authorities in May 1811.The country's formative years were dominated by three strong leaders:  Jose Gaspar Rodriguez de Francia (1814-40), Carlos Antonio Lopez, (1841-62), and his son, Francisco Solano Lopez (1862-70).  The latter waged a war against Argentina, Uruguay, and Brazil (War of the Triple Alliance, 1864-70) in which Paraguay lost half its population; Brazilian troops subsequently occupied the country until 1874.  From 1880 until 1904, a succession of presidents governed Paraguay under the banner of the Colorado Party.  The Liberal Party seized control of the government in 1904 and ruled, with only a brief interruption, until 1940.Throughout the 1930s and 1940s, Paraguayan politics were characterized by the Chaco war, civil war, dictatorships, and periods of extreme political instability. Gen. Alfredo Stroessner assumed power in May 1954. He was elected to complete the unexpired term of his predecessor and was subsequently re-elected President in 1958, 1963, 1968, 1973, 1978, 1983, and 1988.  He ruled the country almost continuously under the state-of-siege provision of the constitution.  When invoked, usually in political cases, state-of-siege measures effectively set aside habeas corpus and other legal guarantees.The Colorado Party, the military, and the government were the pillars of the Stroessner regime.  During this period, political freedoms were severely limited and opponents of the regime were systematically harassed and persecuted.  In August 1967, a Colorado-dominated constitutional convention imposed a new constitution which gave a dubious legitimacy to Stroessner's control of political and economic forces in Paraguay.  Throughout Stroessner's 34-year reign, Paraguay's image became progressively tarnished and the country increasingly estranged from the world community.On February 3, 1989, General Stroessner was overthrown in a military coup headed by Gen. Andres Rodriguez.  Presidential, congressional, and municipal elections were held on May 1, 1989.  General Rodriguez, as the Colorado Party candidate, easily won in presidential elections in which eight political parties participated.  As President, he instituted political, legal, and economic reforms and initiated a rapprochement with the international community.  In municipal elections, opposition candidates won several towns--notably, a labor union leader was elected mayor of the capital, Asuncion.  A multi-party constituent assembly was elected in December 1991 to draft a new constitution.  It went into effect in June 1992 and was a dramatic improvement over the 1967 constitution in protecting fundamental rights and establishing a democratic system of government. GOVERNMENT AND POLITICAL CONDITIONSOn May 9, 1993, Colorado Party presidential candidate Juan Carlos Wasmosy was elected President in what international observers deemed Paraguay's most fair and free elections.  A majority-opposition Congress also was elected.  Although only three parties elected officials to national office, several parties contested the major leadership positions in the elections.  The new opposition-dominated Congress quickly demonstrated its independence from the executive by rescinding legislation passed by the previous Colorado-dominated Congress.  As Paraguay's first civilian President in almost 40 years, President Wasmosy has pledged to consolidate Paraguay's democratic transition, reform the state, and improve respect for human rights.Paraguay's highly centralized government was fundamentally changed by the 1992 constitution, which provides for a division of powers.  The president, popularly elected for a five-year term, is assisted by an appointed cabinet.The bicameral Congress consists of a 45-member Senate and a 80-member Chamber of Deputies.  Senators and deputies are elected concurrently with the president.  Senators are elected through a proportional representation system using the nation as a single legislative district.  Deputies are elected on the departmental level through a proportional representation system.  Paraguay's highest court is the Supreme Court.  Its members are selected by the Senate and the president through the recommendations of a constitutionally created Magistrates Council.  Paraguay is divided into 17 departments, each headed by a popularly elected governor.Principal Government OfficialsPresident--Juan Carlos WasmosyMinister of Foreign Affairs--Luis Maria Ramirez BoettnerAmbassador to the U.S.--vacantAmbassador to the OAS--vacantAmbassador to the UN--Jose Felix Fernandez EstigarribiaParaguay maintains an embassy in the United States at 2400 Massachusetts Avenue NW, Washington, DC 20008 (tel. [phone]).  Consulates are in Miami, New York, New Orleans, Chicago, Detroit, and Los Angeles.ECONOMYParaguay has a predominantly agricultural economy, with a thriving commercial sector.  There is a large subsistence sector (including sizable urban underemployment) and a larger underground re-export sector.  Although the country has vast hydroelectric potential (including the world's largest hydroelectric generation facility at the Itaipu dam), it lacks significant mineral or petroleum resources.  The government welcomes and provides national treatment to foreign investors and businesses.The country had a GDP of $7.2 billion in 1993.  The economy--dependent on exports of soybeans, cotton, cattle, and timber; on electricity generation; and on the lucrative business of re-exporting products made elsewhere--is vulnerable to the vagaries of weather and to the fortunes and misfortunes of the Argentine and Brazilian economies.Paraguay achieved a balance-of-payments surplus of $89 million in 1993, or about 1.3% of GDP; this represented a reversal from 1992's $351-million balance-of-payments deficit.  In 1993, official foreign exchange reserves increased to $700 million.  Foreign official debt declined slightly to $1.2 billion, following a buyback of all commercial debt in 1992.  Strong capital flows continued in 1994, and the government registered a balance-of-payments surplus of almost $300 million for the first six months of the year.Agriculture and CommerceAgricultural activities represented more than 25% of GDP for 1993.  More than 200,000 families depend on subsistence farming activities and maintain marginal ties to the larger, productive sector of the economy.  In 1993, a rebound in cotton production and a record soybean crop buoyed the economy.  Rural income increased, and aggregate demand rose.  GDP rebounded from a meager 1.8% increase--and negative 1.3% per capita GDP growth--in 1992 to 3.7% in 1993.  As inflationary pressures accelerated, 1993 closed with a 20.4% rate.The commercial sector is primarily engaged in the import of goods from Asia and the United States for re-export to neighboring countries.  In general, Paraguayans prefer imported goods, and local industry relies on imported capital goods.  The underground economy, which is not included in the national accounts, is estimated to generate transactions amounting to $3 billion to $7 billion per year.  The bulk of underground activity centers on the unregistered sale of imported goods--including computers, sound equipment, cameras, liquor, and cigarettes--to Argentina and Brazil. Post-Stroessner ReformsSince 1989, the government has deregulated the economy, previously tightly controlled by President Stroessner's authoritarian regime.  The Rodriguez and Wasmosy administrations eliminated foreign exchange controls and implemented a free-floating exchange rate system; reformed the tax structure and established tax incentives to encourage and attract investment; reduced tariff levels; launched a stock exchange market; and began a process of financial reform.  The Wasmosy government has pledged to strengthen market-based economic reforms initiated since 1989.  To do this, the government pledged to:  keep government expenditures in line with revenues; combat inflation; eliminate restrictions on capital flows; reform and deregulate the financial sector; keep customs duties low and uniform; encourage production and exports; privatize state-owned enterprises; and fight official corruption.Although President Wasmosy has vowed to privatize state enterprises which produce goods and services in order to rationalize resources, privatization has stalled due to opposition from many parts of the society long accustomed to a large public sector.  The government still plays a major role in the Paraguayan economy.  The total public sector budget represents close to 50% of GDP.  Of the $3.3-billion 1994 government budget, 40% was assigned to the central government, with the remaining 60% targeted for the decentralized agencies and state-owned enterprises.  During the first half of 1994, $340 million (about 15% of the government's investment budget) was allocated .DEFENSEThe constitution designates the president as commander-in-chief of the armed forces.  Military service is compulsory, and all 17-year-old males are liable for one year of active duty.  Although the 1992 constitution allows for conscientious objection, no enabling legislation has yet been approved, and conscientious objection does not occur in practice.The army has the majority of personnel, resources, and influence.  With about 15,000 personnel, it is organized into three corps, with six infantry divisions and three cavalry divisions.  The army has two primary functions:  to maintain the national defense (including internal order) and to manage some civic action projects in the countryside.  The navy consists of about 4,000 personnel divided into three service branches.  The air force, newest and smallest of the services, has about 2,000 personnel.FOREIGN RELATIONSParaguay is a member of the United Nations and several of its specialized agencies, the Organization of American States, the Latin American Integration Association, the Rio Group, INTELSAT, INTERPOL, and most recently, the MERCOSUR (Southern Cone Common Market).  Its foreign policy has followed closely the Rio Group's lead on many issues of wide-ranging political importance.U.S.-PARAGUAY RELATIONSIn the post-Stroessner years, U.S.-Paraguay relations have improved.  The U.S. wishes to continue its constructive relations with the Government of Paraguay, and it supports Paraguay's increased democratization, commitment to economic reform, and improved counternarcotics cooperation.  U.S.-Paraguay cooperation in international organizations traditionally has been good.The U.S. Agency for International Development (USAID) has assisted Paraguayan development since 1946.  USAID currently supports a variety of programs to strengthen Paraguay's democratic institutions, particularly in the legislative and judicial branches, local government, and union development.  In FY 1995, USAID will spend about $4 mil-lion in the country.  The Peace Corps and the U.S. Information Service both are active in Paraguay.Principal U.S. Officials Ambassador--Robert E. ServiceDeputy Chief of Mission--Gerald C. McCullochPolitical Officer--Alexander H. MarguliesEconomic/Commercial Officer--Francisco J. FernandezConsul--Eigel V. HansenAdministrative Officer--Franklin EnglishUSAID Representative--Richard NelsonPublic Affairs Officer--Mark T. JacobsDefense Attache--Lt. Col. Alfonso GomezOffice of Defense Cooperation--Col. Raymond H. BecerrilThe U.S. embassy in Paraguay is located at 1776 Avenida Mariscal Lopez, Asuncion (tel. (595) (21) 213-715, fax (595) (21) 213-728).  (###)</text>
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        <text>U.S. Department of StateBackground Notes:  Papua New Guinea, November 1995Bureau of Public AffairsNovember 1995Official Name:  Independent State of Papua New Guinea PROFILE Geography  Land area: 461,690 sq. km.; about the size of California. Cities: Capital--Port Moresby (pop. 195,570). Other cities--Lae (88,172), Mt. Hagen (70,850). Terrain: Mostly mountains with coastal lowlands and rolling foothills. Climate: Tropical.  People  Population: 4.3 million. Annual growth rate: 2.3%. Languages: English (official), Tok Pisin, Motu, and about 850 other languages. Education: Years compulsory--eight.  Literacy--52%. Health: Infant mortality rate-- 61/1,000. Life expectancy--men 56 yrs.; women 58 yrs.  Government  Type: Constitutional monarchy with parliamentary democracy. Constitution: September 16, 1975. Branches: Executive--British monarch (chief of state), represented by governor general; prime minister (head of government). Legislative--unicameral parliament. Judicial--independent; highest is Supreme Court. Administrative subdivisions: 19 provinces and the national capital district (Port Moresby). Major political parties: People's Progress Party (PPP); Pangu Parti; People's Democratic Movement (PDM); People's Unity Party (PUP); League of National Advancement (LNA); People's National Congress (PNC); and Melanesian Alliance (MA). Suffrage: Universal over 18 years of age.  Economy  GDP (1994): $9.2 billion. Growth rate: 6.1%. Per capita GDP: $2,200. Natural resources: Gold, copper ore, oil, natural gas, timber, fish. Agriculture (25% of GDP): Major products--coffee, cocoa, coconuts, palm kernels. Industry (32% of GDP): Major sectors--copra crushing, palm oil processing, plywood production, wood chip production, mining of gold, silver and copper, construction, tourism. Trade (1993): Exports--$2.4 billion: gold, copper ore, oil, timber, palm oil, coffee, cocoa, lobster. Major markets--Australia, Japan, U.S., Singapore, New Zealand. Imports--$1.2 billion: machinery and transport equipment, manufactured goods, food, fuels, chemicals.  Major suppliers--Australia, Japan, U.K., New Zealand, Netherlands.  U.S.-PAPUA NEW GUINEA RELATIONS  The United States and Papua New Guinea established diplomatic relations upon the latter's independence on September 16, 1975.  The two nations belong to a variety of regional organizations, including the Asia-Pacific Economic Cooperation (APEC) forum; the ASEAN Regional Forum (ARF); the South Pacific Commission; and the South Pacific Regional Environmental Program (SPREP).One of the most successful cooperative multilateral efforts linking the U.S. and Papua New Guinea is the U.S.-Pacific Islands Multilateral Tuna Fisheries Treaty, under which the U.S. grants $14 million per year to Pacific island parties and the latter provide access to U.S. fishing vessels.The U.S. supports Papua New Guinea's efforts to protect biodiversity.  The U.S. Agency for International Development is sponsoring a rapid assessment project to identify endangered species in Papua New Guinea, as well as a conservation project in Gulf Province.  The U.S. Government supports the International Coral Reef Initiative aimed at protecting reefs in tropical nations such as Papua New Guinea.The United States Information Service (USIS) sponsors a wide variety of activities in Papua New Guinea, including the International Visitor Program, Fulbright and Humphrey exchanges, and the South Pacific Scholarship Program.  USIS helped found the Papua New Guinea-U.S. Association, an independent entity that promotes bilateral ties.U.S. military forces, through the Pacific Theater Command in Honolulu, Hawaii, carry out annual bilateral meetings as well as small-scale exercises with the Papua New Guinea Defense Force (PNGDF).  The U.S. also provides military education and training courses to security force officials.The U.S. Peace Corps brought its first group of volunteers to Papua New Guinea in September 1981.  Currently about 55 volunteers serve throughout the country. Volunteer work is concentrated in rural community development and education.About 4,500 U.S. citizens live in Papua New Guinea, with major concentrations at two missionary headquarters in Eastern Highlands Province.  Trade and Investment  Papua New Guinea is the largest Pacific island nation in both population and land area.  Its natural resources, including gold, copper, hydrocarbons, timber and fisheries, and tree crops (coffee, cocoa, copra, and palm oil), provide the country's main exports.  There is little domestic industry.Although its per capita GDP of $2,200 ranks Papua New Guinea as a middle-income developing nation, 85% of its population engages in subsistence and smallholder agriculture.  The government employs about 30% of the roughly 250,000 workers participating in the formal economy.  Mining and petroleum exports represented 67% of total exports and an estimated 23% of GDP in 1994.Australia, Japan, the United States, Singapore, and New Zealand are the principal exporters to Papua New Guinea.  Equipment and supplies for the mining and petroleum sectors and aircraft and aircraft parts accounted for most U.S. exports in the early 1990s.Australia was Papua New Guinea's most important export market throughout the early 1990s, followed by Japan, South Korea and Germany.  The U.S. purchased at most 4% of Papua New Guinea's annual exports during this period.  Crude oil is by far the largest U.S. import from Papua New Guinea, followed by cocoa beans, coffee, shellfish, and tea.U.S. companies are active in developing Papua New Guinea's mining and petroleum sectors.  Chevron operates the Kutubu and Gobe oil projects.  Exxon's Papua New Guinea subsidiary is exploring for natural gas reserves.  Battle Mountain Gold owns an interest in the Lihir gold mine project in New Ireland Province.  Two 30,000-40,000 barrel-per-day oil refinery projects, each involving an American company, have been approved by the government, while a U.S. investor plans to construct a tuna cannery in Madang.Papua New Guinea became a participating economy in the Asia-Pacific Economic Cooperation (APEC) forum in 1993.  Its bid for access to the World Trade Organization (WTO) was approved in April 1995.  The accession must still be formally approved by WTO members and ratified by Papua New Guinea. Principal U.S. Embassy Officials  Ambassador--Richard W. Teare Deputy Chief of Mission--Edward J. Michal Political Officer--Royal M. Wharton Economic Officer--Beatrice P. Soila Consular Officer--Patrick W. Walsh  The U.S. embassy in Papua New Guinea is located on Douglas Street, Port Moresby (tel. [675] 321-1455; fax [675] 321-3423). The mailing address is P.O. Box 1492, Port Moresby, U.S. Department of State, Washington, DC 20521-4240.  GOVERNMENT AND POLITICAL CONDITIONS  Although what is now Papua New Guinea was first sighted by Portuguese explorers more than 300 years before, significant European colonization did not begin until the latter part of the 19th century, when Germany, Britain, and Holland all claimed parts of New Guinea and other nearby islands.  The Dutch-controlled areas became part of Indonesia in 1961; the British and German areas earlier had been joined into what eventually became the Independent State of Papua New Guinea.Britain transferred control of its colonial administration to Australia in 1906.  The latter then took over the German-controlled areas at the outset of World War I and administered them afterwards under a League of Nations mandate.  In 1942, the Japanese occupied portions of both Papua and New Guinea, until driven out or forced to surrender by Allied forces.  Gen. Douglas MacArthur made his headquarters in Port Moresby during the initial phases of this struggle.  Australia continued to govern after World War II under a United Nations trusteeship agreement.  In 1973, Papua New Guinea achieved internal self-government and then full independence on September 16, 1975.Papua New Guinea, a constitutional monarchy, recognizes the Queen of England as head of state.  She is represented by a governor-general who is elected by parliament and who performs mainly ceremonial functions.  Papua New Guinea has three levels of government--national, provincial and local, but the national level is the most powerful.  There is a 109-member unicameral parliament, whose members are elected every five years.  The parliament in turn elects the prime minister, who appoints his cabinet from members of his party or coalition.Members of parliament (MPs) are elected from 19 provinces and the national capital district of Port Moresby.  Parliament introduced reforms in June 1995 to centralize the system, with regional (at-large) MP's becoming provincial governors, while retaining their national MP seats.Papua New Guinea's judiciary is independent of the government. It protects constitutional rights and interprets the laws.  There are several levels, culminating in the Supreme Court.Papua New Guinea's politics are highly competitive.  MPs are elected on a "first past the post" system, with winners frequently gaining less than 15% of the vote.  There are seven major parties, but party allegiances are not strong.  Winning candidates are usually courted in efforts to forge the majority needed to form a government.  No single party has yet won enough seats to form a government in its own right.There have been several changes of government during the five-year intervals between national elections.  Since 1975, four political leaders have held the office of Prime Minister--Sir Michael Somare, Rabbie Namaliu, Sir Julius Chan, and Paias Wingti--and all remain active in politics.  The current Prime Minister, Sir Julius Chan, won election in August 1994 in a parliamentary vote following a Supreme Court decision invalidating a parliamentary maneuver by then-Prime Minister Wingti.Sir Julius' People's Progress Party is the dominant member of a coalition that includes the Pangu Parti and several smaller parties and independent MPs.  The coalition government is unlikely to face a challenge until the June 1997 general election, given constitutional reforms that render governments less vulnerable to motions of "no confidence."  Principal Government Officials  Governor General--Wiwa Korowi Prime Minister and Minister for Foreign Affairs and Trade--Sir Julius Chan Ambassador to the United States--Kepas Isimel Watangia  Papua New Guinea maintains an embassy at 1615 New Hampshire Ave. NW, 3rd Floor, Washington, DC  20009 (tel. [phone]; fax [phone]).The Papua New Guinea mission to the United Nations is at 801 Second Avenue, New York, NY  10017 (tel. [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).  Upon their arrival in a country, U.S. citizens are encouraged to register at the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you en route in case of an emergency. Further Electronic Information: Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line. Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet: Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone]. Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone]. National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ==============================  Background Notes Series -- Published by the United States Department of  State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC   This information is in the public domain and may be reproduced without permission; citation of this source is appreciated.  (###)</text>
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        <text>U.S. Department of State Background Notes: Panama, January 1995 (CONTINUED)Bureau of Public Affairs   January 1995  Official Name: Republic of Panama  U.S.-PANAMANIAN RELATIONS  The U.S. and Panama are working toward implementing the 1977-78 Canal Treaties by preparing for the U.S. withdrawal and the Panamanian takeover of the canal and the U.S. base properties.  U.S. economic assistance to Panama in FY 1993 was $8.6 million.  The United States cooperates with the Panamanian Government in promoting economic, political, and social development through U.S. and international agencies.  Cultural ties between the two countries are strong, and many Panamanians come to the United States for higher education and advanced training.  President Perez Balladares has indicated that he intends to maintain a close relationship with the United States.  In the past, the presence of a large contingent of U.S. armed forces in Panama has generated friction.  Panama's relationship with the United States has been a recurring political issue throughout Panamanian history.  Severe strains were placed on the relationship by the Noriega regime during the late 1980s, but the renewal of democracy and stability in Panama has shown that the bilateral relationship remains fundamentally strong.  The presence of the U.S. forces was not an issue during the 1994 presidential campaign.  In addition, the Panama Canal Treaties have provided the foundation for a new partnership.  The United States and Panama remain committed to the smooth implementation of these treaties, including the departure of U.S. armed forces, the reversion of U.S. military bases, and the turnover of the canal to Panamanian control at noon on December 31, 1999.  Managing this complex turnover, which Panamanians call their "national patrimony," will be one of the prime challenges of the Perez Balladares administration.  Panama continues the fight against illegal narcotics.  The country's proximity to major cocaine-producing nations and its role as a commercial and financial crossroads make it a country of special importance in this regard.  Although Panamanian anti-narcotics institutions lack trained personnel and blueprints for action, the Perez Balladares government and the United States are discussing concerted efforts to combat the drug plague.  Principal U.S. Officials  U.S. Embassy Charge d'affaires--Oliver P. Garza Counselor for Political Affairs--John Bennett Counselor for Economic Affairs--Elizabeth Bollman Counselor for Public Affairs--Joe Johnson Counselor for Administrative Affairs--Bernardo-Segura-Giron Consul General--L. Bradley Hittle  Panama Canal Commission Administrator--Gilberto Guardia Deputy Administrator--Raymond Laverty  U.S. Southern Command Commander in Chief--Barrey McCaffrey  The U.S. embassy in Panama is located at Avenida Balboa y Calle 38, Panama City (tel. 27-1777).  Personal and official mail for the embassy and members of the mission may be sent to:  U.S. Embassy Panama, Box E, APO Miami FL 34002.     The Panama Canal Treaties  The 1977 Panama Canal Treaties entered into force on October 1, 1979.  They replaced the 1903 Hay/Bunau-Varilla Treaty between the United States and Panama, and all other United States-Panama agreements concerning the Panama Canal which were in force on that date.  The treaties comprise:  --  A basic treaty governing the operation and defense of the Canal from October 1, 1979, to December 31, 1999 (Panama Canal Treaty); and  --  A treaty guaranteeing the permanent neutrality of the Canal (Treaty on the Permanent Neutrality and Operation of the Panama Canal).  The details of the arrangements for U.S. operation and defense of the Canal under the Panama Canal Treaty are spelled out in separate implementing agreements.  Purpose of the Treaties  In negotiating the Panama Canal Treaties, the United States acted to protect a fundamental national interest in long-term access to a secure and efficient Canal.  Panama's cooperation is fundamental to this objective.  By meeting Panamanian aspirations for eventual control of the Canal, the United States sought a new relationship with Panama based on friendship and mutual respect.  The treaties make Panama a partner in the continued safe and efficient operation of the Canal.  In serving the best interests of both nations, the treaties serve the interests of all users of the Canal.  History of the Negotiations  Our bilateral relationship with Panama has centered on the Panama Canal since the beginning of the century.  Under the 1903 treaty, the United States acquired unilateral control of the Canal and the Canal Zone--a 553-square-mile area in which the United States exercised the rights, power, and authority of a sovereign state.  Panamanians deeply resented the 1903 treaty and the unequal relationship with the United States which it embodied.  In January 1964, Panamanian dissatisfaction with this relationship boiled over into riots which resulted in the deaths of four U.S. Marines and more than 20 Panamanians.  A three-month suspension of diplomatic relations followed.  The growing bilateral tension in the 1960s gave weight to the views of those who believed that a new Canal treaty was needed to replace the 1903 treaty and to establish a new relationship with Panama.  In June 1967, United States and Panamanian negotiators completed draft treaties dealing with the existing Canal, a possible sea-level Canal through Panama, and defense matters.  Neither country ratified the treaties, however, and they were publicly rejected by the new Torrijos government in 1970.  Treaty negotiations resumed in June 1971.  On September 7, 1977, President Carter and General Torrijos signed the Panama Canal Treaties at the headquarters of the Organization of American States in Washington, DC.  The Panamanian people approved the new treaties in a plebiscite held on October 23, 1977.  The U.S. Senate ratified the neutrality treaty on March 16, 1978, and the Panama Canal treaty on April 18, 1978. The treaties entered into force on October 1, 1979.  The protocol to the neutrality treaty is open to accession by all nations, and more than 35 have subscribed.  Basic Provisions of the Treaties  The United States has primary responsibility for the operation and defense of the Canal until December 31, 1999.  After that date, the United States and Panama will maintain a regime of neutrality for the Canal, including nondiscriminatory access and tolls for merchant and naval vessels of all nations.  In order to meet its operational and defense responsibilities, the United States has the right to use specified land and water areas and facilities in Panama necessary for the operation, maintenance and defense of the Canal until December 31, 1999.  United States rights to operate the Canal, station military forces, and maintain military bases terminate with the Canal treaty at the end of the century.  U.S. warships will be entitled to expeditious passage of the Canal at all times, however, and the United States will continue to have the right to ensure that the Canal remains open and secure.  The United States operates the Canal through the Panama Canal Commission (PCC), which is a U.S. Government agency supervised by a board of directors consisting of five American and four Panamanian members, appointed by the President (the Panamanian members are initially nominated by their government).  Until 1990, the Canal administrator was an American and the deputy administrator was Panamanian; these nationalities reversed for the final decade of the Treaty on September 20, 1990, when Gilberto Guardia was installed as the first Panamanian administrator.  Pursuant to treaty obligations, the PCC is training Panamanians in all areas of Canal operations prior to the transfer of the Canal in 1999, and Panamanian citizens currently comprise over 87% of the PCC workforce.  During the life of the Treaty, Panama receives the following payments from Canal revenues:  --  A fixed annual payment of $10 million; --  An annual payment of $10 million, adjustable for inflation, for public services provided to Canal operating areas by the Government of Panama (the Canal Zone and its government ceased to exist when the treaties entered into force, and Panama assumed jurisdiction over Canal Zone territories and functions); --  An annual percentage of toll revenues assessed at $0.35 (since October 1, 1990) per Panama Canal net ton transiting the Canal, worth $60 million in 1990; --  A payment of up to $10 million in the event that revenues exceed PCC expenditures in a given year.  Under U.S. implementing legislation (the Panama Canal Act), the PCC must be self-sustaining; its costs may not exceed its revenues, nor may U.S. taxpayer funds be used for Canal operations or payments to Panama.  Panama and the United States are committed by Article XII of the Canal Treaty to study jointly the feasibility of a sea-level canal in Panama and to negotiate terms for its construction if it is agreed that such a canal is desirable.  In 1993, a tripartite international organization, the Canal Alternatives Study Commission, established by the United States, Panama, and Japan, completed a study concerning possible modifications and alternatives to the existing system; it concluded there was no immediate need for major changes.  Completion of this study fulfilled the Treaty obligation under Article XII.     Travel Information  The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets.  They can be obtained by telephone at [phone] or by fax at [phone]; to access the Consular Affairs Bulletin Board by computer modem, dial [phone].  Travel Warnings are issued when the Department recommends that Americans avoid travel to a certain country.  Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country.  Travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia.  A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries.  A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Information on travel also may be obtained from this country's embassy and/or consulates in the U.S. (see "Principal Government Officials").  (###)  Published by the United States Department of State--Bureau of Public Affairs--Office of Public Communication--Washington, DC  Department of State Publication 8022 Background Notes Series--This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, DC  20402.  (###)</text>
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        <text>U.S. Department of State Background Notes: Panama, January 1995 Bureau of Public Affairs   January 1995  Official Name: Republic of Panama   PROFILE  Geography  Area: 77,381 sq. km. (29,762 sq. mi.); slightly smaller than South Carolina.  Panama occupies the southeastern end of the isthmus forming the land bridge between North and South America.   Cities:  Capital--Panama City and San Miguelito, a large, poor section of Panama City (827,828).  Other cities--Colon (140,908), David (102,678).   Terrain:  Mountainous (highest elevation Cerro Volcan, 3,475 m.--11,468 ft.); coastline 2,857 km. (1,786 mi.).   Climate:  Tropical, with average daily rainfall 28 mm. (1 in.) in winter.  People  Nationality:  Noun and adjective--Panamanian(s).   Population (1994 est.):  2.54 million.   Annual growth rate:  2%.   Ethnic groups:  Mestizo (mixed Indian and European ancestry) 70%, West Indian 14%, Caucasian 10%, Indian 6%.   Religions:  Roman Catholic 85%, Protestant (Evangelical) 15%.   Languages:  Spanish (official); 14% speak English as their native tongue; various Indian languages.   Education:  Years compulsory--6.  Attendance--95% for primary school-age children, 96% for secondary.  Literacy--87% overall:  urban 94%, rural 62%   Health:  Infant mortality rate--17/1,000.  Life expectancy--74 yrs.  Work force (921,000):  Government and community services--32%.  Agriculture--27%.  Commerce, restaurants, and hotels--16%.  Manufacturing and mining--9%.  Transportation and communication--6%.  Construction--3%.  Finance, insurance, and real estate--4%.    Government  Type:  Constitutional democracy.  Independence:  November 3, 1903.  Constitution:  October 11, 1972; amended 1983. Branches:  Executive--president (chief of state), two vice presidents.  Legislative--Legislative Assembly (unicameral, 72 members).  Judicial--Supreme Court. Subdivisions:  Nine provinces and one (Indian) territory. Political parties:  President Perez Balladares belongs to the Democratic Revolutionary Party (PRD), which is allied with the Labor Party (PALA) and the Liberal Republic Party (PLR or LIBRE).  This alliance, known as the Pueblo Unido ("United People") Party, holds a slim majority in the new Legislative Assembly.  Other major political parties include the Arnulfista Party (PA), to which former President Endara belongs; the Christian Democratic Party (PDC); the Papa Egoro Party; and the National Liberal Republic Movement (MOLIRENA). Suffrage:  Universal and compulsory at 18.  Economy  Real GDP (1993):  $6.6 billion.   Annual growth rate (1993):  6%.   Per capita GDP (1993):  $2,500. Natural resources:  Timber, seafood, copper, ore.   Services (72% of GDP):  Finance, insurance, canal-related services.   Agriculture (11% of GDP, 1993):  Product--bananas and other fruit, corn, sugar, rice, coffee, shrimp, timber, vegetables, cattle.  Land--agricultural 24%, exploitable forest 20%, other 56%.   Industry (19% of GDP):  Types--food and drink processing, metalworking, petroleum products, chemicals, paper and paper products, printing, mining, refined sugar, clothing, furniture, construction.   Trade (1993):  Exports--$508 million: bananas 43%, shrimp 11%; sugar 4%; coffee 2%, clothing 5%.  Imports--$2.2 billion:  capital goods 21%, crude oil 11%, foodstuffs 9%, other consumer and intermediate goods 57%. Exchange rate:  Fixed at unity with the U.S. dollar.     PEOPLE  The culture, customs, and language of the Panamanians are predominantly Caribbean Spanish.  Ethnically, the majority of the population is mestizo (mixed Spanish and Indian) or mixed Spanish, Indian, Chinese, and West Indian.  Spanish is the official and dominant language; English is a common second language spoken by the West Indians and by many in business and the professions.  More than half the population lives in the Panama City-Colon metropolitan corridor.  The rural areas are not heavily populated, and most of the rural population lives west of the Canal.  Panama is rich in folklore and popular traditions.  Brightly colored national dress is worn during local festivals and the pre-Lenten carnival season, especially for traditional folk dances like the tanborito.  Lively salsa--a mixture of Latin American popular music, rhythm and blues, jazz, and rock--is a Panamanian specialty.  Indian influences dominate handicrafts such as the famous Kuna textile molas, which generally depict native wildlife and themes.  Artist Roberto Lewis' Presidential Palace murals and his restoration work and ceiling in the National Theater are well known and admired.  The University of Panama and its extensions throughout the country have a total enrollment of more than 51,000 students, the majority of whom attend evening classes.  More than 11,000 students, primarily in engineering and allied fields, attend the Technological University.  About 6,000 students are enrolled in the University of Santa Maria La Antigua, a private Catholic institution.  The first six years of primary education are compulsory, and there are 357,402 students currently enrolled in grades one through six.  The total enrollment in the six secondary grades is 206,509.  Nearly 90% of Panamanians are literate.    HISTORY  Panama's history has been shaped by the evolution of the world economy and the ambitions of great powers.  Rodrigo de Bastidas, sailing westward from Venezuela in 1501 in search of gold, was the first European to explore the Isthmus of Panama.  A year later, Christopher Columbus visited the isthmus and established a short-lived settlement in the Darien.  Vasco Nunez de Balboa's tortuous trek from the Atlantic to the Pacific in 1513 demonstrated that the isthmus was indeed the path between the seas, and Panama quickly became the crossroads and marketplace of Spain's empire in the New World.  Gold and silver were brought by ship from South America, hauled across the Isthmus, and loaded aboard ships for Spain.  The route became known as the Camino Real, or Royal Road.  Panama was part of the Spanish empire for 300 years (1538-1821), and the principal themes of Panamanian history are rooted in that experience.  From the outset, Panamanian identity was based on a sense of "geographic destiny," and Panamanian fortunes fluctuated with the geopolitical importance of the isthmus.  The colonial experience also marked Panamanian nationalism with its strongly anti-imperialist flavor.  In addition, one of the principal legacies of Spanish colonialism was a racially complex and highly stratified society, the source of internal conflicts that ran counter to the unifying force of Panamanian nationalism.  Building the Canal  A trans-isthmian canal had been a dream since the beginning of Spanish colonization.  From 1880 to 1900, a French company under Ferdinand de Lesseps attempted unsuccessfully to construct a sea-level canal on the site of the present Panama Canal.  In November 1903, after Colombia rejected a treaty permitting the United States to build a canal, Panama proclaimed its independence and concluded the Hay/Bunau-Varilla Treaty with the United States.  The treaty authorized the United States to build a canal through a zone 10 miles wide and to administer, fortify, and defend it "in perpetuity."  In 1914, the United States completed the existing 83-kilometer (52-mile) lock canal.  The early 1960s saw the beginning of sustained pressure in Panama for the renegotiation of this treaty.  (See discussion of United States-Panama relations and the 1977 Panama Canal Treaties below.)  Military Coups and Coalitions  From 1903 until 1968, Panama was a constitutional democracy dominated by a commercially oriented oligarchy.  During the 1950s, the Panamanian military began to challenge the oligarchy's political hegemony.  In October 1968, Dr. Arnulfo Arias Madrid, twice elected president and twice ousted by the Panamanian military, was again ousted as President by the National Guard after only 10 days in office.  A military junta government was established, and the commander of the national guard, Brig. Gen. Omar Torrijos, emerged as the principal power in Panamanian political life.  Torrijos was a charismatic leader whose populist domestic programs and nationalist foreign policy appealed to the rural and urban constituencies largely ignored by the oligarchy.  Torrijos' death in 1981 altered the tone but not the direction of Panama's political evolution.  Despite 1983 constitutional amendments which appeared to proscribe a political role for the military, the Panama defense force (PDF), as they were then known, continued to dominate Panamanian political life behind a facade of civilian government.  The presidential election of 1984 resulted in the election of the pro-military coalition candidate, amid widespread voting irregularities and charges of fraud.  Pro-government parties also won a majority of Legislative Assembly seats, in races tainted by charges of corruption.  By this time, Gen. Manuel Noriega was firmly in control of both the PDF and the civilian government.  The rivalry between civilian elites and the Panamanian military, which had been a recurring theme in Panamanian political life since the 1950s, now developed into the gravest crisis in Panama's history.  Traditional elites joined middle class elements in organized opposition to the PDF's economic and political power.  In the summer of 1987, prompted by government restrictions on media and civil liberties, more than 100 business, civic, and religious groups formed a loose coalition that organized widespread anti-government demonstrations.  Panama's developing domestic crisis was paralleled by rising tensions between the Panamanian Government and the United States.  The United States froze economic and military assistance to Panama in the summer of 1987 in response to the political crisis and an attack on the U.S. embassy.  The Government of Panama countered by ousting the U.S. Agency for International Development in December 1987; before the end of the year, the U.S. Congress cut off all assistance to Panama.  General Noriega's February 1988 indictment in U.S. courts on drug-trafficking charges sharpened tensions, as did a government takeover by the PDF and domination of the Legislative Assembly by Noriega forces the following month.  In April 1988, President Reagan invoked the International Emergency Economic Powers Act, freezing Panamanian Government assets in U.S. banks and prohibiting a variety of payments by American agencies, firms, and individuals to the Noriega regime.  When national elections were held in May 1989, Panamanians voted for the anti-Noriega candidates by a margin of over three-to-one.  Although the size of the opposition victory and the presence of international observers thwarted regime efforts to control the outcome of the vote, the Noriega regime promptly annulled the election and embarked on a new round of repression.  By the fall of 1989, the regime was barely clinging to power.  An unsuccessful PDF coup attempt in October produced bloody reprisals.  Deserted by all but a small number of cronies, distrustful of a shaken and demoralized PDF, Noriega began increasingly to rely on irregular paramilitary units called Dignity Battalions.  In December 1989, the regime declared war against the United States and initiated attacks on members of the U.S. forces.  On December 20, President Bush ordered the U.S. military into Panama to protect U.S. lives and property, to fulfill U.S. treaty responsibilities to operate and defend the Canal, to assist the Panamanian people in restoring democracy, and to bring Noriega to justice.  The U.S. troops involved in Operation Just Cause achieved their primary objectives quickly, and the withdrawal of troops began on December 27.  Noriega eventually surrendered to U.S. authorities voluntarily.  He is now serving a 40-year sentence in Florida for drug trafficking.  Rebuilding Democracy  Panamanians moved quickly to rebuild their civilian constitutional government.  On December 27, 1989, Panama's Electoral Tribunal invalidated the Noriega regime's annulment of the May 1989 election and confirmed the victory of opposition candidates under the leadership of President Guillermo Endara.  President Endara took office as the head of a four-party minority government, pledging to foster Panama's economic recovery, transform the Panamanian military into an apolitical force under civilian control, and strengthen democratic institutions.  During its almost five years in office, the Endara Government struggled to improve the lot of Panama's poorer citizens, of whom an estimated 50% live in poverty.  Success was limited; although real economic growth was impressive, benefits often did not trickle down to the needy, and the unemployment rate, though reduced, remained high.  Lacking resources, the government was unable to carry out needed improvements in infrastructure such as medical services, education, and the transportation system, and these continued to deteriorate.  The new police force proved to be a major improvement in outlook and behavior over its thuggish predecessor, but efficiency was a problem, and polls showed rising concern over escalating crime rates.    While charges of narco-trafficking hurt Panama's international image, accusations of official corruption--nepotism, bribery, and favoritism--plagued the Endara Government.  However, the Endara years produced important advances in democratic institutions:  A free, noisy press flourished; government prosecutors brought accused criminals and human rights violators from the Noriega and Torrijos periods to trial; and the Legislative Assembly made significant strides in changing its role from a rubberstamp for dictatorial decrees to an independent, responsible second branch of government.   GOVERNMENT AND POLITICAL CONDITIONS  Panama is a representative democracy with three branches of government:  executive and legislative branches elected by direct, secret vote for five-year terms, and an independent appointed judiciary.  The executive branch includes a president and two vice presidents.  The legislative branch consists of a 72-member unicameral Legislative Assembly.  The judicial branch is organized under a nine-member Supreme Court and includes all tribunals and municipal courts.  An autonomous Electoral Tribunal supervises voter registration, the election process, and the activities of political parties.  Everyone over the age of 18 is required to vote, although those who fail to do so are not penalized.  Ernesto "Toro" Perez Balladares was sworn in as President on September 1, 1994, after an internationally monitored election campaign--Panama's largest, with seven candidates for the presidency, over 2,500 for the legislature, 2,000 for mayoral posts, and more than 10,000 at the local level--that was notable for its non-violent, orderly, and efficient pace.    Balladares ran as the candidate for a three-party coalition dominated by the Democratic Revolutionary Party (PRD), the unpopular political arm of the military dictatorship during the Torrijos and Noriega years.  Bruised by its forcible ejection from power by U.S. forces in Operation Just Cause, the PRD had been regarded--and indeed considered itself--highly unlikely to conclude the elections anywhere near the top of the list.  A long-time member of the PRD, Balladares worked skillfully during the campaign to rehabilitate the PRD in the eyes of the voters, emphasizing the party's populist Torrijista roots rather than its association with Noriega.  He won the election with only 33% of the vote when the major non-PRD forces, unable to agree on a joint candidate, splintered into three competing factions.  Although two-thirds of the Panamanians voted against Perez Balladares, the dispersion of their votes left the PRD candidate with the simple majority he needed to win.  President Balladares has broad powers under Panama's current constitution, but must work with a legislative assembly in which his PRD party and its political allies have only a bare majority.  Although the assembly lacks strong budgetary authority, it does play a crucial role in designing political, economic, and social initiatives; President Balladares will need to woo shifting constellations of the 10 parties represented in the assembly to build consensus for legislative projects.  Stressing "national reconciliation," Balladares has appointed a multi-party cabinet that includes prominent experts in their fields as well as several members who publicly opposed General Noriega.  National Security  The Panamanian Government has converted the former Panama defense forces (PDF) into a civilian police organization called the public force, which is subordinate to civilian officials and responsive to human rights.  Personnel strength has been cut from 16,000 to about 13,000.  Virtually all former PDF senior officers were removed from the public force.  The old centralized command structure has been broken up into four independent units: the Panamanian national police, the national maritime service (coast guard), the national air service, and the institutional protective service (VIP security).  The public force is fully accountable to civilian authority under the minister of government and justice.   A constitutional amendment would abolish the military permanently, subject to approval in a national plebiscite.  Investigative and other units that have been separated from the public force, such as the technical judicial police, are also directly subordinate to civilian authorities.  The public force budget--in contrast to the former  PDF--is on public record and under control of the executive.  The Panamanian Government has spent almost $500 million since 1990 on public order and security expenses.  Public security will cost $87 million this year and is expected to rise to $92 million for next year.  The United States, with congressional approval, is delivering appropriate assistance to establish a truly professional law enforcement institution, dedicated to providing adequate protection to the citizens of Panama while fully respecting human rights, democracy, and the law.  By the end of 1994, the United States will have provided police skills training and technical assistance in civilian law enforcement development through a $25.2-million program managed by the International Criminal Investigative and Training Assistance Program (ICITAP).  In addition, $4.4 million will have been spent to help the Panamanian Government improve its administration of justice.  Equipment that is appropriate for police work is also being provided.  Principal Government Officials   President--Ernesto Perez Balladares First Vice President--Tomas G. Altamirano Duque Second Vice President--Felipe Virzi Ministry of Foreign Affairs--Gabriel Lewis Galindo Ambassador to the U.S.--Ricardo Alberto Arias Ambassador to the UN--Jorge Illueca Ambassador to the OAS--Lawrence Chewning  Panama maintains an embassy in the United States at 2862 McGill Terrace NW, Washington, DC, 20008 (tel. [phone]).   ECONOMY  Two great challenges face the Balladares Administration as it begins its five-year term:  efficiently utilizing 70,000 acres of U.S. military land and buildings which will revert to Panama by 1999 and laying a solid groundwork for assuming full control of the Panama Canal in the 21st century.  As the U.S. military departs, Panama will have to replace jobs and income earned from U.S. bases.  Long-term investor confidence brought about by political stability and economic liberalization are the keys to Panama's economic future.  Panama's economy is primarily based on a well-developed services sector that accounts for 72% of GDP.  Services include the Panama Canal, banking, insurance, government, the trans-isthmian oil pipeline, and the Colon Free Zone--the world's second-largest free trade zone after Hong Kong.  Mining, tourism, and maritime services are projected sources for future growth.  Rapid economic growth characterized the early 1990s.  Current forecasts call for continued but slower economic growth in 1994 and 1995.  Real GDP growth of about 5% is projected for 1994 and 1995, down from 6% growth in 1993, and 8.6% growth in 1992.  Nominal GDP rose to an estimated $6.6 billion in 1993 a result of construction and Colon Free Zone activity.  Capital has returned to the Panama banking system.  Total banking center deposits rose to $21 billion in December 1993, with total assets valued at $26 billion.    Although the economic recovery of the early 1990s returned the country to its 1987, pre-crisis levels, sustained growth depends on Panama's ability to resolve long-standing problems of inequitable distribution of wealth, high barriers to trade, external debt, and dependence on U.S. Government and Canal revenues.  Under and unemployment, although sliced by more than half in recent years, continues as an economic millstone.  Panama's working-age population is expected to grow 2.5% per year during the 1990s; the economy must grow by at least 5% annually, according to one estimate, to keep the unemployment rate stable as new entrants swell the labor force.  Role of Business  The government and the U.S. business community actively promote Panama's long-standing reputation as an international trading, banking, and services center and as a site for foreign direct investment.  Panama's economy is characterized by low inflation and zero foreign exchange risk, despite the lack of major foreign investment in the last decade.  Panama, however, must change its international image (e.g., on money laundering) and improve its infrastructure if it is to attract investment.   Decisive policy reforms to change the economy and sustain long-term growth--reducing the public sector payroll, liberalizing the trade regime, privatizing state-owned enterprises, and fostering job creation through labor code reforms--is the major task of the Balladares Government.  Private construction and capital goods spending will be the main sources of growth in the short term.    Many of the needed reforms are expected to be taken in the context of Panama's accession to the General Agreement on Tariffs and Trade (GATT), which began in earnest in April 1994.  Panama's new minister for planning and economic policy has stated that trade liberalization, including GATT accession, will be a priority of the Balladares Administration.  He has also affirmed his interest in structural economic reform that will ensure continued economic growth into the 21st century.   FOREIGN RELATIONS  Panama is a member of the UN General Assembly and most major UN agencies, and it has served three terms as a member of the UN Security Council.  It maintains membership in several international financial institutions, including the World Bank, the Inter-American Development Bank, and the International Monetary Fund.  Panama is a member of the Organization of American States, and was a founding member of the Rio Group.  Although it was suspended from the Latin American Economic System (known informally both as the Group of Eight and the Rio Group) in 1988, due to its internal political system under Noriega, Panama was re-admitted in September 1994 as an acknowledgment of its present democratic credentials.  Panama is also one of the founding members of the Union of Banana Exporting Countries and belongs to the Inter-American Tropical Tuna Commission.  It is an active participant in Central American regional meetings and endorses Central American integration efforts.  Panama is a member of the Central American Parliament (PARLACEN) as well as the Central American Integration System (SICA).  The government is also taking steps to join the Central American Development Bank.  Panama has requested GATT accession and has already taken many of the key procedural steps necessary for membership.  Panama strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  Panama offered to contribute personnel to the Multinational Force, which restored the democratically elected government to Haiti in October 1994, and granted asylum to the former Haitian military leaders.   </text>
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        <text>U.S. Department of State Background Notes:  Pakistan, March 1995 (CONTINUED)Bureau of Public Affairs  March 1995Official Name:   Islamic Republic of Pakistan ECONOMY  Extreme poverty and underdevelopment in Pakistan obscure the reality of a country which has the resources and entrepreneurial skill to support rapid economic growth. In fact, the economy averaged an impressive 6.2% per year during the 1980s and early 1990s and grew by 3% in FY 1993-94. However, the economy is extremely vulnerable to Pakistan's external and internal shocks, such as in 1992-93, when devastating floods and political uncertainty combined to sharply depress economic growth.  Since the early 1980s, the government consistently pursued market-based economic reform policies.  Market-based reforms firmly took hold in 1988, when the government launched an ambitious IMF-assisted structural adjustment program in response to chronic and unsustainable fiscal and external account deficits. Since that time, the government has successfully removed barriers to foreign trade and investment, begun to reform the financial system, eased foreign exchange controls, and privatized dozens of state-owned enterprises. Progress on reducing the budget and current-account deficits has been mixed, however. In 1993, for example, during a period of extreme political instability, Pakistan's foreign exchange reserves were almost completely drawn down, and the budget deficit reached nearly 8% of GDP.  However, macroeconomic stability and sound fiscal policies were restored during the second half of 1993 under the interim Government of Prime Minister Moeen Qureshi. Largely as a result, Pakistan was able to secure a $1.3 billion financing package from the IMF in February 1994. The government's FY 1994-95 budget was designed to broaden structural reforms and reduce the budget deficit through tax reform and other revenue mobilization measures. It also seeks to contain defense spending, which together with debt servicing, has consumed as much as two-thirds of all government revenue in recent years.  With a per capita GDP of about $415, Pakistan is considered a low-income country by the World Bank. Only about 26% of adults are literate, and life expectancy at birth is  about 59 years. The population, currently about 128 million, is growing at about 3% per year, and is expected to double within 20 years. Relatively few resources have been devoted to socio-economic development or infrastructure projects. Inadequate provision of social services and high population growth have contributed to a persistence of poverty and unequal income distribution. Consequently, the government recently launched the social action program (SAP), which provides a framework for the provision of basic social services, primary education, health care, family planning, and rural water supply and sanitation.  Agriculture and Natural Resources  The country's principal natural resource is arable land (25% of the total land area is under cultivation). It boasts one of the largest irrigation systems in the world. Agriculture accounts for about 26% of GDP and employs more than 45% of the labor force. The most important crops include wheat, cotton, and rice, which together account for almost 70% of the value of total crop output. Intensive farming practices have enabled Pakistan to become a net food exporter. Pakistan exports rice, fish, fruits, and vegetables, and imports wheat, vegetable oil, and sugar.  The economic importance of agriculture has declined significantly since independence (when its share in GDP was around 53%). Moreover, in recent years, severe environmental pressures (floods, droughts, and crop disease) have diminished agricultural production; in 1993, crop output declined by 3.9%. As a result, the government introduced agriculture assistance policies, such as increasing support prices for many agricultural commodities, expanding the availability of agricultural credit, and providing incentives for the import of agricultural machinery.  Pakistan has extensive energy resources, including fairly sizable natural gas reserves, some proven oil reserves, and large hydropower potential. However, the exploitation of energy resources has been slow due to a shortage of capital and domestic political constraints. For instance, domestic petroleum production totals only about half the country's oil needs. Moreover, despite plans to build several large power plants in the coming years, Pakistan's energy grid is unable to meet the country's growing needs, creating an energy gap which represents a major bottleneck to economic growth. The need to import oil also contributes to Pakistan's persistent trade deficits and the depletion of foreign exchange. Consequently, the government has made development of the energy sector its first economic priority. In 1993, 21% of the total public sector development budget was allocated to energy. The latest policy aims to develop new thermal and hydropower generation capacity through private sector investment.  Industry  Pakistan's industry accounts for about 19% of its GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 50% of total exports (FY 1993). Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery, and food processing. The public sector produced about 30% of FY 1991 manufacturing output. However, its share is on the decline because of ongoing government efforts to privatize large-scale parastatal units. In the face of an increasing trade deficit, the government hopes to diversify the country's industrial base and bolster export industries.  Foreign Trade and Aid  Weak world demand for its exports, combined with disastrous floods and domestic political uncertainty in 1993 weakened Pakistan's balance of payments, which had improved significantly by 1992. In 1993, the current account deficit increased to $3.7 billion, compared to $1.5 billion in 1991, but declined again to about $2.4 billion in 1994. Pakistan's exports continue to be dominated by cotton textiles and apparel, despite government diversification efforts. Major imports include petroleum and petroleum products, edible oil, wheat, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products. Amortization of Pakistan's large, but manageable, external debt (about $19.2 billion) consumed about 23% of export earnings in 1993.  Pakistan receives about $2 billion per year in loan/grant assistance from international financial institutions (e.g., the IMF, the World Bank, and Asian Development Bank) and bilateral donors. However, all new U.S. economic assistance to Pakistan was suspended after October 1990, when then-President Bush could no longer certify under the Pressler amendment to the Foreign Assistance Act [Section 620E(e)] "that Pakistan does not possess a nuclear explosive device and that the proposed assistance package reduces significantly the risk that Pakistan will possess a nuclear explosive device." Increasingly, the composition of assistance to Pakistan has shifted away from grants toward loans repayable in foreign exchange.   FOREIGN RELATIONS  Pakistan is a non-aligned country, a prominent member of the Organization of the Islamic Conference (OIC), and an active member of the United Nations. In 1989, Pakistan rejoined the British Commonwealth. Its foreign policy encompasses historically difficult relations with India, a desire for a stable Afghanistan, long-standing close relations with China, extensive security and economic interests in the Persian Gulf (including cordial relations with Iran), and wide-ranging bilateral relations with the United States and other western countries.   India  Since partition, relations between Pakistan and India have been characterized by rivalry and suspicion. Although many issues divide the two countries, the most sensitive one since independence has been the status of Kashmir.  At the time of partition, the princely state of Kashmir, though ruled by a Hindu maharajah, had an overwhelmingly Muslim population. When the maharajah hesitated in acceding to either Pakistan or India in 1947, some of his Muslim subjects, aided by tribesmen from Pakistan, revolted in favor of joining Pakistan. In exchange for military assistance in containing the revolt, the Kashmiri ruler offered his allegiance to India. Indian troops occupied the eastern portion of Kashmir, including its capital, Srinigar, while the western half came under Pakistani control.  India addressed this dispute in the United Nations on January 1, 1948. One year later, the UN arranged a cease-fire along a line dividing Kashmir but leaving the northern end of the line undemarcated and the Vale of Kashmir (with the majority of the population) under Indian control. India and Pakistan agreed to hold a UN-supervised plebiscite to determine the state's future, but India did not fulfill this commitment.  Full-scale hostilities erupted in September 1965, when India alleged that insurgents trained and supplied by Pakistan were operating in India-controlled Kashmir. Hostilities ceased 3 weeks later, following mediation efforts by the UN and interested countries. In January 1966, Indian and Pakistani representatives met in Tashkent, U.S.S.R., and agreed to attempt a peaceful settlement of Kashmir and their other differences.  Following the 1971 Indo-Pak conflict, President Zulfiqar Ali Bhutto and Indian Prime Minister Indira Gandhi met in the mountain town of Simla, India, in July 1972. They agreed to a line of control in Kashmir resulting from the December 17, 1971, cease-fire, and settlement of bilateral disputes through peaceful means. In 1974, Pakistan and India agreed to resume postal and telecommunications linkages and measures to facilitate travel. Trade and diplomatic relations were restored in 1976, after a hiatus of 5 years.  India's self-proclaimed "peaceful nuclear explosion" in 1974 generated great uncertainty in Pakistan, and is generally acknowledged to have been the impetus for Pakistan's nuclear weapons research program. In 1983, the Pakistani and Indian Governments accused each other of aiding separatists in their respective countries, i.e., Sikhs in India's Punjab State and Sindhis in Pakistan's Sindh Province. Indian and Pakistani troops engaged in combat in the remote Siachen Glacier region. Meanwhile, the Indian Government intensified its criticism of Pakistan's clandestine nuclear weapons program.  Tensions diminished after Rajiv Gandhi became Prime Minister in November 1984 and after a group of Sikh hijackers was brought to trial by Pakistan in March 1985. In December 1985, President Zia and Prime Minister Gandhi pledged not to attack each other's nuclear facilities. A formal "no attack" agreement was signed in January 1991. In early 1986, the Indian and Pakistani governments began high-level talks to resolve the Siachen Glacier border dispute and to improve trade.  Bilateral tensions increased in early 1990, when Kashmiri militants challenged the authority of the Indian Government. Subsequent high-level bilateral meetings relieved the tensions between India and Pakistan, but relations worsened again after the destruction of the Ayodhya mosque by Hindu extremists in December 1992 and terrorist bombings in Bombay in March 1993. Talks between the foreign secretaries of both countries in January 1994 were inconclusive. Therefore, tensions remain, particularly over Kashmir, nuclear and ballistic missile proliferation and other defense and internal security matters, communal concerns, and economic issues. Until the Kashmir dispute is resolved, bilateral relations will remain tense.  Afghanistan  Following the 1979 Soviet invasion of Afghanistan, the Pakistani Government played a vital role in supporting the Afghan Resistance movement and assisting Afghan refugees. After the Soviet withdrawal in February 1989, Pakistan, with cooperation from the world community, continued to provide extensive support for displaced Afghans. The United States has provided nearly $500 million in humanitarian assistance for Afghan refugees in Pakistan, mainly through multilateral organizations. In 1994, more than 1.4 million Afghan refugees remained in Pakistan, as fighting between rival factions kept large parts of the country in a state of warfare.  The Former Soviet Union  Under military leader Ayub Khan, Pakistan sought to improve relations with the Soviet Union; trade and cultural exchanges between the two countries increased between 1966 and 1971. However, Soviet criticism of Pakistan's position in the 1971 war with India weakened bilateral relations; and many Pakistanis believed that the August 1971 Indo-Soviet Treaty of Friendship, Peace and Cooperation encouraged Indian belligerency. Subsequent Soviet arms sales to India, amounting to billions of dollars on concessional terms, reinforced this argument.  During the 1980s, tensions increased between the Soviet Union and Pakistan, because of the latter's key role in organizing political and material support for the Afghan rebel forces. The withdrawal of Soviet forces from Afghanistan and the collapse of the former Soviet Union have resulted in significantly improved bilateral relations.  People's Republic of China  In 1950, Pakistan was among the first countries to recognize the People's Republic of China (P.R.C.). Following the Sino-Indian hostilities of 1962, Pakistan's relations with China became stronger, and the two countries since have regularly exchanged high-level visits resulting in a variety of agreements. China has provided economic, military, and technical assistance to Pakistan.  Favorable relations with China have been essential to Pakistan's foreign policy. The P.R.C. strongly supported Pakistan's opposition to Soviet involvement in Afghanistan and is perceived by Pakistan as a regional counterweight to India and Russia.  Iran and the Persian Gulf  Historically, Pakistan has had close geopolitical and cultural-religious linkages with Iran. Although the two countries enjoy cordial relations, Pakistan's relations with Iran are tempered by its extensive relations with Saudi Arabia and other Arab Persian Gulf states.  Despite popular support for Iraq in 1991, the Pakistani Government supported the coalition against Iraq's invasion of Kuwait and sent 11,600 troops to defend Saudi Arabia. Pakistan provides military personnel to strengthen Gulf state defenses and to reinforce its own security interests in the area. Nevertheless, Pakistan pursues an active diplomatic relationship with Iran.   U.S.-PAKISTAN RELATIONS  The United States and Pakistan established diplomatic relations in 1947. The U.S. agreement to provide economic and military assistance to Pakistan and the latter's involvement in the Baghdad Pact/CENTO and SEATO strengthened relations between the two nations. However, the U.S. suspension of military assistance during the 1965 Indo-Pakistan war generated a widespread feeling in Pakistan that the United States was not a reliable ally. Even though the U.S. suspended military assistance to both countries involved in the conflict, the suspension of aid affected Pakistan much more severely. Gradually, relations improved and arms sales were renewed in 1975.  In November 1979, false rumors that the United States had participated in the seizure of the grand mosque in Mecca provoked a mob attack on the U.S. Embassy in Islamabad. The slow reaction of police authorities allowed time for the embassy to be burned. Six persons died, four of them U.S. nationals. The American cultural centers in Rawalpindi and Lahore also were destroyed. At the time of the incident, U.S. assistance to Pakistan also had been suspended because of concerns about Pakistan's nuclear program. Consequently, relations between the countries weakened considerably.  The Soviet invasion of Afghanistan in December 1979 highlighted the common interest of Pakistan and the U.S. in peace and stability in South Asia. In 1981, the U.S. and Pakistan agreed on a $3.2 billion military and economic assistance program aimed at helping Pakistan deal with the heightened threat to security in the region and its economic development needs.  Recognizing national security concerns and accepting Pakistan's assurances that it did not intend to construct a nuclear weapon, Congress waived restrictions (Symington amendment) on military assistance to Pakistan. In March 1986, the two countries agreed on a second multi-year (FY 1988-93) $4 billion economic development and security assistance program. Since October 1, 1990, the United States has suspended all economic and military assistance to Pakistan because of concerns about the development of Pakistan's nuclear program. Since then, despite constraints resulting from the U.S. sanctions against Pakistan's nuclear capabilities, both countries continue to cooperate in areas of common interest such as contributing to UN peace-keeping missions in Somalia and toward achieving a political settlement in Afghanistan.  Principal U.S. Embassy Officials  Ambassador--John C. Monjo Deputy Chief of Mission--John C. Holzman Defense Attache--Col. John B. Longenecker Defense Representative--Frederick R. Wilhelm Director, USAID Mission--John S. Blackton Counselor for Political Affairs--Eric Kunsman Counselor for Economic Affairs--Rafael L. Marin Public Affairs Officer--Ray Peppers Consul--June H. Kunsman Consul General, Karachi--Mary Gin Kennedy Consul General, Lahore--Eric Tunis Principal Officer, Peshawar--Richard Smyth  The U.S. embassy is located at the Diplomatic Enclave, Ramna 5, Islamabad [tel. (92)-(51)-826161 through 79; telex 82-5-864].   (###) Published by the U.S. Department of State, Office of Public Communication Washington, DC  April 1995   Managing Editor--Peter A. Knecht  Department of State Publication 7748 Background Notes series This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20502   (###)</text>
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        <text>U.S. Department of State Background Notes:  Pakistan, March 1995 Bureau of Public Affairs  March 1995Official Name:   Islamic Republic of Pakistan  PROFILE  Geography  Area: 803,943 sq. km. (310,527 sq mi.); about twice the size of California.  Cities: Capital--Islamabad and adjacent Rawalpindi comprise a national capital area with a combined population of 1.5 million; Karachi 10 million; Lahore 5 million; Faisalabad 2 million.  People  Nationality: Noun and adjective--Pakistan(i).  Population (1994 est.): 128 million.  Annual growth rate (1993): 3%.  Density: 150 per sq. km. (389 per sq. mi.).  Ethnic groups: Punjabi, Sindhi, Pathan, Baloch, Muhajir (i.e., Urdu-speaking immigrants from India).  Religions: Muslim 97%; small minorities of Christians, Hindus, and others.  Languages: Urdu (national and official), English (official), Punjabi, Sindhi, Pushtu, Baloch.  Education: Literacy (1993)--26%.  Health: Infant mortality rate (1993)--97/1,000. Life expectancy (1993)--men 59 yrs., women 59 yrs.  Work force: Agriculture--48%. Services--39%. Industry--13%.  Government  Type: Parliamentary in a federal setting.  Independence: August 14, 1947. Branches: Executive--president with constitutional authority, prime minister, cabinet. Legislative--National Assembly and Senate and provincial assemblies. Judicial--provincial high courts, Supreme Court, Federal Islamic Court. Political parties: The Pakistan People's Party (PPP) and the Pakistan Muslim League/Nawaz group (PML/N) are the most important on the national level. Other significant parties include the Pakistan Muslim League/Junejo group (PML/J), the Jamaat-i-Islami (JI), the Awami National Party (ANP), and the Muhajir Qaumi Movement (MQM). Suffrage: Universal at 21, except in the Federally Administered Tribal Areas and Northern Areas. Religious minorities vote for reserved seats. Political subdivisions: Each of the four provinces--Punjab, Sindh, Northwest Frontier, Balochistan--have a parliamentary system; Northern Areas and Federally Administered Tribal Areas (FATA) enjoy considerable autonomy; Federal Capital.  Economy  GDP (1993-94): $52 billion.  Real annual growth rate 1993-94: 3%.  Per capita GDP (1993-94):  $414.  Natural resources: Arable land, natural gas, limited petroleum, substantial hydropower potential, coal, iron ore. Agriculture: Products--wheat, cotton, rice, sugarcane, tobacco. Industry: Types--textiles, fertilizer, steel products, chemicals, food processing, oil and gas products, cement. Trade (FY 1993-94): Exports--$6.6 billion: raw cotton, rice, cotton yarn, textiles, fruits, vegetables. Major partners--Japan, U.S., U.K., Saudi Arabia, Germany. Imports--$8.8 billion: wheat, crude oil, cooking oil, fertilizers, machinery. Major partners--Japan, U.S., Saudi Arabia, Malaysia, U.K., Sri Lanka. Official exchange rate (1994): about 31 rupees=U.S.$1.   PEOPLE  The majority of Pakistan's population lives along the Indus River valley, and along an arc formed by the cities of Faisalabad, Lahore, Rawalpindi/Islamabad, and Peshawar.  Although the official language of Pakistan is Urdu, it is spoken as a first language by only 9% of the population; 65% speak Punjabi, 11% Sindhi, and 24% other languages (Pushtu, Saraiki, Baloch, Brahui). Urdu, Punjabi, Pushtu, and Baloch are Indo-European languages; Brahui is believed to have Dravidian (pre-Indo-European) origins. English is widely used within the government, the officer ranks of the military, and in many institutions of higher learning.   HISTORY  Archeology has revealed impressive ruins of a 4,500-year old urban civilization in Pakistan's Indus River valley. The reason for the total collapse of this highly developed culture is unknown. A major theory is that it was crushed by successive invasions (circa 2,000 B.C. and 1,400 B.C.) of Aryans, Indo-European warrior tribes from the Caucasus region in what is now Russia. The Aryans were followed in 500 B.C. by Persians and, in 326 B.C., by Alexander the Great.  Pakistan's Islamic history began with the arrival of Muslim traders in the 8th century A.D. During the 16th and 17th centuries, the Mongols dominated most of South Asia with an empire marked both by administrative effectiveness and cultural refinement.  British traders arrived in South Asia in 1601, but the British Empire did not consolidate control of the region until the latter half of the 18th century. After 1850, the British, or those influenced by them, governed virtually the entire subcontinent.  In the early 20th century, South Asian leaders began to agitate for a greater degree of autonomy. Growing concern about Hindu domination of the Indian National Congress, the movement's foremost organization, led Muslim leaders to form the All-India Muslim League in 1906. In 1913, the League formally adopted the same objective as the Congress--self-government for India within the British Empire--but Congress and the League were unable to agree on a formula that would ensure the protection of Muslim religious, economic, and political rights.  Pakistan and Partition  The idea of a separate Muslim state emerged in the 1930s. On March 23, 1940, Muhammad Ali Jinnah, leader of the Muslim League, formally endorsed the "Lahore Resolution," calling for the creation of an independent state in regions where Muslims constituted a majority.  At the end of World War II, the United Kingdom moved with increasing urgency to grant India independence. However, the Congress Party and the Muslim League could not agree on the terms for a constitution or establishing an interim government. In June 1947, the British Government declared that it would bestow full dominion status upon two successor states--India and Pakistan. Under this arrangement, the various princely states could freely join either India or Pakistan. Consequently, a bifurcated Muslim nation separated by more than 1,600 kilometers (1,000 mi.) of Indian territory emerged when Pakistan became a self-governing dominion within the Commonwealth on August 14, 1947. West Pakistan comprised the contiguous Muslim-majority districts of present-day Pakistan; East Pakistan consisted of a single province, which is now Bangladesh.  After Independence  With the death in 1948 of its first head of state, Muhammad Ali Jinnah, and the assassination in 1951 of its first Prime Minister, Liaqat Ali Khan, political instability and economic difficulty became prominent features of post-independence Pakistan. After Pakistan's loss in the 1965 war against India, military leader Ayub Khan's power declined. Subsequent political and economic grievances inspired agitation movements which compelled his resignation in March 1969.  During the brief tenure of Gen. Yahya Khan as Martial Law Administrator, elections were held in 1970 in which the Awami League Party won an absolute majority in parliament, capturing 167 out of 169 seats from East Pakistan. Frictions between West and East Pakistan precluded the convening of parliament and culminated in the 1971 army crackdown in East Pakistan, including the banning of the Awami League and the arrest of its leader, Sheikh Mujibur Rahman. Many of his aides and several million Bengali refugees fled to India, where they established a provisional government. Tensions escalated, and hostilities broke out between India and Pakistan in November 1971. The combined Indian-Bengali forces quickly overwhelmed Pakistan's army in the East. By the time Pakistan's forces surrendered on December 16, 1971, India had acquired control of a large area of East Pakistan.  Zulfiqar Ali Bhutto, whose Pakistan People's Party (PPP) had won a majority of the seats in West Pakistan in the 1970 elections, replaced Yahya Khan. East Pakistan became the independent state of Bangladesh.  Bhutto moved decisively to restore national confidence and pursued an active foreign policy, taking a leading role in Islamic and Third World forums. Although Pakistan did not formally join the Non-Aligned Movement until 1979, the position of the Bhutto Government coincided largely with that of the non-aligned nations.  Domestically, Bhutto pursued a populist agenda and nationalized major industries and the banking system. In 1973, he promulgated a new constitution accepted by most political elements and relinquished the presidency to become prime minister.  Although Bhutto continued his populist and socialist rhetoric, he increasingly relied on Pakistan's urban industrialists and rural landlords. Over time the economy stagnated, largely as a result of the dislocation and uncertainty produced by Bhutto's frequently changing economic policies.  When Bhutto proclaimed his own victory in the March 1977 national elections, the opposition Pakistan National Alliance (PNA) denounced the results as fraudulent and demanded new elections. Bhutto resisted and, after endemic political violence in Pakistan, arrested the PNA leadership.  1977-1985 Martial Law  In the face of increasing anti-government unrest, the army grew restive. On July 5, 1977, the military removed Bhutto from power and arrested him, declared martial law, and suspended portions of the 1973 constitution. Chief of Army Staff Gen. Muhammad Zia ul-Haq became Chief Martial Law Administrator and promised to hold new elections within 3 months.  Zia released Bhutto and asserted that he could contest new elections scheduled for October 1977. However, after it became clear that Bhutto's popularity had survived his government, Zia postponed the elections and began criminal investigations of the senior PPP leadership. Subsequently, Bhutto was convicted and sentenced to death for alleged conspiracy to murder a political opponent. Despite international appeals on his behalf, Bhutto was hanged on April 6, 1979.  Disregarding his promise to hold elections, Zia moved to institutionalize his own regime. Following the resignation of President Choudhury in September 1979, he assumed the presidency and called for elections in November.  However, as the elections neared, it became clear that the PNA had fallen into disarray and the PPP was once again the strongest party nationwide. Fearful of a PPP victory, Zia banned political activity in October 1979 and postponed the national elections.  In 1980, most center and left parties, led by the PPP, formed the Movement for the Restoration of Democracy [MRD]. The MRD demanded Zia's resignation, an end to martial law, new elections, and restoration of the constitution as it existed before Zia's takeover. In early December 1984, President Zia proclaimed a national referendum for December 19 on his "Islamization" program. He implicitly linked approval of "Islamization" with a mandate for his continued presidency. Zia's opponents, led by the MRD, boycotted the elections. When the government claimed a 63% turnout, with more than 90% approving the referendum, many observers questioned these figures.  President Zia then announced national and provincial assembly elections on a non-party basis for February 1985. An attempt by the MRD to boycott these elections largely failed; numerous politicians abandoned their parties in order to stand for office. The elections were generally regarded as legitimate because of the 53% voter turnout and relative absence of fraud. The failure of the boycott accentuated divisions within the MRD and left Zia's opposition in further disarray.  On March 3, 1985, President Zia proclaimed constitutional changes designed to increase the power of the president vis-a-vis the prime minister (under the 1973 constitution the president had been mainly a figurehead). Subsequently, Zia nominated Muhammad Khan Junejo, a Muslim League member, as Prime Minister. The new National Assembly unanimously endorsed Junejo as Prime Minister and, in October 1985, passed Zia's proposed eighth amendment to the constitution, legitimizing the actions of the martial law government, exempting them from judicial review (including decisions of the military courts), and enhancing the powers of the president.  The Return of Democracy  On December 30, 1985, President Zia removed martial law and restored constitutional rights safeguarded under the constitution. He also lifted the Bhutto Government's declaration of emergency powers. The first months of 1986 witnessed a rebirth of political activity throughout Pakistan.  All parties--including those continuing to deny the legitimacy of the Zia/Junejo Government--were permitted to organize and hold rallies. In April 1986, PPP leader Benazir Bhutto, daughter of Zulfiqar Ali Bhutto, returned to Pakistan from exile in Europe.  Following the lifting of martial law, Prime Minister Junejo attempted to make his Pakistan Muslim League (PML) a political party capable of competing with the PPP and its MRD allies on a national level. His increasing political independence and differences with Zia over Afghan policy resulted in tensions between them. Zia was a firm advocate of the Afghan Resistance, which had been fighting Soviet forces since they invaded Afghanistan in 1979; Junejo repeatedly expressed his concern over the effect the conflict and the presence of some 3 million Afghan refugees had on Pakistan's internal security.  On May 29, 1988, President Zia dismissed the Junejo government and called for November elections. In June, Zia proclaimed the supremacy in Pakistan of Shari'a (Islamic law), by which all civil law had to conform to traditional Muslim edicts.  On August 17, a plane carrying President Zia, American Ambassador Arnold Raphel, U.S. Brig. Gen. Herbert Wassom, and 28 Pakistani military officers crashed on a return flight from a military equipment trial near Bahawalpur, killing all of its occupants. In accordance with the constitution, Chairman of the Senate Ghulam Ishaq Khan became Acting President.  Ghulam Ishaq Khan announced that the elections, scheduled for November, would take place. After winning 93 of the 205 National Assembly seats contested, the PPP, under the leadership of Benazir Bhutto, formed a coalition government with several smaller parties, including the Muhajir Qaumi Movement (MQM). The Islamic Democratic Alliance (IJI), a multi-party coalition led by the PML and including religious right parties such as the Jamaat-i-Islami (JI), won 55 National Assembly seats.  Differing interpretations of constitutional authority, debates over the powers of the central government relative to those of the provinces, and the antagonistic relationship between the Bhutto administration and opposition governments in Punjab and Balochistan seriously impeded social and economic reform programs. Ethnic conflict, primarily in Sindh province, exacerbated these problems. A fragmentation in the governing coalition and the military's reluctance to support an apparently ineffectual and corrupt government were accompanied by a significant deterioration in law and order.  In August 1990, President Khan, citing his powers under the eighth amendment to the constitution, dismissed the Bhutto Government, dissolved the national and provincial assemblies, and announced new elections to be held in October. He appointed opposition leader Ghulam Mustafa Jatoi as caretaker Prime Minister and appointed caretaker governments in each of the four provinces.  The October elections, observed by several international organizations, confirmed the political ascendancy of the IJI. In addition to a two-thirds majority in the National Assembly, the alliance acquired control of all four provincial parliaments and enjoyed the support of the military and of President Khan. Muhammad Nawaz Sharif, as leader of the PML, the most prominent party in the IJI, was elected Prime Minister by the National Assembly.  Sharif emerged as the most secure and powerful Pakistani Prime Minister since the mid-1970s. Under his rule, the IJI achieved several important political victories. The implementation of Sharif's economic reform program, involving privatization, de-regulation, and encouragement of private sector economic growth, greatly improved Pakistan's economic performance and business climate. The passage into law in May 1991 of a Shariat bill, providing for widespread Islamization, legitimized the IJI government among much of Pakistani society. The military's participation in the Allied forces during the Gulf War improved Pakistan's relations within the world community.  However, Nawaz Sharif was not able to reconcile the different objectives of the IJI's constituent parties. The largest fundamentalist party, Jamaat-i-Islami (JI), abandoned the alliance because of its perception of PML hegemony. The regime was weakened further by the military's suppression of the MQM, which had entered into a coalition with the IJI to contain PPP influence, and allegations of corruption directed at Nawaz Sharif.  Prime Minister Nawaz Sharif wanted to place his own candidate in the vacant chief of army staff position, against the wishes of both the army and the president. Considering Sharif's intentions a direct threat to his political authority, President Khan used his constitutional privilege as commander-in-chief effectively to place his candidate, General Waheed, in the position.  Despite this setback, Nawaz Sharif intensified his political confrontation with Ghulam Ishaq Khan. The prime minister appealed for the renunciation of the eighth constitutional amendment (created under Zia in 1985), which conferred upon the president the power to dismiss the government. Khan, hopeful for a second five-year term, argued that the eighth amendment was an important barrier to the ambitions of the prime minister.  After PML Chairman Junejo's death in March 1993, Sharif loyalists unilaterally nominated him as the next party leader. Consequently, the PML divided into the PML Nawaz (PML/N) group, loyal to the prime minister, and the PML Junejo group (PML/J), supportive of the president.  In April 1993, President Khan, citing "maladministration, corruption, and nepotism" and espousal of political violence, dismissed the Sharif Government. The consequent interim government led by Balakh Sher Mazari experienced a problem of credibility because of allegations of corruption against its members.  The Supreme Court reinstated the Sharif regime in May 1993. However, President Khan continued his efforts to subvert the government of Prime Minister Sharif by engineering the dissolution of the Punjab and NWFP assemblies. The continued confrontation between Sharif and Khan polarized Pakistani politics and threatened to undermine government institutions. Finally, under a compromise brokered by the military, both President Khan and Prime Minister Sharif resigned in July 1993. Wasim Sajjad, who was serving as Senate Chairman, was appointed interim President.  An interim government, headed by Moeen Qureshi, a former World Bank vice president, took office with a mandate to hold national and provincial parliamentary elections in October. Despite its brief term, the Qureshi Government adopted political, economic, and social reforms that generated considerable domestic support and foreign admiration.  In the October 1993 elections, the PPP won a plurality of seats in the National Assembly and Benazir Bhutto was asked to form a government. However, because it did not acquire a majority in the National Assembly, the PPP's control of the government depended upon the continued support of numerous independent parties, particularly the PML/J. The unfavorable circumstances surrounding PPP rule--the imperative of preserving a coalition government, the formidable opposition of Nawaz Sharif's PML/N movement, and the insecure provincial administrations--presented significant difficulties for the government of Prime Minister Bhutto. On the other hand, the election of Prime Minister Bhutto's close associate, Farooq Leghari, as President in November 1993 gave her a stronger power base.  During the past 15 months in office, Prime Minister Bhutto's government has set out clear policies to deal with key Pakistani priorities, such as the economy, narcotics, and human rights.  The government's economic plan received strong support from the international community in the form of an extended fund facility from the IMF in 1994.  Pakistan promulgated comprehensive counter-narcotics legislation in early 1995 and stepped up efforts to eradicate poppy production in the NWFP.  In an effort to improve respect for human rights, the Government created a human rights cell in the Ministry of Interior.   GOVERNMENT  The Pakistan constitution of August 1973, amended substantially in 1985 under Zia, provides for a president (chief of state) elected for a five-year term by an electoral college, consisting of the Senate, National Assembly, and the members of the four provincial assemblies; and a prime minister (head of government) elected by the National Assembly in a special session. After the election, the president invites the prime minister to create a government. The constitution permits a vote of "no confidence" against the prime minister by a majority of the entire National Assembly, provided that it is not in the annual budget session.  The National Assembly--217 members (10 of whom represent minorities) elected directly by universal adult suffrage--has a 5-year term subject to dissolution by the president. In 1990, a constitutional provision which established 20 reserved seats for women expired and has not been renewed. The Senate, not subject to dissolution, consists of 87 members elected indirectly for 6 years (19 from each of the provincial assemblies; 8 from the Federally Administered Tribal Areas; and 3 from the Federal Capital Area). One-third of the Senate members stand for reelection every 2 years.  Two lists--federal and concurrent--designate jurisdiction on legislative subjects; all residual powers belong to the provinces. According to the 1973 constitution, the president, after consulting with the prime minister, appoints provincial governors, who act on the advice of the cabinet or chief minister of the province.  The Supreme Court is Pakistan's highest court. The president appoints the Chief Justice, and they together determine the other judicial appointments. Each province has a high court, the justices of which are appointed by the president after conferring with the Chief Justice of the Supreme Court, the provincial governor, and the provincial Chief Justice. During the martial law period, the powers and autonomy of the civilian judiciary were curtailed. Several martial law decrees extended the jurisdiction of military tribunals and prohibited the civilian judiciary from reviewing the procedures and decisions of military courts.  National Security  Pakistan's 800,000-member armed forces, the world's 8th largest, are well trained and disciplined. Pakistan operates military equipment from several foreign sources, among which the United States, China, France, and the United Kingdom are the most significant. Much of this equipment is obsolete. The government's extensive efforts to modernize Pakistan's defense capability are frustrated by the country's limited industrial base and fiscal resources.  Until 1990, a portion of U.S. aid to Pakistan was used to help modernize Pakistan's conventional defensive capability. The United States allocated about 40% of its assistance package to Pakistan to nonreimbursable credits for military purchases; the remainder of the program was devoted to economic assistance. U.S. Government military and economic transfers to Pakistan, excepting counter-narcotics assistance and disaster relief, were suspended in October 1990 due to the administra- tion's inability to certify under the Pressler Amendment that Pakistan did not possess a nuclear weapons program.  Principal Government Officials  President--Farooq Ahmad Khan Leghari Prime Minister--Benazir Bhutto Minister of State for Foreign Affairs--Sardar Assef Ali Ambassador to the U.S.--Maleeha Lodhi Ambassador to the UN--Ahmad Kamal  Pakistan maintains an embassy in the United States at 2315 Massachusetts Avenue, N.W., Washington, DC 20008 (tel. [phone]).   </text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  OMAN, DECEMBER 1994PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSDecember 1994Official Name: Sultanate of OmanPROFILEGeographyArea:  212,457 sq. km. (82,030 sq. mi.); about the size ofColorado.  It is bordered on the north by the United ArabEmirates (U.A.E.), on the northwest by Saudi Arabia, and onthe southwest by the Republic of Yemen.  The Omani coastlinestretches 2,092 km.Cities:  Capital--Muscat.  Other cities--Matrah, Ruwi,Nizwa, Salalah, Sohar.Terrain:  Mountains, plains, and arid plateau.Climate:  Hot, humid along the coast; hot, dry in theinterior; summer monsoon in far south.PeopleNationality:  Noun--Oman.  Adjective--Omani.Population:  1.6 million (1993).Annual growth rate:  3.6% (est.).Ethnic groups:  Arab, Baluchi, East African (Zanzabari),South Asian (Indian, Pakistani, Bangladeshi).Religions:  Ibadhi and Sunni Muslim:  95%, Shia Muslim,Hindu.Languages:  Arabic (official), English, Baluchi, Urdu, Hindiand Indian dialects.Education:  Literacy--41% ( est.).Health:  Infant mortality rate (est.)--33/1,000.  Life expectancy --66 years.Work force:  750,000.  Agriculture and fishing--50%.GovernmentType:  Monarchy.Constitution:  none.Branches:  Executive--sultan.  Legislative--Majlis Ash-Shura(Consultative Council).  Judicial--civil courts handlecriminal cases; Shari'a (Islamic law) courts oversee familylaw.Political parties:  None.Suffrage:  None.Administrative subdivisions:  eight administrative regions:Muscat, Al-Batinah, Musandam, A'Dhahirah, A'Dakhliya,A'Shariqiya, Al Wusta, Dhofar Governorate.  There are 59districts (wilayats).EconomyGDP (1992):  $11.6 billion.Per capita GDP:  $5,800.Natural resources:  Oil, natural gas, copper, marble,limestone, gypsum, chromium.  Agriculture and fisheries:(3.66% of GDP).Agriculture:  Products--dates, limes, bananas, mangoes,alfalfa, other fruits and vegetables.  Fisheries-- Kingfish,tuna, other fish, shrimp, lobster, abalone.Industry:  Types--crude petroleum over 750,000 b/d;construction, petroleum refinery, copper mines and smelter,cement and various light industries.Trade (1992):  Exports--$5.5 billion;  Oil--83%.  Majormarkets--Japan (35%), South Korea (21%), Singapore (7%),U.S. (6%), Taiwan (4%).  Imports-- $3.6 billion:  machinery,transportation equipment, manufactured goods, food,livestock, lubricants.  Major suppliers--Japan 21%, U.A.E.20%, U.K. 10%, U.S. 7%.Exchange rate (1994):   38 Rials= U.S.$1.PEOPLEAbout 50% of the population lives in Muscat and the Batinahcoastal plain northwest of the capital; about 200,000 livein the Dhofar (southern) region,   and about 30,000 live inthe remote Musandam peninsula on the Strait of Hormuz.  Atleast 550,000 expatriates live in Oman, of whom about455,000 are guest workers from South Asia, Egypt, Jordan,and the Philippines.Since 1970, the government has given especially highpriority to education to develop a domestic work force,which the government considers a vital factor in thecountry's economic and social progress.  In 1986, Oman'sfirst university, Sultan Qaboos University, opened.  Otherpost-secondary institutions include a technical college,banking institute, teachers training college, and healthsciences institute.   As many as 200 scholarships areawarded each year for study abroad.HISTORYMuscat and Oman (as the country was called before 1970) wasconverted to Islam in the seventh century A.D., during thelifetime of Muhammad.  Ibadhism, a form of Islam tracing itsroots to the Kharijite movement, became the dominantreligious sect in Oman by the eighth century.  Contact withEurope was established in 1508, when the Portugueseconquered parts of the coastal region.  Portugal's influencepredominated for more than a century, with only a shortinterruption by the Turks.  Fortifications built during thePortuguese occupation can still be seen at Muscat.After the Portuguese were expelled in 1650 and whileresisting Persian attempts to establish hegemony, Muscat andOman extended its conquests to Zanzibar (now part ofTanzania), other parts of the eastern coast of Africa, andportions of the southern Arabian peninsula.  During thisperiod, political leadership shifted from the Ibadhi imams,who were elected religious leaders, to hereditary sultanswho established their capital in Muscat.  The Muscat rulersestablished trading posts on the Persian coast (now Iran)and also exercised a measure of control over the Makrancoast (now Pakistan) of mainland Asia.  By the early 19thcentury, Muscat and Oman was the most powerful state inArabia and on the East African coast.Muscat and Oman was the object of Franco-British rivalrythroughout the 18th century.  The British developed thestronger position in 1908 through an agreement offriendship.  During the 19th century, Muscat and Oman andthe United Kingdom concluded several treaties of friendshipand commerce.  Their traditional association was confirmedin 1951 through a new treaty of friendship, commerce, andnavigation by which the United Kingdom recognized thesultanate as a fully independent state.When Sultan Sa'id Sayyid died in 1856, his sons quarreledover his succession.  As a result of this struggle, theempire--through the mediation of the British Governmentunder the "Canning Award"--was divided in 1861 into twoseparate principalities--Zanzibar, with its East Africandependencies, and Muscat and Oman.  Zanzibar paid an annualsubsidy to Muscat and Oman until its independence in early1964.During the late 19th and early 20th centuries, the sultan inMuscat faced rebellion by members of the Ibadhi sectresiding in the interior who wanted to be ruled exclusivelyby their religious leader, the Imam of Oman.  This conflictwas resolved temporarily by the Treaty of Seeb, whichgranted the imam autonomous rule in the interior, whilerecognizing the nominal sovereignty of the sultan.The conflict flared up again in 1954, when the new imam leda sporadic five-year rebellion against the sultan's effortsto extend government control into the interior.  Theinsurgents were defeated in 1959 with British help.  Thesultan then terminated the Treaty of Seeb and voided theoffice of the imam.  In the early-1960s, the exiled imamobtained support from Saudi Arabia and other Arabgovernments, but this support ended in the 1980s.In 1964, a separatist revolt began in Dhofar Province.Aided by communist and leftist governments such as theformer South Yemen (People's Democratic Republic of Yemen),the rebels formed the Dhofar Liberation Front, which latermerged with the Marxist-dominated Popular Front for theLiberation of Oman and the Arab Gulf (PFLOAG).  The PFLOAG'sdeclared intention was to overthrow all traditional ArabGulf regimes in the Persian Gulf.In mid-1974, PFLOAG shortened its name to the Popular Frontfor the Liberation of Oman (PFLO) and embarked on apolitical rather than a military approach to gain power inthe other Persian Gulf states, while continuing theguerrilla war in Dhofar.Sultan Qaboos bin Sa'id assumed power on July 24, 1970, in apalace coup directed against his father, Sa'id bin Taymur,who later died in exile in London.  The new sultan wasconfronted with insurgency in a country plagued by endemicdisease, illiteracy, and poverty.One of the new sultan's first measures was to abolish manyof his father's harsh restrictions, which had causedthousands of Omanis to leave the country, and offer amnestyto opponents of the previous regime, many of whom returnedto Oman.  He also established a modern government structure;and launched a major development program to upgradeeducational and health facilities, build a moderninfrastructure, and develop the country's resources.In an effort to curb the Dhofar insurgency, Sultan Qaboosexpanded and re-equipped the armed forces and grantedamnesty to all surrendered rebels while vigorouslyprosecuting the war in Dhofar.  He obtained direct militarysupport from Iran and Jordan. By early-1975, the guerrillaswere confined to a 50-square-kilometer (20-sq.-mi.) area andshortly thereafter were defeated. As the war drew to aclose, civil action programs were given increasing prioritythroughout the province and since then have become majorelements in winning the allegiance of the people.  The PFLOthreat appeared to diminish further with the establishmentof diplomatic relations in October 1983 between South Yemenand Oman, and South Yemen's subsequent diminution ofpropaganda and subversive activities against Oman.  In late-1987, Oman opened an embassy in Aden, South Yemen, andappointed its first resident ambassador to the country.GOVERNMENT AND POLITICAL CONDITIONSSultan Qaboos bin Sa'id, the monarch, rules with the aid ofhis ministers.  His dynasty, the Al Sa'id, was founded about250 years ago by Imam Ahmed bin Sa'id.  The sultan is adirect descendant of the 19th-century ruler, Sa'id binSultan.  The sultanate has no constitution, Western-stylelegislature, or legal political parties.Oman's judicial system traditionally has been based on theShari'a--the Koranic laws and the oral teachings of theIslamic Prophet Muhammad.  The Shari'a courts fall under thejurisdiction of the Ministry of Justice, Awqaf, and IslamicAffairs.  Oman's first criminal code was not enacted until1974.  The current structure of the criminal court systemwas established in 1984 and consists of a magistrate courtin the capital and four additional magistrate courts inSohar, Sur, Salalah, and Nizwa.  In the less-populated areasand among the nomadic bedouin, tribal custom often is thelaw.Administratively, the populated regions are divided intonumerous districts (wilayats) presided over by governors(walis) responsible for settling local disputes, collectingtaxes, and maintaining peace.  Most wilayats are small; anexception is the wilayat of Dhofar, which comprises thewhole province.  The wali of Dhofar is an importantgovernment figure, holding cabinet rank, while other walisoperate under the guidance of the ministry of interior.In November 1991, Sultan Qaboos established the Majlis ash-Shura (Council of Deliberation/Consultation), which replacedthe 10-year-old State Consultative Council, in an effort tosystematize and broaden public participation in government.Representatives were chosen in the following manner:  Localcaucuses in each of the 59 districts sent forward the namesof three nominees, whose credentials were reviewed by acabinet committee.  These names were then forwarded to thesultan, who made the final selection.  The Council serves asa conduit of information between the people and thegovernment ministries. It is empowered to review drafts ofeconomic and social legislation prepared by serviceministries, such as communications and housing, and toprovide recommendations.  Service ministers may also besummoned before the Majlis to respond to representatives'questions.  It has no authority in the areas of foreignaffairs, defense, security, and finances.After North and South Yemen merged in May 1990, Oman settledits border disputes with the new Republic of Yemen onOctober 1, 1992.  The two neighbors have cooperativebilateral relations.Although Oman enjoys a high degree of internal stability,regional tensions in the aftermath of the Persian Gulf warand the Iran-Iraq war continue to necessitate large defenseexpenditures.  In 1992, Oman budgeted $1.73 billion fordefense--about 15% of its GDP.  Oman maintains a small buteffective military, supplied mainly with British equipmentin addition to items from the United States, France, andother countries.  British officers, on loan or on contractto the sultanate, help staff the armed forces, although aprogram of "Omanization" has steadily increased theproportion of Omani officers over the past several years.Principal Government OfficialsSultan, Prime Minister, and Minister of Defense, ForeignAffairs, and Finance--Qaboos bin Sa'id Al SaidMinister of Palace Office Affairs--Ali bin Majid MamariMinister of State for Foreign Affairs--Yusif bin Alawi binAbdallahDeputy Prime Minister for Financial and Economic Affairs--Qais bin Abd al-Munim al-ZawawiDeputy Prime Minister for Legal Affairs--Fahd bin Mahmud AlSa'idDeputy Prime Minister for Security and Defense--Fahar binTaymur Al Sa'idAmbassador to the U.S.--Ahmed bin Mohammad al-RasbiPermanent Representative to the UN--Salim al-KhusaybiOman maintains an embassy in the United States at 2535Belmont Rd. NW, Washington, DC  20008 (tel. [phone]).ECONOMYWhen Oman declined as an entrepot for arms and slaves in themid-19th century, much of its former prosperity was lost,and the economy relied almost exclusively on agriculture,camel and goat herding, fishing, and traditionalhandicrafts.  Today, oil fuels the economy and revenues frompetroleum products have enabled Oman's dramatic developmentover the past 20 years.Oil was first discovered in the interior near Fahud in thewestern desert in 1964.  Petroleum Development (Oman) Ltd.(PDO) began production in August 1967.  The Omani Governmentowns      60% of PDO production, and foreign interests own40% (Royal Dutch Shell owns 34%; the remaining 6% is ownedby Compagnie Francaise des Petroles [Total] and Partex).  In1976, Oman's oil production rose to 366,000 barrels per day(b/d) but declined gradually to about 285,000 b/d in late1980 due to the slow depletion of recoverable reserves.From 1981 to 1986, Oman was able to compensate for decliningoil prices by increasing its production levels, whichreached 600,000 b/d.  With the collapse of oil prices in1986, however, revenues dropped dramatically.  Productionwas cut back temporarily in coordination with theOrganization of Petroleum Exporting Countries (OPEC), andproduction levels again reached 600,000 b/d by mid-1987,which helped increase revenues.  By mid-1993, production hadclimbed to more than 750,000 b/d but falling oil prices maynecessitate further adjustment.  Oman is not a member ofOPEC but is a leader of Independent Petroleum ExportingCountries.Oman does not have the immense oil resources of some of itsneighbors.  Nevertheless, recently, it has found more oilthan it has produced, and total proven reserves rose from2.9 billion barrels in January 1982 to 4.6 billion barrelsby the end of 1992.  The outlook for additions to reservesis promising, although Oman's complex geology makesexploration and production a challenge.  Recent improvementsin technology, however, have enhanced recovery.  Natural gasreserves, which will increasingly provide the fuel for powergeneration and desalination, stand at 17 trillion cubicfeet.  Studies are currently underway to supply export ofgas for liquefied natural gas after processing in Oman.Agriculture and fishing are the traditional way of life inOman.  Dates and limes, grown extensively in the Batinahcoastal plain and the highlands, make up most of thecountry's agricultural exports.  Coconut palms, wheat, andbananas also are grown, and cattle are raised in Dhofar.Other areas grow cereals and forage crops.  Poultryproduction is steadily rising.  Fish and shellfish exportsreached $35 million in 1991.The government is undertaking many development projects tomodernize the economy and improve the standard of living.Increases in agriculture and especially fish production arebelieved possible with the application of modern technology.The Muscat capital area has both an international airport atSeeb and a deepwater port at Mina Qaboos.  An airport inSalalah, capital of the Dhofar Governate, and a seaport atnearby Raysut were recently completed.  A national roadnetwork includes a $400-million highway linking the northernand southern regions.  In an effort to diversify, thegovernment built a $200-million copper mining and refiningplant at Sohar.  Other large industrial projects include an80,000 b/d oil refinery and two cement factories.  Anindustrial zone at Rusayl is the showcase of the country'smodest light industries.  Marble, lime-stone, and gypsum mayprove commercially valuable in the future.Some of the largest budgetary outlays are in the areas ofhealth services and basic education.  The number of schoolsrose from three in 1970 to more than 840 by 1993, whilehospital and clinic beds increased during this period from12 to 4,355.The subsequent drop in oil prices over the 1980s, combinedwith rapidly growing recurrent outlays and ambitiousspending programs for development and defense usually havecreated budget deficits every year (except 1990) since 1982.Economic growth surged in Oman in 1992.  This was the directresult of the improvement in Oman's oil sector, whichexperienced higher prices and an increased production level.The other key sector of the economy, government spending, isdirectly driven by the amount of oil revenues the governmentreceives.The economic outlook for the remainder of the 1990s is good,although falling oil prices once again will require budgetcutbacks.  The Omani Government is continuing to pursue itsfourth five-year plan, launched in 1991, to reduce itsdependence on oil and expatriate labor.  The plan focuses onincome diversification, job creation for Omanis in theprivate sector, and development of Oman's interior.Government programs offer soft loans and propose thebuilding of new industrial estates in population centersoutside the capital area.  The government is giving greateremphasis to the "Omanization" of the labor force,particularly in sectors such as banking, hotels, andmunicipally-sponsored shops benefiting from governmentsubsidies.  Currently, efforts are underway to liberalizeinvestment opportunities in order to attract foreigncapital.U.S. firms face a small and highly competitive marketdominated by trade with Japan and Britain and re-exportsfrom the United Arab Emirates.  The sale of U.S. productsalso is hampered by higher transportation costs and the lackof familiarity with Oman on the part of U.S. exporters.However, the traditional U.S. market in Oman, oil fieldsupplies and services, should grow as the country's majoroil producer continues a major expansion of fields andwells.FOREIGN RELATIONSExcept for a brief period of Persian rule, the Omanis haveremained independent since 1650.  Under its previous ruler,Oman had limited contacts with the outside world, includingneighboring Arab states. When Sultan Qaboos assumed power in1970, only two countries, the United Kingdom and India,maintained a diplomatic presence in the country.  A specialtreaty relationship permitted the United Kingdom closeinvolvement in Oman's civil and military affairs.  Ties withthe United Kingdom have remained friendly under SultanQaboos.Oman pursues a moderate foreign policy.  It supported theCamp David accords and was one of three Arab League states,along with Somalia and Sudan, that did not break relationswith Egypt after the signing of the Egyptian-Israeli PeaceTreaty in 1979.  Oman supports the current Middle East peaceinitiatives, as it did those in 1983.  In April 1994, Omanhosted the plenary meeting of the water working group of thepeace process, the first Gulf state to do so  During thePersian Gulf crisis, Oman assisted the UN coalition effort.Oman has developed close ties to its neighbors; it joinedthe six-member Gulf Cooperation Council when it wasestablished in 1980.For many years, Oman avoided relations with communistcountries because of the communist support connection to theinsurgency in Dhofar. Recently, however, Oman has undertakendiplomatic initiatives in the Central Asian republics,particularly in Kazakhstan, where it is involved in a jointoil pipeline project.  In addition, Oman maintains a low-keyrelationship with Iran, its northern neighbor, and the twocountries regularly exchange delegations.  Oman is an activemember in international and regional organizations, notablythe Arab League.  Oman is a temporary member of the UNSecurity Council for 1994-95.U.S.-OMANI RELATIONSThe United States has maintained relations with thesultanate since the early years of American independence.  Atreaty of friendship and navigation, one of the firstagreements of its kind with an Arab state, was concludedbetween the United States and Muscat in 1833.  This treatywas replaced by the treaty of amity, economic relations, andConsular Rights signed at Salalah on December 20, 1958.A U.S. Consulate was maintained in Muscat from 1880 until1915.  Thereafter, U.S. interests in Oman were handled byU.S. diplomats resident in other countries.  In 1972, theU.S. ambassador in Kuwait was accredited also as the firstU.S. ambassador to Oman, and the U.S. embassy, headed by aresident charge d'affaires, was opened.  The first residentU.S. ambassador took up his post in July 1974.  The Omanembassy was opened in Washington, DC, in 1973.U.S.-Omani relations were strengthened in 1980 by theconclusion of two important agreements.  One provided accessto Omani military facilities by U.S. forces under agreedupon conditions.  The other agreement established a JointCommission for Economic and Technical Cooperation, locatedin Muscat, to provide U.S. economic assistance to Oman.  APeace Corps program, which assisted Oman mainly in thefields of health and education, was initiated in 1973 andphased out in 1983. A team from the Federal AviationAdministration worked with Oman's Civil Aviation Departmenton a reimbursable basis but was phased out in 1992.In April 1983, Sultan Qaboos made a state visit to theUnited States.  Vice President Bush visited Oman in 1984 and1986.Principal U.S. OfficialsAmbassador--David J. DunfordDeputy Chief of Mission--Elizabeth McKuneChief, Political/Economic Section--Roberta L. ChewEconomic/Commercial Officer--Richard M. EasonPublic Affairs Officer--Matthew LussenhopThe address of the U.S. embassy in Oman is P.O. Box 202,Postal Code No. 115, Muscat, Sultanate of Oman.  Telephone:(011) (968) 698-989, 699-094.  FAX: [phone].TRAVEL NOTESVisas and Customs:  A visa or a "No Objection Certificate"is required of U.S. citizens for entry, and sponsorship by aresident of Oman is normally necessary.  Visa applicationmay be made at the Omani Embassy in Washington, D.C.Application for a No Objection Certificate can be made onlyby the traveler's sponsor in Oman.  Customs regulationsprohibit importation of liquor, firearms, or pornographicmaterial.  Incoming baggage may be inspected, includingcarry-ons.Climate and Clothing:  Wear summer clothing almost yearround, but bring a sweater for the cool winter evenings.Because of cultural sensitivities, conservative dress isadvised--no sleeveless tops, short skirts, shorts, or tight-fitting clothing for women.  Men should only wear tank topsor shorts when engaged in athletic activity.Health:  Basic, modern care and most medicines areavailable. Typhoid and gamma globulin shots are recommended,as well as up-to-date tetanus and polio.  Take malariasuppressants.  Tapwater, including ice, is not reliable.Telecommunications:  Telephone service is available in thecapital area, in Salalah, and several other towns.Telegraphic and telex service is available;  telefax andmobile telephones are also available.  Oman is nine hoursahead of eastern standard time.Transportation:  Flights are available from several regionaland European cities to the international airport at Seeb,about 42 km. (26 mi.) west of Muscat.  Taxis can be rentedfor the ride or by the day.  Rental cars also are readilyavailable.  Driving is on the right.Hotel Accommodations:  There are several international-classhotels in the Muscat area, but they often are heavily bookedduring the cooler months (October-March), and reservationsshould be made well ahead of travel.  The Omani Governmentpromotes limited tourism.  Tourists who wish to visit Omanmust be sponsored; hotels may arrange visas and sponsorship.Contact your hotel for further information.  Business peopleare welcome under proper sponsorship.(###)Published by the U.S. Department of StateBureau of Public Affairs -- Office of Public Communication -- Washington, DCDecember 1994 -- Editor:  Peter Freeman -- Managing Editor:Peter A. KnechtDepartment of State Publication 8070Background Notes series -- This material is in the publicdomain and may be reprinted without permission; citation ofthis source is appreciated.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC 20402.(###)</text>
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        <text>BACKGROUND NOTES:  NORWAYPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEAUGUST 1992Official Name:  Kingdom of NorwayPROFILEGeographyArea (including the island territories of Svalbard and Jan Mayen):386,000 sq. km. (150,000 sq. mi.); slightly larger than New Mexico.Cities:  Capital--Oslo (pop. 467,000).  Other cities--Bergen(216,000), Trondheim (139,600), Stavanger (99,800).  Terrain:Rugged with high plateaus, steep fjords, mountains, and fertilevalleys.  Climate:  Temperate along the coast, colder inland.PeopleNationality:  Noun and adjective--Norwegian(s).   Population (1991est.):  4.3 million.  Annual growth rate (1991):  0.5%.  Density:14 per sq. km.  Ethnic groups: Norwegian (Nordic, Alpine, Baltic),Lapp (or Sami, a racial-cultural minority of 20,000); foreignnationals (148,000 from Denmark, UK, Sweden, US, Pakistan, Vietnam,Germany, Turkey).  Religion:  Evangelical Lutheran 94%.  Languages:Norwegian (official), Lapp.  Education:  Years compulsory--9.Literacy--100%.  Health: Infant mortality rate--7/1,000.  Lifeexpectancy--men 73 yrs; women 80 yrs.  Work force (1991, 2.1million):  Government, social, personal services--37%.  Wholesaleand retail trade, hotels, restaurants--18%.  Manufacturing--15%.Transport and communications--8%.   Financing, insurance, realestate, business services--8%.  Agriculture, forestry, fishing--8%.Construction--6%.  Oil extraction--1%.GovernmentType:  Hereditary constitutional monarchy.  Independence:  1905.Constitution:  May 17, 1814.Branches:  Executive--king (chief of state), prime minister (headof government), council of ministers (cabinet).Legislative--modified unicameral parliament (Storting).Judicial--Supreme Court, appellate courts, city and county courts.Political parties:  Labor, Conservative, Center, ChristianPeople's, Socialist Left, Progress.  Suffrage:  Universal over 18.Administrative subdivisions:  18 fylker (counties), the city ofOslo, and Svalbard.National holiday:  May 17.Central government budget (1991): $52 billion.Defense (1991):  3.2% of GNP.Flag:  White cross with blue inner cross on red field.  The whitecross and red field are derived from the Danish flag; the bluecross was added to symbolize Norway's independence.EconomyGNP (1991):  $103 billion.  Annual growth rate (1991):  1.9%.  Percapita GNP (1991): $24,200.Natural resources:  Oil, gas, fish, timber, hydroelectric power,mineral ores.Agriculture and fishing (3% of GNP): Products--dairy, livestock,grain (barley, oats, wheat), potatoes and other vegetables, fruitsand berries, furs, wool.  Arable land--3%.Oil, gas, shipping:  19% of GNP.Industry (manufacturing, 13% of GNP):  Types--food processing, pulpand paper, ships, aluminum, ferroalloys, iron and steel, nickel,zinc, nitrogen, fertilizers, transport equipment, hydroelectricpower, refinery products, petrochemicals, electronics.Construction:  4% of GNP.Trade (1991):  Exports (f.o.b.)--$36 billion:  crude oil, naturalgas, pulp and paper, metals, chemicals, fish and fish products.Major markets--UK, Germany, Sweden, US (5%).   Imports(c.i.f.)--$26 billion:  machinery and transport equipment,foodstuffs, iron and steel, textiles and clothing.   Majorsuppliers--Sweden, Germany, UK, US (8%).Official exchange rate (average 1991): 6.5 Norwegian kroner=US$1.Aid sent (1991):  $1.1 billion.  Primary recipients--Tanzania,Mozambique, Bangladesh, Nicaragua, Zambia, UN organizations.PEOPLEEthnically, Norwegians are predominantly Germanic, although in thefar north there are communities of Sami (Lapps) who came to thearea more than 10,000 years ago, probably from central Asia.  Inrecent years, Norway has become home to increasing numbers ofimmigrants, foreign workers, and asylum-seekers from various partsof the world.  Immigrants now total nearly 150,000; some 5,000obtained Norwegian citizenship in 1991.Although the Evangelical Lutheran Church is the state church,Norway has complete religious freedom.  Education is free throughthe university level and is compulsory from ages 7 to 16.  At least12 months of military service and training are required of everyeligible male.  Norway's health system includes free hospital care,physician's compensation, cash benefits during illness andpregnancy, and other medical and dental plans.  There is a publicpension system.Norway is in the top rank of nations in the number of books printedper capita, even though Norwegian is one of the world's smallestlanguage groups.  Norway's most famous writer is the dramatistHenrik Ibsen.  Artists Edvard Munch and Christian Krogh werecontemporaries of Ibsen.  Munch drew part of his inspiration fromEurope and in turn exercised a strong influence on later Europeanexpressionists.  Sculptor Gustav Vigeland has a permanentexhibition in the Vigeland Sculpture Park in Oslo.  Musicaldevelopment since Grieg has followed either native folk themes or,more recently, international trends.HISTORYThe Viking period (9th to 11th centuries) was one of nationalunification and expansion.  The Norwegian royal line died out in1387, and the country entered a period of union with Denmark.  By1586, Norway had become part of the Danish Kingdom.  In 1814, as aresult of the Napoleonic wars, Norway was separated from Denmarkand combined with Sweden.  The union persisted until 1905, whenSweden recognized Norwegian independence.The Norwegian Government offered the throne of Norway to DanishPrince Carl in 1905.  After a plebiscite approving theestablishment of a monarchy, the parliament unanimously elected himking.  He took the name of Haakon VII, after the kings ofindependent Norway.  Haakon died in 1957 and was succeeded by hisson, Olav V, who died in January 1991.  Upon Olav's death, his sonHarald was crowned as King Harald V.  Norway was a non-belligerentduring World War I, but as a result of the German invasion andoccupation during World War II, Norwegians generally becameskeptical of the concept of neutrality and turned instead tocollective security.  Norway was one of the signers of the NorthAtlantic Treaty in 1949 and was a founding member of the UnitedNations.  The first UN General Secretary, Trygve Lie, was aNorwegian.GOVERNMENTThe functions of the king are mainly ceremonial, but he hasinfluence as the symbol of national unity.  Although the 1814constitution grants important executive powers to the king, theseare almost always exercised by the Council of Ministers in the nameof the king (King's Council).  The Council of Ministers consists ofthe prime minister--chosen by the political parties represented inthe Storting (parliament)--and other ministers.The 165 members of the Storting are elected from 18 fylker(counties) for 4-year terms according to a complicated system ofproportional representation.  After elections, the Storting dividesinto two chambers, the Odelsting and the Lagting, which meetseparately or jointly depending on the legislative issue underconsideration.The special High Court of the Realm hears impeachment cases; theregular courts include the Supreme Court (17 permanent judges anda president), courts of appeal, city and county courts, the laborcourt, and conciliation councils.  Judges attached to regularcourts are appointed by the king in council after nomination by theMinistry of Justice.Each fylke is headed by a governor appointed by the king incouncil, with one governor exercising authority in both Oslo andthe adjacent county of Akershus.Principal Government OfficialsKing--Harald VPrime Minister--Gro Harlem BrundtlandMinister of Foreign Affairs--Thorvald StoltenbergAmbassador to the United States--Kjeld VibeAmbassador to NATO--Bjorn KristvikAmbassador to the United Nations--Martin HuslidNorway maintains an embassy in the United States at 2720 34thStreet, NW, Washington, DC 20008, tel.[phone] and consulatesin Houston, Los Angeles, Minneapolis, New York, and San Francisco.POLITICAL CONDITIONSUntil the 1981 election, Norway had been governed by Labor Partygovernments since 1935, except for three periods (1963, 1965-71,and 1972-73).  The Labor Party lost its majority in the Storting inthe 1961 elections; thereafter, when in power, its rule hasdepended largely upon support of other parties, according to theissue under consideration.Labor dropped to 66 seats in the 1981 election, and theConservative Party formed a minority government with theparliamentary backing of the two other nonsocialist parties, theCenter Party, and the Christian People's Party.  In June 1988, theConservative government was reorganized into a majority coalitiongovernment with those two parties.  The three-party coalitiongovernment suffered a setback in the 1985 election and lost a voteof confidence in April 1986 when the Progress Party withdrew itssupport over a proposed gasoline tax increase.  Since under theNorwegian constitution the parliament cannot be dissolved, theLabor Party had to form a minority government in May 1986 with thesame parliamentary composition as existed before the no-confidencevote.  The Labor Party governed for over 3 years with the supportof the Socialist Left Party and individual members of the otherparties on a case-by-case basis.  After suffering losses in theSeptember 1989 elections, the Labor Party left the government inOctober 1989 and was replaced by a minority nonsocialist coalitionled by the Conservative Party of Jan P. Syse.  One year later, theSyse Government fell over the issue of Norwegian policy toward theEuropean Community and was replaced in November 1990 by a minorityLabor Party government.  Gro Harlem Brundtland is again PrimeMinister after forming her third government in 10 years.  Norwayholds national elections in September 1993.ECONOMYNorway is one of the world's richest countries.  It has animportant stake in promoting a liberal environment for foreigntrade.  Its large shipping fleet is one of the most modern amongmaritime nations.  Metals, pulp and paper products, chemicals,shipbuilding, and fishing are the most significant traditionalindustries.Norway's emergence as a major oil and gas producer in the mid-1970stransformed the economy.  Large sums of investment capital pouredinto the offshore oil sector, leading to greater increases inNorwegian production costs and wages than in the rest of WesternEurope up to the time of the global recovery of the mid-1980s.  Theinflux of oil revenue also permitted Norway to expand an alreadyextensive social welfare system.High oil prices in the 1983-85 period led to significant increasesin consumer spending, wages, and inflation.  The subsequent declinein oil prices since 1985 has sharply reduced tax revenues andrequired a tightening of both the government budget and privatesector demand.  As a result, the non-oil economy showed almost nogrowth during 1986-88, and the current account went into deficit.As oil prices recovered sharply in 1990 following the Persian Gulfcrisis, the 1990 current account posted a large surplus whichcontinued into 1991.  Unemployment as of the first quarter of 1991rose to a post-1945 high of 6.2%.  Given the volatility of the oiland gas market, Norway is seeking to restructure its non-oileconomy to reduce subsidies and stimulate efficient, nontraditionalindustry.Norway's exports have continued to grow every year, largely becauseof favorable world demand.  Moreover, the flight of Norwegian-ownedships from the country's traditional register ended in 1987, as thegovernment established an international register, replete with taxbreaks and relief from national crewmember requirements.  At thesame time, a drop in private consumption has helped to reduceNorway's imports.Norway continues to adapt its economic policy to internationaldevelopments, notably the emerging European Community (EC) singlemarket.  Norway and the other European Free Trade Association(EFTA) members are in the process of concluding an economiccooperation agreement with the EC under the framework of theEuropean Economic Area (EEA).  This agreement, which promotes freetrade, is being designed to limit the distortive impact of the ECsingle market on commodity trade and the movements of labor andcapital.  On EC membership, Prime Minister Gro Harlem Brundtlandhas indicated that Norway may submit an application before the endof 1992.  Its principle trading partners are the EC countries andits Scandinavian neighbors; the United States ranks fifth.Energy ResourcesOffshore hydrocarbons were discovered in the 1960s, and developmentbegan in the 1970s.  The growth of the petroleum sector hascontributed significantly in recent years to Norwegian economicvitality.  Current petroleum production capacity is over 2 millionbarrels per day.  Production has increased rapidly during the pastseveral years as new fields are opened.  Total production in 1991was about 118 million metric tons of oil equivalents, nearly 80% ofwhich was crude oil.  Hydropower provides nearly all of Norway'selectricity, and all of the gas and most of the oil produced wereexported.  Production is expected to increase significantly in the1990s as new fields come onstream.Although not a major energy supplier to the world, Norway providesabout 40% of Western Europe's crude oil requirements and 16% of gasrequirements.  In 1991, Norwegian oil and gas exports accounted for44% of total merchandise exports.  In addition, offshoreexploration and production have stimulated onshore economicactivities.  Foreign companies, including many American ones,participate actively in the petroleum sector.FOREIGN RELATIONSNorway supports international cooperation and the peacefulsettlement of disputes, recognizing the need for maintaining astrong national defense through collective security.  Accordingly,the cornerstones of Norwegian policy are active membership in NATOand support for the United Nations and its specialized agencies.Norway also pursues a policy of economic, social, and culturalcooperation with other Nordic countries (Denmark, Sweden, Finland,and Iceland) through the Nordic Council.In addition to strengthening traditional ties with developedcountries, Norway seeks to build friendly relations with developingcountries and has undertaken humanitarian and development aidefforts with selected African and Asian nations.  Norway is alsodedicated to encouraging democracy, assisting refugees, andprotecting human rights throughout the world.DEFENSENorway has a draft system in which all able-bodied males aresubject to military service.  The Royal Norwegian Navy and AirForce are technically sophisticated organizations and manned by acore of professionals.  The Norwegian Army is a mobile infantryforce.US-NORWEGIAN RELATIONSThe United States and Norway enjoy a long tradition of friendlyassociation.  The relationship is strengthened by the millions ofNorwegian-Americans in the United States and by about 10,000 UScitizens who reside in Norway.  The two countries enjoy an activecultural exchange, both officially and privately.Principal US OfficialsAmbassador--Loret Miller RuppeDeputy Chief of Mission--William C. McCahill, Jr.Chief, Political Section--Elizabeth P. SpiroChief, Economic Section--F. Brenne BachmannPublic Affairs Officer (USIS)--William M. ZavisAdministrative Officer--VacantChief, Consular Section--Eli N.  Lauderdale, Jr.Commercial Attache--Scott BozekDefense Attache--Capt. Richard P. VidosicLabor Attache--Elaine PapazianThe US Embassy is located at Drammensveien 18, 0244 Oslo (tel.[phone]; FAX: [phone]).Further InformationFor information on economic trends, commercial development,production, trade regulations, and tariff rates, contact theInternational Trade Administration, US Department of Commerce,Washington, DC 20230.TRAVEL NOTES:Customs:  A passport is required.  No visa is required if the totalstay in Norway, Sweden, Finland, or Denmark is less than 3 months.A residence permit is required for longer stays.Health:  Standards for public health and medical facilities arehigh.  Tapwater is potable.Telecommunications:  Service is efficient to most of Norway and theworld.  Norway is six standard time zones ahead of eastern standardtime.Transportation:  Daily flights connect Oslo with the US and majorEuropean cities.  Public transportation is efficient.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of  Public Communication -- Washington, DC-- August 1992 -- Editor:  Jo BrooksDepartment of State Publication 8228Background Notes Series -- This material is in the public domainand may  be reprinted without permission; citation of this sourceis appreciated.  For sale by the Superintendent of Documents, USGovernment Printing Office, Washington, DC  20402.</text>
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        <text>U.S. Department of StateBureau of Public Affairs,  Office of Public CommunicationOfficial Name:Republic of NigerGeographyArea: 1,267,000 sq. km. (490,000 sq. mi.); about three times the sizeof California. Cities: Capital-Niamey (pop. appros. 350,000). Othercities-Tahoua, Maradi, Zinder, Arlit, and Agadez. Terrain: Abouttwo-thirds desert and mountains, one-third savanna. Climate: Hot,dry, and dusty. Rainy season June-September.PeopleNationality: Noun and adjective-Nigerien(s). Population (1986): 6.2million. Annual growth rate (1986): 3.1%. Ethnic groups: Hausa 56%,Djerma 22%, Fulani 8.5%, Tuareg 8%, Beri Beri (Kanouri) 4.3%; Arab,Toubou, and Gourmantche 1.2%. Religions: Predominantly Muslim;some traditional and Christian. Languages: French (official), Hausa,Djerma. Education: Years compulsory-6. Attendance-15%.Literacy-13%. Health: Infant mortality rate (1986)-145/1,000. Lifeexpectancy-44.5 yrs. Work force (2.5 million): Agriculture-90%.Industry and commerce-6%. Government-4%.GovernmentType: Republic. Independence: August 3, 1960. Constitution:Suspended November 9, 1960. Restored 1989.Branches: Executive-president and Supreme Military Council.Legislative-suspended. Judicial-Court of Appeals, Supreme Court,High Court of Justice, and Court of State Security.Administrative subdivisions: Seven departments subdivided into 32districts (arrondissements).Political parties: Suspended April 1974. A multi-party system wasrestored in January 1991. Political parties are currently forming.Suffrage: The constitution of 1960 provides for universal suffrage forNigeriens age 16 or older.Central government budget (FY 1987): $317 million (105.57 billionCFA (Communaute Financiere Africaine) francs at 335 CFA=US$1);Investment budget (capital and development espenditures)-$277million. Maintenance and public works budget-$5.6 million.Defense (1986): $15 million.Flag: Three horizontal bands-orange, white, and green from top tobottom-with orange orb representing the sun centered on whiteband.EconomyGDP (1985): $1.622 billion. Annual growth rate (1984-85): 3%. Percapita GNP (1985): $265. Avg. inflation rate (1984-85): 8%.Natural resources: Uranium, coal, iron, tin, phosphates.Agriculture (44% of GNP): Products-millet, sorghum, peanuts, beans,cotton, rice, cowpeas.Industry (10% of GNP): Types-textiles, cement, agricultural products.Trade (1985 est.): Exports-$251 million: mining products, uranium,coal. Major markets-France, other EC countries, Nigeria.Imports-$354 million: petroleum, foodstuffs, industrial products. Majorsuppliers-France and other EC countries.Official exchange rate (Nov. 1986): 335 CFA francs-U5$1.Fiscal year: October l-September 30.Membership in International OrganizationsUN and some of its specialized and related agencies, Council of theEntente, West African Economic Community (CEAO), West AfricanMonetary Union (UMOA), Liptako-Gourma Authority, Niqer RiverBasin Commission, Lake Chad Basin Commission, Organization ofAfrican Unity (OAU), Economic Organization of West African States(ECOWAS), Organization of the Islamic Conference, NonalignedMovement.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: NICARAGUAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of NicaraguaPROFILEGeographyArea:  130,000 sq. km. (50,000 sq. mi.), slightly larger than New York State.  Cities:  Capital--Managua (pop. 989,000).  Other cities--Leon, Granada, Jinotega, Matagalpa, Chinandega, Masaya.Terrain:  Extensive Atlantic coastal plains rising to central interior mountains; narrow Pacific coastal plain interrupted by volcanoes.Climate:  Tropical in lowlands, cooler in highlands.PeoplePopulation:  4.3 million.  Annual growth rate:  3.1%.Ethnic groups:  Mestizo (mixed European and Indian) 69%, Caucasian 17%, black (Jamaican origin) 9%, indigenous 5%.  Religion:  Roman Catholic 85%.Languages:  Spanish (official), English, indigenous languages.  Education:  Years compulsory--11 yrs. of school or 16 yrs. old.  Completion rate, primary school--20%.  Literacy--77%.Health:  Life expectancy--63 yrs.  Infant mortality rate--55/1,000.  Work force (1.5 million):  Services--45%, agriculture--37%, industry--18%.  Unemployment is 23%.Government Type:  Republic.Independence:  1821.Constitution:  Passed by the Sandinista-controlled National Assembly and signed January 9, 1987.  The National Assembly is currently considering constitutional reform proposals.Branches:  Executive--president and vice president.  Legislative--National Assembly (unicameral).  Judicial--Supreme Court; subordinate appeals, district, and local courts; separate labor and administrative tribunals.  Electoral-- Supreme Electoral Council; nine Regional Electoral Councils; local Ballot Receiving Boards.Political parties:  More than one dozen parties, forming various coalitions.Administrative subdivisions:  16 departments, 137 municipalities, and one national capital district.  The military also has divided the country into six regions and three special zones for its administrative purposes.Suffrage:  Universal at 16.EconomyGDP (1993):  $1.8 billion.Annual growth rate (1993):  -0.9%.Per capita GDP (1993):  $414.Natural resources:  Gold, silver, copper, tungsten, lead, zinc, timber, fish.Land use:  Pastures and meadows--43%, forest and woodland--5%, arable land--9%.Agriculture (22% of GDP):  Products--coffee, cotton, sugar cane, bananas, maize, beans, rice, tobacco, peanuts, sorghum, sesame, meat, and shellfish.Industry (26% of GDP):  Types--processed food, beverages, textiles, chemicals, petroleum, and metal products.Services (50% of GDP):  Types--commerce, government, transportation, banking, energy and water.Trade (1993):  Exports--$267 million:  coffee, cotton, sugar, bananas, beef, gold, shellfish.  Markets--U.S. 47%, Central American Common Market (CACM) 22%, Germany 8%, Canada 11%.  Imports--$727 million:  petroleum, agricultural supplies, manufactured and consumer goods.  Suppliers--U.S. 21%, CACM 29%, Germany 1%, Canada 1%.Exchange rate:  7.1 cordoba=U.S. $1.PEOPLEMost Nicaraguans have both European and Indian ancestry.  Only the Indians of the Caribbean coast remain ethnically distinct and retain tribal customs and dialects.  A large black minority (of Jamaican origin) is concentrated on the Caribbean coast, although migration to Managua is increasing.  Nicaraguan culture is based upon its Ibero-European heritage.  Roman Catholicism is the major religion, but evangelical Protestant sects have grown recently, and there are strong Anglican and Moravian communities on the Caribbean coast.  Spanish is the official language; English and indigenous languages are spoken on the Caribbean coast.Most Nicaraguans live in the Pacific lowlands and the adjacent interior highlands region.  The population is 57% urban.  The principal cities of Managua, Leon, and Granada are on the Pacific side.  The largest town on the Caribbean coast is Bluefields.HISTORYColumbus sailed along the Nicaraguan coast on his last voyage in 1502.  The colonial period in Nicaragua began with the arrival of Spanish conquerors 20 years later.  The country probably takes its name from Nicarao, chief of the indigenous tribe then living around present-day Lake Nicaragua.  Contact with Europeans decimated the indigenous population.  Colonial Nicaragua's two principal towns were founded in 1524:  Granada on Lake Nicaragua and Leon near Lake Managua.  The region was part of the Captaincy General of Guatemala.  After Nicaragua gained independence from Spain in 1821, it briefly became part of the Mexican Empire and then a member of a federation of independent Central American provinces.  In 1838, Nicaragua became an independent republic.For some time after this, politics were dominated by struggles between the Liberals of Leon and the Conservatives of Granada.  This rivalry allowed an American, William Walker, to seize the presidency in 1856, but the Liberals and the Conservatives united to drive him out of office in 1867, after which a period of about 30 years of Conservative rule ensued.Hostility between President Jose Santos Zelaya and the United States over an isthmian canal led to American intervention in Nicaragua in 1909; U.S. troops stayed in Nicaragua until 1933.  U.S. intervention in Nicaragua ended with Franklin Roosevelt's "Good Neighbor" policy. Despite U.S. efforts to create an apolitical constabulary prior to departing Nicaragua, National Guard Commander Anastasio Somoza Garcia took over the presidency in 1936, initiating 43 years of Somoza family rule, which ended in 1979 when the Sandinista National Liberation Front (FSLN) overthrew the Somoza government following an armed insurgency and popular insurrection.  The FSLN established an authoritarian dictatorship soon after taking power in the 1980s.  U.S.-Nicaraguan relations were hostile in the 1980s as a result of the repressive FSLN regime; Sandinista support for Central American guerrilla movements and international terrorists; and the involvement of the former Soviet bloc and Cuba in Nicaragua.  The U.S. supported the Nicaraguan Resistance movement (the Contras) and imposed a trade embargo.The easing of Cold War tensions and successful diplomatic efforts led to the first free and fair elections in Nicaraguan history in February 1990.  President Violeta Barrios de Chamorro won the presidency, and the National Opposition Union (UNO) won a majority in the National Assembly.GOVERNMENT AND POLITICAL CONDITIONSNicaragua is a constitutional democracy with executive, legislative, judicial, and electoral branches of government.  The constitution was adopted in 1987 by the Sandinista government and is under reform.  The National Assembly is unicameral.  Elections for its 92 Deputies were last held in 1990.  The next national elections for the presidency and the National Assembly are scheduled to take place in 1996.  The Supreme Court, which in practice functions by consensus, is no longer dominated by a single political party.  The constitution provides for freedom of speech and the press, although there are some constitutional provisions pertaining to the right to accurate information.  Diverse viewpoints are freely and openly discussed in the media and in academia.  There is no official state censorship in Nicaragua.  Other constitutional freedoms include peaceful assembly and association, freedom of religion, and freedom of movement within the country, as well as foreign travel, emigration, and repatriation.  The government also permits domestic and international human rights monitors to operate freely in Nicaragua.  The constitution prohibits discrimination based on birth, nationality, political belief, race, gender, language, religion, opinion, national origin, economic condition, or social condition.  All public and private sector workers, except the military and the police, are entitled to form and join unions of their own choosing, and they exercise this right extensively.  Nearly half of Nicaragua's work force, including agricultural workers, is unionized.  Workers have the right to strike.  Collective bargaining is becoming more common in the private sector. The Chamorro government presides over a difficult transition from dictatorship to democracy.  Progress has been made in consolidating the democratic process, especially since the National Assembly is becoming the principal forum for resolving national problems.  Nicaraguans have begun to arrive at compromises affecting, for example, military reform and legislation affecting Nicaraguan, American, and third-country property claimants.  A key challenge is to ensure conditions for free and fair general elections in November 1996.Political Parties The National Opposition Union is a coalition which comprised 14 parties in 1990 but now has been reduced, through consolidation and expulsion, to about six parties plus some independents.  This coalition includes the Independent Liberal Party, the Constitutionalist Liberal Party, the National Action Party, the National Conservative Party, the Neo-Liberal Party, the Communist Party of Nicaragua, and independents.  Ex-UNO parties which support constitutional reforms are the Nicaraguan Democratic Movement, the Popular Conservative Alliance, the Social Democratic Party, and the Union of Christian Democrats.  "Center groups"--deputies who formerly belonged to UNO parties but split off from the UNO coalition in 1992 to support executive branch positions--are the Center Group and the Unity and Reconciliation Group.  Other political parties are the Sandinista National Liberation Front and the Nicaraguan Resistance Party.National SecurityThe Chamorro government has reduced the Sandinista army from more than 80,000 upon entering office to about 15,000 and has ended the military draft.  The National Assembly is considering a military reform law which establishes the principle of civilian control over the military.  Term limits for top military commanders (including the appointment of a new army commander on February 21, 1995) and civilian trials for military personnel accused of crimes against civilians are included in the legislation.Principal Government OfficialsPresident and Minister of Defense--Violeta Barrios de Chamorro Vice President--Virgilio Godoy de ReyesMinister of Foreign Affairs--Ernesto Leal SanchezAmbassador to the U.S.--Roberto Mayorga Ambassador to the OAS--Jose Antonio Tijerino Ambassador to the UN--vacantNicaragua maintains an embassy in the United States at 1627 New Hampshire Avenue NW, Washington, DC  20009 (tel. [phone]).ECONOMYAlthough the Chamorro administration has been successful in stabilizing the economy, only Haiti is poorer than Nicaragua in the Western Hemisphere.  Inflation has declined from 13,000% in 1990 to about 20% in 1993, and the freefall in GDP has been arrested--GDP per capita is slightly more than $400.  However, production and investment are stagnant, unemployment and underemployment exceed 50%, and the country labors under a chronic balance-of-payments gap of about $350 million.  In 1993, Nicaragua's foreign debt was $11 billion, and multilateral and bilateral assistance to the country is estimated at $590 million for 1994.On June 24, 1994, the government concluded an agreement with the International Monetary Fund (IMF) on an Enhanced Structural Adjustment Facility (ESAF) for Nicaragua.  The IMF will lend $173 million to Nicaragua for economic reform during 1994-96.  Other donor flows have also been conditioned upon conclusion of the ESAF.  The IMF projects real economic growth of 2% in 1994, 3% in 1995, and 4.5% in 1996.  It estimates an inflation rate of 10% in 1994 and 9% in 1995.  By the end of 1995, the IMF is hopeful that Nicaragua will increase gross international reserves to 21/2 months' worth of imports. During the June 1994 Consultative Group (CG) meeting of donors in Paris, Nicaragua received high marks on the progress made on political issues over the last year.  The 1993 CG had focused on the need for political stability.  This year's CG emphasized the need to establish a secure property rights regime in order to attract investment and promote economic growth.Business Conditions The government has privatized most of the companies in the state holding company, CORNAP.  The telecommunications monopoly, Telcor, is scheduled to be privatized by the end of the year.  There are eight private banks.  Import/export licensing requirements have been greatly relaxed, and Nicaragua, with the rest of Central America, has begun to reduce tariffs.  Tariffs on the majority of products range from 5% to 30%.  The Government of Nicaragua also levies a stamp tax and a selective consumption tax on imports, resulting in high overall taxes on imported products.  Foreign investors can repatriate profits generated since 1990.  Foreign exchange is readily available, partly because of the existence of a parallel exchange market which offers rates only slightly different from the official exchange rate.Trade and InvestmentAgriculture, livestock, fisheries, mining, and telecommunications are the principal growth sectors for the short term.  The best prospects for U.S. agricultural exports are sales of wheat, rice, tallow, vegetable oil, poultry and livestock genetics, and planting seeds.  U.S. commercial and industrial best-prospect exports are franchising, agricultural machinery, food processing and packaging machinery, construction equipment, automobiles and spare parts, and telecommunications equipment. Nicaragua's imports in 1993 were valued at $727 million and are expected to decrease to $658 million in 1994.  The government continues to require import licenses, although the licensing process is now little more than a formality.  As noted, foreign exchange for goods and services is freely available.  In 1994, the U.S. is expected to be the source of nearly 25% of Nicaragua's total imports and to purchase 40% of Nicaragua's exports. Nicaragua is negotiating a free trade agreement with Mexico and has joined its Central American neighbors in pursuing a collective free trade pact with Colombia and Venezuela.  Imports from the Commonwealth of Independent States--the republics of the former Soviet Union--have fallen to a fraction of their 1990 level.Nicaragua's export earnings are estimated to rise by 9% in 1994 to $291 million.  Non-traditional exports such as shrimp, tropical fruits, and vegetables are becoming relatively more important.  Imports include machinery, electrical appliances and transport vehicles, animal and vegetable oil, fertilizers, prepared foods, and clothing and other textile products. U.S. investment in Nicaragua, estimated at less than $100 million, is concentrated in the petroleum and agro-processing sectors.  Most of the companies produce exclusively for the Nicaraguan market, although there are shipments of goods to Central America and Puerto Rico.  For the most part, these companies have been operating in Nicaragua for nearly four decades.  Estimates are that U.S. investments represent between one-half and two-thirds of all foreign investment, although investors from Spain, the United Kingdom, and Taiwan are active.  Total foreign investment is estimated to be under $200 million. The best opportunities for investment appear to be in fishing, mining, timber, processing of non-traditional agricultural exports, hotels, and power generation.  The privatization of the telephone utility is also a promising area for investors.Nicaragua is a beneficiary of Caribbean Basin Initiative (CBI) privileges.FOREIGN RELATIONSThe 1990 election victory of President Violeta Chamorro placed Nicaragua in the ranks of democratizing countries in Latin America and Eastern Europe.  Nicaragua strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The Chamorro government participates in the Central American Security Commission (CASC), which promotes regional demilitarization, arms reduction, and confidence-building.  A major objective of President Chamorro's diplomacy has been to reach new terms with Nicaragua's international creditors.Nicaragua belongs to the UN and several of its specialized and related agencies, including the World Bank, the International Monetary Fund, the UN Educational, Scientific and Cultural Organization (UNESCO), the World Health Organization (WHO), the Food and Agriculture Organization (FAO), and the International Labor Organization (ILO); the General Agreement on Tariffs and Trade; the Inter-American Development Bank; the Central American Common Market (CACM); and the Central American Bank for Economic Integration (CABEI).U.S.-NICARAGUAN RELATIONSThe U.S. encourages Nicaraguans to resolve their problems among themselves and recognizes as legitimate all political forces that follow the democratic process and eschew violence.  It encourages continued progress in the national reconciliation process.The U.S. Administration and Congress remain concerned about the following issues:--  Possible activities of international terrorist and criminal organizations--formerly ideologically-motivated paramilitary units have degenerated to committing acts of criminal violence, although these have not been directly targeted at foreigners or foreign business operations; --  Resolving U.S. citizen expropriation claims arising from confiscations which took place under the previous government--some 450 U.S. citizen claims remain unresolved; --  Improving human rights; --  Ensuring civilian control over the military and police; and--  Reforming the judicial system.The U.S. has provided about $760 million in direct aid and about $240 million in debt relief to Nicaragua since President Chamorro took office in 1990.  About $450 million has been provided in balance-of-payments support.  In FY 1994, the U.S. provided about $53 million in assistance.  U.S. aid is used to support democracy programs, human rights organizations, free labor union activities, economic growth projects, health programs, population activities, child survival programs, and basic education and environmental programs.Principal U.S. OfficialsAmbassador--John F. MaistoDeputy Chief of Mission--Heather M. HodgesEconomic/Commercial Counselor--Paul Trivelli Political Counselor--Frederick Becker Public Affairs Officer--Joseph McBride Administrative Officer--Russell L. Keeton Consul General--Kathleen Daly Chief, USAID Mission--vacantThe U.S. embassy in Nicaragua is located at Kilometer 4.5, Carretera Sur, Managua (tel. [phone]).  (###)</text>
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        <text>U.S. Department of StateBackground Notes:  New Zealand, November 1995Bureau of Public AffairsNovember 1995Official Name:  New Zealand  PROFILE Geography Area: 270,534 sq. km. (104,440 sq. mi.); about the size of Colorado.  Cities: Capital--Wellington (326,900). Other cities--Auckland (910,200), Christchurch (312,600).  Terrain: Highly varied, from snow-capped mountains to lowland plains.  Climate: Temperate to subtropical.  People Nationality: Noun--New Zealander(s). Adjective--New Zealand.  Population (1994): 3.5 million.  Annual growth rate: 1.1%.  Ethnic groups: European 80%, Maori 10%, other Polynesian 4%.  Religions: Anglican 22%, Presbyterian 16%, Roman Catholic 15%.  Languages: English, Maori.  Education: Years compulsory--ages 6-16. Attendance--100%. Literacy--99%. Health: Infant mortality rate--8.3/1,000. Life expectancy--males 73 yrs., females 79 yrs.  Work force (1.6 million): Services and government--45%. Industry and commerce--44%. Agriculture and mining--11%.  Government Type: Parliamentary.  Constitution: No formal, written constitution.  Independence: Declared a dominion in 1907. Branches: Executive--Queen Elizabeth II (chief of state, represented by a governor general), prime minister (head of government), cabinet. Legislative--unicameral House of Representatives, commonly called parliament. Judicial--three-level system: District Courts, the High Court, and the Court of Appeals, with further appeal possible to the Judicial Committee of the Privy Council. There are also specialized courts, such as, employment court,  family courts, youth courts, and the Maori Land Court. Administrative subdivisions: 12 regions with directly elected councils and 74 districts (15 of which are designated as cities) with elected councils. There are also a number of community boards and special-purpose bodies with partially elected, partially appointed memberships. Political parties: National, Labor, the Alliance, New Zealand First, and several smaller parties.  Suffrage: Universal at 18. Economy GNP (1994): $44.7 billion. Real annual GDP growth rate: 5% .  Per capita income: $12,600.  Natural resources: Natural gas, iron sand, coal, timber. Agriculture (10% of GDP): Products--wool, meat, dairy products, forestry products.  Industry (38% of GDP): Types--food processing, textiles, machinery, transport equipment, fish, forestry products. Trade (1994): Exports--$12 billion: meat, dairy products, manufactured products, forest products, fish, fruit and vegetables, wool. Major markets--Australia, Japan, U.S., U.K. Imports--$12 billion: machinery, manufactured goods, transportation equipment, chemicals, mineral fuels. Major suppliers--Australia, U.S., Japan, U.K. U.S.-NEW ZEALAND RELATIONS Bilateral relations in areas outside the security sphere are excellent. The U.S. and New Zealand share common elements of history and culture and a commitment to democratic principles. Senior-level officials regularly consult with each other on issues of mutual importance. Prime Minister Jim Bolger and President Clinton have met on several occasions, including at the White House in March 1995.New Zealand's relationship with the United States in the post-World War II period was closely associated with the Australian, New Zealand, United States (ANZUS) security treaty of 1951, under which signatories agreed to consult in case of an attack in the Pacific and to "act to meet the common danger." During the postwar period, access to New Zealand ports by U.S. vessels contributed significantly to the flexibility and effectiveness of U.S. naval forces in the Pacific.Growing concern about nuclear and arms control issues contributed to the 1984 election of a Labor government committed to barring nuclear-armed and nuclear-powered warships from New Zealand ports. The Labor Government's anti-nuclear policy proved incompatible with a long-standing, worldwide U.S. policy of neither confirming nor denying the presence or absence of nuclear weapons on board U.S. vessels. Moreover, labor policy, subsequently enacted as legislation, also prohibits visits by nuclear powered ships. Implementation of New Zealand's policy effectively prevented practical alliance cooperation under ANZUS. After extensive efforts to resolve the issue proved unsuccessful, in August 1986 the United States suspended its ANZUS security obligations to New Zealand. The United States would welcome New Zealand's reassessment of its legislation to permit that country's return to full ANZUS cooperation. Despite suspension of U.S. security obligations, the New Zealand Government has reaffirmed the importance it attaches to continued close political, economic, and social ties with the United States and Australia. In trade, the United States is New Zealand's third-largest supplier and customer, after Australia and Japan. Total bilateral trade for 1994 was $3.93 billion (with a $88 million surplus in favor of the U.S.). U.S. merchandise exports to New Zealand were $1.5 billion, with New Zealand exports to the U.S. totaling $1.4 billion. U.S. direct foreign investment in New Zealand (as of 1994) totals $3.6 billion, largely concentrated in manufacturing, forestry, telecommunication services, and finance.New Zealand has worked closely with the U.S. to promote free trade in the GATT/WTO, the Asia-Pacific Economic Cooperation forum (APEC), and other multilateral forums. The U.S. and New Zealand hold high-level trade and investment meetings annually.The United States maintains seven scientific bases in Antarctica. The National Science Foundation's Antarctic Program, supported by the U.S. Navy's Operation Deep Freeze, is headquartered in Christchurch. The New Zealand Government has been cooperative in allowing the use of support facilities in Christchurch as staging areas. In return, the United States provides transport and logistical support for New Zealand's year-round Scott Base at McMurdo Sound and its summer field research programs. Principal U.S. Embassy Officials Ambassador--Josiah H. Beeman Deputy Chief of Mission--Morton Dworken Political and Economic Counselor--Evans J.R. Revere Agricultural Attache--vacant Defense Attache--Capt. Robert E. Houser, USN Public Affairs Officer--Timothy M. Randall Consul--James E. Flynn Administrative Officer--Steven G. Leach Labor Attache--Karen E. Krueger Consul (Auckland)--Alcy Frelick Senior Commercial Officer (at Consulate, Auckland)--M. Philip Gates  The U.S. embassy in New Zealand is located at 29 Fitzherbert Terrace, Thorndon, Wellington (tel. [phone], fax [phone]); the U.S. Consulate General is located on the 4th Floor, Yorkshire General Building, corner of Shortland and O'Connell Streets, Auckland (tel. [phone], fax [phone]).For information on foreign economic trends, commercial development, production, trade regulations, and tariff rates, contact the Bureau of Export Development, International Trade Administration, U.S. Department of Commerce, Washington, DC 20230. This information also is available from any Commerce Department district office. GOVERNMENT AND POLITICAL CONDITIONS New Zealand has a parliamentary system of government closely patterned on that of the United Kingdom and is a fully independent member of the Commonwealth. It has no written constitution.Executive authority is vested in a cabinet led by the prime minister, who is the leader of the political party or coalition of parties holding the majority of seats in parliament. All cabinet ministers must be members of parliament and are collectively responsible to it.The unicameral parliament (House of Representatives) has 99 seats, four of which currently are reserved for Maoris elected on a separate Maori roll. However, Maoris also may run for, and have been elected to, regular seats. Parliaments are elected for a maximum term of three years, although elections can be called sooner.The judiciary consists of the Court of Appeals, the High Court, and the District Courts. New Zealand  law has three principal sources--English common law, certain statutes of the U.K. Parliament enacted before 1947, and statutes of the New Zealand Parliament. In interpreting common law, the courts have been concerned with preserving uniformity with common law as interpreted in the United Kingdom. This uniformity is ensured  by the maintenance of the Privy Council in London as the final court of appeal and by judges' practice of following British decisions, even though, technically, they are not bound by them.Local government in New Zealand has only the powers conferred upon it by parliament. The country's 12 regional councils are directly elected, set their own tax rates, and have a chairman elected by their members. Regional council responsibilities include environmental management, regional aspects of civil defense, and transportation planning. The 74 "territorial authorities"--15 city councils, 58 district councils in rural areas, and one county council for the Chatham Islands--are directly elected, raise local taxes at rates they themselves set, and are headed by popularly elected mayors. The territorial authorities may delegate powers to local community boards, which currently number 155. These boards, instituted at the initiative of either local citizens or the territorial authorities, advocate community views but cannot levy taxes, appoint staff, or own property.The conservative National Party and left-leaning Labor Party have dominated New Zealand political life since a Labor government came to power in 1935. During 14 years in office, the Labor Party implemented a broad array of social and economic legislation, including comprehensive social security, a large-scale public works program, a 40-hour workweek, a minimum basic wage, and compulsory unionism. The National Party won control of the government in 1949 and adopted many welfare measures instituted by the Labor Party. Except for two brief periods of Labor governments in 1957-60 and 1972-75, National held power until 1984. After regaining control in 1984, the Labor government  instituted a series of radical market-oriented reforms in response to New Zealand's mounting external debt. In October 1990, the National Party was again elected, capturing 67 of 97 parliamentary seats in a landslide victory. To the disappointment of some supporters, National continued the economic reforms introduced by Labor. National was narrowly reelected in November 1993. Two seats each were won by two new opposition parties, the Alliance and New Zealand First. In a simultaneous referendum, New Zealanders  changed their electoral system to a form of proportional representation designed to give smaller parties a larger voice in parliament. This ended several years of public debate  fueled by resentment over the ability of government to take unpopular measures with only a plurality of popular support. The next election should take place under proportional representation and must be called by the government no later than November 1996. Principal Government Officials Chief of State--Queen Elizabeth II Governor General--Her Excellency Dame Catherine Tizard Prime Minister--James Bolger Ambassador to the United States--John Wood Ambassador to the United Nations--Colin Keating  New Zealand maintains an embassy in the United States at 37 Observatory Circle NW, Washington, DC  20008 (tel. [phone], fax [phone]). A consulate general is located in Los Angeles (tel. [phone], fax [phone]). Tourism information is available through the New Zealand Tourism Board office in Santa Monica, California (toll-free tel. [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued to help Americans avoid travel to a certain country. Consular Information Sheets on all countries include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 [phone].  Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. Check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone].  Before your departure, seek information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).  U.S. citizens are encouraged to register at U.S. embassies (see "Principal U.S. Embassy Officials" listing in this publication). This helps family members contact you en route in case of an emergency. Further Electronic Information: Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line. Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet: Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html. U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax: [phone]. Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone]. National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov and on CD-ROM. Call the Help-Line at [phone] for more information. ==============================  Background Notes Series -- Published by the United States Department of  State -- Bureau of Public Affairs -- Office of Public Communication --  Washington, DC   This information is in the public domain and may be reproduced without permission; citation of this source is appreciated.  (###)</text>
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        <text>US DEPARTMENT OF STATE BACKGROUND NOTES:  NETHERLANDSJanuary 1991Official Name:  Kingdom of the NetherlandsProfileGeography Area: 41,473 sq. km. (16,464 sq. mi.). Cities: Capital- Amsterdam (pop. 687,450). Others-The Hague, seat of government, (pop. 449,350); Rotterdam, principal port (pop. 558,850); Utrecht (pop. 231,750). Terrain: Coastal lowland. Climate: Northern maritime. People Population: 15 million. Nationality: Noun-Dutchmen and Dutchwomen.  Adjective-Dutch.  Ethnic Groups:  Predominantly Dutch; largest minority communities are Moroccans, Turks, Surinamese, and Indonesians. Religions: Roman Catholic, Protestant, non-affiliated, and other.  Language: Dutch. Education: Years compulsory-10. Attendance-nearly 100%.  Literacy-98%. Health: Infant mortality rate-6/1,000.  Life expectancy-76 yrs. (males, 73 yrs.; females, 79 yrs.). Work force (1985): 6 million. Agriculture-1.4%,  Trade-17%,  Industry-30%,  Services-45%. Of the above total, government-23% of the work force. Government Type: Parliamentary democracy under a constitutional monarch.  Constitution: 1814 and 1848.Branches: Executive-monarch (chief of state), prime  minister (head of government), Cabinet. Legislative-Bicameral Parliament (First and Second Chambers). Judicial-Supreme Court.Subdivisions:  12 provinces.Political parties: Christian Democratic Appeal (CDA), Labor Party (PvdA), Liberal Party (VVD), Democrats '66 (D'66), other minor parties. Suffrage:  Universal over 18.Defense (1989): 2.9% of GNP.Flag: Three horizontal stripes:  red, white, and blue, from top to bottom.Economy GNP (1989): $224 billion; (1988) $227 billion.  GNP per capita (1988): $15,000.  Annual growth rate (1989):  4.2%. Per capita income (1989)  $13,500. Inflation (1989): 1%; 1988: 0.7%.  Unemployment (1989): 6%; (1988): 6%. Gov't deficit/GNP (1989): 5% (US: 3%).Natural resources: Natural gas.Agriculture (4% of Net National Income (NNI)): Products-dairy, poultry, meat, flower bulbs, cut flowers, vegetables/fruits, sugar beets, potatoes, wheat, barley, oats.Industry (19% of NNI): Types-steel, metal products, electronics, bulk chemicals, natural gas, petroleum products, transport equipment.Trade (1989):  Exports-$103 billion:  mineral fuels, chemical products, machinery and transport equipment, foodstuffs.  Imports-$104 billion:  mineral fuels and crude petroleum, machinery, chemical products, foodstuffs. Major trade partners-FRG, Belgium, Luxembourg, France, UK, US.Official exchange rate (average 1989): 2 Dutch guilders= US $1.Foreign Development aid:  1.5% of NNI, (1990 est.: $3 billion).Membership in International Organizations UN, North Atlantic Treaty Organization (NATO), European Community (EC), Organization for Economic Cooperation and Development (OECD), International Energy Agency (IEA), International Atomic Energy Agency (IAEA), European Monetary System, BENELUX Economic Union, European Space Agency (ESA), INTELSAT, Western European Union, others.PEOPLE     The Dutch are primarily of Germanic stock with some Gallo-Celtic mixture.  They have clung tenaciously to their small homeland against the constant threat of destruction by the North Sea and recurrent invasions by the great European powers.    Religion influences Dutch history, society, institutions, and attitudes and is closely related to political life, though to a diminishing degree.  The right of every individual to religious freedom is guaranteed by the constitution.  Although church and state are separate, a few historical ties remain-the royal family belongs to the Dutch Reformed Church (Protestant).    The arts have played a major role in the development and representation of Dutch culture.  The works of Old Masters, including Rembrandt and Hals, and later artists, such as Mondriaan and Van Gogh, are on display in museums throughout the Netherlands.  The government strongly supports artists, sculptors, and architects and attempts to use their works in public projects whenever possible.  The Amsterdam Concertgebouw Orchestra and the Residentie Orchestra in The Hague and the Rotterdam Philharmonic enjoy excellent international reputations.  The Netherlands' active intellectual life is stimulated by lively political satire and a counterculture and is sustained by prestigious universities.HISTORY     Julius Caesar found the Netherlands inhabited by Germanic tribes, one of which, the Batavi, did not submit to Rome until BC 13, and then only as an ally.  A part of Charlemagne's empire in the 8th century AD, the area later passed into the hands of the House of Burgundy and the Austrian Hapsburgs.  Falling under harsh Spanish rule in the 16th century, the Dutch revolted in 1558, under the leadership of Willem of Orange.  By virtue of the Union of Utrecht in 1579, the seven northern Dutch provinces became the Republic of the United Netherlands.    During the 17th century, considered its "golden era," the Netherlands became a great sea and colonial power.  Its importance declined, however, after wars with Spain, England, and France in the 18th century.  In 1795, French troops ousted Willem V of Orange, the Stadhouder under the Dutch Republic and head of the House of Orange.    Following Napoleon's defeat in 1813, the Netherlands and Belgium became the "Kingdom of the United Netherlands" under King Willem I, son of Willem V of Orange.  The Belgians withdrew from the union in 1830 to form their own kingdom.  King Willem II was largely responsible for the liberalizing revision of the constitution in 1848.    The Netherlands prospered during the long reign of Willem III (1849-90).  At the time of his death, his daughter, Wilhelmina, was 10 years old.  Her mother, Queen Emma, reigned as regent until 1898 when Wilhelmina reached the age of 18 and became the monarch.    The Netherlands proclaimed neutrality at the start of both world wars.  Although the Netherlands escaped occupation in World War I, German troops overran the country in May 1940.  Queen Wilhelmina fled to London and established a government-in-exile. Shortly after the Netherlands was liberated in May 1945, the queen returned.  Crown Princess Juliana succeeded to the throne in 1948 upon her mother's abdication.  In April 1980, Queen Juliana abdicated in favor of her daughter, now Queen Beatrix.    The Netherlands' once far-flung empire was granted full independence or nearly complete autonomy after World War II.  Indonesia formally gained its independence in 1949, and Suriname became independent in 1975.  The five islands of the Netherlands Antilles (Curacao, Bonaire, Saba, St. Eustatius, and a part of St. Maarten) are an integral part of the Netherlands realm but enjoy a large degree of autonomy.  On January 1, 1986, Aruba, which had been a part of the Netherlands Antilles, was granted a separate status within the kingdom on par with, but apart from, the Netherlands Antilles.    [For more information, see Background Notes on Netherlands Antilles.]GOVERNMENT     The present constitution dates from 1848 and has been amended several times.         The first level administrative divisions are the 12 provinces, each governed by a locally elected provincial council and a provincial executive appointed by members of the provincial council.  The province is formally headed by a queen's commissioner appointed by the crown.    The government is based on the principles of ministerial responsibility and parliamentary government.  It is composed of three institutions:  the crown, the States General, and the courts.The Crown    --  The monarch is the titular head of state.  The queen's function is largely ceremonial, but she does have some influence deriving from the traditional veneration of the House of Orange (from which Dutch monarchs for more than three centuries have been chosen), the personal qualities of the queen, and her power to appoint the formateur, who forms the Council of Ministers following elections.    --  The Council of Ministers plans and implements government policy.  Most ministers also head government ministries, although ministers without portfolio exist.  The ministers, collectively and individually, are responsible to the States General (parliament).  Unlike the British system, Dutch ministers cannot simultaneously be members of parliament.    --  The Council of State, a constitutionally established advisory body to the government, consists of members of the royal family and crown-appointed members generally having political, commercial, diplomatic, or military experience.  The Council of State must be consulted by the cabinet on proposed legislation before a law is submitted to parliament.  The Council of State also serves as a channel of appeal for citizens against executive branch decisions.States General (Parliament)     The Dutch parliament consists of two houses, the First Chamber and the Second Chamber.  Historically, Dutch governments have been based on the support of a majority in both houses of Parliament.    The Second Chamber is by far the more important of the two houses.  It alone has the right to initiate legislation and amend bills submitted by the Council of Ministers and shares with the First Chamber the right to question ministers and state secretaries.    The Second Chamber consists of 150 members, directly elected for a 4-year term (unless the government falls prematurely) on the basis of a nationwide system of proportional representation.  This system means that members represent the whole country, rather than individual districts as in the United States, and are normally elected on a party slate, not on a personal basis.  The electoral system makes a coalition government almost inevitable.  Elections for the Second Chamber were held in September 1989.  New elections are not constitutionally required until 1993.    The First Chamber is composed of 75 members elected for 4-year terms by the 12 provincial legislatures.  It cannot initiate or amend legislation, but its approval of bills passed by the Second Chamber is required before bills become law.  The First Chamber generally meets only once a week, and its members usually have other full-time jobs.  The last First Chamber was constructed as a result of provincial assembly elections in June 1987; the Chamber will next be revised following such elections in March 1991.Courts    The judiciary comprises 62 cantonal courts, 19 district courts, 5 courts of appeal, and a Supreme Court which has 24 justices.  All judicial appointments are made by the crown.  Judges are nominally appointed for life but, in fact, are retired at age 70.POLITICAL CONDITIONS     From the end of World War II until December 1958, the Netherlands was governed by a series of coalitions built on a Labor-Catholic base.  Since 1958, governments have been formed primarily from a center-right coalition of the Christian Democrats and the Liberals.  The social democratic-oriented Labor Party generally has been in opposition, except between 1973-77 and briefly from April 1965 to October 1966, and from September 1981 to May 1982.  The Labor Party is part of the present coalition.    The current government, formed in November 1989, is a center-left coalition of the Christian Democratic Appeal (CDA) and Liberal (VVD) parties headed by Prime Minister Ruud Lubbers of the CDA.  The government has the support of 103 of the 150 members of the Second Chamber who represent 10 political parties.  The four largest parties hold 137 of the 150 seats.  They are:    --  Christian Democratic Appeal (CDA) was formed from a merger of the Catholic People's Party and two Protestant parties, the Anti-Revolutionary Party and the Christian-Historical Union.  The merger process,  begun in the early 1970s to attempt to stem the tide of losses suffered by religiously based parties, was completed in 1980.  The CDA occupies the political center among the major Dutch political parties.  It supports free enterprise and NATO membership and holds to the principle that government activity should supplement but not supplant communal action by citizens.  On the political spectrum, the CDA sees its philosophy as standing between the "individualism" of the Liberals and the "statism" of the Labor Party.  The CDA won 54 seats in 1989 parliamentary elections.  This equalled the party's strong showing in the 1986 elections.    --  Labor Party (PvdA), a European social democratic party, is left of center.  Labor has 49 seats in the current Second Chamber which makes it the second largest party after the CDA.  The party joined the CDA to form the present government, after having spent most of the past 11 years in opposition.  Labor's program is based on greater social, political, and economic equality for all citizens, although in recent years the party has begun to debate the role of central government in that process.  The PvdA supports Dutch NATO membership but has been critical of some alliance policies, particularly regarding nuclear weapons.  Although called he "Labor Party," it has no formal links to the trade unions.    --  The Liberal Party (VVD) is "liberal" in the European, rather than American, sense of the word.  It thus attaches great importance to private enterprise and the freedom of the individual in political, social, and economic affairs.  The VVD is generally seen as the most conservative of the major parties and solidly supports most NATO policies.  The VVD was the junior partner in two governing coalitions with the CDA from 1982-89, but is now in opposition with 22 seats in the Second Chamber.      --  Democrats '66 (D'66), largest of the "small" parties in the Dutch parliament. The electoral fortunes of D'66 have fluctuated widely since the party's founding in 1966.  The 12 seats it currently holds are slightly above the historical average of the party's showing over the last 20 years.  D'66 is a center-left party, generally portrayed as between the CDA and PvdA, with its strongest support among young, urban, professional voters.  D'66 is currently an opposition party.ECONOMY     The Dutch economy is based on private enterprise.  Although the government has little direct ownership or participation, it heavily influences the economy, with more than 45% of the gross national product (GNP) involved in its operations and social programs (including transfer payments).  The government plays a significant economic role through the many permit requirements and regulations pertaining to almost every aspect of economic activity.    Services, which account for more than half of the national income, are primarily in transport and financial areas, such as banking and insurance.  Industrial activity provides about 22% of the national income and is dominated by the metalworking, oil refining, chemical, and food-processing industries.  Construction amounts to about 9% of the national income.  Agriculture and fishing, although visible and traditional Dutch activities, account for slightly more than 4%.    Foreign trade heavily influences the open Dutch economy, with exports accounting for 66% of GNP.  The Netherlands find a liberal commercial policy advantageous and participates in the European Community (EC), the Benelux Economic Union, and the European Monetary System.  It is a firm supporter of the General Agreement on Tariffs and Trade (GATT) and supports multilateral trade negotiations to establish freer and expanded world trade.    The recent political developments in Eastern Europe are not expected to have significant effects on the Dutch economy during the next few years because the Dutch level of trade and investment in those countries is very low.    In 1959, the vast Slochteren gasfield in Groningen Province began production and is now one of the world's largest producing natural gasfields.  In addition, the Netherlands also discovered gas on the North Sea's continental shelf.  At present, total proven natural gas reserves (mainland and North Sea) amount to 1.2 trillion cubic meters.  The reserves of other Dutch gasfields, including the Dutch North Sea sector, total about 24% of those of Slochteren.  Current gas production is running annually at about 72 billion cubic meters, roughly half of which is exported to EC member countries.  General government revenues from natural gas totaled about $8.7 billion in 1986 and accounted for more than 14% of total government revenue, dropping to $2.9 billion in 1989 (4% of revenue).    Dutch economic growth has improved after several years of lackluster performance.  The annual growth rate in 1989 was 4.2%, while inflation remained low at 1.1%.  Corporate investment has been high.  Weakening domestic demand and slower increases in export demand are expected to slow down the rate of expansion in 1990.  The Netherlands' balance-of-payments current account displays a strong surplus.    The CDA/VVD coalition under Prime Minister Ruud Lubbers has agreed on the broad outlines of its economic policy for the 1990-94 period, leaving the basic goals of the previous government intact, but changing its emphasis.  The new policies will boost public spending on the environment by $3 billion and education, housing, social security, and health by $1 billion over the next four years.  Defense spending will grow by just 0.6% in 1990 and 1991, and will be frozen in 1992 and 1993.  In total, the new policy measures will increase public spending by 4.6 billion guilders (about $2.3 billion) per year by 1994.Environmental Policy     Awareness of the environment plays a major role in Dutch life.  In 1988, the Netherlands spent 1.34% of its GNP on environmental protection-almost twice as much per capita as in the United States.  The Dutch Ministry of Environmental Affairs has released an ambitious and expensive-$3 billion-environmental plan for 1990-94.  Under this plan, Dutch industry will be required to double its spending on environmental protection.  By 1994, industry will have to spend an extra $1 billion each year to meet stricter pollution control guidelines.    In November 1989, Prime Minister Lubbers presented his government's proposals to the States General.  The Dutch goal is to make production and consumption compatible with the conditions of sustainable development within one generation.  In June 1990, a supplement to the environmental plan, "Nmp-Plus", was submitted, including plans for a leveling off and eventual reduction in CO2 emissions by 2000.    To finance this program, a CO2 levy has been introduced, which is expected to generate $75 million in 1990.  This will be spent on anti-acidification measures ($20 million), energy conservation ($30 million), and promotion of public transport ($25 million).     FOREIGN RELATIONS     The Netherlands abandoned its policy of neutrality after World War II, and joined the NATO alliance as the best means to ensure security and promote national interests.  The postwar Netherlands governments have followed an active, engaged foreign policy in many areas of the world.    In addition to pursuit of national interests, Dutch foreign policy in recent years has been rooted in several important principles, which include the promotion of peace and security in Europe, support for Third World development, and respect for international law and human rights.    The Netherlands seeks to advance many of its objectives through multilateral cooperation.  It was a founding member of the European Community, has long based its security policy upon membership in NATO, and is one of five nations to sign the Schengen Accord abolishing border controls between itself and Belgium, Luxembourg, France, and Germany).    Economic and trade policy is closely coordinated through the European Community and, to a lesser extent, other international bodies, such as the Organization for Economic Cooperation and Development, GATT, and the International Monetary Fund.    Other foreign policy interests generally take into account consultations within European Political Cooperation, the political consultation process of the EC.  The Netherlands also is a member of the Benelux group (Belgium, Netherlands, Luxembourg).  Finally, the Netherlands is an active and responsible participant in the United Nations and its affiliated organizations.    The Netherlands is a strong proponent of North-South cooperation and maintains an impressive development assistance program.  Aid commitments are fixed by law at 1.5% of net national income, although actual disbursements have not always reached that level.  For 1990, the development assistance program will give special attention to four transnational problems:  poverty, population, environment, and debt.  The Netherlands has had a long term development relationship with 10 "program" countries (Bangladesh, Egypt, India, Indonesia, Kenya, Yemen, Pakistan, Sudan, Sri Lanka, Tanzania) and three geographic regions (the Sahel, Southern Africa, and Central America).  They also contribute large amounts of aid through multilateral channels, especially the UN Development Program, International Development Association, and EC programs.  A large portion of Dutch aid funds are channelled through private ("cofinancing") organizations that have almost total autonomy in choice of projects.  The Dutch are members of the European Bank for Reconstruction and Development (EBRD) which was formed recently to finance economic reforms in Eastern Europe.US-DUTCH RELATIONS     Our partnership with the Netherlands is our oldest continuous relationship and dates back to the American revolution.  Our excellent bilateral relations are based on close historical and cultural ties and a common dedication to individual freedom and uman rights.  An outward-looking nation, the Netherlands shares with the United States a commitment to an open market and free trade.    In May 1989, Prime Minister Lubbers was in Washington on a private visit and met with President Bush, and 2 months later, President Bush became the first American President to visit the Netherlands while in office.  The President went to the Netherlands as a guest of Queen Beatrix and spoke in the church in Leiden used by the Pilgrims before many of them sailed to America.  The United States and the Netherlands often have similar positions on issues affecting NATO, regional problems, trade, and economic cooperation which enables them to work together both bilaterally and in the United Nations and other international and regional organizations.DEFENSE     The defense structure of the Netherlands comprises the Ministry of Defense and the various branches of the armed forces.  Political responsibility for the defense of the Netherlands lies with the minister of defense and the state secretary for defense.  The Dutch, as members of NATO, are engaged in arms control negotiations with members of the Warsaw Pact which will affect the size and equipment of the participants' conventional military forces.    The Royal Netherlands Army Forces (RNAF) has a total peacetime personnel strength of about 123,000 military and civilians.  The Royal Netherlands Navy is composed of escort ships, submarines, maritime patrol aircraft, helicopters, a mine countermeasure force, and a Marine Corps, as well as the necessary supporting elements.  Priority has been given to anti-submarine warfare, with emphasis on air defense and surface warfare.  The weapons systems of the Royal Netherlands Air Force are primarily fighter aircraft and surface-to-air guided weapons. Principal Government Officials Head of State-Queen Beatrix Council of Ministers Prime Minister-Ruud Lubbers Vice Prime Minister and Finance-Wim Kok Foreign Affairs-Hans van den Broek Ambassador to the United States-Johan H. Meesman Ambassador to the UN- Robert Jan van SchaikPrincipal US Officials Ambassador-C. Howard Wilkins, Jr. Deputy Chief of Mission-Thomas H. Gewecke Political Counselor-Lawrence G. Rossin Economic Counselor-George Boutin Administrative Counselor-Timothy E. Roddy Commercial Counselor-Michael Hegedus Public Affairs Counselor-C. William La Salle Defense and Naval Attache-Capt. Bruce Barker Army Attache-Col. William Mitchell Air Attache-Col. Allen Ryals Agriculture Counselor-Norval Francis Chief, Office of Defense Cooperation-Col. Charles W. Brewer, USAF Country Attache:  Narcotics-Joseph Beachell Customs Attache-Robert L. Gerber Consul General, Amsterdam-Jake M. Dyels    The US Embassy is located at Lange Voorhout 102, 2514 EJ The Hague (telephone no. (070) 3-62-49-11). The consulate general is at Museumplein 13, 1071 DJ Amsterdam  (tel. [phone]).TRAVEL NOTES     Clothing:  Clothing needs are similar to those of Seattle, Washington. Currency unit is the Dutch guilder (Fl.); foreign exchange control regulations place no limit on the amount of foreign currency or negotiable instruments that may be imported. Health:  Medical facilities are good.  Community sanitation is comparable to standards in US cities.     Telecommunications:  Facilities are good for local and long-distance use.  Amsterdam and The Hague are six time zones ahead of eastern standard time.     Transportation:  Good public transportation by bus and streetcar is available in the cities and serves principal sectors of the city as well as the suburbs.  Most Dutch cities are connected by rail, and almost all regions of the Netherlands are accessible by good public transportation.  Excellent transportation to other principal European cities also is available.  The main international airport is at Schiphol, near Amsterdam, but a few international flights also arrive at Rotterdam and Maastricht Airports.    Published by the United States Department of State --  Bureau of Public Affairs  -- Office of  Public Communication  --  Washington, DC  --  Jan. 1991  --  Editor:  Susan Holly     Department of State Publication  7967 -- Background Notes Series  --  This material is in the public domain and may  be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, US overnment Printing Office, Washington, DC  20402.  (###)</text>
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        <text>NEPAL BACKGROUND NOTES (AUGUST 1990)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEAugust 1990PROFILEGeographyArea: 147,181 sq. km. (56,136 sq. mi.); slightly larger than Arkansas.  Cities:Capital--Kathmandu (pop. 422,237).  Other cities--Patan, Bhaktapur,Pokhara, Biratnagar, Birganj.  Terrain: Three distinct topographical regions:flat and fertile in the south; the lower Himalayas and swiftly flowing mountainrivers forming the hill country in the center; and the high Himalayas formingthe border with Tibet in the north.  Climate: Ranges from subtropical in thesouth to cool summers and severe winters in the northern mountains.PeopleNationality: Noun--Nepalese (sing. and pl.).  Adjective--Nepalese or Nepali.Population (1989 est.): 18 million.  Annual growth rate: 2.6%. Ethnic groups:Brahmans, Chetris, Gurungs, Magars, Tamangs, Newars, Bhotias, Rais,Limbus, Sherpas.  Religions: Hinduism (89.5%), Buddhism (5.3%), Islam(2.6%) and others (2.6%).  Languages: Nepali and more than 12 others.Education: Years compulsory--3.  Attendance--primary 77.4%, secondary22.6%.  Literacy--(1987) 33%.  Health (1987): Infant mortalityrate--107/1,000.  Life expectancy--54.4 yrs. (male), 51.6 yrs. (female).  Workforce: Agriculture--91.1%.  Industry--2%.  Services--5%.  Other--1.9%.GovernmentType: Monarchy.  Constitution: December 16, 1962; first amendment--Jan.27, 1967; second amendment--Dec. 12, 1975; third amendment--Dec. 15,1980.Branches: Executive--king (chief of state), prime minister (head ofgovernment).  Legislative--Rastriya Panchayat (National Parliament).Judicial--Supreme Court.Subdivisions: 14 zones and 75 districts.Political parties: In transition.  Suffrage: Universal over 21; September 1990constitution expected to lower age to 18.Central government budget (FY 1989-90): $733.4 million.Defense (FY 1989-90): $40.4 million or 5.5% of government budget.National Day: December 29, King Birendra's birthday.Flag: Two blue-edged red triangles pointing away from staff, with symbolsof the sun and moon in white.EconomyGDP (FY 1989-90) $2.7 billion.  Annual growth rate: 4.8% (at constant1974-75 prices).  Per capita income: $150.  Avg. inflation rate (1985-89):10.1%.Natural resources: Water, timber, hydroelectric potential, scenic beauty,limited but fertile agricultural land.Agriculture (60% of GDP): Products--rice, wheat, jute, millet, maize,sugarcane, oilseed, potatoes.  Land--16.5% cultivated (1981 est).Industry (5.7% of GDP): Types--cigarettes, garments, soap, matches, bricks,sugar, lumber, jute, hydroelectric power, cement.Trade (FY 1987-88): Exports--$187.0 million: agricultural products, timber.Major market--India.  Imports--$630.4 million: textiles, other manufacturedgoods.  Major supplier--India.Official exchange rate (Aug. 1989): 27.70 Nepalese rupees=US$1.Fiscal year: Mid-July to mid-July.Membership in International OrganizationsUN and all but two of its specialized and related agencies, including theWorld Bank and the International Monetary Fund (IMF), NonalignedMovement, Colombo Plan, Asian Development Bank (ADB), and Economicand Social Commission for Asia and the Pacific (ESCAP).  South AsianAssociation for Regional Cooperation (SAARC).GEOGRAPHYThe Kingdom of Nepal is located in central Asia on the southern slopes ofthe Himalayan Mountains.  This landlocked country of 965 kilometers (500mi.) by 161 kilometers (100 mi.) is bordered by India and the Tibetan regionof China.Nepal has three distinct topographical regions, each running laterallythrough the country.  In the south, a flat, fertile strip of territory called theTerai is part of the Ganges Basin plain.  Central Nepal, known as the "hillcountry," is crisscrossed by the lower ranges of the Himalayas and byswiftly flowing mountain rivers.  The high Himalayas form the border withTibet in the north.  Eight of the world's ten highest peaks are in this area.The highest, Mt. Everest, is 8,847 meters (29,028 ft.) above sea level.Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.)elevation in the middle hill region.Nepal's climate ranges from subtropical in the south to cool summers andsevere winters in the northern mountains.  At Kathmandu, the average hightemperature is 30 0C (86 0F) in May, and the average low is 1.6 0C (33 0F)in December.  The monsoon season is from June through September andbrings 75 to 150 centimeters (30-60 in.) of rain.  Showers occur almostevery day and can continue for several days.  From October throughMarch, sunny days and cool nights prevail.PEOPLEThe Nepalese are descendants of three major migrations from India, Tibet,and central Asia.  Among the earliest inhabitants were the Newars of theKathmandu Valley and aboriginal Tharus in the southern Terai region.  Theancestors of the Brahman and Chetri caste groups came from India, whileother ethnic groups trace their origins to central Asia and Tibet, includingthe Gurungs and Magars in the west, Rais and Limbus in the east, andSherpas and Bhotias in the north.In the Terai, a part of the Ganges Basin plain, much of the population isphysically and culturally similar to the Indo-Aryan people of northern India.People of Indo-Aryan and/or Mongoloid stock live in the hill region.  Aboutone-half of Nepal's population lives in the Terai--about 20% of the landarea--while the other half lives in the central or hilly region.  Themountainous highlands are sparsely populated.  Kathmandu Valley, in thecentral region, constitutes a small fraction of the nation's area but is themost densely populated, with almost 5% of the population.Religion is important in Nepal.  Kathmandu Valley has more than 2,700religious shrines.  Temples, stupas, and pagodas vary in size and shape;some are austere in their simplicity, while  others are ornate.  Officially,Nepal is Hindu, with about 90% of the population nominally Hindu.However, Hinduism has been influenced by and has influenced a largeBuddhist minority; the result is a synthesis of the two.  Because of thisrelationship, Hindu temples and Buddhist shrines are mutually respected,and Buddhist and Hindu festivals are occasions for common worship andcelebration.  In addition, Nepal has small Muslim and Christian minorities.Certain animistic practices of old indigenous religions also exist.Nepali is the official language, although a dozen different languages andabout 30 major dialects are spoken throughout the country.  Derived fromSanskrit, Nepali is related to the Indian language, Hindi, and is spoken byabout 90% of the population.  Many Nepalese in government and businessalso speak English.HISTORYModern Nepal was created in the latter half of the 18th century when PrithviNarayan Shah, the ruler of the small principality of Gorkha, formed a unifiedcountry from a number of independent hill states.  The country wasfrequently called the Gorkha Kingdom, the source of the term "Gurkha" forNepalese soldiers.After 1800, the heirs of Prithvi Narayan Shah proved unable to maintain firmpolitical control over Nepal.  A period of internal turmoil followed, heightenedby Nepal's defeat in a war with the British from 1814 to 1816.  Stability wasrestored after 1846 when the Rana family gained power, entrenched itselfthrough hereditary prime ministers, and reduced the monarch to afigurehead.  The Rana regime, a tightly centralized autocracy, pursued apolicy of isolating Nepal from external influences.  This policy helped Nepalmaintain its national independence during the colonial era, but it alsoimpeded the country's economic development.In 1950, King Tribhuvan, a direct descendant of Prithvi Narayan Shah, fledhis "palace prison" to newly independent India, touching off an armed revoltagainst the Rana administration.  This allowed the return of the Shah familyto power and, eventually, the appointment of a non-Rana as prime minister.The 1950s was a period of quasiconstitutional rule during which themonarch, assisted by the leaders of fledgling political parties, governed thecountry.  At times, the government was led by prime ministers from theseparties who represented a variety of views; during other periods themonarch ruled directly.  King Tribhuvan was succeeded after his death in1955 by his son, King Mahendra.  During this decade, efforts were made toframe a constitution for Nepal that would establish a representative form ofgovernment, patterned on a modified British model.In early 1959, such a constitution was issued by King Mahendra, andshortly thereafter the first democratic elections were held for a nationalassembly.  The Nepali Congress Party, a moderate socialist group, gaineda substantial victory in the election.  Its leader, B.P. Koirala, was called uponto form a government and serve as prime minister.Less than 18 months later, however, King Mahendra declared theexperiment in parliamentary democracy a failure, dismissed the Koiralagovernment, suspended the constitution, and again ruled directly from thepalace.  The king charged the Nepali Congress Party's government withcorruption, misuse of power, and inability to maintain law and order.  Hedeclared that Nepal needed a democratic political system closer toNepalese traditions.  To meet this need, the King promulgated a newconstitution on December 16, 1962, establishing a partyless system ofpanchayats (councils).  This was a pyramidal structure progressing fromvillage assemblies to a National Parliament (Rastriya Panchayat), withpanchayats elected at the village, town, and district levels by their respectiveassemblies.  With the panchayat system firmly established by 1967, KingMahendra began working out an accommodation with former political partymembers, and participation in the government by former political leaderswas encouraged.  The parties thereby gained a degree of legitimacy despitetheir official nonexistence--a situation which still exists.In January 1972, King Mahendra died of a heart attack and was succeededby his 27-year-old son, King Birendra.  In the spring of 1979, studentdemonstrations and antiregime activities led to a call by King Birendra fora national referendum to decide on the nature of Nepal's government--eitherthe continuation of the panchayat system or the establishment of amultiparty system.  In a December 1979 speech, the king promised tofurther democratize the constitution if the panchayat system was retained.The referendum was held in May 1980, and the partyless panchayat systemwon a narrow victory.  The king carried out the promised reforms, providingfor election to the Rastriya Panchayat by universal suffrage.  The Panchayatalso was granted greater power than it had previously, including selectionof the prime minister.A second round of voting was held in the spring of 1981 to elect a newPanchayat.  The election was boycotted by most of the major politicalgroups, which had expressed unhappiness with the king's political reforms(political parties were still banned).  Nevertheless, the election attracted abroad array of candidates and a good turnout at the polls.  Surya BahadurThapa, prime minister from the time of the student uprisings in 1979 untilthe election, was renominated by an overwhelming majority of Panchayatmembers when they convened in June 1981.  Thapa's government wasremoved following a "no confidence" motion in the Panchayat in 1983.  Hewas replaced by Lokendra B. Chand, who continued as prime minister untilannouncement of the 1986 Panchayat elections.Negotiations to allow individuals to run who were identified as political partysupporters broke down at the last moment.  Major parties again sat out theelection, with the exception of certain leftist groups.  These groupsmanaged to elect about a dozen candidates under the panchayatguidelines, which required running without party affiliation.  A majority of theincumbents seeking reelection were defeated, including several veteranpanchayat system supporters.  Marich Man Singh Shrestha was named asthe first ethnic Newar prime minister.April 1990 saw many democratic changes following an agitation movementled by the Nepali Congress Party and the United Left Front (a coalition ofseven communist parties), which led to demonstrations and strikes primarilyin the major cities of Nepal during February and March.  The kingresponded by dissolving the panchayat system, lifting the ban on all politicalparties, and removing all references to the "partyless" structure from theconstitution.  At the same time, all political prisoners were released.  Aninterim government sworn in on April 19th and headed by Prime MinisterKrishna Prasad Bhattarai was charged with running the country and guidingdemocratic reforms until elections could be held.  The interim governmentis made up of members of the Nepali Congress Party, the communistparties of Nepal, royal appointees, and independents.  Members of thenational Panchayat have formed at least two political parties.  A ConstitutionReforms Commission was named by the king in late May to draft a newconstitution prior to holding elections, which are expected in early 1991.GOVERNMENT AND POLITICAL CONDITIONSPending adoption of a new constitution resulting from a democratic reformprocess which began in April 1990, there is a multi-party political coalitionleading a transitional interim government until democratic elections are held.The former "partyless" panchayat system of government, formallyestablished in 1962, granted the king (chief of state) sole authority for allinstitutions.  The government consisted of a Council of Ministers (cabinet),functioning as the executive arm, and the panchayat structure.  The RastriyaPanchayat, the National Parliament, with 112 members elected by universalsuffrage and 28 members appointed by the king, topped this structurealong with a Raj Sabha (Council of State).  Nepal is divided into 14 zonesand 75 districts.  Zonal commissioners and their assistants and chief districtofficers--all appointees of the central government--administered these areas.The post of zonal commissioner has now been abolished.  The formersystem of local government consisted of town and village panchayats, withevery citizen 21 and older being a member of one of these assemblies.At present, Prime Minister Bhattarai heads the interim coalition government.He also maintains his position as acting president of the Nepali CongressParty.  Upon taking office on April 19, 1990, he announced three goals forthe interim government: to establish a constitutional reform process, toresolve the dispute with India, and to guide the country to free and fairmulti-party elections within 1 year.  The king and members of the formergovernment have given full and public support for the democratizationprocess and the goals outlined by the interim government.  Two of thegoals have already been attained.  In May 1990, a Constitutional ReformsCommission was established to oversee the drafting of a new constitutionwithin 90 days.  On June 10, 1990, India and Nepal agreed to restoreeconomic relations to the way they were prior to April 1, 1987.  Once thenew constitution has been drafted, the Nepalese are expected to holdelections  in March or April of 1991.Political parties were forced to operate underground from 1960 until therecent democratic reforms.  The Nepali Congress Party, while maintaininga low-key public profile during this period, was the leading oppositionagainst the panchayat system.  The leadership of the Nepali Congress Partyis elderly and cautious, and the party has historic ties with the IndianCongress Party.  The communist groups cover a wide range of leftistpolitical ideologies and, in the past, were unable to unite.In January 1990, seven of the nine leftist groups joined into a loose coalitioncalled the United Left Front.  The leftist groups, which had also previouslybeen unwilling to unite with the Nepali Congress Party to form abroad-based front against the former government, agreed in February tosupport the Nepali Congress Party's "movement to restore democracy."This unprecedented alliance eventually negotiated with King Birendra, whoagreed to the formation of an interim government.  Both groups agree,however, that the institution of the monarchy should remian in some formbecause it lends stability to the political system and provides an importantsymbol of national identity for the culturally diverse Nepali people.Nepal's judiciary has been legally independent of the executive andlegislative branches but generally was not assertive in challenging theexecutive.  During the transition period beginning in April, the judiciary hasremained legally independent.  Under the 1962 constitution, appointmentsto the Supreme Court and the regional courts are made by the king, whileappointments to the lower courts are made by the cabinet on therecommendation of the Judicial Service Commission.  All lower courtdecisions, including acquittals, are subject to appeal, and the SupremeCourt is the court of last appeal.  The king has held executive privilege togrant pardons and set aside judgments.There are hundreds of small, privately owned newspapers which are nowfree to expound divergent viewpoints as a result of the elimination of allpress restrictions following the change of government in April.  The presshad been strictly constrained by laws forbidding criticism of the monarchyand of the partyless system and by regulations requiring registration andfixed publication schedules.Interim Cabinet (formed April 19, 1990)Chief of StateKing--Birendra Bir Bikram Shah DevQueen--Aishwarya Rajya Laxmi Devi ShahCouncil of MinistersPrime Minister, Royal Palace Affairs, Foreign Affairs, and Defense--KrishnaPrasad Bhattarai (NCP)Home and Communications--Yog Prasad Upadhyaya (NCP)Finance--Dr. Davendra Raj Pandey (I)Industry and Commerce--Mrs. Sahana Pradhan (ULF)Agriculture, Land Reform and Management, and Forests and SoilConservation--Jhala Nath Khanal (ULF)Law and Justice, Labor and Social Welfare, and Tourism--Nilambar Acharya(ULF)Health--Dr. Mathura Prasad Shrestha (I)Education and Culture and General Administration--Dr. Keshar JungRayamajhi (K)Housing and Physical Planning--Achyut Raj Regmi (K)Water Resources and Local Devlopment--Mahendra Narayan Nidhi (NCP)Supplies and Works and Transport--Marshal Julum Shakya (NCP)Key:NCP-Nepali Congress PartyULF-United Left FrontK-appointed by kingI-independentOther OfficialsChief Justice--Dhanendra Bahadur SinghChairman, Standing Committee of Raj Sabha (Council of State)--AnirudraPrasad SinghChief of Army Staff--Gen. Satchit Shum-shere J.B. RanaAmbassador to the United States--Dr. Mohan Man SainjuAmbassador to the United Nations--Jai Pratap RanaNepal maintains an embassy in the United States at 2131 Leroy Place, NW,Washington, DC 20008 (tel. [phone]).  The Nepalese Mission to theUnited Nations is at 300 E. 46th Street, New York, NY 10017.ECONOMYNepal ranks among the world's poorest countries, with a per capita incomeof about $150. It maintained a self-imposed isolation until the middle of thiscentury. When its modern era began in 1951 with the ouster of the Ranaregime, Nepal had virtually no schools, hospitals, roads,telecommunications, electric power, industry, or civil service.  Its economicstructure was based on subsistence agriculture.  A start has been madetoward sustainable economic growth through government efforts andsubstantial amounts of external assistance, principally from India, thePeople's Republic of China, the United Kingdom, the United States, andseveral multilateral organizations (e.g., the World Bank, UN DevelopmentProgram).  Nepal has completed six economic development plans, and1990 will be the final year of the seventh plan.  The first four emphasized thedevelopment of transportation and communication facilities, agriculture, andindustry.  Plans since 1975 also have placed emphasis on improvedgovernment administration and on rural development efforts that respondmore directly to the needs of rural people.The economic development plans have brought some progress, especiallyin social services and infrastructure.  A countrywide primary educationsystem is under development, and Tribhuvan University has several dozencampuses.  Malaria was controlled in the fertile but previously uninhabitableTerai, although its resurgence is requiring additional control efforts.Kathmandu is linked to India, Tibet, and nearby hill regions by road, and thehighway network is expanding.  Major towns are now connected to thecapital by telephone network and national airline service.  A system ofinternal finance and public administration has been established.  Industry,concentrated in the Kathmandu Valley and the southeastern part of thecountry, is small and generally produces items for local consumption.However, the garment and carpet industries, oriented toward exports, haveexperienced rapid growth in recent years.  Efforts also are being made todevelop a network of cottage industries specializing in textiles, furniture, andsoap.Progress also has been made in exploiting Nepal's major economicresources--hydroelectric potential and tourism.  Several hydroelectricprojects have been completed.  The swift rivers flowing south through theHimalayas to the plains afford considerable potential for developinghydroelectric power.  India and Nepal have joint irrigation-hydroelectricprojects on the Kosi, Trisuli, and Gandaki Rivers.  A feasibility study isunderway on a dam project to tap the enormous potential of the KarnaliRiver in western Nepal.  The 60-megawatt hydroelectric project atKulekhani--funded by the World Bank, Kuwait, and Japan--began operationin 1982.  Kulekhani II, adding 32 megawatts, went into operation in 1987,and work on the 69-megawatt Marsyangdi hydroelectric project is nearingcompletion.  A national distribution grid is in place, and electricityconsumption is increasing at 15%-20% per year.  The next largehydroelectric project planned is the 402-megawatt Arun III Project.Engineering design works for the project should be completed in early 1991.Construction work should start in early 1992, with completion of the projectin 1997.Agriculture is still Nepal's principal economic activity, employing more than90% of the population and providing more than one-half of the country'sincome.  Only about 20% of the total area is cultivable, while another 33%is forested.  Rice and wheat are the main food crops.  The Terai regionproduces an agricultural surplus, part of which supplies the food-deficienthill areas.Mineral surveys are underway, but the steep mountain terrain makesexploitation difficult; however, small deposits of limestone, magnesite, zinc,copper, iron, mica, and cobalt have been found.  Royal Dutch Shell and aUS company, Triton, have received a concession to explore for petroleumin southeastern Nepal.Nepal's foreign trade has continued to be seriously out of balance in recentyears.  In FY 1987-88 Nepal exported $187 million worth of goods, up from$139 million the year before.  However, imports totaled $630 million in FY1987-88, up from $507 million a year earlier.  The structural adjustmentprogram undertaken since FY 1986-87 to speed up economic developmenthas slightly improved macroeconomic management.  Gross domesticproduct (GDP) in FY 1987-88 grew by almost 10% at 1974-75 prices.Exports grew by 34% over the previous year, reaching 6% of GDP.  Betteruse of foreign aid, along with increased exports and earnings from tourismand other services, improved  balance of payments and increasedinternational reserves through FY 1989.  As a result, Nepal's balance ofpayments showed a small surplus, with foreign exchange reserves raisedto the equivalent of about 7 months' imports.  However, a trade embargoimposed by India in March 1989 because of lapsed trade and transitagreements greatly set back economic growth in Nepal and placed anenormous financial burden on the economy.Population pressure on natural resources will increase in Nepal.  Thecountry's population probably will reach 20-22 million by the turn of thecentury.  Overpopulation is already straining the "carrying capacity" of themiddle hill areas.  Forest reserves have been depleted for crop land, fuel,and fodder, contributing to land erosion and flooding.  The government hasapproved a long-term policy for forestation and forestry managementreform.DEFENSENepal's military consists of an army of about 35,000 troops organized intoa royal guards brigade, seven infantry brigades, five battalions (parachute,artillery, Royal Military Police, engineer, and signal), and several separatecompanies.  There is a modest army air wing but no navy.  Trainingassistance is provided by India and the United Kingdom and by the UnitedStates through a $100,000 International Military Education and Training(IMET) Program.  The Royal Nepalese Army has served with distinction inthree UN peacekeeping missions and currently has a battalion-sizedcontingent attached to the UN Interim Force in Lebanon (UNIFIL).Nepalese troops have fought in the British Army since the early 19th centuryand for the Indian Army since 1947.  Agreements allowing the British andIndians to recruit in Nepal still are maintained.FOREIGN RELATIONSAs a small, landlocked country wedged between two larger and far strongerpowers, Nepal seeks good relations with both India and China.  Nepalformally established relations with China in 1955 and since then theirbilateral relations have generally been very good.  Because of strongcultural, religious, linguistic, and economic ties, Nepal's association withIndia traditionally has been closer than with China.In March 1989, however, the trade and transit agreements regulatingcommerce between Nepal and India lapsed and were not renewed by India.The Chinese have contributed large amounts of economic assistance toNepal and in mid-1988 provided, for the first time, some military assistanceas well--antiaircraft weapons, small arms, and trucks.  The 1989 disputeappears to be related to India's security concerns over Nepal's relationswith China, and this arms delivery reportedly was one of the factors whichprecipitated it.  This dispute abruptly decreased bilateral cross-border trade,leading to severe shortages in Nepal of petroleum, oil, lubricants, spareparts, and raw materials.  Nepal and India agreed in June 1990 to restorerelations to what they were prior to April 1987, and they expect torenegotiate trade and transit terms.Nepal and the United Kingdom have maintained various forms ofrepresentation for more than 150 years.  For many years, the British werethe only foreign power permitted to maintain a mission in Kathmandu.Nepal's relations with the United Kingdom continue to be quite friendly.The Soviet Union opened an embassy in Nepal in 1959 and during the1960s provided Nepal with economic assistance, largely in industry andtransportation.  In recent years Soviet aid has been inconsequential, limitedmainly to training and technical assistance.  A significant number ofscholarships in the USSR are offered to members of the Communist Partyof Nepal.On international issues, Nepal has followed a nonaligned policy and oftenvotes with the nonaligned group in the United Nations.  Nepal participatesin a number of UN specialized agencies and was president of the UNSecurity Council during the month of February 1989.US-NEPALESE RELATIONSUS-Nepalese relations, formally established in 1947, have been friendly.The US Embassy was opened in Kathmandu in 1959. King Birendra madea state visit to the United States in December 1983.  US policy toward Nepalhas three objectives: support for peace and stability in south Asia; supportfor Nepalese independence and territorial integrity; and support for one ofthe world's least developed countries in meeting its development needsthrough selected programs of economic aid and technical assistance.The United States has provided more than $300 million in economicassistance to Nepal since 1951.  In recent years, bilateral U.S. economicassistance through the Agency for International Development (AID) hasaveraged $15 million a year.  AID supports agriculture, health, familyplanning, and reforestation efforts in Nepal.  The United States alsocontributes to international institutions and private voluntary organizationsworking in Nepal.  These multilateral contributions to date have exceeded$250 million, including humanitarian assistance.  The Peace Corps hasprojects in Nepal in agriculture, education, health, and other rural programs.The first Peace Corps volunteers came to Nepal in 1962, and currently thereare about 140 volunteers posted there.Principal US OfficialsAmbassador--Julia Chang BlochDeputy Chief of Mission--Albert A. Thibault, Jr.Political and Economic Officer--Todd GreentreeEconomic and Commercial Officer--Carol Tyson ReynoldsAdministrative Officer--Norma L. KleiberConsular Officer--Charles ParishAID Director--Kelly KammererPublic Affairs Officer--Janey ColePeace Corps Director--Jonathan DarrahThe US Embassy in Nepal is located in Pani Pokhari, Kathmandu (tel.411179 or 412718).</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  MOROCCO, NOVEMBER 1994PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNovember 1994Official Name:  Kingdom of MoroccoPROFILEGeographyArea:  446,550 sq. km. (172,413 sq. mi.); slightly largerthan California.Cities:  Capital--Rabat (pop. 1.2 million in urbanprefecture of Rabat-Sale).  Other cities--Casablanca (3million), Marrakech, Fez, Tangier.Terrain:  Coastal plain, mountains, desert.  Climate:Mediterranean, becoming more extreme in the interior.PeopleNationality:  Noun and adjective--Moroccan(s).Population (est.):  28 million.Annual growth rate (est.):  2.2%.Ethnic groups:  Arab-Berber 99%.  Religions:  Muslim,Christian 1%, Jewish 0.2%.Languages:  Arabic (official), several Berber dialects;French is often the language of business, government, anddiplomacy.Education:  Years compulsory--7.  Literacy--43%.Health:  Infant mortality rate--53/1,000.  Life expectancy--66 years male, 69 years female.Work force (7.4 million):  Agriculture--50%.  Services--26%.Industry--15%.  Other--9%.GovernmentType:  Constitutional monarchy.Constitution:  September 1992.Independence:  March 2, 1956.Branches:  Executive--king (chief of state), prime minister(head of government).  Legislative--unicameral legislature(6-yr. term).  Judicial--Supreme Court.Political parties:  Socialist Union of Popular Forces(USFP), Istiqlal (independence) Party (PI), Popular Movement(MP), National Popular Movement (MNP), National Rally ofIndependents (RNI), Constitutional Union Party (UC),National Democratic Party (PND), Party of Progress andSocialism (PPS), Organization for Democratic and PopularAction (OADP).Suffrage:  Universal over 20.EconomyGDP (1992):  $27.7 billion.Per capita GDP:  $1,030.Natural resources:  Phosphates, fish, manganese, lead,silver, copper.Agriculture (18% of GDP):  Products--barley, wheat, citrusfruits, wine, vegetables, olives, livestock, fishing.Industry (34% of GDP):  Types--phosphate mining,manufacturing and handicrafts, construction and publicworks, energy.Trade (1992):  Exports--$4.7 billion:  food and beverages28%, semiprocessed goods 25%, consumer goods 26%, phosphates8%.  Major markets--EU 62%, India 7%, Japan 5%, U.S. 2%.Imports--$7.6 billion:  capital goods 27%, semiprocessedgoods 16%, raw materials 12%, fuel and lubricants 15%, foodand beverages 13%, consumer goods 9%.  Major suppliers--EU54%, U.S. 6%, Canada 3%,  Japan 2%.Official exchange rate (October 1994):  8.6 Dirham(Dh)=U.S.$1.PEOPLEMost Moroccans are Sunni Muslims of Arab, Berber, or mixedArab-Berber stock.  The Arabs invaded Morocco in the 7th and11th centuries and established their culture there.Morocco's Jewish minority numbers about 7,000.  Most of the100,000 foreign residents are French or Spanish; many areteachers or technicians.Arabic is the official and principal language, but French iswidely used in government and commerce, except in thenorthern zone, where Spanish is spoken.  In rural areas, anyof three Berber dialects--which are not mutuallyintelligible--are spoken.Most people live west of the Atlas Mountains, a range whichinsulates the country from the Sahara Desert.  Casa-blancais the center of commerce and industry and the leading port;Rabat is the seat of government; Tangier is the gateway toMorocco from Spain and also a major port; "Arab" Fez is thecultural and religious center; and "Berber" Marrakech is amajor tourist center.Education is free and compulsory through primary school.Education now surpasses national defense as the largest itemin the government's budget.  Of Morocco's severaluniversities, the most important is Muhammad V University inRabat.  Its students study medicine, law, liberal arts, andthe sciences.  Most university students benefit fromgovernment stipends.   In Fez, Morocco's religious capital,students from around the world study Islamic law andtheology at Karaouine University, which is more than 1,000years old.HISTORYMorocco's strategic location has shaped its history.Beginning with the Phoenicians, many foreigners have come tothis area, some to trade or settle, others as invaderssweeping the land and dominating it.  Romans, Vandals,Visigoths, and Byzantine Greeks successively ruled the area.Arab forces began occupying Morocco in the seventh centuryA.D., bringing with them Arab civilization and Islam.  Otherinvasions followed.  The Alaouite dynasty, which has ruledMorocco since 1649, claims descent from the ProphetMuhammad.Morocco's location and resources led to early competitionamong European powers in Africa, beginning with successfulPortu-guese efforts to control the Atlantic coast in the15th century.  France showed a strong interest in Morocco asearly as 1830.  Following recognition by the United Kingdomin 1904 of France's "sphere of influence" in Morocco, theAlgeciras Conference (1906) formalized France's "specialposition" and entrusted policing of Morocco to France andSpain jointly.  The Treaty of Fez (1912) made Morocco aprotectorate of France.  By the same treaty, Spain assumedthe role of protecting power over the northern and southern(Saharan) zones.The first nationalist political parties based theirarguments for Moroccan independence on such World War IIdeclarations as the Atlantic Charter (a joint statementissued by President Franklin D. Roosevelt and Prime MinisterWinston Churchill that sets forth, among other things, theright of all people to choose the form of government underwhich they will live).  A manifesto of the Istiqlal(Independence) Party in 1944 was one of the earliest publicdemands for independence.  That party subsequently providedmost of the leadership for the nationalist movement.France's exile of the highly respected Sultan Muhammad V in1953 and his replacement by the unpopular Muhammad BenAarafa, whose reign was perceived as illegitimate, sparkedactive opposition to the French protectorate.  Franceallowed Muhammad V to return in 1955; negotiations leadingto independence began the following year.The Kingdom of Morocco recovered its political independencefrom France on March 2, 1956.  By agreements with Spain in1956 and 1958, Moroccan control over certain Spanish-ruledareas was restored (see box, p. 2).  On October 29, 1956,the signing of the Tangier Protocol politically reintegratedthe former international zone.  Spain, however, retainedcontrol over the small enclaves of Ceuta and Melilla in thenorth and the enclave of Ifni in the south.  Ifni becamepart of Morocco in 1969.After the death of his father, Muhammad V, King Hassan IIsucceeded to the throne on March 3, 1961.  He recognized theRoyal Charter proclaimed by his father on May 8, 1958, whichoutlined steps toward establishing a constitutionalmonarchy.A constitution providing for representative government undera strong monarchy was approved by referendum on December 7,1962.  Elections were held in 1963.  In June 1965, followingstudent riots and civil unrest, the king invoked article 35of the constitution and declared a "state of exception."  Heassumed all legislative and executive powers and named a newgovernment not based on political parties.  In July 1970,King Hassan submitted to referendum a new constitutionproviding for an even stronger monarchy.  Its approval andthe subsequent elections formally ended the 1965 "state ofexception."An unsuccessful coup on July 10, 1971, organized by seniormilitary officers at Skhirat, was followed by Morocco'sthird constitution, approved by popular referendum in early1972.   The new constitution kept King Hassan's powersintact but enlarged from one-third to two-thirds the numberof directly elected parliamentary representatives.In August 1972, after a second coup attempt by Moroccan AirForce dissidents and the King's powerful Interior MinisterGeneral Oufkir, relations between the opposition and theCrown deteriorated, due to disagreement on oppositionparticipation in elections.  The king subsequently appointeda series of nonpolitical cabinets responsible only to him.Stemming from cooperation on the Sahara issue (see box),rapprochement between the king and the opposition began inmid-1974 and led to elections for local councils, withopposition party participation, in November 1976.Parliamentary elections, deferred because of tensions withSpain and Algeria over the Sahara dispute, were held in1977, resulting in a two-thirds majority for the government-backed independent candidates and their allies, the Istiqlaland the Popular Movement.  The Constitutional Union finishedfirst in local elections in June 1983 and parliamentaryelections in 1984.GOVERNMENTThe King is head of state, and his son, the Crown Prince, isheir apparent.  Under the 1992 constitution, a primeminister appointed by the King is head of government.  Ofthe 333-seat unicameral parliament, two-thirds of themembers are chosen directly by universal adult suffrage; theremaining one-third is indirectly elected by communitycouncils and business, labor, artisan, and farmer groups.The parliament's powers, though limited, were expanded bythe 1992 constitution and include budgetary matters,approving bills presented by the King and establishing adhoc commissions of inquiry to investigate actions by theexecutive branch.The highest court in the independent judicial structure isthe Supreme Court, the judges of which are appointed by theKing.  Each province is headed by a governor appointed bythe King.  Morocco has divided the former Spanish Saharainto four provinces  (see box).Principal Government OfficialsChief of State--King Hassan IIPrime Minister--Abdellatif FilaliMinister of State for Foreign Affairs and Cooperation--Abdellatif FilaliAmbassador to the United States--Mohamed BenaissaAmbassador to the United Nations--Ahmed SenoussiMorocco maintains an embassy in the United States at 160121st Street NW., Washington, D.C. 20009 (tel. [phone]).POLITICAL CONDITIONSThe pro-government RNI and UC parties won the largest numberof seats  in local elections in 1992.  In 1993,parliamentary elections gave 50% of the vote to the sixparties of the previous governing coalition but the twolargest opposition parties, the Istiqlal and USFP, which rancommon candidates, received the highest individual partyvote totals.  Together they took 41% of the seats contested(four smaller parties and independents won the remainder).These elections demonstrated a significant increase in theopposition's representation.  The expansion of parliament'sauthority under the September 1992 constitution was anotherindicator of Morocco's political liberalization.The most prominent political parties are:--  The Istiqlal (PI), Morocco's oldest political party, wasfounded in 1944 and helped lead the fight for independencefrom French and Spanish colonial domination.  The partyretains its strongly nationalistic philosophy and also isamong the most active on pan-Arab issues.--  The Union of Socialist Popular Forces (USFP),established in 1974, is to the left of the Istiqlal, and itsleaders present it as being in the tradition of the socialdemocratic parties in Europe.  It is strong in urbancenters, among organized labor, and among youth groups.--  The Berber-based Popular Movement (MP) and breakawayNational Popular Movement (MNP) have as their main issue thepromotion and protection of Berber culture and interests.--  The National Rally of Independents (RNI) was founded in1977 by then Prime Minister Ahmed Osman, who continues tolead the party.--  The Center Right Constitutional Union Party (UC), wasfounded in April 1983.  Its president is former PrimeMinister Maati Bouabid.--  The National Democratic Party (PND) was formed in 1981when it broke off from the RNI.  Led by former cabinetmember Arsalane El Jadidi, it is principally rural based.--  The Party of Progress and Socialism (PPS) is the latestlabel for the small Moroccan communist party.  Althoughtolerated, the party has been officially illegal at varioustimes since its founding in 1943, the latest from 1969 tolate 1974.  The party bases its main support in urban areasand among younger, disaffected elements of society, and isled by Secretary General Ali Yata.--  The Organization for Democratic and Popular Action(OADP), has traditionally adopted strongly leftist positionson most domestic issues.  However, like all the otherMoroccan parties, it strongly sup-ports Morocco's claim ofsovereignty over the Western Sahara.  Party SecretaryGeneral Mohammed Ben Said leads the formation.ECONOMYThe Moroccan economy is becoming increasingly diversified.Morocco has the largest phosphate reserves in the world.Other mineral resources include copper, fluorine, lead,barite, iron, and anthracite.  It has a diverse agricultural(including fishing) sector, a large tourist industry, agrowing manufacturing sector (especially clothing), andconsiderable inflows of funds from Moroccans working abroad. The export of phosphates and its derivatives account formore than a quarter of Moroccan exports.  Morocco isincreasing production of phosphoric acid and fertilizers.About one-third of the Moroccan manufacturing sector isrelated to phosphates and one-third to agriculture withvirtually all of the remaining third divided betweentextiles, clothing, and metalworking.  The clothing sector,in particular, has shown consistently strong growth over thelast few years as foreign companies established large-scaleoperations geared toward exporting garments to Europe.Agriculture plays a leading role in the Moroccan economy,generating between 15 and 20% of GDP (depending on theharvest) and employing about 40% of the work force.  Moroccois a net exporter of fruits and vegetables, and a netimporter of cereals; over 90% of agriculture is rain-fed.Fishing is also important to Morocco, employing more than100,000 people, including the canning and packingindustries, and accounting for $520 million of exports in1992.The Moroccan Government has pursued an economic reformprogram supported by the International Monetary Fund (IMF)and the World Bank since the early 1980s.  It has restrainedspending, revised the tax system, reformed the bankingsystem, followed appropriate monetary policies, liftedimport restrictions, lowered tariffs, and liberalized theforeign exchange regime.  Over the last decade, the reformshave contributed to rising per capita incomes, lowerinflation, and narrower fiscal and current account deficits.Nonetheless, population growth, rural-urban migration, andhigher labor force participation rates (particularly amongwomen) are contributing to rising urban unemployment, inspite of generally strong economic growth and job creation.The rapid increase in secondary and university (but notprimary) enrollments in the 1980s exceeded the economy'scapacity to create jobs, resulting in rising unemploymentrates for graduates, which are about 33% for high schoolgraduates and 11% for university graduates.As part of its IMF program, the Moroccan Government hasreduced its budget deficit.  The central bank operates as anindependent entity, and, following economic reform measures,has been remarkably successful in restoring domestic andinternational confidence in the value of the kingdom'scurrency.  The government has made the dirham convertiblefor an increasing number of transactions over the last fewyears.   The central bank sets the exchange rate for thedirham against a basket of currencies of its principaltrading partners.  The rate against the basket has beensteady since a 9% devaluation in May 1990, with changesagainst the dollar being due to movement of the dollaragainst major European currencies.The Moroccan Government actively encourages foreigninvestment.  It has opened virtually all sectors (other thanthose reserved for the state such as air transport andpublic utilities) to foreign investment.  The governmentalso has  made a number of regulatory changes designed toimprove the investment climate in recent years, includingtax breaks, streamlined approval procedures, and access toforeign exchange for the repatriation of dividends andinvested capital.FOREIGN RELATIONSSince Morocco attained independence, its foreign policy hasbeen sympathetic to the West.  Long-term goals are tostrengthen its influence in the Arab world and Africa and tomaintain its close relations with Europe and the UnitedStates.  It is a member of the UN and some of itsspecialized and related agencies, including theInternational Monetary Fund (IMF).  Morocco served a two-year term as a non-permanent member of the UN SecurityCouncil from January 1992 to December 1993.  It also belongsto the Arab League; Arab Maghreb Union (UMA); Organizationof the Islamic Conference (OIC); INTELSAT; and Non-AlignedMovement.The major issue in Morocco's foreign relations is its claimto the Western Sahara relinquished by Spain in 1976.  Thishas involved the country in a costly war against thePolisario forces seeking creation of an independent SaharanRepublic.  Since September 1991, Moroccan and Polisarioforces have observeda cease-fire, established under the UN Secretary General'splan to hold a referendum in the Western Sahara in order toresolve the dispute.  No date has been set for holding thereferendum because of differences between the two partiesover voter eligibility, although identification of potentialvoters by the UN has begun.  The U.S. Government fullysupports the efforts of the UN Secretary General  to workwith the parties to overcome these differences.In 1984, Morocco signed a Treaty of Union with Libya,primarily aimed at ensuring a cessation of Libyan supportfor the Polisario.  This disturbed some of Morocco'straditional friends, including the United States.  Moroccodescribed the union as a limited tactical alliance, and theKing terminated the agreement in mid-1986.Morocco adheres to  sanctions imposed by the UN SecurityCouncil on Libya in April 1992 in the wake of the Pan Am 103bombing.  Relations between Morocco and Algeria haveimproved in recent years, as reflected in the 1988resumption of diplomatic relations and in King Hassan's 1992ratification of the long-pending border agreement withAlgeria.Morocco continues to play a significant role in the searchfor peace in the Middle East, participating in themultilateral phase of the peace talks and urging Arabmoderation in the bilateral phase.  King Hassan is ActingChairman of the Arab League until the next regular ArabLeague Summit and Chairman of the Organization of theIslamic Conference's (OIC) Jerusalem committee.  In 1986, hetook the daring step of inviting then-Israeli Prime MinisterPeres for talks, becoming the second Arab leader to do so.Following the September 1993 signing of the Israeli-Palestinian Declaration of Principles, Morocco's economicties and political contacts with Israel accelerated.  InSeptember 1994, Morocco and Israel announced the opening ofliaison offices in each other's countries.Morocco has expanded its regional role.  In May 1989, theKing hosted the Casablanca summit which reintegrated Egyptinto the Arab fold and endorsed a moderate Palestinianapproach to the peace process.  In February 1989, Moroccoplayed a leading role in the formation of the Arab MaghrebUnion (UMA) made up of Algeria, Tunisia, Libya, Mauritania,and Morocco.  The UMA's formation owed much to the May 1988restoration of diplomatic relations between Morocco andAlgeria after a 13-year hiatus.Morocco has close relations with Saudi Arabia and thePersian Gulf states, which have provided Morocco withsubstantial amounts of financial assistance.  Morocco wasthe first Arab state to condemn Iraq's invasion of Kuwaitand sent troops to help defend Saudi Arabia.  Moroccofollowsthe UN Security Council-imposed sanctions on Iraq.  Moroccoremains active in African affairs, contributing troops tothe UN peace-keeping force in Somalia in 1992.  TheMoroccans have worked to promote reconciliation between theAngolan Government and UNITA.U.S.-MOROCCAN RELATIONSMoroccans are proud to have recognized the Government of theUnited States in 1777.  Formal U.S. relations with Moroccodate from 1787, when the two nations negotiated a Treaty ofPeace and Friendship.  Renegotiated in 1836, it is still inforce, constituting the longest unbroken treaty relationshipin U.S. history.U.S.-Moroccan relations are characterized by mutual respectand friendship.  They were strengthened by King Hassan'svisits to the United States in March 1963, February 1967,November 1978, and May and October 1982, and September 1991.The U.S. and Morocco share key foreign policy objectives,such as promoting regional peace and development.  Morocco'sstrategic location on the Strait of Gibraltar, its moderateand constructive positions on Middle East issues, itsreligious tolerance, and its past opposition to communistaggression are factors contributing to harmonious bilateralrelations.U.S. objectives include maintaining cordial and cooperativerelations; promoting respect for human rights and continued-democratization; supporting Moroccan efforts to develop anincreasingly effective administration; and aiding itsdomestic, social, and economic progress.In addition to U.S. Navy port visits, Morocco has grantedrights of transit through its airfields for U.S. forces andconducts joint exercises with various U.S. Armed Forces.The recently completed  $225-million Voice of America (VOA)transmitter in Morocco will be the world's largest VOAtransmitter.Since independence, more than $1.5 billion in U.S. grantsand loans has been provided to Morocco.  Total U.S. economicand military assistance (foreign military funds, economicsupport funds, development assistance, and PL 480 loans) toMorocco has averaged around $100 million annually.  Theassistance programs are aimed at increasing the food supply,improving food distribution, reducing population growth,improving health care, promoting the private sector, andassisting Morocco in meeting its legitimate defense needs.The Peace Corps has been active in Morocco for more than 30years, and its program is among the largest in the world,with 100-140 volunteers in 1994.  Peace Corps volunteers areinvolved in English language instruction, medical andveterinary care, sanitation, and  environmental education.Principal U.S. Embassy OfficialsAmbassador--Marc C. GinsbergDeputy Chief of Mission--Gary UsreyDirector, AID Mission--Michael FarbmanPublic Affairs Officer--Richard PetersonConsul General, Casablanca--Anne O. CaryThe U.S. embassy in Morocco  is located at 2 Avenue deMarrakech, Rabat (tel. [phone].[Box]Western SaharaThe Western Sahara, scene of a decade-long conflict betweenthe Polisario and Morocco, comprises 267,028 squarekilometers (102,703 sq. mi.)--an area about the size ofColorado--of wasteland and desert, bordered on the north byMorocco, on the west by the Atlantic Ocean, on the east andsouth by Mauritania, and for a few kilometers on the east byAlgeria.  From 1904 until 1975, Spain occupied the entireterritory, which is divided into a northern portion, theSaguia el Hamra, and the southern two-thirds, known as Riode Oro.  Calls for the decolonization of these territoriesbegan in the 1960s, first from the surrounding nations andthen from the United Nations.The discovery of phosphates in Bou Craa in the Saguia elHamra heightened demands for Spanish withdrawal from theterritory.  Morocco's occupation after Spain's 1975withdrawal led to long-term armed conflict between Moroccoand the Polisario, an independence movement based in theregion of Tindouf, Algeria.Morocco's claim to sovereignty over the Western Sahara isbased largely on the historical argument of traditionalloyalty of the Saharan tribal leaders to the Moroccan sultanas spiritual leader and ruler.  The International Court ofJustice, to which the issue was referred, delivered itsopinion in 1975 that while historical ties exist between theinhabitants of the Western Sahara and Morocco, they areinsufficient to establish Moroccan sovereignty.The Polisario claims to represent the aspirations of theWestern Saharan inhabitants for independence.  Algeriaclaims none of the territory for itself but maintains that apopular referendum on self-determination should determinethe territory's future status.  In 1969, the Polisario Front(Popular Front for the Liberation of the Saguia el Hamra andRio de Oro) was formed to combat Spanish colonization.After the Spanish left and the Moroccans and, initially, theMauritanians moved in, the Polisario turned its guerrillaoperations against them.In November 1975, 350,000 unarmed Moroccan citizens stagedwhat came to be called the "Green March" into the WesternSahara.  The march was designed to both demonstrate andstrengthen Moroccan claims to the territory.  On November 9,1975, King Hassan requested that the marchers withdraw.  OnNovember 14, Spain, Morocco, and Mauritania announced atripartite agreement for an interim administration underwhich Spain agreed to share administrative authority withMorocco and Mauritania, leaving aside the question ofsovereignty.  With the establishment of a Moroccan andMauritanian presence throughout the territory, however,Spain's role in the administration of the Western Saharaceased altogether.  Mauritania withdrew from the territoryin 1978 after several defeats by the Polisario.Mauritania signed a peace treaty with the Polisario inAlgiers in 1979 renouncing all claims and vacating theterritory.  Thereupon, Moroccan troops occupied the vacatedregion, and tribal leaders pledged allegiance to KingHassan.  Later, local elections and the election ofrepresentatives to the National Assembly took place andMorocco proclaimed the area reintegrated into Morocco.  Ithas since built fortifications that control about three-fourths of the Western Sahara and protect the economic andpopulation centers, including the phosphate mine at BouCraa.At the Organization of African Unity (OAU) summit in June1981, King Hassan announced his willingness to hold areferendum in the Western Sahara.  He took this decision, heexplained, in deference to African and other leaders who hadurged him to permit a referendum as the accepted way tosettle such issues.  Subsequent meetings of an OAUImplementation Committee proposed a cease-fire, a UN peace-keeping force, and an interim administration to assist withan OAU-UN-supervised referendum on the issue of independenceor annexation.Domestically, King Hassan's agreement in 1981 to hold areferendum evoked criticism from Morocco's socialist party(USFP), leading to the arrest and conviction at that time ofUSFP leaders for actions considered detrimental to nationalsecurity and public order.In 1984, the OAU seated a delegation of the SaharaDemocratic Arab Republic (SDAR), the shadow government ofthe Polisario; consequently, Morocco withdrew from the OAU.In late August 1988, Moroccan and Polisario representatives,meeting separately with UN officials, agreed on a peace planproposed by UN Secretary General Perez de Cuellar.  A UN-brokered cease-fire and project for a referendum went intoeffect on September 6, 1991, between Morocco and thePolisario.  The referendum, which aims at determiningwhether the region will choose integration with Morocco orindependence, was originally scheduled for 1992 but has  yetto be held because of differences between the two partiesregarding the details of implementation.The United States has consistently supported efforts to endthe war through negotiations between the concerned partiesleading to a cease-fire and referendum.  While recognizingMorocco's administrative control of the Western Sahara, theUnited States  has not endorsed Morocco's claims ofsovereignty there.  It is the U.S. position that a politicalsolution to the Western Sahara should take into account theviews of its inhabitants.  (###)Travel NotesClimate and clothing:  Morocco has wide daily variations intemperature.  The coastal climate, though temperate, isdamp.  Wear clothing suitable for the eastern U.S.Customs and currency:  Passports are required. U.S. touristsdo not need visas for visits of 3 months or less. Dirhamsmay not be imported or exported.  All currency or travelerschecks must be declared upon entry.Health:  Although not meeting U.S. standards, public healthis improving steadily.  Eat prepared fruits and vegetablesand drink bottled water, which is widely available, whentraveling outside the main cities.Telecommunications:  Local and international telephone andtelegraph service is available.  A working knowledge ofFrench or Arabic is essential.  Morocco is on Greenwich meantime (five standard time zones ahead of eastern standardtime); and remains on GMT throughout the year.Transportation:  Direct flights are available from New York.Adequate public transportation by air, rail, and bus isavailable to and from principal cities.  The highway systemis good, and directions are clearly marked.(###)Published by the United States Department of State -- Bureauof Public Affairs  -- Office of  Public Communication --Washington, DC -- 20520. Managing Editor:  Peter KnechtDepartment of State Publication 7954Background Notes Series --This material is in the publicdomain and may  be reprinted without permission; citation ofthis source is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.(###)</text>
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        <text>BACKGROUND NOTES:  MONGOLIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEOctober 1993Official Name:  MongoliaPROFILEGeographyArea:  1,566,500 sq. km. (604,103 sq. mi.); slightly larger than Alaska (land boundaries 8,114 km.).  Cities:  Capital--Ulaanbaatar (pop. 575,000).  Other cities--Darhan (90,000), Erdenet (58,000).  Terrain:  Almost 90% of land area is pasture or desert wasteland, of varying usefulness; 1% arable; 9% forested.  Climate:  Continental, with little precipitation and sharp seasonal fluctuations. PeopleNationality:  Noun and adjective--Mongolian(s).  Population (1992):  2.3 million.  Annual growth rate (1992):  2.6%.  Health:  Infant mortality rate (1992)--47/1,000.  Life expectancy (1992)--63-68 yrs.  Ethnic groups (1989):  85% Mongol (predominantly Khalkha), 7% Turkic (largest group, Kazakh) 4.6% Tungusic, and 3.4% others, including Chinese and Russian.  Languages:  Khalkha Mongol, more than 90%; minor languages include Kazakh, Chinese, and Russian.  Religions:  Tibetan Buddhist Lamaism 94%, Muslim 6% (primarily in the southwest), and Shamanism.  Education:  Years compulsory--8 (provided free by the government).  The traditional Mongolian script has been revived, and there are plans to officially replace Cyrillic by 1994.  Literacy--more than 90%. GovernmentType:  Parliamentary form of government, president second in authority to the State Great Hural.  Independence:  1921; democratic reform and shift from dependence on the former Soviet Union declared 1990.  Constitutions:  1960 and February 12, 1992.Branches:  Executive--power divided between a president (elected by a popular election in June 1993) and prime minister (cabinet nominated by the new prime minister was formed in Aug. 1992 by the State Great Hural which was elected in June 1992).  Legislative--State Great Hural (76 deputies).  Judicial--Constitutional Court is empowered to supervise the implementation of the Constitution, makes judgment on the violation of its provisions, and solves disputes.  Legal code under revision.  No provision for judicial review of legislative acts.  Legal education at Mongolian State Univ.  Recently, Mongolia began accepting ICJ jurisdiction.Political parties:  11 announced political parties (see box pg. 5).  Suffrage:  Universal at 18.Administrative subdivisions:  18 aimags (provinces) and 3 autonomous cities (Ulaanbaatar, Darhan, and Erdenet). Flag:  Three vertical bands--red, sky-blue, red; on the left red band the Mongolian national emblem, in yellow.EconomyGDP:  $2.2 billion (1992).  Per capita GDP: $998 (1992). Natural resources:  Coal, copper, molybdenum, iron, phosphates, tin, nickel, zinc, wolfram, fluorspar, gold, uranium, petroleum.Agriculture:  22% of 1992 GDP, livelihood for approximately 50% of population (1992).  Products--livestock, wheat, oats, barley, hay fodder, vegetables.Industry:  34% of 1992 GDP; minerals (primarily copper), animal-derived products, building materials, food/beverage, mining (esp. coal); industrial growth rate in 1991 fell 12%.  Trade:  Exports (1992, $400 million)--livestock, animal products, wool, hides, fluorspar, nonferrous metals, minerals.  Imports (1992, $368 million)--machinery and equipment, fuels, food products, industrial consumer goods, tea, chemicals, building equipment, sugar.  Partners (1992)--Russia and other NIS states, 55%; China, 14%; Japan, 7.6%; Germany, 4%; Switzerland, 3%; U.S., 0.7% ($13 million, 1991).  Aid received:  Donors promised $325 million in aid, loans, and assistance at 1992 Tokyo Donor's Conference (millions):  Japan, $68; U.S., $35; Republic of Korea, $15; Germany, $9; U.K., $5; European Community, $5. Official exchange rate (July 1993):  399 tugriks=U.S.$1. Fiscal year:  Calendar year.    (###)PEOPLELife in sparsely populated Mongolia has become more urbanized.  Nearly half of the people live in the capital, Ulaanbaatar, and in other provincial centers.  Nomadic life still predominates in the countryside, but settled agricultural communities are becoming more common. Mongolia's birth rate is estimated at 3.3%.  About three-fourths of the total population are under age 30, 45% of  whom are under 16.  Forty-nine percent of all children are pre-school age.  More than 50,000 families have five or more children.  Ethnic Mongols account for about 85% of the population and consist of Khalkha and other groups, all distinguished primarily by dialects of the Mongol language*.  Mongol is an Altaic language (from the Altaic Mountains of Central Asia--a language family comprising the Turkic, Tungusic, and Mongolic subfamilies) related to Turkic (Uzbek, Turkish, and Kazakh), Korean, and, possibly, Japanese.  The Khalkha make up 90% of the Mongol population.  The remaining 10% include Durbet Mongols and others in the north and Dariganga Mongols in the east.  Turkic speakers (Kazakhs, Turvins, and Khotans) constitute 7% of Mongolia's population, and the rest are Tungusic-speakers, Chinese, and Russians.  Many Russians left the country following Mongolia's declaration of independence.  _____________*Mongol is an Altaic language (from the Altaic Mountains of Central Asia--a language family comprising the Turkic, Tungusic, and Mongolic subfamilies) related to Turkic (Uzbek, Turkish, and Kazakh), Korean, and, possibly, Japanese.______________Traditionally, Tibetan Buddhist Lamaism was the predominant religion.  However, it was suppressed under the communist regime until 1990, with only one showcase monastery allowed to remain.  Since 1990, as liberalization began, Buddhism has enjoyed a resurgence.About 4 million Mongols live outside Mongolia; about 3.4 million live in China, mainly in the Inner Mongolia Autonomous Region; and some 500,000 live in Russia, primarily in Buryatia and Kalmykia.HISTORYIn 1203 AD, a single Mongolian state was formed based on nomadic tribal groupings under the leadership of Genghis Khan.  He and his immediate successors conquered nearly all of Asia and European Russia and sent armies as far as Central Europe and Southeast Asia.  Genghis Khan's grandson Kublai Khan, who conquered China and established the Yuan dynasty (1279-1368 AD), gained fame in Europe through the writings of Marco Polo.Although Mongol-led confederations sometimes exercised wide political power over their conquered territories, their strength declined rapidly after the Mongol dynasty in China was overthrown in 1368.The Manchus, a tribal group which conquered China in 1644 and formed the Qing dynasty, were able to bring Mongolia under Manchu control in 1691 as Outer Mongolia when the Khalkha Mongol nobles swore an oath of allegiance to the Manchu emperor.  The Mongol rulers of Outer Mongolia enjoyed considerable autonomy under the Manchus, and all Chinese claims to Outer Mongolia following the establishment of the republic have rested on this oath.  In 1727, Russia and Manchu China concluded the Treaty of Khiakta, delimiting the border between China and Mongolia that exists in large part today.Outer Mongolia was a Chinese province (1691-1911), an autonomous state under Russian protection (1912-19), and again a Chinese province (1919-21).  As Manchu authority in China waned, and as Russia and Japan confronted each other, Russia gave arms and diplomatic support to nationalists among the Mongol religious leaders and nobles.  The Mongols accepted Russian aid and proclaimed their independence of Chinese rule in 1911, shortly after a successful Chinese revolt against the Manchus.  By agreements signed in 1913 and 1915, the Russian Government forced the new Chinese Republican Government to accept Mongolian autonomy under continued Chinese control, presumably to discourage other foreign powers from approaching a newly independent Mongolian state that might seek support from as many foreign sources as possible.The Russian revolution and civil war afforded Chinese warlords an opportunity to re-establish their rule in Outer Mongolia, and Chinese troops were dispatched there in 1919.  Following Soviet military victories over White Russian forces in the early 1920s, Moscow again became the major outside influence on Mongolia.  The Mongolian People's Republic (M.P.R.) was proclaimed on November 25, 1924.Between 1925 and 1928, M.P.R.  power under the communist regime was consolidated.  The M.P.R. left gradually undermined rightist elements, seizing control of the party and the government.  Several factors characterized the country during this period--the society was basically nomadic and illiterate; there was no industrial proletariat; the aristocracy and the religious establishment shared the country's wealth; there was widespread popular obedience to traditional authorities; the party lacked grassroots support; and the government had little organization or experience. In an effort at swift socioeconomic reform, the leftist government applied extreme measures which attacked the two most dominant institutions in the country--the aristocracy and the religious establishment.  Between 1932 and 1945, their excess zeal, intolerance, and inexperience led to anti-communist uprisings. During World War II, because of a growing Japanese threat over the Mongolian-Manchurian border, the Soviet Union reversed the course of Mongolian socialism in favor of a new policy of economic gradualism and build-up of the national defense.  The Soviet-Mongolian army defeated Japanese forces that had invaded eastern Mongolia in the summer of 1939, and a truce was signed setting up a commission to define the Mongolian-Manchurian border in the autumn of that year.Following the war, the Soviet Union reasserted its influence in Mongolia.   Secure in its relations with Moscow, the Mongolian Government shifted to post-war development, focusing on civilian enterprise.  International ties were expanded, and Mongolia established relations with North Korea and the new communist governments in Eastern Europe.  It also increased its participation in communist-sponsored conferences and international organizations.  Mongolia became a member of the United Nations in 1961.In the early 1960s, Mongolia attempted to maintain a neutral position amidst increasingly contentious Sino-Soviet polemics; this orientation changed in the middle of the decade.  The M.P.R. and the Soviet Union signed an agreement in 1966, which introduced large-scale Soviet ground forces to part of Moscow's general build-up along the Sino-Soviet frontier.During the period of Sino-Soviet tensions, relations between Mongolia and China also deteriorated.  In 1983, the M.P.R. systematically began expelling some of the 7,000 ethnic Chinese in Mongolia to China.  Many of them had lived in the M.P.R. since the 1950s, when they were sent there to assist in construction projects.  Many factors may have motivated this shift:  a historical Mongolian antipathy for the Chinese; continued tensions on the Sino-Mongolian border (despite a 1964 demarcation); statements attributed to Beijing suggesting a continued interest among some Chinese for re-annexing Mongolia; Russia's historical counterbalancing of Chinese influence; and heavy Mongolian dependence on Soviet economic aid.Chronology of Mongolian History 1921-PresentMarch 13, 1921:  Provisional People's Government declares independence of Mongolia.May 31, 1924:  U.S.S.R. signs agreement with Peking government, referring to Outer Mongolia as an "integral part of the Republic of China," whose "sovereignty" therein the Soviet Union promises to respect.May-September 16, 1939:  Large-scale fighting takes place between Japanese and Soviet-Mongolian forces along Khalkhyn Gol on M.P.R.-Manchuria border, ending in defeat of the Japanese expeditionary force. Truce negotiated between U.S.S.R. and Japan.October 6, 1949:  Newly established People's Republic of China accepts recognition accorded M.P.R. and agrees to establish diplomatic relations.October 1961:  Mongolia becomes a member of the United Nations.January 27, 1987:  Diplomatic relations established with the United States.December 1989:  First popular reform demonstrations.  Mongolian Democratic Association organized.March 2, 1990:  Soviets and Mongolians announce that all Soviet troops will be withdrawn from Mongolia by 1992.May 1990:  Constitution amended to provide for multi-party system and new elections.July 29, 1990:  First democratic elections held.September 3, 1990:  First democratically elected People's Great Hural takes office.February 12, 1992:  New constitution goes into effect.April 8, 1992:  New election law passed.June 28, 1992:  Election for the first unicameral legislature (State Great Hural).June 6, 1993:  First direct presidential election.  GOVERNMENTUntil 1990, the Mongolian Government was modeled on the Soviet system.  Until May 1990, only the communist party--the Mongolian People's Revolutionary Party (MPRP)--officially was permitted to function.  After some instability during the first two decades of communist rule in Mongolia, there was no significant popular unrest until December 1989.  Collectivization of animal husbandry, introduction of agriculture, and the extension of fixed abodes were all carried out without perceptible popular opposition. The birth of perestroika in the former Soviet Union and the democracy movement in Eastern Europe were mirrored in Mongolia.  The first demonstrations were held in Ulaanbaatar in December 1989; the development of this democracy movement brought swift and peaceful changes in Mongolia.  The government adopted a positive approach toward reform.  The dramatic shift toward reform actually started in 1990.  At that time, the first organized opposition group, the Mongolian Democratic Union, appeared.  In the face of popular demands for faster reform, the leadership of the MPRP resigned in March 1990.  In May, the constitution was amended, deleting reference to the MPRP's role as the guiding force in the country, legalizing opposition parties, creating a standing legislative body (Baga Hural--small Hural), and establishing the office of president.  Mongolia's first multi-party elections were held on July 29, 1990.A People's Great Hural was elected on July 29, 1990.  The MPRP won 85% of the seats.  It first met on September 3 and elected a president (MPRP), vice president (SDP--Social Democrats--also chairman of the Baga Hural), prime minister (MPRP), and 50 members to the Baga Hural. In November 1991, the Great Hural began discussion of a new constitution,  which entered into force February 12.  In addition to establishing Mongolia as an independent, sovereign republic and guaranteeing a number of rights and freedoms, the new constitution restructured the legislative branch of government, creating a unicameral legislature, the State Great Hural (SGH).The constitution also provides that the president will be elected by popular vote rather than by the legislature as before.  In June 1993, incumbent Punsalmaagiyn Ochirbat won the first popular presidential election running as an opposition candidate.  As the supreme government organ, the SGH is empowered to enact and amend laws, determine domestic and foreign policy, ratify international agreements, and declare a state of emergency.  The SGH meets semi-annually.  SGH members elect a chairman and vice chairman who serve 4-year terms.  SGH members are popularly elected by district for 4-year terms.  The first SGH was elected on June 28, 1992.  The MPRP won about 57% of the popular vote, but won 70 of 76 seats in the SGH. The president is the head of state, commander in chief of the armed forces, and head of the national security council.  He is popularly elected by a national majority for a 4-year term and limited to two terms.  The constitution empowers the president to propose a prime minister, call for the government's dissolution, initiate legislation, veto all or parts of legislation (the SGH can override the veto with a two-thirds majority),  and issue decrees, which become effective with the prime minister's signature.  In the absence, incapacity, or resignation of the president, the SGH chairman exercises presidential power until inauguration of a newly elected president.The government, headed by the prime minister, has a 4-year term.  The prime minister is nominated by the president and confirmed by the SGH.  The prime minister chooses a cabinet, subject to SGH approval.  Dissolution of the government occurs upon the prime minister's resignation, simultaneous resignation of half the cabinet, or after an SGH vote for dissolution.Local hurals are elected by the 18 aimags (provinces) plus the capital, Ulaanbaatar, and cities of Darhan and Erdenet.  On the next lower administrative level they are elected by provincial subdivisions and urban subdistricts in Ulaanbaatar and the municipalities, Darhan and Erdenet.Political Parties--  Bourgeois Party (Bourgeois)--  Buddhist Democratic Party--  Green Party (Greens)--  Mongolian National Democratic Party (MNDP)--  Mongolian Independence Party (Independence)--  Mongolian People's Party (MPP)--  Mongolian People's Revolutionary Party (MPRP)--  Mongolian Worker's Party (MWP)--  Social Democratic Party (SDP)--  United Party of Farmers and Herdsmen (Herdsmen)--  United Party of Private Property Owners (PPOP)Principal Government Officials President--Punsalmaagiyn Ochirbat Prime Minister--Puntsagiyn Jasray Minister of External Relations--Tserenpiliyn GombosurenLegal SystemThe new constitution empowered a General Council of Courts (GCC) to select all judges and protect their rights.  The Supreme Court is the highest judicial body.  Justices are nominated by the GCC and confirmed by the SGH and president.  The court is constitutionally empowered to examine all lower court decisions, excluding specialized court rulings, upon appeal and provide official interpretations on all laws except the constitution.Specialized civil, criminal, and administrative courts exist at all levels and are not subject to Supreme Court supervision.  Local authorities--district and city governors--ensure that these courts abide by presidential decrees and SGH decisions.  At the apex of the judicial system is the Constitutional Court, which consists of nine members--including a chairman--appointed for 6-year terms, whose jurisdiction extends solely over the interpretation of the constitution.ECONOMYThe rapid political changes of 1990-91 marked the beginning of Mongolia's efforts to develop a market economy, but these efforts have been complicated and disrupted by the dissolution and continuing deterioration of the economy of the former Soviet Union.  Prior to 1991, 80% of Mongolia's trade was with the former Soviet Union and 15% was with other Council for Mutual Economic Assistance (CMEA) countries.  Mongolia was heavily dependent upon the former Soviet Union for fuel, medicine, and spare parts for its factories and power plants. The former U.S.S.R. also served as the primary market for Mongolian industry.  In the 1980s, Mongolia's industrial sector became increasingly important.  By 1989, it accounted for an estimated 34% of material products compared to 18% from agriculture.  However, minerals, animals, and animal-derived products still constitute a large proportion of the country's exports.  Principal imports included machinery, petroleum, cloth, and building materials.In the late 1980s, the government began to improve links with non-communist Asia and the West, and a tourism sector developed.  As of January 1, 1991, Mongolia and the former Soviet Union agreed to conduct bilateral trade in hard currency at world prices.Despite its external trade difficulties, Mongolia has continued to press ahead with reform.  Privatization of small shops and enterprises is largely complete, and most prices have been freed.  Privatization of large state enterprises has begun.  Tax reforms also have begun, and the barter and official exchange rates were unified in early 1992. Prospects for development away from reliance on nomadic, livestock-based agriculture are constrained by Mongolia's land-locked location and lack of basic infrastructure.  Mongolia's best hope for accelerated growth is to attract more foreign investment by further liberalizing the economy and expanding trade with non-traditional partners.  A new foreign investment law designed to provide increased incentive to investors was enacted in mid-1993.Foreign aid has been necessary, and, in the past, the former Soviet Union was the principal source of aid and credit.  Mongolia's estimated debt to the former Soviet Union in 1992 was more than $10 billion in transferable rubles.  Considerable technical assistance also came from the former Soviet Union and East European countries.  Mongolia is seeking foreign assistance and investment from the West and international financial institutions to replace former Soviet bloc aid and to promote development of a market economy.EnvironmentAs a result of rapid urbanization and industrial growth policies under the communist regime, Mongolia's deteriorating environment has become a major concern.  The burning of soft coal coupled with thousands of factories in Ulaanbaatar has resulted in severely polluted air.  Deforestation, overgrazed pastures, and efforts to increase grain and hay production by plowing up more virgin land has increased soil erosion from wind and rain.  The government responded by founding the Ministry of Environmental Protection in 1987 and by increasing publicity on environmental issues.FOREIGN RELATIONSIn the wake of the collapse of the international socialist economic system and the disintegration of the former Soviet Union, Mongolians began to pursue an independent and non-aligned foreign policy.  The prime minister called for co-existence with all nations.  Due to Mongolia's landlocked position between the newly independent republics and China, it was essential to continue and improve relations with these countries. ChinaMongolian relations with China began to improve in the mid-1980s when consular agreements were reached and cross-border trade contacts expanded.  In 1989, China and Mongolia exchanged visits of foreign ministers.  In May 1990, a Mongolian head of state visited China for the first time in 28 years.  In 1991, the Chinese President and Executive Vice Chairman of the Central Military Commission, Yang Shangkun, visited Mongolia, marking the first visit by a Chinese head of state.  Several agreements were signed during the visit.  Yang praised the establishment of direct ties between a number of Mongolian ministries, organizations, local areas and private firms, and their Chinese counterparts.  The Mongolian premier visited Beijing in May 1992.  That month, the Chinese and Mongolians signed an agreement establishing new border-crossing points.Russia After the disintegration of the former Soviet Union,  Mongolia developed relations with the new independent states (NIS).  Links with Russia and other republics were essential to contribute to stabilization of the Mongolian economy.  The primary difficulties in developing fruitful coordination occurred because the NIS were experiencing the same political and economic restructuring as Mongolia.  Despite these difficulties, Mongolia and Russia successfully negotiated both a 1991 Joint Declaration of Cooperation and a bilateral trade agreement.  The Prime Minister's visit of March 1992 resulted in an Inter-governmental Commission on Trade and Cooperation, allowing faster transport of goods and exempting Mongolian exports from Russian customs duties.  Soviet troop withdrawals from Mongolia began in 1987 and were completed in September 1992.  In April 1992, the Russian Ambassador presented his credentials to the Mongolian Prime Minister.  President Ochirbat's January 1993 trip to Moscow resulted in a new treaty on friendly relations.AsiaMongolia aims to establish a more balanced non-aligned foreign policy.  It is expanding relations with Japan and South Korea.  Mongolia's Prime Minister visited Japan in March 1990.  Mongolia's President attended Emperor Akihito's coronation, and Japan's Prime Minister visited Mongolia in August 1991.  The Mongols expressed great appreciation for the $67 million in grants and loans that Japan provided as well as Japan's coordination of international assistance to Mongolia.Diplomatic relations were established with South Korea in 1991, and during the Mongolian President's visit, seven agreements and treaties were signed, providing the legal basis for further expanding bilateral relations.  In April 1992, a Mongolian delegation attended its first forum of Parliament leaders of countries of Asia and the Pacific in Hawaii.EuropeDuring 1991, Mongolia signed investment promotion and protection agreements with Germany and France, and an economic cooperation agreement with the United Kingdom.  Germany continued former East German cooperative programs  and also provided loans and aid.  Mongolia seeks closer relations with other countries in Europe and hopes to receive most-favored-nation status from the European Community (EC).  The prime minister traveled to Germany, France, Belgium, and EC headquarters in Brussels seeking economic cooperation.Mongolians, in pursuing a general policy of expanding relations with as many countries as possible, have made official visits (high-level officials and/or parliamentarians) to other countries, including Australia, Nepal, the Philippines, and Pakistan, and have established diplomatic relations with a number of nations, even those as far flung as Oman and Brunei, among others.  Israel accredited an ambassador to Mongolia from Tokyo.U.S.-MONGOLIAN RELATIONSThe U.S. Government recognized Mongolia in January 1987, and established its first embassy in Ulaanbaatar in June 1988.  It formally opened in September 1988.  The first U.S. Ambassador to Mongolia, Richard L. Williams, was not resident there; Joseph E. Lake, the first resident Ambassador, arrived in July 1990, and will be succeeded by Donald Johnson.  Secretary of State James A. Baker, III visited Mongolia in August 1990, and again in July 1991.  Mongolia accredited its first Ambassador to the United States in March 1989.  Prime Minister Jasray visited the United States and met with Secretary Christopher in June 1993.The United States has sought to assist Mongolia's movement toward democracy and market-oriented reform and to expand relations with Mongolia primarily in the cultural and economic fields.  The United States granted Mongolia most-favored-nation status, and supported Mongolia's transition to political democracy and a market economy.  In 1989 and 1990, a cultural accord, Peace Corps accord, consular convention, and Overseas Private Investment Corporation (OPIC) agreement were signed.  A trade agreement also has been signed.In 1991, the U.S. Agency for International Development initiated a program of technical assistance and training in Mongolia.  The United States also provided about 25,000 tons of wheat and flour in 1992 to help alleviate a severe food shortage.  For FY 1993, the United States has provided Mongolia with $10.3 million in infrastructure and developmental assistance and $17 million in food and commodity assistance, including 25,000 metric tons of wheat.With strong support from the United States, Mongolia joined the International Monetary Fund, the World Bank, and the Asian Development Bank in early 1991.  All three institutions are providing technical, financial, and project aid.  The United States worked closely with Japan and the international organizations to organize four donor group meetings during 1991-93, which succeeded in raising and coordinating substantial financial and development assistance for Mongolia.  (###)Department of State Publication 7955Contents of this publication are not copyrighted unless indicated.  If not copyrighted, the material may be reproduced without consent; citation of the publication as the source is appreciated.  Permission to reproduce any copyrighted material (including photos and graphics) must be obtained from the original source.  (###)</text>
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        <text>U.S. Department of StateBackground Notes:  Mexico, November 1995Bureau of Public AffairsNovember 1995Official Name:  United Mexican StatesPROFILEGeographyArea:  1,972,500 sq. km. (761,600 sq. mi.); about three times the size of Texas.Cities:  Capital--Mexico City (15 mil-lion, 1990 census).  Other cities--Guadalajara, Monterrey, Puebla, Leon.Terrain:  Coastal lowlands, central high plateaus, and mountains up to 5,400 m. (18,000 ft.).Climate:  Tropical to desert.PeopleNationality:  Noun and adjective--Mexican(s).Population (1994):  90 million.Annual growth rate:  1.8%.Ethnic groups:  Indian-Spanish (mestizo) 60%, Indian 30%, Caucasian 9%, other 1%.Religions:  Roman Catholic 89%, Protestant 6%, other 5%.Language:  Spanish.Education:  Years compulsory--12.  Literacy--91%.Health (1994):  Infant mortality rate--33/1,000.  Life expectancy--male 69 yrs., female 75 yrs.Labor force (33 million):  Services--29%.  Agriculture, forestry, hunting, fishing--27%.  Manufacturing--16%.  Construction--6%.  Merchandising--5%.  Mining and quarrying--5%.  Transportation and communication--4%.  Other--8%.GovernmentType:  Federal republic.Independence:  First proclaimed September 16, 1810; republic established 1824.Constitution:  February 5, 1917.Branches:  Executive--president (chief of state and head of government).  Legislative--bicameral.  Judicial--Supreme Court, local and federal systems.Political parties:  Institutional Revolutionary Party, National Action Party, Party of the Democratic Revolution, Labor Party.Suffrage:  Universal at 18.Administrative subdivisions:  31 states and a Federal District.EconomyGDP (1994):  $380 billion.Per capita GDP:  $4,300.Avg. annual real GDP growth(1989-94):  3%.Inflation rate (1994):  7%.Natural resources:  Petroleum, silver, copper, gold, lead, zinc, natural gas, timber.Agriculture:  Products--corn, beans, oilseeds, feedgrains, fruit, cotton, coffee, sugarcane, winter vegetables.Industry:  Types--manufacturing, services, commerce, transportation and communications, petroleum and mining.Trade (1994):  Exports--$61 billion:  manufacturing 83%, petroleum and derivatives 12%, agriculture 4%, other 1%.  Imports--$79 billion:  intermediate goods 71%, capital goods 17%, consumer goods 12%.  Major trading partners--U.S., EU, Japan.  U.S. imports--$55 billion.U.S.-MEXICAN RELATIONSRelations between the U.S. and Mexico are among the most important and complex that each nation maintains, as was demonstrated during the state visit by Mexican President Ernesto Zedillo to Washington, DC, on October 9-11, 1995.  U.S.-Mexico relations are shaped by a mixture of mutual interests, shared problems, and growing interdependence.In its efforts to revitalize its economy and open up to international competition, Mexico has sought closer relations with the U.S., Western Europe, and the Pacific Basin; it seeks to diversify its diplomatic and economic relations through such multilateral groups as the UN, the Organization of American States, and the Asia-Pacific Economic Cooperation forum.  While the United States and Mexico are often in agreement on foreign policy issues, some differences remain--in particular, relations with Cuba.  The U.S. and Mexico agree on the ultimate goal of establishing a democratic, free-market regime in Cuba but disagree on tactics to reach that goal.The scope of U.S.-Mexican relations goes far beyond diplomatic and official contacts; it entails extensive commercial, cultural, and educational ties.  Along the 2,000-mile shared border, state and local governments interact closely.  The two countries cooperate to resolve many issues, ranging from combating cross-border criminality to cleaning and protecting the shared environment.  Environmental issues are addressed through bodies such as the International Boundary and Water Commission as well as other environmental institutions whose creation was spurred by the North American Free Trade Agreement.A stable and economically prosperous Mexico is fundamental to U.S. interests.  Both governments actively discuss ways to improve cooperation on an array of bilateral issues.  Since 1981, this process has been formalized in the U.S.-Mexico Binational Commission, composed of 13 U.S. cabinet members and their Mexican counterparts.  The Commission holds annual plenary meetings, and many subgroups meet during the course of the year to discuss an array of topics, including trade and investment opportunities, financial cooperation, counternarcotics, migration, law enforcement, cultural relations, education, border cooperation, environment, labor, agriculture, housing and urban development, transportation, fisheries, tourism, and science and technology.Trade and InvestmentMexico's economic growth is vital to its political prospects and has a direct impact on the U.S. economy.  Mexico has liberalized its trade and investment laws and diversified its trade and economic relations.Mexico is the United States' third-ranked trading partner, purchasing about two-thirds of its imports from the United States and sending about two-thirds of its exports to the U.S.  Chief U.S. exports to Mexico are motor vehicle parts, office equipment, and agricultural products; top imports from Mexico include petroleum, cars, piston engines, and coffee.  The U.S. is the source of two-thirds of direct foreign investment in Mexico.  Both U.S. exports and investment have increased as Mexico has progressively opened its economy.In 1992, Mexico signed the North American Free Trade Agreement (NAFTA) with the United States and Canada.  NAFTA, which entered into force on January 1, 1994, increased trade and further integrated the three North American economies.  The first year of NAFTA, U.S.-Mexico trade totaled more than $100 billion, an increase of 23%, which was well above the 13% growth registered in 1993.   U.S. exports to Mexico grew more than twice as fast as U.S. exports to the rest of the world.   The U.S. enjoyed a trade surplus with Mexico of $1.3 billion in 1994.NAFTA eliminates restrictions on the flow of goods, services, and investment in North America.  This includes phasing out tariffs over a period of up to 15 years; elimination, as far as possible, of non-tariff barriers; and full protection of intellectual property rights--patents, copyrights, and trademarks.  The pact includes provisions covering trade rules and dispute settlement, and its parallel labor agreement reflects concerns about protecting worker's rights.NAFTA marks the first time in the history of U.S. trade policy that environmental concerns--including environmental pollution--have been addressed in a comprehensive trade agreement.  The pact also serves as a basis for enhancing ongoing U.S.-Mexico cooperation on a host of other issues that do not respect national borders.  As the two countries stand on the threshold of the 21st century, cooperation on issues such as migration and narcotics control is of critical importance.International efforts to respond to the Mexican economic crisis of 1994 were led by the U.S. Government and the International Monetary Fund, both of which worked to devise a package of short-term and medium-term loans and loan guarantees which initially reached more than $50 billion.  The peso devaluation and the severe contraction of demand brought about by the crisis will change the U.S. bilateral trade surplus into a deficit in 1995.  But Mexico will continue to get most of its imports from the United States.  Demand for U.S. goods is expected to recover when growth is restored to the Mexican economy.Mexico made sweeping revisions of its foreign investment regulations in 1989, which included explicit permission for foreigners to have majority ownership in companies.  In December 1993, Mexico passed a new foreign investment law intended to promote competitiveness, offer juridical certainty for foreign investment in Mexico, and establish clear rules for channeling international capital into productive activities.The 1993 law permits foreigners to own non-residential property in the "restricted zones"--100 kilometers (62 miles) from the border and 50 kilometers from the coasts.  Residential property in the zones must still be acquired via a trust through a Mexican financial institution.  Key sectors of the economy, including energy, basic petrochemicals, and power generation, currently are restricted to Mexican state ownership.However, new business opportunities are expected to open up in Mexico's energy sector for foreign energy firms.  The state-owned monopolies which dominate the Mexican energy sector--PEMEX and CFE, the Federal Electricity Commission--are undergoing far-reaching restructuring and are allowing greater though still-limited participation by the domestic and foreign private sector.  Significant opportunities for private investment have been opened in electricity production, though transmission and distribution remain state monopolies.Under NAFTA, PEMEX will retain its constitutional monopoly over petroleum exploration, production, refining, and basic petrochemicals, but the treaty will expand U.S. firms' access to Mexico's petrochemical, gas, and energy services and equipment markets.  Mexico has announced it will sell 63 secondary petrochemical plants and has announced plans to allow foreign construction and operation of natural gas pipelines and distribution networks on 10- to 20-year concessions.  NAFTA provides significant opportunities to sell to PEMEX under open and competitive bidding rules; it also immediately lifts trade and investment restrictions on most petrochemicals.Mexico has taken significant steps to modernize its telecommunications system.  A key element was the privatization in 1990 of the national telephone company, Telefonos de Mexico (TELMEX), which was sold to a consortium of Mexican investors, Southwestern Bell, and France Telcom.  The government has opened the telecommunications sector to greater foreign investment.  Starting in 1997, long-distance telecommunications service will be a competitive industry in Mexico.Principal U.S. Embassy OfficialsAmbassador--James R. JonesDeputy Chief of Mission--Charles H. BrayshawMinister-Counselor for Political Affairs--Barbro A. Owens-KirkpatrickMinister-Counselor for Economic Affairs--Daniel L. DolanMinister-Counselor for Consular Affairs--Bruce BeardsleyCounselor for Commercial Affairs--Kevin C. BrennanThe U.S. embassy in Mexico is located at Paseo de la Reforma 305, 06500 Mexico, DF; tel. [phone].GOVERNMENTThe 1917 constitution provides for a federal republic with powers separated into independent executive, legislative, and judicial branches.  The executive is the dominant branch, with power vested in the president, who promulgates and executes the laws of the Congress.  The president also legislates by executive decree in certain economic and financial fields, using powers delegated from the Congress.  The president is elected by universal adult suffrage for a six-year term and may not hold office a second time.  There is no vice president; in the event of the removal or death of the president, a provisional president is elected by the Congress.The Congress is empowered to legislate on all matters pertaining to the national government.  Congress is composed of a 128-seat Senate and a 500-seat Chamber of Deputies.  Consecutive re-election to the Congress is prohibited; senators, four from each state and the Federal District (i.e., Mexico City), are elected to six-year terms.  Deputies serve three-year terms; 300 are elected from single-member districts, and 200 are selected on an at-large basis.The judiciary is divided into federal and state court systems, with federal courts having jurisdiction over most civil cases and those involving major felonies.  Under the constitution, trial and sentencing must be completed within 12 months of arrest for crimes that would carry at least a two-year sentence.  Trial is by judge, not jury, in nearly all criminal cases.  Defendants have a right to counsel, and public defenders are available.  Other rights include defense against self-incrimination, the right to confront one's accusers, and the right to a public trial.  Supreme Court justices are appointed by the President and approved by the Senate.Mexico's armed forces in 1994 numbered about 175,000.  The army makes up about three-fourths of the total.  One year of limited training is required of all males reaching age 18.  A paramilitary force of communal landholders is maintained in the countryside.  Principal military roles include national defense, narcotics control, and civic action assignments such as road-building and disaster relief.  Military expenditures constituted about 0.3% of GDP in 1993.Principal Government OfficialsPresident--Ernesto ZEDILLO Ponce de LeonForeign Minister--Jose Angel GURRIA TrevinoAmbassador to the U.S.--Jesus SILVA-HERZOG FloresAmbassador to the United Nations--Manuel TELLO MaciasAmbassador to the OAS--Carmen MORENO de del CuetoMexico maintains an embassy in the United States at 1911 Pennsylvania Ave. NW, Washington, DC 20006 (tel. [phone]).POLITICAL CONDITIONSErnesto Zedillo Ponce de Leon was sworn in on December 1, 1994, as the President of Mexico following generally peaceful August elections.  A trained economist with degrees from Yale, Zedillo served as Secretary of Programming and Budget and Secretary of Education in the Salinas administration prior to being elected.In his first year in office, President Zedillo has outlined an ambitious plan for continuing the process underway of opening Mexico's political system, reforming the justice system, curtailing corruption, strengthening the fight against narcotics trafficking, and furthering Mexico's market-oriented economic policies.  Although an unexpected Mexican financial crisis has occupied much of the Zedillo administration's attention thus far, significant progress has been achieved in several areas.The Mexican political scene was convulsed by unexpected and traumatic events in 1994, including a January 1994 peasant uprising in the state of Chiapas and the assassinations of two politicians.  Peace talks are progressing, and investigations continue into the politicians' deaths.Mexico's August 1994 elections introduced a number of innovations to the Mexican electoral process, many resulting from electoral reforms implemented between 1989 and 1994.  For the first time in Mexican history, civic organizations fielded more than 80,000 trained and accredited electoral observers throughout the country, foreigners--many from the United States--were invited to witness the process, and numerous independent "quick count" operations and exit polls validated the official vote tabulation.  Despite isolated incidents of irregularities and problems, there was no evidence of systematic attempts to manipulate the elections or their results, and critics concluded that the irregularities which did occur did not alter the outcome of the presidential vote.Over the years, the Institutional Revolutionary Party (PRI) has relied on extensive patronage and massive government and party organizational resources to continue in power.  In some cases, the party has been accused of fraud.  But despite PRI dominance, opposition parties have made significant gains in elections at all levels.  Thus far in 1995, the opposition National Action Party (PAN) has won three gubernatorial and has increased its presence in various state legislatures and municipal governments.In his inaugural address, President Zedillo recognized the need for additional electoral reforms and called for congressional action on campaign and party financing, media access, and greater autonomy of electoral institutions.  He repeated his campaign pledge to separate his government from the ruling PRI party and to remove himself from PRI party decision-making, including the selection of future candidates.To oversee a profound reorganization of the Mexican justice system, President Zedillo appointed a respected member of the opposition PAN party to serve as attorney general.  This was the first time an opposition member has held a cabinet post in Mexico.  As the first steps in reforming the justice system in Mexico, constitutional amendments were adopted in December 1994 to improve the performance and accountability of the Supreme Court and the Office of the Attorney General and the administration of federal courts.  Under the new provisions, Supreme Court and attorney general nominees are to be confirmed by the Senate and, in the case of the Supreme Court, serve for a fixed period.  The Supreme Court, relieved of administrative duties for lower courts, was given responsibilities for judicial review of certain categories of law and legislation.Although the constitution provides for three branches of government, traditionally the Mexican presidency occupies a position of overwhelming dominance.  The Zedillo administration has sought to develop a greater role for the Mexican Congress, most notably by inviting the participation of a multi-party legislative commission in the Chiapas peace negotiations and seeking congressional approval of the financial assistance package signed by the U.S. and Mexico in February 1995.Following a series of consultations between the executive branch and the leadership of Mexico's major political parties, including a first-time meeting between a sitting president and the opposition Party of the Democratic Revolution (PRD) leadership, the government and parties on January 17, 1995, signed a pact for cooperation on political reform.  In April 1995, the parties and government established "permanent" working groups to discuss and analyze further reform and the Mexican economic situation.TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, tel.  [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.==============================Background Notes Series --  Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DCThis material is in the public domain and may be reproduced without permission; citation of this source is appreciated.(###)</text>
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        <text>BACKGROUND NOTES:  MAURITIUSPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATENOVEMBER 1992OFFICIAL NAME:  MAURITIUSPROFILEGeographyArea:  1,865 sq. km. (720 sq. mi.), about the size of RhodeIsland; east of Madagascar in the Indian Ocean.Dependencies:  Rodrigues Island and the Agalega Islands andCargados Carajos Shoals; Mauritius also claims sovereignty overthe Chagos Archipelago, part of the British Indian OceanTerritory, where the US naval base of Diego Garcia is located.Cities (1990):Capital--Port Louis (pop. 132,460).  Other cities--Beau Bassinand Rose Hill (91,518), Curepipe (65,414), Vacoas-Phoenix(56,452), Quatre Bornes (65,207).Terrain:  Volcanic island surrounded by coral reefs.  A centralplateau is rimmed by mountains.Climate:  Tropical; cyclone season mid-December-April.PeopleNationality:  Noun and adjective--Mauritian(s).Population (1991 est):  1 million.Population density:  1,313/sq. mi.Avg. annual growth rate (1991):  1%.Ethnic groups:  Indo-Mauritians 68%, Creoles 27%, Sino-Mauritians3%, Franco-Mauritians 2%.Religions:  Hindu, Roman Catholic, Muslim.  Languages:  Creole(common), French, English (official), Hindi, Urdu, Hakka,Bhojpuri.Education:  Years compulsory--6 (primary school).  Attendance(primary school)--virtually universal.  Literacy--adultpopulation 80%; school population 90%.Health (1991):  Infant mortality rate--20/1,000.  Lifeexpectancy--male 66 yrs; female 74 yrs.Work force (March 1991):  407,618.Manufacturing--32%.  Agriculture and fishing--17%.  Governmentservices--14%.  Other--37%.GovernmentType:  Republic.Independence:  March 12, 1968 (became a republic in 1992).Constitution:  March 12, 1968.Branches:  Executive--president (chief of state), prime minister(head of government), Council of Ministers.  Legislative--unicameral National Assembly.  Judicial--Supreme Court.Administrative subdivisions:  10.Major political parties:  Militant Socialist Movement (MSM),Mauritian Militant Movement (MMM), Mauritian Labor Party (MLP),and Mauritian Social Democratic Party (PMSD).Suffrage:  Universal over 18.Defense (1991):  1.5% of GDP.Flag:  Four horizontal stripes--red, blue, yellow, green.EconomyGDP (1991):  $2.4 billion.Real growth rate (1991):  5%.Per capita income (1991):  $2,276.Avg. inflation rate (1991):  7%.Natural resources:  None.Manufacturing (including export processing zone):  24% of GDP.Types--labor-intensive goods for export, including textiles andclothing, pearls, cut and polished diamonds, semi-preciousstones, optical goods, cut flowers, leather products, electronicgoods, watches, toys, and other consumer goods.Agriculture:  11% of GDP.  Products--sugar, sugar derivatives,tea, tobacco, vegetables, fruits, and flowers.Tourism sector:  11% of GDP.  Main countries of origin--France(including the nearby French island Reunion), South Africa, andWest European countries.Trade (1991):  Exports--$1.3 billion:  sugar, textiles andclothing, tea, molasses, jewelry, leather products, canned tuna,and anthuriums.  Major markets--EC and US.Imports--$1.6 billion:  foodstuffs, refined petroleum products,machinery and transport equipment, construction materials,manufactured goods, and textile raw materials.  Majorsuppliers--EC, South Africa, Kuwait, Japan, China, Bahrain, HongKong, Australia, India, Taiwan, New Zealand, Southeast Asiancountries, and US.Fiscal year:  July 1-June 30.Avg. exchange rate (1991): 15 rupees=US$1.PEOPLE AND HISTORYWhile Arab and Malay sailors knew of Mauritius as early as the10th century AD and Portuguese sailors first visited in the 16thcentury, the island was not colonized until 1638 by the Dutch.Mauritius was populated over the next few centuries by waves oftraders, planters and their slaves, indentured laborers,merchants, and artisans.The island was named in honor of Prince Maurice of Nassau by theDutch, who abandoned their colony in 1710.  The French claimedMauritius in 1715 and renamed it Ile de France.  It became aprosperous colony under the French East India Company.  TheFrench Government took control in 1767, and the island served asa naval and privateer base during the Napoleonic wars.  In 1810,Mauritius was captured by the British, whose possession of theisland was confirmed 4 years later by the Treaty of Paris.French institutions, including the Napoleonic code of law, weremaintained; French still is used more widely than English.Mauritius' Creoles trace their origins to the plantation ownersand slaves who were brought to work the sugar fields.Indo-Mauritians are descended from Indian immigrants who arrivedin the 19th century to work as indentured laborers after slaverywas abolished in 1835.  Included in the Indo-Mauritian communityare Muslims (about 15% of the population) from what is nowPakistan.  The Franco-Mauritian elite controls nearly all of thelarge sugar estates and is active in business and banking.  Asthe Indian population became numerically dominant and the votingfranchise was extended, political power shifted from theFranco-Mauritians and their Creole allies to the Hindus.Elections in 1947 for the newly created Legislative Assemblymarked Mauritius' first steps toward self-rule.  An independencecampaign gained momentum after 1961, when the British agreed topermit additional self-government and eventual independence.  Acoalition composed of the Mauritian Labor Party (MLP), the MuslimCommittee of Action (CAM), and the Independent Forward Bloc(IFB)--a traditionalist Hindu party--won a majority in the 1967Legislative Assembly election, despite opposition fromFranco-Mauritian and Creole supporters of Gaetan Duval'sMauritian Social Democratic Party (PMSD).  The contest wasinterpreted locally as a referendum on independence.  SirSeewoosagur Ramgoolam, MLP leader and chief minister in thecolonial government, became the first prime minister atindependence, on March 12, 1968.  This event was preceded by aperiod of communal strife, brought under control with assistancefrom British troops.GOVERNMENT AND POLITICAL CONDITIONSMauritian politics are turbulent and characterized by coalitionand alliance building.  Alone or in coalitions, the MLP ruledfrom 1947 until June 1982.  The Mauritian MilitantMovement/Mauritian Socialist Party (MMM/PSM) alliance won the1982 election.  In 1983, defectors from the MMM joined with thePSM to form the Militant Socialist Movement (MSM) and won aworking majority.  In July 1990, the MSM realigned with the MMMand in September 1991 national elections won 59 of the 62directly elected seats inparliament.As promised in its electoral program, the MSM/MMM allianceamend-ed the constitution, making Mauritius a republic within theCommonwealth.  Since March 12, 1992, the chief of state has beena Mauritian-born president, replacing Queen Elizabeth II.  Underthe amended constitution, political power still derives from theparliament.  The Council of Ministers (cabinet), responsible forthe direction and control of the government, consists of theprime minister (head of government), the leader of the majorityparty in the legislature, and 24 other ministers.The unicameral National Assembly has up to 70 deputies.Sixty-two are elected by universal suffrage, and as many as eight"best losers" are chosen from the runners-up by the ElectoralSupervisory Commission by a formula designed to give at leastminimal representation to all ethnic communities andunder-represented parties.  Elections are scheduled at leastevery 5 years.Mauritian law is an amalgam of French and British legaltraditions.   The Supreme Court--a chief justice and five otherjudges--is the highest judicial authority.  There is anadditional right of appeal to the Queen's Privy Council.  Localgovernment has nine administrative divisions, with municipal andtown councils in urban areas and district and village councils inrural areas.Principal Government OfficialsPresident--Cassam UteemVice President--Sir Rabindrah GhurburrunPrime Minister--Sir Anerood JugnauthAmbassador to the United States--Chitmansing JesseramsingAmbassador to the United Nations--Satteanand PeerthumMauritius maintains an embassy at 4301 Connecticut Avenue NW,Washington, DC  20008 (tel. [phone]).ECONOMYThe Mauritian economy is based on export-oriented manufacturing,sugar, and tourism.  Structurally, it has a strong private sectorand state-owned enterprises.  The economy grew at an average rateof 6% over the last decade, reaching full employment in the late1980s.  Growth started to decline in 1988, as the economy startedto experience some of the problems associated with success.Skilled labor shortages now are evident in industry, and a smallamount of labor is imported.  Degradation of the environment,drug trafficking and abuse, and poor housing are the country'smost pressing socioeconomic problems.  Unemployment--less than 2%in 1991--is not a problem, due to the rapid expansion of theexport processing zone (EPZ) during the last 10 years as well asto the government's success in curbing post-World War IIpopulation growth.Manufacturing.  During the second half of the 1980s,manufacturing emerged as the most important sector in theMauritian economy, surpassing the traditional sugar sector interms of gross foreign exchange earnings, job creation, andcontribution to GDP.  Non-sugar manufacturing accounted for about21% of total value added in 1991, compared to 17% in 1985.  Inaddition, the share of non-sugar manufactured exports in thetotal export earnings rose from under one-half in 1985 totwo-thirds in 1991.The performance of the manufacturing sector is largely influencedby the evolution of the EPZ, which is heavily concentrated intextile products.  In 1991, about 63% of EPZ firms engaged intextile production (mainly garments and knitwear) and accountedfor almost 90% of EPZ employment and over 75% of total EPZexports.  Other EPZ products include leather products, watches,optical goods, cut and polished gems, toys, canned tuna, and cutflowers.Sugar.  Despite the rapid growth of the EPZ sector in the pastseveral years, sugar still plays a key role in the Mauritianeconomy.  Sugarcane occupies about 45% of Mauritius' total landarea and 90% of its cultivated land.  The industry accounts forabout 10% of GDP (including milling), 15% of employment in largerestablishments, and 30% of gross foreign exchange earnings.Sugar is the most important commodity in net foreign exchangeearnings, as it has a lower import content (about 20%) than thatof manufactured exports (about 70%) in the EPZ sector.  Under theLome Convention, Mauritian exports have guaranteed access to theEuropean Economic Community market at a remunerative price for upto 507,000 metric tons, equivalent to about 75% of localproduction.Tourism.  Tourism is the third most important source of foreignexchange earnings after the EPZ and sugar.  In recent years, theindustry has witnessed remarkable growth, both in terms of grossearnings and tourist arrivals.  From 1983 to 1990, the number oftourists increased from 124,000 to 292,000, and gross earningsincreased from $34 million to $233 million.Vulnerabilities and Diversification.  Despite the impressiveeconomic performance of Mauritius, there remain severalunderlying structural weaknesses in the economy due to thecountry's overdependence on exports of textile products and sugarand to vulnerability to climatic conditions and unforeseenfluctuations in export prices.  As Mauritius enters the secondphase of its industrial development,  the government plans toreduce these vulnerabilities through aggressive industrial andexport market diversification.  Accordingly, the government isnow promoting investment in electronics, light engineering,computer software, pharmaceuticals, plastics, leather, jewelry,and printing and publishing operations, while at the same timeconsolidating the textile sector.The government also has taken measures to develop Mauritius as aregional financial center.  In 1989, the government set up boththe offshore banking center and the Port Louis Stock Exchange.Seven offshore banks operate in Mauritius.  The stock exchangestarted with only 5 companies but, over the last 2 years, hasexpanded its activities and now has 19 public companies on the"official list."  The government also launched an OffshoreBusiness Center in 1991 to promote the establishment of offshorecompanies in business activities including fund management,consultancy, and services.The success of the next phase of Mauritius' economic developmentwill depend on the availability of skilled labor at all levelsand on the country's ability to attract investment in moresophisticated and capital-intensive technologies and highervalue-added activities.FOREIGN RELATIONSStrong ties between Mauritius and the West are due to Mauritius'political heritage and dependence on Western markets.  Mauritiushas sought to establish close links with the European Communityand its member states, particularly the United Kingdom andFrance, which exercises sovereignty over neighboring Reunion.Considered part of Africa geographically, Mauritius has a solidrelationship with other African states and, in 1976, chaired themeeting of the Organization of African Unity.  It was chosen asthe site for the Secretariat of the Indian Ocean Commission inFebruary 1988.  The government has espoused positions oftenpromoted by third world countries.  India and Mauritius shareclose relations based on cultural and ethnic ties.Foreign embassies in Mauritius include Australia, the UnitedKingdom, China, Egypt, France, India, Madagascar, Pakistan, theRussian Federation, and the United States.DEFENSEMauritius does not have a standing army.  All military, police,and security functions are carried out by the 6,000-memberNational Police force.  The 1,200-member Special Mobile Force(SMF) and the 500-member National Coast Guard are the only twopara-military units in Mauritius.  Both units are composed ofpolice officers on lengthy rotations to those services.The SMF is organized as a ground infantry unit and engagesextensively in civic works projects.  The Coast Guard has threecoastal patrol craft and an airplane for search and rescuemissions and surveillance of territorial waters.  The SpecialSupporting Unit is a 300-member riot-control force.Military advisers from the United Kingdom and India work with theSMF, the Coast Guard, and the Police Helicopter Unit, andMauritian police officers are trained in the United Kingdom,India, and France.  In January 1991, the Mauritian Governmentapproved Mauritian participation in the US International MilitaryEducation and Training Program (IMET), opening the way forMauritian officers to receive military training in the UnitedStates.US-MAURITIAN RELATIONSOfficial US representation in Mauritius dates from the end of the18th century.  An American consulate was established on theisland in 1794 but closed in 1911.  It was reopened in 1967 andelevated to embassy status upon the country's independence in1968.  Since 1970, the mission has been directed by a resident USambassador.Relations between the United States and Mauritius, recentlyhighlighted by the June 1991 official visit of Prime MinisterJugnauth to Washington, are good.  US trade with and investmentin Mauritius are relatively small but growing.  Most categoriesof Mauritian textiles, a major export, are under US importrestraints; Mauritius has a modest US sugar quota as well.In 1991, Mauritius imported US goods valued at $15.3 million.The same year, the United States imported $130.9 million inMauritian products, mostly knitwear and other textiles and sugar.In FY 1991, the US Agency for International Development (USAID)provided $3 million under the Mauritius IndustrialDiversification Project, mainly in the form of technicalassistance.  In addition, USAID provided $165,000 under the FY1991 US Self-Help Fund Program and $300,000 for population/familyplanning programs, including supply and training in the use ofcontraceptives.Principal US Officials:Ambassador--vacantDeputy Chief of Mission--David B. DunnThe US embassy in Mauritius is located in the Rogers House, 4thfloor, J. Kennedy Street, Port Louis (tel. [phone]; FAX[phone]).TRAVEL NOTES;Customs:  Visas are not required for US citizens, but travelersshould have onward or return tickets.  Immunization certificatesare not required unless the traveler arrives in Mauritius from aninfected area.Currency, exchange, and banking:  Travelers may bring in anyamount of foreign notes or travelers checks.Health:  Mauritius has no major health hazards.  Local clinicsand pharmacies are adequate.  Precautions should be taken beforeconsuming raw fruits and vegetables or tap water.Telecommunications:  Reliable international mail, telephone, FAX,and telegraph services are available. Mauritius is nine timezones ahead of eastern standard time.Transportation:  Regular flights serve Europe, East and SouthernAfrica, India, Singapore, Hong Kong, and Australia.  Rental carsand taxis are readily available.  Traffic moves on the left.  Busservice is regular and inexpensive throughout Mauritius. Mostroads, though paved, are narrow, twisting, and poorly lit atnight.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of Public Communication -- Washington,DC November 1992 -- Editor:  Marilyn J. BremnerDepartment of State Publication 8023--Background Notes Series --This material is in the public domain and may be reprintedwithout permission; citation of this source is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>U.S. Department of StateBackground Notes:  Mauritania, July 1995Bureau of Public AffairsJuly 1995Official Name:  Islamic Republic of Mauritania PROFILE Geography Area: 1.1 million sq. km. (419,212 sq. mi.); slightly larger than Texas and New Mexico combined. Cities: Capital--Nouakchott (pop. 600,000). Other cities--Nouadhibou (70,000), Kaedi (74,000), Zouerate (27,000), Kiffa (65,000), Rosso (50,000). Terrain: Northern four-fifths barren desert; southern 20% mainly Sahelian with small scale irrigated and rain-fed agriculture in the Senegal River basin. Climate:  Predominantly hot and dry. People Nationality: Noun and adjective--Mauritanian(s). Population (1995): 2.3 million. Annual growth rate: 2.9%. Ethnic groups: Arab-Berber, Arab-Berber-Negroid, Pulaar, Soninke, Wolof. Religion: Islam. Languages: Hassaniya Arabic (official), French, Pular, Wolof, and Soninke. Education: Years compulsory--none. Attendance--Student population enrolled in primary school 83%. Adult literacy--33%. Health: Infant mortality rate--125/1,000. Life expectancy--46 yrs. Work force: Agriculture and fisheries--50%. Services and commerce--20%. Government--20%. Industry and transportation--5%. Other--5%. Government Type: Republic. Independence: November 28, 1960. Constitution: Promulgated 1961, abolished by decree July 10, 1978. New constitution approved by referendum July 20, 1991. Branches: Executive--president (chief of state). Legislative--bicameral national assembly, elected lower house (79 members), and upper house (56 members) chosen indirectly by municipal councilors. Judicial--a supreme court and lower courts are subject to control of executive branch; judicial decisions are rendered mainly on the basis of shari'a (Islamic law) for social/family matters and a western style legal code, applied in commercial and some criminal cases. Political parties: Officially 19. Suffrage: Universal at 18.Economy GDP (1994 est.): $1.1 billion. Annual growth rate: 5.6%. Per capita income: $480. Natural resources: Fish, iron ore, gypsum.Agriculture (24% of GDP): Products--livestock, millet, maize, wheat, dates, rice.Industry (30% of GDP): Types--iron mining, fishing.Trade (1994) (40% of GDP): Exports--$419 million. Major markets--Japan 29%; Italy 14%; France 14%; Spain 10%, Belgium/Luxembourg 7%; Switzerland 5%. Imports--$384 million: foodstuffs, machinery, tools, cloth, consumer goods. Major suppliers--France 33%; U.S. 10%; Spain 9%; Germany 6%; Algeria 6%; Belgium/Luxembourg 5%;  Italy 4%.U.S.-MAURITANIAN RELATIONSBefore June 7, 1967, the United States maintained cordial relations with Mauritania and provided a small amount of economic assistance. However, Mauritania broke diplomatic and consular relations with the United States during the June 1967 Middle East war. Relations were restored two years later, and ties were relatively friendly until the late 1980s, despite disagreement over the Arab-Israeli issue.Between 1983 and 1991, when the USAID (U.S. Agency for International Development) mission in Mauritania ceased operations, the United States provided $67.3 million in development assistance. The U.S. also provided emergency food assistance through bilateral channels until 1992 and, subsequently, through multilateral channels. Since 1981, the United States has provided about $100 million in economic and food assistance.The 1989 rupture between Mauritania and Senegal that resulted in the deportation of tens of thousands of Mauritanian citizens negatively affected U.S.-Mauritanian relations. Moreover, Mauritania's perceived support of Iraq prior to and during the Gulf war of 1991 further weakened the strained ties.Relations between the U.S. and Mauritania reached a low in the spring of 1991, as details of the Mauritanian military's role in widespread human rights abuses surfaced. The United States responded by formally halting USAID operations and all military assistance to Mauritania. Since late 1991, the Government of Mauritania has expressed a desire to restore good relations with the United States. It has implemented democratic reforms such as the legalization of political parties,  a free press, and presidential and legislative elections.   The government has also improved its overall performance on human rights.The prospects for resuming U.S. military and development assistance to Mauritania hinge on Mauritania's continued progress on human rights. Trade and InvestmentIn 1995, an American firm was awarded a $17 million contract for projects in Mauritania in telecommunications and other fields, indicating that bilateral commercial ties are expanding.Mauritanians would welcome U.S. investment, particularly in fisheries. U.S. exporters have been active in the mining sector, although primarily through European offices or agents. Export opportunities exist in transportation, agriculture, boat repair, and port handling equipment. Principal U.S. OfficialsAmbassador--Dorothy M. Sampas Deputy Chief of Mission--Joseph D. Stafford Political/Military Officer--Raymond D. Richart, Jr.Economic/Consular/Commercial Officer--Marie C. Damour The address of the U.S. embassy in Mauritania is BP 222, Nouakchott, Islamic Republic of Mauritania. Tel. [phone]; Telex AMEMB 5558 MTN; Fax [phone]. GOVERNMENT AND POLITICAL CONDITIONS From July 1978 to April 1992, Mauritania was governed by a military junta. The ruling group was composed of military officers holding ministerial portfolios or important positions in the defense establishment. The chairman of the committee was also chief of state. A new constitution was approved by referendum in July 1991; in early 1992, faced with internal crisis in the form of ethnic strife, as well as a cutoff of military and development assistance from abroad, the government reverted to civilian rule and the military committee was disbanded. Maaouya Ould Sid'Ahmed Taya remained at the head of government. As of June 1995, only one military officer remained in the Council of Ministers.Politics in Mauritania have always been heavily influenced by personalities, with any leader's ability to exercise political power dependent upon control over resources, perceived ability or integrity, and tribal, ethnic, family, and personal considerations. It is likely that during the civilian transition still underway, the chief of state, though very powerful, will continue to be subject to tribal and ethnic pressures. Conflict between Moor and non-Moor ethnic groups, centering on language, land tenure, and other issues, continues to be the dominant challenge to national unity.The government bureaucracy is composed of traditional ministries, special agencies, and parastatal companies. The Ministry of Interior controls a system of regional governors and prefects modeled on the French system of local administration. Under this system, Mauritania is divided into 13 regions (wilayas) and one district (Nouakchott). Control is tightly centralized in Nouakchott. However, partly because of 1992 national elections and 1994 municipal elections, a decentralizing trend in the bureaucracy is underway.Political parties, illegal during the military period, were legalized again in 1991, as a sign of democratic reform.  By April 1992, when the civilian transition occurred, 15 political parties had been recognized. Although most are small, there are two main opposition parties. Most opposition parties boycotted the first legislative election in 1992, and the parliament is dominated by one party, President Taya's PRDS (Parti Republicain et Democratique Social). The opposition participated in municipal elections in January-February 1994 and subsequent Senate elections, gaining representation at the local level as well as one seat in the Senate. Much social status is determined by descent from either the region's Arab-Berber conquerors or the Caucasoid-Negroid peoples they enslaved. A distinction between aristocracy and servant historically defined Maure (Moor) society as "white" and "black"--traditionally the enslaved indigenous class came to be called black Moors--although such status differences are declining. The ethnic conflict that troubled Mauritania in the late 1980s and early 1990s has lessened, although political parties still  reflect the country's social division. Many of the country's non-Arabic-speaking black citizens support opposition parties, while others are active in the PRDS.Principal Government Officials President--Maaouya Ould Sid'Ahmed Taya Prime Minister--Sidi Mohamed Ould Boubacar Minister of Foreign Affairs and Cooperation--Mohamed Salem Ould LekhalAmbassador to the United Nations--Mohamed Ould ElyAmbassador to the United States--Ismael Ould IyahiMauritania maintains an embassy in the United States at 2129 Leroy Place NW, Washington, DC  20008 (tel. [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of Public Communication  --  Washington, DC  --  July 1995  --  Managing Editor:  Peter A. Knecht  --  Editor:  Lorin HochmanDepartment of State Publication 8169  --  Background Notes series  --  This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC  20402. 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        <text>BACKGROUND NOTES:  THE MARSHALL ISLANDSPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEFEBRUARY 1994Official Name:  Republic of the Marshall IslandsPROFILEPeopleNationality:  Noun and adjective--Marshallese.Population (1993 est.):  50,000.Annual growth rate:  4%.Ethnic groups:  95% Marshallese, 5% U.S., Filipino, Chinese, NewZealander, and Korean.Religions:  Christian, mostly Protestant.Languages:  English; two major Marshallese dialects from Malayo-Polynesian family; Japanese.Education:  Literacy (1991)--60%.  Health:  Infant mortality rate--63/1,000.  Life expectancy--men 61 yrs., women 64 yrs.  Workforce--about 15,000:  Services, including government--58%.Construction and manufacturing--21%.  Agriculture and fishing--21%.GeographyArea:  181 sq. km. (approximately 70 sq. mi.) of islands scatteredover 500,000 sq. mi. of the Western Pacific; slightly larger thanWashington, DC.Cities:  Capital--Majuro (pop. 22,000).  Other cities--Ebeye, Jaluit.Terrain:  34 low-lying coral atolls and volcanic islands.Climate:  Tropical with a wet season from May to November.GovernmentType:  Parliamentary democracy in free association with the U.S.; theCompact of Free Association entered into force October 21, 1986.Independence:  October 21, 1986 from the U.S.-administered UNtrusteeship.Constitution:  May 1, 1979.Branches:  Executive--president (chief of state), cabinet.Legislative--unicameral parliament Nitijela and consultativeCouncil of Iroij (traditional leaders).  Judicial--Supreme Court, highcourt, district and community courts, traditional rights court.Political Parties:  "Government" Party and the Ralik-RatakDemocratic Party (RRDP).Suffrage:  Universal at age 18.Administrative subdivisions:  24 local governments.Flag:  Deep blue background with two rays, one orange and one white,and a 24-point star.EconomyGDP:  $69 million (This 1988 figure is the most recent availablefrom the Marshallese Government).Per capita income (est.):  $1,600 (factoring in U.S. assistancethrough Compact of Free Association payments; $200-$600 withoutU.S. payments).Natural resources:  Marine resources, including mariculture, andpossible deep seabed minerals.Agriculture:  Copra (dried coconut meat), taro, breadfruit.Industry:  Copra processing.Trade (1989 est.):  Exports--$2.2 million:  trochus shells, copra cakeand oil, tropical aquarium fish, chilled fish.  Imports--$44.3 million:food, fuel, consumer goods.  Major trading partners:  U.S., Japan,Australia, Hong Kong, New Zealand.Official currency:  U.S. dollar.PEOPLEThe Marshalls are comprised of 34 atolls and major islands, whichform two parallel groups--the "Ratak" (sunrise) chain and the "Ralik"(sunset) chain.Nearly three-fourths of the nation's population lives in the capital,Majuro and Ebeye.  The outer islands are sparsely populated due tolack of employment opportunities and economic development.The Marshallese are of Micronesian origin, which is traced to acombination of peoples who emigrated from Southeast Asia in theremote past.  The matrilineal Marshallese culture revolves around acomplex clan system tied to land ownership.  Virtually allMarshallese are Christian, most of them Protestant.  RomanCatholics account for a small segment of the population.  OtherChristian denominations include Seventh-day Adventist, Mormon,Salvation Army, and Jehovah's Witness.  A small Bahai communityalso exists.Both Marshallese and English are the official languages.  English isspoken by most of the urban population.  However, both the Nitijela(parliament) and national radio use Marshallese.The public school system provides education through grade 12,although admission to secondary school is selective.  The elementaryprogram employs a bilingual/bicultural curriculum.  English isintroduced in the 4th grade.  There is one post-secondary institutionin the Marshall Islands--the College of the Marshall Islands.HISTORYLittle is clearly understood about the prehistory of the MarshallIslands.  That successive waves of migratory peoples fromSoutheast Asia spread across the Western Pacific about 3,000 yearsago and that some of them landed on and remained on these islandsis about all that researchers agree upon.  The Spanish explorerAlvarode Saavendra landed there in 1529.  The islands were claimedby Spain in 1874.  They were named for English explorer JohnMarshall, who visited them in 1799.  Germany established aprotectorate in 1885 and set up trading stations on the islands ofJaluit and Ebon to carry out the flourishing copra (dried coconutmeat) trade.  Marshallese Iroij (high chiefs) continued to rule underindirect colonial German administration.At the beginning of World War I, Japan assumed control of theMarshall Islands.  Their headquarters remained at the German centerof administration, Jaluit.  U.S. Marines and army troops took controlfrom the Japanese in early 1944, following intense fighting onKwajalein and Enewetak atolls.  In 1947, the United States, as theoccupying power, entered into an agreement with the UN SecurityCouncil to administer Micronesia, including the Marshall Islands,known as the Trust Territory of the Pacific Islands.On May 1, 1979, in recognition of the evolving political status of theMarshall Islands, the United States recognized the constitution ofthe Marshall Islands and the establishment of the Government of theRepublic of the Marshall Islands.  The constitution incorporates bothAmerican and British constitutional concepts.GOVERNMENTThe legislative branch of the government consists of the Nitijela(parliament) with an advisory council of high chiefs.  The Nitijelahas 33 members from 24 districts elected for concurrent 4-yearterms.  Members are called senators.  The president is elected by theNitijela from among its members.  Presidents pick cabinet membersfrom the  Nitijela.  Amata Kabua was elected as the first Presidentof the republic in 1979.  Subsequently, he was re-elected to 4-yearterms in 1983, 1987, and 1991.The Republic of the Marshall Islands has four court systems:Supreme Court, high court, district and community courts, and thetraditional rights court.  Trial is by jury or judge.  Jurisdiction ofthe traditional rights court is limited to cases involving titles orland rights or other disputes arising from customary law andtraditional practice.Principal Government OfficialsHead of State--President Amata KabuaMinister of Foreign Affairs--Tom KijinerAmbassador to the U.S.--Wilfred I. KendallAmbassador to the UN--Carl L. HeineThe Republic of the Marshall Islands maintains an embassy at 2433Massachusetts Avenue, NW, Washington, DC 20008  (tel. [phone]).  The Marshall Islands' mission to the United Nations islocated at the News Building, 220 E. 42nd St., 31st Floor, New York,NY 10017  (tel.  [phone]).  Consulates are located at 1441Kapiolani Blvd., Suite 1910, Honolulu, HI  96814  (tel. [phone]) and 1500 Quail St., Suite 210, Newport Beach, CA  92660 (tel.[phone]).POLITICAL CONDITIONSCitizens of the Marshall Islands live with a relatively newdemocratic political system combined with a hierarchicaltraditional culture.  As in some other Pacific island nations,potential conflict has been avoided by virtue of the fact that one ofthe highest chiefs, Amata Kabua, has been elected President.  Therehave been a number of local and national elections since the Republicof the Marshall Islands was founded, and in general, democracy hasfunctioned well.There have been some incidents of human rights concern, however,such as the government urging a high court judge to resign or puttingpressure on the local newspaper because of press criticism.In the 1991 national election, the Ralik-Ratak Democratic Party(RRDP) was formed to run against President Kabua and hissupporters.  The governing party was later called the GovernmentParty.  The RRDP elected only two candidates to the Nitijela, but theparty remains an alternative for people dissatisfied with thenational government.ECONOMYThe government is the largest employer, employing 34% of theworkforce.  GDP is derived mainly from payments made by the UnitedStates under the terms of the Compact of Free Trade Association.Direct U.S. aid accounted for $40 million of the Marshalls' 1992budget of $65 million.The economy combines a small subsistence sector and a modern,urban sector.  The subsistence sector, on the outer islands, is fueledby the production of copra and handicrafts.  The modern service-oriented economy is located in Majuro and Ebeye.  It is sustained bygovernment expenditures and the U.S. Army installation at KwajaleinAtoll, which gives a boost to the economy in its own right.  Theairfield there also serves as a national hub for Air Marshall Islands.The modern sector consists of wholesale and retail trade,restaurants, banking and insurance, construction and repair services,professional services, and copra processing.  Copra cake and oil areby far the nation's largest exports.  At $1.8 million, copra accountedfor 79% of 1989 exports.  Copra production, the most importantsingle commercial activity for the past 100 years, now depends ongovernment subsidies, however.  The subsidies, more a social policythan an economic strategy, help reduce migration from outer atollsto densely populated Majuro and Ebeye.Marine resources, including fishing, opening a cannery, andaquaculture, as well as tourism development and agriculture are topgovernment development priorities.  The Marshall Islands is workingto establish a fishing fleet and sells fishing rights to other nationsas a source of income.  As a small nation, the Marshall Islands mustimport a wide variety of goods, including foodstuffs, consumergoods, machinery, and petroleum products.FOREIGN RELATIONSWhile the Government of the Marshall Islands is free to conduct itsown foreign relations, it does so under the terms of the Compact ofFree Association (see U.S.-Marshallese Relations).  Sinceindependence, the Republic of the Marshall Islands has establishedrelations with a number of nations, including most other PacificIsland nations.  Regional cooperation, through membership in variousregional and international organizations, is a key element in itsforeign policy.The Marshall Islands became a member of the United Nations inSeptember 1991.  The Marshall Islands maintains embassies in theU.S., Fiji, Japan, and China.U.S.-MARSHALLESE RELATIONSAfter more than a decade of negotiation, the Marshall Islands and theUnited States signed the Compact of Free Association on June 25,1983.  The people of the Marshall Islands approved the compact in aUN-observed plebiscite on September 7, 1983.  The U.S. Congresssubsequently reviewed the compact, adding several amendmentswhich were accepted by the Government of the Marshall Islands.The compact was signed into U.S. law on January 14, 1986 (PL 99-239), and entered into force on October 21, 1986.  The Republic ofthe Marshall Islands is a sovereign nation in "free association" withthe United States.  Under the compact, the United States has fullauthority and responsibility for security and defense of the MarshallIslands, and the Government of the Marshall Islands is obligated torefrain from taking actions that would be incompatible with thesesecurity and defense responsibilities.  The duration of the compactis 15 years (ending in 2001), with renegotiations to begin in the13th year (1999).A major subsidiary agreement of the compact allows the UnitedStates continued use of the Army Kwajalein Atoll (USAKA) missiletest range for up to 30 years.  Kwajalein, an atoll consisting ofapproximately 90 islets around the largest lagoon in the world, isused by the Department of Defense on a lease agreement with theGovernment of the Marshall Islands.  The U.S. Department of Defensecontrols the use of some islands within Kwajalein atoll.Another major subsidiary agreement of the compact provides forsettlement of all claims arising from the U.S. nuclear testsconducted at Bikini and Enewetak Atolls from 1946 to 1958.The United States and the Marshall Islands have full diplomaticrelations.  The Marshall Islands have expressed an interest inattracting U.S. investment and hosted an Overseas PrivateInvestment Corporation mission in March 1992.Fifteen Peace Corps teachers serve in the Marshall Islands.  Underthe terms of the compact, more than 40 U.S. Federal Governmentagencies such as the Federal Aviation Administration, U.S. PostalService, the Small Business Administration, and Federal EmergencyManagement Agency operate programs or render assistance to theMarshall Islands.Principal U.S. Embassy OfficialsAmbassador--David C. FieldsPolitical/Economic/Consular Officer--Thomas M. MurphyAdministrative Officer--John W. DinklemanPeace Corps Director--Jamie FoussThe U.S. embassy in the Marshall Islands is located on Lagoon Road,Majuro  (tel. [phone]).  Mailing Address:  PO Box 680, Majuro,MH  96960.TRAVEL NOTESCustoms:  Proof of U.S. citizenship, preferably a passport, but notvisas, are required of American citizens travelling to the MarshallIslands.  Visitors can obtain permits to stay up to three months bypresenting an onward or return ticket and evidence of sufficientfunds to cover the period of stay.  Immunizations against cholera andyellow fever may be required of travelers coming from infectedareas.  AIDS testing may be required of visitors staying longer than3 months.Climate and clothing:  Climate is tropical, with high humidity, anaverage temperature of 84 degrees, and little seasonal change.Rainfall varies from 6-14 inches monthly.  Dress is casual.  Shortsare not acceptable as street wear for either sex.Health:  Typhoid, hepatitis B, and venereal diseases are endemic inthe Marshall Islands.  Typhoid and polio shots are recommended.Health care is adequate for minor medical problems.  Tap water isnot potable; bottled water is available.  Travelers should consultlatest information.Telecommunications:  Domestic and international telephone serviceis available.  Telephone service outside Majuro and Kwajalein isunavailable.  Outer islands are linked by an HF radio net.  Majuro isacross the international date line, 16 standard time zones ahead ofeastern standard time.Transportation:  Flights arrive in Majuro from Honolulu, Guam, andFiji several times a week.  Domestic flights service 25 airstrips on22 inhabited atolls.  Transportation between islands is alsoavailable by sea.  Taxis are plentiful in Majuro, and publictransportation is excellent; Rental cars are available, but there areonly 152 km. (95 mi.) of paved roads in the Marshalls (mostly onMajuro and Ebeye).Published by the U.S. Department of State -- Bureau of PublicAffairs -- Office of Public Communication -- Washington, DC 20520--February 1994 -- Managing Editor:  Peter Knecht.Department of State Publication 10096 -- Background Note SeriesContents of this publication are not copyrighted unless indicated.  Ifnot copyrighted, the material may be reproduced without consent;citation of the publication as the source is appreciated.  Permissionto reproduce any copyrighted material (including photos andgraphics) must be obtained from the original source.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>BACKGROUND NOTES:  MALI, APRIL 1993PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF  STATEAPRIL 1993Official Name:  Republic of MaliPROFILEGeographyArea:  1,240,278 sq. km. (474,764 sq. mi); about the size ofTexas and California.  Cities: Capital--Bamako (pop. 880,000).Other cities--Segou (85,000), Mopti (75,000), Kayes (50,000), Gao(40,000).  Terrain:  Savannah and desert.  Climate: Semitropicalin the south; arid in the north.PeopleNationality:  Noun and adjective--Malian(s).  Population (1991est.): 8.3  million.  Annual growth rate: 2. 9%.  Ethnic groups:Mande (Bambara or Bamana, Malinke, Sarakole) 50%, Peul 17%,Voltaic 12%, Songhai 6%, Tuareg and Moor 5%.  Religions:  Islam90%, indigenous 9%, Christian 1%.  Languages:  French (official)and Bambara (spoken by about 80% of the population).  Education:Attendance--21% (primary); 9% (secondary).  Literacy--15%.Health:  Infant mortality rate--173/1,000.  Life expectancy--48yrs.  Work force (3.5 million):  Agriculture--75%.Services--13%.  Industry and commerce--12%.GovernmentType:  Republic.  Independence:  Sept. 22, 1960.  Constitution:Approved by referendum January 12, 1991.Branches:  Executive--president (chief of state andcommander-in-chief of the armed forces), prime minister (head ofgovernment).  Legislative--unicameral National Assembly.Judicial--Supreme Court with both judicial and administrativepowers.Political parties:  Mali is a multi-party democracy; 11 politicalparties are represented in the National Assembly; others areactive in local government.   Suffrage:  Universal at 18.Administrative subdivisions:  8 regions and capital district.Central government budget (1992):  Revenues--$825 million.Expenditures--$869 million; $44 million deficit.Flag:  Three vertical bands--green, yellow, and red.EconomyGDP (1991):  $2.8 billion.  Annual growth rate (1988-91):  3%.Per capita income (1991):  $300.  Annual skilled worker's salary:$1,680.  Average inflation rate (1991): 1.7%.Natural resources:  Gold, phosphate, kaolin, salt, andlimestone currently mined; deposits of bauxite, iron ore,manganese, lithium, and uranium are known or suspected.Agriculture (40% of GDP):  Products--millet, sorghum, corn,rice, livestock, sugar, cotton, groundnuts (peanuts), and tobacco.Industry (19% of GDP):  Types--food processing, textiles,cigarettes, fish processing, metalworking, light manufacturing,plastics, and beverage bottling.Trade (1991):  Exports--$430 million: cotton and cottonproducts, animals, fish, tannery products, groundnuts, diamonds,and gold.  Major markets--France, Germany, and other Europeancountries.  Imports--$610 million:  food, machinery and spareparts, vehicles, petroleum products, chemicals andpharmaceuticals, textiles.  Major suppliers--France, Coted'Ivoire, Belgium, Luxembourg, the US ($26 million), Germany, andJapan.Official exchange rate (1991): Communaute FinanciereAfricaine 282 = US $1.PEOPLEMali's population consists of diverse sub-Saharan ethnic groups,sharing similar historic, cultural, and religious traditions.Exceptions are the Tuaregs and Maurs, desert nomads, related tothe North African Berbers.  The Tuaregs traditionally haveopposed the central government.  Starting in June 1990, armedattacks in the North by Tuaregs seeking greater autonomy and bybandit groups led to clashes with the military.  In April 1992,the government and most opposing factions signed a pact to endthe fighting and restore stability in the north.  Its major aimsare to allow greater autonomy to the north and increasegovernment resource allocation to what has been a traditionallyimpoverished region.Historically, good inter-ethnic relations throughout the rest ofthe country were facilitated by easy mobility on the country'svast savannahs.  Each ethnic group was traditionally tied to aspecific occupation, all working within close proximity.  TheBambara, Malinke, Sarakole, and Voltaic were farmers; the Peulh,Moor, and Tuareg, herders; and the Bozo, fishers.  In recentyears, this linkage has shifted as ethnic groups seek diverse,non-traditional sources of income.  Along the Niger River betweenTimbuktu and Gao, the Songhai farm and fish.  Until droughts inthe mid-1970s, the Tuaregs were the principal herders in thisregion.Although each ethnic group speaks a separate language, nearly 80%of Malians communicate in Bambara, the common language of themarketplace.  Malians enjoy a relative harmony rare in Africanstates.HISTORYMalians express great pride in their ancestry.  Mali is thecultural heir to the succession of ancient Africanempires--Ghana, Malinke, and Songhai--that occupied the WestAfrican savannah.  These empires controlled Saharan trade andwere in touch with Mediterranean and Middle Eastern centers ofcivilization.The Ghana Empire, dominated by the Soninke people and centered inthe area along the Malian-Mauritanian frontier, was a powerfultrading state from about A.D. 700 to 1075.  The Malinke Kingdomof Mali had its origins on the upper Niger River in the 11thcentury.  Expanding rapidly in the 13th century under theleadership of Soundiata Keita, it reached its height about 1325,when it conquered Timbuktu and Gao.  Thereafter, the kingdombegan to decline, and by the 15th century, it controlled only asmall fraction of its former domain.The Songhai Empire expanded its power from its center in Gaoduring the period 1465-1530.  At its peak under Askia Mohammad I,it encompassed the Hausa states as far as Kano (in present-dayNigeria) and much of the territory that had belonged to the MaliEmpire in the west.  It was destroyed by a Moroccan invasion in1591.French military penetration of the Soudan (the French name forthe area) began around 1880.  Ten years later, the French made aconcerted effort to occupy the interior.  The timing and methodof their advances were determined by resident military governors.A French civilian governor of Soudan was appointed in 1893, butresistance to French control did not end until 1898, when theMalinke warrior Samory Toure was defeated after 7 years of war.The French attempted to rule indirectly, but in many areas theydisregarded traditional authorities and governed throughappointed chiefs.  As part of the colony of Soudan, Mali wasadministered with other French colonial territories as theFederation of French West Africa.In early 1957, as a result of France's Basic Law (Loi Cadre), theTerritorial Assembly obtained extensive powers over internalaffairs and was permitted to form a cabinet with executiveauthority over matters within the assembly's competence.  Afterthe 1958 French constitutional referendum, Soudan became a memberof the French Community and enjoyed complete internal autonomy.In January 1959, Soudan joined Senegal to form the MaliFederation, which became fully independent within the FrenchCommunity on June 20, 1960.  The federation collapsed on August20, 1960, when Senegal seceded.  On September 22, Soudanproclaimed itself the Republic of Mali and withdrew from theFrench Community.President Modibo Keita, whose party, the Union Soudanaise, haddominated preindependence politics, moved quickly to declare asingle-party state and to pursue a socialist policy based onextensive nationalization.  A continuously deteriorating economyled to a decision to rejoin the Franc Zone in 1967 and modifysome of the economic excesses.On November 19, 1968, a group of young officers staged abloodless coup and set up a 14-member Military Committee forNational Liberation (CMLN), with Lt. Moussa Traore as president.The military leaders renounced socialism and attempted to pursueeconomic reforms, but for several years faced debilitatinginternal political struggles and the disastrous Sahelian drought.A new constitution, approved in 1974, created a one-party stateand was designed to move Mali toward civilian rule.  However, themilitary leaders remained in power.  In September 1976, a newpolitical party was established, the Democratic Union of theMalian People (UDPM), based on the concept of non-ideologicaldemocratic centralism.  Single-party presidential and legislativeelections were held in June 1979, and Gen. Moussa Traore received99% of the votes.  His efforts at consolidating the single-partygovernment were challenged in 1980 by student-led anti-governmentdemonstrations, which were brutally put down, and by three coupattempts.The political situation stabilized during 1981 and 1982, andremained generally calm throughout the 1980s.  The UDPM beganattracting additional members as it demonstrated that it couldcounter an effective voice against the excesses of localadministrative authorities.  Shifting its attention to Mali'seconomic difficulties, the government approved plans for cerealmarketing liberalization, reform in the state enterprise system,new incentives to private enterprise, and an agreement with theInternational Monetary Fund (IMF).However, by 1990, there was growing dissatisfaction with thedemands for austerity imposed by the IMF's economic reformprograms and the perception that the president and his closeassociates were not themselves adhering to those demands.As in other African countries, demands for multi-party democracyincreased.  The Traore Government allowed some opening of thesystem, including the establishment of an independent press andindependent political associations,  but insisted that Mali wasnot ready for democracy.  In early 1991, student-ledanti-government rioting broke out again, but this time it wassupported also by government workers and others.  On March 26,1991, after 4 days of intense anti-government rioting, a group of17 military officers arrested President Traore and suspended theconstitution.  Within days, these officers joined with theCoordinating Committee of Democratic Associations to form apredominantly civilian, 25-member ruling body, the TransitionalCommittee for the Salvation of the People (CTSP).  The CTSP thenappointed a civilian-led government.  A national conference heldin August 1991 produced a draft constitution (approved in areferendum January 12, 1992), a political parties charter, and anelectoral code.  Political parties were allowed to form freely.Between January and April 1992, a president, National Assembly,and municipal councils were elected.  On June 8, 1992, AlphaOumar Konare, the candidate of the Association for Democracy inMali (ADEMA), was inaugurated as the President of Mali's ThirdRepublic.GOVERNMENT AND POLITICAL CONDITIONSUnder Mali's new constitution, the president is chief of stateand commander-in-chief of the armed forces.  Presidents areelected to 5-year terms, with a limit of two terms.  Thepresident appoints the prime minister as head of government.  Thepresident chairs the Council of Ministers (the prime minister and19 other minister, which adopts proposals for laws submitted tothe National Assembly for approval.The National Assembly is the sole legislative arm of thegovernment.  It currently consists of 116 members, but anadditional 13 seats have been allocated to Malians abroad, and 4to Malian Tuaregs displaced by the rebellion.  Representation isapportioned according to the population of administrativedistricts.  Election is direct and by party list.  The term ofoffice is 5 years.  The Assembly meets for two regular sessions ayear.  It debates and votes on legislation proposed either by oneof its members or by the government and has the right to questiongovernment ministers about government actions and policies.Eleven political parties, aggregated into four parliamentarygroups, are represented in the Assembly. ADEMA (the president'sparty) currently holds the majority; minority parties arerepresented in all committees and in the Assembly directorate.Mali's new constitution provides for a multi-party democracy,with the only restriction being a prohibition against partiesbased on ethnic, religious, regional, or gender lines.  Inaddition to those political parties represented in the NationalAssembly, others are active in municipal councils.Administratively, Mali is divided into eight regions and thecapital district of Bamako, each under the authority of anappointed governor.  Each region consists of five to ninedistricts, or cercles, administered by commandants.  Cercles aredivided into arrondissements, which, in turn, are divided intovillages.  Plans for decentralization have begun with theestablishment of a number of elected municipal councils, headedby elected mayors.  Further plans envision election of localofficials and the reduction of administrative control by thecentral government.Mali's legal system is based on codes inherited at independencefrom France.  New laws have been enacted to make the systemconform to Malian life, but French colonial laws not abrogatedstill have the force of law.  The new constitution provides forthe independence of the judiciary.  However, the Ministry ofJustice appoints judges and supervises both law enforcement andjudicial functions.  The Supreme Court has both judicial andadministrative powers.  Under the constitution, there is aseparate constitutional court and a high court of justice withthe power to try senior government officials in cases of treason.Principal Government OfficialsPresident--Alpha Oumar KonarePrime Minister--Younoussi Toure Minister of ExternalRelations--Mohamed Alhousseyni ToureAmbassador to the US--Siragatou Ibrahim CisseAmbassador to the United Nations--Nouhoum SamassekouMali maintains an embassy in the United States at 2130 R Street,NW, Washington, DC 20008 (tel. [phone]), and a permanentmission to the United Nations at 111 E. 69th Street, New York, NY10020.ECONOMYMali's per capita GDP of $300 places it among the world's 10poorest nations.  Its potential wealth lies in mining and theproduction of agricultural commodities, livestock, and fish.Agricultural activities occupy 75% of Mali's labor force andprovide 40% of the gross domestic product (GDP).  Cotton andlivestock make up 80-85% of Mali's annual exports.  Small-scaletraditional farming dominates the agricultural sector, withsubsistence farming (of cereals, primarily sorghum, millet, andmaize) on about 90% of the 1.4 million hectares (3.4 millionacres) under cultivation.The most productive agricultural area lies along the banks of theNiger River between Bamako and Mopti and extends south to theborders of Cote d'Ivoire and Burkina Faso.  Average rainfallvaries in this region from 50 centimeters per year (20 in.)around Mopti to 140 centimeters (55 in.) in the south nearBougouni.  This area is most important for the production ofcotton, millet, corn, vegetables, tobacco, and tree crops.Rice is grown extensively along the banks of the Niger betweenSegou and Mopti, with the most important rice-producing area atthe Office du Niger, located north of Segou toward theMauritanian border.  Using water diverted from the Niger, theOffice du Niger irrigates about 40,000 hectares of land for riceand sugarcane production.  About one-third of Mali's paddy riceis produced at the Office du Niger.The Niger River also is an important source of fish, providingfood for riverine communities; the surplus--smoked, salted, anddried--is exported.  Due to drought and diversion of river waterfor agriculture, fish production has steadily declined since theearly 1980s.Sorghum is planted extensively in the drier parts of the countryand along the banks of the Niger in eastern Mali, as well as inthe lake beds in the Niger delta region.  During the dry season,farmers near the town of Dire have cultivated wheat on irrigatedfields for hundreds of years.  Peanuts are grown throughout thecountry but are concentrated in the area around Kita, west ofBamako.Mali's greatest resource is livestock, consisting of millions ofcattle, sheep, and goats.  Approximately 40% of Mali's herds werelost during the great drought in 1972-74.  The level wasgradually restored, but the herds were again decimated in the1983-85 drought.  The overall size of Mali's herds is notexpected to reach pre-drought levels in the north of the country,where encroachment of the desert has forced many nomadic herdersto abandon pastoralism and turn instead to farming.  The largestconcentrations of cattle are in the areas north of Bamako andSegou extending into the Niger delta, but herding activity isgradually shifting southward, due to the effects of previousdroughts.  Sheep, goats, and camels are raised to the exclusionof cattle in the dry areas north and east of Timbuktu.Until the late-1960s, Mali was self-sufficient in grains--millet,sorghum, rice, and corn.  Diminished harvests during bad years, agrowing population, changing dietary habits, and, mostimportantly, policy constraints on agricultural productionresulted in grain deficits almost every year from 1965 to 1986.Production has rebounded since 1987, however, thanks toagricultural policy reforms undertaken by the government andsupported by the Western donor nations. Liberalization ofproducer prices and an open cereals market have createdincentives to production.  These reforms, combined with adequaterainfall, successful integrated rural agriculture programs in thesouth, and improved management of the Office du Niger, have ledto surplus cereal production over the past 5 years.Annual rainfall--amount and duration--is critical for Mali'sagriculture.  Rainfall has increased since the 1983-85 drought.The 1991-92 cereal harvest reached a record 2.5 million tons.Mining is a rapidly growing industry in Mali, with goldaccounting for some 80% of mining activity.  There areconsiderable proven reserves of other minerals not presentlyexploited.  Gold has become Mali's third largest export, aftercotton and livestock.  The largest private investment in goldmining in Mali is that of BHP Minerals, a multinationalAmerican-Australian company.  An agreement was signed in 1992 foran expansion of the company's mine at Syama in southern Mali.With this expansion, the total BHP investment will reach $140million.During the colonial period, private capital investment wasvirtually nonexistent, and public investment was devoted largelyto the Office du Niger irrigation scheme and to administrativeexpenses.  Following independence, Mali built some lightindustries with the help of various donors.  Manufacturing,consisting principally of processed agricultural products,accounted for about 8% of the GDP in 1990.Economic ReformWith the encouragement of the major donors and the internationalfinancial institutions, the Government of Mali initiated a seriesof adjustment and stabilization programs in 1982.  Measures wereintroduced to reduce budgetary deficits, public enterpriseoperating losses, and public sector arrears.   Substantialprogress was made in the first few years of the adjustmentprogram, but the pace of reform slowed considerably in 1987 andrequired the intervention of donors to avert a financial crisis.Under the economic reform program signed with the World Bank andthe IMF in 1988, the government has taken a number of steps toliberalize the regulatory environment and thereby attract privateinvestment.  For example, applications for the establishment ofbusiness enterprises now enjoy "one window" (guichet unique)processing through a single ministry, allowing a business to beestablished in a matter of days.  In addition, price controls onconsumer goods have been eliminated steadily; the last pricecontrol, on petroleum products, was removed on July 1, 1992.Import quotas were eliminated in 1988, and export taxes weredropped in 1991.  The Commerce Code was revised in 1991 to removeimpediments to commercial activity.  Also in 1991, a system ofcommercial and administrative courts was established to handleprivate trade complaints and claims against the government.Another major element of reform is the government's disinvestmentfrom the public enterprises which dominated commerce immediatelyafter independence.  Already 20 of the 50 state-supportedenterprises identified for disinvestment have been sold orliquidated, thus reducing government expenditure on this elementof the public sector.Foreign AidMali is a major recipient of foreign aid from many sources,including multilateral organizations (most significantly theWorld Bank), Western nations (led by France and including theUnited States), China, and Arab donors.  Before 1991, the formerSoviet Union had been a major source of economic and militaryaid, including construction of a cement plant and the Kalana goldmine.  Currently, aid from Russia is restricted mainly totraining and provision of spare parts. Chinese aid andChinese-Malian joint venture companies have become more numerousin the last 3 years.  The Chinese are major participants in thetextile industry and in large-scale construction projects,including a bridge across the Niger, completed in April 1992.Private voluntary organizations (including several based in theUS) are very active in Mali.In 1991, US assistance to Mali reached $51 million.  Thisincluded $34 million in project and budget support through UnitedStates Agency for International Development (USAID) programs.USAID is Mali's fourth largest bilateral donor after France,Italy, and Japan.  Mali also received $5 million in PL 480 TitleIII (Food for Peace) commodities and $8 million in Title IIcommodities, primarily to meet food needs in the North.  Other USprograms funded in FY 1991 include democratization ($1.1million), Peace Corps ($2.7 million), and the Ambassador'sSpecial Self-Help fund ($135,000).  In addition, $260,000 wasallocated to Mali under the International Military EducationTraining (IMET) program.FOREIGN RELATIONSSince independence in 1960, Malian governments have shifted froman ideological commitment to socialism to a pragmatism thatwelcomes all aid donors and encourages private investment.  Thepresent government, which assumed office in June 1992, professesits commitment to economic reform, structural adjustment, freemarket policies, and regional integration.  Mali's relations withthe United States and other Western nations are good.Mali is a member of the UN and many of its specialized agencies,including the International Monetary Fund (IMF) and the WorldBank; International Labor Organization; InternationalTelecommunications Union; Universal Postal Union; Senegal RiverValley Development Organization (OMVS); Organization of AfricanUnity (OAU); Organization of Islamic Countries (OIC); Non-AlignedMovement (NAM); Economic Community of West Africa States(ECOWAS); West African Monetary Union (WAMU); West AfricanEconomic Community (CEAO); is an associate member of the EuropeanCommunity (EC); African Development Bank (ADB); and INTELSAT.Mali is active in the OAU and ECOWAS.  It participates in theLiptako-Gourma Authority, which seeks to develop the contiguousareas of Mali, Niger, and Burkina Faso; the Niger RiverCommission; and the Permanent Interstate Committee for DroughtControl in the Sahel (CILSS).DEFENSEMali's armed forces number some 7,000 and are under the controlof the Minister of Defense.  The gendarmerie (paramilitarypolice) and local police forces (under the Ministry ofTerritorial Administration) maintain internal security.  Mali'sarmy and air force until recently relied primarily on the SovietUnion for materiel and training.  A few Malians receive militarytraining in the United States, France, and Germany.  Militaryexpenditures total about 2% of GNP.US-MALIAN RELATIONSThe United States wishes to see Mali pursue its national goals inan atmosphere of stability and freedom from outside interference.The US Agency for International Development and Peace Corps sharethe joint goal of promoting sustainable economic development.  USprograms are active in the areas of economic policy reform,agriculture and natural resources management, health and familyplanning, and education. Specifically, the United States workswith the Malian Government to:-- Achieve food security and help break the cyclical connectionbetween low agricultural production and poor health;-- Support private-sector development through policy change andinstitutional development; and-- Improve management and planning.In addition, the United States helps address recurrent problemsof drought, disease, and insect infestations.Principal US OfficialsAmbassador--Herbert Donald Gelber Counselor of the Embassy--PeggyBlackfordPolitical Officer--David AlaridEconomic Officer--Rob MerriganPublic Affairs Officer (USIS)--William G. CrowellDirector, AID Mission--Chuck Johnson Director, PeaceCorps--Howard AndersonThe US embassy is located at Rue Mohamed V and Rue Rochester NY,Bamako, tel. [phone], Fax:  [phone], telex No. 2448MJ.  The mailing address is BP 34, Bamako.  Hours are 7:30-4:00Monday through Friday.Travel NotesCustoms:  A visa is required for entry and may be obtained at anyMalian embassy abroad.  Yellow fever inoculations are requiredprior to arrival.Health:  Suppressants for chloroquine-resistant malaria arestrongly recommended.  Emergency medical care is available inBamako, but medical facilities are limited.  Bring an adequatesupply of personal prescription medicines and health-careproducts, including insect repellent and sun screen.  Tap watermust be boiled and filtered.  Bottled water is available.  Meatsshould be thoroughly cooked.  Inquire at the US Public HealthService prior to departure from the United States for latesthealth information and requirements.Climate and clothing:  Summer clothing is suitable for Bamako.Wash-and-wear clothing and sturdy shoes are recommended.  Hatsand sunglasses should be worn outdoors to protect againstover-exposure to the sun.Telecommunications:  Long-distance telephone and telegraphicservice is limited.  Public-use telephone, telex, and FAXfacilities are available.  Mali is on Greenwich Mean Time, 5hours ahead of Eastern Standard Time.Money and Banking:  Banks are open from 7:30-11:30 A.M. and from1:15-3:30 P.M. Monday through Thursday and from 7:30-12:00 noonon Fridays.  Personal checks and credit cards cannot be used forbanking transactions, though the major hotels in Bamako do acceptcredit cards for payment of hotel bills.Transportation:  Privately owned automobiles are the principalmeans of transportation in Bamako for Americans.  Bus servicewithin Bamako and to the suburbs was started in 1992.  Taxis arealso readily available, and vehicles (with drivers) may bechartered for long trips.  Roads between major cities in Mali arepaved.  Bamako is serviced by international flights from Paris,Brussels, and from New York via Dakar. One private airline(Malitas) offers regularly-scheduled internal flights, and twocharter airline companies operate in Mali.Published by the United States Department of State -- Bureau ofPublic Affairs  -- Office of  Public Communication -- Washington,DC -- April 1993 --  Managing Editor -- Peter A. Knecht --Editor:  Anita StockmanDepartment of State Publication 8056Background Notes Series -- This material is in the public domainand may  be reprinted without permission; citation of this sourceis appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  MALDIVESOFFICIAL NAME:   Republic of MaldivesPROFILEGeographyArea: 298 sq. km. (115 sq. mi.) spread over 1,200 islands; twice thesize of Washington, D.C.  Cities: Capital-Male (pop. 52,000). Terrain:Flat islands. Climate: Hot and humid.PeopleNationality: Noun and adjective-Maldivian(s). Population (1988):200,000. Annual growth rate (1977-85): 3.2%. Density: About 664 persq. km. (1,721 per sq. mi.). Ethnic groups: South Indians, Sinhalese,Arabs. Religion: Sunni Islam. Languages: Dhivehi; many governmentofficials speak English. Education: Years compulsory-none.Attendance-primary, 61%; secondary, 19%. Literacy-93%. Health:Infant mortality rate-108/1,000. Life expectancy-53 yrs. Work force(60,000): Agriculture, fishing, manufacturing-60%. Services andgovernment-40%.GovernmentType: Republic. Constitution: June 4, 1964. Independence: July 26,1965.Branches: Executive-president, cabinet. Legislative-unicameral Majlis.Judicial-High Court, 8 lower courts, 19 atoll courts.Administrative subdivisions: 19 atolls and capital city.Political parties: None. Suffrage: Universal adult.Central government budget (1987): 39% of GDP.Flag: A white crescent centered in a green rectangle on a red field.EconomyGDP (1987): $95 million. Annual growth rate (1987): 9%. Per capitaGDP (1987): $494. Inflation (1987): 23%.Domestic economy (1987): Tourism (17% of GDP); fishing (16% ofGDP); agriculture (11% of GDP); industry (6% of GNP).  Trade(1987): Exports-$35 million: fish products, garments. Majormarkets-U.S., Thailand, Sri Lanka. Imports-$74 million: manufacturedgoods, machinery and equipment, food products. Majorsuppliers-Singapore, Thailand, India.Official exchange rate (1988): 8.6 rufiyaas=U.S.$1.Fiscal year: Calendar year.Aid received (1987): $13 million. Primary donors-World Bank, UNDevelopment Program, Saudi Fund, Kuwaiti Fund, Japan, Norway.U.S. aid (1987)-$500,000.Membership in International OrganizationsUN and some of its specialized and related agencies, South AsianAssociation for Regional Cooperation (SAARC), Colombo Plan,Commonwealth, Group of 77, Nonaligned Movement, IslamicLeague, Asian Development Bank, Organization of the IslamicConference (OIC).GEOGRAPHYThe Republic of Maldives is located in the northern Indian Ocean. Itscapital, Male, is an island about 2.6 square kilometers (1 sq. mi.),670 kilometers (415 mi.) southwest of Sri Lanka. The Maldives are achain of 19 atolls extending 764 kilometers (502 mi.) from north tosouth. The archipelago is 120 kilometers (74 mi.) wide at its widestpoint. Its southern tip is 644 kilometers (400 mi.) from Diego Garcia.The atolls comprise 1,200 coral islands, which seldom exceed anelevation of 2 meters (6 ft.) above sea level. No island is larger than13 square kilometers (5 sq. mi.). Tropical vegetation varies fromgrass and scrub to dense groves of fruit trees and coconut palms.The climate is equatorial, hot and humid, with little daily variation. Theaverage temperature is 27 C (80 F), with a relative humidity of 80%.Most of the area is subject to the "wet" southwest monsoon(May-October) and the "dry" northwest monsoon (December-March).Annual rainfall averages 254 centimeters (100 in.) in the north and281 centimeters (150 in.) in the south.PEOPLEOf the 1,200 islands, 202 are inhabited.  The population is scatteredthroughout the country, with the greatest concentration on the capitalisland, Male.  Only four islands have a population of more than3,000.  Although most islands are uninhabited, absence of potablewater and arable land limits population expansion.The earliest settlers were probably from southern India, speakinglanguages of the Dravidian family.  They were followed byIndo-European speakers from Sri Lanka in the fourth and fifthcenturies B.C.  In the 12th century, sailors from Arab countries andEast Africa came to the islands.  Today, Maldivian ethnicconsciousness is a strong blend of these cultures, reinforced byreligion and language.Originally Buddhists, Maldivians were converted to Sunni Islam in themid-12th century. Islam is the official religion and that of the entirepopulation. Strict adherence to Islamic precepts and closecommunity relationships have kept crime under control.The official language is Dhivehi, an Indo-European language relatedto Sinhala, the language of Sri Lanka. The writing system, like Arabic,is from right to left, although the alphabets are different. Vocabularyis overwhelmingly Maldivian.Some social stratification exists on the islands.  It is not rigid, sincerank is based on varied factors, including occupation, wealth, Islamicvirtue, and family ties. Members of the social elite are concentratedin Male.HISTORYThe early history of the Maldives is obscure. According to Maldivianlegend, a Sinhalese prince named Koimale was stranded with hisbride, daughter of the king of Sri Lanka, in a Maldivian lagoon andstayed on to rule as the first sultan. The islands were governed as asultanate from 1153 to 1968 with only two exceptions-15 years ofPortuguese rule in the 16th century and a short-lived republicangovernment in 1953.Over the centuries, the islands were visited and influenced by sailorsfrom countries on the Arabian Sea and the Indian Ocean littorals.Mopla pirates from the Malabar Coast (present-day Kerala State inIndia) harassed the islands. In the 16th century, the islands wereplagued by Portuguese raiders, who eventually were driven away bythe warrior-patriot Muhammad Thakurufar Al-Azan. Althoughindependent for most of its history, Maldives was ruled by Portugalfrom 1558 to 1573 and were a British protectorate from 1887 untilJuly 26, 1965.On November 11, 1968, the sultanate was abolished, and thecountry assumed its present name. Ibrahim Nassir, prime ministerunder the sultanate, was president from 1968 to 1978. He wassucceeded by Maumoon Abdul Gayoom, who was elected presidentin 1978, 1983, and 1988.A 1956 bilateral agreement gave the United Kingdom the use, for 20years, of Gan (in Addu Atoll) in the far south as an air facility in returnfor British aid. The agreement ended in 1976, shortly after the Britishclosed the Gan air station.In April 1987, high tides that swept over Maldives, destroying muchof Male and nearby islands, prompted high-level Maldivian interest inglobal climactic changes, including the "greenhouse effect."On November 3, 1988, Maldives was rocked when Sri Lankan Tamilmercenaries attempted to overthrow the government.  At PresidentGayoom's request, the Indian military suppressed the coup attemptwithin 24 hours.  In early 1989, 68 mercenaries and 6 Maldiviansimplicated in the attempt were tried.GOVERNMENT AND  POLITICAL CONDITIONSA 1968 referendum approved the work of a special parliament, andMaldives became a republic with executive, legislative, and judicialbranches of government. The constitution was amended in 1970,1972, and 1975, and has been under revision since 1981.The president presides over the executive branch and appoints thecabinet. Nominated to a 5-year term by a secret ballot of the Majlis(parliament), the president must be confirmed by a nationalreferendum.The unicameral Majlis is composed of 48 members serving 5-yearterms. Two members from each atoll and Male are elected directlyby universal suffrage. Eight are appointed by the president.  A Majlismember can be elected in the middle of a session and complete the5-year term in the following session.The Maldivian legal system, derived mainly from traditional Islamiclaw, is administered by secular officials, a chief justice, and lesserjudges on each of the 19 atolls, who are appointed by the presidentand function under the Ministry of Justice. There also is an attorneygeneral.Each inhabited island within an atoll has a chief who is responsiblefor law and order. Every atoll is administered by an atoll chief,appointed by the president, who functions as a district officer in theBritish South Asian tradition.Maldives has no organized political parties. Candidates for electiveoffice run as independents on the basis of personal qualifications.Principal Government OfficialsPresident; Minister of Defense and National Security; Minister ofFinance-Maumoon Abdul GayoomMinistersAtolls Administration-Abdulla HameedEducation-Muhammad Zahir HussainFisheries and Agriculture-Abdulla JameelForeign Affairs-Fathulla JameelHealth and Welfare-Abdul Sattar Moosa DidiHome Affairs and Sports-Umar ZahirJustice-Muhammad Rasheed IbrahimPlanning and Environment-vacantPublic Works and Labor-Abdulla KamaludeenTourism-Ahmed MujathabaTrade and Industries-Ilyas IbrahimTransport and Shipping-Abbas IbrahimAttorney General-Ahmed ZakiECONOMYThe Maldivian economy is based on tourism and fishing. Poor soiland unavailable arable land limit agriculture to a few subsistencecrops. Traditional industry consists of boatbuilding and handicrafts,while modern industry is restricted to a cannery and a few garmentfactories and consumer products.Fishing employs about one-third of the labor force. Production wasmore than 60,000 metric tons in 1988, most of which was skipjackand yellowfin tuna. More than one-half of the annual harvest isfrozen, canned, or dried and exported to Thailand, Sri Lanka, andother countries.In recent years, Maldives successfully has marketed its naturalassets for tourism - beautiful beaches on small coral islands, bluewaters abundant with tropical fish, and glorious sunsets. Since thefirst resort was established in 1972, 58 resort hotels have beendeveloped-each on its own island-with a capacity of about 7,300beds. The number of tourists-mainly from Europe and Japan-visitingthe Maldives increased from 1,100 in 1972 to 155,758 in 1988. Tofacilitate tourism, Male International Airport has been expanded toaccommodate wide-bodied aircraft. In early 1989, six internationalairlines-as well as charter companies-serviced Male.Maldivians traditionally have been good sailors. The national carrier,Maldives National Ship Management Ltd., operates a fleet of about13 vessels-down from nearly 40 in the early 1980s-serving manyworldwide destinations.In 1987, Maldives had a balance-of-trade deficit of $39 million.Because of large earnings from tourism, however, the currentaccount was in balanced.  Import duties, taxes on tourism, andforeign grants are Maldives' largest sources of revenue.Inflation was high, at 23%, chiefly because a major currencydevaluation in 1987 led to increased import prices.   Preliminary datafor 1988 show the cost of living declining.Four factories-three on the site of the former Royal Air  Force Baseon Gan Island-export apparel to the United States. A fish canningfactory also has become a source of foreign exchange.Over the years, Maldives has received economic assistance frommultinational development organizations, including the UNDevelopment Program (UNDP) and the World Bank. Individualdonors, including Japan and European and Arab countries, alsohave contributed. The United States has furnished assistancethrough the PL 480 program, most recently in 1987.FOREIGN RELATIONSMaldives follows a nonaligned policy and is committed to maintainingfriendly relations with all countries. Maldives has a UN mission inNew York and an embassy in Sri Lanka.  India, Sri Lanka, thePalestine Liberation Organization, and Pakistan currently maintainresident embassies in Male. The United States, West Germany,Bangladesh, and France have consular agencies in Male under thesupervision of their embassies in Colombo. The UNDP has arepresentative resident in Male. Many countries have nonresidentambassadors accredited to the Maldives, most of them based in SriLanka or India.U.S.-MALDIVIAN RELATIONSThe United States has friendly relations with the Republic of Maldives.The U.S. Ambassador and most embassy staff in Sri Lanka areaccredited to Maldives and make periodic visits. The U.S. consularagent in Male provides limited consular assistance to U.S. visitors.The United States supports Maldivian independence and territorialintegrity and publicly endorsed India's timely intervention on behalfof the Maldivian Government during the November 1988 coupattempt. U.S. naval vessels have regularly called at Male in recentyears.U.S. contributions to economic development in Maldives have beenmade principally through international organization programs.Although no aid agreement exists between the two countries, theUnited States has indirectly funded training for Maldivian civiliansabroad. The United States also trains a small number of Maldivianmilitary personnel annually. The United States provided $2.75 millionin wheat through the PL 480 Program from 1985 to 1987 anddonated $25,000 in disaster relief during April 1987 high tides.The U.S. Consular Agency in Male is located at Mahdu Edurage,20-05 Violet Magu, Henveru, Male (tel. 322581, telex 66028).TRAVEL NOTESCustoms:  Visas are not required of foreigners who stay up to 30days. Unlimited amounts of foreign currency may be taken into orout of the country. Visitors wishing to convert rufiyaas into dollarsupon departure must have proof that the rufiyaas were obtained fordollars. The import of pork and alcohol is prohibited.Health:  Medical facilities are adequate by Third World standards.Male has a modern 48-bed hospital, and there are medical rescueservices in the atolls. Valid immunizations against yellow fever maybe required; check latest information. All islands except Male posea malaria risk.Telecommunications:  International telephone, telegraph, and telexservices generally are reliable. Telephone service within Male isadequate, but the service connecting Male to the resort islands issometimes erratic. Male is 10 hours ahead of eastern standard time.Transportation:  Six airlines service the Maldives. Boats are theprimary means of transport between the islands. Limited taxi serviceis available in Male.Tourist attractions:  Maldives have some of the world's most beautifulbeaches, excellent snorkling, scuba diving, wind surfing, and fishing.Further InformationThese titles are provided as a general indication of material publishedon this country. The Department of State does not endorse unofficialpublications.Hockly, Thomas William. The Two Thousand Isles-A Short  Accountof the People, History, and Customs of the       Maldive Archipelago. London: 1935.Maldives Ministry of External Affairs. The Maldive Islands. Colombo:Gunasena, 1952.Maloney, Clarence. People of the Maldives Islands. Bombay:Longman Orient, 1980.Maldives Ministry of Planning and Development. Statistical Year Bookof Maldives (annual). Male: Government of the Maldives.Heyerdhal, Thor. The Maldives Mystery. Bethesda, Md.: Adler &Adler, 1986.Available from the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C. 20402.American University. Indian Ocean: Five Island Countries. AreaHandbook Series, 1983.Published by the United States Department of State --  Bureau ofPublic Affairs  -- Officeof  Public Communication -- Washington, D.C.-- February 1990Editor:  Juanita AdamsDepartment of State Publication 8026-- Background Notes Series  --This material is in the public domain and may  be reprinted withoutpermission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C.  20402</text>
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        <text>U.S. Department of StateBackground Notes:  Malaysia, November 1995Bureau of Public AffairsNovember 1995Official Name: MalaysiaPROFILEGeographyArea: 329,749 sq. km. (127,316 sq. mi.); slightly larger than New Mexico.Cities: Capital--Kuala Lumpur (1.6 million). Other cities--Penang, Petaling Jaya, Ipoh, Malacca, Johore Bahru, Kuching, Kota Kinabalu.Terrain: Coastal plains and interior, jungle-covered mountains. Peninsular Malaysia is separated from East Malaysia on Borneo by 644 km. (400 mi.) of the South China Sea.Climate: Tropical.PeopleNationality: Noun and adjective-- Malaysian(s).Population (1994): 19.5 million.Annual growth rate (1994): 2.4%.Ethnic groups: Malay and other indigenous 63%, Chinese 28%, Indian 8%, others 1%.Religions: Muslim, Hindu, Buddhist, Taoist, Christian, traditional.Languages: Malay, Chinese dialects, English, Tamil, other indigenous.Education: Years compulsory--nine. Attendance--99% (primary), 65% (secondary). Literacy--80% in Peninsular Malaysia, 60% in East Malaysia's Sabah and Sarawak.Health: Infant mortality rate--11/1,000. Life expectancy--71 yrs.Work force: 7.8 million. Manufacturing--25%. Agriculture--20%. Local trade and tourism--17%. Government--11%. Finance--9%. Construction--8%. Transportation and communications--5%. Mining and petroleum--0.5%.GovernmentType: Federal parliamentary democracy on the Westminster model with a constitutional monarch.Independence: August 31, 1957.Constitution: 1957.Branches: Executive--Yang di-Pertuan Agong ("paramount ruler," who is head of state and customarily referred to as the king and has ceremonial duties), prime minister (head of government), cabinet. Legislative--bicameral parliament, comprising 69-member Senate (26 elected by the 13 state assemblies, 43 appointed by the king) and 192-member House of Representatives (elected from single-member districts). Judicial--Federal Court, Court of Appeals, and high courts.Subdivisions: 13 states and the federal territory (capital). Each state has an assembly and government headed by a chief minister. Nine of these states have hereditary rulers, generally titled "sultan," while the remaining four have appointed governors in counterpart positions.Political parties: Barisan Nasional (National Front)--a broad coalition comprising the United Malays National Organization (UMNO) and 12 other parties, most of which are ethnically based; Democratic Action Party (DAP); Parti Se-Islam Malaysia (PAS); Parti Bersatu Sabah (PBS); Parti Melayu Semangat 46. There are more than 30 registered political parties, including the foregoing, 13 of which are represented in the federal parliament.Suffrage: Universal adult.EconomyGNP (1994): $67 billion.Annual real growth rate (1994): 9.2%.Per capita income (1994): $3,600.Natural resources: Petroleum, liquefied natural gas (LNG), tin, minerals.Agriculture: Products--palm oil, rubber, timber, cocoa, rice, pepper, pineapples.Industry: Types--electronics, electrical products, rubber products, automobile assembly, textiles.Trade (1994): Exports--$59 billion: electronic components, petroleum, timber and logs, palm oil, natural rubber, liquefied natural gas, electrical products, textiles. Major markets--Singapore 20%, U.S. 21%, Japan 12%, EU 14%. Imports--$59.5 billion: intermediate goods, machinery, metal products, food products, consumer durables, transport equipment. Major suppliers--Japan 27%, U.S. 17%, Singapore 14%, EU 13%.U.S.-MALAYSIAN RELATIONSThe United States has maintained friendly relations with Malaysia since its independence in 1957. Its contribution to stability in Southeast Asia, the growth of U.S.-Malaysian economic and cultural ties, Malaysia's role in the Association of Southeast Asian Nations, its self-reliant drive to develop its economy and preserve its independence, its participation in the Five-Power Defense Arrangement, and its strong commitment to the suppression of narcotics trafficking are in harmony with U.S. policy and form a solid basis for U.S.-Malaysian friendship.U.S. support for Malaysia has been demonstrated by cooperation in many areas, including narcotics enforcement, cultural exchanges, and a Fulbright educational exchange program initiated in 1963. (Malaysians, numbering about 16,000, represent one of the largest foreign student groups enrolled in American colleges and universities.) The United States also has supported Malaysia's defense efforts by providing for Malaysian participation in U.S. military education training programs and purchases of equipment under the foreign military sales program. The United States also actively promotes American trade and investment in Malaysia.Trade and InvestmentMalaysia's prospects for continuing growth and prosperity are excellent, with growth rates above 8% expected in the medium term. Malaysia possesses abundant resources and land, a well-educated work force, adequate infrastructure, and a stable political environment. It has been very attractive to U.S. investors, who have invested a total of $9 billion in the country, two-thirds of which is in petroleum development and electronic component production.There are relatively few trade problem areas. Malaysia, a member of the World Trade Organization, has few restraints on trade in goods. Its service sector, however, constitutes about 45% of the national economy and remains highly protected, particularly in financial services.Principal U.S. Embassy OfficialsAmbassador--vacantCharge d'Affaires--Wendy ChamberlinPolitical Counselor--G. Nicholas Mauger IIIEconomic Counselor--Deborah Lyn LindeCommercial Attache--B. Paul ScognaPublic Affairs Officer (USIS)--Julie G. ConnorAgricultural Attache--Kent D. SissonConsul--Philip FrenchThe U.S. embassy in Malaysia is located at 376 Jalan Tun Razak, 50400 Kuala Lumpur (tel. [phone]).GOVERNMENTMalaysia is a constitutional monarchy, nominally headed by the Yang di-Pertuan Agong ("paramount ruler"), customarily referred to as the king. Kings are elected for five-year terms from among the nine sultans of the peninsular Malaysian states. The king also is the leader of the Islamic faith in Malaysia.Executive power is vested in the cabinet led by the prime minister; the Malaysian constitution stipulates that the prime minister must be a member of the lower house of parliament who, in the opinion of the Yang di-Pertuan Agong, commands a majority in parliament. The cabinet is chosen from among members of both houses of parliament and is responsible to that body.The bicameral parliament consists of the Senate (Dewan Negara) and the House of Representatives (Dewan Rakyat). All 69 Senate members sit for six-year terms; 26 are elected by the 13 state assemblies, and 43 are appointed by the king. Representatives of the House are elected from single-member districts by universal adult suffrage. The 192 members of the House of Representatives are elected to maximum terms of five years. Legislative power is divided between federal and state legislatures.The Malaysian legal system is based on English common law. The Federal Court reviews decisions referred from the Court of Appeals; it has original jurisdiction in constitutional matters and in disputes between states or between the federal government and a state. Peninsular Malaysia and East Malaysia on Borneo each have a high court.The federal government has authority over external affairs, defense, internal security, justice (except civil law cases among Malays and other indigenous peoples, adjudicated under Islamic and traditional law), federal citizenship, finance, commerce, industry, communications, transportation, and other matters. The states of East Malaysia enjoy guarantees of state rights with regard to immigration, civil service, and customs matters. Control over oil and timber, and the distribution of revenues from taxes from these resources, as well as state autonomy in areas such as education and information, remain sources of controversy between the federal government and the states of East Malaysia, particularly Sabah.Principal Government OfficialsPrime Minister and Minister of Home Affairs--Datuk Seri Dr. Mahathir bin MohamadForeign Minister--Datuk Abdullah bin Haji Ahmad BadawiAmbassador to the U.S.--Datuk Abdul Majid bin MohamedAmbassador to the UN--Tan Sri Razali bin IsmailMalaysia maintains an embassy in the U.S. at 2401 Massachusetts Ave. NW, Washington, DC  20008, tel.  [phone]; a consulate general in the World Trade Center, 350 South Figueroa Street, Los Angeles, CA,  tel. [phone]; and a consulate general at 140 E 45th Street, New York, NY 10017, tel. [phone].POLITICAL CONDITIONSIn 1973, an alliance of communally based parties was replaced with a broader coalition--the Barisan Nasional--composed of 13 parties. Malaysia's predominant political party, United Malays National Organization, held party elections in April 1987; Datuk Seri Dr. Mahathir Mohamad successfully defended the presidency against his challenger, Tengku Razaleigh Hamzah. In October 1990, the Barisan coalition turned back an unprecedented opposition challenge spearheaded by Tengku Razaleigh's new party, Semangat 46. Razaleigh had brought together a loose opposition front composed of ideologically diverse parties, including Parti Bersatu Sabah (PBS) which had bolted from the Barisan coalition on the eve of elections. Barisan won 127 out of 180 parliamentary districts but lost control of two states: the Islamic opposition party--Parti Se-Islam Malaysia--captured control of Kelantan, while PBS retained control of Sabah.In March 1994, however, PBS lost control of Sabah when its assemblyman  defected from the Barisan coalition.  The party had won 26 out of the 48 state seats in the state election held in February 1994. The Barisan coalition was returned with an overwhelming majority in the 1995 general election, winning 162 out of the 192 parliamentary seats.TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, tel. [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.==============================Background Notes Series --  Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DCThis material is in the public domain and may be reproduced without permission; citation of this source is appreciated.(###)</text>
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        <text>BACKGROUND NOTES:  MADAGASCARPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEAPRIL 1994Official Name:  Republic of MadagascarPROFILEGeographyArea:  592,800 sq. km. (228,880 sq. mi.).Cities:  Capital--Antananarivo (pop. about 850,000).  Othercities--Antsirabe (about 120,000), Mahajanga (about 150,000),Toamasina (about 130,000).Terrain:  Mountainous central plateau, coastal plain.Climate:  Moderate interior, tropical coasts.PeopleNationality:  Noun and adjective--Malagasy.Population (1993 est.):  12 million.Annual growth rate (1993 est.):  3.2%.Ethnic groups:  18 Malagasy tribes; small groups of Comorians,French, Indians, and Chinese.Religions:  Traditional beliefs 55%, Christian 40%, Muslim 5%.Languages:  Malagasy (official), French.Education:  Years compulsory--5.  Attendance--83%.Literacy--53%.Health:  Infant mortality rate--120/1,000.  Life expectancy--51yrs.Work force (1992): 5.8 million.  Agriculture--88%.  Industry--7%.GovernmentType:  Republic.Independence:  June 26, 1960.Constitution: Entered into force on September 21, 1992.Branches:  Executive--president, prime minister, cabinet.Legislative--National Assembly and Senate.  Judicial--SupremeCourt, High Court of Justice, Constitutional High Court.Subdivisions:  Six provinces (faritany).Political parties:  Several dozen, including Active ForcesCartel, Militants for the Development of Madagascar, PeopleUnited Party, National Union for Development and Democracy,Social Democrat Party, Study and Action Group for Development inMadagascar, Rally for Social Democracy, Liberal Economic andDemocratic Action Party, Independence and Renewal Party ofMadagascar, The Equal Regional Development Party.Suffrage:  Universal at 18.National holiday:  June 26.Flag:  Vertical white band on staff side; horizontal red andgreen bands.EconomyGDP (1993 est.):  $1 billion at current prices; $2 billion atconstant prices.Per capita GDP (1993 est.):  $135.Natural resources:  Graphite, chrome, coal, bauxite, ilmenite,tar sands, semiprecious stones, hard wood.Agriculture (29% of GDP):  Products--rice, livestock, seafood,coffee, vanilla, sugar, cloves, cotton, sisal, peanuts, tobacco.Industry (14% of GDP):  Types--processed food, clothing,textiles, mining, paper, refined petroleum products, glassware,construction, soap, cement, tanning.Trade:  Exports (1992)--$328 million:  vanilla, sugar, cloves,shrimp, chromite, graphite.  Major export markets--France, U.S.,Germany, Japan, Singapore, Italy.  Imports (1992)--$547 million:consumer goods, foodstuffs, crude oil, machinery and vehicles,iron and steel.  Major suppliers--France, Iran, Japan, Germany,Saudi Arabia, Hong Kong..Exchange rate (April 1994):  1,900 FMG=US$1.PEOPLE AND HISTORYMadagascar's population is predominantly of mixed Asian andAfrican origin.  Recent research suggests that the island wasuninhabited until Indonesian seafarers  arrived in roughly thefirst century A.D., probably by way of southern India and EastAfrica, where they acquired African wives and slaves.  Subsequentmigrations from both the Pacific and Africa further consolidatedthis original mixture, and 18 separate tribal groups emerged.Asian features are most predominant in the central highlandspeople, the Merina (2 million) and the Betsileo (1 million); thecoastal people are of African origin.  The largest coastal groupsare the Betsimisaraka (1 million) and the Tsimihety and Sakalava(500,000 each).The Malagasy language is of Malayo-Polynesian origin and isgenerally spoken   throughout the island.  French also is spokenamong the educated of this former French colony.Most people practice traditional religions, which tend toemphasize links between the living and the dead.  They believethat the dead join their ancestors in the ranks of divinity andthat ancestors are intensely concerned with the fate of theirliving descendants.  This spiritual communion is celebrated bythe Merina and Betsileo reburial practice of famadihana, or"turning over the dead."  In this ritual, relatives' remains areexhumed, rewrapped in new silk shrouds, and reburied followingfestive ceremonies in their honor.About 40% of the Malagasy are Christian, divided almost evenlybetween Roman Catholic and Protestant.  Many incorporate the cultof the dead with their religious beliefs and bless their dead atchurch before proceeding with the traditional burial rites.  Theyalso may invite a pastor to attend a famadihana.An historical rivalry exists between the predominantly Catholiccoastal people (cotiers), considered to be underprivileged, andthe predominantly Protestant Merina, who tend to prevail in thecivil service, business, and professions.  A new policy ofdecentralizing resources and authority is intended to enhance thedevelopment potential of all Madagascar's provinces.The written history of Madagascar began in the seventh centuryA.D., when Arabs established trading posts along the northwestcoast.  European contact began in the 1500s, when Portuguese seacaptain Diego Dias sighted the island after his ship becameseparated from a fleet bound for India.  In the late 17thcentury, the French established trading posts along the eastcoast.  From about 1774 to 1824, it was a favorite haunt forpirates, including Americans, one of whom brought Malagasy riceto South Carolina.Beginning in the 1790s, Merina rulers succeeded in establishinghegemony over the major part of the island, including the coast.In 1817, the Merina ruler and the British governor of Mauritiusconcluded a treaty abolishing the slave trade, which had beenimportant in Madagascar's economy.  In return, the islandreceived British military and financial assistance. Britishinfluence remained strong for several decades, during which theMerina court was converted to Presbyterianism, Congregationalism,and Anglicanism.The British accepted the imposition of a French protectorate overMadagascar in 1885 in return for eventual control over Zanzibar(now part of Tanzania) and as part of an overall definition ofspheres of influence in the area.  Absolute French control overMadagascar was established by military force in 1895-96, and theMerina monarchy was abolished.Malagasy troops fought in France, Morocco, and Syria during WorldWar I.  After France fell to the Germans in 1942, Madagascar wasadministered first by the Vichy Government and then by theBritish, whose troops occupied the strategic island to precludeits seizure by the Japanese.  The Free French received the islandfrom the United Kingdom in 1943.In 1947, with French prestige at low ebb, a nationalist uprisingwas suppressed only after several months of bitter fighting.  TheFrench subsequently established reformed institutions in 1956under the Loi Cadre (Overseas Reform Act), and Madagascar movedpeacefully toward independence.The Malagasy Republic was proclaimed on October 14, 1958, as anautonomous state within the French Community.  A period ofprovisional government ended with the adoption of a constitutionin 1959 and full independence on June 26, 1960.GOVERNMENTIn August 1992, Malagasy voters overwhelmingly approved a new,democratic constitution to replace the socialist-oriented 1975charter.  According to the new constitution, the principalinstitutions of the Republic of Madagascar are a presidency, aparliament (National Assembly and Senate), a prime ministry andgovernment, and an independent judiciary.  The president iselected by direct universal suffrage for a five-year term,renewable only once, and is primarily responsible forMadagascar's defense and foreign policy.The National Assembly consists of 138 representatives elected bydirect vote every four years.  The selection of the Senate mustawait the formation of local governments, since two-thirds of theSenate will be elected by local legislatures and one-thirdappointed by the president, all for four-year terms.  Day-to-daymanagement of government is carried out by a prime minister and acouncil of ministers.  A prime minister is elected every fouryears by a new National Assembly.In reaction to the concentration of power in the hands of thepresident during the previous regime, the new constitutioncontains a number of checks and balances.  The prime minister,not the president, initiates and executes legislation.  Thegovernment and the president, provided they act in concert, candissolve the National Assembly.  For its part, the NationalAssembly can pass a motion of censure and require the primeminister and council of ministers to step down.  TheConstitutional Court approves the constitutionality of new laws.Territorial administration is to be determined by legislation.In an effort to decentralize administration, the currentstructure of six regions (faritany) are likely to be broken upinto more numerous districts, each with increased autonomy.  Theconstitution only provides for the perpetuation of rural villageand clan-level entities known as fokonolona, which are accordedthe right to protect their traditional fields, pasture lands, andsacred sites.Principal Government OfficialsPresident--Albert ZafyPrime Minister, Minister of Defense--Francisque RavonyMinister of Foreign Affairs--Jacques SyllaAmbassador to the U.S--Pierrot Jocelyn RajaonariveloAmbassador to the UN--Blaise RabetafikaMadagascar maintains an embassy in the United States at 2374Massachusetts Avenue NW., Washington, DC 20008(tel. [phone]).POLITICAL CONDITIONSMadagascar's first President, Philibert Tsiranana, was electedwhen his Social Democratic Party gained power at independence in1960 and was reelected without opposition in March 1972.However, he resigned only two months later in response to massiveanti-government demonstrations.  The unrest continued, andTsiranana's successor, General Gabriel Ramanantsoa, resigned onFebruary 5, 1975, handing over executive power to Lt. Col.Richard Ratsimandrava, who was assassinated six days later.  Aprovisional military directorate then ruled until a newgovernment was formed in June 1975, under Admiral DidierRatsiraka.During the 16 subsequent years of President Ratsiraka's rule,Madagascar continued under a government committed torevolutionary socialism based on the 1975 constitutionestablishing a highly centralized state.  National elections in1982 and 1989 returned Ratsiraka for a second and thirdseven-year presidential term.  For much of this period, onlylimited and restrained political opposition was tolerated, withno direct criticism of the president permitted in the press.With an easing of restrictions on political expression, beginningin the late 1980s, the Ratsiraka regime came under increasingpressure for fundamental change.  In response to a deterioratingeconomy, Ratsiraka had begun relaxing socialist dogma toinstitute some liberal, private-sector reforms.  But these andother political reforms--like the elimination of press censorshipin 1989 and the formation of more political parties in 1990--wereinsufficient to placate a growing opposition force known as HeryVelona or "active forces," centered in the capital city and thesurrounding high plateau.In response to largely peaceful mass demonstrations and cripplinggeneral strikes, Ratsiraka replaced his prime minister in August1991 but suffered an irreparable setback soon thereafter when histroops fired on peaceful demonstrators marching on his suburbanpalace, killing more than 30.In an increasingly weakened position, Ratsiraka acceded tonegotiations on the formation of a transitional government.  Theresulting "Panorama Convention" of October 31, 1991, strippedRatsiraka of nearly all of his powers, created interiminstitutions, and set an 18-month timetable for completing atransition to a new form of constitutional government.  The HighConstitutional Court was retained as the ultimate judicialarbiter of the process.In March 1992, a new constitution was drafted by a widelyrepresentative National Forum organized by the Malagasy ChristianCouncil of Churches.  Troops guarding the proceedings killedseveral pro-Ratsiraka "federalists" who tried to disrupt theforum in protest of draft constitutional provisions preventingthe incumbent president from running again.  The text of the newconstitution was put to a nationwide referendum in August 1992and approved by a wide margin, despite efforts by federalists todisrupt balloting in several coastal areas.Presidential elections were held on November 25, 1992, after theHigh Constitutional Court had ruled, over active forcesobjections, that Ratsiraka could become a candidate.  A runoffelection was held in February 1993, and active forces leaderAlbert Zafy defeated Ratsiraka.  He was sworn in as President onMarch 27, 1993.A nationwide legislative election was held in June 1993 to electa new National Assembly, which, under the new constitution,exercises legislative initiative along with the prime minister,whom it elects.  On the legislative agenda of the new NationalAssembly is the redefinition of Madagascar's territorialdivisions and the increased devolution of administrative decisionmaking to them.The proportional representation system for the election oflegislators contributed to a significant increase in the numberof political parties and special-interest groups.  These and afree press promote open and lively discussion of political issuesin Madagascar.ECONOMYAgriculture dominates the Malagasy economy, accounting for about43% of GDP and 80% of exports.  Recent estimates are that 88% ofthe work force is engaged in the agricultural sector.  Anestimated 65% of the population lives at subsistence level.Historically, Madagascar's principal export crops have beencoffee, vanilla, and cloves.  Coffee, which as recently as 1989,was Madagascar's largest earner of foreign exchange, is now adistant second, as both prices and exports have dropped sharply.Total coffee production has not increased appreciably since thelate 1980s.  Vanilla exports are the largest source of exportearnings, but in recent years this industry has come underintense pressure from foreign competition as well as byincreasing use of artificial flavorings.Clove exports have been highly cyclical in the past; however,prices have changed little in the last six years.  Despite pricestability, in 1992, exports fell nearly 35% in volume from theprevious year.Price stabilization funds for coffee and cloves were abolished inthe late 1980s, but the export price of vanilla remains subjectto government control.  The recent sharp decline in exportreceipts from these three cash crops has contributed to a severeshortage of foreign exchange in Madagascar, limiting the importof industrial inputs, capital equipment, and spare partsessential to national economic recovery plans.The principal food crop in Madagascar is rice.  In recent years,one of the main policy objectives in the agriculture sector hasbeen to expand rice production to meet food self-sufficiencytargets.  During the 1980s, controls on the transport,production, and sale of rice were removed.  Although rice importshave not been eliminated, they have declined appreciably fromlevels reached during the early 1980s.Other industries showing promise for foreign exchange andemployment are tourism, clothing manufacture, fishing, commercialagriculture, and mining.  Because of its unique and diverse floraand fauna, Madagascar has the potential of becoming a center ofworld eco-tourism.  The future development of this activity willdepend, however, on extensive improvements in the transportationand communication infrastructure in Madagascar.  It will alsodepend on efforts to control deforestation by the population ofas much as 80% of existing forests.Manufacturing accounts for about 14% of the nation's grossdomestic product.  Low labor costs have encouraged clothingmanufacturers to move some operations from Mauritius toMadagascar.  A program of duty-free-zones has also attracted someclothing manufacturers.  The clothing sector promises to becomeincreasingly important relative to the previous industrialsectors--food processing (currently 50% of industrial activity)and textiles (about 25%).  The duty-free program provides for taxbenefits and duty-free import of manufacturing inputs forexport-oriented industries.  By early 1993, about 70 companiesestablished under the provisions of this law were employing  morethan 17,000 workers.Madagascar's coastal waters, rich in fish and shrimp, have alsobecome an important source of foreign exchange.  In 1991, shrimpexport receipts overtook those from export of both coffee andcloves for the first time.  In the mineral sector, Madagascar hassubstantial deposits of mica, graphite, and chromite, but exportsof these minerals remain comparatively small (less than 10%).  Itis also a leading producer of semiprecious stones.  Largeilmenite deposits in the south may become important sources oftitanium dioxide, used for paint pigment.  Petroleum explorationcontinues in Madagascar, but commercially significant quantitiesof oil have not yet been found.In the foreign trade sector, Madagascar consistently has run alarge trade deficit since the mid-1980s.  Severely depressedcoffee export receipts and the failure to diversify into newexport products have exacerbated the trade imbalance.  Energyimports (one-sixth of total imports) are a major drain on foreignexchange resources.  Until 1988, the former Soviet Union wasMadagascar's principal supplier of crude oil.  Supplies are nowobtained from Middle Eastern sources and Iran.  France remainsMadagascar's principal trading partner.  The U.S. is an importantvanilla market, and Indonesia has been the largest customer forcloves, although its imports recently have decreased asIndonesia's domestic production has increased.FOREIGN RELATIONSMadagascar historically has remained outside the mainstream ofAfrican affairs, although it is an active member of theOrganization of African Unity and the Non-Aligned Movement.In contrast to former President Ratsiraka's "all points" policystressing ties with socialist and radical regimes, includingNorth Korea, Cuba, Libya, and Iran, President Albert Zafy hasexpressed his desire for diplomatic relations with all countries.Early in his tenure, he established formal ties with South Koreaand sent emissaries to Morocco.  Active relationships have beenmaintained with Europe, especially France, Germany, andSwitzerland, as well as with Russia, Japan, India, and China.U.S.-MALAGASY RELATIONSRelations with the United States date to the early 1800s.  Thetwo countries concluded a commercial convention in 1867 and atreaty of peace, friendship, and commerce in 1881.These traditionally warm relations suffered considerably duringthe 1970s, when Madagascar expelled the U.S. ambassador, closed aNASA tracking station, and nationalized two U.S. oil companies.In 1980, relations at the ambassadorial level were restored.Throughout the troubled period, commercial and cultural relationsremained active.In 1990, Madagascar was designated as a priority aid recipient,and assistance increased from $15 million in 1989 to $40 millionin 1993.  Recent U.S. assistance has contributed to a populationcensus and family planning programs, conservation of Madagascar'sremarkable biodiversity, private sector development, agriculture,democracy and governance initiatives, and media training.U.S. Embassy OfficialsAmbassador--Dennis P. BarrettDeputy Chief of Mission--Peter R. ReamsUSAID Director--George CarnerDefense Attache--Lt. Cdr. John LoganPublic Affairs Officer--Lawrence WohlersConsular Officer--Robert KragiePolitical Officer--Christopher DavisEconomic Officer--James FreundAdministrative Officer--Garace ReynardPeace Corps Director--Robert FriedmanThe U.S. embassy in Madagascar is at 14 Rue Rainitovo,Antsahavola, Antananarivo (tel. 212-57, 209-56; telex 222-02).The postal address is Ambassade Americaine, B.P. 620,Antananarivo, Madagascar.TRAVEL NOTESCustoms:  A valid passport and entry visa are required.  Touristsand official travelers should obtain visas before arrival;airport visas can be obtained for official travelers, butproblems have been encountered.  Travelers should be scrupulousin reporting currency; undeclared currency may be confiscated.Also required is a certificate of immunization against choleraand, if coming from an infected area, yellow fever.  Healthrequirements change; check latest information.  Unauthorizedexport of protected plant and animal species is severelysanctioned.Health:  Avoid raw fruits and vegetables; eat only thoroughlycooked meats.  Dairy products generally are not pasteurized andshould be avoided.  Tapwater is not potable--drink bottledbeverages without ice.  Do not swim in fresh or salt waterswithout competent local advice; fresh water is at risk forbilharzia, and coastal waters have sharks.  Antimalariamedication is advisable in the capital and indispensable in thecoastal areas.  The climate in the highland interior tends toprovoke colds and bronchitis.Telecommunications:  Long-distance telephone and telegraphservice is available but expensive and frequently unreliable.Antananarivo is eight time zones ahead of eastern standard time.Transportation:  International flights are often fully booked;travel arrangements should be confirmed well in advance.Domestic air connections are good.  Some parts of the country canbe covered by train, bus, rural taxi, or hired car, but the roadnetwork has deteriorated considerably, and many areas areinaccessible except by four-wheel-drive vehicles.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of  Public Communication -- Washington,DC  April 1994 -- Managing Editor:  Peter A. KnechtDepartment of State Publication 8015 -- Background Notes SeriesContents of this publication are not copyrighted unlessindicated.  If not copyrighted, the material may be reproducedwithout consent; citation of the publication as the source isappreciated.  Permission to reproduce any copyrighted material(including photos and graphics) must be obtained from theoriginal source.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>BACKGROUND NOTES:  LITHUANIA (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEOfficial Name:Republic of LithuaniaFOREIGN RELATIONSLithuania became a member of the United Nations on September 18,1991, and participates in a number of its organizations and is asignatory to other international agreements.  It also is a memberof the Conference on Security and Cooperation in Europe, theNorth Atlantic Cooperation Council, and the Council of Europe.Lithuania is unaffiliated directly with any political alliancebut welcomes further cooperation and integration with NATO, theEuropean Union, and other Western organizations.Lithuania maintains embassies in the United States, Sweden,Finland, the Vatican, Belgium, Denmark,  France, Germany, Poland,United Kingdom, and Venezuela.  It also operates missions inEstonia, Latvia, Russia, Czech Republic, Italy, Ukraine, and inNew York City, to the United Nations and a consulate.  Honoraryconsuls are located in Argentina, Australia, Canada, Iceland,South Korea, Greece, Norway, Philippines, and in the UnitedStates in Los Angeles and Chicago.Lithuania's liberal citizenship law has substantially easedtensions with its neighbors.  Lithuania's suspension of twostrongly ethnic Polish district councils on charges of blockingreform or disloyalty during the August 1991 coup had cooledrelations with Poland, but bilateral cooperation has markedlyincreased with the holding of elections in those districts andthe signing of a bilateral friendship treaty.  A long-standingborder dispute with Belarus is being negotiated.U.S.-Lithuanian RelationsThe United States established diplomatic relations with Lithuaniaon July 28, 1922.  U.S. representation accredited to Lithuaniaserved from the legation in Riga, Latvia, until May 31, 1930,when a legation in Kaunas was established.  The Soviet invasionforced the closure of the legation in Kaunas on September 5,1940, but Lithuanian representation in the United States hascontinued uninterrupted for over 70 years.  The U.S. neverrecognized the forcible incorporation of Lithuania into theU.S.S.R. and views the present Government of Lithuania as a legalcontinuation of the interwar republic.  Lithuania has enjoyedmost-favored-nation (MFN) treatment with the U.S. since December1991.  Through 1993, the U.S. has committed over $66 million toLithuania's economic and political transformation and to addresshumanitarian needs.  Food grain and feed grain assistance totals$46 million of this figure.Principal U.S. Embassy OfficialsAmbassador--vacantEconomic Officer--John Stepanchuk Political Officer--AlgisAvizienisAdministrative Officer--Matthew JohnsonConsular Officer--Steven WangsnessAID Director--John CloutierPublic Affairs Officer--Victor SidabrasThe U.S. embassy in Lithuania is located at Akmenu 6, Vilniustel. (370-2) 222-724.TRAVEL NOTESCustoms:  Lithuanian tourist visas still may be obtained atWestern road border crossings and at Vilnius Airport, but theU.S. Embassy strongly recommends that all visitors obtain visasfrom the Lithuanian Embassy in Washington DC (or in major WesternEuropean capitals) before departure. The Embassy and itsConsulates charge a $25 visa processing fee. Polish bordercrossings have expanded and improved, but one can expect delays.Visitors are encouraged to register at the U.S. Embassy. Latvianvisas are also valid for entry into Lithuania.Duty-free items include humanitarian aid, foreign currency andsecurities, goods and valuables unsuitable for consumption, anditems temporarily brought into Lithuania and brought back without"reworking or processing."  Besides internationally banned orregulated items requiring special permission, 10-25% percentduties and restrictions are imposed on a number of imports andexports, particularly alcohol, tobacco, foodstuffs and nonferrousmetals.  The government has lifted restrictions on the export ofhard currency.Climate and clothing:  Vilnius's climate is temperatelycontinental, with seasons of almost equal length.  Summers arepleasant, but winters inland are very cold and snowy.Health:  Medical care does not meet Western standards, facing asevere shortage of basic medical supplies, including disposableneedles, anesthetics, and antibiotics.  Bring personalmedication.  Sometimes heat and hot water are unavailable becauseof the occasional disruption of energy supplies.  Raw fruits andvegetables are safe to eat, but avoid drinking unpasteurized milkand tapwater.Transportation:  SAS, LOT, Malev, Swissair, Austrian Air,Lithuanian Airlines and Lufthansa provide service between VilniusAirport and European cities. Two trains depart daily for Warsawwithout crossing into Belarus, but take 12 hours.  A bus lineconnects Warsaw, Vilnius, Riga and Tallinn. Bus and taxi serviceswithin the capital and its environs are good. Taxis areinexpensive and available at stands or may be ordered by phone.Rental cars are available. Gasoline prices are reaching marketrates, and rationing is in effect.Telecommunications:  Improved telephone and telegraph servicesare readily available at standard international rates.  Vilniusis 7 hours ahead of Eastern Standard Time.Tourist attractions:  Over 550,000 tourists visited Lithuania in1989. As Europe's geographic epicenter, Vilnius is the leadingattraction, featuring beautiful Baroque churches and estates, 16museums, fortress towers, and historic medieval castles nearby inTrakai and Medininkai. The seaside resorts of Palanga and KursiuNerija are famous for clean beaches and natural sand dunes.Ethnographic parks and museums depicting Lithuanian life throughthe centuries abound, as do scenic national preserves.  Historicchurches and castles dating to Lithuania's Great Power era arealso readily accessible.Currency, Weights and Measures:  The national currency, thelitas, is convertible with major Western monies, but some vendorsstill accept Western cash for purchases.  Major credit cards canbe used primarily at large banks and Western hotels in Vilnius,but traveler's checks are rarely accepted yet.  Lithuania usesthe metric system.Further InformationThese titles are provided as a general indication of materialpublished on this country.  The Department of State does notendorse unofficial publications.Gordon, Harry.  The Shadow of Death: The Holocaust in Lithuania.Lexington:  University Press of Kentucky, 1991.Jurgela, Constantine R.  History of the Lithuanian Nation.  NewYork: Lithuanian Cultural Institute.Kantautas, Adam, and Kantautas, Filomena.  A LithuanianBibliography:  A Checklist of Books and Periodicals Held by theMajor Libraries of Canada and the United States.  Edmonton:University of Alberta Press, 1975; supplement 1980.Kaslas, Bronis J.  The U.S.S.R.-German Aggression AgainstLithuania.  New York:  Robert Speller & Sons, 1973.Koncius, Joseph B.  Vytautas the Great:  Grand Duke of Lithuania.Miami:  The Franklin Press, 1964.Olcott, Martha Brill.  "The Lithuanian Crisis."  Foreign Affairs(Summer 1990), 30-46.Olesczuk, Thomas A.  Political Justice in the Soviet Union:Dissent and Repression in Lithuania, 1967-1987.  New York:Columbia University Press/East European Monographs, 1988.Remeikis, Thomas.  Opposition to Soviet Rule in Lithuania,1945-1980.  Chicago:  Institute for Lithuanian Studies Press,1980.Rodgers, Mary M., and Streissguth, Tom, eds.  Lithuania:  Thenand Now.  Minneapolis:  Lerner Publications Company, 1992.Senn, Alfred Erich.  Lithuania Awakening Berkeley:  University ofCalifornia Press, 1990Silbajoris, Frank R.  "Lithuania: A Question of Identity."  CrossCurrents, 10 (1991), 31-38.Urdzins, Andrejs and Vilks, Andris, editors.  The Baltic States:A Reference Book.  Vilnius:  Encyclopedia Publishers, 1991.Williams, Roger, ed.  Baltic States:  Insight Guides.  Boston:Houghton-Mifflin Company, 1993.For information on economic trends, commercial development,production, trade regulations, and tariff rates, contact theInternational Trade Administration, U.S. Department of Commerce,Washington, DC 20230 at [phone], or any CommerceDepartment district office.  For information on businessopportunities, call the Commerce Department's East EuropeanBusiness Information Center at [phone].Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of  Public Communication -- Washington,DC -- August 1994 -- Managing Editor:  Peter A. Knecht -- Editor:Peter FreemanDepartment of State Publication 10196 -- Background Notes SeriesFor sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>BACKGROUND NOTES:  LITHUANIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEOfficial Name:Republic of LithuaniaPROFILEGeographyArea:  65,200 sq. km. (26,080 sq. miles); about the size of WestVirginia.Cities:  Capital--Vilnius (pop. 592,500).  Other cities--Kaunas(430,000); Klaipeda (206,000); Siauliai (148,000); Panevezys(129,000).Terrain:  Lithuania's fertile, central lowland plains areseparated by hilly uplands created by glacial drift.Climate:  With four distinct seasons, the climate is humidcontinental, with a moderating maritime influence from the BalticSea.PeopleNationality:  Noun and adjective--Lithuanian(s).Population:  3.8 million.Growth rate:  -0.4%.  Infant mortality--13/1,000.Ethnic groups:  Lithuanian 80%, Russians 10%, Poles 7%,Belorussians 1.7%, Ukrainians 1.2%.Religions:  Catholic (85%), Russian Orthodox.Languages:  Lithuanian (official).  Russian and Polish also arespoken by a large minority.Education:  Years compulsory--9.  Literacy--99%.Health:  Infant mortality rate--18/1,000.  Life expectancy--66years male, 76 female.   Work force (1.9 million):Industry--33%.  Science/Education/Culture--14%.Construction--13%.  Agriculture/Forestry--8%.  Health care--7%.Transportation/Communications--7%.  Trade and Government--10%.GovernmentType:  Parliamentary democracy.Constitution:  1992.Branches:  Executive--popularly elected president (chief ofstate); prime minister (head of government).  Legislative--Seimas(parliament--141 members, 4-year term); Judicial--Supreme Court.Administrative subdivisions:  11 cities, 44 rural districts.Principal political parties/coalitions:Democratic Labor Party (75 seats); Landowners Union (0 seats);Social Democrats (8 seats); Union of Poles (4 seats); "HomelandConcord" Sajudis (26 seats); Christian Democrats (17 seats);Nationalist Union (4 seats); Democratic Party (2 seats);Political Prisoners (1 seat); Independence Party (1 seat);Christian Democratic Union (1 seat); Greens (0 seats);Independent (1 seat).Suffrage:  Universal at 18.Flag:  Horizontal tricolor:  yellow, green, red.EconomyGDP:  $2.5 billion.Real GDP growth:  -17%.Per capita GDP (at 1992 prices):  $732.Natural resources:  Peat, potential for exploiting moderate oiland gas deposits offshore and on the coast.Agriculture/forestry (19% of GNP): Products--cattle, milk anddairy products, cereals, potatoes.Manufacturing (58% of GNP):  Products--Technological instruments,energy, textiles and footwear, machinery and spare parts,chemicals, food processing, wood/paper/pulp products.Trade:  Exports--$1 billion:  building materials (36%), services(15%), chemicals (14%), foodstuffs (14%), consumer goods (9%).Imports--$1 billion: chemicals (52%), heavy machinery (17%);fuels, metals, minerals (13%).  Major partners--Russia (45%),Belarus (13%), Germany (10%), Ukraine (6%).Exchange rate (July 1994):  3.8 litai=U.S. $1.PEOPLEThe name "Lietuva," or Lithuania, might be derived from the word"lietava," for a small river, or "lietus," meaning rain (or landof rain).  Lithuanian still retains the original sound system andmorphological peculiarities of the prototypal Indo-Europeantongue.  Between A.D. 400 and 600, the Lithuanian and Latvianlanguages split from the Eastern Baltic (Prussian) languagegroup, which subsequently became extinct.  The first knownwritten Lithuanian text dates from a hymnal translation in 1545.Written with the Latin alphabet, Lithuanian has been the officiallanguage of Lithuania again since 1989.  The Soviet era hadimposed the official use of Russian, so most Lithuanians speakRussian as a second language while the resident Slavic populacegenerally speaks Russian as a first language.Lithuanians are neither Slavic nor Germanic, although Polish andGermanic colonization and settlement in the 1300s left culturaland religious influences.  This highly literate society placesstrong emphasis upon education, which is free and compulsoryuntil age 16.  Most Lithuanians and ethnic Poles belong to theRoman Catholic Church, but a sizeable minority are RussianOrthodox.Enduring several border changes, Soviet deportations, a massacreof its Jewish population, and postwar German and Polishrepatriations, Lithuania has maintained a fairly stablepercentage of ethnic Lithuanians (from 84% in 1923 to 80% in1993).  Lithuania's citizenship law and constitution meetinternational standards, guaranteeing universal human and civilrights.HISTORYThe earliest evidence of inhabitants in present-day Lithuaniadates back 12,000 years.  About 5,000 years ago, a culture knownto archaeologists as "the cord-ware culture" spread over a vastregion of Eastern Europe, between the Baltic Sea and the VistulaRiver in the west and the Moscow-Kursk line in the east.  Mergingwith the indigenous population, they gave rise to the Balts, adistinct Indo-European ethnic group whose descendants are thepresent-day Lithuanian and Latvian nations and the now-extinctPrussians.The first written mention of Lithuania occurs in A.D. 1009,although many centuries earlier the Roman historian Tacitusreferred to the Lithuanians as excellent farmers.  Spurred by theexpansion into the Baltic lands of the Germanic monastic militaryorders (the Order of the Knights of the Sword and the TeutonicOrder), Duke Mindaugas united the lands inhabited by theLithuanians,  Samogitians, Yotvingians, and Couranians into theGrand Duchy of Lithuania (GDL) in the mid-13th century.  In 1251,Mindaugas adopted Catholicism and was crowned King of Lithuaniaon July 6, 1253; a decade later, civil war erupted upon hisassassination until a ruler named Vitenis defeated the TeutonicKnights and restored order.During 1316-41, Vitenis' brother and successor, Grand DukeGediminas, expanded the empire as far as Kiev against the Tartarsand Russians.  He twice attempted to adopt Christianity in orderto end the GDL's political and cultural isolation from WesternEurope.  To that purpose, he invited knights, merchants, andartisans to settle in Lithuania and wrote letters to Pope JohnXXII and European cities maintaining that the Teutonic Order'spurpose was to conquer lands rather than spread Christianity.Gediminas' dynasty ruled the GDL until 1572.  From the 1300sthrough the early 1400s, the Lithuanian state expanded eastward.During the rule of Grand Duke Algirdas (1345-77), Lithuaniaalmost doubled in size and achieved major victories over theTeutonic and Livonian Orders.  However, backed by the Pope andthe Catholic West European countries, the Orders intensifiedtheir aggression.During this period, Kestutis (Grand Duke in 1381-82)distinguished himself as the leader of the struggle against theTeutonic Order.  The ongoing struggle precipitated the 1385 KrevaUnion signed by Grand Duke Jogaila of Lithuania (ruled in 1377-81and 1382-92) and Jadwyga,  Queen of Poland. Upon their marriage,he became King of Poland.  A condition of the union wasLithuania's conversion to Christianity (in 1387).  Thisintensified Lithuania's economic and cultural development andoriented it toward the West.  The conversion invalidated claimsby the Teutonic Order and temporarily halted its wars againstLithuania.Lithuania's independence under the union with Poland was restoredby Grand Duke Vytautas.  During his rule (1392-1430) the GDLturned into one of the largest states in Europe, encompassingpresent-day Belarus, most of Ukraine, and the Smolensk region ofwestern Russia.  Led by Jogaila and Vytautas, the unitedPolish-Lithuanian army defeated the Teutonic Order in the Battleof Tannenberg (Gruenwald or Zalgiras) in 1410, terminating themedieval Germanic drive eastward.The 16th century witnessed a number of wars against the growingRussian state over the Slavic lands ruled by the GDL.  Coupledwith the need for an ally in those wars, the wish of the middleand petty gentry to obtain more rights already granted to thePolish feudal lords drew Lithuania closer to Poland.  The Unionof Lublin in 1569 united Poland and Lithuania into a commonwealthin which the highest power belonged to the Sejm of the nobilityand its elected King, who was also the Grand Duke of Lithuania.Mid-16th-century land reform strengthened serfdom and promotedthe development of agriculture, owing to the introduction of aregular three-field rotation system.The 16th century saw a rapid development of agriculture, growthof towns, spread of ideas of humanism and the Reformation, bookprinting, the emergence of Vilnius University in 1579, and theLithuanian Codes of Law (the Statutes of Lithuania), whichstimulated the development of culture both in Lithuania and inneighboring countries.In the 16th-18th century, wars against Russia and Sweden weakenedthe Polish-Lithuanian Republic.  The end of the 18th century sawthree divisions of the commonwealth by Russia, Prussia, andAustria; in 1795 most of Lithuania became part of the Russianempire.  Attempts to restore independence in the uprisings of1794, 1830-31, and 1863 were suppressed and followed by atightened police regime, increasing Russification, the closure ofVilnius University in 1832, and the 1864 ban on the printing ofLithuanian books in traditional Latin characters.Because of his proclamation of liberation and self-rule, manyLithuanians gratefully volunteered for the French army whenNapoleon occupied Kaunas in 1812 during his catastrophic invasionof Russia.  After the war, Russia imposed extra taxes on Catholiclandowners and enserfed an increasing number of peasants.A market economy slowly developed with the abolition of serfdomin 1861.  Lithuanian farmers grew stronger, contributing to anincrease in the number of intellectuals of peasant origin, which,in turn, led to the growth of a Lithuanian national movement.  InGerman-ruled Lithuania Minor (Konigsberg or Kalinin-grad),Lithuanian publications were printed in large numbers and thensmuggled into Russian-ruled Lithuania.  The most outstandingleaders of the national liberation movement were J. Basanaviciusand V. Kudirka.  The ban on the Lithuanian press finally waslifted in 1904.During World War I, the German army occupied Lithuania in 1915,and the occupation administration allowed a Lithuanian Conferenceto convene in Vilnius in September 1917.  The conference adopteda resolution demanding the restoration of an independentLithuanian state and elected the Lithuanian Council, a standingbody chaired by Antanas SmetonaIn 1919 and 1920, Lithuania fought what is known as its war forindependence against three factions:  the Red Army, which in 1919controlled territory ruled by a Bolshevist government headed byV. Kapsukas; the Polish army; and the Bermondt army, composed ofRussian and German troops under the command of the Germans.Lithuania failed to regain the Polish-occupied Vilnius region.In the Moscow Treaty of July 12, 1920, Russia recognizedLithuanian independence and renounced all previous claims to it.The Seimas (parliament) of Lithuania adopted a constitution onAugust 1, 1922, declaring Lithuania a parliamentary republic, andin 1923 Lithuania annexed the Klaipeda region, the northern partof Lithuania Minor.By then, most countries had recognized Lithuanian independence.After a military coup on December 17, 1926, Nationalist Partyleader Antanas Smetona became President and gradually introducedan authoritarian regime.Lithuania's borders posed its major foreign policy problem.Poland's occupation (1920) and annexation (1922) of the Vilniusregion strained bilateral relations, and in March 1939 Germanyforced Lithuania to surrender the Klaipeda region (after WorldWar II, the Nuremberg trials declared the treaty null and void).Radical land reform in 1922 considerably reduced the number ofestates, promoted the growth of small and middle farms andboosted agricultural production and exports, especially oflivestock.  In particular, light industry and agriculturesuccessfully adjusted to the new market situation and developednew structures.The interwar period gave birth to a comprehensive system ofeducation, with Lithuanian as the language of instruction and thedevelopment of the press, literature, music, arts, and theater.On August 23, 1939, the Molotov-Ribbentrop pact pulled Lithuaniaunder German domination until the Soviet-German agreement ofSeptember 28, 1939, brought Lithuania under Soviet domination.Soviet pressure and a complicated international situation forcedLithuania to sign an agreement with the U.S.S.R. on October 10,1939, by which Lithuania was given back the city of Vilnius andthe part of Vilnius region seized by the Red Army during theSoviet-Polish war; in return, some 20,000 Soviet soldiers weredeployed in Lithuania.On June 14, 1940, the Soviet Government issued an ultimatum toLithuania, demanding the formation of a new Lithuanian Governmentand permission to station additional Red Army troops. Lithuaniasuccumbed to the Soviet demand, and 100,000 Soviet troops movedinto the country the next day.Arriving in Kaunas, the Soviet Government's special envoy beganimplementing the plan for Lithuania's incorporation into theU.S.S.R.  On June 17, the alleged People's Government, headed byJ. Paleckis, was formed; one month later, parliamentary electionswere held, whereupon Lithuania was proclaimed a Soviet SocialistRepublic on August 3.Totalitarian rule was established, Sovietization of the economyand culture began, and Lithuanian state employees and publicfigures were arrested and exiled to Russia.  During the massdeportation campaign of June 14-18, 1941, about 7,400 families(12,600 people) were deported to Siberia without investigation ortrial; 3,600 people were imprisoned; and over 1,000 weremassacred.Lithuanian revolt against the U.S.S.R. soon followed the outbreakof the war against Germany in 1941.  Via Radio Kaunas on June 23,the rebels declared the restoration of Lithuania's independenceand actively operated a provisional government, without Germanrecognition, from June 24 to August 5.  Lithuania became part ofthe German occupational administrative unit of Ostland.  Peoplewere repressed and taken to forced labor camps in Germany.  TheNazis and local collaborators deprived all Lithuanian Jews oftheir civil rights and massacred about 200,000 of them.  Togetherwith Soviet partisans, supporters of independence put up aresistance movement to deflect Nazi recruitment of Lithuanians tothe German army.Forcing the Germans out of Lithuania by 1944, the Red Armyre-established control, and Sovietization continued with thearrival of communist party leaders to create a local partyadministration.  The mass deportation campaigns of 1941-52 exiled30,000 families to Siberia and other remote parts of the SovietUnion.  Official statistics state that over 120,000 people weredeported from Lithuania during this period, while Lithuaniansources estimate the number of political prisoners and deporteesat 300,000.In response to these events, thousands of resistance fightersparticipated in unsuccessful guerilla warfare against the Sovietregime from 1944 to 1953.In attempted integration and industrial development, Sovietauthorities encouraged immigration of other Soviet workers,especially Russians.Until mid-1988, all political, economical and cultural life wascontrolled by the Lithuanian Communist Party (LCP).  FirstSecretary Antanas Snieckus ruled the LCP during 1940-74.  TheLCP, in turn, was responsible to the Communist Party of theU.S.S.R.Lithuanians comprised only 18% of total party membership in 1947and continued to represent a minority until 1958; by 1986, theymade up 70% of the party's 197,000-strong body.  During theKhrushchev thaw in the 1950s, the leadership of the LCP acquiredlimited independence in decision-making.The political and economic crisis that began in the U.S.S.R. inthe mid-1980s also affected Lithuania, and Lithuanians as well asother Balts offered active support to Gorbachev's program ofsocial and political reforms.Under the leadership of intellectuals, the Lithuanian reformmovement Sajudis was formed in mid-1988 and declared a program ofdemocratic and national rights, winning nationwide popularity.On Sajudis' demand, the Lithuanian Supreme Soviet passedconstitutional amendments on the supremacy of Lithuanian lawsover Soviet legislation, annulled the 1940 decisions onproclaiming Lithuania a part of the U.S.S.R., legalized amulti-party system, and adopted a number of other importantdecisions.A large number of LCP members also supported the ideas ofSajudis, and with Sajudis support, Algirdas Brazauskas waselected First Secretary of the Central Committee of the LCP in1988.  In December 1989, the Brazauskas-led LCP split from theSoviet Union's Communist Party and became an independent party,renaming itself  the Lithuanian Democratic Labor Party in 1990.In 1990, Sajudis-backed candidates won the elections to theLithuanian Supreme Soviet.  On March 11, 1990, its chairman,Vytautas Landsbergis, proclaimed the restoration of Lithuanianindependence, formed a new cabinet of ministers headed byKazimiera Prunskiene, and adopted the Provisional Fundamental Lawof the state and a number of bylaws.The U.S.S.R. demanded revocation of  the act and began employingpolitical and economic sanctions against Lithuania as well asdemonstrating military force.  On January 10, 1991, Sovietauthorities seized the central publishing house and otherpremises in Vilnius and unsuccessfully attempted to overthrow theelected government by sponsoring a local "National SalvationCommittee."  Three days later the Soviets forcibly took over theTV tower, killing 14 civilians and injuring 700.During the national plebiscite on February 9, over 90% of thosewho took part in the voting (76% of all eligible voters) voted infavor of an independent, democratic Lithuania.  Led by thetenacious Landsbergis, Lithuania's leaders continued to seekWestern diplomatic recognition of its independence.  Sovietmilitary-security forces continued forced conscription, seizedbuildings, attacked customs posts, and sometimes killed customsand police officials.During the August 19 coup against Gorbachev, Soviet militarytroops took over several communications and other governmentfacilities in Vilnius and other cities but returned to theirbarracks when the coup failed.  The Lithuanian Government bannedthe Communist Party and ordered confiscation of its property.Despite Lithuania's achievement of complete independence,sizeable numbers of Russian forces remained on its territory.Withdrawal of those forces was one of Lithuania's top foreignpolicy priorities.  Lithuania and Russia signed an agreement onSeptember 8, 1992, calling for Russian troop withdrawals byAugust 31, 1993.   These have been completed in full, despiteunresolved issues such as the question of Russian militarytransit to and from the Kaliningrad enclave.GOVERNMENT AND POLITICAL CONDITIONSFor over a year after independence, political life was fetteredby an unclear delineation of powers between parliament andgovernment.  Political polarization increased, and namerecognition played a much more significant role in politics thanparty affiliation.  Sajudis remained part of an unofficial rulingcoalition with two other politically right-wing parties, butrivalries were heightened by personally divisive politicalattacks and bureaucratic gridlock.In an effort to reduce the size and recalcitrance of a governmentbureaucracy allegedly impeding reform, in April 1992 then-PrimeMinister Vagnorius unsuccessfully attempted to enact a measurepermit-ting the dismissal of former Communist Party members andof those unwilling to enforce government decrees.  Two deputiesand a minister unsuccessfully tendered resignations in support ofVagnorius, but the rest of the cabinet wrote a letter toPresident Landsbergis complaining of the Prime Minister'sconfrontational governing style.  Vagnorius, in turn,unsuccessfully submitted his resignation effective in May.With the failure of the May 23 referendum on establishing apermanent office of the president (based on the French model),President Landsbergis threatened to resign.  Right-wingparliamentarians boycotted legislative sessions to delay attemptsto form a quorum and successfully forestalled Vagnorius'resignation until mid-June, when a quorum passed a no-confidencemotion.  Aleksandras Abisala, another Landsbergis favorite,became the new Prime Minister.A constitution was approved by 53% of eligible voters (85% ofthose who actually voted) in an October 2, 1992, referendum.  Theresults of the October 25 and the November 15 runoff electionshanded the Democratic Labor Party (LDP), headed by formerCommunist Party boss Algirdas Brazauskas, a plurality of votesand a clear majority of parliamentary seats.Subsequent presidential elections on February 14, 1993, gaveBrazauskas victory over a non-LDP coalition led by independentcandidate Stasys Lozoraitis, Lithuania's former ambassador to theU.S.  Economic mismanagement and collapse, fueled by chronicenergy shortages and political factionalism, played a decisiverole in the election results.The Seimas (parliament), a unicameral legislative body, is thehighest organ of state authority.  It initiates and approveslegislation sponsored by the prime minister.  The prime ministerhas full responsibility and control over his cabinet.National SecurityLithuania's defense system is based upon the Swedish-Finnishconcept of a rapid response force composed of a mobilization baseand a small group of career professionals.  The defense ministryis responsible for combat forces, border control, customs, civildefense, search/rescue, and intelligence operations.  The armyconsists of three battalions of 850 troops each, and there is amandatory one-year active-duty draft period.  Alternative servicefor conscientious objectors is available.  The navy and coastguard use patrol boats and small Russian frigates for coastalsurveillance; the air force operates 30 planes used forreconnaissance and border patrol.The 5,400 border guards fall under the interior ministry'ssupervision and are responsible for border protection andpassport and customs duties and share responsibility with thenavy for smuggling/drug trafficking interdiction.  A specialsecurity department handles VIP protection and communicationssecurity.  The "SKAT," or national guard, consists of over 700professionals and 5,000 volunteers.Key Government OfficialsPresident--Algirdas BrazauskasPrime Minister--Adolfas SlezeviciusMinister of Foreign Affairs--Povilas GylysLithuania maintains an embassy in the United States at 2622 16thStreet, Washington, DC 20009 tel:  [phone].ECONOMYThe Soviet era brought Lithuania intensive industrialization andeconomic integration into the U.S.S.R., although the level oftechnology and state concern for environmental, health, and laborissues lagged far behind Western standards.  Urbanizationincreased from 39% in 1959 to 68% in 1989.  From 1949 to 1952,the Soviets abolished private ownership in agriculture,establishing collective and state farms.  Production declined anddid not reach pre-war levels until the early 1960s.  Theintensification of agricultural production through intensechemical use and mechanization eventually doubled production butcreated additional ecological problems.Industry is Lithuania's largest economic sector.  It is beingprivatized, and most small firms are now under private ownership.Large industries, accounting for the bulk of Lithuania's capitalinvestment, are still mainly under state control. Food-processingand light industries dominate, but furniture, footwear, andtextile manufacturing are important.Machine industries (tools, motors, computers, consumer durables)account for over one-third of the industrial work force butgenerally suffer from outdated plants and equipment.  Inagriculture, Lithuania produces cattle, hogs, and poultry forexport.  The principal crops are wheat, feed grains, and rye.Farm production dropped in 1992 as a result of difficulties withagricultural privatization and poor weather.The transportation infrastructure is adequate.  Lithuania has oneice-free seaport with ferry services to German ports.  There areoperating commercial airports with scheduled internationalservices at Vilnius and Kaunas.  The road system is good, butborder crossings may be difficult due to inadequate borderfacilities at checkpoints with Poland. Telecommunications haveimproved greatly since independence as a result of heavyinvestment.  The banking/financial sector is weak but improving.Lithuania had a slightly negative trade balance in 1993.  Itsmain trading partners are Eastern Europe and the New IndependentsStates (NIS) of the former Soviet Union.  The main categories ofimported products are energy, vehicles for transport andmachinery.  Exports consist mainly of machinery and foodproducts.  Trade with Western countries rose from 8% of the totalin 1992 to over 24% in 1993.Although gross domestic product (GDP) accounts comparable toWestern figures are not yet fully available, real GDP has beendeclining since 1990.  In 1992, it fell by about 40% andcontinued to fall this year, albeit at a less dramatic rate.Inflation is also high due to price deregulation and higher costsof imported energy and other inputs from the traditionalsuppliers in the NIS.  The consumer price index rose by 1,200% in1992, and monthly retail price increases in 1993 have beengenerally above 10%.  This year, however, there are indicationsof improvement.  The spread of private sector activity, notalways reflected in national accounts statistics, is creatingproductive jobs and boosting consumer spending.  Also, theintroduction in mid-1993 of a stable national currency hasstimulated investment.The government focuses its efforts on stabilizing the economy,taking measures to secure supplies of energy and other vitalinputs, providing a social safety net to alleviate the worstconsequences of the economic depression, and combating economiccrime.  It has enacted legislation providing a reasonablytransparent and favorable regulatory regime for privateinvestment.In 1993, Lithuania exported $16 million in goods to the U.S. andimported $57 million, much of the latter being agriculturalcommodities under concessional programs.  U.S.-Lithuanian firmsregistered 235 of 3,674 foreign joint ventures, and of $115million in total foreign investment, the U.S. holds a $35 millionshare.Over 55,000 private, personally owned companies now exist inLithuania, including an additional 19,000 corporations and 600foreign-controlled businesses.  To date, the state privatizationagency has privatized 3,800 companies.  State companies are nowauthorized to sell up to 50% of their shares for hard currencywithout cabinet approval, and many of more than 20 commercialbanks offer a full range of international banking services.Monthly inflation remains in the single digits, and the newcurrency remains stable.  Lithuania recorded a trade surplus in1992 and has discussed creation of six "free economic zones"offering tax, customs, and tariff breaks for foreign investors.</text>
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        <text>BACKGROUND NOTES:  LIBYAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJULY 1994Official Name:  Socialist People's Libyan Arab JamahiriyaPROFILEGeographyArea:  1.8 million sq. km. (700,000 sq. mi.).Cities:  Capital--Tripoli (pop. 1.5 mil-lion).  Other--Benghazi(800,000).Terrain:  Desert and semidesert; hills south of Tripoli and eastof Benghazi.Climate:  Mediterranean on coast; arid.PeopleNationality:  Noun and adjective--Libyan(s).Population (est.):  4.9 million.Annual growth rate (est.):  3%.Ethnic groups:  Berber and Arab 97%; some Greeks, Maltese,Italians, Egyptians, Pakistanis, Turks, Indians, and Tunisians.Religion:  97% Sunni Muslim.Language:   Arabic.Education:  Years compulsory--7.  Attendance--90%.Literacy--64%.Health:  Infant mortality rate--60/1,000.  Life expectancy--male,66 yrs.; female, 71 yrs.Work force:  1.3 million, 500,000 of whom are resident foreignworkers.  Industry--31%.   Services--27%.  Government--24%.Agriculture--18%.GovernmentType:  Islamic Arabic Socialist "Jamahiriya" or "state ofmasses."Independence:  December 24, 1951.  Revolution:  September 1,1969.Constitution:  December 11, 1969 (amended March 2,1977)--established popular congresses and peoples committees.Administrative divisions:  10 regions controlled by the centralgovernment; 25 municipalities (baladiya).Political system (political parties are banned):  Based on theoryof Maj. Gen. Mu'ammar al-Qadhafi, multilayered popular assemblies(people's congresses) with executive institutions (people'scommittees) are guided by political cadres (revolutionarycommittees).Suffrage:  Mandatory universal adult.EconomyGDP (1992 est.):  $27.7 billion.Per capita GDP:  $5,700.Natural resources:  Crude oil, natural gas, gypsum.Agriculture:  Products--wheat, barley, olives, citrus fruits,vegetables, dates, peanuts; 75% of Libya's food is imported.Industry:  Types--petroleum, food processing, textiles, cement,handicrafts.Trade:  Exports (1992)--$10 billion:  petroleum, peanuts, hides.Major markets--Italy, countries of the former Soviet Union,Germany, Spain, France, Belgium, Luxembourg, Turkey.Imports--$7.6 billion:  machinery, transport equipment, food,manufactured goods.  Major suppliers--Italy, countries of theformer Soviet Union, Germany, U.K., Japan.Exchange rate (October 1993):  1 Libyan dinar=U.S.  $3.15.PEOPLELibya has a small population in a large land area.  Populationdensity is about 50 persons per sq. km. (80/sq. mi.) in the twonorthern regions of Tripolitania and Cyrenaica, but falls to lessthan one person per sq. km. (1.6/sq. mi.) elsewhere.  Ninetypercent of the people live in less than 10% of the area,primarily along the coast.  More than half the population isurban, mostly concentrated in the two largest cities, Tripoli andBenghazi.  Fifty percent of the population is under age 15.Libyans are primarily a mixture of Arabs and Berbers.  SmallTebou and Touareg tribal groups in southern Libya are nomadic orsemi-nomadic.  Among foreign residents, the largest groups areEgyptians (estimates range from 400,000 to 1 million), Tunisians(40,000), Turks, Pakistanis, Indians, Sudanese, Moroccans,Jordanians, South Koreans, and Thais.  Other foreign residentsinclude 70,000 from Eastern Europe and 40,000 from WesternEurope.HISTORYFor most of their history, the peoples of Libya have beensubjected to varying degrees of foreign control.  ThePhoenicians, Carthaginians, Greeks, Romans, Vandals, andByzantines ruled all or parts of Libya.  Although the Greeks andRomans left impressive ruins at Cyrene, Leptis Magna, andSabratha, little else remains today to testify to the presence ofthese ancient cultures.The Arabs conquered Libya in the seventh century A.D.  In thefollowing centuries, most of the indigenous peoples adopted Islamand the Arabic language and culture.  The Ottoman Turks conqueredthe country in the 16th century.  Libya remained part of theirempire--although at times virtually autonomous--until Italyinvaded in 1911 and, after years of resistance, made Libya acolony.In 1934, Italy adopted the name "Libya" (used by the Greeks forall of North Africa, except Egypt) as the official name of thecolony, which consisted of the Provinces of Cyrenaica,Tripolitania, and Fezzan.  King Idris I, Emir of Cyrenaica, ledLibyan resistance to Italian occupation between the two WorldWars.  From 1943 to 1951, Tripolitania and Cyrenaica were underBritish administration; the French controlled Fezzan.  In 1944,Idris returned from exile in Cairo but declined to resumepermanent residence in Cyrenaica until the removal in 1947 ofsome aspects of foreign control.  Under the terms of the 1947peace treaty with the Allies, Italy relinquished all claims toLibya.On November 21, 1949, the UN General Assembly passed a resolutionstating that Libya should become independent before January 1,1952.  King Idris I represented Libya in the subsequent UNnegotiations.  When Libya declared its independence on December24, 1951, it was the first country to achieve independencethrough the United Nations.  Libya was proclaimed aconstitutional and a hereditary monarchy under King Idris.The discovery of significant oil reserves in 1959 and thesubsequent income from petroleum sales enabled what had been oneof the world's poorest countries to become extremely wealthy, asmeasured by per capita GDP.King Idris ruled the Kingdom of Libya until he was overthrown ina military-led coup on September 1, 1969.  The new regime, headedby the Revolutionary Command Council (RCC), abolished themonarchy and proclaimed the new Libyan Arab Republic.  Col.Mu'ammar al-Qadhafi emerged as leader of the RCC and eventuallyas de facto chief of state, a position he currently holds.  Hehas no official position.Seeking new directions, the RCC's motto became "freedom,socialism, and unity."  It pledged itself to remove backwardness,take an active role in the Palestinian Arab cause, promote Arabunity, and encourage domestic policies based on social justice,non-exploitation, and an equitable distribution of wealth.An early objective of the new government was withdrawal of allforeign military installations from Libya.  Followingnegotiations, British military installations at Tobruk and nearbyEl Adem were closed in March 1970, and U.S. facilities at WheelusAir Force Base near Tripoli were closed in June 1970.  That July,the Libyan Government ordered the expulsion of several thousandItalian residents.  By 1971, libraries and cultural centersoperated by foreign governments were ordered closed.During the years since the revolution, Libya claimed leadershipof Arab and African revolutionary forces and sought active rolesin various international organizations.  Late in the 1970s,Libyan embassies were redesignated as "people's bureaus," asQadhafi sought to portray Libyan foreign policy as an expressionof the popular will.  The people's bureaus, aided by Libyanreligious, political, educational, and business institutionsoverseas, exported Qadhafi's revolutionary philosophy abroad.GOVERNMENTFor seven years, the Government of Libya consisted of ColonelQadhafi and the Revolutionary Command Council.  On March 3, 1977,Qadhafi convened a General People's Congress (GPC) to proclaimthe establishment of "people's power," change the country's nameto the Socialist People's Libyan Arab Jamahiriya, and to vest,theoretically, primary authority in the GPC.Qadhafi remained the de facto chief of state and secretarygeneral of the GPC until 1980, when he gave up his office.  Hecontinues to control the Libyan Government through direct appealsto the masses, a pervasive security apparatus, and powerfulrevolutionary committees.Although he holds no formal office, Qadhafi exercises absolutepower with the assistance of a small group of trusted advisers,who include relatives from his home base in the Sirte region,which lies between the rival provinces of Tripolitania andCyrenaica.Before the 1969 constitution, Libya had a dual system of civiland religious courts.  The new constitution established theprimacy of Shari'a, or Islamic law, unifying the two systems.Civil laws now must conform to Shari'a.The Libyan court system consists of four ascending levels.  TheGPC appoints justices to the Supreme Court.  Military courts andspecial "revolutionary courts" operate outside the judicialsystem.POLITICAL CONDITIONSAfter the revolution, Qadhafi took increasing control of thegovernment, but he also attempted to achieve greater popularparticipation in local government.  In 1973, he announced thestart of a "cultural revolution" in schools, businesses,industries, and public institutions to oversee administration ofthose organizations in the public interest.  The March 1977establishment of "people's power"--with mandatory popularparticipation in the selection of representatives to the GPC--wasthe culmination of this process.The GPC is the legislative forum that interacts with the GeneralPeople's Committee, whose members are secretaries of Libyanministries.  It serves as the intermediary between the masses andthe leadership and is composed of the secretariats of some 600local "basic popular congresses."The GPC secretariat and the cabinet secretaries are appointed bythe GPC secretary general and confirmed by the annual GPCcongress.  These cabinet secretaries are responsible for theroutine operation of their ministries, but real authority isexercised by Qadhafi directly or through manipulation of thepeoples and revolutionary committees.In the 1980s, competition between the official Libyan Governmentand military hierarchies and the revolutionary committees wasgrowing.  An abortive coup attempt in May 1984, apparentlymounted by Libyan exiles with internal support, led to ashort-lived reign of terror in which thousands were imprisonedand interrogated.  An unknown number were executed.  Qadhafi usedthe revolutionary committees to search out alleged internalopponents following the coup attempt, thereby accelerating therise of more radical elements inside the Libyan power hierarchy.In 1988, faced with rising public dissatisfaction with shortagesin consumer goods and setbacks in Libya's war with Chad, Qadhafibegan to curb the power of the revolutionary committees and toinstitute some domestic reforms.  The regime released manypolitical prisoners and eased restrictions on foreign travel byLibyans.  Private businesses were again permitted to operate.Since the late 1980s, Qadhafi has pursued a harsh anti-Islamicfundamentalist policy domestically, presumably viewingfundamentalism as a potential rallying point for opponents of theregime.  Ministerial positions and military commanders are alsofrequently shuffled to diffuse potential threats to Qadhafi'sauthority.  More recently, the government has sought to counterpopular discontent over deteriorating economic conditions withappeals to nationalism in the face of international sanctions.Despite these measures, internal dissent continues.  Qadhafi'ssecurity forces launched a pre-emptive strike at alleged coupplotters in the military and among the Warfallah tribe in October1993.  Widespread arrests and government reshufflings followed,accompanied by public "confessions" from regime opponents andallegations of torture and executions.Principal Government OfficialsDe facto Head of State--Mu'ammar al-QadhafiSecretary, Foreign Liaison Office--'Umar Mustafa al-MuntassirECONOMYThe General People's Congress continued to pursue the goals ofthe ruling Revolutionary Command Council soon after the 1984 coupattempt.  These goals included a more equitable distribution ofincome and services, greater government control of the economy,and independence from foreign influence.  Libya also dedicatedincreasing resources to showcase items such as major irrigationprojects, overseas interventions, and a military buildup.In 1992-93, the Libyan Government embarked on a gradual economicliberalization program.  Recent developments include the issuanceof regulations governing the privatization of selected publicenterprises and the lifting of restrictions on private wholesaletrade.  Its economy remains dependent upon revenues from exportedcrude oil.  Currently, oil production is 1.5 million barrels perday.During the 1970s, Libyan Government expenditures did not keeppace with the rapid rise in oil revenues.  The resulting surplusled to the growth of large central bank foreign exchangereserves.  At their peak, these reached $14 billion in 1981, butOPEC's production restraints and softening oil prices led torevenue shortfalls, which have resulted recently in an annualdrawdown of foreign exchange reserves by about $2 billion peryear.  Reserves dropped to $3.5 billion in 1993.Since 1981, fiscal difficulties associated with declining oilrevenues combined with the effects of various socialist schemeshave hurt merchants and other business professionals.  AlthoughLibyans have experienced a dramatic rise in the standard ofliving during the past 20 years, more recent economic austeritymeasures as well as tighter internal security controls havecaused a general deterioration in the quality of life for manyLibyans.  Nonetheless, distribution of national wealth remainsmore equitable in Libya than in many other developing countries.Libya's major trading partners are Italy, Germany, Spain, France,and countries of the former Soviet Union.  In response to Libyansupport of terrorism, the U.S. Government prohibited theimportation of Libyan crude oil into the United States in March1982 and imposed strict controls on U.S.-origin goods intendedfor export to Libya.  A total ban on trade with Libya went intoeffect in January 1986.Although agriculture is the second-largest sector in the economy,Libya is self-sufficient in few foods.  Higher incomes and agrowing population have caused food consumption to rise.Domestic food production meets only about 25% of demand.  Along-term objective is to become self-sufficient in agriculture,although the scarcity of water is a serious obstacle.  Libya isundertaking a multi-billion-dollar project to tap water resourcesdeep under the Sahara to meet coastal population water needs inthe 1990s.  However, technical and administrative problems arehindering progress.FOREIGN RELATIONSSince 1969, Qadhafi has determined Libya's foreign policy.  Hisprincipal foreign policy goals have been Arab unity, eliminationof Israel, advancement of Islam, support for Palestinians,elimination of outside--particularly Western--influence in theMiddle East and Africa, and support for a range of"revolutionary" causes.After the 1969 coup, Qadhafi closed American and British bases onLibyan territory and partially nationalized all foreign oil andcommercial interests in Libya.  He played a key role inintroducing oil as a political weapon for challenging the West.He hoped that an oil price rise and embargo in 1973 wouldpersuade the West--especially the United States--to end supportfor Israel.  Qadhafi rejected both Soviet communism and Westerncapitalism, seeking an allegedly middle course.Libya's relationship with the former Soviet Union involvedmassive Libyan arms purchases from the Soviet bloc and thepresence of thousands of its advisers.  Libya's use--and heavyloss--of Soviet-supplied weaponry in its war with Chad was anotable breach of an apparent Soviet-Libyan understanding not touse the weapons for activities inconsistent with Sovietobjectives.  As a result, Soviet-Libyan relations reached a nadirin mid-1987.Since the fall of the Warsaw Pact and the Soviet Union, Libya hasconcentrated upon expanding diplomatic ties with Third Worldcountries and increasing its commercial links with Europe andEast Asia.  Libya recently has made substantial investments ininternational financial institutions and petroleum refining andmarketing operations.  These foreign investments, however, havebeen the target of varying enforcement actions under UN SecurityCouncil Resolution 883, which imposed a limited freeze on Libyanassets abroad.Merger Attempts with NeighborsIn pursuit of his goal of Arab unity, Qadhafi has triedunsuccessfully at various times to merge with Egypt, Sudan,Tunisia, Algeria, and Syria.  In August 1981, he signed a treatywith Ethiopia and the then-People's Democratic Republic of Yemen(South Yemen) that attempted to provide a framework forcoordinating the foreign policies of the three countries.  In1984, Libya concluded a treaty of union with Morocco.  Moroccoabrogated this treaty in August 1986.  In 1987, Libya once againproposed a bilateral union, with Algeria.  Algeria then called onLibya to join a 1983 tripartite pact linking Algeria, Tunisia,and Mauritania.  Qadhafi rejected this offer.  Libya and Tunisiasubsequently re-stored diplomatic relations in December 1987, asdid Egypt and Libya in 1989.  Libya also joined in the 1988establishment of the Arab Maghreb Union that linked Mauritania,Morocco, Algeria, and Tunisia, in addition to Libya, in agrouping modeled on the European Union.TerrorismIn addition to using oil as leverage in his foreign policy,Qadhafi's principal tactics have been destabilization of weakergovernments and terrorism.  Libya continues to harbor and financegroups all over the world that share Qadhafi's revolutionary andanti-Western views, including the Japanese Red Army and suchradical Muslim groups as the Popular Front for the Liberation ofPalestine-General Command and Abu Nidal's Fatah RevolutionaryCouncil.  Its support for terrorist activity against U.S.citizens and interests resulted in U.S. air strikes against Libyain April 1986; the precipitating event for this U.S. action wasthe bombing of a Berlin discotheque which killed an Americanserviceman and for which evidence of Libyan complicity had beendiscovered.In October 1987, a Libyan arms shipment was intercepted on itsway to the Irish Republican Army.  In 1988, operatives of the AbuNidal Organization, which is headquartered in Libya, launched agrenade attack on a Khartoum hotel and sprayed a Greek passengerferry with machine-gun fire.  Later that year, two Libyanintelligence agents planted an explosive device in Malta on theflight connecting with Pan Am flight 103 in Germany which laterexploded over Lockerbie, Scotland, killing 259 passengers andcrew and 11 people on the ground.  In September 1989, Libyamasterminded the bombing of UTA flight 772 over Niger, killingall 171 persons aboard.Libyan terrorism also has targeted anti-Qadhafi dissidentsoverseas.  Qadhafi's public calls for the deaths of Libyanopponents abroad during the latter half of 1993 raised strongsuspicions of his regime's involvement in the disappearance ofprominent Libyan dissident Mansour Kikhya from Cairo in December1993.SubversionWhile supporting terrorist groups, Qadhafi also has attempted toundermine other Arab and African states by supporting coups,funding and training opposition political parties and guerrillagroups, and plotting assassinations of rival leaders.  He alsohas sought involvement in Asia and Latin America through supportfor various subversive groups.  Use of such methods has strainedLibyan relations with many nations.Qadhafi's foreign interventions included a bid to prop up formerUgandan dictator Idi Amin in 1979; incursions and intermittentwar with Chad throughout the 1980s; continued claims on territoryin Chad, Niger, and Algeria; and alleged support of Islamicfundamentalist groups in Sudan, Algeria, and Egypt.  Libyawithdrew its forces from the disputed Aouzou Strip in mid-1994,after the International Court of Justice ruled Libya's presencean illegal occupation of Chadian territory.U.S.-LIBYAN RELATIONSThe United States supported the UN resolution providing forLibyan independence in 1951 and raised the status of its officeat Tripoli from a consulate general to a legation.  Libya openeda legation in Washington, DC, in 1954.  Both countriessubsequently raised their missions to embassy level.After Qadhafi's 1969 coup, U.S.-Libyan relations becameincreasingly strained because of Libya's foreign policiessupporting international terrorism and subversion againstmoderate Arab and African governments.  In 1972, the UnitedStates withdrew its ambassador.  Export controls on militaryequipment and civil aircraft were imposed during the 1970s, andU.S. embassy staff members were withdrawn from Tripoli after amob attacked and set fire to the embassy in December 1979.  TheU.S. Government declared Libya a "state sponsor of terrorism" onDecember 29, 1979.In May 1981, the U.S. Government closed the Libyan "people'sbureau" (embassy) in Washington, DC, and expelled the Libyanstaff in response to a general pattern of conduct by the people'sbureau contrary to internationally accepted standards ofdiplomatic behavior.In August 1981, two Libyan jets fired on U.S. aircraftparticipating in a routine naval exercise over internationalwaters of the Mediterranean claimed by Libya.  The U.S. planesreturned fire and shot down the attacking Libyan aircraft.  InDecember 1981, the State Department invalidated U.S. passportsfor travel to Libya and, for purposes of safety, advised all U.S.citizens in Libya to leave.  In March 1982, the U.S. Governmentprohibited imports of Libyan crude oil into the United States andexpanded the controls on U.S.-origin goods intended for export toLibya.  Licenses were required for all transactions, except foodand medicine.  In March 1984, U.S. export controls were expandedto prohibit future exports to the Ras al-Enf petrochemicalcomplex.  In April 1985, all Export-Import Bank financing wasprohibited.Due to Libya's continuing support for terrorism, the UnitedStates adopted additional economic sanctions against Libya inJanuary 1986, including a total ban on direct import and exporttrade, commercial contracts, and travel-related activities.  Inaddition, Libyan Government assets in the United States werefrozen.  When evidence of Libyan complicity was discovered in theBerlin discotheque terrorist bombing that killed an Americanserviceman, the United States responded by launching an aerialbombing attack against targets near Tripoli and Benghazi in April1986.  Since then, the United States has maintained its trade andtravel embargoes and has sought to bring diplomatic and economicpressure to bear against Libya.In 1988, Libya was found to be in the process of constructing achemical weapons plant at Rabta, a plant which is now the largestsuch facility in the Third World.  Libya is currentlyconstructing another chemical weapons production facility atTarhunah.  Libya's support for terrorism and its past regionalaggressions made this development a matter of major concern tothe United States.  In cooperation with like-minded countries,the United States has since sought to bring a halt to the foreigntechnical assistance deemed essential to the completion of thisfacility.In 1991, two Libyan intelligence agents were indicted by federalprosecutors in the U.S. and Scotland for their involvement in theDecember 1988 bombing of Pan Am flight 103.  In January 1992, theUN Security Council approved Resolution 731 demanding that Libyasurrender the suspects, cooperate with the Pan Am 103 and UTA 772investigations, pay compensation to the victims' families, andcease all support for terrorism.  Libya's refusal to comply ledto the approval of UNSC Resolution 748 on March 31, 1992,imposing sanctions designed to bring about Libyan compliance.Continued Libyan defiance led to passage of UNSC Resolution883--a limited assets freeze and an embargo on selected oilequipment--in November 1993.TRAVEL ADVISORYSince December 1981, U.S. passports have been declared invalidfor travel to, in, or through Libya, unless specificallyvalidated for such travel by the Department of State.Unauthorized use of a U.S. passport for travel to Libya issubject to criminal prosecution under Section 1544 of Title 18,United States Code.Persons seeking passport validations or further informationshould contact the Deputy Assistant Secretary of State forPassport Services, Room 300, 1425 K Street, NW, Washington, DC20522-1705; or, if abroad, the nearest U.S. embassy or consulate.The U.S. Government maintains no diplomatic or consularrepresentation in Libya, and, therefore, cannot provideprotective services to American citizens.  Very limited servicesare available through the embassy of Belgium in Tripoli, whichacts as the U.S. protecting power in Libya.  Further informationis available from the Bureau of Consular Affairs, U.S. Departmentof State.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of Public Communication -- Washington,DC -- July 1994 Managing Editor:  Peter A. Knecht -- Editor:Peter FreemanDepartment of State Publication 7815 --  Background Notes SeriesFor sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  LESOTHOOFFICIAL NAME:  KINGDOM OF LESOTHOPROFILEGeographyArea:  30,350 sq. km. (11,718 sq. mi.); about the size of Maryland.Cities:  Capital-Maseru (pop. 109,382).  Other cities-Teyateyaneng(14,251), Leribe (9,595), Mafeteng (12,667), Mohale's Hoek (8,526).Terrain:  High veld, plateau and mountains.  Climate:  Temperate;summers hot, winters cool to cold; humidity generally low andevenings cool year round.  Rainy season in summer, winters dry.PeopleNationality:  Noun-Mosotho (sing.); Basotho (pl.) Adjective-Basotho.Population (1988):  1,666,000.  Annual growth rate (1987):  2.7%.Ethnic groups:  Basotho 99.7%; Europeans 1,700; Asians, 900.Religions:  Roman Catholic (majority), Lesotho Evangelical, Anglican,other denominations.  Languages:  English, Sesotho.  Education:Years compulsory-None.  Literacy-59%.  Health:  Infant mortality rate(1988)-83/1000.  Life expectancy-60 years.  Work force-650,000.Farming-40%.  Manufacturing and services-6%.  Government-4%.Migrant workers-27%.  Unemployed-23%.GovernmentType:  Military regime and constitutional monarchy with king as headof state.  Constitution:  Suspended in 1970.  Independence:  October4, 1966.Branches:  Executive-Military council/civilian cabinet.  Legislative-Inearly 1986, by decree of the ruling military council, legislative (andexecutive) power was concentrated in the person of the king, subjectto the advice of the military council.  Judicial-Court of Appeals, HighCourt, Magistrate Courts, Customary Courts.Administrative subdivisions:  10 districts.Political parties:  By decree of the ruling military council in early 1986,political activities, but not political parties, were banned indefinitely;Basotho National Party (BNP), Basutoland Congress Party (BCP),Marematlou Freedom Party (MFP), United Democratic Party (UDP).Suffrage:  Married men and women of all ages, singles over 21.  Nonational elections since 1970.Central government budget (1988-89):  $226.8 million.Public order, safety, and defense (1988-89):  18% of governmentbudget.Flag:  Diagonal fields of green and blue with a traditional Basothoshield on a diagonal field of white occupying remaining half of flag.EconomyGNP (1988):  $739 million.  Annual growth rate (1987-88):  8.5%.  Percapita GNP:  $446.  Avg. inflation rate (1988):  11.4%.Natural resources:  Some diamonds and other minerals, water,agricultural and grazing land.Agriculture (20% of GDP):  Products-corn, wheat sorghum, peas,beans, asparagus, meat, wool, mohair.  Arable land-13%.Industry (14.6% of GDP):  Types-Processing of agricultural products,handicrafts, cottage industry weaving, apparel manufacture (clothing,shoes etc.), primarily for export.Trade (1988):  Exports-$60 million:  wool, mohair, peas, beans,asparagus.  Major markets-South Africa (approximately 85%),Europe, US.  Imports-$500 million:  agricultural commodities andproducts, manufactured goods of all types, machinery.  Majorsuppliers-South Africa (approximately 95%), Europe.Fiscal year:  April 1-March 31.Economic aid received (1987):  $74 million.  Primary donors-US,EEC, FRG, UK, World Bank, UNDP, Ireland.  US AID-$9.6 million.Membership in International OrganizationsUN and some of its specialized and related agencies, including theWorld Bank, International Monetary Fund (IMF), General Agreementon Tariffs and Trade (GATT); Commonwealth, NonalignedMovement, Organization of African Unity (OAU), the Group of 77.Regional groups: Southern African Development CoordinationConference (SADCC), the Southern African Customs Union (SACU),the Preferential Trade Area (PTA) of East and Southern Africa States,and the Rand Monetary Area (RMA).HISTORYBasutoland (now Lesotho-pronounced le-SOO-too) was sparselypopulated by bushmen (Qhuaique) until the end of the 16th century.Between the 16th and 19th centuries, refugees from surroundingareas gradually formed the Basotho ethnic group.In 1818, Moshoeshoe (pronounced mo-SHWAY-shway) I,consolidated various Basotho groupings and became their king.During his reign (1823-1870), a series of wars with South Africa(1856-68) resulted in the loss of extensive lands, now known as the"Lost Territory."  Moshoeshoe appealed to Queen Victoria forassistance, and in 1868, the country was placed under Britishprotection.In 1955, the Basutoland Council asked that it be empowered tolegislate on internal affairs, and in 1959, a new constitution gaveBasutoland its first elected legislature.  General elections withuniversal adult suffrage were held in April 1965.  The BasutolandNational Party (BNP) won 31 of 60 seats in the legislature; theBasutoland Congress Party (BCP), 25 seats; and the MaramatlouFreedom Party (MFP), 4 seats.  On October 4, 1966, the newKingdom of Lesotho attained full independence as a constitutionalmonarchy with an elected bicameral parliament consisting of a60-seat National Assembly and a 33-seat Senate.Early results of the January 27, 1970, election-the first held afterindependence-indicated that the ruling BNP might lose control.Citing election irregularities, Prime Minister Leabua Jonathan nullifiedthe elections, declared a national state of emergency, suspended theconstitution, and dissolved the parliament.  An appointed interimnational assembly was established in 1973.  With an overwhelmingprogovernment majority, it was largely the instrument of the BNP, ledby Prime Minister Jonathan.  Opposition to the government producedviolence and internal disorder which, in 1986, led to a militarytakeover.  In addition to the Jonathan regime's alienation of Basothopower brokers and the population, South Africa had virtually closedthe land borders because of concerns over African NationalCongress (ANC) cross-border operations and was publiclythreatening more direct action if the Jonathan government did notroot out ANC presence in Lesotho.Under a January 1986 Military Council decree, the state executiveand legislative powers were given to the king.  He was to act on theadvice of the Military Council, a self-appointed group of the leadersof the Royal Lesotho Defense Force (RLDF) who carried out the1986 coup.  All political party activity was suspended.  A militarygovernment chaired by Justin Lekhanya ruled Lesotho incoordination with King Moshoeshoe II and a civilian cabinetappointed by the king.In February 1990, King Moshoeshoe II was stripped of his executiveand legislative powers and exiled by Lekhanya, and some membersof the Military Council and the Council of Ministers were purged.Lekhanya accused those involved of undermining discipline within thearmed forces, subverting existing authority, and causing an impasseon foreign policy which had been damaging to Lesotho's imageabroad.  Lekhanya announced the establishment of a NationalConstituent Assembly to formulate a new constitution for Lesothowith the aim of returning the country to democratic, civilian rule byJune 1992.After attempts at negotiating the king's return to Lesotho failed,Lekhanya announced in November 1990 that a new law wouldhenceforth provide that the king shall be a constitutional monarchand head of state and that King Moshoeshoe had ceased being kingand head of state.  Later that month, Moshoeshoe's son wasinstalled as King Letsie III.GOVERNMENT AND POLITICAL CONDITIONSLesotho is ruled by a military council and has a military/civiliancabinet.  The Military Council sets broad outlines of governmentpolicy and overseas policy implementation carried out by the cabinet(Council of Ministers).  Political party activity is still suspended, andthere have been no national elections since 1970.  By the 1986Military Council decree, legislative and executive power had beenconcentrated in the person of the king, but then-King MoshoeshoeII was stripped of his powers in February 1990.  The cabinet,consisting of civilians and several senior RLDF officers, had beenappointed by the king.In February 1990, the military government established a task forceto work out the details of democratizing the country.  The task forcerecommended the establishment of a 109-member NationalConstituent Assembly representing a broad range of social andpolitical opinion.  Development of a new national constitutionacceptable to the majority of the Basotho people is the major task ofthe assembly, but it was also charged with reviewing the position andpowers of the king, the status of the traditional chieftainships, andthe role of the army and political parties under a new constitution.The National Constituent Assembly convened in June 1990.For administrative purposes, Lesotho is divided into 10 districts, eachheaded by a district secretary and a district military officer appointedby the central government and the RLDF, respectively.Lesotho's highest court is the Court of Appeals, which exerciseslimited appellate jurisdiction.  The High Court has unlimited originaljurisdiction over civil and criminal matters.  Subordinate courtsadminister statute law, and paramount chiefs administer customarytribal laws.Principal Government OfficialsHead of State-King Letsie IIIHead of Government and Chairman of the Military Council andCouncil of Ministers-Maj. Gen. Justin M. LekhanyaMilitary Council Members-Brig. Benedict M. Lerotholi, Col. Jacob M.Jane, Col. Elias P. Ramaema, Lt. Col. Ernest M. Mokete, Col.Michael N. Ts'otetsiAmbassador to the United States-William Thabo Van TonderPermanent Representative and Ambassador to the UnitedNations-M.P. PhoofoloLesotho maintains an embassy in the United States at 2511Massachusetts Ave. NW, Washington, DC 20008 (Tel. [phone]).Lesotho's mission to the United Nations is at 204 East 39th Street,NY, NY 10016 (Tel. [phone]).DEFENSEThe Royal Lesotho Defense Force (RLDF) is the primary armedservice in the country.  Made up of about 2,000officers and enlisted men and women, the RLDF is administrativelybased in the capital city Maseru with smaller tactical bases scatteredthroughout the country.  The RLDF has six separate light infantrycompanies and a small composite air squadron.  The RLDF'sprincipal mission includes defense of Lesotho's borders andantiterrorist activities.  It also has responsibility for crime prevention(along with the nearly 2,000 members of the Royal Lesotho MountedPolice Force) and civic action programs.The United States has an active International Military Education andTraining (IMET) program with the government of Lesotho.  The IMETprogram sends three or four RLDF officers each year to the UnitedStates in various military specialties.  A three-man British armytraining team is assigned to Lesotho and provides a range ofin-country training.ECONOMYLesotho's economy is based on agriculture, livestock, manufacturing,and earnings of laborers employed in South Africa.  The people ofLesotho live primarily in the western lowlands, the main agriculturalzone.  Much of the work force is employed from 3 to 9 months ayear in South Africa in mining, farming, or industry.  At any giventime, an estimated 200,000 workers are absent from Lesotho.Remittances from workers in South Africa totaled about $235 millionin 1988.About 360,000 hectares (900,000 acres-13%) of the country arearable.  Grazing rights are communal, but arable land is allocated toindividuals and families by village and district chiefs.  Traditionally,most land was held in trust for the Basotho by the king and couldnot be given away.  Under the 1979 Land Tenure Act, however, theking could grant 99-year leases.  Almost all agricultural produce isconsumed domestically, and substantial amounts of food areimported from South Africa.The Lesotho National Development Corporation encourages foreigninvestment.  The corporation has been successful in stimulating theestablishment of light industries and in attracting investment in touristfacilities, including building a $12 million hotel.  Tourism is anattractive development option because of the country's scenery andhealthful, pleasant climate.The three-phase Highlands Water Project agreement signed in late1986 between the governments of South Africa and Lesothorepresents one of the greatest investment and developmentopportunities for Lesotho in the near future.  Royalties, beginning in1995 at about $12 million and tripling in the third phase, could bedirected toward substantially raising the per capita GDP.  The projectis a 30-year, $2 billion plan to divert water from the headwaters ofseveral major river systems in Lesotho to the Witswatersrand regionof South Africa.  Spin-off activities in road building, rural agriculture,electricity generation, fishing, and tourism will also be made possible.The project will be financed by international lenders, including theWorld Bank, as well as by South African and Lesotho capital.Lesotho has received economic assistance from a number ofsources since independence, including the United States, the WorldBank, the United Kingdom, the European Economic Community,Canada, Denmark, Sweden, Ireland, the Federal Republic ofGermany, and South Africa.  Several UN specialized agencies andprograms are active in Lesotho, including the UN DevelopmentProgram, the World Health Organization, the Food and AgricultureOrganization, and the UN High Commissioner for Refugees.Lesotho has about 4,000 kilometers (2,400 mi) of paved, gravel, andearth roads and vehicle tracks.  A 92-kilometer (57-mi.) road alongLesotho's southern border was built with the help of the US Agencyfor International Development (AID).  Lesotho has an extensivenetwork of horse trails for areas inaccessible to motor vehicles.The country is linked with South Africa by a short rail line fromMaseru to Marseilles on the Bloemfontein-Bethlehem line.Elsewhere, the railway runs close to the territorial boundary, andgoods can be transported by road to and from the nearest station inthe Orange Free State.  Lesotho's traditional trade routes werecomplicated by the October 1976 South Africa-sponsored"independence" of the Transkei, which neither Lesotho nor any otherUN member recognizes and whose territory Lesotho does not wishto transit.Lesotho depends heavily on South Africa for trade as well asemployment.  Lesotho, Botswana, Swaziland, Namibia, and SouthAfrica belong to a customs union.  No tariffs exist on most goodsmoving among them.  South Africa levies and collects most of thecustoms, sales, and excise duties for the four countries, and it paysa share determined by a formula of total customs collections to theother three countries.  Imports from outside the customs union,regardless of ultimate destination, are subject to the same tariff rates.The customs agreement was renegotiated in 1969, and Botswana,Lesotho, and Swaziland have substantially increased their share ofthe customs revenues.  In 1987-88, Lesotho received approximately54% of its total government receipts as tariff revenues from thecustoms union.Lesotho, Swaziland, Namibia, and South Africa also form a commoncurrency and exchange control area known as the Rand MonetaryArea which used the South African rand as common currency.Lesotho introduced its own currency in 1980; on a par with the SouthAfrican rand is the loti (plural: maloti), and 100 lisente equal one loti.FOREIGN RELATIONSLesotho's geographic location and economic dependence on SouthAfrica make it very vulnerable to political and economicdevelopments there.  Following Lesotho's January 1986 coup, thenew government indicated its willingness to be more sensitive toSouth African security concerns and has actively sought UN HighCommissioner for Refugees and third-country assistance in providingresettlement for South African refugees.  Although sharply critical ofapartheid, the government of Lesotho cannot avoid vital economicand commercial ties with its neighbor and depends on it for transit,employment opportunities, and development cooperation.The current regime has sought a more cooperative relationship withPretoria.  One result of this improved bilateral atmosphere was theestablishment of trade missions in the two countries.  Another resultwas the signature of an agreement in 1986 to proceed with thelong-planned Highlands Water Project.Lesotho maintains very close relations with the United States, theUnited Kingdom, the Federal Republic of Germany, and otherWestern countries.  It also has excellent ties with a number of Africanstates and is particularly close to Nigeria.  In 1983, Lesotho beganto diversify its international contacts.  Following former Prime MinisterJonathan's May 1983 visit to Eastern Europe and Asia, the SovietUnion, the People's Republic of China (PRC), and North Korea werepermitted to open embassies in Maseru.  Formal diplomatic relationswith most East European countries have since been established,although only the Soviet Union has opened a resident diplomaticmission in Lesotho.Following the 1986 coup, the North Korean embassy was closed,and regular diplomatic contact was suspended.  In 1990, Lesothobroke relations with the PRC and reestablished relations with Taiwan.Other recent foreign policy initiatives have included recognition ofPalestine as a state, the establishment of relations with WesternSahara and Namibia, and strong public support for negotiations inSouth Africa aimed at creating a new, post-apartheid society.Lesotho remains active in the United Nations, Organization of AfricanUnity, the Nonaligned Movement, and other internationalorganizations.  It also belongs to the Southern African DevelopmentCoordination Conference, whose purpose is to lessen thedependence of its members on neighboring South Africa, and to thePreferential Trade Area, an association of East and southern Africanstates.US-LESOTHO RELATIONSThe United States has friendly relations with Lesotho and encouragesthe country's political, economic, and social development as anonracial, democratic, independent nation.  Estimated US assistanceto Lesotho for fiscal year 1989 was:  AID, $9.6 million; PL 480 (FoodFor Peace), $5.2 million; and Peace Corps, 100 volunteers.AID programs in Lesotho have focused principally on agriculture,primary education, child survival, family planning and private sectordevelopment.  Peace Corps volunteers work in secondary schooleducation-especially in mathematics and science curriculumdevelopment-vocational training, teacher training, horticulture, animalhusbandry, health education, community and rural development, andemployment generation projects.Principal US OfficialsAmbassador-VacantDeputy Chief of Mission-Steven WagenseilAdministrative Officer-Mike St. ClairConsular Officer-Alan HutchingsPublic Affairs Office (USIS)-Douglas Ebner (Tel: 312335)Director, AID-Furman Towery (Tel: 313954)Director, Peace Corps-Kim Ward (Tel: 313871)The mailing address of the US Embassy is PO Box 333, Maseru 100,Lesotho (Tel: 312666, Fax: [phone], Telex: 4506 USAID LO).TRAVEL NOTES:Climate and clothing:  Light summer wear is suitable from Octoberto May.  Winter clothing is needed from June to September.Entry requirements:  Americans traveling to Lesotho can obtain visason arrival.  However, all routes to Lesotho pass through South Africa,and travelers without a South African multiple entry visitor's visa arenot permitted to leave the international area while transitingJohannesburg's Jan Smuts Airport.  A transit visa is not acceptablefor entry into South Africa.  The airport has inexpensive, poor-qualityhotel rooms to accommodate those who remain overnight to makeonward connections.Tourist attractions:  These include pony trekking, horseback riding,hiking, and trout fishing.  Skiing in winter months is sometimespossible.  The mountain scenery is striking, and lodge facilities areavailable in most mountain tourist areas.Health:  Tapwater is generally safe in the Maseru area, but it isrecommended that water be boiled and filtered.  Medical facilities inMaseru are adequate for emergency treatment; more extensivefacilities are in Bloemfontein, South Africa, 140 km. (81 mi.) away.South Africa's more cosmopolitan areas, such as Johannesburg,Cape Town, and Durban, have nonracial medical facilities.Telecommunications:  Telephone and telegraphic service is availablein and between the more populated areas of Lesotho, but much ofthe interior can only be reached by radio.  Lesotho is six standardtime zones ahead of eastern standard time.  The country does notobserve daylight-saving time.Transportation:  Maseru is a short flight from Johannesburg.Lesotho Airways operates daily commercial flights to and fromJohannesburg and weekly to Botswana.  Royal Swazi Airways fliesto and from Maputo, Mozambique, by way of Manzini, Swaziland.  Anew international airport is located 12 miles outside of Maseru.Airstrips are located at Mokhotlong, Leribe, Mohale's Hoek, ThabaTseka, and Qacha's Nek.  There are 28 other secondary landingfields suitable only for light aircraft.  Maseru has few taxis.  Trafficmoves on the left.  Car rental agencies are available.Published by the United States Department of State --  Bureau ofPublic Affairs  --  Office of  Public Communication  --  Washington,DC November 1990  --  Editor:  Marilyn J. BremnerDepartment of State Publication 8091 -- Background Notes Series-- This material isin the public domain and may  be reprinted without permission;citation of this sourceis appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>BACKGROUND NOTES:  LEBANON (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJANUARY 1994Official Name:  Republic of LebanonECONOMYLebanon's economy is liberal and open, and traditionally heavily orientedtoward services.  Lebanon served historically as a haven for Arab capital andas a Middle East transit point and enjoyed a vibrant and largely unregulatedprivate sector.  Lebanon's banking and tourism sectors flourished between theGulf oil boom of 1973 and the beginning of Lebanon's civil war in 1975 byserving regional needs.  Real GDP growth was 6% per year from 1965 to 1975.Despite the civil war and mounting government budget deficits resulting froman inability to collect taxes, Lebanon kept its currency stable and inflationrate manageable until the early 1980s.  Expatriate workers' remittances, theflow of capital from abroad to support various militias, the PLO's economicactivities, and the narcotics trade all contributed to a positive balance ofpayments.Events in the early 1980s, including the Israeli invasion of 1982, conspiredagainst the Lebanese economy, resulting in accumulated infrastructure damage,massive dislocations of the population, growing migration of people andcapital, and the uprooting of the PLO bureaucracy.Recession in the Gulf led to a sharp reduction in remittances.  Beirut'sprominence as a center for finance, commerce, and tourism faded away.  Acalmer security environment in 1986- 87, combined with a sharp depreciation ofthe Lebanese pound and a decline in labor costs resulting from inflation of600%, produced a modest economic rebound.  Growth was cut short by the generalchaos of 1988-90.Hostilities in 1989-90 in industrial and prosperous areas of Lebanon had adramatic and negative impact on production and exports, triggered massiveoutflows of capital and people, and created circumstances resulting in the"dollarization" of the economy.The end of hostilities in 1990, the beginning of the process of nationalreconciliation, and the removal of internal barriers to the movements of goodsand people produced a short- term economic boom in 1991.  This high level ofactivity proved unsustainable, largely because of enormous state deficits,poor economic management by the government, public sector corruption, theunavailability of commercial credit, and the collapse of public confidence inthe nation's leadership.A large, retroactive public sector salary increase in late 1991, financedthrough the sale of Treasury bills, precipitated a crisis:  From January 1,1992, to early October, inflation galloped to about 130%, and currency lost180% of its value.  The high cost of living became, and has remained, an issueof acute concern to the Lebanese public.A surge of optimism swept across Lebanon with the advent of the HaririGovernment in October 1992, amidst expectations that the billionairebusinessman and his team of advisors would reform state finances andadministration, embark on needed emergency infrastructure reconstruction, andattract foreign aid.  Demand for Lebanese pounds jumped immediately, despitesubstantial intervention by the central bank to stabilize the exchange market(the pound was valued at the end of May 1993 at 1,740 to a dollar, after anearly October 1992 low of 2,400 to a dollar).  There was also evidence ofdeflation.The Ministry of Finance has achieved remarkable advances toward closing thebudget deficit, despite rigidities in debt servicing, the public sectorpayroll, and large subsidies to the electricity and telephone companies.  Thedeficit in the first quarter of 1993 amounted to $104 million, compared to$550 million in the first quarter of 1992.The absence of functioning services is a serious obstacle to growth.  TheHariri Government has made infrastructure rehabilitation a centerpiece of itsefforts, using the December 1991 emergency rehabilitation plan (ERP) as ablueprint.  It calls for spending $2.3 billion in the next 2.5 years,primarily on rejuvenating the electricity, telecommunications, water supply,waste water, and solid waste management sectors.The government has already begun pre-qualifying international firms forprojects in those fields.  The government has in hand commitments for over$900 million in allocated and non- allocated foreign assistance, almostentirely in the form of loans.In February 1993, the World Bank signed an agreement to loan $175 million insupport of ERP.  Future aid, necessary for partial financing of an ambitious$13-billion, 10-year development plan revealed by the government in March1993, will depend largely on the Hariri team's ability to point to a record ofeconomic stabilization and well-managed use of current assistance flows forreconstruction.Hariri's economic policy is firmly rooted in the principle that infrastructurespending and budget austerity will stimulate private-sector growth.  The primeminister's advisers hope to develop more sophisticated capital markets toattract a portion of Lebanese capital held abroad, which amounts to tens ofbillions of dollars, institutionalize exchange rate stability, and help managea debt burden which is bound to grow as ambitious rehabilitation plansproceed.The formation of a private real estate company to rebuild the downtowncommercial center of Beirut is a centerpiece of the Hariri team's strategy forhooking economic recovery to the engine of private sector investment.  Thecompany will expropriate property in the area and compensate owners withshares in the company.  The company is to obtain capitalization equal to halfof the estimated property value in the development zone, estimated at $4billion.  Gulf Arab businessmen have already committed about $500 million tothe controversial project.Lebanon may have experienced a modest balance of trade deficit in the firstquarter of 1993, estimated by a private bank at $1.8 million.  A large tradedeficit was virtually eliminated by capital inflows.  Gold reserves amountedto $3 billion, and foreign exchange reserves at $1.2 billion.  Foreign debtmay approach $700 million today, and domestic public debt exceeds $2.5billion.Another issue bringing increasing attention to Lebanon is its role as a majordrug producing and trafficking country.  In addition to traditional hashishproduction, opium is cultivated and processed into heroin in Lebanon, andLebanese traffickers have become increasingly involved in the cocaine trade.The dramatic expansion of drug activities in Lebanon can be traced primarilyto the breakdown of central government authority.  Because of the potentialfor huge profits from the drug trade, many militias in Lebanon, includingknown terrorist elements, are thought to be engaged in one or more aspects ofthe drug trade to finance their operations.Since 1976, Syrian troops have occupied Lebanon's prime drug-producing area,the Biqa' Valley.  They constitute the only formal security authority in thisarea.FOREIGN RELATIONSLebanon's foreign policy reflects its geographic location, the composition ofits population, and its reliance on commerce and trade.  Lebanon hopes toreestablish good ties with Western countries and in the Middle East.  Lebanonremains friendly with Western countries and follows a generally cautiouscourse in its relations with countries of the former Soviet bloc.Lebanon's foreign policy is also heavily influenced by Syria, which maintainsforces throughout parts of Lebanon.  Lebanon did not participate in the 1967or 1973 Arab-Israeli war or in the 1991 Gulf War.  Lebanon and Israel are nowconducting bilateral negotiations in the Arab-Israeli peace process.U.S.-LEBANESE RELATIONSThe United States seeks to maintain its traditionally close ties with Lebanon,to help preserve its independence, sovereignty, national unity, andterritorial integrity.  The United States also supports the withdrawal of allnon-Lebanese forces from Lebanon and the disarming and disbanding of all armedmilitias.  The United States believes that a peaceful, prosperous, and stableLebanon can make an important contribution to stability and peace in theMiddle East.The United States supports the programs of the central government to restoresecurity and unity to Lebanon and to rebuild that country's nationalinstitutions.  One measure of U.S.  concern and involvement has been a programof relief and rehabilitation assistance which, since 1975, has totaled morethan $250 million.This support reflects not only humanitarian concerns and historical ties butthe importance the United States attaches to the restoration of a sovereign,independent, unified Lebanon.  Current funding is used to support theactivities of U.S.  and Lebanese private voluntary organizations engaged inhumanitarian relief programs.Over the years, the United States also has helped finance construction of theAmerican University Hospital in Beirut and has assisted the AmericanUniversity of Beirut (AUB) by financing part of its operating budget and byproviding scholarships to many of its students.  When the AUB administrationbuilding was bombed in November 1991, the U.S.  allocated an additional $3million to help defray the costs of rebuilding this symbolic center of theuniversity.In September 1989, all American officials at the U.S.  embassy in Beirut werewithdrawn, when safety and operation of the mission could not be guaranteed.A new U.S.  ambassador returned to Beirut in November 1990, and the embassyhas been continuously open since March 1991.  However, due to the size of thestaff and security concerns, normal consular and commercial services and otherembassy functions are not available in Beirut.Principal U.S. Embassy OfficialsAmbassador--Mark G. HambleyDeputy Chief of Mission--Vincent BattlePolitical Officer--David HaleConsular/Commercial Officer--Patrick SyringConsul--VacantAdministrative Officer--Louis LemieuxThe U.S. embassy operates in Awkar, Lebanon (tel. 402-200, 403-300).Travel AdvisoryOn January 26, 1987, pursuant to the authority of 22 U.S.C.  211A andExecutive Order 11295 (31 FR 10603), and in accordance with 22 CFR 51.73 (A)(3), all U.S.  passports were declared invalid for travel to, in, or throughLebanon, unless specifically validated for such travel.  This action wasrequired because the situation in Lebanon was so chaotic that Americancitizens could not be considered safe from terrorist acts.Although there has been some improvement in the security situation, review ofthe situation has led to the determination by the Secretary of State thatLebanon continues to be an area "...where there is imminent danger to thepublic health or the physical safety of United States travelers" within themeaning of 22 U.S.C.  211(A) and 22 C.F .R.  51.73 (A) (3).  Accordingly, allUnited States passports shall remain invalid for travel to, in, or throughLebanon, unless specifically validated for such travel under the authority ofthe Secretary of State.Exceptions to this restriction may be granted to professional journalists andto others for compelling humanitarian considerations or if travel isdetermined to be in the national interest.  Exceptions will be scrutinizedcarefully on a case-by-case basis in light of the level of threat to theprospective traveler's safety.  Requests for exceptions should be forwarded inwriting to the following address:Deputy Assistant Secretary for Passport ServicesU.S. Department of StateWashington, DC  20520Attn.:  Office of Citizenship Appeals and LegalAssistance, Room 300.The request for an exception must be accompanied by substantiatingdocumentation according to the category under which an exception is sought.Additional information may be obtained by calling the Office of CitizenshipAppeals and Legal Assistance (tel.  [phone] ).Published by the United States Department of State -- Bureau of Public Affairs-- Office of Public Communication -- Washington, DC January 1994 -- ManagingEditor:  Peter A.  KnechtDepartment of State Publication 7956 -- Background Notes Series.  Contents ofthis publication are not copyrighted unless indicated.  If not copyrighted,the material may be reproduced without consent; citation of the publication asthe source is appreciated.  Permission to reproduce any copyrighted material(including photos and graphics) must be obtained from the original source.For sale by the Superintendent of Documents, U.S.  Government Printing Office,Washington, DC 20420.</text>
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        <text>BACKGROUND NOTES:  LEBANONPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJANUARY 1994Official Name:  Republic of LebanonPROFILEGeographyArea:  10,452 sq.  km.  (4,015 sq.  mi.); about half the size of New Jersey.Cities:  Capital--Beirut (pop.  1 million).  Other cities--Tripoli (240,000),Sidon (110,000), Tyre (60,000), Zahleh (55,000).  Terrain:  Narrow coastalplain backed by the Lebanon Mountains, the fertile Biqa' Valley, and theAnti-Lebanon Mountains, which extend to the Syrian border.  Land--61% urban,desert, or waste; 21% agricultural; 8% forested.  Climate:  TypicallyMediterranean, resembling that of southern California.PeopleNationality:  Noun and adjective--Lebanese (sing.  and pl.).  Population(est.):  3 million.  Annual growth rate (est):  1%.  Ethnic groups:  Arab 93%,Armenian 6%.  Religions:  Christian (Maronite, Greek Orthodox, Greek Catholic,Roman Catholic, Protestant, Armenian Apostolic, other), Muslim (Sunni, Shi'a,other), and Druze.  Languages:  Arabic (official), French, English, Armenian.Education:  Years compulsory--5.  Attendance-- 93%.  Literacy--75%.  Health:Infant mortality rate--50/1,000 (1989).  Life expectancy--male, 65 years;female, 70 years.  Work force (750,000 in 1989):  Industry, commerce,services--79%.  Agriculture--11%.  Government--10%.GovernmentType:  Parliamentary republic.  Independence:  1943.  Constitution:  May 26,1926 (amended).  Branches:  Executive--president (chief of state, elected bysimple majority of parliament for 6-year term), council of ministers(appointed).  Legislative--unicameral parliament (128-member National Assemblyelected for 4-year renewable terms; last parliamentary elections in 1992).Judicial-- secular and religious courts; combination of Ottoman, civil, andcanon law; no judicial review of legislative acts.  Administrativesubdivisions:  5 provinces, each headed by a governor:  Beirut, North Lebanon,South Lebanon, Mount Lebanon, and Biqa'.  Political parties:  Organized alongsectarian lines around individuals whose followers are motivated by religious,clan, and ethnic considerations.  Suffrage:  Males at 21; females withelementary education, at 21.  Flag:  Two horizontal red bands with whitecenter band, on which a green and brown cedar tree is centered.EconomyNote:  Due to drastic fluctuation in exchange rates over 1992, and flaws inthe central government's economic database, figures throughout this report arenot authoritative, but are estimates based on recent economic performance.GDP (1992):  $4 billion.  Annual growth rate:  (1992) 10%.  GDP per capita:$1,500.  Natural resources:  Limestone.  Agriculture (7.2% of GDP):Products--citrus fruit, vegetables, olives, sugar beets, tobacco.  Industry(21% of GDP):  Types--cement production, ready-made clothing, electricalequipment, light industry, refining.  Trade (23% of GDP):  Exports--$500million [f.o.b.--1992].  Major markets--Saudi Arabia, Switzerland, U.A.E.,France, Jordan.  Imports-- $4.8 billion [c.i.f.--1992].  Major suppliers--Italy, Syria, France, Germany, U.S.  Official exchange rate:  [1992 average]1,683 Lebanese pounds=US$1; [Dec.  1993] 1,711 Lebanese pounds=US$1.PEOPLEThe population of Lebanon comprises Christians and Muslims.  No officialcensus has been taken since 1932, reflecting the political sensitivity inLebanon over confessional (religious) balance.  The U.S.  Government estimateis that more than half of the resident population is Muslim (Shi'a, Sunni andDruze), and the rest is Christian (predominantly Maronite, Greek Orthodox,Greek Catholic, and Armenian).  Shi'a Muslims make up the single largest sect.Claims since the early 1970s by Muslims that they are in the majoritycontributed to tensions preceding the 1975-76 civil strife and have been thebasis of demands for a more powerful Muslim voice in the government.There are over 300,000 Palestinian refugees in Lebanon registered with theUnited Nations Relief and Works Agency (UNRWA), and about 180,000 statelessundocumented persons resident in the country (mostly Kurds and Syrians).Palestinians and stateless persons are not accorded the legal rights enjoyedby the rest of the population.With no official figures available, it is estimated that 600,000-900,000persons fled the country during the initial years of civil strife (1975-76).Although some returned, continuing instability until 1990 sparked furtherwaves of emigration, casting even more doubt on population figures.Many Lebanese still derive their living from agriculture.  The urbanpopulation, concentrated mainly in Beirut and Tripoli, is noted for itscommercial enterprise, but chronic instability until 1990 in much of thecountry has had a strong negative impact on both agriculture and commerce.Lebanon has a higher proportion of skilled labor than any other Arab country.HISTORYLebanon is the historical home of the Phoenicians, Semitic traders whosemaritime culture flourished there for more than 2,000 years (c.  2700-450B.C.).  In later centuries, Lebanon's mountains were a refuge for Christians,and Crusaders established several strongholds there.  Following the collapseof the Ottoman Empire after World War I, the five Ottoman provinces that hadcomprised present- day Lebanon were mandated to France by the League ofNations.  The country gained independence in 1943, and French troops werewithdrawn in 1946.Lebanon's history from independence can be defined largely in terms of itspresidents, each of whom shaped Lebanon by a personal brand of politics:Sheikh Bishara al-Khoury (1943- 52), Camille Chamoun (1952-58), Fuad Shihab(1958-64), Charles Helou (1964-70), Suleiman Franjiyah (1970-76), Elias Sarkis(1976-1982), and Amine Gemayel (1982-88).  From the end of the term of AmineGemayel in September 1988 until the election of Rene Moawad in November 1989,Lebanon had no president.The terms of the first two presidents ended in political turmoil.  In 1958,during the last months of President Chamoun's term, an insurrection broke out,aggravated by external factors.  In July 1958, in response to an appeal by theLebanese Government, U.S.  forces were sent to Lebanon.  They were withdrawnin October 1958, after the inauguration of President Shihab and a generalimprovement in the internal and international aspects of the situation.President Franjiyah's term saw the outbreak of full-scale civil conflict in1975.  Prior to 1975, difficulties had arisen over the large number ofPalestinian refugees in Lebanon and the presence of Palestinian fedayeen(commandos).  Frequent clashes involving Israeli forces and the fedayeenendangered civilians in south Lebanon and unsettled the country.  Followingminor skirmishes in the late 1960s and early 1970s, serious clashes eruptedbetween the fedayeen and Lebanese Government forces in May 1973.Coupled with the Palestinian problem, Muslim and Christian differences grewmore intense, with occasional clashes between private sectarian militias.  TheMuslims were dissatisfied with what they considered an inequitabledistribution of political power and social benefits.  In April 1975, aftershots were fired at a church, a busload of Palestinians was ambushed by gunmenin the Christian sector of Beirut, an incident widely regarded as the sparkthat touched off the civil war.  Palestinian fedayeen forces joined thepredominantly leftist-Muslim side as the fighting persisted, eventuallyspreading to most parts of the country.Elias Sarkis was elected president in 1976.  In October, Arab summits inRiyadh and Cairo set forth a plan to end the war.  The resulting ArabDeterrent Force (ADF), composed largely of Syrian troops, moved in at theLebanese Government's invitation to separate the combatants, and most fightingended soon thereafter.  As an uneasy quiet settled on Beirut and parts ofLebanon, security conditions in southern Lebanon began to deteriorate.  Aseries of clashes occurred in the south in late 1977 and early 1978 betweenthe Palestine Liberation Organization (PLO) and Lebanese leftists on the onehand, and the pro- Israeli, southern Lebanese militia (eventually known as the"Army of South Lebanon," or SLA) on the other.After a raid on a bus in Northern Israel left large numbers of Israeli andPalestinian guerrilla casualties, Israel invaded Lebanon in March 1978,occupying most of the area south of the Litani river.  The UN Security Councilpassed Resolution 425 calling for withdrawal of Israeli forces from Lebanonand creating a UN Interim Force in Lebanon (UNIFIL), charged with maintainingpeace.  When the Israelis withdrew, they turned over positions inside Lebanonalong the border to their Lebanese ally, the SLA, and formed a "security zone"which exists to this day under the effective control of Israel and the SLA.In mid-1978, clashes between the ADF and the Christian militias erupted.  Arabforeign ministers created the Arab Follow-Up Committee, composed of Lebanon,Syria, Saudi Arabia, and Kuwait, to end fighting between the Syrians andChristians.  After the Saudi ambassador was wounded in December 1978, thecommittee did not meet again formally until June 1981, when it was convened toaddress security and national reconciliation.  The committee was unsuccessfulin making progress toward a political settlement and has been inactive sinceNovember 1981.Israeli-Palestinian fighting in July 1981 was ended by a cease-fire arrangedby U.S.  President Ronald Reagan's special envoy, Philip C.  Habib, andannounced on July 24, 1981.  The cease-fire was respected during the next 10months, but a string of incidents, including PLO rocket attacks on northernIsrael, led to the June 6, 1982, Israeli ground attack into Lebanon to removePLO forces.  Israeli forces moved quickly through south Lebanon, encirclingwest Beirut by mid-June and beginning a three- month siege of Palestinian andSyrian forces in the city.Throughout this period, which saw heavy Israeli air, naval, and artillerybombardments of west Beirut, Ambassador Habib worked to arrange a settlement.In August, he was successful in bringing about an agreement for the evacuationof Syrian troops and PLO fighters from Beirut.  The agreement also providedfor the deployment of a three-nation Multinational Force (MNF) during theperiod of the evacuation, and by late August, U.S.  Marines, as well as Frenchand Italian units, had arrived in Beirut.  When the evacuation ended, theseunits departed.  The U.S.  Marines left on September 10.In spite of the invasion, the Lebanese political process continued tofunction, and Bashir Gemayel was elected President in August, succeeding EliasSarkis.  On September 14, however, Bashir Gemayel was assassinated.  OnSeptember 15, Israeli troops entered west Beirut.  During the next three days,Lebanese militiamen massacred hundreds of Palestinian civilians in the Sabraand Shatila refugee camps in west Beirut.Bashir Gemayel's brother, Amine, was elected President by a unanimous vote ofthe parliament.  He took office September 23, 1982.  MNF forces returned toBeirut at the end of September as a symbol of support for the government.In February 1983, a small British contingent joined the U.S., French, andItalian MNF troops in Beirut.  President Gemayel and his government placedprimary emphasis on the withdrawal of Israeli, Syrian, and Palestinian forcesfrom Lebanon, and in late 1982, Lebanese- Israeli negotiations commenced withU.S.  participation.On May 17, 1983, an agreement was signed by the representatives of Lebanon,Israel, and the United States that provided for Israeli withdrawal.  Syriadeclined to discuss the withdrawal of its troops, effectively stalematingfurther progress.  Opposition to the negotiations and to U.S.  support for theGemayel regime led to a series of terrorist attacks in 1983 and 1984 on U.S.interests, including the bombing on April 18, 1983 of the U.S.  embassy inwest Beirut (63 dead), of the U.S.  and French MNF headquarters in Beirut onOctober 23, 1983 (298 dead), and of the U.S.  embassy annex in east Beirut onSeptember 20, 1984 (8 killed).Although the general security situation in Beirut remained calm through late1982 and the first half of 1983, a move by Christian militiamen into theDruze-controlled Shuf area southeast of Beirut following the Israeli invasionled to a series of Druze-Christian clashes of escalating intensity beginningin October 1982.  When Israeli forces unilaterally withdrew from the Shuf atthe beginning of September 1983, a full-scale battle erupted with the Druze,backed by Syria, pitted against the Christian Lebanese Forces (LF) militia aswell as the Lebanese army.  U.S.  and Saudi efforts led to a cease-fire onSeptember 26.  This left the Druze in control of most of the Shuf.  Casualtieswere estimated to be in the thousands.The virtual collapse of the Lebanese army in February 1984, following thedefection of many of its Muslim and Druze units to opposition militias, was amajor blow to the government.  As it became clear that the departure of theU.S.  Marines was imminent, the Gemayel Government came under increasingpressure from Syria and its Muslim Lebanese allies to abandon the May 17accord.  The Lebanese Government announced on March 5, 1984, that it wascanceling its unimplemented agreement with Israel.  The U.S.  Marines left thesame month.Further national reconciliation talks at Lausanne under Syrian auspicesfailed.  A new "government of national unity" under Prime Minister RashidKarami was declared in April 1984 but made no significant progress towardsolving Lebanon's internal political crises or its growing economicdifficulties.The situation was exacerbated by the deterioration of internal security.  Theopening rounds of the savage "camps war" in May 1985--a war that flared uptwice in 1986-- pitted the Palestinians living in refugee camps in Beirut,Tyre, and Sidon against the Shi'ite Amal militia, which was concerned withresurgent Palestinian military strength in Lebanon.  Eager for a solution inlate 1985, Syria began to negotiate a "tripartite accord" on political reformamong the leaders of various Lebanese factions, including the LF.However, when the accord was opposed by Gemayel and the leader of the LF wasoverthrown by his hardline anti-Syrian rival, Samir Jaja, in January 1986,Syria responded by inducing the Muslim government ministers to cease dealingwith Gemayel in any capacity, effectively paralyzing the government.  In 1987,the Lebanese economy worsened, and the pound began a precipitous slide.  OnJune 1, Prime Minister Karami was assassinated, further compounding thepolitical paralysis.  Salim al-Huss was appointed acting prime minister.As the end of President Gemayel's term of office neared, the differentLebanese factions could not agree on a successor.  Consequently, when his termexpired on September 23, 1988, he appointed Army Commander General Michel Aounas interim Prime Minister.  Gemayel's acting Prime Minister, Salim al-Huss,also continued to act as de facto Prime Minister.  Lebanon was thus dividedbetween an essentially Muslim government in west Beirut and an essentiallyChristian government in east Beirut.  The working levels of many ministries,however, remained intact and were not immediately affected by the split at theministerial level.In February 1989, General Aoun attempted to close illegal ports run by the LF.This led to several days of intense fighting in east Beirut and an uneasytruce between Aoun's army units and the LF.  In March, an attempt by Aoun toclose illegal militia ports in predominantly Muslim parts of the country ledto a 6-month period of shelling of east Beirut by Muslim and Syrian forces andshelling of west Beirut and the Shuf by the Christian units of the army andthe LF.  This shelling caused nearly 1,000 deaths, several thousand injuries,and further destruction to Lebanon's economic infrastructure.In January 1989, the Arab League appointed a six-member committee on Lebanon,led by the Kuwaiti foreign minister.  At the Casablanca Arab summit in May,the Arab League empowered a higher committee on Lebanon--composed of SaudiKing Fahd, Algerian President Bendjedid, and Moroccan King Hassan--to worktoward a solution in Lebanon.  The committee issued a report in July 1989,stating that its efforts had reached a "dead end" and blamed Syrianintransigence for the blockage.  After further discussions, the committeearranged for a seven-point cease- fire in September, followed by a meeting ofLebanese parliamentarians in Taif, Saudi Arabia.After a month of intense discussions, the deputies informally agreed on acharter of national reconciliation, also known as the Taif agreement.  Thedeputies returned to Lebanon in November, where they approved the Taifagreement on November 4, and elected Rene Moawad, a Maronite Christian deputyfrom Zghorta in north Lebanon, President on November 5.  General Aoun,claiming powers as interim Prime Minister, issued a decree in early Novemberdissolving the parliament and did not accept the ratification of the Taifagreement or the election of President Moawad.President Moawad was assassinated on November 22, 1989, by a bomb thatexploded as his motorcade was returning from Lebanese independence dayceremonies.  The parliament met on November 24 in the Biqa' Valley and electedElias Hraoui, a Maronite Christian deputy from Zahleh in the Biqa' Valley, toreplace him.  President Hraoui named a Prime Minister, Salim al-Huss, and acabinet on November 25.  Despite widespread international recognition ofHraoui and his government, General Aoun refused to recognize Hraoui'slegitimacy, and Hraoui officially replaced Aoun as army commander in earlyDecember.In late January 1990, General Aoun's forces attacked positions of the LF ineast Beirut in an apparent attempt to remove the LF as a political force inthe Christian enclave.  In the heavy fighting that ensued in east Beirut andits environs, over 900 people died and over 3,000 were wounded.In August 1990, the National Assembly approved, and President Hraoui signedinto law, constitutional amendments embodying the political reform aspects ofthe Taif agreement.  These amendments gave some presidential powers to thecouncil of ministers, expanded the National Assembly from 99 to 108 seats, anddivided those seats equally between Christians and Muslims (see GOVERNMENTsection below).In October 1990, a joint Lebanese-Syrian military operation against GeneralAoun forced him to capitulate and take refuge in the French embassy.  OnDecember 24, 1990, Omar Karami was appointed Lebanon's Prime Minister.General Aoun remained in the French embassy until August 27, 1991 when a"special pardon" was issued, allowing him to leave Lebanon safely and take upresidence in exile in France.  1991 and 1992 saw considerable advancement inefforts to reassert state control over Lebanese territory.  Militias--with theimportant exception of Hizballah--were dissolved in May 1991, and the armedforces moved against armed Palestinian elements in Sidon in July 1991.  In May1992 the last of the western hostages taken during the mid-1980s by Islamicextremists was released.In October 1991, under the sponsorship of the United States and thethen-Soviet Union, the Middle East peace talks were convened in Madrid, Spain.This was the first time that Israel and its Arab neighbors had directbilateral negotiations to seek a just, lasting, and comprehensive peace in theMiddle East.  Lebanon, Jordan, Syria, and representatives of the Palestiniansconcluded round 11 of the negotiations in September 1993.A social and political crisis, fueled by economic instability and the collapseof the Lebanese pound, led to Prime Minister Omar Karami's resignation May 6,1992.  He was replaced by former Prime Minister Rashid al Sulh, who was widelyviewed as a caretaker to oversee Lebanon's first parliamentary elections in 20years.  The elections were not prepared and carried out in a manner to ensurethe broadest national consensus.The turnout of eligible voters in some Christian locales was extremely low,with many voters not participating in the elections because they objected tovoting in the presence of non-Lebanese forces.  There also were widespreadreports of irregularities.  The electoral rolls were themselves in manyinstances unreliable because of the destruction of records and the use offorged identification papers.  As a consequence, the results do not reflectthe full spectrum of Lebanese politics.Elements of the 1992 electoral law, which paved the way for elections,represented a departure from stipulations of the Taif agreement, expanding thenumber of parliamentary seats from 108 to 128 and employing a temporarydistricting arrangement designed to favor certain sects and politicalinterests.  According to the Taif agreement, the Syrian and LebaneseGovernments were to agree in September 1992 to the redeployment of Syriantroops from greater Beirut.  That date passed without an agreement.  In earlyNovember 1992, Prime Minister Rafiq al-Hariri formed a new cabinet, retainingfor himself the finance portfolio.  The formation of the Hariri Government waswidely seen as a sign that the Government of Lebanon would seriously grapplewith reconstructing the Lebanese state and reviving the economy.GOVERNMENTLebanon is a parliamentary democracy in which the people constitutionally havethe right to change their government.  However, until the parliamentaryelections in 1992, the people had not been able to exercise this right during16 years of civil war.  According to the constitution, direct elections mustbe held for the parliament every 4 years.  Parliament, in turn, elects apresident every 6 years.  The last presidential election was in 1989.  Thepresident and parliament choose the cabinet.  Political parties may be formedand some in fact flourish.Since the emergence of the post-1943 state, national policy has beendetermined largely by a relatively restricted group of traditional regionaland sectarian leaders.  The 1943 national pact allocated political power on anessentially confessional system, based on the 1932 census.  Until 1990, seatsin parliament were divided on a 6-to-5 ratio of Christians to Muslims.Positions in the government bureaucracy were allocated on a similar basis.Efforts to alter or abolish the confessional system of allocating power havebeen at the center of Lebanese politics for more than 30 years.  A series ofamendments has substantially altered the constitution of 1926.  Among the moresignificant is Article 95, which provides that the confessional communities ofLebanon shall be equitably represented in public employment and in thecomposition of the cabinet but that such a measure is not to impair thegeneral welfare of the state.  This article supplements the National Covenantof 1943, an unwritten agreement that established the political foundations ofmodern Lebanon.  The covenant provides that public offices shall bedistributed among the recognized religious groups and that the three toppositions in the governmental systems shall be distributed as follows:-- The president is to be a Maronite Christian;-- The prime minister, a Sunni Muslim, and-- The president of the National Assembly, a Shi'a Muslim.Those religious groups most favored by the 1943 formula sought to preserve it,while those who perceived themselves to be disadvantaged sought to revise iton the basis of updated demographic data or to abolish it entirely.  Thestruggle gave a strongly sectarian coloration to Lebanese politics and to thecontinuing civil strife in the country.Under the national reconciliation agreement reached in Taif, Saudi Arabia, inOctober 1989, members of parliament agreed to alter the national pact tocreate a 50-50 Christian- Muslim balance in the parliament and reorder thepowers of the different branches of government.  The Taif agreement, thepolitical reform aspects of which were signed into law in September 1990,further modified the constitution to permit greater power-sharing and put inwriting many of the provisions of the national pact.Constitutional amendments embodying the political reforms stipulated in theTaif agreement became law in 1990.  They included an expansion of the numberof seats in parliament and the division of seats equally between Muslims andChristians and the transfer of some powers from the president to the primeminister and council of ministers.Constitutionally, the president has a strong and influential position.  Thepresident appoints the council of ministers and designates one of them to beprime minister.  The president also has the authority to promulgate lawspassed by the National Assembly, to issue supplementary regulations to ensurethe execution of laws and to negotiate and ratify treaties.The National Assembly, only sporadically active since 1975, is elected byadult suffrage based on a system of proportional representation for theconfessional groups of the country.  Most deputies do not represent politicalparties as they are known in the West, nor do they form Western-style groupsin the assembly.  Political blocs are usually based on confessional and localinterests or on personal allegiance rather than on political affinities.The assembly traditionally has played a significant role in financial affairs,since it has the responsibility for levying taxes and passing the budget.  Italso exercises political control over the cabinet through formal questioningof ministers on policy issues and by requesting a confidence debate.Lebanon's judicial system is based on the Napoleonic Code.  Juries are notused in trials.  The Lebanese court system has three levels--courts of firstinstance, courts of appeal, and the court of cassation.  There also is asystem of religious courts having jurisdiction on personal status matterswithin their own communities, i.e., rules on such matters as marriage, divorceand inheritance.Principal Government Officials President--Elias Hraoui Prime Minister andMinister of Finance--Rafiq al-Hariri Minister of Foreign Affairs--Fares BouezDeputy Prime Minister--Michel Murr Ambassador to the U.S.--Riad TabbarahAmbassador to the UN--Khalil MakkouiLebanon maintains an embassy in the United States at 2560 28th Street, NW,Washington, D.C.  20008, tel.  [phone].  There also are threeconsulates general in the United States:  1959 East Jefferson, Suite 4A,Detroit, MI 48207, tel.  [phone]; 7060 Hollywood Blvd., Suite 510,Los Angeles, CA 90028, tel.  [phone]; and 9 East 76th Street, NewYork, N.Y.  l0021, tel.  [phone] and 744-7985.POLITICAL CONDITIONSIn addition to its indigenous political groupings, Lebanon contains branchesof many other political parties of the Arab world.  These cover the politicalspectrum from far left to far right, from totally secular to wholly religiousand often are associated with a particular religion or geographic region.Palestinian refugees, numbering about 400,000 and predominantly Muslim,constitute an important and sensitive minority.Lebanese political parties are generally vehicles for powerful leaders whosefollowers are often of the same religious sect.  The interplay for positionand power among these leaders and groups produces a political tapestry ofextraordinary complexity.In the past, this system worked to produce a viable democracy.  Recent events,however, have upset the delicate Muslim-Christian balance and resulted in atendency for Christians and Muslims to group themselves for safety intodistinct zones.  All factions have called for a reform of the politicalsystem.Some Christians favor political and administrative decentralization of thegovernment, with separate Muslim and Christian sectors operating within theframework of a confederation.  Muslims, for the most part, prefer a unified,central government with an enhanced share of power for themselves commensuratewith their percentage of the population.  The reforms of the Taif agreementmoved in this latter direction.</text>
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        <text>BACKGROUND NOTES:  LATVIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEOfficial Name:Republic of LatviaPROFILEGeographyArea:  64,100 sq. km. (25,640 sq. miles); about the size of WestVirginia.Cities:  Capital--Riga (1989 pop. 910,500).  Othercities--Daugavpils (125,000); Liepaja (114,500); Jelgava(74,100); Jurmala (60,600); Ventspils (50,600); Rezekne (42,500).Terrain:  Fertile low-lying plains predominate in central Latvia,highlands in Vidzeme and Latgale to the east, and hills  in thewestern Kurzeme region.Climate:  Temperate, with four seasons of almost equal length.PeopleNationality:  Noun and adjective--Latvian(s).Population:  2.6 million.  Growth rate--0.6%.  Birthrate--14/1,000.Ethnic groups:  Latvian 52%, Russians 34%, Belorussians 4.5%,Ukrainians 3%, Poles 2%.Religions:  Lutheran, Russian Orthodox, Roman Catholic.Official language:  Latvian (official).  Russian also is widelyspoken.Education: Years compulsory--9.  Literacy--99%.Health:  Infant mortality rate--16/1,000.  Life expectancy--65years male, 75 female.Work Force (1.4 million):  Industry--30%.Agriculture/forestry--16%.   Trade/Dining--9%.Transport/Communication--7%.  Construction--10%.  Financialservices/Other--27%.GovernmentType:  Parliamentary democracy.Constitution:  The 1922 constitution, the 1990 declaration ofrenewal of independence, and the 1991 "Basic Law for the Periodof Transition" serve until a new constitution is ratified.Branches:  Executive--chairman of parliament (head of state),elected by parliament every five years; prime minister (head ofgovernment).  Legislative--Saeima (100-member body).Judicial--Supreme Court.Administrative regions:  26 rural districts and 6 districts inRiga.Principal political factions:  Union "Latvia's Way," FarmersUnion,National Conservative Party, "Harmony for Latvia" Coalition,"Equal Rights" Faction, Christian Democrats, "Fatherland andFreedom," Democratic Center Party.Suffrage:  Universal at 18.Flag:  Two horizontal, maroon bands of equal width divided by awhite stripe.EconomyGDP:  $2.6 billion.Growth rate:  -33%.Natural resources:  Peat, limestone, dolomite, gypsum, timber.Agriculture/forestry (24% of GDP):  Products--cattle, dairyfoods, cereals, potatoes.Manufacturing/electricity (45% of GDP):  Light electricalequipment and fittings, textiles and footwear, technologicalinstruments, construction materials, processed foods.Trade:  Exports--$803 million:  transshipment of crude oil;metals, timber and paper products; furniture; dairy and fishproducts; light industrial products and machinery; chemicalproducts; textiles and clothing.  Major markets--Russia 43%;Netherlands 12%; Germany 10%; Sweden 10%; Ukraine 9%; Belarus 7%.Imports--$1.1 billion:  fuel, food, raw materials, machinery.Partners--Russia 29%; Germany 10%; Lithuania 10%;  Sweden 5%;Belarus 4%.Exchange rate (July 1994):  0.57 Lats=U.S. $1.PEOPLELatvians occasionally refer to themselves by the ancient name of"Latviji," which may have originated from a "Latve" river thatpresumably flowed through what is now eastern Latvia.  A smallFinno-Ugric tribe known as the Livs settled among the Latviansand modulated the name to "Latvis," meaning "forest-clearers,"which is how medieval German settlers also referred to thesepeoples.The German colonizers changed this name to "Lette" and calledtheir initially small colony "Livland."  The Latin form,"Livonia," gradually referred to the whole of modern-day Latviaas well as southern Estonia, which had fallen under Germandominion.  Latvians and Lithuanians are the only survivingmembers of the Baltic peoples and languages of the Indo-Europeanfamily.Latvians consider themselves to be Nordics, evidenced through thestrong cultural and religious influences gained over centuriesduring Germanic and Scandinavian colonization and settlement.Eastern Latvia (Latgale), however, retains strong Polish andRussian cultural and linguistic influences.  This highly literatesociety places strong emphasis upon education, which is free andcompulsory until age 16.  Most Latvians belong to the EvangelicalLutheran Church.  A sizeable minority are Russian Orthodox.Eastern Latvia is predominantly Roman Catholic.Historically, Latvia always has had fairly large Russian, Jewish,German, and Polish minorities, but postwar emigration,deportations, and Soviet "Russification" policies from 1939-89reduced the percentage of ethnic Latvians in Latvia from 73% to53%.  Latvia's strict language law and draft citizenship law havecaused many non-citizen resident Russians concern over theirability to assimilate, despite Latvian legal guarantees ofuniversal human and civil rights regardless of citizenship.Written with the Latin alphabet, Latvian is the language of theLatvian people and the official language of the country.  It isan inflective language with several analytical forms, threedialects, and German syntactical influence.  The oldest knownexamples of written Latvian are from a 1585 catechism.The Soviets imposed the official use of Russian, so most Latviansspeak Russian as a second or first language, while the residentSlavic populace generally speaks Russian as a first language.HISTORYFrom about 9000 B.C., ancient peoples of unknown origin inhabitedLatvia.  By 3000 B.C., the ancestors of the Finns had settled theregion.  A millennium later, pre-Baltic tribes had arrived and,within time, evolved into the Baltic Couranian, Latgallian,Selonian, and Semigallian groups.  These tribes eventually formedlocal governments independent of the Finno-Ugric Livian tribe.In the 1300s,  they were conquered by the Germans, who renamedthe territory Livonia.German sailors shipwrecked on the Daugava River in 1054 hadinhabited the area, which led to increasing German influence.Founded by the Germanic Bishop Alberth of Livonia in 1201, thecity of Riga joined the Hanseatic League in 1285 and sharedimportant cultural and economic ties with the rest of Europe.However, the new German nobility enserfed the peasantry andaccorded non-Germanic peoples only limited trading and propertyrights.Subsequent wars and treaties ensured Livonia's partition andcolonization for centuries.  The commonwealth's successes duringthe Livonian Wars (1558-1583) united the Latvian-populatedduchies of Pardaugava, Kurzeme, and Zemgale, but thePolish-Swedish War (1600-1629) granted Sweden acquisition of Rigaand the Duchy of Pardaugava, minus Latgale, leaving Latvia againsplit ethnically.In turn, victory over Sweden in the Great Northern War(1700-1721) gave Russia control over the Latvian territories.From 1804 onward, a series of local decrees gradually weakenedthe grip of German nobility over peasant society.  In 1849 a lawgranted a legal basis for the creation of peasant-owned farms.Until the 1860s, there still was little sense of a Latviannational identity, as both serfdom and institutional controls tomigration and social mobility limited the boundaries of thepeasants' intellectual and social geography.  The large baronicestates caused a lack of available farmland for an increasingpopulation, creating a large landless, urban class comprisingabout 60% of the population.Also, in the face of stricter Russification policies, the BalticGerman clergy and literati began to take an interest in thedistinctive language and culture of the Latvian peasantry.  Thesepatrons (with such Lettish names as Alunans, Barons, Krastins,Kronvalds, Tomsons, and Valdemars) soon formed the Young LatvianMovement, whose aim was to promote the indigenous language and topublicize and counteract the socioeconomic oppression ofLatvians.By 1901 "Jauna Strava" had evolved into the Latvian SocialDemocratic Party.  Following the lead of the Austrian Marxists,the LSDP advocated the transformation of the Russian empire intoa federation of democratic states (to include Latvia) and theadoption of cultural autonomy policy for extra-territorial ethniccommunities.In 1903, the LSDP split into the more radically internationalistLatvian Social Democratic Worker's Party and the more influentialLatvian Social Democratic Union (LSDU), which continued tochampion national interests and Latvia's nationalself-determination, especially during the failed 1905 revolutionin Russia.The onset of World War I brought German occupation of the westerncoastal province of Kurzeme, and Latvians countered the invasionby establishing several rifle regiments commanded by czaristgenerals.  As a defensive measure, Russia dismantled over 500local Latvian industries, along with technological equipment, andmoved them to central Russia.The sagging military campaign generally increased Latvian andLSDU support for the Bolsheviks' successful October Revolution in1917, in hopes of a "free Latvia within free Russia."  Thesecircumstances led to the formation of the Soviet "IskolatRepublic" in the unoccupied section of Latvia.  In opposition tothis government and to the landed barons' pro-German sympathiesstood, primarily, the Latvian Provisional National Council andthe Riga Democratic Bloc.  These and other political partiesformed the Latvian People's Council which, on November 18, 1918,declared Latvia's independence and formed an army.The new Latvian army faced rogue elements of the retreatingGerman army and engaged in civil war against the Soviet Red Army,composed largely of former Latvian Riflemen.  Soviet powerresumed in Latvia one month later, on December 17, by order ofthe Latvian Soviet Socialist Republic, which forcefullycollectivized all land and nationalized all industries andproperty.By May 22, 1919, the resurgent German army occupied anddevastated Riga for several days.  The Latvian army managed towin a decisive battle over the combined German-Red Army forcesand, thereafter, consolidated its success on the eastern Latgalefront.These developments led to the dissolution of the Soviet LatvianGovernment on January 13, 1920, and to a peace treaty betweenLatvia and Soviet Russia on August 11 later that year.  BySeptember 22, 1921, Latvia was admitted to the League of Nations.Having obtained independent statehood in which Latvians were anabsolute majority, the government headed by Prime MinisterUlmanis declared a democratic, parliamentary republic.  Itrecognized Latvian as the official language, granted culturalautonomy to the country's sizeable minorities, and introduced anelectoral system into the Latvian constitution, which was adoptedin 1922.The decade witnessed sweeping economic reform, as war haddevastated Latvian agriculture and most Russian factories hadbeen evacuated to Russia. Economic depression heightenedpolitical turmoil, and on May 15, 1934, Prime Minister Ulmanisdismissed the parliament, banned outspoken and left-wingpolitical parties, and tightened authoritarian state control overLatvian social life and the economy.The effects of the infamous Molotov-Ribbentrop agreement steadilyforced Latvia under Soviet influence until August 5, 1940, whenthe Soviet Union finally annexed Latvia.  On June 14 of thefollowing year, 15,000 Latvian citizens were forcibly deportedand a large number of army officers shot.  The subsequent Germanoccupation saw the mobilization of many Latvians into GermanWaffen SS legions, while some Latvians joined the Red Army andformed resistance groups; others fled to the West and East.  By1945, Latvia' s population had dropped by one-third.After the war, the U.S.S.R. subjected the Latvian republic to ascale of social and economic reorganization which rapidlytransformed the rural economy to heavy industry, the Latvianpopulation into a more multiethnic structure, and thepredominantly peasant class into a fully urbanized industrialworker class.As part of the goal to more fully integrate Latvia into theSoviet Union, on March 25, 1949, Stalin deported another 42,000Latvians and continued to promote the policy of encouragingSoviet immigration to Latvia.  The brief "Krushchev thaw" of the1950s ended in 1959, when the Soviets dismissed Latvian CommunistParty and government leaders on charges of "bourgeoisnationalism" and replaced them with more aggressive hardliners,mostly from Russia.Perestroika enabled Latvians to pursue a bolder nationalisticprogram, particularly through such general issues asenvironmental protection.  In July 1989, the Latvian SupremeSoviet adopted a "Declaration of Sovereignty" and amended theconstitution to assert the supremacy of its laws over those ofthe U.S.S.R.  Pro-independence Latvian Popular Front candidatesgained a two-thirds majority in the Supreme Council in the March1990 democratic elections.On May 4, the Council declared its intention to restore fullLatvian independence after a "transitional" period; three dayslater, Ivars Godmanis was chosen Council of Ministers Chairman,or Prime Minister.In January 1991, Soviet political and military forces triedunsuccessfully to overthrow the legitimate Latvian authorities byoccupying the central publishing house in Riga and establishing a"Committee of National Salvation" to usurp governmentalfunctions.  Three-fourths of all Latvian residents confirmedsupport for independence on March 3 in a nonbinding "advisory"referendum.  A large number of ethnic Russians also voted for theproposition.Latvia claimed de facto independence on August 21, 1991, in theaftermath of the failed Soviet coup attempt.  Internationalrecognition, including by the U.S.S.R., followed.  The U.S.,which had never recognized Latvia's forcible annexation by theU.S.S.R., resumed full diplomatic relations with Latvia onSeptember 2.GOVERNMENT AND POLITICAL CONDITIONSLatvia emphatically states that the Russian troop withdrawalissue remains its highest priority and that its resolution willexponentially speed economic and political reform.  EstimatedRussian troop strengths now are less than 7,000.  In October1991, the Latvian Supreme Council began deliberations on acitizenship law, which remains to be finalized.  Under theaccepted guidelines, those who were Latvian citizens in 1940 andtheir descendants can claim citizenship.  Almost half of Latvia'spopulation is ethnically non-Latvian, yet perhaps more than 85%of its ethnic Slavs can pass the residency requirement.  Theguidelines set naturalization criteria for conversationalknowledge of Latvian, a loyalty oath, renunciation of formercitizenship, a 16-year residency requirement, and a knowledge ofthe Latvian constitution.Dual citizenship is allowed for those who were forced to leaveLatvia during the Soviet occupation and adopted anothercitizenship.  In addition, the resolution calls for excludingcriminals, drug addicts, members of the Soviet army, and certainother groups from becoming citizens.On March 19, 1991, the Supreme Council passed a law explicitlyguaranteeing "equal rights to all nationalities and ethnicgroups" which  "guarantees to all permanent residents in theRepublic regardless of their nationality, equal rights to workand wages."  The law also prohibits "any activity directed towardnationality discrimination or the promotion of nationalsuperiority or hatred."Significant portions of the 1922 constitution were temporarilyreinstituted in autumn 1991.  The government took a census inspring 1993 to determine eligibility for citizenship.Parliamentary gridlock in the former Supreme Council had haltedpassage of any substantive political or economic legislation.The Saeima, a unicameral legislative body, is the highest organof state authority.  It initiates and approves legislationsponsored by the prime minister.  The prime minister has fullresponsibility and control over the cabinet, and the presidentholds a primarily ceremonial role as head of state.In the June 5-6, 1993, elections, in which over 90% of theelectorate participated, 8 of Latvia's 23 registered politicalparties passed the 4% threshold to enter parliament.  The PopularFront, which spearheaded the drive for independence two years agowith a 75% majority in the last parliamentary elections in 1990,did not qualify for representation.  The centrist "Latvia's Way"party received a 33% plurality of votes and joined with theFarmer's Union to head a center/right-wing coalition government.Led by the opposition National Conservative Party, right-wingnationalists won a majority of the seats nationwide and alsocaptured the Riga mayoralty in the May 29, 1994, municipalelections.  Correctly anticipating that it would do poorly, thegoverning party, "Latvia's Way," spent few resources to contestthe elections.  Its coalition partner, "Farmers' Union," did wellin the countryside while former Foreign Minister Jurkans'left-leaning "Concord for Latvia" took eastern Latvia.  Europeanobservers pronounced the elections free and fair, and turnoutaveraged just under 60%.The popular and effective Foreign Minister, Georgs Andrejevs,resigned in early June due to poor health and because ofaccusations that he and four other members of parliament hadcooperated with the Soviet KGB prior to Latvia's independence.On July 13, 1994, Prime Minister Birkaus and his cabinetresigned, ostensibly over the withdrawal of the Farmer's Unionfrom the coalition because of a dispute on agricultural tariffsand other policies.  While it appears certain the President willnot call new elections, it is unclear whether the currentgovernment simply will remain in place with a few ministerialreplacements, or whether the National Conservative Party canmuster the support to form a new government.National SecurityLatvia's defense concept is based upon the Swedish-Finnish rapidresponse model force.  The armed forces consist of border guards,mobile infantry, special units, and an air force and navy whosestatus has not fully been determined financially oradministratively.  The zemessardze, or home guard, is anautonomous, volunteer paramilitary organization which alsoperforms traditional national guard duties and assists the borderguards.  Special independent interior ministry, intelligence, andcivil defense units also exist.  Active-duty defense forces willstand at 9,000.  There is a mandatory one-year draft period ofactive duty, and alternative conscription for conscientiousobjectors is available.Principal Government OfficialsPresident--Guntis UlmanisPrime Minister--Valdis BirkavsMinister of Foreign Affairs--vacantLatvia maintains an embassy in the United States at 4325 17thStreet, Washington DC 20011 (tel:  [phone]).ECONOMYFor centuries under Hanseatic and German influence and thenduring its interwar independence, Latvia used its geographiclocation as an important East-West commercial and trading center.Industry served local markets, while timber, paper, andagricultural products comprised Latvia's main exports.Conversely, the years of Russian and Soviet occupation tended tointegrate Latvia's economy to serve those empires' large internalindustrial needs.Today, Latvia's economy still remains heavily dependent upon themarkets of the states of the former Soviet Union.  Other than inpeat, timber, and gravel, Latvia is deficient in most naturalresources and relies upon trade with its former Soviet neighborsto provide 91% of its energy needs.  Freed prices, includingonce-rationed food items and fuel, now are reaching marketlevels, and most small businesses and farms have been formallyprivatized or are operating as such.  Industrial productiondropped 35% in 1992, and the urban, resident non-citizen Russianwork force--which dominates Latvia's highly diversified butinefficient industrial sector--may face significant unemploymentand economic displacement once Latvia undertakes deeper necessaryreforms.As a result, Latvians' standard of living and purchasing powerhas fallen catastrophically.  As a new member, Latvia receivedcritical loans from the IMF and World Bank, as well as fromG-24 nations, in order to stave off critical energy, medicinal,and feed grain shortages and financial shortfalls caused by thedisruption of traditional Soviet markets.The monetary situation has stabilized, with monthly inflationless than 2% in accord with IMF plans and hard currency reservesin excess of $320 million.  Last year, Latvia began issuing itsown freely convertible currency, the lats, which replaced theinterim currency, the Latvian ruble.In 1993, Latvia exported to the U.S. $23 million worth of goodsand imported $90 million of goods and services.   American firmsregistered $35 million out of a total $110 million in foreigninvestment.  The U.S. is the largest Western investor in Latvia.Private businesses are booming, with over $75 million in foreigninvestment last year, and the government has recreated over50,000 private farms.  With 48% of the populace, ethnic Slavscontrol about 80% of the economy.FOREIGN RELATIONSLatvia became a member of the United Nations on September 18,1991, and is a signatory to a number of UN and otherinternational organizations and relationships.  It also is amember of the Conference on Security and Cooperation in Europeand of the North Atlantic Cooperation Council.  Latvia isunaffiliated directly with any political alliance but welcomesfurther cooperation and integration with NATO, the EuropeanUnion, and other Western organizations.  It also seeks moreactive participation in United Nations peace-keeping effortsworldwide.Latvia maintains embassies in the United States, Belarus,Belgium, Denmark, Estonia, Finland, France, Germany, Lithuania,Sweden, the United Kingdom, and Russia.  It also operatesmissions to the United Nations in New York City and a consulategeneral in Australia.  Honorary consuls are located in Australia,Austria, Belgium, Canada, Greece, India, Israel, Italy, SouthKorea, Moldova, Norway, Switzerland, Taiwan, and Venezuela.Relations with Russia are improving, primarily because Latvia andRussia signed a troop withdrawal agreement on April 30 callingfor the withdrawal of Russia's remaining 4,000 troops from Latviano later than August 31, 1994.  In July, Latvia also passed anaturalization law that could enable many of its residentnon-citizens to apply for citizenship within 10 years.Latvia has agreed that Russia may continue to operate the Skrundaradar facility under CSCE supervision strictly for a four-yearperiod.The United States established diplomatic relations with Latvia onJuly 28, 1922.  The U.S. legation in Riga officially wasestablished November 13, 1922, and served as the headquarters forU.S. representation in the Baltics during the interwar era.  TheSoviet invasion forced the closure of the legation on September5, 1940, but Latvian representation in the United States hascontinued uninterrupted for over 70 years.  The U.S. neverrecognized the forcible incorporation of Latvia into the U.S.S.R.and views the present Government of Latvia as a legalcontinuation of the interwar republic.  Latvia has enjoyedmost-favored-nation (MFN) treatment with the U.S. since December1991.  It annually receives approximately $6 million inhumanitarian and medical aid, technical assistance, andprofessional training, along with having received about $38million in feed grain credits from the U.S. since 1991.Principal U.S. Embassy OfficialsAmbassador--Ints SilinsEconomic Officer--Constance PhlipotPolitical Officer--Douglas WakeAdministrative Officer--Susan PazinaConsular Officer--Ellen ConwayAID Director--Baudouin de MarckenPublic Affairs Officer--Philip IvesThe U.S. embassy in Latvia is located at Raina Boulevard 7, Riga(tel. [phone]).TRAVEL NOTESCustoms:  Latvian tourist visas may be obtained at certain roadborder-crossings and at Riga Airport.  However, the U.S. embassystrongly recommends that all visitors obtain visas from theLatvian embassy in Washington, D.C. (or in major Western Europeancapitals) before departure.  The embassy charges a $10 mailprocessing fee for visas.  Visitors are encouraged to register atthe U.S. Embassy. Lithuanian visas are also valid for entry intoLatvia.Unlimited hard currency, 1 liter of alcohol, 200 cigarettes, andfoodstuffs valued at less than one month's minimum wage (3,000rubles) may be imported; $125 worth of goods not regulated byLatvian or international law requiring special permission may beimported.  Export regulations cover hard currency (inunrestricted amounts) and foodstuffs worth less than 10 monthlyminimum wages).  Articles purchased in Latvia for hard currencymust be accompanied by a receipt.Climate and clothing:  Latvia's climate enjoys seasons of almostequal length.  Riga and the coast are temperate, with pleasant,cool summers and damp winters; eastern Latvia is continental,with warmer summers and harsher winters.Health:  Medical care does not meet Western standards and facessevere shortages of basic medical supplies, including disposableneedles, anesthetics, and antibiotics.  Recent disruption ofenergy supplies has decreased the availability of heat and hotwater.  Raw fruits and vegetables are safe to eat, but avoiddrinking unpasteurized milk and tap water.Transportation:  Several international airlines, including SASand Lufthansa, provide service between European cities and Rigaairport. Train service is available via Moscow, St. Petersburg,and Warsaw/Frankfurt, and a bus line connects the Baltic capitalswith Warsaw.  Bus and taxi services within the capital and itsenvirons are good.  Taxis are inexpensive and available atstands, or may be ordered by phone.  Rental cars are available.Gasoline prices are reaching market rates.Telecommunications:  Improved telephone and telegraph servicesare readily available at standard international rates.  Riga is 7hours ahead of eastern standard time.Further InformationThese titles are provided as a general indication of materialpublished on this country.  The Department of State does notendorse unofficial publications.Berkis, Alexander V.  The History of the Duchy  of Courland,1561-1795.  Baltimore:  Paul M. Harrod, 1969.Bilmanis, Alfreds.  A History of Latvia.  Princeton:  PrincetonUniversity Press, 1951; reprinted Westport, CT:  Greenwood Press,1970.Ekmanis, Rolf.  Latvian Literature Under the Soviets, 1940-1975.Belmont, MA:  Nordland Publishing Company, 1978.Jegers, Benjamins.  Bibliography of Latvian PublicationsPublished Outside of Latvia, 1940-1960, 2 volumes.  Stockholm:Daugava, 1968/1972.Rodgers, Mary M., , and Tom Streissguth, eds.  Latvia:  Then andNow.  Minneapolis:  Lerner Publications Company, 1992.Rutkis, Janis, ed.  Latvia:  Country and People.  Stockholm:Latvian National Foundation, 1967.Urdzins, Andrejs, and Andris Vilks, eds.  The  Baltic States:  AReference Book.  Riga:  Encyclopedia Publishers, 1991.Williams, Roger, ed.  Baltic States:  Insight Guides.  Boston:Houghton-Mifflin Company, 1993.For information on economic trends, commercial development,production, trade regulations, and tariff rates, contact theInternational Trade Administration, U.S. Department of Commerce,Washington, DC  20230 at [phone], or any CommerceDepartment district office.  For information on businessopportunities, call the Commerce Department's East EuropeanBusiness Information Center at [phone].Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of  Public Communication -- Washington,DC    August 1994 -- Managing Editor:  Peter A. Knecht -- Editor:Peter FreemanDepartment of State Publication 10195 -- Background Notes SeriesFor sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  LAOSOfficial Name:  Lao People's Democratic RepublicPROFILEPeopleNationality:  Noun and adjective-Lao (sing. and pl.).  Population:  4million (1988).  Annual growth rate:  2.6%.Population Density:  16/sq. km.Ethnic groups:  Lao 50%; Phoutheung (Khan) 15%; tribal Thai 20%;Hmong, Yao, and other 15%.  Religions:  Principally Buddhism, withanimism predominant among tribal groups.Languages:  Lao (official), French.Education:  Literacy-45%.Health:  Infant mortality rate-110/1,000;Life expectancy-48 years.  Work force (1.6 million):  Agriculture-85%;Industry-6%.GeographyArea:  236,804 sq. km. (91,430 sq. mi.); smaller than Oregon.Capital-Vientiane (pop. est. 155,000); other principalcities-Savannakhet, Luang Prabang, Pakse, Thakhek.  Terrain:Rugged mountains, plateaus.  Climate:  tropical monsoon.GovernmentType:  Communist.Branches:  Executive-president (head of state); chairman, council ofministers (prime minister and head of government); 84-memberCabinet (including vice ministers).  Legislative-Supreme People'sAssembly.  Judicial-mixture of regular and "people's courts," the latterfor security cases.  Political parties:  Lao People's RevolutionaryParty (only legal party).  Leaders: Kaysone Phomvihan, primeminister and party secretary general (since December 1975); PhoumiVongvichit, acting president (since October 1986).  Administrativesubdivisions:  17 provinces.Legal system:  based on civil law system.Central government budget (1989 est.):  Revenue-$81 million;expenditures-$187 million, including capital expenditures of $88million.  Flag:  A red band at the top and bottom with a larger blueband between them; large white circle is centered.  Major holidays:National Day (proclamation of the Lao People's DemocraticRepublic), December 2; Independence Day (from France), July 19.EconomyGDP (1989 est.):  $650 million; Per capita income:  $162 (1989); Realgrowth rate: 10.7% (1989).  Natural resources:  tin, timber, gypsum,hydroelectric power.Agriculture (62% of GDP):  Products-rice, corn, tobacco, coffee,cotton.Industry:  (16% of GDP)  Types-tin/gypsum mining, lumber, textiles,construction.  Industrial growth:  26% (1989).  Merchandise Trade:Exports- $58 million (1989):  chiefly hydroelectric power and timber;also coffee and tin.  Major markets-Thailand, Eastern Europe, USSR,Vietnam, Malaysia.Imports-$171 million (1989):  chiefly foodstuffs,  petroleum,machinery, manufactured goods.  Major suppliers-Thailand, USSR,France, Japan, Vietnam.Foreign debt:  $944 million (end of 1989).Inflation rate:  22% (1990 est.).Official exchange rate (Jan. 1991):  700 kip=US $1.  Fiscal year:July 1-June 30.Membership in International OrganizationsUN and some of its specialized and related agencies, including theWorld Bank, International Monetary Fund, FAO, GATT (observer),ICAO, IDA, IFAD, ILO, ITU, UNCTAD, UNESCO, UPU, WHO, WMO;Council for Mutual Economic Assistance [observer], NonalignedMovement, Group of 77, Asian Development Bank, Colombo Plan,Economic and Social Commission for Asia and the Pacific,Inter-Parliamentary Union, Interim Mekong Committee, WorldFederation of Trade Unions.PEOPLELaos' population is estimated at about 4 million, spread unevenlyacross the country.  Most people live in valleys of the Mekong andits tributaries.  Vientiane, the capital and largest city, has about155,000 residents.Just under half the people are ethnic Lao, the principal lowlandinhabitants and politically and culturally dominant group.  The Laoare descendent from the Thai people who migrated southward fromChina in the 13th century.  Mountain tribes of Sino-Tibetan (Hmong,Yao, Aka, and Lahu) and Thai ethno-linguistic heritage are found innorthern Laos.  In the central and southern mountains, Mon-Khmertribes predominate.  Some Vietnamese and Chinese minoritiesremain, particularly in the towns, but most have left since 1975.The predominant religion is Theravada Buddhism.  Animism iscommon particularly among the mountain tribes.  Buddhism andspirit worship coexist easily.  Most Christians  (primarily RomanCatholic) have left since 1975.The official and dominant language is Lao, a tonal language of theThai linguistic group.  French, once common in government andcommerce, has declined with the departure of many formergovernment officials.HISTORYThe first recorded history of the Lao begins with King Fa Ngum, bylegend the 23rd successor of Khoun Lo, who first united Laos in1353.  He establi-shed his capital at Luang Prabang and ruled akingdom called Lan Xang (literally, "million elephants") that coveredmuch of present-day Thailand and Laos.  He also establishedBuddhism as the state religion.In the 16th century, Lan Xang entered a period of decline caused bydynastic struggles and conflicts with Burma, Siam (now Thailand),Vietnam, and the Khmer Kingdom.  By the 18th century, the Siameseand Vietnamese kingdoms were competing for control of Laos.In the 19th century, the Siamese dominated much of what is nowLaos and divided it into principalities centered on Luang Prabang,Vientiane, and Champassak.  Late in the century, they weresupplanted by the French, who already controlled present-dayVietnam.  In 1899, France established protectorates and direct ruleover all of the principalities, and Laos became part of FrenchIndochina.  The Franco-Siamese treaty of 1907 defined the presentLao boundary with Thailand.During World War II, the Japanese occupied French Indochina andextended their control over Laos.  They induced King Sisavang Vongof Luang Prabang to declare his independence from France in 1945,just before Japan's surrender.  In September 1945, Vientiane andChampassak united with Luang Prabang to form the new Kingdomof Laos.  The king was overthrown shortly afterward by the Free Lao(Lao Issara) anti-French government, but in April 1946 he wasenthroned as a constitutional monarch after accepting the Lao Issaraconsti-tution.  French troops reoccupied Vientiane and LuangPrabang in May and, in August 1946, recognized Lao autonomy afterelections to a constituent assembly.  A new constitution took effectin 1947.France formally recognized the independence of Laos within theFrench Union on July 19, 1949, and Laos remained a member of theFrench Union until 1953.  From 1954 until 1957, pro-Westerngovernments held power.  The first coalition government, theGovernment of National Union, led by Souvanna Phouma, wasformed in 1957, but it collapsed in 1958 with the imprisonment ofPrince Soupha-nouvong and other LPF leaders by the government.A pro-Western regime took over the Royal Lao Government.  TheLPF insurgency resumed after 1959, when Souphanouvong andother leaders escaped from prison.In 1960, Kong Le, a paratroop captain, seized Vientiane in a coupand demanded formation of a neutralist government to end thefighting.  Kong Le and the neutralist government, again underSouvanna Phouma, were driven from Vientiane later in the year byrightist forces under Gen. Phoumi Nosovan and then formed analliance with the LPF.  By early 1961, the LPF, with North Vietnamesemilitary support, threatened to take over the entire country.  USmilitary advisers and supplies were sent to aid the Royal Army.A 14-country conference convened in Geneva to address the issueof Laos reached an agreement in 1962 that provided internationalguarantees for the independence and neutrality of Laos.  But the LPFceased cooperating with the government in 1964, and fightingintensified against the neutralists and rightists.In 1972, the Lao communists publicly proclaimed the existence of theLao People's Revolutionary Party (LPRP).  A new coalition, withCommunist participation, and a cease-fire were arranged in 1973, butthe political struggle between the communists, neutralists, andrightists continued.  The collapse of Saigon and Phnom Penh in April1975 hastened the decline of the coalition.  On December 2, 1975,the monarchy was abolished and the communist Lao People'sDemocratic Republic (LPDR) was established.The new government opted for socialism, with centralized economicdecision-making and broad security measures, including the controlof media and the arrest and incarceration of thousands of membersof the previous government and military in remote prison campscalled "re-education camps."  The government, in cooperation withVietnamese forces in Laos, also launched a military campaignintended to control dissidents, notably Hmong tribespeople who hadlong resisted Vietnamese and Lao communists from their mountainredoubts.This military campaign, along with deteriorating economic conditionsand government attempts to enforce political control, prompted anexodus of lowland Lao and Hmong tribespeople in the early years ofLPDR rule.  About 10% of the Lao population sought refugee statusafter 1975.  Many have since been resettled in third countries,including 185,000 who have come to the United States.  Anestimated 65,000 refugees remain in Thailand, though 7,000 returnedvoluntarily to Laos in recent years.In the late 1980s, the government closed most re-education campsand released most political prisoners, though reports indicate that atleast 34 high officials from the former government remain in custody.GOVERNMENTThe only legal political party is the communist LPRP.  The head ofstate is President Souphanouvong.  Since his stroke in late 1986,most of his duties have been taken over by acting president PhoumiVongvichit.  Real power, however, rests with Kaysone Phomvihan,chairman of the council of ministers and LPRP secretary general.The Lao national legislature, the Supreme People's Assembly (SPA),adopted new election laws in 1988, and the first national electionsunder the current government took place in March 1989 (localelections were held in 1988).  The newly elected SPA set out to drafta constitution, which was finished in mid-1990 and is expected to beapproved in 1991.  The constitution calls for a strong legislatureelected by secret ballot, but most political power continues to restwith the party-dominated council of ministers.ECONOMYLaos is a poor, landlocked country with a real per capita GDP of lessthan $170, a grossly inadequate economic infra-structure, and alargely uneducated workforce.  Agriculture, mostly subsistence ricefarming, dominates the economy, employing 85% of the populationand producing 62% of the national income.  Domestic savings arelow, so Laos depends almost entirely on foreign aid andconcessional loans for investment.  Nevertheless, Laos has plenty ofarable land, a favorable land-to-labor ratio, tremendous hydro-electricpotential, and large amounts of minerals, including tin, gold, andprobably petroleum.When the current government came to power in 1975, it imposed aharsh, Soviet-style economic system, replacing the private sectorwith state enter-prises and cooperatives, centralizing investment,production, trade, and pricing, and creating barriers to internal andforeign trade.Lao authorities began to realize as early as 1979 that their economicpolicies were inappropriate, but not until 1985, with the introductionof the "new economic mechanism" (NEM), did they initiate majorreforms.  Initially timid, the NEM soon was expanded to include arange of reforms that changed the structure of the Lao economy.Free market prices replaced government-set prices.  Farmers wereallowed to own land and sell crops at market prices.  State firmswere granted increased decision-making authority but lost most oftheir subsidies and pricing advantages.  The government set theexchange rate at market levels, lifted trade barriers, replaced importquotas with tariffs, and stimulated private sector firms by giving themdirect access to imports and credit.These reforms have helped boost exports, reduce inflation,encourage business, and increase the availability of goods.However, the economy is dominated by an unproductive agriculturalsector that operates largely outside the money economy, which thepublic sector continues to dominate.Recognizing these problems, Lao authorities in mid-1989 signed anagreement with the World Bank and the International Monetary Fundcommitting themselves to extending and deepening reforms.  Theyagreed to expand fiscal and monetary reform, promote privateenterprise and foreign investment, privatize or close state firms, andstrengthen banking.  They also agreed to maintain a marketexchange rate, reduce tariffs, and eliminate unneeded traderegulations.In the last 2 years, the Lao have enacted a liberal foreign investmentcode, begun to privatize public firms, and expanded economic tieswith the West.  They have tried especially hard to attract foreigninvestment.FOREIGN RELATIONSThe Pathet Lao leaders who took over in December 1975 alignedthemselves with the Soviet bloc and adopted a hostile attitude towardthe West.  Laos has been close to the Soviet Union and EasternEurope and is an observer at the Council for Mutual EconomicAssistance, the Soviet-bloc economic organization.Since 1975, Laos has maintained close ties with Vietnam, describedby the Lao and Vietnamese as a "special relationship" and formalizedin a friendship and cooperation treaty.  Laos has maintained closeties with Cambodia since the 1979 installation of aVietnamese-backed regime.In the last few years, Laos has sought to improve relations with othercountries and to reduce its dependence on Vietnam and the Sovietbloc.  Much of its efforts have focused on Thailand, Laos' principalmeans of access to the sea and its primary trading partner.  Lessthan a year after serious border clashes in 1987, Lao and Thaileaders signed a communique signaling their intention to improverelations.  Since then, progress has been made on several fronts,and relations now are better than they have been since 1975.Laos also has improved relations with China.  Although the two wereallies during the Vietnam War, the China-Vietnam conflict in 1979 ledto a sharp deterioration in Sino-Lao relations.  Relations began toimprove in the late 1980s, and Prime Minister Kaysone's October1989 visit to China resulted in complete normalization of Sino-Laorelations.  Flexibility on the part of both countries led to agree-mentson border demarcation trade.Finally, Laos has begun to reduce its international isolation byimproving relations with other countries, including France, Australia,and Japan.US-LAO RELATIONSUS-Lao relations deteriorated in 1975, although diplomatic relationswere not severed.  Since that time, the United States has maintaineda small embassy in Laos, and Laos has maintained a small embassyin Washington, DC, both headed by charges d'affaires.Relations were cool during the early years of the government, but in1982 both governments agreed to work to improve them.  TheUnited States stressed that progress in accounting for Americans stillmissing in Laos from the Vietnam War would be the principalmeasure of Lao sincerity in improving relations.  More recently,narcotics control has become another important US concern in Laos,which is a major producer of opium and marijuana.In the last few years, progress has been made in both areas.  InFebruary 1985, a Lao-US team conducted the first joint excavationof a plane crash site, resulting in the identification of the remains ofall 13 missing service-men.  Progress has accelerated since 1988,with Laos agreeing to expand POW/MIA activities.  The two countrieshave conducted numerous site surveys and recovery operationssince January 1989.In 1987, Laos began to cooperate on narcotics, when it requestedassistance in providing viable alternative crops to opium farmers.Since then, the two countries have signed an agreement oncooperation and initiated a multimillion dollar crop-substitutionprogram.  Laos also has formed a national committee on narcotics,participated in US-sponsored narcotics training seminars, and takenlaw enforcement actions.For its part, the United States has  supported loans to Laos by theAsian Development Bank (the United States previously abstained onsuch loans), deleted Laos from a list of countries  prohibited fromreceiving most forms of US assistance, provided emergency foodand medicine shipments, agreed to a major prosthetics program inLaos, and urged private organizations to provide humanitarianassistance.TRAVEL NOTESVisitors can apply for visas at the Lao Embassy in Washington, DCAlthough, in theory, tourist visas are temporarily "suspended" exceptfor group travel, in practice individual visa applications have generallybeen approved on a case-by-case basis.  Business travel isencouraged.  US citizens of Lao origin have been able of late toobtain visas easily to visit family and have not experienced anyparticular difficulty in Laos.  Several US journalists have been able tosecure visas within the past year as well.  Sponsorship by anindividual or organization in Laos can ease the application process.Vientiane is served by four international airlines:  Thai Airways, AirVietnam, Lao Aviation, and Aeroflot (USSR).  Flights connectVientiane to Bangkok, Rangoon, Hanoi, and (via several stops)Moscow.  Bangkok is the nearest city served by a US carrier.Principal Government OfficialsChairman, Council of Ministers-Kaysone PhomvihanActing President-Phoumi Vongvichit [since October 1986]Charge d'Affaires in Washington-Linthong PhetsavanPermanent Representative to the United Nations-Saly KhamsyLaos maintains an embassy in the United States at 2222 S St., NW,Washington, DC  20009 [tel. [phone]].PRINCIPAL US OFFICIALSCharge d'Affaires-Charles B. Salmon, Jr.Deputy Chief of Mission-Karl WycoffThe US Embassy in Laos is on Rue Bartholomie, Vientiane [tel.2220].Published by the United States Department of State --  Bureau ofPublic Affairs  -- Office of  Public Communication --  Washington, DC,March 1991 -- Editor: Jim Pinkelman.Department of State Publication 8874--Background Notes Series  --This material is in the Public domain and may  be reprinted withoutpermission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C.  20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  KUWAIT, NOVEMBER 1994PUBLSIHED BY THE BUREAU OF PUBLIC AFFIARS  November 1994 Official Name: State of Kuwait  PROFILE  Geography Area:  17,820 sq. km. (about 6,880 sq. mi.); slightly smaller than New Jersey.   Cities:  Capital-Kuwait (pop. about 700,000).  Other towns-Ahmadi, Jahra, Fahaheel.   Terrain:  Flat to slightly undulating desert plain.   Climate:  Intensely hot and dry in summers; short, cool winters with limited rain.  People  Nationality:  Noun and adjective-Kuwaiti(s).   Population (1993):  1.8 million, including non-Kuwaiti citizens. Annual growth rate (including immigration):  8.7%.   Ethnic groups:  Arab 84%, South Asian, Iranian, Southeast Asian.   Religion: Islam 85% (Kuwaiti citizens are 100% Muslim).   Languages:  Arabic (official); English widely spoken.   Education (free through high school):  Years compulsory--8.  Literacy--male 78%, female 69% over age of 15.   Health:  Infant mortality rate--13 deaths/1,000 births.  Life expectancy--72 yrs. male, 76 yrs. female.   Work force (1993):  731,600.  Government  Type:  Constitutional Monarchy. Independence:  June 19, 1961.   Constitution:  1962. Branches:  Executive--Amir (head of state).  Legislative--elected National Assembly (Majlis al-'Umma) of 50 members.  Judicial--High Court of Appeal. Political Parties:  None.   Suffrage:  Adult males who resided in Kuwait before 1920, their male descendants over 21, and Kuwaiti-born sons of naturalized citizens over 21 (eligible voters-over 100,000). Subdivisions:  Government is centralized, but for administrative purposes there are five governorates: Kuwait City, Hawalli, Ahmadi, Jahra, and Farwaniya.  Economy*  GDP (1993):  $24.7 billion.  Annual growth rate:  35%.   Per capita GDP (1993):  $17,000. Natural resources:  Petroleum, fisheries. Agriculture:  Most food is imported.  Cultivated land--1%. Industry:  Types-petroleum extraction and refining, fertilizer, chemicals, some construction materials.  Water desalinization capacity:  215 million gallons per day. Trade (1993):  Exports and re-exports--$11.4 billion: oil (90%).  Major markets--Japan 19%, Netherlands 9%,  U.S. 8%, Pakistan 6%.  Imports--$6.6 billion: food, construction materials, vehicles and parts, clothing.  Suppliers--U.S. 15%, Japan 12%, Germany 8%,  U.K. 7%. Official exchange rate (Oct. 1994):  0.30 Kuwaiti dinars=U.S.$1.    *Note:  Some economic data reflect the disruptive 1992 period of the post-invasion reconstruction and recovery.  PEOPLE  The people residing in the State of Kuwait are primarily Arab in origin, but less than half of them are from the Arabian Peninsula.  Many Arabs from nearby states took up residence in Kuwait because of the prosperity brought by oil production after the 1940s.  However, following the liberation of Kuwait from Iraqi occupation in 1991, the Kuwaiti Government undertook a serious effort to reduce the expatriate population.  Kuwait still has a sizable Iranian and Indian population.  Seventy percent of native Kuwaitis are Sunni Muslims and 30% are Shi'a Muslims.  There are very few Kuwaiti Christians.  The 74% literacy rate, one of the Arab world's highest, is due to extensive government support for the education system.  Public school education, including Kuwait University, is free, but access is restricted for foreign residents.  The government sends qualified students abroad for degrees not offered at Kuwait University.  About 1,000 Kuwaitis are currently studying in U.S. universities.  HISTORY  Kuwait's modern history began in the 18th century with the founding of the city of Kuwait by the Uteiba section of the Anaiza tribe, who wandered north from Qatar.  Its first definite contact with the West was between 1775 and 1779, when the British-operated Persian Gulf-Aleppo Mail Service was diverted through Kuwait from Persian-occupied Basra (in Iraq).  During the 19th century, Kuwait tried to obtain British support to maintain its independence from the Turks and various powerful Arabian Peninsula groups.  In 1899, the ruler Sheikh Mubarak Al Sabah--"the Great"--signed an agreement with the United Kingdom pledging himself and his successors neither to cede any territory nor to receive agents or representatives of any foreign power without the British Government's consent.  Britain agreed to grant an annual subsidy to support the Sheikh and his heirs and to provide its protection.  Kuwait enjoyed special treaty relations with the U.K., which handled Kuwait's foreign affairs and was responsible for its security.    Mubarak was followed as ruler by his son Jabir (1915-17) and another son Salim (1917-21).  Subsequent amirs descended from these two brothers.  Sheikh Ahmed al-Jabir Al Sabah ruled from 1921 until his death in 1950, and Sheikh Abdullah al-Salim Al Sabah from 1950 to 1965.  By early 1961, the British had withdrawn their special court system, which handled the cases of foreigners resident in Kuwait, and the Kuwaiti Government began to exercise legal jurisdiction under new laws drawn up by an Egyptian jurist.  On June 19, 1961, Kuwait became fully independent following an exchange of notes with the United Kingdom.  The boundary with Saudi Arabia was set in 1922 with the Treaty of Uqair following the Battle of Jahrah.  This treaty also established the Kuwait-Saudi Arabia Neutral Zone, an area of about 5,180 sq. km. (2,000 sq. mi.) adjoining Kuwait's southern border.  In December 1969, Kuwait and Saudi Arabia signed an agreement dividing the Neutral Zone (now called the Divided Zone) and demarcating a new international boundary.  Both countries share equally the Divided Zone's petroleum, onshore and offshore.    Kuwait's northern border with Iraq dates from an agreement made with Turkey in 1913.  Iraq accepted this claim in 1932 upon its independence from Turkey.  However, following Kuwait's independence in 1961, Iraq claimed Kuwait, under the pretense that Kuwait had been part of the Ottoman Empire subject to Iraqi suzerainty.  In 1963, Iraq reaffirmed its acceptance of Kuwaiti sovereignty and the boundary it agreed to in 1913 and 1932, in the "Agreed Minutes between the State of Kuwait and the Republic of Iraq Regarding the Restoration of Friendly Relations, Recognition, and Related Matters."  In August 1990, Iraq nevertheless invaded Kuwait, but was forced out seven months later by a UN coalition led by the United States.  Following liberation, the UN, under Security Council Resolution 687, demarcated the Iraq-Kuwait boundary on the basis of the 1932 and the 1963 agreements between the two states.  Although the demarcation is final and reaffirmed under Chapter VII of the UN Charter by UNSCR 833,  Iraq has refused to accept and continues to make claims to Kuwait.  GOVERNMENT AND POLITICAL CONDITIONS  The State of Kuwait has been ruled by the Sabah family since 1751.  The 1962 constitution contains detailed provisions on the powers and relationships of the branches of government and on the rights of citizens.  Upon the death of an amir, the crown prince assumes his position.  A new crown prince is then selected by members of the Sabah family from among the direct descendants of Mubarak the Great.  Under the constitution, the designation is subject to the approval of the National Assembly.  Since independence, successions have been orderly, both in 1965 and 1978.  Kuwait experienced an unprecedented era of prosperity under Amir Sabah al-Salim Al Sabah, who died in 1977 after ruling for 12 years, and under his successor, Amir Jabir Ahmed el-Jaber Al Sabah.  The country was transformed into a highly developed welfare state with a free market economy.  During the seven-month occupation by Iraq, the Amir, the Government, and many Kuwaitis took refuge in Saudi Arabia or other nations.  The Amir and the government successfully managed Kuwaiti affairs from Saudi Arabia, London, and elsewhere during the period, relying on substantial Kuwaiti investments available outside Kuwait for funding and war-related expenses.  His return after the liberation in February 1991 was relatively smooth.  Kuwait's first National Assembly was elected in 1963, with follow-on elections held in 1967, 1971, and 1975.  From 1976 to 1981, the National Assembly was suspended.  Following elections in 1981 and 1985, the National Assembly was again dissolved.  Fulfilling a promise made during the period of Iraqi occupation, the Amir held new elections for the National Assembly in 1992.  No political parties exist in Kuwait, although there are groupings (such as extended families) that function like parties.  The ideological representation in the Kuwaiti National Assembly is broad, with a majority of the 1992 Assembly members being considered as "opposition" in their orientation.  Although the Amir maintains the final word on most government policies, the National Assembly plays a real role in decision-making, with powers to initiate legislation, question government ministers, and express lack of confidence in individual ministers.  Five of the elected National Assembly members were selected to serve as cabinet ministers.  Principal Government Officials  Amir--His Highness Sheikh Jabir al-Ahmad al-Jabir Al Sabah Crown Prince and Prime Minister--His Highness Sheikh Saad al-Abdullah al-Salim Al Sabah First Deputy Prime Minister and Minister of Foreign Affairs--Sheikh Sabah al-Ahmed al-Jaber Al Sabah  Ambassador to the United States--Mohammad Sabah Salim Al Sabah Ambassador to the United Nations--Mohammad K. Abdalhasan  Kuwait maintains an embassy in the United States at 2940 Tilden Street NW., Washington, D.C. 20008 (tel. [phone]).  ECONOMY  Kuwait is a small country with massive oil reserves, whose economy has been traditionally dominated by the state and its oil industry.  During the 1970s, Kuwait benefited from the dramatic rise in oil prices, which Kuwait actively promoted through its membership in the Organization of Petroleum Exporting Countries (OPEC).  More recently, the economy has suffered from the triple shock of a 1982 securities market crash, the mid 1980s drop in oil prices, and the 1990 Iraqi invasion and occupation.  The Kuwaiti Government-in-exile depended upon its $100 billion in overseas investments during the occupation in order to help pay for the reconstruction.  Thus, by 1993, this balance was cut to less than half of its pre-invasion level.  The wealth of Kuwait is based primarily on oil and capital reserves, and the Iraqi occupation severely damaged both.  In the closing hours of the Gulf war in February 1991, the Iraqi occupation forces set ablaze or damaged 749 of Kuwait's oil wells.  All of these fires were extinguished within a year.  Production has been restored, and refineries and facilities have been modernized.  Oil exports surpassed their pre-invasion levels in 1993 with production levels only constrained by OPEC quotas.  Oil  In 1934, the ruler of Kuwait granted an oil concession to the Kuwait Oil Co. (KOC), jointly owned by the British Petroleum Co. and Gulf Oil Corp.  In 1976, the Kuwaiti Government nationalized KOC.  The following year, Kuwait took over onshore production in the Divided Zone between Kuwait and Saudi Arabia.  KOC produces jointly there with Texaco, Inc., which, by its 1984 purchase of Getty Oil Co., acquired the Saudi Arabian onshore concession in the Divided Zone.  Offshore the Divided Zone, the Arabian Oil Co., 80% owned by Japanese interests and 10% each by the Kuwaiti and Saudi Governments, has produced on behalf of both countries since 1961.  The Kuwait Petroleum Corp. (KPC), an integrated international oil company, is the parent company of the government's operations in the petroleum sector, and includes Kuwait Oil Company, which produced oil and gas; Kuwait National Petroleum Co., refining and domestic sales; Petrochemical Industries Co., producing ammonia and urea; Kuwait Foreign Petroleum Exploration Co., with several concessions in developing countries; Kuwait Oil Tanker Co.; and Santa Fe International Corp.  The latter, purchased outright in 1982, gives KPC a worldwide presence in the petroleum industry.  KPC has also purchased from Gulf Oil Co. refineries and associated service stations in the Benelux nations and Scandinavia, as well as storage facilities and a network of service stations in Italy.  In 1987, KPC bought a 19% share in British Petroleum, which was later reduced to 10%.  KPC markets its products in Europe under the brand Q8 and is interested in the markets of the United States and Japan.  Kuwait has about 77 billion barrels of recoverable oil; Saudi Arabia is the only single country which has larger reserves.  Estimated capacity, before the war, was about 2.4 million barrels per day (b/d).  During the Iraqi occupation, Kuwait's oil producing capacity was reduced to practically nothing.  However, tremendous recovery and improvements have been made.  Oil production was 1.5 million b/d by the end of 1992, and pre-war capacity was restored in 1993.  Kuwait's OPEC quota in August 1994 is 2 million b/d.  Social Benefits  The government has sponsored many social welfare, public works, and development plans financed with oil and investment revenues.  Among the benefits for Kuwaiti citizens are retirement income, marriage bonuses, housing loans, virtually guaranteed employment, free medical services, and education at all levels.  Foreign nationals residing in Kuwait obtain some, but not all, of the welfare services.  The right to own stock in publicly traded companies, real estate, and banks or a majority interest in a business is limited to Kuwaiti citizens and citizens of GCC states under limited circumstances.  Industry and Development  Industry in Kuwait consists of several large export-oriented petrochemical units, oil refineries, and a range of small manufacturers.  It also includes large water desalinization, ammonia, desulfurization, fertilizer, brick, block, and cement plants.  During the invasion, the Iraqis looted nearly all movable items of worth, especially high technology items and small machinery.  Much of this has been replaced with newer equipment.  Agriculture  Agriculture is limited by the lack of water and arable land.  The government has experimented in growing food through hydroponics and carefully managed farms.  However, most of the soil which was suitable for farming in south central Kuwait was destroyed when Iraqi troops set fire to oil wells in the area and created vast "oil lakes."  Fish and shrimp are plentiful in territorial waters, and large-scale commercial fishing has been undertaken locally and in the Indian Ocean.  Shipping  The Kuwait Oil Tankers Co. has 35 crude oil and refined product carriers and is the largest tanker company in an OPEC country.  Kuwait is also a member of the United Arab Shipping Company.  Trade, Finance, and Aid  The Kuwaiti dinar is a strong currency pegged to a basket of currencies in which the U.S. dollar has the most weight.  Kuwait ordinarily runs a balance-of-payments surplus.  Government revenues are dependent on oil revenues.  Revenues for Kuwaiti fiscal year ending in June 1992 were $3 billion, down from a pre-war level of nearly $6 billion.  Expenditures, mainly in costs of reconstruction and residual costs of the war, as well as major increases in defense spending, soared to nearly $40 billion, from a pre-war norm of about $10 billion.  In 1993, Kuwait resumed pre-war spending levels.  The government's two reserve funds, the Fund for Future Generations and the General Reserve Fund, which totaled nearly $100 billion prior to the invasion in 1990, were the primary source of capital for the Kuwaiti Government during the war.  Currently, these funds have been depleted to $40-$50 billion.  The bulk of this reserve is invested in the United States, Germany, the United Kingdom, France, Japan, and Southeast Asia.  In order of importance, foreign assets are believed to be invested in stocks and bonds, fixed yield instruments (mostly short term), and real estate.  Kuwait follows a generally conservative investment policy.  Kuwait has been a major source of foreign economic assistance to other states through the Kuwait Fund for Arab Economic Development, an autonomous state institution created in 1961 on the pattern of Western and international development agencies.  In 1974, the fund's lending mandate was expanded to include all-not just Arab-developing countries.  Over the years aid was provided to Egypt, Syria, and Jordan, as well as the Palestine Liberation Organization.  During the Iran-Iraq war, significant Kuwaiti aid was given to the Iraqis.  Due to sizable post-war expenditures, Kuwaiti foreign assistance was limited to $350 million in 1992, but this is expected to rise slowly as budget deficits continue.  From 1979-1989, bilateral aid to less developed countries totaled about $18 billion.  FOREIGN RELATIONS  Following independence in June 1961, Kuwait faced its first major foreign policy problem arising from Iraqi claims to Kuwait's territory.  The Iraqis threatened invasion, but were dissuaded by the U.K.'s ready response to the Amir's request for assistance.  Kuwait presented its case before the United Nations and preserved its sovereignty.  U.K.  forces were later withdrawn and replaced by troops from Arab League nations, which were withdrawn in 1963 at Kuwait's request.  On August 2, 1990, Iraq invaded and occupied Kuwait.  Through U.S. efforts, a multinational coalition was assembled, and, under UN auspices, initiated military action against Iraq to liberate Kuwait.  Arab states, especially the other five members of the Gulf Cooperation Council (Saudi Arabia, Bahrain, Qatar, Oman, and the United Arab Emirates), Egypt, and Syria, supported Kuwait by sending troops to fight with the coalition.  Many European and East Asian states sent either troops, equipment, or financial support.  After liberation, Kuwait concentrated its foreign policy efforts on development of ties to states which had participated in the multinational coalition.  Notably, these states were given the lead role in Kuwait's reconstruction.  Conversely, Kuwait's relations with those nations that supported Iraq, among them Jordan, Sudan, Yemen, and Cuba, remain strained or non-existent.  Palestine Liberation Organization (PLO) Chairman Yasir Arafat's support for Saddam Hussein during the war has also affected Kuwait's attitudes toward the PLO and the peace process.  Since the conclusion of the Gulf war, Kuwait has made efforts to secure allies throughout the world, particularly United Nations Security Council members.   In addition to the United States, defense arrangements have been concluded with the United Kingdom, Russia, and France.  Close ties to other key Arab members of the Gulf war coalition--Egypt and Syria--have also been sustained.  Kuwait is a member of the UN and some of its specialized and related agencies, including the World Bank (IBRD), International Monetary Fund (IMF), World Trade Organization (WTO), General Agreement on Tariffs and Trade (GATT); African Development Bank (AFDB), Arab Fund for Economic and Social Development (AFESD), Arab League, Arab Monetary Fund (AMF), Council of Arab Economic Unity (CAEU), Economic and Social Commission for Western Asia (ESCWA), Group of 77 (G-77), Gulf Cooperation Council (GCC), INMARSAT, International Development Association (IDA), International Finance Corporation, International Fund for Agricultural Development, International Labor Organization (ILO), International Marine Organization, Interpol, INTELSAT, IOC, Islamic Development Bank (IDB), League of Red Cross and Red Crescent Societies (LORCS), Non-Aligned Movement, Organization of Arab Petroleum Exporting Countries (OAPEC), Organization of the Islamic Conference (OIC), Organization of Petroleum Exporting Countries (OPEC), and the International Atomic Energy Agency (IAEA).  DEFENSE  Before the Gulf war, Kuwait maintained a small military force consisting of army, navy, and air force units.  The majority of equipment for the military was supplied by the United Kingdom.  Aside from the few units that were able to escape to Saudi Arabia, including a majority of the air force, all of this equipment was either destroyed or taken by the Iraqis.  Much of the property returned by Iraq after the Gulf war was damaged beyond repair.  Iraq still retains a substantial amount of captured Kuwaiti military equipment in violation of UN resolutions.  Since the war, Kuwait, with the help of the U.S. and other allies, has made significant efforts to increase the size and modernity of their armed forces.  These efforts are succeeding.  The government also continues to improve defense arrangements with other Arab states, as well as UN Security Council members.  A separately organized National Guard maintains internal security.  Police forces are under the authority of the Ministry of Interior.  U.S.-KUWAITI RELATIONS  A U.S. consulate was opened at Kuwait in October 1951 and was elevated to embassy status at the time of Kuwait's independence 10 years later.  The United States supports Kuwait's sovereignty, security, and independence as well as closer cooperation among the GCC countries.    In 1987, cooperation between the United States and Kuwait increased due to the implementation of the maritime protection regime to ensure freedom of navigation through the Gulf for 11 Kuwaiti tankers that were reflagged with U.S. markings.  The U.S.-Kuwaiti partnership reached dramatic new levels of cooperation after the Iraqi invasion.  The United States assumed a leading role in the implementation of Operation Desert Shield.  The United States led the UN Security Council to demand Iraqi withdrawal from Kuwait and authorize the use of force, if necessary, to remove Iraqi forces from the occupied country.   The United States played a major role in the evolution of Desert Shield into Desert Storm, the multinational military operation to liberate the State of Kuwait.  Eventually, the U.S. provided the bulk of the troops and equipment that were used by the multinational coalition that liberated Kuwait.  The U.S.-Kuwaiti relationship has remained strong in the post-war period.  The United States has provided military and defense technical assistance to Kuwait from both foreign military sales (FMS) and commercial sources.  All transactions have been made by direct cash sale.  The U.S. Office of Military Cooperation in Kuwait is attached to the American Embassy and manages the FMS program.  U.S. military sales to Kuwait total $3.1 billion, $1.6 billion of which has been purchased since the close of the Gulf war.  Principal U.S. military systems currently purchased by the Kuwait Defense Forces are Patriot missile system, F-18 Hornet fighters, and the M1A2 Main Battle Tank.  The United States is currently Kuwait's largest supplier, and Kuwait is the fifth-largest market in the Middle East for U.S. goods and services.  U.S. exports to Kuwait totaled $1.2 billion in 1991.  Since the Gulf war, Kuwaiti attitudes toward Americans and American products have been excellent.  Provided their prices are reasonable, U.S. firms have a competitive advantage in many areas requiring advanced technology, such as oil field equipment and services, electric power generation and distribution equipment, telecommunications gear, consumer goods, and military equipment.  In 1993, Kuwait publicly announced abandonment of the secondary and tertiary aspects of the Arab boycott of Israel (those aspects affecting U.S. firms).  Principal U.S. Officials  Ambassador--Ryan C. Crocker Deputy Chief of Mission--Georgia DeBell Political Officer--Margaret Scobey Commercial Officer--Johnny Brown Economic Officer--Paul H. Tyson Consular Officer--Kevin Richardson Public Affairs Officer (USIS)--Millie McCoo Chief, Office of Military Cooperation--Gen. Robert Ivany USA  The U.S. embassy in Kuwait is located at Bneid al-Gar, Kuwait (opposite the Safir Hotel).  The mailing address is P.O. Box 77, SAFAT, 13001 SAFAT, Kuwait; or Unit 69000 APO AE 09880. (####)  Published by the U.S. Department of State  Bureau of Public Affairs -- Office of  Public Communication -- Washington, DC  20520 --  Managing Editor:  Peter A. Knecht  Department of State Publication 7855 -- Background Notes Series -- This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.  (###)</text>
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        <text>SOUTH KOREA BACKGROUND NOTES (APRIL 1991) (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEApril 1991FOREIGN RELATIONSSouth Korea is committed to peaceful settlement of international differences,a commitment best illustrated by its restrained response to a number ofprovocations by North Korea over the past 15 years. These include the1968 Blue House raid, the October 1983 bombing in Rangoon, Burma,which killed six of the ROK's most prominent leaders, and the November1987 bomb explosion aboard Korean Air Lines flight 858, in which 115 liveswere lost. Captured North Korean agents confessed to all of these acts.South Korea is becoming increasingly active in international affairs. Althoughnot a UN member, it has launched a campaign to join that organization.However, North Korea opposes separate admission to the UN on thegrounds that it would perpetuate the division of the peninsula; some of itsallies support this contention. South Korea presently has a UN observermission headed by an ambassador and is active in most UN specializedagencies. In addition, South Korea has made efforts to join or participateactively in many other international fora, ranging from the Antarctic Treatyto the Organization for Economic Cooperation and Development (OECD).South Korea today has diplomatic relations with 148 countries and an evenbroader network of trading relationships. It has hosted a series ofprestigious international events, including the 1988 summer Olympics. Atotal of 159 countries participated in the Seoul Olympics, making it thelargest Olympics ever. Only six nations followed North Korea's call toboycott. Chinese, Soviet, and Eastern European participation in the SeoulOlympics underscored and accelerated President Roh's policy of"Nordpolitik"--the pursuit of wide-ranging relations with socialist nations andcontacts and dialogue with North Korea.Nordpolitik has so far met with notable success. In February 1989, Hungarybecame the first communist nation to establish full diplomatic relations withthe ROK. The ROK now has diplomatic relations with all the countries ofEastern and Central Europe except Albania.  Nordpolitik's crowningachievement came in September 1990, when the ROK and USSR openedformal diplomatic relations. In early 1991 the ROK and People's Republic ofChina exchanged trade offices, a clear sign of improvement in relations anda possible first step toward eventual diplomatic relations.The South Korean government and politicians have long been concernedover the fate of the 35,000 Koreans on Sakhalin Island, now under Sovietcontrol. Koreans were originally brought to Sakhalin by the Japanese asforced labor. A series of semi-official Korean delegations visited Moscowand Sakhalin in 1989. These contacts resulted in Soviet agreement toincrease the flow of ethnic Koreans in Sakhalin allowed to visit South Korea.In addition, 20 first-generation Koreans from Sakhalin were repatriated in1988 after more than 40 years away from their homeland.Following the ratification in 1965 of a treaty normalizing relations betweenJapan and Korea, the two nations have developed an extensive relationshipcentering on mutually beneficial economic activity. Although the legacy ofhistoric antipathies has at times impeded cooperation, relations at thegovernment level have improved steadily and significantly in the past severalyears.Korea's economic growth, energy requirements, and need for basic rawmaterials and for markets have given economic considerations high priorityin the country's foreign policy. In light of these concerns, Korean diplomacyin recent years has also concentrated on broadening its international baseof support with Third World nations, the Association of Southeast AsianNations (ASEAN), and  Middle Eastern states.  Korea wants to participateactively in Pacific basin economic affairs.  It has offered to host in 1991 thethird ministerial meeting on Asia-Pacific Economic Cooperation initiated byAustralian Prime Minister Hawke.Negotiating Efforts with North KoreaThroughout the postwar period, both Korean governments have repeatedlyaffirmed their desire for reunification of the Korean peninsula, but, until 1971,the two governments had no direct, official communication or other contact.In August 1971, North and South Korea agreed to hold talks through theirrespective Red Cross societies with the aim of reuniting the many Koreanfamilies separated following the division of Korea and the Korean war. Aftera series of secret meetings, both sides announced on July 4, 1972, anagreement to work toward peaceful reunification and an end to the hostileatmosphere prevailing on the peninsula. Officials exchanged visits andregular communications were established through a south-northcoordinating committee and the Red Cross, but the two sides made nosubstantive progress. These initial contacts quickly broke down and finallyended on August 13, 1973. The breakdown reflected basic differences inapproach, with Pyongyang insisting on immediate steps toward reunificationbefore discussing specific issues and Seoul maintaining that, given the longhistory of mutual distrust, reunification must come through a gradual,step-by-step process.South Korea maintains that a meaningful dialogue should be based on defacto recognition of each other's existing political, social, and economicsystems. South Korea supports the recognition of both Koreas by the majorpowers in the region (US, USSR, PRC, and Japan), and the admission ofboth Koreas to the United Nations, pending peaceful reunification. NorthKorea currently rejects these ideas, although it applied for UN membershipin 1949 (following the lead of the ROK) and supported a Soviet Union draftin 1957, resubmitted in 1958, which called for "simultaneous UN admission."The North now argues that this proposal would perpetuate the peninsula'sdivision.Tension between North and South Korea increased dramatically in theaftermath of the 1983 North Korean assassination attempt on PresidentChun in Burma. North-South sports talks the following spring becameacrimonious after the Rangoon bombing. South Korea's suspicions of thenorth's motives were not diminished by Pyongyang's proposal for "tripartite"talks on the future of the Korean peninsula. This initiative, made public inJanuary 1984, called for talks with the United States in which "South Koreanauthorities" would be permitted to participate. The tripartite talks wouldreplace the armistice agreement with a peace treaty, which would providefor withdrawal of all US troops and set the stage for a declaration ofnon-aggression between north and south.North Korea's offer to provide relief goods to victims of severe flooding inSouth Korea in September 1984--and South Korean acceptance--led torevived dialogue on several fronts: Red Cross talks to address the plight ofseparated families, economic and trade talks, and parliamentary talks.However, in January 1986, the north unilaterally suspended all talks, arguingthat annual ROK/US military exercises were inconsistent with dialogue. Thenorth also announced a unilateral moratorium on large-scale militaryexercises and called upon the US and ROK to do the same. The US andthe ROK responded by reiterating their longstanding offer to allow DPRKofficials to observe exercises and by proposing pre-notification of militaryexercises. These proposals were rejected by the north, and in 1987 thenorth resumed large-scale exercises.In a major new initiative on July 7, 1988, South Korean President Roh TaeWoo called for new efforts to promote exchanges, family reunification,inter-Korean trade and contact in international fora. President Roh called onKorea's friends and allies to pursue contacts with the north and said thatthe south intended to seek better relations with the USSR and China.Roh's initiative provided renewed momentum to a dialogue suspended sincelate 1985. Over the following months, the two sides met several times atPanmunjom to try to arrange a joint meeting of the two Korean parliaments.In early 1989, both sides also met in preliminary meetings to discussarrangements for prime ministerial-level talks. In other fora, the two nationalOlympic committees met to discuss forming a joint team for the 1990 AsianGames in Beijing.In February 1989, North Korea suspended the parliamentary talks overUS-ROK military exercises. In April the north suspended the primeministerial talks and the sports talks until July, blaming South Korea's arrestof a dissident clergyman who visited North Korea without governmentapproval.In the fall of 1989, the dialogue resumed in four fora--athletic, Red Cross,parliamentary, and prime ministerial. In the Red Cross talks, there wereattempts to reach agreement on reunions of separated family members andexchanges of cultural arts troupes.Prime ministerial-level talks were initiated in 1990. Delegations met threetimes, although little concrete progress was made. The north cancelled thefourth meeting, scheduled for February 1991, once again citing annualexercises as the reason.Hopes for a summit (proposed repeatedly in the past) have also beenunfulfilled. President Roh, in a speech to the UN General Assembly inOctober 1988, offered to go to Pyongyang at any time to discuss any issue,including North Korea's call for a mutual declaration of non-aggression.North Korean President Kim Il Sung did not respond positively. Kim hadearlier stated that a summit must first take up his proposal for Koryoconfederation and withdrawal of US forces. In his 1989 New Year's address,Kim suggested that Roh come to Pyongyang as a party head in a groupwith southern opposition and dissident leaders. However, he later referredto Roh by his official title and, in his 1991 New Year's address, offered arevised version of his confederal proposal  in which he suggested thatregional governments would exercise independent foreign and defensepolicy.Following the ROK government's 1988 decision to allow trade with theDPRK, South Korean firms began to import North Korean goods, all viathird-country contracts. The DPRK has denounced and denied this trade.Nevertheless, the north publicized a late January 1989 visit by HyundaiCorporation founder Chong Chu Yong as well as a private protocol hesigned to develop tourism and other projects in the north.US-KOREAN RELATIONSThe United States remains committed to maintaining peace and stability onthe Korean peninsula. The United States agreed in the 1954 US-ROK MutualDefense  Treaty to help the Republic of Korea defend itself from externalaggression. In support of that commitment, the US maintains about 43,000service personnel in Korea, including the army's Second Infantry Divisionand several air force tactical squadrons. To coordinate operations betweenthese units and the 650,000-strong Korean armed forces, a combinedforces command (CFC) was established in 1978. The CFC is headed by aUS general who serves concurrently as commander in chief of the UNCommand (CINC-UNC). Several aspects of the security relationship arechanging as the US moves from a leading to a supporting role. South Koreahas agreed to pay more of the US defense costs, to fund relocation of thelarge US headquarters garrison at Yongsan from Seoul, and to acceptchanges in the CFC command structure.The United States supports direct, government-to-government talks betweenthe authorities of South and North Korea. The US believes that thefundamental decisions on the future of the Korean peninsula must be takenby the Korean people themselves. Therefore, the US has refused to bedrawn into separate negotiations on Korean issues with North Korea, asPyongyang has insisted.The most rapidly developing area in Korean-US relations is that ofeconomics and trade. Korea is now its seventh largest trading partner, andthe US seeks to improve its trade imbalance, through greater access toKorea's expanding market and improved investment opportunities for USbusiness. Although Korea is reluctant to abandon industrial  protection andthe state-directed industrial policy which played such an important role inits industrialization, Korean policy-makers increasingly claim to recognize thebenefits of liberalized trade for their economy. Korean leaders seemdetermined to manage successfully the complex economic relationship withthe United States and to take a more active role in international economicfora as befits Korea's status as a major trading nation.Since the 1950s, the US-Korean relationship has developed into one of themost important in Asia. The 1982 celebration of the centennial ofKorean-American diplomatic relations and President Reagan's 1983 visit toKorea underscored the quality of US-Korean relations. In 1989, asuccession of high-level visits--President Bush (February), Vice PresidentQuayle (September) and President Roh (October)--reaffirmed adetermination to develop and strengthen the bilateral relationship further.President Roh visited the US again in June 1990.Principal US OfficialsAmbassador--Donald P. GreggCommander in Chief, UNC--Gen. Robert RisCassiDeputy Chief of Mission--Raymond F. BurghardtCounselor for Political Affairs--E. Mason Hendrickson, Jr.Counselor for Economic Affairs--Richard MorfordCounselor for Administrative Affairs--Oliver P. GarzaCounselor for Public Affairs--John FredenbergConsul General--Edward H. WilkinsonCounselor for Commercial Affairs--Peter FrederickCounselor for Agricultural Affairs--George J. PopeChief, Joint US Military Advisory Group, Korea--Gen. Robert J. JellisonDefense Attache--Col. William McKinney, USAThe US Embassy is located at 82 Sejong-Ro, Chongro-Ku, Seoul; APO SanFrancisco 96301. Tel. [phone], Fax no. 82-2-738-8845.The US Agricultural Trade Office is located at 63, 1-Ka, Ulchi-Ro,Choong-Ku, Seoul. Fax no. 82-2-752-5626.The US Export Development Office/US Trade Center is c/o US Embassy.Fax no. 82-2-739-1628. Director: William M. Yarmy.TRAVEL NOTESClimate and clothing: Korea's temperate, four-season climate is like that ofthe eastern US.  Dress is more conservative than in the US.Visas: Visas are not required of tourists travelling to South Korea if their stayis less than 15 days or if they are simply transiting the country and have aticket for an onward destination. Tourist visas, which should be obtainedfrom a Korean consulate for longer stays, are issued for a 5-year periodwith multiple entries, but the length of any one visit should not exceed 90days. Visas are required for all official and business visitors. Noimmunizations are required of travelers from the US.Health: Health services are fair to good in most major cities. Most Koreanphysicians have been trained in Western medicine, and hospital services areadequate. Outside of the major hotels, water generally is not potable.Transportation: International airports serve Seoul (Kimpo), Pusan (Kimhae),and Cheju Island. Extensive intercity air, rail, and bus service is available.There is an excellent network of local bus, taxi, and, in Seoul, subwayservices.Telecommunications: Seoul is 14 time zones ahead of Eastern StandardTime (13 hrs. during daylight-saving time). International direct-dial serviceis available to Korea's major cities.Available from the Superintendent of Documents, US Government PrintingOffice, Washington, DC  20402:American University. South Korea--A Country Study. 1982.US Department of State. Key Officers of Foreign Service Posts. Triennial.. Korea Post Report. March 1986.. The Record on Korean Unification, 1943-1960. 1961.For information on economic trends, commercial development, production,trade regulations, and tariff rates, contact the International TradeAdministration,US Department of Commerce, Washington, DC 20230.</text>
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        <text>SOUTH KOREA BACKGROUND NOTES (APRIL 1991)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEApril 1991Republic of KoreaPROFILEGeographyArea: 98,500 sq. km. (38,000 sq. mi.); about the size of Indiana. Cities:Capital--Seoul (10 million). Other major cities--Pusan (3.5 million), Taegu (2million), Inchon (1.4 million). Terrain: Partially forested mountain rangesseparated by deep, narrow valleys; cultivated plains along the coasts,particularly in the west and south. Climate: Temperate.PeopleNationality: Noun and adjective--Korean(s). Population (1988): 43 million.Annual growth rate: 1%. Ethnic groups: Korean; small Chinese minority.Religions: Buddhism, Christianity, Shamanism, Confucianism. Language:Korean. Education: Years compulsory--6. Number of students--11,182,000.Attendance (1988)--of those eligible, 99% attended middle school, 94%attended high school.  Literacy--98%. Health (1987): 1 doctor/1,000persons. Infant mortality rate (1988)--6/1,000.  Life expectancy (1988)--men67 yrs., women 73 yrs.  Work force(17 million, 1988): Agriculture--21%. Industry--28%. Services--50%.GovernmentType: Republic with powers shared between the president and thelegislature. Independence: August 15, 1948. Constitution: July 17, 1948; lastrevised 1987.Branches: Executive--president (chief of state). Legislative--unicameralNational Assembly. Judicial--Supreme Court and appellate courts,Constitutional Court.Subdivisions: 9 provinces, 6 administratively separate cities (Seoul, Pusan,Inchon, Taegu, Kwangju, Taejon).Political parties: Government party--Democratic Liberal Party (DLP).Opposition parties--New Democratic Union (NDU) and Democratic Party(DP). Suffrage: Universal at 20.Central government budget (1991): Expenditures--$38 billion.Defense: $11 billion, about 4% of GNP in real terms and 29% of governmentbudget; about 650,000 troops.Flag: Centered on a white field is the ancient Chinese symbol of yin andyang; at each corner of the white field is a different trigram of black bars.EconomyGNP (1990 est.): $224 billion. Annual growth rate (1965-86): 7%; (1986-88):12%; (1990 est.): 9%. Per capita GNP: $5,500. Consumer price index (1990avg. increase): 9%.Natural resources: Limited coal, tungsten, iron ore, limestone, kaolinite, andgraphite.Agriculture, including forestry and fisheries (9% of 1990 GNP):Products--rice, barley, vegetables. Arable land--22% of land area.Mining and manufacturing (35% of 1990 GNP): Textiles, footwear,electronics, shipbuilding, motor vehicles, petrochemicals, industrialmachinery.Trade (1990): Exports--$65 billion:  manufactures, textiles, ships, electronics,footwear, steel. Major markets--US, Japan, European Community, MiddleEast. Imports--$70 billion: crude oil, food, machinery and transportationequipment, chemicals and chemical products, base metals and articles.Major suppliers--Japan, US, Middle East.Official exchange rate (December 1990): 715 won=US$1.Fiscal year: Calendar year.Membership in International OrganizationsOfficial observer status at UN; active in many UN specialized agencies(FAO, GATT, IAEA, IBRD, ICAO, IDA, IFAD, IFC, IMF, IMO, ITU, UNCTAD,UNDP, UNESCO, UNICEF, UNIDO, UPU, WHO, WIPO, WMO, WTO) andother international organizations (Economic and Social Commission for Asiaand the Pacific, Geneva Conventions of 1949 for the Protection of WarVictims, Asian Development Bank, INTELSAT, the Administrative Council ofthe International Telecommunications Council, International WhalingCommission, Interparliamentary Union, INTERPOL); official observer statusin African Development Bank (member of Africa Development Fund),International Labor Organization, and Organization of American States.PEOPLEKorea was first populated by a Tungusic branch of the Ural-Altaic family,which migrated to the peninsula from the northwestern regions of Asia.Some also settled parts of northeast China (Manchuria); Koreans andManchurians still show physical similarities--in their height, for example.Koreans are racially and linguistically homogeneous, with no sizeableindigenous minorities, except Chinese (50,000).South Korea's major population centers are in the northwest area ofSeoul-Inchon and in the fertile southern plain. The mountainous central andeastern areas are sparsely inhabited. Between 1925 and 1940, theJapanese colonial administration in Korea concentrated its industrialdevelopment efforts in the comparatively underpopulated and resource-richnorth, resulting in a considerable migration of people to the north from thesouthern agrarian provinces. This trend was reversed after World War II,when more than 2 million Koreans moved from the north to the southfollowing the division of the peninsula into US and Soviet military zones ofadministration. This southward migration continued after the Republic ofKorea was established in 1948 and during the Korean war (1950-53). About10% of the people in the Republic of Korea are of northern origin. With 43million people, South Korea has one of the world's highest populationdensities--much higher, for example, than India or Japan--while theterritorially larger North has about only 20 million people.  Ethnic Koreansnow residing in other countries live mostly in China (2.6 million), Japan(700,000), the United States (1.2 million), and the Soviet Union (500,000).LanguageKorean is a Uralic language, remotely related to Japanese, Hungarian,Finnish, and Mongolian. Although dialects exist, the Korean spokenthroughout the peninsula is mutually comprehensible. Chinese characterswere used to write Korean before the Korean Hangul alphabet was inventedin the 15th century. These characters are still in limited use in South Korea,but the North uses Hangul exclusively. Many older people retain someknowledge of Japanese from the colonial period (1910-45), and mosteducated Koreans can read English, which is taught in all secondaryschools.ReligionKorea's traditional religions are Shamanism and Buddhism. AlthoughBuddhism has lost some influence since the 15th  century, it still commandsthe greatest number of adherents of any faith--about 20% of the population.Shamanism  (traditional spirit worship)is still practiced in some rural areas. Although Confucianism remains thedominant cultural influence, its religious adherents are few and tend to beelderly. Christian missionaries arrived in Korea in the 19th century andfounded schools, hospitals, and other modern institutions throughout thecountry. Today, nearly 7 million Koreans, or 16% of the population, areChristians (about 78% Protestant)--the largest figure for any East Asiancountry except the Philippines. There are estimated to be 4 millionadherents of Chondogyo, a native religion founded in the mid-19th centurythat fuses elements of Confucianism and Christianity.HISTORYAccording to Korean legend, the god-king Tangun founded the Koreannation in BC 2333, after which his descendants reigned over a peacefulkingdom for more than a millennium. By the first century AD, the KoreanPeninsula, known as Chosun ("morning calm"), was divided into thekingdoms of Silla, Koguryo, and Paekche. The Silla kingdom unified thepeninsula in AD 668. The Koryo dynasty (from which is derived the Westernname "Korea") succeeded the Silla kingdom in 935. The Yi dynasty, whichsupplanted Koryo in 1392, lasted until the Japanese annexed Korea in 1910.Throughout most of its history, Korea has been invaded, influenced, andfought over by its larger neighbors. Korea was under Mongolian occupationfrom 1231 until the early 14th century and was devastated by a largenumber of Chinese rebel armies in 1359 and 1361; the Japanese warlordHideyoshi launched major invasions in 1592 and l597. In the mid-19thcentury under the Yi kings, Korea adopted a closed-door policy to ward offWestern encroachment, earning Korea the name of "Hermit Kingdom."Although the Yi Dynasty paid nominal fealty to the Chinese throne, Koreawas, in fact, independent until the late 19th century. At that time, Japanese,Chinese, and Russian competition in Northeast Asia led to armed conflict.Japan defeated its two competitors  and established dominance in Korea,formally annexing it in 1910. The Japanese colonial era, which lasted untilthe end of World War II, was characterized by tight control from Tokyo andruthless efforts to supplant Korean language and culture. Korean resistanceto such colonialism, notably in the 1919 Independence Movement, failed. Atthe April 1945 Yalta Conference, the United States and the Soviet Unionagreed to establish a joint trusteeship for Korea. The trusteeship wasintended as a temporary administrative measure pending democraticelections of a Korean government. The US proposed--and the Soviet Unionagreed--that Japanese forces surrender to US forces south of the 38thparallel and to Soviet forces north of that line.In the north, the Soviets initially transferred the administrative powers of theformer Japanese colonial government to "people's committees," and laterto a 5-province administrative bureau under the nationalist, Cho Man-Sik.Cho was later purged by the Soviets for opposing the decision of alliedforeign ministers at the Moscow Conference in December 1945 for a 5-yeartrusteeship, during which a Korean provisional government would preparefor full independence.In the south, the US military government in Korea (1945-48), headed by Lt.Gen. John R. Hodge, was marked by uncertainty and an unclear US policytoward Korea. The Moscow conference's decision for a trusteeship alsogenerated a firestorm of protest in South Korea. Trusteeship wasunacceptable to nationalist leader Syngman Rhee and other rightist Koreanleaders associated with the provisional government established in Shanghaiin 1919 by Korean nationalists living abroad. It was also opposed by groupswithin southern Korea who had established local self-governing bodies afterthe Japanese surrender.The US military government initially relied on the advice of conservativeelements but later tried to put together a moderate coalition to provide itwith a broader base of political support. In December 1946, the militarygovernment established an interim legislative assembly to draft legislationand appointed moderates to half the seats. (The others were indirectlyelected seats that went to rightists.) But the July 1947 assassination of aprominent leftist in the coalition and the decision of a coalition moderate toenter into unification talks with the north led to the demise of the coalitioneffort.The joint Soviet-American commission provided for by the Moscowconference met intermittently in Seoul but became deadlocked over theissue of free consultations with representatives of all Korean political groupsfor establish- ment of a national government. The US submitted the Koreanquestion to the UN General Assembly for resolution in September 1947.Korean ConflictThe Soviet Union and the Korean authorities in the north ignored the UNGeneral Assembly resolution of November 1947, which called forUN-supervised elections throughout Korea. Elections, nonetheless, werecarried out under UN observation in the south, and on August 15, 1948, theRepublic of Korea (ROK) was established.  Syngman Rhee, became therepublic's first president. On September 9, 1948, the Soviet Unionestablished the Democratic People's Republic of Korea (DPRK) in the northunder Kim Il Sung, a former anti-Japanese guerrilla who served with theSoviet Army in the Far East during World War II.Guerrilla fighting between southern and northern  forces intensified during1948-50. During this period, although the US provided modest military aidto the south, it planned and executed a withdrawal of its occupation forceswhich was completed by June 1949.A year later, on June 25, 1950, North Korean forces invaded South Korea.The UN, in accord with its charter, engaged in its first collective action byestablishing the UN Command (UNC), under which 16 member nations senttroops and assistance to South Korea.  At the request of the UN SecurityCouncil, the United States, which contributed the largest contingent, led thisinternational effort.After initially falling back to the Pusan perimeter, UN forces conducted asuccessful surprise landing at Inchon and rapidly advanced up thepeninsula. As the main UN force approached the Yalu River, large numbersof Chinese "people's volunteers" intervened, forcing UN troops to withdrawsouth of Seoul. The battle line seesawed back and forth until the late springof 1951, when a successful offensive by UN forces was halted to enhanceceasefire negotiations prospects. The battle line thereafter stabilized northof Seoul near the 38th parallel.Armistice negotiations began in July 1951, but hostilities continued until July27, 1953. On that date at Panmunjom, the military commanders of the NorthKorean Army, the Chinese People's Volunteers, and the UNC signed anarmistice agreement. Neither the United States nor South Korea is asignatory of the armistice per se, though both adhere to it through the UNC.No comprehensive peace agreement has replaced the 1953 armistice pact,which remains in force. Thus, a condition of belligerency still exists on thedivided peninsula. A Military Armistice Commission (MAC), composed of 10members, five appointed by each side, supervises implementation of thearmistice.In April 1954, an international conference on Korea met in Geneva butended without agreement or progress after 7 weeks of futile debate.Postwar DevelopmentsSyngman Rhee served as president of the Republic of Korea until April1960, when university students forced him to step down. A caretakergovernment was established, the constitution was amended, and nationalelections were held in June. The opposition Democratic Party easilydefeated Rhee's Liberals, and  the new National Assembly named ChangMyon prime minister in August.  Chang's democratic but ineffectualgovernment--the Second Republic--lasted until May 1961, when it wasoverthrown in an army coup led by Maj. Gen. Park Chung Hee.After 2 years of military government under Park, civilian rule was restoredwith the advent of the Third Republic in 1963. Park, who had retired fromthe army, was elected president (and was reelected in 1967, 1971, and1978).In 1972, a popular referendum approved the Yushin (revitalizing)constitution, greatly strengthening presidential and executive branchpowers. Key provisions included indirect election of the president,presidential appointment of one-third of the national assembly, andpresidential authority to issue decrees restricting civil liberties in times ofnational emergency. Park subsequently issued several such decrees; thebest-known of these, EM-9, banned discussion of false rumors, criticism ofthe constitution or advocacy of its reform, and political demonstrations bystudents.The Park era, marked by rapid industrial modernization and extraordinaryeconomic growth, ended with his assassination in October 1979. PrimeMinister Choi Kyu Ha assumed office briefly (the Fourth Republic),promising a new constitution and presidential elections. In December 1979,Maj. Gen. Chun Doo Hwan and close military colleagues removed the armychief of staff and soon effectively controlled the government.University student-led demonstra-tions spread in the spring of 1980. Thegovernment declared martial law in mid-May, banned all demonstrations,and arrested many political leaders and dissidents. Special forces units inthe city of Kwangju reacted harshly to any  who ignored the ban, setting offa confronta-tion which left 200 civilians dead. This incident left a wound thathas proven slow to heal. By September 1980, President Choi had beenforced to resign, and General Chun, by then retired from the army, wasnamed president.In October 1980, a referendum approved a new constitution, beginning theFifth Republic. This document retained key features of earlier ones,including a strong executive and indirect election of the president, butlimited the chief executive to one 7-year term. Elections were held in early1981 for a National Assembly and an electoral college; the latter electedPresident Chun to a 7-year term (1981-1988).Although martial law ended in January 1981, the government retained broadlegal powers to control dissent. An active and articulate minority of students,intellectuals, clergy, and others remained critical of the Chun governmentand demonstrated against it. Demonstrations at Inchon in May 1986 and atKonkuk University in fall 1986 were marred by violence.In April 1986, the president responded to a signature campaign by theopposition New Korea Democratic Party (NKDP), which called for directelection of the next president by amending the constitution. The NKDP soonsplit into two opposition parties--Kim Dae Jung's Peace and DemocracyParty (PPD) and Kim Young Sam's Reunification Democratic Party (RDP).They agreed on eight demands for reform including constitutional revision,repeal or revision of onerous laws, and release of political prisoners.President Chun, who could not succeed himself, pledged in early 1987 thathe would step down at the end of his term in February 1988. Chunsuspended all discussion of constitutional revision in June 1987, and theruling Democratic Justice Party approved Chun's hand-picked successor,Roh Tae Woo. Students, and then the general public, took to the streets toprotest Chun's suspension of constitutional revision. On June 29, in asurprise move, presidential candidate Roh Tae Woo distanced himself fromPresident Chun by announcing that he would implement democratic reformsif elected. The constitution was revised in October to include directpresidential elections and a strengthened National Assembly consisting of299 members.In December 1987 Roh Tae Woo won with 37% of the vote in the first directpresidential election since 1971. The two leading opposition leaders, KimDae Jung and Kim Young Sam, unable to agree on a single candidate, bothran and lost. Kim Dae Jung, Kim Young Sam, and former prime ministerKim Jong Pil polled 27, 28 and 10%, respectively.The new constitution entered into force in February 1988, when PresidentRoh assumed office. Elections for the national assembly were held on April26. In a stunning upset, President Roh's ruling Democratic Justice Party(DJP) won only 34% of the popular vote, thereby losing control of theassembly for the first time since 1952. The final count was 125 seats for theDJP, 70 seats for Kim Dae Jung's Party for Peace and Democracy (PPD),59 seats for Kim Young Sam's Reunification Democratic Party (RDP), 35seats for Kim Jong Pil's New Democratic Republican Party (NDRP), and 10for independent candidates.The new opposition-dominated national assembly quickly challenged thepresident's prerogatives. In July 1988 it turned down President Roh's choicefor chief of the Supreme Court. In the fall, the assembly conducted the firstgovernment audit in 16 years and began televised hearings into practicesand policies of former President Chun's Fifth Republic. By late November,Chun was forced to make a public apology to the nation, turn over hispersonal wealth to the nation, and go into internal exile in a Buddhisttemple. In December, the government and the assembly for the first timeworked together to pass the budget, which the government had previouslyhanded down.After months of speculation and demands from the opposition thatPresident Roh hold the interim assessment on his administration  that hehad promised while campaigning, Roh decided in March 1989 to postponethe evaluation indefinitely, citing the unstable political situation. Labor,farmer, and student unrest continued despite Roh's promises of furtherreforms.In April 1989, the government began cracking down against leftist elementsit maintained were destabilizing the country. The nation was shocked by thedeaths of seven policeman in Pusan in a confrontation with students. Thiswas soon followed by the illegal visit of 71-year old dissident Rev. Moon IkKwan to North Korea. Rev. Moon embraced North Korean leader Kim IlSung while in Pyongyang and was arrested upon his return to South Korea.In July, student activist Yim Su Kyong made an unauthorized visit to theNorth to attend Pyongyang's World Youth Festival and was arrested. InAugust opposition leader Kim Dae Jung was indicted in connection withunauthorized visits to North Korea by one of his party members, Suh KyongWon. In October the government acknowledged that 1,315 people had beenarrested in the first 9 months of 1989, including 284 for security violations.South Korean politics have changed dramatically because of  the 1988legislative elections, the assembly's greater powers under the 1987constitution, and the influence of public opinion. There has been significantpolitical liberalization since 1987, including freedom of the press and greaterfreedoms of expression and assembly than in the past. In 1988, thegovernment released several hundred political prisoners and restored thecivil rights of former detainees. In 1989, the government asserted itsprerogatives to maintain public stability, raising concerns over human rightsissues.The nation was stunned in January 1990 when the 3 political parties led byPresident Roh, Kim Young Sam, and Kim Jong Pil merged to form a newmajority party, the Democratic Liberal Party (DLP). This new alliance left KimDae Jung and his Party for Peace and Democracy (PPD) as the primaryopposition, since the tiny Democratic Party (DP) controlled just eight seatsin the National Assembly. In July 1990, the DLP passed several significantbills without debate, and the PPD and the DP precipitated a legislative crisisby announcing a boycott of the national assembly.  The PPD returned to theassembly in November, only after getting assurances on several issues,including greater local autonomy. In March 1990 the ROK held its first localelections in 30 years. Further local elections were planned for June 1991,and the trend toward greater democratization continued to gain momentum. Principal Government OfficialsPresident--Roh Tae WooPrime Minister--Roh Jae BongDeputy Prime Minister; Chairman, Economic Planning Board--Lee SeungYunMinister of Foreign Affairs--Lee Sang OckMinister of National Defense--Lee Jong KuAmbassador to the United States--Hyun Hong ChooAmbassador to the UN--Roe Chang HeeSpeaker of the National Assembly--Park Jyun KyuKorea maintains an embassy in the United States at 2320 MassachusettsAvenue NW., Washington, DC 20008 (tel. [phone]).ECONOMYOver the past 25 years, the Republic of Korea's economic growth has beenspectacular. Despite the need to maintain a large military, South Korea, oneof the world's poorest countries only a generation ago, is now the UnitedStates' seventh largest trading partner and a middle-ranking industrialpower. Lacking natural resources, Korea's greatest asset is its industrious,literate people.The division of the Korean peninsula in 1945 created two unbalancedeconomic units. North Korea inherited most of the peninsula's mineral andhydroelectric resources and most of the heavy industrial base built by theJapanese. South Korea was left with a large, unskilled labor pool and mostof the peninsula's limited agricultural resources. Both north and southsuffered massive destruction in the Korean war, but an influx of refugeesadded to the south's economic woes. South Korea began the postwarperiod with a per capita gross national product (GNP) far below that of thenorth. It received large amounts of US foreign assistance until the 1970s. AllUS direct aid was stopped in 1980.South Korea's meager mineral resources include tungsten, anthracite coal,iron ore, limestone, kaolinite, and graphite. There is no oil, and energy is acontinuing concern for the ROK's economic planners. An ambitiousprogram to develop nuclear power iswell underway; Korea now has eight nuclear plants in operation, one underconstruction and two planned. The nation's successful industrial growthprogram began in the early 1960s, when the Park government institutedsweeping economic reforms emphasizing exports and labor-intensive lightindustries. The government also carried out a currency reform,strengthened financial institutions, and introduced flexible economicplanning.From 1963 to 1978, real GNP rose at an annual rate of nearly 10%, withaverage real growth of more than 11% for the years 1973-78. While Korea'snational production was rising throughout the 1960s and 1970s, the annualpopulation growth rate declined to the current 1%, resulting in a 20-foldincrease in per capita GNP. Per capita GNP, which reached $100 for thefirst time in 1963, now exceeds $4,000, or four times that of North Korea.The political and social unrest that followed the 1979 assassination ofPresident Park and the effect of world economic developments, includingthe drastic increase in world oil prices in 1979, triggered a severe recessionin Korea. In the early 1980s, external debt was a serious concern, peakingat $47 billion in 1985. The economy had already recovered somewhat bythe spring of 1983 when a strengthening US economy helped stimulateKorean economic performance. From 1986 to 1988, booming exports ledonce again to high growth rates averaging 12% per year. Current accountsurpluses reached a total of $14 billion by the end of 1988, at which timeforeign debt had decreased to $31 billion--18% of GNP and 44% of exports.Korea registered bilateral trade surpluses of about  $10 billion with the USin 1987 and 1988. In 1989, Korea's global trade and current accountsurpluses and bilateral surplus with the US declined dramatically, due to anumber of factors: appreciation of the won, labor disputes, cumulative wageincreases and strong domestic demand. The surplus remainedapproximately $4 billion in 1990. It has yet to be demonstrated, however,whether a structural, lasting decline in Korea's surplus has begun.Long-term growth prospects remain bright. External factors will remainimportant. Korea continues to emphasize exports, while the quicklyexpanding domestic market provides greater economy of scale. The abilityto adapt to a more open system suitable to a growing democracy and toKorea's greater role in the world economy are important to the continuedsuccess of the Korean economy.</text>
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        <text>BACKGROUND NOTES:  KIRIBATIPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEJANUARY 1994Official Name:  Republic of KiribatiPROFILEGeographyArea:  719 sq. km. (266 sq. mi.).  Capital:  Tarawa.  Terrain:Archipelago of low-lying coral atolls surrounded by extensivereefs.  Climate:  Hot and humid, moderated by trade winds.PeopleNationality:  Noun and adjective--Kiribatian(s).  Population(July 1992):  74,788; Tarawa (1988):  22,000.  Annual growth rate(1992):  2.1%.  Ethnic groups:  Predominantly Micronesian, withsome Polynesian.  Religions:  48% Roman Catholic, 45% Protestant(Congregational), some Seventh-day Adventist and Baha'i.Languages:  English (official), Gilbertese.  Education (1985):Compulsory through age 11.  Literacy--90%.  Health (1990):Infant mortality rate--99/1,000.  Life expectancy--52 yrs. male,56 yrs. female.  Work force:  7,800.GovernmentType:  Republic.  Independence:  July 12, 1979, from the UnitedKingdom; formerly Gilbert Islands.  Constitution:  July 12, 1979.Branches:  Executive--president, vice president, cabinet.Legislative--unicameral house of assembly (Maneaba NiMaungatabu).  Judicial--court of appeal, high court.Administrative divisions:  Three units--Gilbert Islands, LineIslands, Phoenix Islands.  Political parties:  GilberteseNational Party; Christian Democratic Party.  Suffrage:  Universalat 18.Flag:  Upper half red with a yellow frigate bird flying over ayellow rising sun; lower half blue with three wavy bands.EconomyGNP (1992 est.):  $36.8 million.  Per capita GNP (1992 est.):$525.Natural resources:  Fish.  Agriculture:  30% of GDP (includingfishing); copra and fish make up 95% of exports; subsistencefarming predominates; food crops--taro, coconuts, bananas,pandanus, papayas, breadfruit, sweet potatoes, vegetables.Industry:  fishing, handicrafts.Trade (est.): Exports--$6 million:  fish 55%, copra 42%.Principal partners--EC, Marshall Islands, U.S., American Samoa.Imports (1990 est.)--$27 million:  foodstuffs, fuel,transportation equipment.  Principal partners--Australia, Japan,New Zealand, United Kingdom, U.S.Exchange rate  (1992):  U.S.$0.70= Aus$1.PEOPLEKiribatians mostly live in villages with populations between 50and 3,000 on the outer islands.  Most houses are made ofmaterials obtained from coconut and pandanus trees.Due to frequent droughts and the lack of large crops, theislanders have found it necessary to turn to the sea forlivelihood.  Most are outrigger sailors and fishers.  Copraplantations serve as a second source of employment.  In recentyears, large numbers of Kiribatians have moved to the more urbanisland capital of Tarawa.To increase the opportunities of the islanders, the governmenthas placed greater emphasis on education.  Primary education isfree and compulsory for the first six years.  Mission schools areslowly being absorbed into the government primary school system.Higher education is expanding; students may seek technical,teacher, or marine training or study in other countries (usuallyin Fiji).HISTORYKiribatians are Micronesians, but recent archeological evidenceindicates that the islands were originally settled byAustronesians thousands of years ago.  Around the 14th centuryA.D., the islands were invaded by Fijians and Tongans.Intermarriage led to a population reasonably homogeneous inappearance and traditions.The first recorded European encounter with Kiribati was by theSpanish explorer Quiros in 1606.  By the 1820s, all of theislands had been charted.  At that time, the Russian hydrographerA.I. Krusenstern gave the group the name Gilbert Islands.  Untilabout 1870, many British and American whaling vessels soughtsperm whales in Gilbertese waters.  Starting in 1850, tradingvessels passed through, seeking first coconut oil and then copra.In the 1860s, "black- birders" (slave ships) carried offislanders to work on plantations in Peru and, later, in Fiji,Tahiti, Hawaii, and Australia.  Not only did this practice reducethe number of men on the islands, it also introduced Europeandiseases, such as measles, against which the islanders had littleresistance.  With the people's consent, the Ellice groups (nowTuvalu) and the Gilbert Islands became a British protectorate in1892, in the hope of eradicating slave raids and incessant tribalwarfare.In 1900, phosphate was discovered on Ocean Island.  A surge ofBritish interest in the area resulted, and more islands wereplaced under the British protectorate.  Phosphate was thepredominant source of income for Kiribati until 1979, whendeposits were exhausted.Japan seized the islands in 1941.  On November 21, 1943, Americanforces launched their first penetration of Japan's ring of islanddefenses by attacking the Tarawa islet of Betio.  Tarawa Atollwas the setting for one of the bloodiest battles in the Pacificand was a major turning point in the war for the Allies.One of the most important post-war moves in the main islands wasthe strengthening of the cooperatives.  New rules made itunprofitable for overseas trading firms to reestablishthemselves.  Kiribatians gained a stronger voice in the affairsof the colony during the 1950s and 1960s, when an advisorycouncil and, later, a house of representatives with powers ofrecommendation were created.  In 1974, the colony moved forwardto a ministerial form of government.  In 1975, the Ellice Islandsseceded from the colony and became the independent nation ofTuvalu.  On July 12, 1979, Kiribati obtained its own independencefrom the United Kingdom and became a republic within theCommonwealth.GOVERNMENTKiribati's constitution, promulgated July 12, 1979, provides forfree and open elections.  The executive branch consists of apresident, a vice president, and a cabinet.  Under theconstitution, the president, nominated from among the electedmembers of the House of Assembly, is limited to three four-yearterms.  The president does not represent a political party.  Thecabinet is composed of the president, vice president, and no morethan eight members of the House of Assembly (appointed by thepresident).The legislative branch is the unicameral House of Assembly(Maneaba Ni Maungatabu).  The legislature consists of 35 electedmembers, including a representative of the Banaban (OceanIslanders) people and the attorney-general as an ex-officiomember.The constitutional provisions governing the administration ofjustice are similar to those in other former British possessionsin that the judiciary is free from governmental interference.The judicial branch is made up of the high court and the court ofappeal.  The presiding judges are appointed by the president.Local government is through island councils with elected members.Local affairs are handled in a manner similar to town meetings incolonial America.  Island councils make their own estimates ofrevenue and expenditure and are generally free of centralgovernment controls.Principal Government OfficialsPresident and Minister of Foreign Affairs--Hon. Teatao TeannakiV.P./Minister of Finance and Economic Planning--Taomati T. IutaPOLITICAL CONDITIONSTraditionally, Kiribati had no formally organized parties.Instead, ad hoc opposition groups tended to coalesce aroundspecific issues.  Today, the only recognizable parties are theGilbertese National Party and the Christian Democratic Party.There is universal suffrage at 18.A major source of conflict has been the protracted bid by theresidents of Banaban Island to secede and have their islandplaced under the protection of Fiji.  The government's attemptsto placate the Banabans include specific provisions in theconstitution, such as giving them a seat in the house of assemblyand returning to them land on Banaban acquired by the governmentfor phosphate mining.ECONOMYKiribati's economy is very small and has fluctuated widely inrecent years.  The country has few natural resources.  Phosphatedeposits had already been  exhausted by the time of independencein 1979.  Most people are engaged in subsistence agriculture butare not self-sufficient in food.  In the 12 years sinceindependence, the government has focused on private sectorinvolvement in development, extensive use of joint ventures, anda stable partnership with business.The islands' isolation and meager resources, including poor soiland limited arable land, severely limit prospects for economicdevelopment.  Moreover, development efforts are hampered bytransportation difficulties, overcrowding on Tarawa and shortagesof trained workers and management.Copra and fish now represent the bulk of production and exports(95%).  Real GDP declined about 8% in 1987, as the fish catchfell by 75% from 1986 levels, and copra production was hamperedby repeated rains.  Output rebounded strongly in 1988, with realGDP growing by 17%.  The upturn in economic growth came from anincrease in copra production and a good fish catch.  Followingthe strong surge in output in 1988, GDP increased 1% in 1989 and1990.Efforts are being made to diversify the economy, primarilythrough fisheries projects and tourism.  The creation of the200-mile economic and fisheries zone has given islanders hopes ofdeveloping their marine resources to a point where fish could bethe country's main source of revenue through export earnings andlicensing fees paid by fishing nations like Japan and the UnitedStates.  A regional survey of fish resources by the South PacificCommission has revealed large stocks of tuna in Kiribatianwaters.FOREIGN RELATIONSKiribati maintains cordial relations with most countries and hasclose relations with its Pacific neighbors, the United Kingdom,and Japan; the latter two provide the majority of the country'sforeign aid.  Taiwan and Japan also have specified-periodlicenses to fish in Kiribati's waters.U.S.-KIRIBATI RELATIONSIn September 1979, a treaty of friendship was signed between theRepublic of Kiribati and the United States.  In 1983 the U.S.Senate approved recognition of Kiribati's sovereignty over theLine and Phoenix island groups.The United States has no consular or diplomatic offices inKiribati.  Officers of the American embassy in Suva, Fiji, areconcurrently accredited to Kiribati and make periodic visits.There is little trade between the United States and Kiribati.The U.S. Agency for International Development administers amodest regional aid program that benefits Kiribati.  Peace Corpsvolunteers teach and provide technical assistance throughoutKiribati.Principal U.S. OfficialsCharge d' affairs:  Michael W. MarinePublic Affairs Officer--Charla HattonMilitary Attache:  Lt. Col. Kip Naugle (USMC)Consul--Linda BrownPeace Corps Co-Directors:  David and Paulette HasselThe Peace Corps co-directors are resident in Kiribati, but allother officials are in Suva, Fiji.  The U.S. embassy at Suva,Fiji, is located at 31 Loftus Street (P.O. Box 218), Suva (tel.314-466).Travel NotesCustoms:  A passport and visa are required for entry and exit. Inaddition,  travelers must have a ticket to leave with confirmedonward reservations and necessary documentation to depart to athird country.Climate and clothing:  Temperatures remain constant at  80OF.Modest light-weight casual clothing, preferably cotton, isrecommended.  During the winter months, westerly gales bring rainand sticky discomfort.Health:  Drink only bottled or boiled water.  Cholera andyellow-fever inoculations are required.Published by the United States Department of State  Bureau ofPublic Affairs  Office of  Public Communication  Washington, DCManaging Editor: Peter Knecht.Department of State Publication 10104.  January 1994  BackgroundNotes SeriesContents of this publication are not copyrighted unlessindicated.  If not copyrighted, the material may be reproducedwithout consent; citation of the publication as the source isappreciated.  Permission to reproduce any copyrighted material(including photos and graphics) must be obtained from theoriginal source.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC  20402..</text>
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        <text>BACKGROUND NOTES:  KENYAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEMAY 1994Official Name:  Republic of KenyaPROFILEGeographyArea:  582,646 sq.  km.  (224,960 sq mi.); slightly smaller than Texas.Cities:  Capital- -Nairobi (pop.  1.2 million in 1991).  Other cities--Mombasa(450,000), Kisumu (150,000), Nakuru (150,000).Terrain:  Kenya rises from a low coastal plain on the Indian Ocean in a seriesof mountain ridges and plateaus which stand above 3,000 meters (9,000 ft.) inthe center of the country.  The Rift Valley bisects the country above Nairobiopening up to arid plain in the north.  Mountain plains cover the south beforedescending to the shores of Lake Victoria in the west.Climate:  Varies from the tropical south, west, and central regions to aridand semi-arid wasteland in the north and the northeast.PeopleNationality:  Noun and adjective--Kenyan(s).  Population (1992 est.):  26million.  Annual growth rate (1992 est.):  3.4%.  Ethnic groups:African--Kikuyu 21%, Luhya 14%, Luo 13%, Kalenjin 11%, Kamba 11%, Kisii 6%,Meru 5%.  Non-African--Asian, European, Arab 1%.  Religions:  Indigenousbeliefs 24%, Protestant 40%, Roman Catholic 30%, Muslim 6%.  Languages:English, Swahili, many local ethnic languages.  Education:  Yearscompulsory--none, but first 8 yrs.  of primary school are provided free bygovernment.  Attendance--83% for primary grades.  Literacy (in English)--59%.Health:  Infant mortality rate--70/1,000.  Life expectancy--59 yrs.  Workforce (1.4 million wage earners):  Public sector--48%.  Industry andcommerce--21%.  Agriculture--21%.GovernmentType:  Republic.Independence:  December 12, 1963.Constitution:  1963.Branches:  Executive--president (chief of state, head of government,commander-in-chief of armed forces).  Legislative--unicameral NationalAssembly (parliament).  Judicial-- Court of Appeal, High Court, various lowercourts.  Administrative subdivisions:  42 rural districts, joined to form 7rural provinces.  Nairobi area has special status.  Political Parties:  RulingParty:  Kenya African National Union.  Suffrage:  Universal at 18.  Flag:Black, red, and green horizontal bands from top to bottom separated by narrowwhite stripes.  A warrior's shield and crossed spears are centered on flag.EconomyGDP (1992):  $8.7 billion.Annual growth rate (1992):  -0.5%.Per capita income:  $350.Natural resources:  Wildlife, land.Agriculture:  Products--corn, wheat, rice, sugarcane, coffee, tea, sisal,pineapples, horticultural products, pyrethrum, meat and meat products, hides,skins.  Arable land--20%.Industry:  Types--petroleum product, cement, beer, light manufacturing.Trade:  Exports--$952 million:  coffee, petroleum products, tea, hides andskins, meat and meat products, cement, pyrethrum, sisal, soda ash, wattleextract, pineapples.  Major markets--U.K., Germany, Netherlands, U.S., Uganda,France, Italy, Tanzania, and India.  Imports--$1.8 billion:  crude petroleum,machinery, vehicles, iron and steel, paper and paper products,pharmaceuticals, fertilizers, textiles.  Major suppliers--U.K., Germany,France, Italy, U.S., United Arab Emirates, Saudi Arabia, Japan, India,Netherlands, and China.Official exchange rate:  63 Kenya shillings (Ksh)=U.S.$1.PEOPLEKenya's population is varied.  Traditional herders, Arab Muslims, andcosmopolitan residents of Nairobi contribute to the culture.  The standard ofliving in major cities ranks high in Sub-Saharan Africa.  Most city workersretain links with their rural, extended families and leave the cityperiodically to help work on the family farm.  About 75% of the work force isengaged in agriculture, mainly as subsistence farmers.  The urban sectoremploys about 1.4 million people.The national motto of Kenya is harambee, meaning "pull together." In thatspirit, volunteers in hundreds of communities build schools, clinics, andother facilities each year and collect funds to send students abroad.The four state universities enroll about 20,000 students, representing only40% of the Kenyan students who qualify for admission.HISTORYFossils found in East Africa suggest that proto- humans roamed the area morethan 20 million years ago.  Recent finds near Kenya's Lake Turkana indicatethat the Homo genus of humans lived in the area 2.6 million years ago.Cushitic-speaking people, who occupied the area from about 1000 BC, receivedArab traders by the first century AD.  Kenya's proximity to the ArabianPeninsula invited colonization, and Arab and Persian settlements were foundedalong the coast by the eighth century AD.  By then, Bantu and Nilotic peopleshad moved into the area.The Swahili language, a mixture of Bantu and Arabic, developed as a linguafranca for trade between the different peoples.  Arab dominance was eclipsedby the arrival in 1498 of the Portuguese, who gave way in turn to Islamiccontrol under the Imam of Oman in the 1600s.  Britain established itsinfluence in the 19th century.The colonial history of Kenya dates from the Berlin Conference of 1885, whenthe European powers first par-titioned East Africa into spheres of influence.In 1895, the British Gov- ernment established the East African Protectorateand, soon after, opened the fertile highlands to white settlers.  The settlerswere allowed a voice in government even before it was officially made aBritish colony in 1920, but Africans were prohibited from direct politicalparticipation until 1944.From October 1952 to December 1959, Kenya was under a state of emer-gencyarising from the "Mau Mau" rebellion against British colonial rule.  Duringthis period, African participation in the political process increased rapidly.The first direct elections for Africans to the Legislative Council took placein 1957.  Kenya became independent on December 12, 1963, and the next yearjoined the Commonwealth.Jomo Kenyatta, a member of the predominant Kikuyu tribe and head of the KenyaAfrican National Union (KANU), became Kenya's first president.  The minorityparty, Kenya African Democratic Union (KADU), representing a coalition ofsmall tribes that had feared dominance by larger ones, dissolved itselfvoluntarily in 1964 and joined KANU.A small but significant leftist opposition party, the Kenya People's Union(KPU), emerged in 1966, led by Jara-mogi Oginga Odinga, a former vicepresident and Luo elder.  After the 1969 assassination of a leading governmentofficial, Tom Mboya, and subsequent political tension, the KPU was banned andits leader detained.  No new opposition parties were formed after 1969, andKANU became the sole and ruling political party.  At Kenyatta's death inAugust 1978, Vice President Daniel arap Moi became interim President.  OnOctober 14, Moi became President in his own right after he was elected head ofKANU and designated its sole nominee.In June 1982, the National Assembly amended the constitution, making Kenya ade jure one-party state, and parliamentary elections were held in September1983.  The 1988 elections reinforced the one-party system.  In December 1991,parliament repealed the one-party section of the constitution, allowing otherparties to register.  By early 1992, several new parties had been formed, andmulti-party elections were held in December 1992.  President Moi was reelectedfor another five-year term.  Opposition party members won about 45% of theparliamentary seats; President Moi's KANU party maintains a parliamentarymajority.GOVERNMENTThe unicameral assembly consists of 188 members elected to a term of up tofive years, plus 12 members appointed by the president.  The presidentappoints the vice president and cabinet members from among those elected tothe assembly.  The attorney general and the speaker are ex officio members ofthe National Assembly.The judiciary is headed by a High Court, consisting of a chief justice and atleast 11 associate judges, all appointed by the president.Local administration is divided among 42 rural districts, each headed by apresidentially appointed commissioner.  The districts are joined to form sevenrural provinces.  The Nairobi area has special status and is not included inany district or province.  The government supervises administration ofdistricts and provinces.Principal Government OfficialsPresident and Commander in Chief of the Armed Forces--  Daniel Toroitich arap MoiVice President and Minister of Finance--Prof. George SaitotiMinister Foreign Affairs--Stephen Kalonzo MusyokaAmbassador to the United States--Benjamin KipkorirAmbassador to the United Nations--Raphael KiiluKenya maintains an embassy in the United States at 2249 R Street NW,Washington, DC 20008 (tel.  [phone]).POLITICAL CONDITIONSSince independence, Kenya has maintained remarkable stability during manychanges within the political system.  Although the government has pursuedAfricanization in the economic and labor sectors, Asians and Europeansparticipate significantly.  Development remains the dominant agenda for theMoi Administration.ECONOMYAfter independence, Kenya promoted rapid economic growth through publicinvestment, encouragement of smallholder agricultural production, andincentives for private (often foreign) industrial investment.  Gross domesticproduct (GDP) grew at an annual average of 6.6% from 1963 to 1973.Agricultural production grew by 4.7% annually during the same period,stimulated by redistributing estates, diffusing new crop strains, and openingnew areas to cultivation.Vulnerable to swings in its international terms- of-trade, Kenya has found itsforeign exchange shortages worsened by a rapid rise in import prices,especially for oil, and a sharp drop in prices for export crops coffee andtea.Economic growth has declined since 1973, and real GDP grew by less than 5%during 1980-91.  Agricultural production, accounting for about one-third ofGDP and almost two-thirds of non- petroleum exports, averaged growth of lessthan 4% per year.Bad weather and decreased international demand contributed to this trend, butinconsistencies in domestic pricing policy and credit availability, as well asinadequate marketing systems, have been equally important.The government must also deal with a rapidly growing population, which hasincreased unemployment and strained Kenya's educational facilities.  Thepopulation growth rate (3.4% per year) is one of the world's highest.Population growth contributes to unemployment, running at 30%-40%.Joblessness is highest in urban areas, where the formal wage-earning sector ishard pressed to absorb annual increases.  Pressure on social services is alsomost apparent in the cities.With less than 20% of the land classified as arable and much of that alreadydensely populated, increases in food crop production have not kept pace withpopulation growth.  When crops fail because of drought, as in 1984, largeamounts of food must be imported.Kenya's manufacturing sector suffers from the consequences of earlier policydecisions.  The initial and rapid growth of industrial production in Kenya wasbased on investment in import substitution, often by multi-national companies,protected by extensive quantitative import barriers against competition.  As aresult, manufacturing firms now tend to be non- competitive.Following a recessionary slump in the mid- 1980s, the government launched awide-ranging structural adjustment program designed to attain real-per-capitaincome growth.  With external donors' cooperation in the form of greatlyincreased assistance flows from external donors, the government committeditself to major economic policy changes, including price decontrols,privatization, parastatal reform, and reduction of government budget deficits.In addition, an import liberalization scheme was established, agriculturalprices were made somewhat more responsive to market demand, and the privatesector was given a bigger role in marketing agricultural products.  Exportprocessing zones were established and exporters awarded better incentives.  Inprinciple, the government agreed to limit the public sector deficit and netborrowing from the banking sector, but it failed either to curb the risingbudget deficit or implement many reforms.By mid-1991, the growth rate in agricultural production was 3.4%,manufacturing was stagnating, and tourism--the major source of foreignexchange earnings--was in a slump induced by the Gulf war.  The rate ofcapital accumulation was declining, inflation was skyrocketing (25%-30%), andthe government deficit was up to 6.7% of GDP.In November 1991, assistance donors agreed to suspend all programs and cashassistance pending evidence of active reform measures.  Primary areas ofconcern continue to be decreasing the growing budget deficit, scaling back thecivil service, and privatizing some of the most wasteful parastatalscorporations.Nairobi continues to be a major hub in East Africa with the region's besttransportation linkages, communications infrastructure, and trained personnel.Thus, it is still a desirable place for foreign firms to maintain branch andrepresentative offices, although many companies find it difficult to transferout dividends.FOREIGN RELATIONSDespite internal tensions in Sudan and Ethiopia, Kenya has maintained goodrelations with its northern neighbors.  Recent relations with Uganda andTanzania have improved as the three countries work for mutual economicbenefit.  The lack of a cohesive government in Somalia prevents normal contactwith that country, although Kenya serves as the major host for refugees fromthat conflict.Kenya maintains a moderate profile in Third World politics.  Kenya's relationswith Western countries are generally friendly, although current political andeconomic instabilities are often blamed on Western pressures.U.S.-KENYAN RELATIONSU.S.  assistance to Kenya promotes broad-based economic development as thebasis for continued progress in political, social, and related areas ofnational life.  U.S.  aid strategy is designed to achieve three majorobjectives:--  Reduced population growth;--  Increased agricultural productivity; and--  Increased role of private enterprise in the economy.It focuses on small farmers and the rural landless, a group that comprisesmore than four- fifths of Kenya's poorest citizens and accounts for aboutone-quarter of the population.  The U.S.  Peace Corps has more than 165volunteers in Kenya.The United States and Kenya have enjoyed cordial relations.  More than 6,000U.S.  citizens live in Kenya, and about 35,000 Americans visit annually.About two-thirds of the resident Americans are missionaries and theirfamilies.  U.S.  business investment is about $350 million, primarily incommerce, light manufacturing, and the tourist industry.Principal U.S.  Embassy Officials Ambassador--Aurelia Brazeal Deputy Chief ofMission--E.  Michael Southwick USAID Mission Director--John R.  Westley PublicAffairs Officer (USIS)--Frederick E.V.  La SorThe U.S.  embassy in Kenya is located at Haile Selassie and Moi Avenues,Nairobi, PO Box 30137 (tel.  334141; fax 340838).  The U.S.  Consulate Generalin Mombasa is in Palli House, Nyerere Avenue, PO Box 88079 (tel.  315101).Travel NotesClimate and clothing:  Light- and medium-weight clothing is worn most of theyear.  Sweaters and light raincoats are needed during the rainy seasons.Customs:  U.S.  citizens entering Kenya need a passport and visa.Health:  No special precautions are required in Nairobi, and adequate hospitaland outpatient treatment is available in the city.  Outside the capital, avoidtapwater and unwashed fruits and vegetables.  Anti-malarial tablets and yellowfever, polio, typhoid, and hepatitis immunizations are recommended fortravelers outside the capital.Transportation:  Many inter-national airlines serve Nairobi.  Most major townsare linked by Kenya Airways flights, good passenger train services, andintercity bus services.  Places of special tourist interest are served bylocal light-aircraft companies.  Taxis are abundant in Nairobi.Published by the United States Department of State -- Bureau of Public Affairs-- Office of Public Communication -- Washington, DC May 1994 -- ManagingEditor:  Peter A.  Knecht -- Editor:  Christina MacdonaldDepartment of State Publication 8024 -- Background Notes Series.  Contents ofthis publication are not copyrighted unless indicated.  If not copyrighted,the material may be reproduced without consent; citation of the publication asthe source is appreciated.  Permission to reproduce any copyrighed material(including photos and graphics) must be obtained from the original source.For sale by the Superintendent of Documents, U.S.  Government Printing Office,Washington, DC 20402.</text>
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        <text>U.S. Department of State Background Notes:  Jordan, October 1995 Bureau of Public Affairs   October 1995 Official Name:  Hashemite Kingdom of Jordan  PROFILE  Geography *   Area:  89,544 sq. km. (34,573 sq. mi.). Cities:  Capital--Amman (pop. 1 million).  Other cities--Irbid (281,000), Az-Zarqa (421,000).  People   Nationality:  Noun and adjective--Jordanian(s). Population (est.):  3.9 million. Religions:  Sunni Muslim 95% (est.), Christian 5% (est.). Languages:  Arabic (official), English. Education:  Literacy (1992)--82%. Health:  Infant mortality rate (1992)--27/1,000.  Life expectancy (1992)--70 yrs. Ethnic groups:  Mostly Arab, but small communities of Circassians, Armenians, and Kurds. Work force (750,000):  Government and services--47%.  Manufacturing and mining--25%.  Trade--16%.  Agriculture--12%.  Government   Type:  Constitutional monarchy. Independence:  May 25, 1946. Constitution:  January 8, 1952. Branches:  Executive--king (chief of state), prime minister (head of government), council of ministers (cabinet).  Legislative--bicameral National Assembly (appointed Senate, elected Chamber of Deputies).  Judicial--civil, religious, special courts. Political parties:  Wide spectrum of parties legalized in 1992. Suffrage:  Universal at 19. Administrative subdivisions:  Eight governorates--Irbid, al-Mafraq, al-Zarqa, Amman, al-Balqa, al-Karak, al-Tafilah, and Ma'an.  Economy  GDP (1994 est.):  $6.1 billion. Annual growth rate (1994 est.):  5.5%. Per capita GDP (1994 est.):  $1,565. Natural resources:  Phosphate, potash. Agriculture:  Products--fruits, vegetables, wheat, olive oil.  Land--10% arable. Industry (30% of GDP):  Types--phosphate mining, manufacturing, and cement and petroleum production. Trade (1993 est.):  Exports--$1.2 billion:  phosphates, fruits, vegetables.  Major markets--Iraq, Saudi Arabia, U.S.  Imports--$3.4 billion:  machinery, transportation equipment, cereals, petroleum products.  Major suppliers--U.S., Iraq, Japan, U.K., Syria. Official exchange rate (September 1995):  0.71 Jordanian dinar=U.S. $1.  * From 1949 to 1967, Jordan administered that part of former mandate Palestine west of the Jordan River known as the West Bank.  Since the 1967 war, when Israel took control of this territory, the United States has considered the West Bank to be territory occupied by Israel.  The United States believes that the final status of the West Bank can be determined only through negotiations among the parties concerned on the basis of Security Council Resolutions 242 and 338.  PEOPLE  Jordanians are Arabs, except for a few small communities of Circassians, Armenians, and Kurds which have adapted to Arab culture.  The official language is Arabic, but English is used widely in commerce and government.  About 70% of Jordan's population is urban; less than 6% of the rural population is nomadic or seminomadic.  Most people live where the rainfall supports agriculture.  About 1.5 million Palestinian Arabs--including more than 950,000 registered refugees and displaced persons--reside in Jordan, many as citizens.  HISTORY  The land that became Jordan is part of the richly historical Fertile Crescent region.  Its history began around 2000 B.C., when Semitic Amorites settled around the Jordan River in the area called Canaan.  Subsequent invaders and settlers included Hittites, Egyptians, Israelites, Assyrians, Babylonians, Persians, Greeks, Romans, Arab Muslims, Christian Crusaders, Mameluks, Ottoman Turks, and, finally, the British.  At the end of World War I, the territory now comprising Israel, Jordan, the West Bank, Gaza, and Jerusalem was awarded to the United Kingdom by the League of Nations as the mandate for Palestine and Transjordan.  In 1922, the British divided the mandate by establishing the semiautonomous Emirate of Transjordan, ruled by the Hashemite Prince Abdullah, while continuing the administration of Palestine under a British High Commissioner.  The mandate over Transjordan ended on May 22, 1946; on May 25, the country became the independent Hashemite Kingdom of Transjordan.  It continued to have a special defense treaty relationship with the United Kingdom until 1957, when the treaty was dissolved by mutual consent.  The British mandate over Palestine ended on May 14, 1948, and the State of Israel was proclaimed.  Neighboring Arab states, including Transjordan, moved to assist Palestinian nationalists opposed to this development, resulting in open warfare between the Arab states and the newly founded State of Israel.  The armistice agreements of April 3, 1949, established armistice demarcation lines between Jordan and Israel, leaving Jordan in control of the West Bank.  The agreements expressly provided that the armistice demarcation lines were without prejudice to future territorial settlements or boundary lines.    In 1950, the country was renamed the Hashemite Kingdom of Jordan to include those portions of Palestine annexed by King Abdullah.  Jordan established three governorates on the West Bank:  Nablus, al-Quds (Jerusalem), and al-Khalil.  While recognizing Jordanian administration over the West Bank, the United States maintained the position that ultimate sovereignty was subject to future agreement.  Jordan signed a mutual defense pact in May 1967 with Egypt, and it participated in the June 1967 war between Israel and the Arab states of Syria, Egypt, and Iraq.  After repelling the Arab attack, Israel extended its control to the Jordan River, including Jordanian-controlled eastern Jerusalem.  In 1988, Jordan renounced all claims to the West Bank but retained an administrative role pending a final settlement on the West Bank.  The U.S. Government considers the West Bank to be territory occupied by Israel and believes that its final status should be determined through direct negotiations among the parties concerned on the basis of UN Security Council Resolutions 242 and 338.  The 1967 war led to a dramatic increase in the number of Palestinians living in Jordan.  Its Palestinian refugee population--700,000 in 1966--grew by another 300,000 from the West Bank.  The period following the 1967 war saw an upsurge in the power and importance of Palestinian resistance elements (fedayeen) in Jordan.  Differing with the Jordanian Government's policies, the heavily armed fedayeen constituted a growing threat to the sovereignty and security of the Hashemite state.  Tensions between the government and the fedayeen increased until open fighting erupted in June 1970.  Other Arab governments attempted to work out a peaceful solution, but by September, continuing fedayeen actions in Jordan--including the destruction of three international airliners hijacked and held in the desert east of Amman--prompted the government to take action to regain control over its territory and population.  In the ensuing heavy fighting, a Syrian tank force (camouflaged as a Palestinian force) initially took up positions in northern Jordan to support the fedayeen.  By September 22, Arab foreign ministers meeting at Cairo had arranged a cease-fire beginning the following day.  Sporadic violence continued, however, until Jordanian forces won a decisive victory over the fedayeen in July 1971, expelling them from the country.  Since then, the fedayeen have not presented a threat to the Jordanian Government.  No fighting occurred along the 1967 Jordan River cease-fire line during the October 1973 Arab-Israeli war, but Jordan sent a brigade to Syria to fight Israeli units on Syrian territory.  Jordan did not participate in the Gulf war of 1990-91.  Except for a period of border tension with Syria in 1980, it has been at de facto peace with all its neighbors.  In 1991, Jordan agreed, along with Syria, Lebanon, and Palestinian representatives, to participate in direct peace negotiations with Israel sponsored by the U.S. and Russia.  GOVERNMENT  Jordan is a constitutional monarchy based on the constitution promulgated on January 8, 1952.  Executive authority is vested in the king and his council of ministers.  The king signs and executes all laws.  His veto power may be overridden by a two-thirds vote of both houses of the National Assembly.  He appoints and may dismiss all judges by decree, approves amendments to the constitution, declares war, and commands the armed forces.  Cabinet decisions, court judgments, and the national currency are issued in his name.  The council of ministers, led by a prime minister, is appointed by the king, who may dismiss other cabinet members at the prime minister's request.  The cabinet is responsible to the Chamber of Deputies on matters of general policy and can be forced to resign by a two-thirds vote of "no confidence" by that body.  Legislative power rests in the bicameral National Assembly.  The 80-member Chamber of Deputies, elected by universal suffrage to a four-year term, is subject to dissolution by the king.  Of the 80 seats, 71 must go to Muslims and nine to Christians.  The 40-member Senate is appointed by the king for an eight-year term.  The constitution provides for three categories of courts--civil, religious, and special.  Administratively, Jordan is divided into eight governorates, each headed by a governor appointed by the king.  They are the sole authorities for all government departments and development projects in their respective areas.  Principal Government Officials   Chief of State--King Hussein I  Prime Minister, Minister of Defense--Sharif Zayd Bin Shakir Foreign Minister--Abdul Karim Kabariti Ambassador to the U.S.--Fayez Tarawneh Ambassador to the UN--Adnan Abu Odeh  Jordan maintains an embassy in the United States at 3504 International Drive NW, Washington, DC 20008  (tel. [phone]).  POLITICAL CONDITIONS  King Hussein has ruled Jordan since 1953 and has survived a number of challenges to his rule, drawing on the loyalty of his military and serving as a symbol of unity and stability for both the East Bank and Palestinian communities in Jordan.  In 1989 and 1993, Jordan held free and fair parliamentary elections.  Islamists are represented in but do not dominate the parliament.  King Hussein has shown a commitment to democratization, most importantly by ending martial law in 1991 and legalizing political parties in 1992.  Jordan's continuing structural economic difficulties, burgeoning population, and more open political environment have led to the emergence of a variety of political parties.  Moving toward greater independence, parliament has investigated corruption charges against several regime figures and has become the major forum in which differing political views, including those of political Islamists, are expressed.  While King Hussein remains the ultimate authority in Jordan, the parliament plays an important role.  Although Jordan in 1988 disengaged from the West Bank and ceased efforts to restore the country's 1948-67 position, it retains considerable influence in the West Bank--for example, regulating the operations of Jordanian banks and issuing limited-validity Jordanian passports to West Bankers.  ECONOMY  Jordan is a small country with limited natural resources.  Just over 10% of its land is arable, and even that is subject to the vagaries of a limited water supply. Rainfall is low and highly variable, and much of Jordan's available ground water is not renewable.  Jordan's economic resource base traditionally has centered on phosphates, potash, and their fertilizer derivatives; overseas remittances; and foreign aid.  These are its principal sources of hard currency earnings.  Lacking forests, coal reserves, hydroelectric power, or commercially viable oil deposits, Jordan relies on natural gas for 10% of its domestic energy needs.  For the other 90%, Jordan depends entirely on its oil-producing neighbors.  Although the population is highly educated, its high growth rate (3.4%) and relative youth (more than 50% of Jordanians are under 16) will make it difficult for the economy to generate jobs and sustain living standards.  Jordan's distance from other markets makes its exports less competitive outside the region, and political disputes among its traditional trading partners (Iraq, Saudi Arabia, and the Gulf states) frequently restrict regional trade and development.  Since 1987, Jordan has struggled with a substantial debt burden, lower per capita income, and rising unemployment.  From 1988-90, the official cost of living index rose 56%, while the dinar lost 51% of its value against the dollar.  In 1989, Jordan concluded an 18-month standby arrangement (SBA) with the IMF and achieved agreement with Paris Club creditors to reschedule $573 million of debt.  At the same time, to increase revenues, the government raised prices of certain commodities and utilities, triggering riots in the south.  The mood of political discontent that swept the country in the wake of the riots helped set the stage for Jordan's moves toward democratization.  The SBA was derailed by economic consequences of the 1990-91 Gulf war.  While tourist trade plummeted, the Gulf states' decision to limit economic ties with Jordan deprived it of worker remittances, traditional export markets, a secure supply of oil, and substantial foreign aid revenues.  UN sanctions against Iraq-- Jordan's largest pre-war trading partner--caused further hard-ships, including higher shipping costs due to inspections of cargo shipments entering the Gulf of Aqaba.  Finally, absorbing up to 300,000 returnees from the Gulf countries exacerbated unemployment and strained the government's ability to provide essential services.  In February 1992, Jordan renewed its commitment to pursuing long-term economic growth and entered into another 18-month standby arrangement with the IMF, followed by another Paris Club rescheduling of $771 million.  Success in implementing its economic reform program will depend upon how effectively the government can stimulate private enterprise and encourage trade and investment in productive enterprises.  In 1992, economic performance was solid:  With all IMF targets met by wide margins, Jordan's $4.7-billion economy grew an impressive 11%.  Inflation was held to 6.8%, but unemployment persisted at high levels (20%-25%).  Although much of the 1992 growth resulted from non-recurring factors--a construction boom and customs receipts generated by Gulf war returnees--Jordan experienced growth of about 6% in 1993.  Further economic reform efforts are likely to be tempered by concerns about effects on low-income voters.  With parliament playing a more active role in the formulation of economic policy, it may be difficult to impose further belt-tightening measures.  In the near term, Jordan will continue to depend on foreign grants and concessional loans to further its development efforts.  While in the past the largest aid flows have come from the Arab states, the United States and other Western countries also have been important sources of development funds.  During the first half of 1994, Jordan's economy dipped into recession.  Its prospects for growth in the second half improved following Jordan's additional rescheduling of debt with Paris Club creditors, decisions by the U.S. and U.K. to forgive its official debt, and growing confidence as a result of progress in the Middle East peace process.  FOREIGN RELATIONS  Jordan has consistently followed a pro-Western foreign policy and traditionally has had close relations with the United States and the United Kingdom.  These relations were damaged by support in Jordan for Iraq during the Gulf war.  Although the Government of Jordan stated its opposition to the Iraqi occupation of Kuwait, popular support for Iraq was driven by Jordan's Palestinian community, which favored Saddam as a champion against Western supporters of Israel.  Since the end of the war, Jordan has largely restored its relations with Western countries through its participation in the Middle East peace process and enforcement of UN sanctions against Iraq.  Relations between Jordan and the Gulf countries have improved only slightly since the Gulf crisis.  Jordan signed a non-belligerency agreement with Israel (the Washington Declaration) in Washington, DC, on   July 25, 1994.  Jordan and Israel signed a historic peace treaty on October 26, 1994, witnessed by President Clinton, accompanied by Secretary Christopher.    The U.S. has participated with Jordan and Israel in trilateral development discussions in which key issues have been water-sharing and security; cooperation on Jordan Rift Valley development; infrastructure projects; and trade, finance, and banking issues.  Jordan also participates in the multilateral peace talks.  Jordan belongs to the UN and several of its specialized and related agencies, including the Food and Agriculture Organization (FAO), International Atomic Energy Agency (IAEA), and World Health Organization (WHO).  Jordan also is a member of the World Bank, International Monetary Fund (IMF), Organization of the Islamic Conference (OIC), INTELSAT, Nonaligned Movement, and Arab League.  U.S.-JORDANIAN RELATIONS  Relations between the U.S. and Jordan have been close for four decades.  A primary objective of U.S. policy, particularly since the end of the Gulf war, has been the achievement of a comprehensive, just, and lasting peace in the Middle East.  Jordan's constructive participation in the Madrid peace process is key in achieving peace.  U.S. policy seeks to reinforce Jordan's commitment to democratization, stability, and moderation.  The peace process and Jordan's opposition to terrorism parallel and indirectly assist wider U.S. interests.  Accordingly, through economic and military assistance and through close political cooperation, the United States has helped Jordan maintain its stability and move forward with democratization.  Recently, though, a declining U.S. foreign assistance budget has limited its ability to assist Jordan.  Since 1952, the United States has provided Jordan with economic assistance totaling more than $1.5 billion, including funds for development projects, health care, support for macro-economic policy shifts toward a more completely free-market system, and both grant and loan acquisition of U.S. agricultural commodities.  These programs have been overwhelmingly successful and have contributed to Jordanian stability while strengthening the bilateral relationship.  U.S. military assistance--provision of materiel and training--is designed to meet Jordan's legitimate defense needs, including preservation of border integrity and regional stability.  Principal U.S. Officials   Ambassador--Wesley W. Egan  Deputy Chief of Mission--Robert Beecroft  The U.S. embassy in Jordan is located in Abdoun, Amman (tel. 820-101) and is closed on all U.S. federal holidays and some Jordanian holidays.  ============================== Background Notes Series -- Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of Public Communication  --  Washington, DC  --  This material is in the public domain and can be reproduced without consent; citation of this source is appreciated. (###)</text>
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        <text>U.S. Department of StateBackground Notes:  Japan, November 1995Bureau of Public AffairsNovember 1995Official Name:  JapanPROFILEGeographyArea:  377,765 sq. km. (145,856 sq. mi.); slightly smaller than California.Cities:  Capital--Tokyo.  Other cities--Yokohama, Osaka, Nagoya, Sapporo, Kobe, Kyoto, Fukuoka.Terrain:  Rugged, mountainous islands.Climate:  Varies from subtropical to temperate.PeopleNationality:  Noun and adjective--Japanese.Population (1994):  125 million.Growth rate (1994):  0.3%.Ethnic groups:  Japanese; Korean (0.6%).Religions:  Shinto and Buddhist; Christian (about 1%).Language:  Japanese.Education:  Literacy--99%.Health:  Life expectancy (1993)--males 76 yrs., females 82 yrs.Work force (60 million):  Services--49%; Trade, manufacturing, mining, and construction--31%; Agriculture--6%; Government--3%.GovernmentType:  Parliamentary democracy.Constitution:  May 3, 1947.Branches:  Executive--prime minister (head of government); Legislative--bicameral Diet (House of Representatives and House of Councillors); Judicial--Civil law system with Anglo-American influence.Administrative subdivisions:  47 prefectures.Political parties:  Liberal Democratic Party (LDP), Japan Socialist Party (JSP), New Party Sakigake, New Frontier Party (NFP), Japan Communist Party (JCP).Suffrage:  Universal at 20.EconomyGDP (1994):  $4.6 trillion.Growth rate:  0.5%.Per capita GDP:  $36,000.Natural resources:  Negligible mineral resources, fish.Agriculture:  Products--rice, vegetables, fruits, milk, meat, silk.Industry:  Types--machinery and equipment, metals and metal products, textiles, autos, chemicals, electrical and electronic equipment.Trade (1994):  Exports--$395 billion:  motor vehicles, machinery and equipment, electrical and electronic products, metals and metal products.  Major markets--U.S. 30%, Western Europe 14%, developing countries 48%.  Imports--$274 billion:  fossil fuels, metal ore, raw materials, foodstuffs, machinery and equipment.  Major suppliers--U.S. 23%, Western Europe 13%, developing countries 50%.U.S.-JAPAN RELATIONSThe close and cooperative relationship with Japan is the cornerstone of U.S. policy in Asia and the basis of a strong, productive partnership in addressing global issues.  Despite different social and cultural traditions, Japan and the United States have much in common.  Both have open, democratic societies, high literacy, freedom of expression, multiparty political systems, universal suffrage, and open elections. Both have highly developed free-market industrial economies and favor an open and active international trading system; along with North America and Western Europe, Japan is one of the three major industrial complexes among the market economies.In accordance with Japan's enhanced international influence and its continued close ties with the United States, the two governments have developed a close global partnership to address shared priorities.  An example of that partnership is the U.S.-Japan Common Agenda, a set of global initiatives in such areas as the environment, technology development, and health.  Under the Common Agenda, the United States and Japan are coordinating $12 billion in population and HIV/AIDS assistance to developing countries and conducting joint research on advanced transportation and environmental technologies.  The two governments are also cooperating closely on issues as diverse as ocean pollution, children's vaccines, narcotics demand reduction, the role of women in development, and the protection of forests and coral reefs.Japan has been an active member of the United Nations since 1956, including participating in peacekeeping operations.  Japan strongly supports the U.S. in its efforts to encourage Pyongyang to abide by the nuclear Non-Proliferation Treaty and its agreements with the International Atomic Energy Agency (IAEA).Bilateral trade problems attract significant attention and often generate considerable controversy within the relationship.  The United States is working hard to achieve greater access to Japan's markets and has made progress.  Trade problems may be the most visible and contentious part of an extremely broad and important relationship.  Overall U.S. policy toward Japan goes well beyond the problem areas and is based on three principles:--  First, the United States has worked to achieve a close bilateral relationship with Japan as an equal partner.  The past decade has brought a significant expansion of Japan's economic and technological prowess, an increase in its defense awareness and capability, and a greater interest and involvement in international political and economic affairs.  Although there are still differences in their relative political, economic, and military positions in the world, both nations approach and conduct their relationship as equals.--  Second, because of the two countries' combined economic and technological impact on the world (together accounting for 40% of world GDP and 60% of the Western industrialized nations' GDP), the U.S.-Japan relationship has become global in scope.  Although in the past the partnership has been measured primarily in economic and technological terms, in the future it will have a larger political dimension.  Presently, Japan assumes a greater international role and associates itself more actively and closely with Western political and security goals.--  Third, Japan is becoming increasingly assertive in global matters and is forging a wider international role.The United States encourages this trend toward a broader international political and economic role by Japan, within the framework of a continued close bilateral relationship.  The United States has called for a "global partnership" with Japan, in which the combined efforts of the two countries can be utilized to promote peace and prosperity throughout the world.Security RelationshipAfter World War II, Japan was placed under international control of the Allies through a Supreme Commander, Gen. Douglas MacArthur.  U.S. objectives were to ensure that Japan would become a peaceful nation and to establish democratic self-government supported by the freely expressed will of the people.  Political, economic, and social reforms were introduced, such as a freely elected Japanese Diet (legislature).  The April 28, 1952, treaty of peace with Japan afforded a progressive and orderly transition from the stringent controls immediately following the surrender to the restoration of full sovereignty.The U.S.-Japan security relationship dates from this time in the early 1950s, when Japan was virtually defenseless.  The U.S.-Japan Treaty of Mutual Cooperation and Security came into force on June 23, 1960, and in June 1970 became subject to abrogation upon one year's notice.  At the time, both governments declared their intention to extend the treaty indefinitely.Under the treaty, Japan hosts a carrier battle group, the III Marine Expeditionary Force, the 5th Air Force, and the Army's I Corps.  For Japan, the treaty provides a strategic guarantee against external attack.  The bases and facilities provided by Japan under the treaty also bolster U.S. maintenance of commitments to other allies in Asia.  U.S. military assistance to Japan was terminated at the end of 1967.  Since the end of U.S. occupation in 1952, U.S. military forces in Japan have decreased from more than 260,000 to about 47,000--more than half of whom are stationed in Okinawa--plus an additional 13,000 on board U.S. Navy ships based in Japan.As U.S. forces withdrew, Japan's self-defense force (SDF) expanded capabilities and assumed primary responsibility for the immediate conventional national defense.  The SDF mission, which the United States supports, is the defense of Japan's homeland, territorial seas and skies, and sea lines of communication out to 1,000 nautical miles.  Japan has increased its defense budget annually and continues to make qualitative force improvements.  As a matter of policy, Japan has forsworn nuclear armaments and forbids arms sales abroad.  A bilateral agreement signed in 1983, however, allows the export of Japanese defense and dual-use technology to the United States.In addition to its own forces, Japan also, as noted, provides bases and facilities to U.S. forces in Japan.  In FY 1994, the Japanese Government contributed $4.8 billion to U.S. forces.Trade and InvestmentThe United States is Japan's largest trading partner; Japan is the second-largest U.S. trading partner after Canada.  Bilateral merchandise trade totaled $172 billion in 1994.  Japan imported $53 billion of U.S. goods in 1994.  Manufactured goods constituted 63% of U.S. exports to Japan in 1993, and the leading U.S. export to Japan that year was machinery and transport equipment.  Japan is a major market for many U.S. manufactured goods, including chemicals, pharmaceuticals, photo supplies, commercial aircraft, non-ferrous metals, plastics, and medical and scientific supplies.  Japan is also the largest foreign market for U.S. agricultural products, with imports valued at more than $9.2 billion in 1994.The U.S. trade deficit with Japan, which grew to $66 billion in 1994, continues to be a source of significant bilateral friction.  Japan's trade surplus with the rest of the world including the U.S. swelled in the early 1990s.  Its depressed economy dampened the demand for imported goods; there remain significant barriers to foreign imports and investment in certain sectors of the Japanese economy.  U.S. trade policy has concentrated on encouraging macroeconomic measures to return the country to a path of high growth; negotiating the elimination of formal and informal market barriers in specific sectors; and encouraging structural change to increase Japanese imports of manufactured products and foreign direct investment.  The United States pursues these objectives through a variety of bilateral mechanisms and through multilateral forums such as the G-7, the GATT/World Trade Organization, and the Organization for Economic Cooperation and Development (OECD).There have been some encouraging trends.  Between 1985 and 1994, U.S. exports to Japan more than doubled, from $23 billion to $53 billion.  In certain sectors, U.S. firms have gained a significant or even dominant market share in the Japanese market.  As part of the GATT Uruguay Round agreement, Japan agreed in December 1993 to open its rice market, which had historically been closed to foreign rice.  It also agreed to cut or eliminate tariffs and eliminate quotas on a wide range of other goods.  Partially offsetting the massive bilateral deficit in merchandise trade is the roughly $12 billion U.S. surplus in services with Japan including tourism and education.The United States is committed to opening Japan's markets more fully and ensuring that competitive U.S. and other foreign exports have fair access to the Japanese market.  In July 1993, the United States and Japan announced the U.S.-Japan Framework for Economic Partnership, which aims at resolving the imbalance in the bilateral economic relationship by addressing its macro-economic, structural, and sectoral causes.  The framework calls for agreements in a wide range of sectors that will lead to tangible market-opening progress that can be measured by objective qualitative and quantitative criteria.The framework consists of five broad "baskets":  government procurement; regulatory reform and competitiveness; economic harmonization; implementation of existing arrangements and measures; and other major sectors (autos and auto parts).  Each basket encompasses a range of working groups with a more narrowly defined agenda.Since January 1993, the U.S. and Japan have signed 20 trade agreements, most of them under the "framework-plus-four" of the GATT Uruguay Round.  U.S. and Japanese negotiators concluded framework agreements on government procurement of telecommunications and medical technology products and services in November 1994; flat glass in January 1995; financial services in February 1995; and autos and auto parts in August 1995.  Agreements on intellectual property rights, insurance, cellular phones, and various agricultural products--including apples--were also signed in 1994.The framework follows two earlier bilateral initiatives that led to market-opening in Japan:  the MOSS (Market-Oriented, Sector-Selective) Talks on specific sectors of interest, initiated in 1985, and the Structural Impediments Initiative, begun in 1989.  Through these initiatives, both countries committed themselves to comprehensive measures to reduce impediments to competitive imports as found, for instance, in marketing and distribution systems, savings and investment patterns, and government-business relations.In addition to these broad initiatives, the United States and Japan have over the last decade signed bilateral agreements to open Japan's markets.  These agreements cover a wide range of sectors, including computers, beef, citrus, manufactured tobacco products, paper, and semiconductors.There are considerable investment flows between the United States and Japan.  U.S. direct investment in Japan was $37 billion at the end of 1994, much of it in finance, banking, and manufacturing; this was up from $6.4 billion in 1982.  Many American companies have found Japan to be a large and profitable market.  Nevertheless, American firms continue to encounter a range of formal and informal barriers to investment in Japan, and Japan continues to host a far smaller share of global foreign direct investment than any of its G-7 counterparts.  Japanese direct investment in the United States rose dramatically in the late 1980s, then leveled off somewhat in the 1990s.  Japanese investment in the United States stood at $103 billion at the end of 1994, most of that in manufacturing, real estate, and finance.Principal U.S. Embassy OfficialsAmbassador--Walter F. MondaleDeputy Chief of Mission--Rust M. DemingEconomic Minister-Counselor--John H. PenfoldPolitical Minister--Neil SilverCommercial Minister--George MuDefense Attache--Capt. George R. McWilliams, USNThe street address and the international mailing address of the U.S. embassy in Japan is 10-5 Akasaka 1-chome, Minato-ku, Tokyo (107); tel [phone]; fax [phone].The American Chamber of Commerce in Japan is at 7th floor, Fukide No. 2 Bldg., 1-21 Toranomon 4-chome, Minato-ku, Tokyo (105).GOVERNMENT AND POLITICAL CONDITIONSJapan is a constitutional monarchy with a parliamentary government.  The country's constitution took effect on May 3, 1947.  Japan has universal adult suffrage with a secret ballot for all elective offices.  The government consists of an executive branch responsible to the Diet and an independent judicial branch.  Sovereignty, previously embodied in the emperor, is vested in the Japanese people, and the emperor is defined as the symbol of the state.The government is patterned on the British parliamentary model, with a House of Representatives and a House of Councillors.  Executive power is vested in a cabinet composed of a prime minister and ministers of state, all of whom must be civilians.  The prime minister must be a member of the Diet and is designated by his colleagues.  The prime minister has the power to appoint and remove ministers, a majority of whom must be Diet members.Japan's judicial system, based on the model of Roman law, consists of several levels of courts, with the Supreme Court as the final judicial authority.  The Japanese constitution includes a bill of rights similar to the U.S. Bill of Rights, and the Supreme Court has the right of judicial review.  Japanese courts do not use a jury system, and there are no administrative courts or claims courts.  Because of the judicial system's basis, court decisions are made in accordance with legal statutes.  Only Supreme Court decisions have any direct effect on later interpretation of the law.Japan does not have a federal system, and its 47 prefectures are not sovereign entities in the sense that U.S. states are.  Most depend on the central government for subsidies.  Governors of prefectures, mayors of municipalities, and prefectural and municipal assembly members are popularly elected for four-year terms.Article IX of the Japanese constitution provides that "land, sea, and air forces, as well as other war potential, will never be maintained."  At the same time, the Japanese Government accepts Article 51 of the UN Charter that each nation has the right of self-defense against armed attack.  In 1954, the Japan Defense Agency was created with the specific mission of defending Japan against external aggression.  Ground, maritime, and air self-defense forces were established.  In recent years, the Japanese public has shown a substantially greater awareness of security issues and increasing support for the SDF.  This is in part due to successful disaster relief efforts at home and peacekeeping operations in Cambodia.  However, there are still significant political and psychological constraints on strengthening Japan's defense.Diet Lower House elections on July 18, 1993, were a watershed event.  The Liberal Democratic Party (LDP), in power since the mid-1950s, failed to win a majority and saw the end of its four-decade rule.  A coalition of new parties and existing opposition parties succeeded in forming a governing majority and electing a new Prime Minister, Morihiro Hosokawa, in August 1993.  His government's major legislative objective was political reform, consisting of a package of new political financing restrictions and major changes in the electoral system.  The coalition succeeded in passing landmark political reform legislation in January 1994.Under the new legislation, 300 members will be elected to the Diet's lower house in single-member districts and another 200 members on proportional slates in 11 regions.  The single-member district aspect of the new system is expected to promote the creation of two major party groupings; the regional proportional slates will be relatively advantageous to smaller parties.  If this system works as advocates hope, Japan will see a regular alternation in office of competing political parties.  The new electoral system will also be much closer to the ideal of one-person/one-vote by reducing the number of seats in overrepresented rural areas and shifting them to some urban areas.Prime Minister Hosokawa resigned in April 1994.  Prime Minister Tsutomu Hata formed the successor coalition government, Japan's first minority government in almost 40 years.  Prime Minister Hata resigned less than two months later.  Prime Minister Tomiichi Murayama formed the next government in June 1994, a coalition of his Japan Socialist Party (JSP), the LDP, and the small New Party Sakigake.  The advent of a coalition containing the JSP and LDP shocked many observers because of their previously fierce rivalry.Principal Government OfficialsPrime Minister--Tomiichi MurayamaDeputy Prime Minister/Minister of International Trade and Industry--Ryutaro HashimotoMinister of Foreign Affairs--Yohei KonoAmbassador to the U.S.--Takakazu KuriyamaAmbassador to the UN--Hisashi OwadaJapan maintains an embassy in the United States at 2520 Massachusetts Avenue NW, Washington, DC 20008 (tel. [phone]).The Japan National Tourist Organization is at 630 Fifth Avenue, New York, NY 10111.TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel.  [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ============================== Background Notes Series --  Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC  This material is in the public domain and may be reproduced without permission; citation of this source is appreciated. (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: JAMAICAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  JamaicaPROFILEGeographyArea:  10,991 sq. km. (4,244 sq. mi.).Cities:  Capital--Kingston (pop. 566,200).  Other cities--Montego Bay (85,500), Spanish Town (112,000).Terrain:  Mountainous.Climate:  Tropical.PeopleNationality:  Noun and adjective--Jamaican(s).Population (1993 est.):  2.5 million.Annual growth rate (1975-93):  1%.Ethnic groups:  African 77,  Afro-European 15%, East Indian and Afro-East Indian 3%, European 3%, Chinese and Afro-Chinese 1%, other 1%.Religions:  Anglican, Baptist and other Protestant, Roman Catholic.Language:  English.Education:  Years compulsory--to age 14.  Literacy (age 15 and over)--82%.Health:  Infant mortality rate--25/1,000.  Life expectancy--71 yrs.Work force (1993):  1.3 million.  Industry--19%.  Agriculture--24%.  Services--57%.GovernmentType:  Constitutional monarchy.Independence:  August 6, 1962.Constitution:  August 6, 1962.Branches:  Executive--governor general (chief of state, representing U.K. monarch), prime minister, cabinet.  Legislative--bicameral parliament (21 senators, 60 representatives).  Judicial--Court of Appeal and courts of original jurisdiction.Subdivisions:  14 parishes.Political parties:  People's National Party (PNP), Jamaica Labor Party (JLP).  Suffrage:  Universal over 18.EconomyGDP (1993):  $3.8 billion.Real growth rate (1993):  1.2%.Per capita GDP (1993):  $1,543.Natural resources:  Bauxite, gypsum, limestone.Agriculture:  Products--sugar, bananas, citrus fruits, coffee, allspice.Industry:  Types--bauxite and alumina, tourism, garment assembly, processed foods, sugar, rum, cement, metal, paper, chemical products.Trade (1993):  Exports--$1.1 billion:  alumina, bauxite, sugar, bananas, garments, citrus fruits and products, rum, cocoa.  Major markets--U.S. 36.4%, U.K. 14.2%, Canada 10.9%, Norway 8.1%, CARICOM 5.7%.  Imports--$2.8 billion: machinery, transportation and electrical equipment, food, fuels, fertilizer.  Major suppliers--U.S. 49.6%, Japan 8.4%, CARICOM 5.3%, U.K. 4.4%, Venezuela 4.2%, Canada 4.1%.Official exchange rate:   J$33.2=U.S.$1. PEOPLEJamaica is a multiracial society made up of people who primarily are of African origin, along with other diverse groups.  Generally, Jamaica has enjoyed harmonious racial and cultural relations.  Its national motto, "Out of many, one people," suggests this desire for harmony.  Class distinctions from the colonial period were somewhat reduced through increased social mobility due to education and wider ownership of property in the decade after independence.Religion plays an important role in the life of most Jamaicans.  The Anglican Church is the largest of the established churches, followed by the many Baptist sects, the Roman Catholic Church, and the Methodist Church.  Evangelical and revivalist sects are popular.  Jamaica has several Muslim and Hindu groups, along with a small Jewish community.  Although few in number, Rastafarians, who believe the late Ethiopian Emperor Haile Selassie is the embodiment of God, have played a significant role in the development of Jamaican culture.Education, while technically free and compulsory to age 14, is beyond the reach of thousands of working-class and middle-class families through fees imposed by individual schools to pay for books, supplies, and repairs.  The educational system primarily consists of private elementary schools, which send more than half of their graduates to high schools.  Students rarely progress to higher education.  Technical school training is difficult to obtain.  Historically, emigration by Jamaicans has been heavy.  Since the United Kingdom restricted immigration in 1967, the major flow has been to the United States and Canada.  About 13,000 Jamaicans enter the United States and 3,500 enter Canada each year in immigrant status.  In addition, about 200,000 visit the United States annually.  New York, Miami, Chicago, and Hartford are among the U.S. cities with significant Jamaican populations.A vigorous arts and cultural movement  developed in Jamaica under active govern-mental and private sponsorship.  Jamaican writers, artists, and performers are engaged in a search through the nation's ethnic origins, especially African, for a cultural identity and expression suitable for their multiracial society.HISTORYWhen Christopher Columbus came to Jamaica in 1494, it was inhabited by an indigenous people called Arawaks.  As Jamaica was settled by the Spanish during the early 16th century, the Arawaks eventually died from disease, slavery, and war.  In 1655, British forces seized the island, and in 1670 Great Britain gained formal possession through the Treaty of Madrid.Sugar and slavery, important elements in Jamaica's history and development, made it one of the most valuable possessions in the world for more than 150 years.  Slavery was ended in 1838, years before emancipation in other parts of the New World.After a long period of direct British colonial rule, Jamaica gained a degree of local political control in the late 1930s.  During this period, which was marked by social unrest and occasional violence, the groundwork was laid for Jamaica's major political parties, led by Norman Washington Manley (People's National Party--PNP) and his cousin, Sir Alexander Bustamante (Jamaica Labor Party--JLP).  Jamaica's first election with universal adult suffrage was held in 1944, and the JLP won a majority in the House of Representatives.  Since then, the two parties have alternated in majority, two terms at a time.In 1958, Jamaica joined nine other U.K. territories in the West Indies Federation but withdrew when, in a 1961 referendum, Jamaican voters rejected membership.  Jamaica gained independence from the United Kingdom in 1962 and remained a member of the Commonwealth.GOVERNMENTThe 1962 constitution established a parliamentary system based on the U.K. model.  As chief of state, Queen Elizabeth II appoints a governor general, on the advice of a prime minister, as her representative in Jamaica.  The governor general's role is largely ceremonial.  Executive power is vested in the cabinet, led by the prime minister.Parliament is composed of an appointed Senate and an elected House of Representatives.  Thirteen Senate members are nominated on the advice of the prime minister and eight on the advice of the leader of the opposition.  General elections must be held within five years of the forming of a new government (majority in the House of Representatives).  The prime minister may ask the governor general to call elections sooner, however.  The Senate may submit bills, and it also reviews legislation submitted by the House.  It may not delay budget bills for more than one month or other bills for more than seven months.The prime minister and the cabinet are selected from the parliament.  No fewer than two nor more than four members of the cabinet must be selected from the Senate.The judiciary also is modeled on the U.K. system.  The Court of Appeals is the highest appellate court in Jamaica.  Under certain circumstances, cases may be appealed to the Privy Council of the United Kingdom.  Jamaica's parishes have elected councils that exercise limited powers of local government.Principal Government OfficialsGovernor General--Sir Howard CookePrime Minister and Minister of Defense--P.J. PattersonDeputy Prime Minister and Minister of Agriculture --Seymour MullingsMinisters:Public Service and Environment--Easton DouglasFinance and Planning--Dr. Omar DaviesForeign Affairs and Foreign Trade--Dr. Paul RobertsonNational Security and Justice--K.D. KnightAmbassador to the United States and the Organization of American States (OAS)--Richard BernalAmbassador to the United Nations--Lucille MairJamaica maintains an embassy in the United States at 1520 New Hampshire Ave NW, Washington, DC 20030 (tel. [phone]).  It also has consulates in New York at 866 2d Avenue, 2 Hammarskjold Plaza, New York, NY 10017 (tel.  [phone]); and in Miami at Ingraham Building, Suite 842, 25 SE 2d Avenue, Miami, FL 33131 (tel.  [phone]).POLITICAL CONDITIONSJamaica's political system is stable.  However, the country's serious economic problems have exacerbated social problems and have become the subject of political debate.  High unemployment--averaging 16.3% in 1993--rampant underemployment, inflation, depreciation of the Jamaican dollar, and labor unrest are the most serious economic problems.  The migration of unemployed people to urban areas, coupled with an increase in the use and trafficking of narcotics--(crack cocaine, marijuana, and, more recently, heroin)--contribute to a high level of violent crime, especially in Kingston.The two major political parties have historical links with two major trade unions--the Jamaica Labor Party (JLP) with the Bustamante Industrial Trade Union (BITU) and the People's National Party (PNP) with the National Workers Union (NWU).--   The JLP emphasizes the role of the private sector, restructuring of the economy, reforming the government, and the need for foreign private investment during its most recent term in office (1980-89) under party leader Edward Seaga.  The JLP is affiliated with the International Democratic Union.--   The PNP is a social democratic party--in government since 1989--which has followed the same general economic policy, in some cases liberalizing the economy at a faster pace than did the JLP.  It is affiliated with the Socialist International.Minor political parties exist but do not play a significant role in Jamaican politics.For health reasons, Michael Manley stepped down as Prime Minister in March 1992.  P.J. Patterson won a contested race for party leader of the PNP in a special convention.  In the March 1993 general elections, the PNP won 52 seats, and the JLP won 8 in the House of Representatives.  Major issues in the campaign included government handling of the economy, inflation, crime, and corruption.  The election maintained the Jamaican tradition of alternating, two-term governments, with the PNP winning a second consecutive term of office.  There was some violence during the election.  Afterward, widespread charges of fraud and malfeasance prompted broad-based public demands for electoral reform--a process which still is underway.Local elections were last held in 1990, when the PNP won a decisive victory.  Jamaican law requires that local elections be held every three years; elections may be delayed through legislation.  Local elections have been postponed to June 1995.ECONOMYJamaica has natural resources, primarily bauxite, and an ideal climate conducive to agriculture and tourism.  The discovery of bauxite in the 1940s and the subsequent establishment of the bauxite-alumina industry shifted Jamaica's economy from sugar and bananas.  By the 1970s, Jamaica had emerged as a world leader in export of these minerals as foreign investment increased. The country faces some serious problems but has the potential for growth and modernization.  The major constraint on Jamaica's economic prospects is a heavy foreign debt of more than $3.6 billion; debt servicing consumes 49% of the budget.  Although tourist arrivals remain near record levels, heavy discounting by local resorts has affected overall receipts.  Cruise ship patronage, meanwhile, is declining because of higher taxes and heavy competition with other destinations and may be further affected by tourist concerns about harassment and violence.  Although bauxite prices may be returning to historic levels after a multi-year slump, this may be offset by price increases in  imported commodities.  Continuing environmental degradation also can hurt tourism as well as food production, fisheries, and the prospects for  sustained development.Economic policies encourage foreign investment in areas that earn or save foreign exchange, generate employment, and use local raw materials.  The government provides a wide range of incentives to investors, including remittance facilities, tax holidays, and duty-free access for machinery and raw materials imported for approved enterprises.  Free trade zones have stimulated investment in garment assembly, light manufacturing, and data entry by foreign firms.  The "807A" program, which guarantees access in the United States for garments made in Caribbean Basin Initiative (CBI) countries from textiles woven and cut in the United States, has opened new opportunities for investment and expansion in Jamaica.  More than 80 U.S. firms have operations in Jamaica, and total U.S. investment, including that in bauxite-alumina, is estimated at more than $1 billion. The American Chamber of Commerce promotes trade opportunities between Jamaica and the United States, promote Jamaican exports, attract new U.S. private investment to Jamaica, and provide Jamaican and American businesses with a forum through which to advocate public policies enhancing the business climate.FOREIGN RELATIONSJamaica has diplomatic relations with most nations.  A wide range of countries and international organizations maintain missions in Kingston.  Under the Seaga government, Jamaica severed diplomatic relations with Cuba in 1981, charging Cuba with interference in its internal affairs.  The Manley government restored diplomatic ties with Cuba in 1990.  Jamaica is active in the United Nations and in other international organizations.Jamaica is a member of the Commonwealth.  Historically, Jamaica has had close ties with the U.K., but trade, financial, and cultural relations with the United States and Canada are now predominant.  Regionally, Jamaica is linked with the other countries of the English-speaking Caribbean through the Caribbean Community (CARICOM). As a member of CARICOM, Jamaica strongly backed efforts by the U.S. to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's defacto authorities from power.  Jamaica contributed more than 100 personnel to the multinational force, which restored the democratically elected Government of Haiti in October 1994. U.S.-JAMAICAN RELATIONSThe United States maintains close and productive relations with the Government of Jamaica.  Prime Minister Patterson has visited Washington, DC, several times since assuming office and has met with President Clinton and other senior U.S. Government officials.Jamaica is one of only a handful of countries that signed a Bilateral Investment Treaty and an Intellectual Property Rights agreement.  Jamaica and the U.S. cooperate on narcotics control measures.  The U.S. State Department's Bureau for International Narcotics Matters operates a $600,000 assistance program, which focuses on narcotics law enforcement and drug abuse education.The U.S. Agency for International Development (USAID) provided $10 million in assistance in 1994.  USAID objectives include increasing foreign exchange earnings and employment, improving environmental quality and protecting natural resources, and promoting family planning.Principal U.S. OfficialsAmbassador--Jerome Gary CooperDeputy Chief of Mission--Lacy A. Wright, Jr.Economic/Political Counselor--John P. RileyUSAID Mission Director--Carole H. TysonDefense Attache--Lt. Col. Norman WigginsChief, Military Liaison Office--Maj. Terry DeRoucheyLabor Attache--Janet PotashConsul General--John Vessey IIIPublic Affairs Counselor--Michael HoulahanPeace Corps Director--Janet SimoniThe U.S. embassy in Jamaica is at 2 Oxford Road, Jamaica Mutual Life Center, Kingston (tel. [phone]).  The Consular section is at 16 Oxford Road, Kingston (tel. [phone]).  The USAID Mission is at 6B Oxford Road, Kingston (tel. [phone]).  The Peace Corps is at 1A Holborn Road, Kingston (tel. [phone])(###)</text>
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        <text>U.S. Department of StateBackground Notes:  Italy, July 1995Bureau of Public AffairsJuly 1995Official Name:  Republic of ItalyPROFILEGeographyArea:  301,225 sq. km. (116,303 sq. mi.); about the size of Georgia and Florida combined.Cities:  Capital--Rome (pop.  2.7 million).  Other cities--Milan, Naples, Turin.Terrain:  Mostly rugged and mountainous.Climate:  Generally mild Mediterranean; cold northern winters.PeopleNationality:  Noun and adjective--Italian(s).Population:  57 million.Annual growth rate:  0.2%.Ethnic groups:  Primarily Italian, but small groups of German-, French-, Slovene-, and Albanian-Italians.Religion:  Roman Catholic (majority).Language:  Italian (official).Education:  Years compulsory--14.  Literacy--98%.Health:  Infant mortality rate--8/1,000 live births.  Life expectancy--74 yrs.Work force:  24 million; unemployment 11%.  Services--60%.  Industry and commerce--33%.  Agriculture--7%.GovernmentType:  Republic since June 2, 1946.  Constitution:  January 1, 1948.Branches:  Executive--president (chief of state), Council of Ministers (cabinet), headed by the president of the council (prime minister).  Legislative--bicameral parliament:  630-member Chamber of Deputies, 326-member Senate.  Judicial--independent constitutional court and lower magistracy.Subdivisions:  94 provinces, 20 regions.Political parties:  Forza Italia, Northern League, National Alliance, Democratic Party of the Left, Italian People's Party, Christian Democratic Center, Socialist, La Rete, Communist Renewal, Social Democratic, Republican, Liberal, Greens.Suffrage:  Universal over 18.EconomyGDP (1994):  $1.02 trillion.Per capita income (1994):  $21,300.GDP growth (1994):  2.2%.Natural resources:  Fish, natural gas.Agriculture:  Products--wheat, rice, grapes, olives, citrus fruits.Industry:  Types--automobiles, machinery, chemicals, textiles, shoes.Trade (1994):  Exports--$189 billion; partners--EU 54%, U.S. 8%, OPEC 4%; mechanical products, textiles and apparel, transportation equipment, metal products, chemical products, food and agricultural products, energy products.  Imports--$167 billion; partners--EU 56%, OPEC 5%, U.S. 5%; machinery and transport equipment, foodstuffs, ferrous and nonferrous metals, wool, cotton, energy products.PEOPLE AND HISTORYItaly is largely homogeneous linguistically and religiously but is diverse culturally, economically, and politically.  Italy has the fifth-highest population density in Europe--about 200 persons per square kilometer (490/sq. mi.).  Minority groups are small, the largest being the German-speaking people of Bolzano Province and the Slovenes around Trieste.  Other groups comprise small communities of Albanian, Greek, Ladino, and French origin.  Although Roman Catholicism is the majority religion--99% of the people are nominally Catholic--all religious faiths are provided equal freedom before the law by the constitution.Greeks settled in the southern tip of the Italian peninsula in the eighth and seventh centuries B.C.; Etruscans, Romans, and others inhabited the central and northern mainland.  The peninsula subsequently was unified under the Roman Republic.  The neighboring  islands also came under Roman control by the third century B.C.; by the first century A.D., the Roman Empire effectively dominated the Mediterranean world.  After the collapse of the Roman Empire in the West in the fifth century A.D., the peninsula and islands were subjected to a series of invasions, and political unity was lost.  Italy became an oft-changing succession of small states, principalities, and kingdoms which fought among themselves and were subject to ambitions of foreign powers.  Popes of Rome ruled central Italy; rivalries between the popes and the Holy Roman Emperors, who claimed Italy as their domain, often made the peninsula a battleground.Commercial prosperity of northern and central Italian cities, beginning in the 11th century, and the influence of the Renaissance mitigated somewhat the effects of these medieval political rivalries.  Although Italy declined after the 16th century, the Renaissance had strengthened the idea of a single Italian nationality.  By the early 19th century, a nationalist movement developed and led to the reunification of Italy--except for Rome--in the 1860s.  In 1861, Victor Emmanuel II of the House of Savoy was proclaimed King of Italy.  Rome was incorporated in 1870.  From 1870 until 1922, Italy was a constitutional monarchy with a parliament elected under limited suffrage.============================================Italy's Cultural ContributionsEurope's Renaissance period began in Italy during the 14th and 15th centuries.  Literary achievements--such as the poetry of Petrarch, Tasso, and Ariosto and the prose of Boccaccio, Machiavelli, and Castiglione--exerted a tremendous and lasting influence on the subsequent development of Western civilization, as did the painting, sculpture, and architecture contributed by giants such as da Vinci, Raphael, Botticelli, Fra Angelico, and Michelangelo.The musical influence of Italian composers Monteverdi, Palestrina, and Vivaldi proved epochal; in the 19th century, Italian romantic opera flourished under composers Gioacchino Rossini, Giuseppe Verdi, and Giacomo Puccini.  Contemporary Italian artists, writers, filmmakers, architects, composers, and designers contribute significantly to Western culture.============================================20th-Century HistoryDuring World War I, Italy renounced its standing alliance with Germany and Austria-Hungary and, in 1915, entered the war on the side of the Allies.  Under the postwar settlement, Italy received some former Austrian territory along the northeast frontier.  In 1922, Benito Mussolini came to power and, over the next few years, eliminated political parties, curtailed personal liberties, and installed a fascist dictatorship termed the Corporate State.  The king, with little or no effective power, remained titular head of state.Italy allied with Germany and declared war on the United Kingdom and France in 1940.  In 1941, Italy--with the other Axis powers, Germany and Japan--declared war on the United States and the Soviet Union.  Following the Allied invasion of Sicily in 1943, the King dismissed Mussolini and appointed Marshal Pietro Badoglio as Premier.  The Badoglio government declared war on Germany, which quickly occupied most of the country and freed Mussolini, who led a brief-lived regime in the north.  An anti-fascist popular resistance movement grew during the last two years of the war, harassing German forces before they were driven out in April 1945.  The monarchy was ended by a 1946 plebiscite, and a constituent assembly was elected to draw up plans for the republic.Under the 1947 peace treaty, minor adjustments were made in Italy's frontier with France, the eastern border area was transferred to Yugoslavia, and the area around the city of Trieste was designated a free territory.  In 1954, the free territory, which had remained under the administration of U.S.-U.K. forces (Zone A, including the city of Trieste) and Yugoslav forces (Zone B), was divided between Italy and Yugoslavia, principally along the zonal boundary.  This arrangement was made permanent by the Italian-Yugoslav Treaty of Osimo, ratified in 1977 (currently being discussed by Italy, Slovenia, and Croatia).  Under the 1947 peace treaty, Italy also gave up its overseas territories and certain Mediterranean islands.The Roman Catholic Church's status in Italy has been determined, since its temporal powers ended in 1870, by a series of accords with the Italian Government.  Under the Lateran Pacts of 1929, which were confirmed by the present constitution, the state of Vatican City is recognized by Italy as an independent, sovereign entity.  While preserving that recognition, in 1984, Italy and the Vatican updated several provisions of the 1929 accords.  Included was the end of Roman Catholicism as Italy's formal state religion.GOVERNMENTItaly has been a democratic republic since June 2, 1946, when the monarchy was abolished by popular referendum.  The constitution was promulgated on January 1, 1948.The Italian state is highly centralized.  The prefect of each of the provinces is appointed by and answerable to the central government.  In addition to the provinces, the constitution provides for 20 regions with limited governing powers.  Five regions--Sardinia, Sicily, Trentino-Alto Adige, Valle d'Aosta, and Friuli-Venezia Giulia--function with special autonomy statutes.  The other 15 regions were established in 1970 and vote for regional "councils".  The establishment of regional governments throughout Italy has brought some decentralization to the national governmental machinery.The 1948 constitution established a bicameral parliament (Chamber of Deputies and Senate), a separate judiciary, and an executive branch composed of a Council of Ministers (cabinet) which is headed by the president of the council (prime minister).  The president of the republic is elected for seven years by the parliament sitting jointly with a small number of regional delegates.  The president nominates the prime minister, who chooses the other ministers.  The Council of Ministers--in practice composed mostly of members of parliament--must retain the confidence of both houses.The houses of parliament are popularly and directly elected by a mixed majoritarian and proportional representation system.  Under 1993 legislation, Italy has single-member districts for 75% of the seats in parliament; the remaining 25% of seats are allotted on a proportional basis.  The Chamber of Deputies has 630 members.  In addition to 315 elected members, the Senate includes former presidents and several other persons appointed for life according to special constitutional provisions.  Both houses are elected for a maximum of five years, but either may be dissolved before the expiration of its normal term.  Legislative bills may originate in either house and must be passed by a majority in both.The Italian judicial system is based on Roman law modified by the Napoleonic code and subsequent statutes.  There is only partial judicial review of legislation in the American sense.  A constitutional court, which passes on the constitutionality of laws, is a post-World War II innovation.  Its powers, volume, and frequency of decisions are not as extensive as those of the U.S. Supreme Court.Principal Government OfficialsPresident--Oscar Luigi ScalfaroPrime Minister--Lamberto DiniForeign Minister--Susanna AgnelliAmbassador to the United States--Boris BiancheriItaly maintains an embassy in the United States at 1601 Fuller Street NW, Washington, DC 20009 (tel. [phone]).POLITICAL CONDITIONSThere have been frequent government turnovers since 1945.  The dominance of the Christian Democratic (DC) party during much of the postwar period lent continuity and comparative stability to Italy's political situation.From 1992 to 1995, Italy faced significant challenges as voters--disenchanted with past political paralysis, massive government debt, extensive corruption, and organized crime's considerable influence--demanded political, economic, and ethical reforms.  In 1993 referendums, voters approved substantial changes, including moving from a proportional to majoritarian electoral system and the abolishment of some ministries.Major political parties, beset by scandal and loss of voter confidence, underwent far-reaching changes.  New political forces and new alignments of power emerged in March 1994 national elections--there was a major turnover in the new parliament, with 452 out of 630 deputies and 213 out of 315 senators elected for the first time.  The 1994 elections also swept media magnate Silvio Berlusconi--and his "Freedom Alliance" coalition--into office as Prime Minister.  However, Berlusconi was forced to step down in January 1995 when one member of his coalition withdrew support.Italy's current Prime Minister, Lamberto Dini, is a respected economist who also heads the finance ministry.  His government of technocrats has already implemented much of its ambitious reform program.  Once the reforms are completed, Italy is expected to hold new national elections.In April 1995 regional elections, Italians confounded pollsters, who had predicted a big lead for former Prime Minister Berlusconi's "Forza Italia" movement.  Instead, voters split almost evenly between center-right and center-left coalitions, making it difficult to predict the outcome of the next national elections.Political PartiesItaly's dramatic self-renewal transformed the political landscape between 1992 and 1995.  Scandal investigations touched thousands of politicians, administrators, and businessmen; the shift from a proportional to majoritarian voting system (with the requirement to obtain a minimum of 4% of the national vote to obtain representation) also altered political ground rules.Party changes were sweeping.  The Christian Democratic party dissolved; the Italian People's Party and the Christian Democratic Center emerged.  Other major parties, such as the Socialists, saw support plummet.  New movements such as Forza Italia, led by former Prime Minister Berlusconi, gained wide support.  The National Alliance broke from the neo-fascist Italian Social Movement.  A trend toward two large coalitions--one on the center-left and the other on the center-right--emerged from the April 1995 regional elections.  Should this trend continue, it would represent a major break from the fragmented, multi-party political landscape of the Italian postwar era.The largest parties in the Chamber are:  Forza Italia (21%); Democratic Party of the Left--moderate successor to the Italian Communist Party--(20%); National Alliance (14%); Italian People's Party--primary successor to the DC--(11%); Northern League (8%); and Communist Renewal--hard-line successor to the Italian Communist Party--(6%).  In the Senate, the largest groups are:  Forza Italia-Northern League (20%); Forza Italia-National Alliance (14%); Progressive Alliance--PDS and others--(33%); Pact for Italy (17%); National Alliance (6%).ECONOMYThe Italian economy has changed dramatically since the end of World War II.  From an agriculturally based economy, it has developed into an industrial state that ranks as the world's fifth-largest industrial economy.  Italy belongs to the Group of Seven (G-7) industrialized nations; it is a member of the European Union and the OECD.Italy has few natural resources.  With much of the land unsuited for farming, it is a net food importer.  There are no substantial deposits of iron, coal, or oil.  Proven natural gas reserves, mainly in the Po Valley and offshore Adriatic, have grown in recent years and constitute the country's most important mineral resource.  Most raw materials needed for manufacturing and more than 80% of the country's energy sources are imported.  Italy's economic strength is in the processing and the manufacturing of goods, primarily in small and medium-sized family-owned firms.  Its major industries are precision machinery, motor vehicles, chemicals, pharmaceuticals, electrical goods, and fashion and clothing.Italy's economic performance improved in 1994 and early 1995.  GDP rose 2.2% in 1994, and for 1995, GDP is forecast to improve by more than 3%.  Italy's 1994 trade surplus was $22 billion, and its current account surplus was $16 billion.  Continued competitive lira exchange rates should assist further export-led growth.  Inflation was 4% in 1994, rising above 5% in early 1995.In coordination with the EU's planning for an eventual single market, Italy seeks to align its economic policies with those of the other major continental economies and to privatize large state-owned holding companies in a number of sectors.  Italy faces several economic and political hurdles in achieving both goals while maintaining social cohesion.  Moreover, under terms of the Maastricht Treaty, a convergence target of 3% has been set for public sector deficit as percentage of GDP--far below Italy's present rate.  Also, Italy's public debt/GDP ratio does not put it realistically within reach of the treaty' s target of 60%.Italian Government efforts to reduce the relative sustained size of the public sector budget deficit have met some success.  The public sector deficit dropped to about 9% of GDP in 1994 and should drop again to a forecast 8% of GDP in 1995, assuming continued reform.  Italy's government debt was 124% of GDP in 1994.   These deficit/GDP and debt/GDP ratios remain well above the rest of the group of major industrial economies and complicate efforts to coordinate Italy's economic policies with those of its major European partners.Italy's closest trade ties are with the other countries of the European Union, with whom it conducts about 55% of its total trade.  Italy's largest EU trade partners, in order of market share, are Germany (19%), France (14%), and the United Kingdom (6%).U.S.-Italy Economic RelationsThe U.S.-Italian bilateral relationship is strong and growing.  The U.S. and Italy cooperate closely on major economic issues, including within the G-7, which Italy chaired in 1994.  With a large population and a high per capita income, Italy is one of the United States' most important trading partners.  In 1994, the United States was the fifth-largest single foreign supplier of the Italian market (with a market share of 5%) and the largest outside the EU.  Total trade between the United States and Italy exceeded $22 billion in 1994; the U.S. ran more than a $7 billion deficit with Italy.Significant changes are occurring in the composition of this trade which could narrow the gap.  More value-added products such as office machinery and aircraft are becoming the principal U.S. exports to Italy.  The change reveals the growing sophistication of the Italian market, and bilateral trade will expand further.  During 1994, the United States imported about $15 billion in Italian goods while exporting about $8 billion in U.S. goods to Italy.  U.S. foreign direct investment in Italy exceeds $14 billion; Italian investment in the U.S. is growing fast.LaborA rigid labor market and protective legislation for employed workers have compounded Italy's major problem of unemployment, which held at about 11% in 1994--with most job losses occurring in the industrial sector.  For structural economic reasons, unemployment should continue to be a problem even with economic recovery and modest wage gains.  Although skilled labor is in short supply in some categories, inefficient use of labor, structural unemployment, and underemployment persist, as does labor unreported for tax purposes.  Adult and youth unemployment are more acute in southern than in northern Italy.Official estimates place the unionization rate of the labor force at 15%; this does not reflect union statistics, since it accounts only for dues-paying, active workers, omitting retiree/pensioner figures.  Most Italian unions are grouped in three confederations, each of which has had traditional ties with a particular political party.  With the collapse and near disappearance of the traditional ruling parties, these informal ties have ended, and the confederations now emphasize their autonomy from political parties.  The three major confederations are the Italian Confederation of Labor Unions (CISL), the Italian General Confederation of Labor (CGIL), and the Union of Italian Labor (UIL).  The approximate labor shares for the three confederations are:  CGIL, 42%; CISL, 37%; and UIL, 20%.AgricultureItaly's agriculture is typical of the division between the agricultures of the northern and southern countries of the European Union.  The northern part of Italy produces primarily grains, sugar beets, soybeans, meat, and dairy products, while the southern section specializes in producing fruits, vegetables, olive oil, wine, and durum wheat.Even though much of its mountainous terrain is unsuitable for farming, Italy has a large work force (1.6 million) employed in farming.  Most farms are small, with the average farm only seven hectares.FOREIGN RELATIONSItaly was a founding member of the European Community--now the European Union (EU).  Italy was admitted to the United Nations in 1955 and is a member and strong supporter of the North Atlantic Treaty Organization (NATO); the Organization for Economic Cooperation and Development (OECD); the General Agreement on Tariffs and Trade/World Trade Organization (GATT/WTO); the Organization for Security and Cooperation in Europe (OSCE), the Western European Union (WEU); and the Council of Europe.  It chaired the CSCE and the G-7 in 1994 and will chair the EU in 1996.Italy firmly supports the United Nations and its international security activities.  Italy actively participated in and deployed troops in support of UN  peacekeeping missions in Somalia, Mozambique, and Cambodia and provides critical support for NATO and UN operations in Bosnia.The Italian Government seeks to obtain consensus with other European countries on various defense and security issues within the WEU as well as NATO.  European integration and the development of common defense and security policies will continue to be of primary interest to Italy.DEFENSEA strong NATO ally, Italy occupies an important strategic position in the Mediterranean, critical to regional security and for enhancing stability in the Balkans, North Africa, and the Middle East.  To meet challenges of the post-Cold War era, Italy has proposed a "New Defense Model" that calls for the creation of more mobile and highly trained units staffed by career professionals.  The Italian military is subordinate to civilian authority, which is vested in the Ministry of Defense.  Under the authority of the Defense Minister, the armed forces have also been used in Italy for emergency relief and combating organized crime.  For 1995, Italy's defense budget will equal 1% to 2% of GDP.U.S.-ITALY RELATIONSThe United States enjoys warm and friendly relations with Italy.  The two are NATO allies and cooperate in the United Nations, in various regional organizations, and bilaterally for peace, prosperity, and defense.  Italy has worked closely with the United States and others on such issues as NATO and UN operation in Bosnia; sanctions against the former Yugoslavia; assistance to Russia and the New Independent States (NIS); Middle East peace process multilateral talks; Somalia and Mozambique peacekeeping; and combating drug trafficking and terrorism.Under long-standing bilateral agreements flowing from NATO membership, Italy hosts important U.S.  military forces at Vincenza and Livorno (Army); Aviano (Air Force); and Sigonella, Gaeta, and Naples--home port for the U.S. Navy Sixth Fleet.  The United States has about 17,000 military personnel stationed in Italy.  Italy hosts the NATO War College in Rome.Italy remains a strong and active trans-Atlantic partner which, along with the United States, has sought to foster democratic ideals and international cooperation in areas of strife and civil conflict.  Toward this end, the Italian Government has cooperated with the U.S. in the formulation of defense, security, and peacekeeping policies.Principal U.S. OfficialsAmbassador--Reginald BartholomewDeputy Chief of Mission--James CreaganPolitical Affairs--Shaun ByrnesEconomic Affairs--Robert SmolikPublic Affairs--Cynthia MillerCommercial Affairs--Keith BovettiAgricultural Section--Frank PadovanoDefense Attache--Capt.  Philip Bozzelli, USNConsular PostsConsul General, Florence--Sue PattersonConsul General, Milan--George GriffinConsul General, Naples--Clarke EllisThe U.S. embassy in Italy is located at Via Veneto 119, Rome (tel. [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of Public Communication  --  Washington, DC  --  July 1995  --  Managing Editor:  Peter A. Knecht  --  Editor:  Marilyn J. BremnerDepartment of State Publication 9542  --  Background Notes series  --  This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC  20402.  (###)</text>
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        <text>BACKGROUND NOTES:  ISRAELPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEFEBRUARY 1994Official Name: State of IsraelPROFILEGeographyArea (Including Jerusalem):  20,325 sq. km.  (7,850 sq. mi);about the size of New Jersey.  Cities:  Capital--Jerusalem(Israel proclaimed Jerusalem as its capital in 1950.  The UnitedStates, like nearly all other countries, maintains its embassy inTel Aviv.).  Other cities--Tel Aviv, Haifa.  Terrain:  Plains,mountains, desert, and coast.Climate:  Temperate, except in desert areas.PeoplePopulation (1992):  5.2 million.  Annual Growth Rate:  4.7%.Ethnic groups:  Jewish 4.2 million; non-Jewish 950,000.Religions:  Judaism, Islam, Christianity, Druze.  Languages:Hebrew, Arabic, English.  Education:  Years compulsory--12;Literacy--Jewish 95%, Arab 87%.  Health:  Infant mortality rate(1992)--8.9/1000.  Life expectancy--76 years.  Work Force:  1.9million:  Public and community services--30%.  Industry--22%.Commerce, restaurants, hotels--14%.  Finance and business--10%.Personal and other services--7%.  Transport, storage andcommunications--6%.  Agriculture, forestry, and fisheries--3.5%.Construction--6%.  Electricity and water--1%.GovernmentType:  Parliamentary democracy.Independence:  May 14, 1948.Constitution:  None.Branches:  Executive--president (chief of state); prime minister(head of government).  Legislative--unicameral, Knesset.Judicial--Supreme Court.Political parties:  Labor Party, Meretz (left-wing coalitionbetween Ratz, Mapam and Shinui), Likud (Herut-Liberal alliance),and various other religious, right-wing and predominantly Arabpolitical movements.  A total of 10 parties represented incurrent Knesset.Suffrage:  Universal at 18.Flag:  White field on which is centered a blue six-pointed Starof David bordered above and below by blue horizontal stripes(design based on Jewish prayer shawl).PEOPLEOf the approximately 5.2 million Israelis in 1992, about 4.2million were Jewish.  While the non-Jewish minority grows at anaverage rate of 4% per year, the Jewish population has increasedby 10% over the last three years as a result of massiveimmigration to Israel, primarily from the republics of the formerSoviet Union.  In the past three years, nearly 400,000 suchimmigrants arrived in Israel, making this the largest wave ofimmigration since independence.  In addition, almost 20,000members of the Ethiopian Jewish community have immigrated toIsrael, 14,000 of them during the dramatic May 1991 OperationSolomon airlift.The three broad Jewish groupings are:  the Ashkenazim, or Jewswho came to Israel mainly from Europe, North and South America,South Africa, and Australia; the Sephardim, who trace theirorigin to Spain, Portugal, and North Africa; and Eastern orOriental Jews, who descend from ancient communities in Islamiclands.  Of the non-Jewish population, about 77% are Muslims, 13%are Christian, and about 10% are Druze and others.Education between ages 5 and 16 is free and compulsory.  Theschool system is organized into kindergartens, six-year primaryschools, three-year junior secondary schools, and three-yearsenior secondary schools, after which a comprehensive examinationis offered for university admissions.  There are sevenuniversity-level institutions in Israel.With a population drawn from more than 100 countries on 5continents, Israeli society is rich in cultural diversity andartistic creativity.  The arts are actively encouraged andsupported by the government.  The Israeli Philharmonic Orchestraperforms throughout the country and frequently tours abroad.  TheJerusalem Symphony, the orchestra of the Israeli BroadcastingAuthority, also tours frequently as do other musical ensembles.Almost every municipality has a chamber orchestra or ensemble,many boasting the talents of gifted performers recently arrivedfrom the countries of the former Soviet Union.Folk dancing, which draws upon the cultural heritage of manyimmigrant groups, is very popular.  Israel also has severalprofessional ballet and modern dance companies.  There is greatpublic interest in the theater; the repertoire covers the entirerange of classical and contemporary drama in translation, as wellas plays by Israeli authors.  Of the three major repertorycompanies, the most famous, Habimah, was founded in 1917.Active artist colonies thrive in Safed, Jaffa, and Ein Hod, andIsraeli painters and sculptors exhibit and sell their worksworldwide.  Haifa, Tel Aviv, and Jerusalem have excellent artmuseums, and many towns and kibbutzim have smaller high-qualitymuseums.  The Israel Museum in Jerusalem houses the Dead SeaScrolls along with an extensive collection of Jewish religiousand folk art.  The Museum of the Diaspora is located on thecampus of Tel Aviv University.  Israelis are avid newspaperreaders.  Israeli papers have an average daily circulation of600,000 copies.  Major daily papers are in Hebrew; others are inArabic, English, French, Polish, Yiddish, Russian, Hungarian, andGerman.HISTORYThe creation of the State of Israel in 1948 was preceded by morethan 50 years of efforts by Zionist leaders to establish asovereign nation as a homeland for Jews.  The desire of Jews toreturn to what they consider their rightful homeland was firstexpressed during the Babylonian exile and became a universalJewish theme after the destruction of Jerusalem by the Romans in70 A.D. and the dispersal that followed.It was not until the founding of the Zionist movement by TheodoreHerzl at the end of the 19th century that practical steps weretaken toward securing international sanction for large-scaleJewish settlement in Palestine--then a part of the OttomanEmpire.The Balfour declaration in 1917 asserted the British Government'ssupport for the creation of a Jewish homeland in Palestine.  Thisdeclaration was supported by a number of other countries,including the United States, and became more important followingWorld War I, when the United Kingdom was assigned the Palestinemandate by the League of Nations.Jewish immigration grew slowly in the 1920s; it increasedsubstantially in the 1930s, due to political turmoil in Europeand Nazi persecution, until restrictions were imposed by theUnited Kingdom in 1939.  After the end of World War II, and thenear-extermination of European Jewry by the Nazis, internationalsupport for Jews seeking to settle in Palestine overcame Britishefforts to restrict immigration.International support for establishing a Jewish state led to theadoption in November 1947 of the UN partition plan, which calledfor dividing the Mandate of Palestine into a Jewish and an Arabstate and for establishing Jerusalem separately as aninternational city under UN administration.Violence between Arab and Jewish communities erupted almostimmediately.  Toward the end of the British mandate, the Jewsplanned to declare a separate state, a development the Arabs weredetermined to prevent.  On May 14, 1948, the State of Israel wasproclaimed.  The following day, armies from neighboring Arabnations entered the former Mandate of Palestine to engage Israelimilitary forces.In 1949, under UN auspices, four armistice agreements werenegotiated and signed at Rhodes, Greece, between Israel and itsneighbors Egypt, Jordan, Lebanon and Syria.  The 1948-49 war ofindependence resulted in a 50% increase in Israeli territory,including western Jerusalem.  No general peace settlement wasachieved at Rhodes, however, and violence along the borderscontinued for many years.In October 1956, Israel invaded the Gaza Strip and the SinaiPeninsula at the same time that operations by French and Britishforces against Egypt were taking place in the Suez Canal area.Israeli forces withdrew in March 1957, after the United Nationsestablished the UN Emergency Force (UNEF) in the Gaza Strip andSinai.  In 1966-67, terrorist incidents and retaliatory actsacross the armistice demarcation lines increased.In May 1967, after tension had developed between Syria andIsrael, Egyptian President Nasser moved armaments and about80,000 troops into the Sinai and ordered a withdrawal of UNEFtroops from the armistice line and Sharm El Sheikh.  Nasser thenclosed the Strait of Tiran to Israeli ships, blockading theIsraeli port of Eilat at the northern end of the Gulf of Aqaba.On May 30, Jordan and Egypt signed a mutual defense treaty.In response to these events, Israeli forces struck targets inEgypt, Jordan, and Syria on June 5.  After six days of fighting,by the time all parties had accepted the cease-fire called for byUN Security Council Resolutions 235 and 236, Israel controlledthe Sinai Peninsula, the Gaza Strip, the Golan Heights, and theformerly Jordanian-controlled West Bank of the Jordan River,including East Jerusalem. On November 22, 1967, the SecurityCouncil adopted Resolution 242, the "land for peace" formula,which called for the establishment of a just and lasting peacebased on Israeli withdrawal from territories occupied in 1967 inreturn for the end of all states of belligerency, respect for thesovereignty of all states in the area, and the right to live inpeace within secure, recognized boundaries.In the 1969-70 war of attrition, Israeli planes made deep strikesinto Egypt in retaliation for repeated Egyptian shelling ofIsraeli positions along the Suez Canal.  In early 1969, fightingbroke out between Egypt and Israel along the Suez Canal.  TheUnited States helped end these hostilities in August 1970, butsubsequent U.S. efforts to negotiate an interim agreement to openthe Suez Canal and achieve disengagement of forces wereunsuccessful.On October 6, 1973--Yom Kippur (the Jewish Day ofAtonement)--Syrian and Egyptian forces attacked Israeli positionsin Golan and along the Suez Canal.  Initially, Syria and Egyptmade significant advances against Israeli forces. However, Israelrecovered on both fronts, pushed the Syrians back beyond the 1967cease-fire lines, and recrossed the Suez Canal to take a salienton its west bank, isolating Egyptian troops, who eventuallysurrendered.The United States and the Soviet Union helped bring about acease-fire between the combatants.  In the UN Security Council,the United States supported Resolution 338, which reaffirmedResolution 242 as the framework for peace and called for peacenegotiations between the parties.The cease-fire did not end the sporadic clashes along thecease-fire lines nor did it dissipate military tensions.  TheUnited States tried to help the parties reach agreement oncease-fire stabilization and military disengagement.  On March 5,1974, Israeli forces withdrew from the canal, and Egypt assumedcontrol.  Syria and Israel signed a disengagement agreement onMay 31, 1974, and the UN Disengagement and Observer Force (UNDOF)was established as a peacekeeping force in the Golan.Further U.S. efforts resulted in an interim agreement betweenEgypt and Israel in September 1975, which provided for anotherIsraeli withdrawal in the Sinai, a limitation of forces, andthree observation stations staffed by U.S. civilians in aUN-maintained buffer zone between Egyptian and Israeli forces.In November 1977, Egyptian President Anwar Sadat broke 30 yearsof hostility with Israel by visiting Jerusalem at the invitationof Israeli Prime Minister Menachem Begin.  During a two-dayvisit, which included a speech before the Knesset, the Egyptianleader created a new psychological climate in the Middle East inwhich peace between Israel and its Arab neighbors seemed arealistic possibility.  Sadat recognized Israel's right to existand established the basis for direct negotiations between Egyptand Israel.In September 1978, U.S. President Jimmy Carter invited PresidentSadat and Prime Minister Begin to meet with him at Camp David,where they agreed on a framework for peace between Israel andEgypt and a comprehensive peace in the Middle East.  It set outbroad principles to guide negotiations between Israel and theArab states.  It also established guidelines for a West Bank-Gazatransitional regime of full autonomy for the Palestiniansresiding in the occupied territories and for a peace treatybetween Egypt and Israel.The treaty was signed on March 26, 1979, by Begin and Sadat, withPresident Carter signing as witness.  Under the treaty, Israelreturned the Sinai to Egypt in April 1982.  In 1989, theGovernments of Israel and Egypt concluded an agreement thatresolved the status of Taba, a resort area on the Gulf of Aqaba.In the years following the 1948 war, Israel's border with Lebanonwas quiet, compared to its borders with other neighbors.  Afterthe expulsion of the Palestinian fedayeen (fighters) from Jordanin 1970--and their influx into southern Lebanon, however,hostilities on Israel's northern border increased.In March 1978, after a series of clashes between Israeli forcesand Palestinian guerillas in Lebanon, Israeli forces crossed intoLebanon.  After passage of Security Council Resolution 425,calling for Israeli withdrawal and the creation of the UN InterimForce in Lebanon peace-keeping force (UNIFIL), Israel withdrewits troops.In July 1981, after additional fighting between Israel and thePalestinians in Lebanon, President Reagan's special envoy, PhilipC. Habib, helped secure a cease-fire between the parties.However, in June 1982, Israel invaded Lebanon to fight the forcesof the Palestine Liberation Organization (PLO).In August 1982, the PLO withdrew its forces from Lebanon.  WithU.S. assistance, Israel and Lebanon reached an accord in May 1983that set the stage to withdraw Israeli forces from Lebanon.  Theinstruments of ratification were never exchanged, however, and inMarch 1984, under pressure from Syria, Lebanon canceled theagreement.  In June 1985, Israel withdrew most of its troops fromLebanon, leaving a small residual Israeli force and anIsraeli-supported militia in southern Lebanon in a "securityzone," which Israel considers a necessary buffer against attackson its northern territory.By the late 1980s, the spread of non-conventionalweaponry--including missile technology--in the Middle East beganto pose security problems for Israel from further afield.  Thiswas evident during the Gulf crisis that began with Iraq's August1990 invasion of Kuwait.When allied coalition forces moved to expel Iraqi forces fromKuwait in January 1991, Iraq launched a series of missile attacksagainst Israel.  Despite the provocation, Israel refrained fromentering the Gulf war directly, accepting U.S. assistance todeflect continued Iraqi missile attacks.The coalition's victory in the Gulf war opened new possibilitiesfor regional peace, and in October 1991, the Presidents of theUnited States and the Soviet Union jointly convened an historicmeeting in Madrid of Israeli, Lebanese, Jordanian, Syrian, andPalestinian leaders which became the foundation for ongoingbilateral and multilateral negotiations designed to bring lastingpeace and economic development to the region.On September 13, 1993, Israel and the PLO signed a Declaration ofPrinciples on the South Lawn of the White House.  The declarationwas a major conceptual breakthrough achieved under the Madridframework.  It established an ambitious set of objectivesrelating to a transfer of authority from Israel to an interimPalestinian authority.  Final status talks are to begin by thethird year of the interim regime.  Implementation is contingentupon the details of the declaration.  These negotiations werecontinuing in early 1994.  Additionally, on September 14, Israeland Jordan signed a substantive common agenda to guide theirbilateral negotiations.GOVERNMENTIsrael is a parliamentary democracy.  Its governmental system isbased on several basic laws enacted by its unicameral parliament,the Knesset.  The president (chief of state) is elected by theKnesset for a five-year term.The prime minister (head of government) exercises executive powerand has in the past been selected by the president as the partyleader most able to form a government.  The prime minister andother members of the cabinet must be approved by the Knesset, towhich they are responsible.  Recent legislation calls for thedirect election of the prime minister as of the next elections(currently scheduled for 1996).The Knesset's 120 members are elected by secret ballot tofour-year terms, although the prime minister may decide to callfor new elections before the end of its term.  Voting is forparty lists rather than for individual candidates, and the totalnumber of seats assigned each party reflects that party'spercentage of the vote.   Successful Knesset candidates are drawnfrom the lists in order of party-assigned rank.  Under thepresent electoral system, all members of the Knesset are electedat large.The independent judicial system includes secular and religiouscourts.  The courts' right of judicial review of the Knesset'slegislation is limited.  Judicial interpretation is restricted toproblems of execution of laws and validity of subsidiarylegislation.  The highest court in Israel is the Supreme Court,whose judges are approved by the president.Israel is divided into six districts, administration of which iscoordinated by the Ministry of Interior.  The Ministry of Defenseis responsible for the administration of the occupiedterritories.Principal Government OfficialsPresident--Ezer WeizmanPrime Minister--Yitzhak RabinLabor Foreign Minister--Shimon PeresLabor Ambassador to the United States--Dr. Itamar RabinovichAmbassador to the United Nations--Gad YaacobiIsrael maintains an embassy in the United States at 3514International Drive NW, Washington DC, 20008 (tel. [phone]).There are also consulates general in Atlanta, Boston, Chicago,Houston, Los Angeles, Miami, New York, Philadelphia, and SanFrancisco.POLITICAL CONDITIONSFrom the founding of Israel in 1948 until the election of May1977, Israel was ruled by a coalition government led by the Laboralignment or its constituent parties.  From 1967-70, thecoalition government included all of Israel's parties except thecommunist party.  After the 1977 election, the Likud bloc, thencomposed of Herut, the Liberals, and the smaller La'am Party,came to power, forming a coalition with the National ReligiousParty, Agudat Israel, and others.As head of Likud, Menachem Begin became Prime Minister.  TheLikud retained power in the succeeding election in June 1981, andBegin remained Prime Minister.  In the summer of 1983, Beginresigned and was succeeded by his Foreign Minister, YitzhakShamir.  After losing a Knesset vote of confidence early in 1984,Shamir was forced to call for new elections, held in July of thatyear.The vote was split among numerous parties and provided no clearwinner leaving both Labor and Likud considerably short of aKnesset majority.  Neither Labor nor Likud was able to gainenough support from the small parties to form even a narrowcoalition.  After several weeks of difficult negotiations, theyagreed on a broadly based government of national unity.  Theagreement provided for the rotation of the office of primeminister and the combined office of vice prime minister andforeign minister midway through the government's 50-month term.During the first 25 months of unity government rule, Labor'sShimon Peres served as prime minister, while Likud's YitzhakShamir held the posts of vice prime minister and foreignminister.  Peres and Shamir switched positions in October 1986.The November 1988 elections resulted in a similar coalitiongovernment.  Likud edged Labor out by one seat but was unable toform a coalition with the religious and right-wing parties.Likud and Labor formed another national unity government inJanuary 1989 without providing for rotation.  Yitzhak Shamirbecame Prime Minister, and Shimon Peres became Vice PrimeMinister and Finance Minister.The national unity government fell in March 1990, in a vote ofno-confidence precipitated by disagreement over the government'sresponse to U.S. Secretary of State Baker's initiative in thepeace process.Labor Party leader Peres was unable to attract sufficient supportamong the religious parties to form a government.  Yitzhak Shamirthen formed a Likud-led coalition government including membersfrom religious and right-wing parties.This government took office in June 1990, and held power for 2years.  In the June 1992 national elections, the Labor Partyreversed its electoral fortunes, taking 44 seats.  Labor Partyleader Yitzhak Rabin formed a coalition with Meretz (a group ofthree leftist parties) and Shas (a religious party); thecoalition included the support of two Arab-majority parties.Rabin became Prime Minister in July 1992.ECONOMYIsrael has a mixed economy with substantial governmentparticipation.  It depends on imports of oil, food, grain, rawmaterial, and military equipment.  It is poor in naturalresources but well endowed with skilled labor.Israel's strong commitment to economic development and itstalented work force led to economic growth rates during thenation's first two decades that frequently exceeded 10% annually.This growth transformed the Israeli economy into a modernindustrial and service economy with a per-capita income roughlycomparable to that of Ireland, Spain, and Greece.In 1992, GDP was an estimated $65 billion.  The major industrialsectors are metal products, electronic equipment, foodprocessing, chemical and oil products, transport equipment, andrubber and plastic products.  Israel's growth rate began to slowin the mid-1970s, primarily due to high inflation that peaked inthe first half of the 1980s.In July 1985, the government began a comprehensive economicstabilization program to attack inflation and thebalance-of-payments deficit.  The United States helped financethe program by providing $1.5 billion in emergency economic aid.This program reduced inflation to about 20% in 1986; in 1992,inflation fell to 9.6%, a single-digit figure for the first timein 23 years.Despite a slowdown in growth toward the end of 1992, the annualGDP growth rate was a strong 6.4%, with growth balanced amongvarious economic sectors in contrast to the high growth rate inthe construction sector that had characterized the last fewyears.Unemployment has become one of the government's chief concerns,reaching a historically high 11% in 1992, in part because of highimmigration level. Although the government has removed manyrestrictions on capital, labor, and, currency markets in recentyears, heavy government involvement continues to characterize theIsraeli economy.Many economic policy makers recognize that structural reform isneeded, but the implementation of reforms has been slow.  PrimeMinister Rabin continues to stress that economic reform will be apriority of his administration.  Israel's balance-of-paymentsproblems have been offset by capital inflows.FOREIGN RELATIONSIn addition to seeking an end to hostilities with Arab forces,against which it has fought 5 wars in its 45-year history, Israelhas given high priority to gaining wide acceptance as a sovereignstate with an important international role.  Before 1967, it hadestablished diplomatic relations with a majority of the world'snations, except for the Arab states and most other Muslimcountries.While the Soviet Union and the communist states of Eastern Europe(except Romania) broke diplomatic relations with Israel in the1967 war, those relations had been restored by 1991.  Israel hasalso successfully established relations with most of therepublics of the former Soviet Union except Turkmenistan.Currently, 125 countries--nearly 70% of all UN members--haveestablished formal diplomatic relations with Israel.  Since 1987,42 countries have formalized ties with Israel--31 of these sincethe beginning of 1991.  Both China and India establishedrelations with Israel in early 1992.DEFENSEIsrael's ground, air, and naval forces, known as the IsraelDefense Force (IDF), fall under the command of a single generalstaff.  Conscription is universal for Jewish men and women overthe age of 18, although exemptions may be made on religiousgrounds.  Druze, members of a small Islamic sect living inIsrael's mountains, also serve in the IDF.  Arab-Israelis, withvery few exceptions, do not serve.  During 1950-66, Israel spentan average of 9% of GDP on defense.  Real defense expendituresincreased dramatically after both the 1967 and 1973 wars.  In1992, the military budget reached 9.9% of GDP and representedabout 16% of the total 1992 budget.In 1983, the United States and Israel established the JointPolitical Military Group, which includes joint military planningand combined exercises.  The United States and Israel havecollaborated on military research and weapons development andhave signed an agreement allowing Israel to participate inStrategic Defense Initiative (SDI) research.U.S.-ISRAELI RELATIONSCommitment to Israel's security and well-being has been acornerstone of U.S. policy in the Middle East since Israel'screation in 1948, in which the United States played a keysupporting role.  Israel and the United States are bound closelyby historic and cultural ties as well as by mutual interests.Continuing U.S. economic and security assistance to Israelacknowledges these ties and signals U.S. commitment.  The broadissues of Arab-Israeli peace have been a major focus in theU.S.-Israeli relationship.  U.S. efforts to reach a Middle Eastpeace settlement are based on UN Security Council Resolutions 242and 338.These resolutions provided the basis for cease-fire anddisengagement agreements concerning the Sinai and the GolanHeights between Israel, Egypt, and Syria and in promoting theCamp David accords and the Egyptian-Israeli Peace Treaty.  Theywere also the foundation for President Reagan's September 1982peace initiative and Secretary Shultz's January 1988 initiativethat aimed at stimulating conditions to bring Jordan andrepresentative Palestinians into the Middle East peace process.The October 1991 Madrid conference also recognized the importanceof Security Council Resolutions 242 and 338 in resolving regionaldisputes and launched a series of direct bilateral andmultilateral negotiations between Israel and the neighboring Arabcountries.  These talks were designed to finally resolveoutstanding security, border, and other issues between thenations of the region while providing a basis for mutualcooperation on issues of general concern, including the status ofrefugees, disarmament and security, water and environmentalconcerns, and economic development.On a bilateral level, relations between the United States andIsrael have been strengthened in recent years by theestablishment of cooperative institutions in many fields.Bilateral foundations in the fields of science and technologyinclude the Binational Science Foundation and the BinationalAgricultural Research and Development Foundation.  TheU.S.-Israeli Education Foundation sponsors educational andcultural programs.In addition, the Joint Economic Development Group maintains ahigh-level dialogue on economic issues.  In early 1993, theUnited States and Israel agreed to establish a joint Science andTechnology Commission.  In 1983, the United States and Israelestablished the Joint Political Military Group, which includesjoint military planning and combined exercises.The United States and Israel have collaborated on militaryresearch and weapons development and have signed an agreementallowing Israel to participate in Strategic Defense Initiative(SDI) research.Principal U.S. OfficialsU.S. EmbassyCharge d'affaires ad interim--William A. BrownDeputy Chief of Mission--James A. LaroccoPolitical Affairs--Bruce BurtonEconomic Affairs--Alan ParkerAdministration--Wayne K. LogsdonConsular Affairs--Robert E. TynesPublic Affairs (USIS)--David P. GoodCommercial Affairs--Judith A. Henderson Science Attache--David W. MulenexDefense Attache--Col. John V. SiebertThe U.S. embassy in Israel is located at 71 Hayarkon Street, TelAviv (tel. [phone]).U.S. Consulate GeneralConsul General--Edward G. Abington, Jr.Deputy Principal Officer--John H. Bargeron, Jr.Chief, Consular Section--Kathleen RileyThe Consulate General in Jerusalem has offices at 18 Agron Road(tel. [phone]) and on Nablus Road (tel. [phone]).Travel NotesClothing:  Clothing needs are about the same as for the Americansouthwest.  Low-heeled, thick-soled walking shoes are best suitedfor most tourist sites.  Dress at most religious sites should beappropriately modest.  Most of Israel is quite warm and humid,except for December through March.  Rainfall occurs regularlyduring winter months; occasionally it snows in Jerusalem and inthe mountains.Health:  Israel requires that at least one pharmacy in aneighborhood be open or on call at all times; a list is publishedat least weekly in the English-language Jerusalem Post.  Israeland U.S. public health standards are about equal. Adequatemedical and dental care is available, and tapwater is potable.Telecommunications:  Telephone and telegraph services, domesticand international, are efficient.  Rates are higher than in theU.S.  Israel is 7 standard time zones ahead of eastern standardtime.Published by the U.S. Department of State  Bureau of PublicAffairs, Office of Public Communication.  Managing Editor:  PeterA. Knecht  Editor:  Peter Freeman</text>
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        <text>U.S. Department of StateBackground Notes:  Ireland, November 1995Bureau of Public AffairsNovember 1995Official Name:  Ireland PROFILE Geography Area: 70,282 sq. km. (27,136 sq. mi.); slightly larger than West Virginia.  Cities: Capital--Dublin (pop. 502,749; about 1 million in metropolitan area, or about one-third the total population). Other cities--Cork (133,271), Limerick (56,279), Galway (47,104), Waterford, (39,529). Terrain: Arable 10%, meadows and pastures 77%, rough grazing in use 11%, inland water 2%. Climate: Temperate maritime. People Nationality:  Noun--Irishman, Irishwoman.  Adjective--Irish. Population: 3.6 million. Ethnic groups: Celtic, with English minority. Religions: Roman Catholic 91%, other Christian denominations 4%. Languages: English, Irish (Gaelic). Education: Years compulsory--9. Attendance--93%.  Literacy--90%. Health: Infant mortality rate--6/1,000. Life expectancy--75 years: male 72 yrs., female 78 yrs. Work force: Services--54%.  Industry-- 28%. Agriculture--12%.   Government--6%. Government Type: Parliamentary republic. Independence: 1921. Constitution: December 29, 1937. Branches: Executive--president (chief of state); prime minister (Taoiseach--pronounced "TEE-shuk") head of government.  Legislative--bicameral National Parliament (Oireachtas--pronounced "ir-ROCK-tas"): House of Representatives (Dail--pronounced "DAW-il"), and Senate (Seanad--pronounced "SHAN-ad"). Judicial--Supreme Court. Administrative subdivisions: 26 counties. Major political parties: Fianna Fail, Fine Gael, Labor, Workers' Party, Progressive Democrats, Democratic Left, Green Party. Suffrage: Universal over 18. Economy GNP (1994): $46 billion. Annual growth rate (1994): 5.5%. Per capita income: $12,000. Natural resources: Zinc, lead, natural gas, barite, copper, gypsum, limestone, dolomite, peat, silver, gold. Agriculture (8% of GNP): Products--cattle, meat, and dairy products, potatoes, barley, sugar beets, hay, silage, wheat. Industry (36% of GNP): Types--food processing, beverages, engineering, computer equipment, textiles and clothing, chemicals and pharmaceuticals, construction. Trade (1994): Exports--$36 billion:   computer equipment, chemicals, meat, dairy products, machinery. Major markets--U.K. 27%, other EU countries 41%, U.S. 8%. Imports--$26 billion:  grains, petroleum products, machinery, transport equipment, chemicals, textile yarns.  Major suppliers--U.K. 36%, other EU countries 20%, U.S. 18%. U.S.-IRISH RELATIONS U.S. relations with Ireland are based on common ancestral ties and on similar values and political views. The United States seeks to maintain and strengthen the traditionally cordial relations between the people of the United States and Ireland. Emigration is a major factor affecting the political, economic, and social fabric of Ireland. Pushed by high unemployment, more than 150,000 persons have left the country in the last 10 years. The primary destination is the United Kingdom, with the United States a strong second. The status of tens of thousands of Irish illegals in the United States, most of them under 30 years of age, is a matter of concern and debate in Irish public life.U.S. Government policy on Northern Ireland condemns all acts of terrorism and violence. It also cautions all Americans to question closely any appeal for financial or other aid from groups involved in the Northern Ireland conflict to ensure that contributions do not end up in the hands of those who perpetuate violence, either directly or indirectly. The United States has warmly welcomed the Anglo-Irish Agreement of 1985 and the 1993 Downing Street Declaration as a framework for progress in Northern Ireland.  Trade and Investment  In 1994, trade between Ireland and the United States was $7.6 billion, a 20%  increase over 1993.  U.S. exports to Ireland were $4.7 billion, an increase of about 25% over 1993 and 18% of Ireland's total imports.  The range of U.S. products includes electrical components, computers and peripherals, drugs and pharmaceuticals, electrical equipment and livestock feed.  Irish exports to the United States grew by 10% to just under $3 billion in 1993, representing about 8% of all Irish exports. Exports to the United States include alcoholic beverages, chemicals and related products, electronic data processing equipment, electrical machinery, textiles and clothing, and glassware.The U.S. traditionally has had a trade surplus with Ireland, due primarily to purchases of U.S.-origin raw materials and intermediate goods by the many U.S. subsidiaries in Ireland and substantial trade in agricultural products. In 1994, the U.S. trade surplus was $1.8 billion, compared to  $1 billion in 1993. Given the continued favorable outlook for the Irish economy, good sales opportunities exist for U.S. producers in Ireland. Export-Import Bank financing and the presence of major U.S. banks in Ireland facilitate marketing by U.S. suppliers.U.S. statements have noted the important contribution toward economic and social progress represented by American industrial investment in Ireland--north and south--and have pledged to maintain the U.S. commitment to facilitate the growth of such job-creating investment. U.S. investment has been particularly important to the growth and modernization of Irish industry over the past 25 years, providing new technology, export capabilities, and employment opportunities. U.S. investment in Ireland is more than  $8 billion. There are more than 400 U.S. subsidiaries, employing about 50,000 people and spanning activities from manufacturing of high-tech electronics, computer products, medical supplies, and pharmaceuticals to retailing and services.  Many U.S. businesses find Ireland an attractive location to manufacture for the EU market, since it is inside the EU customs area. Government policies are generally formulated to facilitate trade and inward direct investment. The availability of an educated, well-trained, English-speaking work force and relatively moderate wage costs have been important factors. Ireland offers good long-term growth prospects for U.S. companies under an innovative financial incentive program, including capital grants and favorable tax treatment, such as a reduction from 40% to 38% in the standard corporation tax rate and a 10% corporation income tax rate for certain manufacturing firms. Principal U.S. Officials Ambassador--Jean Kennedy Smith Deputy Chief of Mission--Dennis A. Sandberg Administrative Officer--vacant Commercial Attache--Edward Cannon Consular Officer--Ann Sides Defense Attache--Col. William Torpey Economic Officer--Madelyn Spirnak Political Officer--Richard Norland Public Affairs Officer--Lynn Cassel  The U.S. embassy in Ireland is located at 42 Elgin Road, Ballsbridge, Dublin 4 (tel. [phone];  fax [phone]). The consular section is located in an annex across the street on the third floor of Hume House.  GOVERNMENT AND POLITICAL CONDITIONS Ireland is a sovereign, independent, democratic state with a parliamentary system of government. The president, who serves as chief of state in a largely ceremonial role, is elected for a seven-year term and can be re-elected only once. In carrying out certain constitutional powers and functions, the president is aided by the Council of State, an advisory body. On the prime minister's advice, the president also dissolves the House of Representatives.The president appoints as prime minister the leader of the political party, or coalition of parties, which wins the most seats in the House of Representatives. Executive power is vested in a cabinet whose ministers are nominated by the prime minister and approved by the House.The bicameral National Parliament (Oireachtas) consists of the Senate (Seanad Eireann) and the House of Representatives (Dail Eireann). The Senate is composed of 60 members--11 nominated by the prime minister, six elected by the national universities, and 43 elected from panels of candidates established on a vocational basis. The Senate has  the power to delay legislative proposals and is allowed 90 days to consider and amend bills sent to it by the House, which--because it can initiate legislation--wields greater power in Parliament. The House has 166 members popularly elected to a maximum term of five years under a complex system of proportional representation.Judges are appointed by the president on nomination by the government and can be removed from office only for misbehavior or incapacity and then only by resolution of both houses of parliament. The ultimate court of appeal is the Supreme Court, consisting of the chief justice and five other justices. The Supreme Court can also decide upon the constitutionality of legislative acts if the president asks for an opinion.Local government is by elected county councils and--in the cities of Dublin, Cork, Limerick, and Waterford--by county borough corporations. In practice, however, authority remains with the central government. Political Parties From 1800 to 1921, Ireland was part of the United Kingdom. The Anglo-Irish Treaty of 1921 established the Irish Free State, which after World War II left the British Commonwealth and became a republic. Six northern counties--Northern Ireland--remained part of the United Kingdom.Irish politics remain dominated by the two political parties that grew out of Ireland's bitter 1922-23 civil war. Fianna Fail was formed by those who opposed the 1921 treaty that partitioned the island. Although treaty opponents lost the civil war, Fianna Fail quickly became Ireland's largest political party. Fine Gael, representative of the pro-treaty forces, remains the country's second-largest party.In recent years, however, there have been signs that this largely two-party structure is breaking down. Mary Robinson of the Labour Party shocked the political establishment by winning the 1990 presidential election. Before Robinson, the presidency had always been held by either Fianna Fail or Fine Gael. Articulating a progressive agenda for Ireland's future and outspoken on social issues, Robinson represents a distinct break from the conservative politics of the two major parties.The November 1992 general election confirmed this trend. The two main parties lost ground as the Labour Party scored a historic breakthrough, winning 19% of the vote and 33 seats in the House. Fianna Fail won 39% and 68 seats; Fine Gael won 24.5% and 45 seats.  As a result of the election, Labour holds the balance of power between the two largest parties, neither of which was able to win a parliamentary majority. Labour initially chose to go into coalition with Fianna Fail, but that government collapsed in November 1994 over a scandal involving the Attorney General's handling of the extradition of a pedophile priest. In the ensuing struggle, Labour again demonstrated its new kingmaking powers when it dictated the terms of a new "rainbow" government coalition with Fine Gael and the Democratic Left. Northern Ireland Resolving the Northern Ireland problem remains the leading political issue. Nationalists in Northern Ireland want unification with Ireland, while unionists and loyalists want continued union with Great Britain.Since the 1985 Anglo-Irish Agreement granting Ireland a formal voice in Northern Ireland affairs, there has been an extensive dialogue between the two governments on how to bring about a peaceful, democratic resolution of the conflict. In December 1993, then-Irish Prime Minister Reynolds and British Prime Minister Major issued the "Downing Street Declaration." This held out the promise of inclusive political talks on the future of Northern Ireland and led the Irish Republican Army (IRA) to call a "total cessation" of military operations on August 31, 1994. This was followed six weeks later by a similar cease-fire by the loyalist paramilitaries.Following up on the cease-fires, the two governments in February 1995 issued their joint "Frameworks" document, which proposed a basis for negotiations. While the document was generally welcomed by nationalists, it was immediately rejected by unionists, who disparaged it as a "blueprint for a united Ireland."  Despite the negative unionist reaction, the two governments tried to launch the negotiating process by announcing that they would hold a series of bilaterals with all the constitutional parties in the north.By the summer of 1995, however, this effort had yet to get off the ground due to a continuing disagreement between the British Government and Sinn Fein, the political arm of the IRA. The British Government insisted that Sinn Fein could not be included in all-party talks on the future of Northern Ireland until the IRA had demonstrated its commitment to the democratic process by beginning to decommission its large cache of arms. Sinn Fein responded that it was not in position to have the IRA decommission its weapons at least until a political settlement was in sight. With the approach of the one-year anniversary of the IRA cease-fire, there was hope that the impasse could be broken by the establishment of an international commission to study the problem, although by mid-November, such a body had yet to be set up. Principal Government Officials President--Mary Robinson Prime Minister --John Bruton Deputy Prime Minister and Minister for Foreign Affairs--Dick Spring Ambassador to the United States--Dermot Gallagher  Ireland maintains an embassy in the United States at 2234 Massachusetts Ave. NW, Washington, DC 20008 (tel. [phone]/42). Irish consulates are located in New York, Chicago, Boston, and San Francisco.TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone]. Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone]. Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). Upon their arrival in a country, U.S. citizens are encouraged to register at the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you en route in case of an emergency. Further Electronic Information: Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line. Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet: Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone]. Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone]. National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ============================== Background Notes Series -- Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC  This information is in the public domain and may be reproduced without permission; citation of this source is appreciated. (###)</text>
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        <text>BACKGROUND NOTES:  IRANPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJULY 1994Official Name:  Islamic Republic of IranPROFILEGeographyArea:  1.6 million sq. km. (636, 294 sq. mi.); slightly largerthan Alaska.Cities:  Capital--Tehran. Other cities--Isfahan, Tabriz, Mashhad,Shiraz.Terrain:  Desert and mountains.Climate:  Semiarid; subtropical along the Caspian coast.PeopleNationality:  Noun and adjective--Iranian(s).Population (1992):  61 million.Annual growth rate (1992):  3.5%.Ethnic groups (1992):  Persian; Azeri Turks; Kurds; Arabs;Turkomans and Baluchis; and Lur, Bakhtiari, and Qashqai tribes.Religions:  Shi'a Muslim 95%; Sunni Muslim 4%; Zoroastrian,Jewish, Christian, and Baha'i 1%.Languages:  Persian, Turkish dialects, Kurdish, Luri, Gilaki,Arabic.Education (1992):  Literacy--50%.Health (1992):  Infant mortality rate--64/1,000.  Lifeexpectancy--65 years.Work force:  Agriculture--33%.  Manufacturing--21%.  There is ashortage of skilled labor.GovernmentType:  Islamic republic.Constitution:  Ratified December 1979, revised 1989.Branches:  Executive--"Leader of the Islamic Revolution" (head ofstate); president and Council of Ministers.Legislative--270-member National Consultative Assembly (Majles).Judicial--Supreme Court.Political parties:  None.Suffrage:  Universal at 15.Administrative subdivisions:  25 provinces.Flag:  Three horizontal bands of green, white, and red, with thenational emblem, a stylized representation of the word Allah, inthe center.EconomyGDP (est.):  $90 billion.Annual growth rate (est.):  5%.Per capita income (est.):  $1,500.Natural resources:  Petroleum, natural gas, and some mineraldeposits.Agriculture:  Principal products--wheat, rice, other grains,sugar beets, fruits, nuts, cotton, dairy products, wool, caviar;not self-sufficient in food.Industry:  Types--petroleum, petrochemicals, textiles, cement andbuilding materials, food processing (particularly sugar refiningand vegetable oil production), metal fabricating (steel andcopper).Trade:  Exports--$18 billion:  petroleum 90%, carpets, fruits,nuts, hides.  Imports--$28 billion:  food, machinery, and medicalproducts.  Major markets/suppliers:  Germany, Japan, Italy, U.K.,France.Exchange rate (1994, unofficial):  2,600 rials=U.S. $1.PEOPLEAlmost two-thirds of Iran's people are of Aryan origin--theirancestors migrated from Central Asia.  The major groups in thiscategory include Persians, Kurds, Lurs, and Baluchi.  Theremainder are primarily Turkic but also include Arabs, Armenians,Jews, and Assyrians.The 1979 Islamic revolution and the war with Iraq transformedIran's class structure politically, socially, and economically.In general, however, Iranian society remains divided into urban,market-town, village, and tribal groups.  Clerics, calledmullahs,  dominate politics and nearly all aspects of Iranianlife, both urban and rural.  After the fall of the Pahlavi regimein 1979, much of the urban upper class of prominent merchants,industrialists, and professionals, favored by the former Shah,lost standing and influence to the senior clergy and theirsupporters.  Bazaar merchants, who were allied with the clergyagainst the Pahlavi shahs, have also gained political andeconomic power since the revolution.  The urban working class hasenjoyed somewhat enhanced status and economic mobility, spurredin part by opportunities provided by revolutionary organizationsand the government bureaucracy.Unemployment, a major problem even before the revolution, hasmany causes, including population growth, the war with Iraq, andshortages of raw materials and trained managers.  Farmers andpeasants received a psychological boost from the attention giventhem by the Islamic regime but appear to be hardly better off ineconomic terms.   The government has made progress on ruraldevelopment, including electrification and road building but hasnot yet made a commitment to land redistribution.Most Iranians are Muslims; 95% belong to the Shi'a branch ofIslam, the official state religion, and about 4% belong to theSunni branch, which predominates in neighboring Muslim countries.Non-Muslim minorities include Zoroastrians, Jews, Baha'is, andChristians.HISTORYThe ancient nation of Iran, historically known to the West asPersia and once a major empire in its own right, has been overrunfrequently and has had its territory altered throughout thecenturies.  Invaded by Arabs, Seljuk Turks, Mongols, andothers--and often caught up in the affairs of larger powers--Iranhas always reasserted its national identity and has developed asa distinct political and cultural entity.Archeological findings have placed knowledge of Iranianprehistory at middle paleolithic times (100,000 years ago).  Theearliest sedentary cultures date from 18,000-14,000 years ago.The sixth millennium B.C. saw a fairly sophisticated agriculturalsociety and proto-urban population centers.  Many dynasties haveruled Iran, the first of which was under the Achaemenians(559-330 B.C.), a dynasty founded by Cyrus the Great.  After theHellenistic period (300-250 B.C.) came the Parthian (250 B.C.-226A.D.) and the Sassanian (226-651) dynasties.The seventh-century Arab-Muslim conquest of Iran was followed byconquests by the Seljuk Turks, the Mongols, and Tamerlane.  Iranunderwent a revival under the Safavid dynasty (1502-1736), themost prominent figure of which was Shah Abbas.  The conquerorNadir Shah and his successors were followed by the Zand dynasty,founded by Karim Kahn, and later the Qajar (1795-1925) and thePahlavi dynasties (1925-1979).Modern Iranian history began with a nationalist uprising againstthe Shah (who remained in power) in 1905, the granting of alimited constitution in 1906, and the discovery of oil in 1908.In 1921, Reza Khan, an Iranian officer of the Persian CossackBrigade, seized control of the government.  In 1925, he madehimself Shah, ruling as Reza Shah Pahlavi for almost 16 years andinstalling the new Pahlavi dynasty.Under his reign, Iran began to modernize and to secularizepolitics, and the central government reasserted its authorityover the tribes and provinces.  In September 1941, following theAllies' (U.K.-Soviet Union) occupation of western Iran, Reza Shahwas forced to abdicate.  His son, Mohammad Reza Pahlavi, becameShah and ruled until 1979.During World War II, Iran was a vital link in the Allied supplyline for lend-lease supplies to the Soviet Union.  After the war,Soviet troops stationed in northwestern Iran not only refused towithdraw but backed revolts that established short-lived,pro-Soviet separatist regimes in the northern regions ofAzerbaijan and Kurdistan.  These were ended in 1946.  TheAzerbaijan revolt crumbled after U.S. and UN pressure forced aSoviet withdrawal and Iranian forces suppressed the Kurdishrevolt.In 1951, Premier Mohammed Mossadeq, a militant nationalist,forced the parliament to nationalize the British-owned oilindustry.  Mossadeq was opposed by the Shah and was removed, buthe quickly returned to power.  The Shah fled Iran but returnedwhen supporters staged a coup against Mossadeq in August 1953.Mossadeq was then arrested by pro-Shah army forces.In 1961, Iran initiated a series of economic, social, andadministrative reforms that became known as the Shah's WhiteRevolution.  The core of this program was land reform.Modernization and economic growth proceeded at an unprecedentedrate, fueled by Iran's vast petroleum reserves, the third-largestin the world.In 1978, domestic turmoil swept the country as a result ofreligious and political opposition to the Shah's rule andprograms--especially SAVAK, the hated internal security andintelligence service.  In January 1979, the Shah left Iran; hedied abroad several years after.On February 1, 1979, exiled religious leader Ayatollah RuhollahKhomeini returned from France to direct a revolution resulting ina new, theocratic republic guided by Islamic principles.  Back inIran after 15 years in exile in Turkey, Iraq, and France, hebecame Iran's national religious leader.  Following Khomeini'sdeath on June 3, 1989, the Assembly of Experts--an elected bodyof senior clerics--chose the outgoing president of the republic,Ali Khamenei, to be his successor as national religious leader inwhat proved to be a smooth transition.In August 1989, Ali Akbar Hashemi-Rafsanjani, the speaker of theNational Assembly, was elected President by an overwhelmingmajority.  He was re-elected June 11, 1993, with a more modestmajority of about 63%; some Western observers attributed thereduced voter turnout to disenchantment with the deterioratingeconomy.GOVERNMENTThe December 1979 Iranian constitution defines the political,economic, and social order of the Islamic republic.  It declaresthat Shi'a Islam of the Twelver (Jaafari) sect is Iran's officialreligion.  The country is governed by secular and religiousleaders and governing bodies, and duties often overlap.  Thechief ruler is a religious leader or, in the absence of a singleleader, a council of religious leaders.  The constitutionstipulates that this national religious leader or members of thecouncil of leaders are to be chosen from the clericalestablishment on the basis of their qualifications and the highesteem in which they are held by Iran's Muslim population.  Thisleader or council appoints the six religious members of theCouncil of Guardians (the six lay members--lawyers--are named bythe National Consultative Assembly, or Majles); appoints thehighest judicial authorities, who must be religious jurists; andis commander-in-chief of the armed forces.  The Counc!il of Guardians, in turn, certifies the competence of candidates for the presidency and theNational Assembly.The president of the republic is elected by universal suffrage toa four-year term by an absolute majority of votes and supervisesthe affairs of the executive branch.  The president appoints andsupervises the Council of Ministers (members of the cabinet),coordinates government decisions, and selects government policiesto be placed before the National Assembly.The National Assembly consists of 270 members elected to afour-year term.  The members are elected by direct and secretballot.  All legislation from the assembly must be reviewed bythe Council of Guardians.  The Council's six lawyers vote only onlimited questions of the constitutionality of legislation; thereligious members consider all bills for conformity to Islamicprinciples.In 1988, Ayatollah Khomeini created the Council for Expediency,which resolves legislative issues on which the Majles and theCouncil of Guardians fail to reach an agreement.  Since 1989, ithas been used to advise the national religious leader on mattersof national policy as well.  It is composed of the heads of thethree branches of government, the clerical members of the Councilof Guardians, and members appointed by the national religiousleader for three-year terms.  Cabinet members and Majlescommittee chairs also serve as temporary members when issuesunder their jurisdictions are considered.Judicial authority is constitutionally vested in the SupremeCourt and the four-member High Council of the Judiciary; theseare two separate groups with overlapping responsibilities and onehead.  Together, they are responsible for supervising theenforcement of all laws and for establishing judicial and legalpolicies.The military is charged with defending Iran's borders, while theRevolutionary Guard Corps is charged mainly with maintaininginternal security.  Iran has 25 provinces, each headed by agovernor general.  The provinces are further divided intocounties, districts, and villages.Principal Government OfficialsLeader of the Islamic Revolution--Ali Hoseini-KhameneiPresident--Ali Akbar Hashemi-RafsanjaniFirst Vice President--Dr. Hasan Ebrahim HabibiForeign Minister--Ali Akbar VelayatiAmbassador to the United Nations--Dr. Kamal Ali Naqi KharaziPOLITICAL CONDITIONSIran's post-revolution difficulties have included an eight-yearwar with Iraq, internal political struggles and unrest, andeconomic disorder.  The early days of the regime werecharacterized by severe human rights violations and politicalturmoil, including the seizure of the U.S. embassy compound andits occupants on November 4, 1979, by Iranian militants.By mid-1982, a succession of power struggles eliminated first thecenter of the political spectrum and then the leftists, leavingonly the clergy.  There has been some moderation of excesses bothinternally and internationally, although Iran remains asignificant sponsor of terrorism.The Islamic Republican Party (IRP) was Iran's dominant politicalparty until its dissolution in 1987; Iran now has no functioningpolitical parties.  The Iranian Government is opposed by a fewarmed political groups including the Mojahedin-e-Khalq (People'sMojahedin of Iran), the People's Fedayeen, and the KurdishDemocratic Party.ECONOMYPre-revolutionary Iran's economic development was rapid.Traditionally an agricultural society, by the 1970s, Iran hadachieved significant industrialization and economicmodernization.  However, the pace of growth had sloweddramatically by 1978, just before the Islamic revolution.Since the revolution, increased government involvement in theeconomy has further stunted growth.  Iran's current difficultiescan be traced to a combination of factors.  Economic activity,severely disrupted by the revolution, was further depressed bythe war with Iraq and by the decline of oil prices beginning inlate 1985.  After the war with Iraq ended, the situation began toimprove:  Iran's GDP grew for two years running, partly from anoil windfall in 1990, and there was a substantial increase inimports.A decrease in oil revenues in 1991 and growing external debt,though, dampened optimism.  In March 1989, Khomeini had approvedRafsanjani's five-year plan for economic development, whichallowed Iran to seek foreign loans.  But mismanagement andinefficient bureaucracy, as well as political and ideologicalinfighting, have hampered the formulation and execution ofcoherent economic policies.All major business and industrial growth indicators aresignificantly below pre-revolutionary levels; unemployment wasestimated to be 30% for 1993.  Although Islam guarantees theright to private ownership, banks and some industries--includingthe petroleum, transportation, utilities, and miningsectors--have been nationalized.  The import-dependent industrialsector is further plagued by low labor productivity, lack offoreign exchange, and shortages of raw materials and spare parts.Agriculture also has suffered from shortages of capital, rawmaterials, and equipment, as well as from the war with Iraq; inaddition, a major area of dissension within the regime has beenhow to proceed with land reform.Oil revenues have been affected by the decline of oil prices.Oil accounts for about 90% of Iran's exports; because of reducedrevenues, the government has imposed austerity measures, addingto the hardships of the Iranian people.  In 1993, Iran's OPECquota was about 3.4 million barrels per day, and estimatedproduction was 3.5 million barrels per day.Iran was unable to meet its obligations on short-term debt in1993; by the end of the year, it was more than $9 billion inarrears on payments.  Early in 1994, estimates of Iran's debtranged from $16 billion to $30 billion.FOREIGN RELATIONSKhomeini's revolutionary regime initiated sharp changes from theforeign policy pursued by the Shah, particularly in reversing thecountry's orientation toward the West.  In the Middle East,Iran's only significant ally has been Syria.  Iran's regionalgoals are dominated by wanting to establish a leadership role,curtail the presence of the U.S. and other outside powers, andbuild trade ties.In broad terms, Iran's "Islamic foreign policy" emphasizes:--  Vehement anti-U.S. and anti-Israel stances;--  Eliminating outside influence in the region;--  Exporting the Islamic revolution;--  Support for Muslim political movements abroad; and--  A great increase in diplomatic contacts with developingcountries.Despite these guidelines, however, bilateral relations arefrequently confused and contradictory due to Iran's oscillationbetween pragmatic and ideological concerns.The country's foreign relations since the revolution have beentumultuous.  In addition to the U.S. hostage crisis, tensionbetween Iran and Iraq escalated in September 1980, when Iraqinvaded Iran.  Much of the dispute centered around sovereigntyover the waterway between the two countries, the Shatt al-Arab,although underlying causes included each nation's overt desirefor the overthrow of the other's government.  Iran demanded thewithdrawal of Iraqi troops from Iranian territory and the returnto the status quo ante for the Shatt al-Arab as established underthe 1975 Algiers Agreement signed by Iraq and Iran.  After eightpunishing years of war, in July 1988, Iran agreed to UN SecurityCouncil Resolution 598, which called for a cease-fire.  Thecease-fire was implemented on August 20, 1988; neither nation hadmade any real gains in the war.Iran's relations with many of its Arab neighbors have beenstrained by Iranian attempts to spread its Islamic revolution.In 1981, Iran supported a plot to overthrow the BahrainiGovernment.  In 1983, Iran expressed support for Shi'ites whobombed Western embassies in Kuwait, and in 1987, Iranian pilgrimsrioted during the Hajj (pilgrimage) in Mecca, Saudi Arabia.Nations with strong fundamentalist movements, such as Egypt andAlgeria, also mistrust Iran.  Iran backs Hizballah, Hamas, thePalestinian Islamic Jihad, and the Popular Front for theLiberation of Palestine-General Command--all groups violentlyopposed to the Arab-Israeli peace process.Relations with Western European nations have alternated betweenimprovements and setbacks.  French-Iranian relations were badlystrained by the sale of French arms to Iraq.  Since the war,relations have improved commercially but periodically areworsened by Iranian-sponsored terrorist acts committed in France.Another source of tension has been Ayatollah Khomeini's 1989 callfor all Muslims to kill Salman Rushdie, British author of TheSatanic Verses, a novel many Muslims consider blasphemous.  TheUnited Kingdom has sheltered Rushdie, and strains over this issuepersist.Iran maintains regular diplomatic and commercial relations withRussia and the other Newly Independent States of the formerSoviet Union.  Both Iran and Russia feel they have importantnational interests at stake in developments in Central Asia andthe Transcaucasus. Russian and other sales of military equipmentand technology concern Iran's neighbors and the United States.Iran spends about 14%-15% of its GDP on its military.  Branchesof its military include ground forces, a navy, an air force, andRevolutionary Guard Corps.  The Iran-Iraq war took a heavy tollon these military forces.  Iran is trying to modernize itsmilitary and acquire weapons of mass destruction; it does not yethave, but continues to seek, nuclear capabilities.U.S.-IRANIAN RELATIONSOn November 4, 1979, militant Iranian students occupied theAmerican embassy in Tehran with the support of AyatollahKhomeini.  Fifty-two Americans were held hostage for 444 days.On April 7, 1980, the United States broke diplomatic relationswith Iran, and on April 24, 1981, the Swiss Government assumedrepresentation of U.S. interests in Tehran.  Iranian interests inthe United States are represented by the Pakistani Government.In accordance with the Algiers declaration of January 20, 1981,the Iran-U.S. Claims Tribunal (located in The Hague, Netherlands)was established for the purpose of handling claims of U.S.nationals against Iran and of Iranian nationals against theUnited States.  U.S. contact with Iran through The Hague coversonly legal matters.Commercial relations between Iran and the United States consistmainly of Iranian purchases of food and manufactured products.The U.S. Government prohibits the export of military and dual-useitems to Iran as well as items forbidden under anti-terrorismlegislation; it prohibits all imports from Iran.There are serious obstacles to improved relations between the twocountries.  The U.S. Government defines five areas ofobjectionable Iranian behavior:  Iranian efforts to acquirenuclear weapons and other weapons of mass destruction, itsinvolvement in international terrorism, its support for violentopposition to the Arab-Israeli peace process, its threats andsubversive activities against its neighbors, and its dismal humanrights record.  The U.S. believes that normal relations areimpossible until Iran's behavior changes.  However, the UnitedStates has offered to enter into dialogue with authorizedrepresentatives of the Iranian Government without preconditions.The Iranian Government has not accepted this offer.  The UnitedStates has made clear that it does not seek to overthrow theIranian Government but will continue to pressure Iran to changeits behavior.TRAVEL ADVISORYThe Department of State warns all U.S. citizens against travel toIran, where danger continues for Americans because of thegenerally anti-American atmosphere and Iranian Governmenthostility to the U.S. Government.  U.S. citizens traveling toIran have been detained without charge, arrested, and harassed byIranian authorities.  The U.S. Government does not havediplomatic or consular relations with the Islamic Republic ofIran and prohibits imports of goods from Iran as well as exportsof some goods to Iran.Published by the United States Department of State  --  Bureau ofPublic Affairs  --  Office of  Public Communication  --Washington, DC  July 1994  --  Managing Editor:  Peter A. KnechtDepartment of State Publication 7760  --  Background Notes SeriesFor sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>U.S. DEPARTMENT OF STATE BACKGROUND NOTES:  INDIA (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS JULY 1994  Official Name:  Republic of India U.S.-INDIA RELATIONS  U.S.-India ties began improving in the 1980s, with expanding economic ties and a dialogue on a range of issues.  The end of the Cold War offers unprecedented opportunities to further improve bilateral relations and cooperate on numerous common interests.  Collaboration in science and technology, which began in the 1960s in agriculture, has expanded to a broad range of areas.  The U.S. and India also have begun to collaborate on multilateral issues.  India's term on the UN Security Council (1990-92) led to close and productive consultation.    Peace and stability remain the top priority for American foreign policy in South Asia.  The U.S. is committed to promoting improved relations between India and Pakistan, urging both to resolve their bilateral disputes through peaceful negotiations.  Proliferation of nuclear weapons and missile technology poses a challenge to U.S.-India relations.  The two nations have shared interests in promoting democracy, in combating terrorism and narcotics trafficking, and in addressing environmental problems.  The bilateral dialogue on human rights has also intensified.  Trade and investment have grown,  largely as a result of India's sweeping economic reforms, which the United States strongly supports.  The U.S. is India's largest trading partner, with about $6 billion in bilateral trade annually.  The U.S. exported about $2.8 billion to India in 1993.  The United States is also the leading foreign investor in India.  India's newly emerging middle class is both an immense market and a productive force.    India and the U.S. are slowly developing bilateral military relationships, care-fully expanding personnel contacts and exchanges.  In 1992, the two countries inaugurated steering councils overseeing army and navy relationships.  Meanwhile, the Indian navy held exercises with the U.S. and separately with other Western and regional navies.  Principal U.S. Embassy Officials Ambassador--Frank Wisner  Deputy Chief of Mission--Kenneth C. Brill  Public Affairs--Stephen F. Dachi  Political Affairs--Nancy Powell  Economic Affairs--M. Gordon Jones  Commercial Affairs--Jonathan M. Bensky  Agricultural Affairs--Daniel B. Conable  Scientific Affairs-- Paul Maxwell  Administrative Affairs--Cristobal R. Orozco  Consular Affairs--Richard P. Livingston Director, USAID Mission--Walter G. Bollinger  Consuls General Bombay--Charles A. Mast  Calcutta--Robert Boggs  Madras--Timothy P. Hauser  The U.S. embassy in India is located on Shanti Path, Chanakyapuri, New Delhi 110021 (tel. 600651).  Embassy and consulate working hours are Monday to Friday, 8:30 A.M. to 5 P.M.  Visa application hours are 8:30 A.M. to 11:30 A.M., Monday to Friday.    TRAVEL NOTES  Climate and clothing:  Summer clothing is suitable year round in the south.  In the north, lightweight woolens are necessary from mid-December to mid-February.   Customs and currency:  U.S. citizens must have a valid visa sufficient for the number of entries and the length of stay desired.  Foreign currency (including travelers checks) must be declared to customs on arrival if more than $10,000.  Import and export of Indian currency are prohibited.   Health:  Tapwater is unsafe throughout India.  In hotels and restaurants, drink only bottled or carbonated water and avoid ice cubes.  Typhoid, tetanus, hepatitis, and diphtheria shots are recommended.  Health requirements change; check with your local public health service.   Telecommunications:  Telephone service within India and to international points can be irregular and slow. Telegraph service tends to be unreliable. India is 101/2 hours ahead of eastern standard time.   Transportation:  Many international air carriers provide service to New Delhi, Bombay, Calcutta, and Madras.  Indian Airlines has flights to many Indian cities. The railway system provides service throughout the country.  The 1,450-km. (900-mi.) trip from Delhi to Calcutta or Bombay takes from 16 to 24 hours.  The 2,470-km. (1,535-mi.) trip from Delhi to Madras takes about 40 hours.  It is possible to travel nearly everywhere by road during the dry season; however, outside urban areas, the roads are narrow and sometimes impassable during monsoons.  Local transportation includes buses, taxis, three-wheeled scooters, cycle rickshaws, and horsedrawn tongas.  Buses are overcrowded and service is irregular.  Taxis are plentiful in the larger cities.    (###)Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of  Public Communication  --  Washington, DC -- July 1994  --  Managing Editor:  Peter A. Knecht  Department of State Publication 7847 -- Background Notes Series  --  This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC  20402.  (###)  </text>
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        <text>U.S. DEPARTMENT OF STATE BACKGROUND NOTES:  INDIA PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS JULY 1994  Official Name:  Republic of India PROFILE  Geography Area:  3.3 million sq. km. (1.3 million sq. mi.); about the size of the U.S. east of the Missouri and Mississippi Rivers.  Cities:  Capital--New Delhi (pop. 8.5 mil-lion).  Other major cities--Bombay (12.6 million), Calcutta (11.7 million), Madras (5.7 million), Bangalore (4.6 mil-lion), Hyderabad (3.5 million), Ahmedabad (3.6 million).  Terrain:  Varies from Himalayas to flat river valleys.   Climate:  Temperate to subtropical monsoon.  People Nationality: Noun and adjective--Indian(s).   Population (1993 est.):  891 million; urban 27%.  Annual growth rate:  2.1%.  Density:  271/sq. km.  Ethnic groups:  Indo-Aryan 72%, Dravidian 25%, Mongoloid 2%, others.  Religions:  Hindu 82.6%, Muslim 11.4%, Christian 2.4%, Sikh 2%, Jain 0.5%, Buddhist 0.7%, Parsi 0.2%. Languages:  Hindi, English, and 14 other official languages.  Education:  Years compulsory--9 (to age 14).  Literacy--48%.  Health:  Infant mortality rate--81/1,000.  Life expectancy--61 yrs. Work force (est.):  306 million.  Agriculture--67%.  Industry and commerce--19%.  Services and government--8%.  Transport and communications--3%.  Government Type:  Federal republic.  Independence:  August 15, 1947. Constitution:  January 26, 1950. Suffrage:  Universal over 21. Branches:  Executive--president (chief of state), prime minister (head of government), Council of Ministers (cabinet).  Legislative--bicameral parliament (Rajya Sabha or Council of States and Lok Sabha or House of the People).  Judicial--Supreme Court. Political parties:  Congress (I), Bharatiya Janata Party, Janata Dal, Communist Party of India, Communist Party of India--Marxist, and numerous regional and small national parties. Political subdivisions:  25 states(1), 7 union territories.  Flag:  Saffron, white, and green horizontal bands with a blue spoked wheel centered.   Economy  GDP:  $252 billion.  Real growth rate:  3.8%.  Per capita GDP:  $284. Natural resources:  Coal, iron ore, manganese, mica, bauxite, chromite, thorium, limestone, barite, titanium ore, diamonds, crude oil. Agriculture (32% of GDP):  Products--wheat, rice, coarse grains, oilseeds, sugar, cotton, jute, tea. Industry (27% of GDP):  Products--textiles, jute, processed food, steel, machinery, transport equipment, cement, aluminum, fertilizers, mining, petroleum, chemicals, computer software.   Trade:  Exports--$23 billion:  crude oil, engineering goods, precious stones, cotton apparel and fabrics, handicrafts, tea.  Imports--$24 billion:  petroleum, machinery and transport equipment, edible oils, fertilizer, jewelry, iron and steel.  Major partners--U.S., Russia, Japan, Iraq, Iran, EU, Central and Eastern Europe.  Official exchange rate:  31.25 rupees=U.S. $1.    ________(1)  This number includes the Indian state of Jammu and Kashmir.  The United States considers all of the former princely state of Kashmir to be disputed territory.  Pakistan and China also control parts of Kashmir. _________  PEOPLE  Although India occupies only 2.4% of the world's land area, it supports nearly 15% of the world's population.  Only China has a larger population.  Forty percent of Indians are younger than 15 years old.  About 80% of the people live in more than 550,000 villages, and the remainder in more than 200 towns and cities.  Over thousands of years of its history, India has been invaded from the Iranian plateau, Central Asia, Arabia, Afghanistan, and the West; Indian people and culture have absorbed and changed these influences to produce a remarkable racial and cultural synthesis.    Religion, caste, and language are major determinants of social and political organization in India today.  The government has recognized 16 languages as official; Hindi is the most widely spoken.  Although 83% of the people are Hindu, India also is the home of more than 120 million Muslims--one of the world's largest Muslim populations.  The population also includes Christians, Jews, Sikhs, Jains, Buddhists, and Parsis.   The caste system reflects Indian  historical and religiously defined hierarchies.  Traditionally, there are four castes identified, plus a category of outcastes or untouchables.  In reality, however, there are thousands of subcastes, and it is with these subcastes that the majority of Hindus identify.  Despite economic modernization and laws countering discrimination against the lower end of the class structure, the caste system remains an important factor in Indian society.  HISTORY  The people of India have had a continuous civilization since 2500 B.C., when the inhabitants of the Indus River Valley developed an urban culture based on commerce and sustained by agricultural trade.  This civilization declined around 1500 B.C., probably due to ecological changes.  During the second millennium B.C., pastoral, Aryan-speaking tribes migrated from the northwest into the subcontinent.  As they settled in the middle Ganges Valley, they adapted to antecedent cultures.  The political map of ancient and medieval India was made up of myriad kingdoms with fluctuating boundaries.  In the fourth and fifth centuries A.D., northern India was unified under the Gupta Dynasty.  During this period, known as India's Golden Age, Hindu culture and political administration reached new heights.  Islam spread across the subcontinent over a period of 500 years.  In the 10th and 11th centuries, Turks and Afghans invaded India and established sultanates in Delhi.  In the early 16th century, descendants of Genghis Khan swept across the Khyber Pass and established the Mughal (Mogul) Dynasty, which  lasted for 200 years.  From the 11th to the 15th centuries, southern India was dominated by the Hindu Chola and Vijayanagar Dynasties.  During this time, the two systems--the prevailing Hindu and the Muslim--mingled, leaving lasting cultural influences on each other.  The first British outpost in South Asia was established in 1619, at Surat on the northwestern coast.  Later in the century, the East India Company opened permanent trading stations at Madras, Bombay, and Calcutta, each under the protection of native rulers.    The British expanded their influence from these footholds until, by the 1850s, they controlled most of present-day India, Pakistan, and Bangladesh.  In 1857, a rebellion in north India led by mutinous Indian soldiers caused the British parliament to transfer all political power from the East India Company to the Crown.  Great Britain began administering most of India directly while controlling the rest through treaties with local rulers.  In the late 1800s, the first steps were taken toward self-government in British India with the appointment of Indian councilors to advise the British viceroy and the establishment of provincial councils with Indian members; the British subsequently widened participation in legislative councils.  Beginning in 1920, Indian leader Mahatma Gandhi transformed the Indian National Congress political party into a mass movement to campaign against British colonial rule.  The party used both parliamentary and non-violent resistance and non-cooperation to achieve independence.  On August 15, 1947, India became a dominion within the Commonwealth, with Jawaharlal Nehru as Prime Minister.  Enmity between Hindus and Muslims led the British to partition British India, creating East and West Pakistan, where there were Muslim majorities.  India became a republic within the Commonwealth after promulgating its constitution on January 26, 1950.  After independence, the Congress Party, the party of Mahatma Gandhi and Jawaharlal Nehru, ruled India under the influence first of Nehru and then his daughter and grandson, with the exception of two brief periods in the 1970s and 1980s.    Prime Minister Nehru governed the nation until his death in 1964.  He was succeeded by Lal Bahadur Shastri, who also died in office.  In 1966, power passed to Nehru's daughter, Indira Gandhi, Prime Minister from 1966 to 1977.  In 1975, beset with deepening political and economic problems, Mrs. Gandhi declared a state of emergency and suspended many civil liberties.  Seeking a mandate at the polls for her policies, she called for elections in 1977, only to be defeated by Moraji Desai, who headed the Janata Party, an amalgam of five opposition parties.    In 1979, Desai's government crumbled.  Charan Singh formed an interim government, which was followed by Mrs. Gandhi's return to power in January 1980.  On October 31, 1984, Mrs. Gandhi was assassinated, and her son Rajiv was chosen by the Congress (I)--for "Indira"--Party to take her place.  His government was brought down in 1989 by allegations of corruption and was followed by V.P. Singh and then Chandra Shekhar.    In 1989, the Janata Dal, a union of opposition parties, dislodged Rajiv Gandhi's Congress (I) Party with the help of the Hindu-nationalist Bharatiya Janata Party (BJP) on the right and the communists on the left.  This loose coalition collapsed in November 1990, and the government was controlled for a short period by a breakaway Janata Dal group supported by Congress (I), with Chandra Shekhar as Prime Minister.  That alliance also collapsed, resulting in national elections in June 1991.  On May 27, 1991, while campaigning in Tamil Nadu on behalf of Congress (I), Rajiv Gandhi was assassinated, apparently by Tamil extremists from Sri Lanka.  In the elections, Congress (I) won 213 parliamentary seats and put together a coalition, returning to power under the leadership of P.V. Narasimha Rao.  He was the first Congress Party Prime Minister in 30 years who did not come from the Gandhi/Nehru family.    GOVERNMENT  According to its constitution, India is a "sovereign, socialist, secular, democratic republic."  Like the United States, India has a federal form of government.  However, the central government in India has greater power in relation to its states, and its central government is patterned after the British parliamentary system.  The government exercises its broad administrative powers in the name of the president, whose duties are largely ceremonial.  The president and vice president are elected indirectly for five-year terms by a special electoral college.  Their terms are staggered, and the vice president does not automatically become president following the death or removal from office of the president.  Real national executive power is centered in the Council of Ministers (cabinet), led by the prime minister.  The president appoints the prime minister, who is designated by legislators of the political party or coalition commanding a parliamentary majority.  The president then appoints subordinate ministers on the advice of the prime minister.  India's bicameral parliament consists of the Rajya Sabha (Council of States) and the Lok Sabha (House of the People).  The Council of Ministers is responsible to the Lok Sabha.  The legislatures of the states and union territories elect 233 members to the Rajya Sabha, and the president appoints another 12.  The elected members of the Rajya Sabha serve six-year terms, with one-third up for election every two years.  The Lok Sabha consists of 545 members; 543 are directly elected to five-year terms.  The other two are appointed.  India's independent judicial system began under the British, and its concepts and procedures resemble those of Anglo-Saxon countries.  The Supreme Court consists of a chief justice and 25 other justices, all appointed by the president on the advice of the prime minister.  India has 25 states(2) and 7 union territories.  At the state level, some of the legislatures are bicameral, patterned after the two houses of the national parliament.  The states' chief ministers are responsible to the legislatures in the same way the prime minister is responsible to parliament.   Each state also has a presidentially appointed governor who may assume certain broad powers during state government crises.  The central government exerts greater control over the union territories than over the states, although some territories have gained more power to administer their own affairs.  Local governments in India have less autonomy than their counterparts in the United States.  Some states are trying to revitalize the traditional village councils, or panchayats, and introduce "grass-roots democracy" at the village level, where 80% of the people live.  Principal Government Officials President--Shankar Dayal Sharma  Vice President--Kicheril Raman Narayanan Prime Minister--P.V. Narasimha Rao Minister of External Affairs--Dinesh Singh Ambassador to the U.S.--Siddhartha Shankar Ray  Ambassador to the UN--Mohammad Hamid Ansari  India maintains an embassy in the United States at 2107 Massachusetts Avenue NW, Washington, DC 20008 (tel. [phone]) and consulates general in New York, Chicago, and San Francisco.   ________(2)  This member includes the Indian state of Jammu and Kashmir.  The United States considers all of the former princely state of Kashmir to be disputed territory.  India, Pakistan and China each control parts of Kashmir.________  POLITICAL CONDITIONS  Prime Minister Rao began 1992 using consensus politics to bring along his political rivals both within and outside Congress (I).  He instituted a series of economic reform measures, but the pace of these reforms slowed late in the year, as public and institutional resistance increased and a securities-trading scandal was uncovered in Bombay.  Rao started to abandon his consensus approach, accusing the Hindu-nationalist BJP of fomenting Hindu-Muslim tensions, a charge the BJP denied.  The growth of Hindu nationalism became a major issue in India during 1992 and 1993, especially following the demolition of the mosque at Ayodhya on December 6, 1992.  The mosque's destruction and ensuing riots resulted in the deaths of over 1,000 persons, mostly Muslims, in various parts of the country.  These events not only threatened Rao's government but raised questions about India's secular foundations.  Many BJP members supported the destruction of the Ayodhya mosque, reflecting the belief of many Indians that Hindus have been victimized by centuries of Muslim and British rule and that even after independence the world fails to recognize the importance of India.  Although the BJP's support had been largely confined to the Hindi-speaking belt of northern states, the party has been trying to expand its base in other parts of India.  It has been making inroads in the western states of Gujarat and Maharashtra and in the southern state of Karnataka.  BJP policies include support for the deployment of nuclear weapons, a tougher line with Pakistan, restricted foreign investment in the economy, and a more "Hindu" educational system.  The BJP, which had only two of the 543 elected seats in parliament in 1984, became the leading opposition party in mid-1993, with 119 seats.  Prime Minister Rao responded to the turmoil following the mosque's destruction by dismissing the four BJP state governments (Uttar Pradesh, Madhya Pradesh, Rajasthan, and Himachal Pradesh) and banning certain radical Hindu and Muslim groups.  Opposition leaders challenged these moves with some success in court.  In parliament, Congress (I) and its allies now retain a slim majority, and non-BJP parties, which oppose new elections, have supported Congress (I) in blocking BJP efforts to unseat Rao with no-confidence motions.  The Ayodhya crisis forced Rao to concentrate on domestic politics; this complicated attempts to initiate new and more far-reaching economic reforms, although there already had been some successes.  By late 1992, aspects of Rao's economic reform--such as alleviating the foreign exchange crisis and liberalizing some investment and trade regulations--had been carried out.  Despite the focus of much of the country on the fallout from Ayodhya, senior government officials recognized the need to redouble their efforts if they were to continue to reform the trade, industrial, labor, and financial sectors.  Current prospects for economic growth are encouraging, with an increase projected for GDP and expectations of higher industrial production and export growth.    Rao also has faced challenges from unrest in Punjab and Kashmir, although the government was able to hold local elections in Punjab in 1993.  The insurgency in Kashmir, however, continued in 1993, and efforts to reach a political solution made little progress.    Political Parties  Congress (I), led by Narasimha Rao, governs nationally and in mid-1993 controlled almost one-half of the state assemblies; the party and its allies had a slight parliamentary majority.  The Janata Party is one of the three remnants of the Janata government that broke up in July 1979.  Larger parts went with V.P. Singh, a former Congress (I) Prime Minister, to form the Janata Dal 50 seats).  The Bharatiya Janata Party has become the most influential spinoff from the former Janata coalition and is led by Lal Krishna Advani.  Descending from the earlier, urban Hindu-oriented Jana Sangh Party and representing the nationalist right in the political spectrum, the BJP has tried to broaden its base to attract non-Hindus and rural groups.  India has two important communist parties:  the traditionally pro-Soviet Communist Party of India (CPI) and the Communist Party of India--Marxist (CPM), which broke with CPI in 1964 and is essentially independent.  Both parties join in the parliamentary process, and the CPM currently holds power in western Bengal.  There also are small, leftist splinter groups, some of which advocate the violent overthrow of the government.  Regional parties based on ethnic or linguistic elements govern in Tamil Nadu: AIADMK and DMK.  Other regional parties include the Telegu Desam Party, led by N.T. Rama Rao, in Andhra Pradesh and the Samajwadi Party in Uttar Pradesh, led by Mulayan Singh Yadav.  Yadav is trying to form a coalition with the Bahiyan Samaj Party (BSP) and other opposition parties to challenge the BJP's hold on India's most populous state.  Some northeastern states are governed by tribal-based parties.  ECONOMY  The Indian population continues to grow at over 2% per year and was estimated at 891 million in 1993.  About 70% of the population depends directly on agriculture; nearly one-third of the country is irrigated.  Almost 30% of the population lives below the poverty line.  Nevertheless, a large and growing middle class of some 150 million to 200 million has disposable income for consumer goods.  India has an increasingly modern industrial base with sophisticated industries in electronics, avionics, and aluminum.  However, infrastructure remains inadequate, particularly in communications and power generation.  India entered into a standby arrangement with the International Monetary Fund in October 1991 and introduced structural reforms aimed at reducing the fiscal deficit and containing inflation.  Trade policy was liberalized in 1992, and customs duties were reduced dramatically--particularly for capital goods.  India's GDP growth rate is projected at almost 4%.  The government floated a trade-related rupee in March 1993.  In early 1993, India had comfortable foreign exchange reserves of about $7 billion.  Excise taxes on consumer durables were reduced to encourage sales.  The government signed the Multilateral Investment Guarantee Agency Convention but has yet to ratify it.  The total value of India's foreign trade in 1993-94 was over $40 billion, with a trade deficit of $1 billion.  India's principal exports are textiles (including garments), diamonds, chemicals, and engineering products.  Major imports are petroleum products (more than 25% of total), machinery, iron and steel, and fertilizers.  India now officially welcomes foreign investment, offering quick approvals to ventures of up to 51% foreign equity in 34 industries.  Higher levels of foreign equity are permitted, subject to approval by the foreign investment board.  Foreign investment is now welcome in the energy sector, particularly power generation and oil exploration, including refineries.  The U.S. is India's largest trade and investment partner.  Principal imports from the U.S. include sophisticated machinery and high-tech products, aviation parts and avionics, fertilizers, steel scrap, and chemicals.  The government's more open economic policies offer new opportunities for U.S. businesses, particularly in basic infrastructure industries.  Total foreign assistance to India since 1979 amounts to more than $69 billion.  From 1957 through 1993, the United States provided about $13.5 billion to India in various types of direct assistance aid.  India's external debt now exceeds $70 billion, with a debt service ratio greater than 25%.  FOREIGN RELATIONS  India's size, population, and strategic location give it a prominent voice in international affairs, and its growing industrial base, military strength, and scientific and technical capacity give it added weight.  It collaborates closely with developing countries on issues from trade to environmental protection.  The collapse of the former Soviet Union dramatically affected Indian foreign policy.  While India remains a leader among developing nations and the Non-aligned Movement, it has sought to strengthen commercial and political ties with a range of other countries and organizations, including the United States, Japan, the European Union, and the Association of Southeast Asian Nations.  Prime Minister Rao's economic reform program has given additional impetus to this effort.  India has always been an active member of the United Nations and recently proposed expanding the Security Council beyond the five permanent members.  It has a long tradition of participating in UN peace-keeping operations and most recently contributed personnel to UN operations in Somalia, Cambodia, Mozambique, Kuwait, and El Salvador.  Bilateral and Regional Relations Pakistan.  India's relations with Pakistan are influenced by the centuries-old rivalry between Hindus and Muslims which led to partition of British India in 1947.  The principal source of contention has been Kashmir, since the Hindu Maharaja chose in 1947 to join India although a majority of his subjects were Muslim.  India maintains that his decision and the subsequent elections in Kashmir have made it an integral part of India.  Pakistan asserts Kashmir's right to self-determination through a plebiscite in accordance with an earlier Indian pledge and a UN resolution.  This dispute triggered wars between the two countries in 1947 and 1965.  In December 1971, following a political crisis in what was then East Pakistan and the flight of millions of Bengali refugees to India, Pakistan and India again went to war.  The brief conflict left the situation largely unchanged in the west, where the two armies reached an impasse, but a decisive Indian victory in the east resulted in the creation of Bangladesh.  Since the 1971 war, Pakistan and India have made only slow progress toward normalization of relations.  In July 1972, Indian Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto met in the Indian hill station of Simla.  They signed an agreement which called for resolving peacefully, through bilateral negotiations, the problems resulting from the war.  Diplomatic and trade relations were re-established in 1976.  After the 1979 Soviet invasion of Afghanistan, new strains appeared in India-Pakistan relations; Pakistan supported the Afghan resistance, while India implicitly supported Soviet occupation.  In the following eight years, India voiced increasing concern over Pakistani arms purchases, U.S. military aid to Pakistan, and Pakistan's nuclear weapons program.  In an effort to curtail tensions, the two countries formed a joint commission.  In December 1988, Prime Minister Rajiv Gandhi and Pakistani Prime Minister Benazir Bhutto concluded a pact not to attack each other's nuclear facilities.  Agreements on cultural exchanges and civil aviation also were initiated.  Bilateral tensions still exist, primarily over Kashmir and nuclear weapons pro-grams in both countries.  It is believed that both India and Pakistan could assemble a number of nuclear weapons in a relatively short time frame.  SAARC.  Certain aspects of India's relations within the subcontinent are conducted through the South Asia Association for Regional Cooperation (SAARC).  Its members are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.  Established in 1985, SAARC encourages cooperation in agriculture, rural development, science and technology, culture, health and population control, narcotics, and terrorism.  In 1993, India and its SAARC partners signed an agreement to lower tariffs within the region over time.  China.  After independence, India initially enjoyed cordial relations with the communist government in Beijing.  However, tension over their disputed border led to conflict in 1962.  After a month of fighting, in which Chinese forces penetrated deep into Indian-claimed territory, China proclaimed a cease-fire and generally withdrew to positions held before the outbreak of hostilities, except in the Ladakh area of Kashmir.   Sino-Indian relations have gradually recovered.  Although the border dispute that provoked the war remains unsettled, both countries have sought to reduce tensions along the frontier, expand trade, and normalize relations.  Border trade, for example, was resumed in 1992.  High-level visits have helped the normalization process.  In December 1991, Chinese Premier Li Peng traveled to New Delhi, where he was cordially received by Indian leaders.  Indian Prime Minister Rao visited China in 1993 and received a similarly warm reception.  The two countries are currently engaged in regular negotiations designed to resolve bilateral disagreements.    India has allowed the Dalai Lama, a Buddhist spiritual leader from Tibet, to live in India since 1959, when he fled into exile.  India officially limits his political activities.  Since 1959, about 100,000 of his followers have joined him and reside in India.  New Independent States of the Former Soviet Union.  The collapse of the Soviet Union and the emergence of the Commonwealth of Independent States (CIS) had major repercussions for Indian foreign policy.  Substantial trade with the former Soviet Union plummeted after the Soviet collapse and has yet to recover.  Long-standing military relationships were similarly disrupted.    Russia and India have decided not to renew the 1971 Indo-Soviet Peace and Friendship Treaty and have sought to follow what both describe as a more pragmatic, less ideological relationship.  Russian President Yeltsin's visit to India in January 1993 helped cement this new relationship.    India has also established links with the other CIS republics, all of which were recognized shortly after independence.  India has paid particular attention to Uzbekistan and Kazakhstan, both of which Prime Minister Rao visited in May 1993.  DEFENSE  Supreme command of India's armed forces--the third-largest in the world--rests with the president, but actual responsibility for national defense lies with the cabinet committee for political affairs under the chairmanship of the prime minister.  The minister of defense is responsible to parliament for all defense matters.  India's military command structure has no joint defense staff or unified command apparatus.  The ministry of defense provides administrative and operational control over the three services through their respective chiefs of staff.  The armed forces have always been loyal to constitutional authority and maintain a tradition of non-involvement in political affairs.  </text>
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        <text>BACKGROUND NOTES:  HungaryPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEJuly 1993Official Name:  Republic of HungaryPROFILEGeographyArea:  93,000 sq. km. (36,000 sq. mi.); about the size of Indiana.Cities:  Capital--Budapest (est. pop. 2 million); Debrecen(220,000); Miskolc (208,000); Szeged (189,000); Pecs (183,000).Terrain:  Much of Hungary is flat, with low mountains in thenorth and northeast and north of Lake Balaton.Climate:  Temperate.  January average temp. 00C (320F); July 200C(700F).PeopleNationality:  Noun and adjective--Hungarian(s).Population (1991 est.):  10 million.Ethnic groups: Magyar 92%, Gypsy 3% (est.), German 1%, Slovak 1%,Jews 1%, Southern Slav 1%, others 1%.Religions:  Roman Catholic 68%, Calvinist 20%, Lutheran 5%,others, including Jewish, Baptist, Adventist, Pentecostal,Unitarian 5%.Languages:  Magyar 98%, other 2%.Education: Compulsory to age 16.  Attendance--96%.  Literacy--99%.Health:  Infant mortality rate--15/1,000.  Life expectancy--67yrs. men, 75 yrs. women.Work force (5 million):  Agriculture--19%.  Industry andcommerce--49%. Services--27%. Government--5%.Official language: Magyar (Hungarian).GovernmentType:  Parliamentary democracy.  Constitution:  August 20, 1949.Substantially revised in 1989,  amended in 1990.Branches:  Executive--Council of Ministers.Legislative--Hungarian National Assembly (386 members, 4-yr.term).  Judicial--Supreme Court and Constitutional Court.Administrative regions:  19 counties plus capital region ofBudapest.Principal political parties:  Hungarian Democratic Forum (MDF,center); Alliance of Free Democrats (SZDSZ, center left);Independent Smallholders' Party (FKGP, center right); Socialists(MSZP, reform communists); Federation of Young Democrats (FIDESZ,center left); Christian Democratic People's Party (KDNP, centerright).Flag:  Three horizontal stripes--red, white, and green.EconomyGDP (1992):  $32 billion.  Annual growth rate (1992):  -4%.  Percapita income (1992):  $3,000.  Inflation rate (1992): 24%.Natural resources:  Fertile land, bauxite, brown coal.Agriculture/forestry (16% of 1990 GDP):  Products--meat, corn,wheat, potatoes, sugar beets, vegetables, fruits, sunflowerseeds.  Arable land--51%, of which 71% is cultivated.Industry/construction (40% of 1990 GDP): Machinery, buses, andother transportation equipment; precision and measuringequipment; textiles; medical instruments; and pharmaceuticals.Trade (1992): Exports--$10.7 billion:  machinery, buses, andother transportation equipment; medical instruments;pharmaceuticals; textiles; other consumer manufactures; andagricultural products.  Major markets--Germany, Austria,Czechoslovakia, Italy, US, France, Commonwealth of IndependentStates.  Imports--$11 billion:  energy, raw materials, machinery,and transportation equipment.  Major suppliers--Germany,Czechoslovakia, Austria,  Commonwealth of Independent States.Official exchange rate  (December 1992):  About 83forints=U.S.$1.HISTORYSince its conversion to Western Christianity before 1,000 AD,Hungary has been an integral part of Europe.  Although Hungarywas a monarchy for nearly 1,000 years, its constitutional systempreceded, by several centuries, the establishment ofWestern-style governments in other European countries.Sharing defeat of the Austro-Hungarian Dual Monarchy (1867-1918)at the end of World War I, Hungary lost two-thirds of itsterritory and nearly as much of its population.  It experienced abrief but bloody communist dictatorship and counter-revolution in1919, followed by a 25-year regency under Admiral Miklos Horthy.Although Hungary fought in most of World War II as a German ally,following an unsuccessful attempt to switch sides on October 15,1944, it fell under German military occupation until the end ofthe war.  In January 1945, a provisional government concluded anarmistice with the Soviet Union.  It also established the AlliedControl Commission, under which Soviet, American, and Britishrepresentatives held complete sovereignty over the country.  TheCommission's chairman was a member of Stalin's inner circle andexercised absolute control.Communist TakeoverThe provisional government, dominated by the Hungarian CommunistParty (HCP), was replaced in November 1945 after elections whichgave majority control of a coalition government to theIndependent Smallholders' Party.  The government instituted aradical land reform and gradually nationalized mines, electricplants, four heavy industries, and some large banks.The communists ultimately undermined the coalition regime throughdiscrediting leaders of rival parties and by terror, blackmail,and framed trials.  In elections tainted by fraud in 1947, theleftist bloc gained control of the government; post-warcooperation between the U.S.S.R. and the West collapsed as theCold War began.  With Soviet support, Moscow-trained MatyasRakosi began to establish a communist dictatorship.  By February1949, all opposition parties had been forced to merge with theHCP to form the Hungarian Workers' Party.  In 1949, thecommunists held a single-list election and adopted a Soviet-styleconstitution which created the Hungarian People's Republic.Rakosi became Prime Minister in 1952.Between 1948 and 1953, the Hungarian economy was reorganizedaccording to the Soviet model.  In 1949, the country joined theCouncil for Mutual Economic Assistance (CEMA)--a Soviet-bloceconomic organization.  All private industrial firms with morethan 10 employees were nationalized.  Freedom of the press,religion, and assembly were strictly curtailed; the head of theRoman Catholic Church, Cardinal Jozsef Mindszenty, was sentencedto life imprisonment.But the forced industrialization and land collectivization soonled to serious economic difficulties, which reached crisisproportions by mid-1953, the year Stalin died.  The new Sovietleaders blamed Rakosi for Hungary's economic situation and begana more flexible policy in Eastern Europe called the "New Course."Imre Nagy replaced Rakosi as prime minister in 1953 andrepudiated much of Rakosi's economic program of forcedcollectivization and heavy industry. He also ended politicalpurges and freed thousands of political prisoners.However, the economic situation continued to deteriorate, andRakosi succeeded in disrupting the reforms and in forcing Nagyfrom power in 1955 for "right-wing revisionism."  Hungary joinedthe Soviet-led Warsaw Pact Treaty Organization the same year.Rakosi's attempt to restore Stalinist orthodoxy then foundered asincreasing opposition developed within the party and amongstudents and other organizations after Khrushchev's 1956denunciation of Stalin.  Fearing revolution, Moscow replacedRakosi with his deputy, Erno Gero, in order to contain growingideological and political ferment.1956 RevolutionPressure for change reached a climax on October 23, 1956, whenthe security forces fired on Budapest students marching insupport of Poland's confrontation with the Soviet Union. Theensuing battle quickly grew into a massive popular uprising.Gero called on Soviet troops to restore order on October 24.Fighting did not abate until the Central Committee named ImreNagy as prime minister on October 25, and the next day JanosKadar replaced Gero as party first secretary.  Nagy dissolved thestate security police, abolished the one-party system, promisedfree elections, and negotiated with the U.S.S.R to withdraw itstroops.Faced with reports of new Soviet troops pouring into Hungarydespite Soviet Ambassador Andropov's assurances to the contrary,on November 1, Nagy announced Hungary's neutrality and withdrawalfrom the Warsaw Pact.  He appealed to the United Nations and theWestern powers for protection of its neutrality.  Preoccupiedwith the Suez Crisis, the UN and the West failed to respond.  TheSoviet Union launched a massive military attack on Hungary onNovember 3.  Some 200,000 Hungarians fled to the West.  Nagy andhis colleagues took refuge in the Yugoslav Embassy.Janos Kadar, after delivering an impassioned radio address onNovember 1 in support of "our glorious revolution" and vowing tofight the Russians with his bare hands if they attacked Hungary,defected from the Nagy cabinet; he fled to the Soviet Union andon November 4 announced formation of a new government.  Hereturned to Budapest and, with Soviet support, carried out severereprisals; thousands of people were executed or imprisoned.Despite a guarantee of safe conduct, Nagy was arrested anddeported to Romania.  In June 1958, the government announced thatNagy and other former officials had been executed.Reform Under KadarIn the early 1960s, Kadar announced a new policy under the mottoof "He who is not against us is with us."  He declared a generalamnesty, gradually curbed some of the excesses of the secretpolice, and introduced a relatively liberal cultural and economiccourse aimed at overcoming the post-1956 hostility toward him andhis regime.  In 1966, the Central Committee approved the "NewEconomic Mechanism," through which it sought to overcome theinefficiencies of central planning, to increase productivity, tomake Hungary more competitive in world markets, and to createprosperity to ensure political stability.  However, the reformwas not as comprehensive as planned, and basic flaws of centralplanning continued to stagnate economic growth.Over the next two decades of relative domestic quiet, Kadar'sgovernment responded to pressure for political and economicreform and to counter-pressures from reform opponents.  By theearly 1980s, it had achieved some lasting economic reforms andlimited political liberalization and pursued a foreign policywhich encouraged more trade with the West.  Nevertheless, the NewEconomic Mechanism led to foreign debt in pursuit of economicstimuli for unprofitable industries.Transition to DemocracyHungary's transition to a Western-style parliamentary democracywas the first and the smoothest among the former Soviet bloc,inspired by a nationalism that long had encouraged Hungarians tocontrol their own destiny.  By 1987,  activists within the partyand bureaucracy and Budapest-based intellectuals were increasingpressure for change.  Some of these became reform socialists.Others began movements which were to develop into parties.  Youngliberals formed the Federation of Young Democrats (FIDESZ); acore from the so-called Democratic Opposition formed theAssociation of Free Democrats (SZDSZ); and the neopopulistnational opposition established the Hungarian Democratic Forum(MDF).  Civic activism intensified to a level not seen since the1956 revolution.  In 1988, Kadar was replaced as prime minister,and Reform Socialist leader Imre Pozsgay was admitted to thePolitburo.  That same year, the parliament adopted a "democracypackage," which included trade union pluralism; freedom of press,association, and assembly; a new electoral law; and a radicalrevision of the constitution, among others.A Central Committee plenum in February 1989 endorsed in principlethe multiparty political system and the characterization of theOctober 1956 revolution as a "popular uprising," in the words ofPozsgay, whose reform movement had been gathering strength ascommunist party membership declined dramatically.  Kadar's majorpolitical rivals then cooperated to move the country gradually todemocracy.  The Soviet Union reduced its involvement by signingan agreement in April 1989 to withdraw Soviet forces by June1991.  National unity culminated in June 1989 as the countryreburied Imre Nagy, his associates, and, symbolically, all othervictims of the 1956 revolution.  A roundtable, made up ofrepresentatives of the new parties and some recreated old parties(such as the Smallholders and Social Democrats), the communistparty, and different social groups, met in the summer and fall of1989 to discuss major changes to the Hungarian constitution andthe steps in the transition to a fully free and democraticcountry.  In October 1989, the communist party convened its lastcongress, which ended with a substantial victory for the party'sreform faction and a change in name to the Hungarian SocialistParty.In a historic session on October 16-20, 1989, the parliamentadopted legislation providing for multiparty parliamentaryelections and a direct presidential election.  The parliamentaimed to transform Hungary from a people's republic into theRepublic of Hungary, to protect  human and civil rights, and toensure separation of powers among the judicial, executive, andlegislative branches of government.  It asserted the "values ofbourgeois democracy and democratic socialism" and gave equalstatus to public and private property as a prerequisite formoving toward a market economy.Principal Government OfficialsPresident--Arpad GonczPrime Minister--Jozsef Antall (MDF)Minister of Foreign Affairs--Geza Jeszenszky (MDF)Ambassador to the United States--Pal TarAmbassador to the United Nations--Andre ErdosThe Hungarian embassy is located at 3910 Shoemaker St. NW,Washington, DC 20008.POLITICAL CONDITIONSHungary's first free, multiparty elections in more than 40 yearswere a milestone in the move toward a parliamentary democracy.In 1990, the Hungarian Democratic Forum (MDF) won 43% of the voteto 24% for the Alliance of Free Democrats (SZDSZ).  As a result,the MDF leader, Jozsef Antall, became prime minister and formed acenter-right coalition government--with the IndependentSmallholders' Party (12%) and the Christian Democratic People'sParty (6%)--to command a 60% majority in the parliament.  Inaddition to a small number of independents, the other partiesrepresented in the parliament were the HSP, who gained only 8%despite their reformist credentials, and the Young Democrats(FIDESZ), who received 6%.The Antall coalition government has achieved a reasonablywell-functioning parliamentary democracy and is laying thefoundation for a free market economy.  The non-communistgovernment formed by Prime Minister Jozsef Antall in May 1990 hasmade considerable progress toward transformation of the Hungarianeconomic system.  Its stated objective is a "social market"system, in which the market mechanism would be the basic guide ofeconomic activity and the state would provide an extensive safetynet for the needy.The prime minister selects the ministers in his cabinet.  Under achecks-and-balances system, each cabinet nominee appears  beforefour parliamentary committees in open hearings.  The unicameralHungarian National Assembly is the highest organ of stateauthority and initiates and approves legislation sponsored by thePrime Minister.  A 15-member constitutional court has power tochallenge legislation on grounds of unconstitutionality.As the 1994 elections approach, there has been a growing sense ofdisillusionment and frustration among the populace, especiallypensioners, the unemployed, and families seriously affected byinflation and the other costs of the transition to a free-marketeconomy.  Disenchantment with parliamentary politics has grown,due to the contentious nature of partisan disputes, and voterparticipation has been low in a number of by-elections since1990.  The perceived gulf between the voters and politicalparties has not led to massive social disturbances, with the oneexception of a taxi drivers' civil disobedience action, whichparalyzed the county for 3 days in October 1990.ECONOMYBefore World War II, Hungary had a predominantly agriculturaleconomy.  Following the standard Stalinist pattern,industrialization was forced on Hungary in the post-war period.Under communism, most economic activity was conducted bystate-owned enterprises or cooperatives, although various smallbusinesses were allowed to operate.  Agriculture wascollectivized, undoing the immediate post-war division of largeestates among small peasant owners.  Today, farms are beingprivatized, both to small holders and to agribusiness firms.In 1950, more than 50% of the labor force worked on the land;now, slightly less than 20% engages in agricultural activity.Recently, Hungarian agriculture has been generallyself-sufficient and an important source of export earnings.  Boththe agricultural and industrial sectors have suffered from a lackof investment since the late 1970s.  In the 1970s and 1980s,Hungary accumulated a huge foreign debt, largely to financesubsidies to consumers and to unprofitable state enterprises.Net foreign debt rose from about $1 billion in 1972 to about $13billion in 1992, giving Hungary the highest per capita debt inCentral Europe.  Its repayment record, however, has beenexcellent.Changes introduced by the communist regime, particularly duringits last 2 years, eased the transformation to a market economy.When Antall took office, 150 state enterprises already had beenprivatized under a "business transformation" law.  Private firmshad rights equal to those of state enterprises under a law oncorporate association.  A joint venture law was in place, andforeign companies had begun to invest in Hungary.  A little-usedbankruptcy law was in place.  A value-added tax and a progressivepersonal income tax had largely replaced the former arbitrarylevies on profits of state enterprises.  The 1990 budget passedby the communist parliament had slashed the annual deficit bycutting subsidies while raising charges on fuel, cigarettes, andliquor.The Antall Government has encouraged the founding of privatebusinesses and moved forward on privatization of stateenterprises, putting most state assets into the hands of a newState Property Agency.  Part or all of 429 companies haveachieved privatization, perhaps one-fifth of the stateenterprises designated for sale to private owners. This hasaddressed the abuse of the business transformation act by somestate enterprise managers who had used it for personal gain.Also, open bidding now is required for any acquisition of a stateenterprise.  By the end of 1992, more than 60,000 privatebusinesses were operating; 40% were active in construction.  In1992, more than 12,000 foreign firms were doing business inHungary.The 1992 federal budget ended with a deficit of 8% of GDP,stalling a 3-year program with the IMF, as revenue shortfallsexceeded budget cuts.  The government cut all consumer subsidiesand reduced the real value of subsidies to the remaining stateenterprises.  Subsidy cuts led to increases in the price ofmedicines, bakery products, sugar, rice, railroad and bustransportation, postage, telephone calls, water and sewerageservices, electricity, coal, and gas.  Charges on concessionaryhome mortgages were increased substantially.The deregulation of prices begun under the communist regime hasbeen extended by the Antall Government; more than 95% of priceshave been decontrolled.  The reform effort incurs painful,immediate costs to achieve more productive use of economicresources and higher income in the longer term.  Phasing outuneconomic activities and reducing exports to the former Sovietbloc helped lead to a decline in the gross domestic product (GDP)in 1992 that amounted, in real terms, to 4%.  Unemployment rosefrom 1.7% of the labor force in 1990 to an average of about 13%in 1992.Foreign TradeHungary has shifted much of its trade from its former Soviet-blocpartners to Western countries.  In 1992, 75% of Hungary's tradewas with Western countries; Germany now is Hungary's principaltrading partner, providing more trade with Hungary than with allof the former Soviet republics.  Trade with Russia has beenfurther reduced due to declining oil exports to Hungary.  Tradewith the United States is increasing; total trade has risen toabout $600 million in 1992.  The U.S. has extended to Hungarymost-favored-nation status, Generalized System of Preferencesconcessions, Overseas Private Investment Corporation insurance,and access to the Export-Import Bank.  The two countries haveconcluded a bilateral investment treaty and are negotiating abusiness and economic treaty.  In 1992, more than 400 U.S. firmswere operating in Hungary, an increase of 34% from 1991.Foreign concerns have invested over $5 billion in Hungary--morethan half of all foreign investment in Central and EasternEurope.  The United States is the largest investor, with about $2billion invested by mid-1992, followed by Germany and Austria.Foreign capital is attracted by low wages for highly skilledworkers, generous tax incentives, favorable geographic location,fertile land, and knowledge of the market of the former Sovietbloc.Any Hungarian person or enterprise may engage in internationaltrade now, and about 90% of imports have been freed from licenserestrictions.FOREIGN RELATIONSExcept for the short-lived neutrality declared by Imre Nagy inNovember 1956, Hungary's foreign policy generally followed theSoviet lead from 1947-89.  During 1948-49, Hungary maintainedtreaties of friendship, cooperation, and mutual assistance withthe former Soviet Union, Poland, Czechoslovakia, Romania, andBulgaria.  In 1950, it concluded a friendship treaty with thethen-German Democratic Republic.  It was one of the foundingmembers of the Soviet-led Warsaw Pact and CEMA, and it was thefirst Central European country to withdraw from thoseorganizations, both now defunct.Along with other European associates of the former Soviet Union,Hungary has been participating in East-West cooperation agreedupon at the 1975 Helsinki Conference on Security and Cooperationin Europe (CSCE).  It has signed all of the CSCE follow-ondocuments since 1989.  Hungary's record of implementing CSCEHelsinki Final Act provisions, including those on reunificationof divided families, remains among the best in Eastern Europe.Relations with Romania, however, have remained strained in recentyears over charges of human rights violations against the ethnicHungarian minority in Transylvania.Hungary has been a member of the United Nations since December1955 and is a member of the 1992-93 Security Council.  It iscommitted to strengthening ties with the West and with Japan andthe newly industrialized countries of Asia.  Prime MinisterAntall has expressed strong interest in joining the EuropeanCommunity and NATO.  Early in his Administration, he visitedAustria, France, Germany, Israel, Italy, Japan, United Kingdom,and the United States.DEFENSEHungary spearheaded the move leading to the dissolution of theWarsaw Pact Treaty Organization by its 17% reduction  of defenseexpenditures and the 30% reduction of its armed forces between1989 and 1992 to a level of 100,000.  This latter figure includes26,000 civilian employees of the Hungarian Home Defense Forces(HHDF).  Renamed the Hungarian Home Defense Forces, (Honvedseg),the military has undergone major restructuring in organization,orientation, and training.  The Home Defense Force includes thearmy, which is the largest, followed by the air force and a smallnaval contingent that patrols the Danube River.  Young men becomeeligible at age 18 for 12 months of military service; 16-monthalternate service in non-military institutions is available forconscientious objectors.On March 11, 1989, Hungary and the Soviet Union concluded anagreement under which the latter withdrew all 65,000 troops fromthe country in June 1991 and asked that Hungary compensate theformer Soviets for the military bases they relinquished.Hungarian counter-claims charge that some of the bases were builtwithout permission and do not conform to Hungarian buildingcodes.  Toxic wastes and other Soviet materials left behind atthese bases constitute a serious environmental hazard.  The zerooption of no claim for compensation by either side was finallyworked out.  As compensation for a portion of state debt toHungary, both sides, Hungary and Russia, agreed that a sum of upto $800 million in military equipment would be made available toHungary.  This will apparently result in Hungary's acquisition ofMIG-29 aircraft.U.S.-HUNGARIAN RELATIONSRelations between the United States and Hungary following WorldWar II were affected  by Soviet armed forces' occupation ofHungary.  Full diplomatic relations were established at thelegation level on October 12, 1945, before the signing of theHungarian peace treaty on February 10, 1947.After the communist takeover in 1947-48, relations with Hungarywere increasingly strained by the nationalization of U.S.-ownedproperty, unacceptable treatment of U.S. citizens and personnel,and restrictions on the operations of the American Legation.During the difficult period following the Hungarian nationaluprising in 1956, relations continued to erode.Embassies were opened in 1966, and bilateral relations slowly butsteadily improved after ambassadors were exchanged.  In 1972, aconsular convention was concluded to provide consular protectionto U.S. citizens in Hungary.  In 1973, a bilateral agreement wasreached under which Hungary settled the nationalization claims ofAmerican citizens.  In 1976, Hungary paid its debt arrearages tothe U.S. Government in full, including those dating back to thepost-World War I era.  In 1977, an agreement on exchanges andcooperation in culture, education, science, and technology wasconcluded.In January 1978, the United States returned to the people ofHungary the historic Crown of Saint Stephen and other Hungariancoronation regalia that had been safeguarded by the United Statessince the end of World War II.  Symbolically and actually, thisevent marked the beginning of excellent relationships between thetwo countries.  A 1978 bilateral trade agreement includedextension of most-favored-nation status.  Cultural and scientificexchanges were expanded. Major U.S. official cultural exhibitshave been well received. In 1989, the United States and Hungaryrenewed a civil air agreement providing for direct servicebetween New York and Budapest.Then, as Hungary began to pull away from the links forged bySoviet communism, the United States offered assistance andexpertise to help establish a constitution, a democraticpolitical system, and a plan for a free market economy.  Between1989 and 1992, the Support for East European Democracy (SEED)Act, provided more than $121 million for economic restructuringand private sector development.  The Hungarian-AmericanEnterprise Fund, capitalized at $65 million, offers loans, equitycapital, and technical assistance to promote private sectordevelopment Hungarian-American joint ventures.In 1991 the U.S. and Hungary initiated a security assistancerelationship which is now active in both the  InternationalMilitary Education and Training Program ($700,000) and the $13million Foreign Military Sales Program.Additional U.S. assistance includes a $10 million energy sectorgrant and other technical assistance.  Grants to theInternational Executive Service Corps, MBA Enterprise Corps(composed of recent recipients of Master of BusinessAdministration degrees), and the Center for International PrivateEnterprise helps these non-governmental organizations provideexpertise directly to private enterprises.The U.S. Environmental Protection Agency and the EnvironmentalLaw Institute assist the Ministry of Environment and theHungarian Parliament in drafting the country's firstenvironmental legislation.  Other issues receiving attentioninclude health care, employment, housing, education, and smallbusiness development.  About 140 Peace Corps volunteersthroughout Hungary  work to improve English language training andenvironmental awareness.The U.S. embassy in Hungary is located at Szabadsag Ter 12,Budapest (tel. [phone]).Climate and clothing:  Budapest's climate is temperate, withseasons of almost equal length.Health:  Services and medications are widely available andgenerally adequate, although of a different standard from that inthe United States.  Tapwater is potable.  Raw fruits andvegetables are safe to eat.  Avoid unpasteurized milk.Telecommunications:  Telephone and telegraph services are readilyavailable at standard international rates. Hungary is 6 hoursahead of Eastern Standard Time.Tourist attractions:  Budapest is the country's leading touristattraction, especially for its museums, historic houses andbuildings of the "Var" (Royal Castle) area overlooking the DanubeRiver.  Roman ruins are located at Aquincum in suburban Budapestand other parts of Transdanubia (Pannonia).  The remains of theRenaissance palace of the Hungarian kings at Visegrad on theDanube bend are of great historic and cultural interest.  ManyEuropeans visit Lake Balaton, Central Europe's largest lake, forfishing, swimming and sunbathing.  Thermal baths are locatedthroughout the country.  The Hungarian Puszta or "Great Plain" inthe east is interesting for its wildlife.National holidays:  Businesses and the US Embassy may be closedon the following Hungarian holidays:New Year's Day--January 1Commemoration of 1848-49 Revolution--March 15Easter Monday--date variesLabor Day--May 1National Day (St. Stephen's Day--August 20Commemoration of 1956 Revolution--October 23Christmas Day--December 25Boxing Day--December 26</text>
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        <text>U.S. Department of StateBackground Notes:  Hong Kong, November 1995Bureau of Public AffairsNovember 1995Official Name:  Hong Kong PROFILE Geography Area:  1,076 sq. km. (416 sq. mi.); Hong Kong comprises Hong Kong Island, Kowloon, the New Territories and numerous small islands. Terrain:  Hilly to mountainous with steep slopes and natural harbor. Climate:  Tropical monsoon; cool and humid in winter, hot and rainy from spring through summer, warm and sunny in fall. People Population (1994):  6 million. Annual growth rate:  2.4%. Ethnic groups:  Chinese 98%, other 2%. Religions:  Eclectic mixture of local religions 90%, Christian 10%. Languages:  Cantonese and English are official. Literacy (1992):  77% (90% male, 65% female). Health (1994):  Infant Mortality Rate--4.8/1,000.  Life Expectancy--75 years male, 81 years female. Work Force (1994--2.9 million; 63% male, 37% female):  Merchandising, restaurants, and hotels--35%; manufacturing--15%; finance, insurance, real estate, and business services--12%; community, social, and personal services--10%; transport, storage, and communications--6%; civil service--6%; construction--2%. Government Type:  U.K. dependent territory (China regains sovereignty in 1997). Branches:  Executive--governor (appointed by U.K. monarch), chief secretary, and Executive Council.  Legislative--Legislative Council.  Judicial--Court of Appeal, Supreme Court, High Court, district and magistrate courts. Subdivisions:  Hong Kong, Kowloon, New Territories. Suffrage:  Universal at 18 years of age and seven years residence in Hong Kong. Economy (1994) GDP:  $109 billion.GDP real growth rate:  5.5%. Per capita income:  $21,000. Natural resources:  None. Agriculture:  Products--vegetables, flowers, dairy products, less than 20% self-sufficient. Industry:  Types--transportation and financial services, clothing, textiles, toys, watches, clocks, electronics, plastics. Trade:  Imports--$160 billion, including foodstuffs, transport equipment, raw materials, semi-manufactures, petroleum.  Major suppliers--China 38%, Japan 16%, Taiwan 9%, U.S. 7%.  Domestic exports--$28.5 billion, including clothing and textiles, electronics, watches and clocks, toys.  Major markets--U.S. 28%, China 28%, Germany 6%, Singapore 6%, U.K. 5%, Japan 5%.  Re-exports--$122 billion.  Major markets--China 34%, U.S. 22%, Japan 6%, Germany 4%, U.K. 3%. U.S.-HONG KONG RELATIONS Hong Kong is a major center for U.S. investment, trade, and contact with the People's Republic of China (P.R.C.) and the rest of Asia.  The United States is the second largest destination for Hong Kong's finished goods and re-exports, as well as the second largest source of foreign investment.  Nearly 900 U.S. corporations, with total investment of about $8.5 billion, are located in Hong Kong.Hong Kong is an important and growing market for American products and services.  U.S. agricultural exports to Hong Kong totaled $860 million in 1992 and $874 million in 1993.  The Hong Kong airport project also presents significant opportunities for U.S. consulting contractors; U.S. companies have already won key contracts for management and planning.The United States has few trade problems with Hong Kong.  In 1993, the U.S. had a trade surplus of $315 million with Hong Kong. Principal U.S. Officials Consul General--Richard W. Mueller Deputy Principal Officer--Stephen A. Schlaikjer  The U.S. consulate is located at 26 Garden Road, Hong Kong; tel. [phone]; fax [phone] (general), 011-852-2845-4845 (consular), 011-852-2845-9800 (commercial).GOVERNMENT The Governor of Hong Kong, appointed by the U.K. monarch, is the commander-in-chief.  The chief secretary is the principal adviser to the governor and is the chief executive of the government.  The governor also is advised by the executive council, which consists of the chief secretary, the financial secretary, the attorney general, and 11 members appointed by the governor.The Legislative Council enacts legislation and approves the budget.  Its bills become law only after approval by both the governor and the monarch.  An ongoing localization process aims to replace U.K. laws in Hong Kong with local equivalents before 1997.The current legislature was elected in September 1995 following the first elections in which all 60 seats were open to direct or indirect balloting.  The 60 seats are distributed as follows:  20 members from geographical constituencies elected through direct elections; 30 members chosen by electors in functional constituencies; and 10 members picked by an election committee.  Legislative Council members elected in 1995 are expected to serve through reversion until the next election in 1999 (see Political Conditions).Hong Kong Island and Kowloon are administered by the Urban Council (30 members; half elected and half appointed by the governor); the council has regulatory and licensing responsibilities similar to those of a city council in such areas as health, culture, commerce, and recreation.  The New Territories are administered by the secretary for district administration.  The secretary also supervises district boards and district management committees which serve as local consultative bodies to the government on district matters.English common law applies to Hong Kong, with certain local variations derived from Chinese custom.  The judiciary is independent from the executive and legislative branches, although judges are appointed by the governor.  The magistrate courts try 90% of the cases, maintaining a purely criminal jurisdiction, and are generally limited to issuing sentences of up to two years of imprisonment or fines.  Civil cases and more serious criminal cases are tried in either the district court or the high court.  The Court of Appeals is the highest court in Hong Kong.  The P.R.C.  and the U.K. agreed to establish a Court of Final Appeal in 1997.  There is currently  a limited right of appeal to the Queen's Privy Council in London.Hong Kong has a comprehensive system of legal advice and aid that was further expanded in July 1992.  Public support led to the passing of a bill of rights, in June 1991 guaranteeing basic civil and political rights. Principal Government Officials Governor--Christopher Patten Chief Secretary--Anson Chan Financial Secretary--Donald Tsang Attorney General--J.F. Matthews POLITICAL CONDITIONS After two years of negotiations between the P.R.C. and U.K. over the future of Hong Kong, a joint declaration was signed in December 1984 which stipulates the terms of Hong Kong's return to Chinese control on July 1, 1997.  The agreement also states that Hong Kong will be a special administrative region of China after 1997, retaining its political, economic, and judicial systems and participating in international agreements and organizations for 50 years after the reversion.  China will assume U.K. responsibilities for Hong Kong's foreign affairs and defense.  A joint liaison group was established to oversee implementation of the agreement during the transition.The "mini-constitution" establishing Hong Kong's political and legal structure after 1997 was promulgated by the Chinese National People's Congress in April 1990, after five years of deliberation.  Candidates for the legislature who advocated a faster pace of democratization than that stated in the Basic Law won 29 of the 60 total legislative seats in the last election.  The Chinese have said that the Basic Law could not be amended before 1997 to allow for more directly elected seats at the time of reversion.  Hong Kong Governor Chris Patten in 1992 proposed modest electoral reforms to broaden political franchise in the territory.These proposals were opposed by the P.R.C.  Following eight months of Sino-British negotiations which ended without agreement in November 1993, the Hong Kong Government proceeded to adopt and implement the governor's proposals.  China thereafter declared its intention to disband the extant legislature in 1997 and establish instead a provisional legislature until a new election law is adopted.  TRAVEL AND BUSINESS INFORMATION The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC, tel. 20402 [phone].  Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone]. While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.  Further Electronic Information:  Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.  Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:  Gopher:  dosfan.lib.uic.edu URL:  gopher://dosfan.lib.uic.edu/ WWW:  http://dosfan.lib.uic.edu/dosfan.html  U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].  Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].  National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ============================== Background Notes Series --  Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC  This material is in the public domain and may be reproduced without permission; citation of this source is appreciated. (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: HONDURASPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of HondurasPROFILEGeographyArea:  112,100 sq. km. (43,270 sq. mi.); about the size of Tennessee.Cities:  Capital--Tegucigalpa (642,500); San Pedro Sula metropolitan area (327,000).Terrain:  Mountainous.Climate:  Tropical to subtropical, depending on elevation.PeopleNationality:  Noun and adjective--Honduran(s).Population (1993):  5.2 million.Growth rate:  3%.Ethnic groups:  90% mestizo (mixed Indian and European); others of European, Arab, African, or Asian ancestry; and indigenous Indians.Religions:  Roman Catholic, Protestant minority.Language:  Spanish.Education:  Years compulsory--6. Attendance--70% overall, but less than 16% at junior high level.  Literacy--68%.Health:  Infant mortality rate--60/1,000.  Life expectancy--63 yrs.Work force:  Services--32%.  Natural resources/agriculture--38%.  Manufacturing--18%.  Construction/housing--12%.  GovernmentType:  Democratic constitutional republic.Independence:  September 15, 1821.Constitution:  1982.Branches:  Executive--president, directly elected to four-year term.  Legislative--unicameral National Congress, elected for four-year term.  Judicial--Supreme Court of Justice (appointed by Congress and confirmed by the president); several lower courts.Political parties:  Liberal Party, National Party, Innovation and Unity Party, and Christian Democratic Party.Suffrage:  Universal adult.Administrative subdivisions:  18 departments.Economy (1993)GDP:  $2.8 billion.Growth rate:  3.2%.Per capita GDP:  $540.Natural resources:  Arable land, forests, minerals, fisheries.Agriculture (26% of GDP):  Products--bananas, coffee, shrimp, sugar, fruits, basic grains, livestock.Industry (15% of GDP):  Types--textiles and apparel, cement, wood products, cigars, foodstuffs.Trade:  Exports--$866 million:  bananas, citrus fruits, coffee, lead/zinc concentrates, shrimp, beef, lumber, sugar.  Major market--U.S. (50%).  Imports--$1.3 billion:  petroleum, manufactured goods, machinery, chemicals.  Major supplier--U.S. (45%).Exchange rate (1994):  9 lempira=U.S. $1.PEOPLE AND HISTORYAbout 90% of the population is mestizo.  There also are small minorities of European, African, Asian, Arab, and indigenous Indian descent.  Most Hondurans are Roman Catholic, but Protestant proselytization has resulted in significant numbers of converts.  Spanish is the predominant language, although some English is spoken along the northern coast and on the Caribbean Bay Islands.  Indigenous Indian dialects and the Garifuna dialect also are spoken.The restored Mayan ruins near the Guatemalan border in Copan reflect the great Mayan culture that arose in the fourth century.  Mayan artifacts also can be found at the National Museum in Tegucigalpa.  This culture had declined by the time Columbus sighted the region in 1502, naming it "Honduras" (meaning "depths") for the deep water off the coast.  Spaniard Hernan Cortes arrived in 1524.  The Spanish began founding settlements along the coast, and Honduras came under the control of the Captaincy General of Guatemala.  The cities of Comayagua and Tegucigalpa developed as early mining centers.  IndependenceHonduras, along with the other Central American provinces, gained independence from Spain in 1821; it then briefly was annexed to the Mexican Empire.  In 1823, Honduras joined the newly formed United Provinces of Central America.  Before long, though, social and economic differences between Honduras and its regional neighbors exacerbated harsh partisan strife among Central American leaders and brought on the federation's collapse in 1838.  Gen. Francisco Morazan--a Honduran national hero--led unsuccessful efforts to maintain the federation, and restoring Central American unity remained the chief aim of Honduran foreign policy until after World War I.Since independence, Honduras has been plagued with nearly 300 internal rebellions, civil wars, and changes of government, more than half occurring during this century.  The country traditionally lacked both an economic infrastructure and social and political integration.  Its agriculturally based economy came to be dominated by U.S. companies that established vast banana plantations along the north coast.  Foreign capital, plantation life, and conservative politics held sway in Honduras from the late 19th until the mid-20th century.During the relatively stable years of the Great Depression, Honduras was controlled by the harshly authoritarian Gen. Tiburcio Carias Andino.  His ties to dictators in neighboring countries and to U.S. banana companies helped him maintain power until 1948.  By then, provincial military leaders had begun to gain control of the two major parties, the Nationalists and the Liberals.From Military to Civilian RuleIn October 1955--after two authoritarian civilian National Party administrations and a general strike by banana workers on the north coast in 1954--young military reformists staged a palace coup that installed a provisional junta and paved the way for constituent assembly elections in 1957.  This assembly, led by the opposition Liberal Party, appointed Dr. Ramon Villeda Morales as President and transformed itself into a national legislature with a six-year term.  The Liberal Party and its tenets flourished during 1957-63.  At the same time, the military took its first steps to become a professional institution independent of leadership from any one political party, and the newly created military academy graduated its first class in 1960.But in October 1963, conservative military officers preempted constitutional elections and deposed Villeda in a bloody coup.  These officers exiled Liberal Party members and took control of the national police.  The armed forces, led by Gen. Lopez Arellano and supported by the National Party, governed until 1970.A civilian president--Ramon Cruz of the National Party--took power briefly in 1970 but proved unable to manage the government.  Popular discontent had continued to rise after a 1969 border war with El Salvador, and, in December 1972, General Lopez staged another coup.  Lopez adopted more progressive policies, including land reform, but his regime was brought down in the mid-1970s by scandals.General Lopez' successors continued armed forces modernization programs, building army and security forces and concentrating on Honduran air force superiority over its neighbors.  The regimes of General Melgar Castro (1975-78) and General Paz Garcia (1978-83) largely built the current physical infrastructure and telecommunications system of Honduras.  The country also enjoyed its most rapid economic growth during this period, due to greater international demand for its products and the availability of foreign commercial lending.Following the overthrow of Anastasio Somoza in Nicaragua in 1979 and general instability in El Salvador at the time, the Honduran military accelerated plans to return the country to civilian rule.  A constituent assembly was popularly elected in April 1980, and general elections were held in November 1981.  A new constitution was approved in 1982, and the Liberal Party government of President Roberto Suazo Cordoba assumed power.Suazo relied on U.S. support to help with a severe economic recession and with the threat posed by the revolutionary Sandinista government in Nicaragua and a brutal civil war in El Salvador.  Close cooperation on political and military issues with the United States was complemented by ambitious social and economic development projects sponsored by the U.S. Agency for International Development (USAID).  Honduras became host to the largest Peace Corps mission in the world, and non-governmental and international voluntary agencies proliferated.As the November 1985 election approached, the Liberal Party had difficulty settling on a candidate and interpreted election law as permitting multiple presidential candidates from one party.  The Liberal Party claimed victory when its presidential candidates collectively outpolled the National Party candidate, Rafael Leonardo Callejas, who received 42% of the vote.  Jose Azcona Hoyo, the candidate receiving the most votes (27%) among the Liberals, assumed the presidency in January 1986.  With strong endorsement and support from the Honduran military, the Suazo administration had ushered in the first peaceful transfer of power between civilian presidents in more than 30 years.President Callejas took office in January 1990, following November 1989 elections.  Callejas' National Party also won a majority in the unicameral National Congress.  One of Callejas' first acts as President was to have the Congress enact an economic reform package aimed at reducing the deficit and effecting widespread structural reforms.  The government also took steps to deal with an overvalued exchange rate, major structural barriers to investment, and developing new exports.GOVERNMENTThe 1982 constitution provides for a strong executive, a unicameral National Congress, and a judiciary appointed by the National Congress.  The president is directly elected to a four-year term by popular vote.  The congress also serves a four-year term; congressional seats are assigned the parties' candidates in proportion to the number of votes each party receives.The judiciary includes a Supreme Court of Justice, courts of appeal, and several courts of original jurisdiction, such as labor, tax, and criminal courts.  For administrative purposes, Honduras is divided into 18 departments, with departmental and municipal officials elected for two-year terms.National SecurityEvents during the 1980s in El Salvador and Nicaragua led Honduras, with U.S. assistance, to expand its armed forces considerably, laying particular emphasis on its air force, which came to include a squadron of U.S.-provided F-5s.  The resolution of the civil wars in El Salvador and Nicaragua and across-the-board budget cuts made in all ministries have brought reduced funding for the Honduran armed forces and left them seeking new missions, such as protection of the environment.  The military now is well below its authorized 24,000 strength, and further reductions are expected.POLITICAL CONDITIONSDespite the Callejas administration's economic reforms, growing public dissatisfaction with the rising cost of living and with seemingly widespread government corruption led voters in 1993 to elect Liberal Party candidate Carlos Roberto Reina over Nationalist Party contender Oswaldo Ramos Soto, with Reina winning 56% of the vote.President Reina was sworn in January 27, 1994, promising a "Moral Revolution" to curb corruption.  He has taken some steps to implement that policy, but much remains to be done.  His government has been preoccupied by the need to meet a fiscal deficit crisis and an energy crisis, both inherited from the previous administration.  Reina's Liberal Party has an absolute majority in the congress but is highly factionalized.Although there has been some improvement in recent years, members of the civilian and military elites still largely enjoy de facto impunity from criminal prosecution and from civil lawsuits.  Honduran courts often are ineffective in protecting property and other rights, including the property rights of American citizens and other foreigners.While the historically dominant military now plays a less intrusive role in the country's civilian government, it still operates with a great deal of institutional and legal autonomy, particularly in security and military affairs.  The armed forces have answered less to the president of the republic--despite his formal title of supreme commander--than to their own "commander-in-chief," an active-duty officer chosen by a collegium of senior officers and nominally subject to congressional confirmation.  President Reina has indicated that he plans to make the president's  role as supreme commander more effective.There are no known political prisoners in Honduras, and the privately owned media frequently exercises its right to criticism without fear of reprisals.  Reinforced by the media and several political watchdog organizations, human rights and civil liberties are reasonably well protected.  Organized labor represents less than 20% of the work force but has considerable economic and political influence.Political PartiesThe two major parties--the Liberal Party and the National Party--run active campaigns throughout the country.  Their ideologies are mostly centrist, especially on national security issues and foreign policy.  On domestic policy, diverse factions in the Liberal Party tend to pull it leftward, away from the center-right Nationalists.The two smaller registered parties, the Christian Democratic Party and the Innovation and Unity Party, remain marginal left-of-center groupings with few campaign resources and little organization.  Despite significant progress in training and installing more skillful advisers at the top of each party ladder, electoral politics in Honduras remain traditionalist and paternalistic.Principal Government OfficialsPresident--Carlos Roberto Reina IdiaquezMinister of Foreign Relations--Ernesto Paz AguilarAmbassador to the U.S.--Roberto Flores BermudezAmbassador to the UN--Gerardo Martinez BlancoAmbassador to the OAS--Madeleine Villela de TalbotHonduras maintains an embassy in the United States at 3007 Tilden Street NW, Washington, DC 20008 (tel. [phone]).ECONOMYHonduras is one of the poorest and least developed countries in Latin America. The economy is based mostly on agriculture, which accounts for 26% of GDP; coffee and bananas contribute more than 50% to Honduran export revenues.  Honduras has extensive forest, marine, and mineral resources.  Slash-and-burn agricultural methods continue to destroy Honduran forests.  Hondurans are becoming more concerned about their environmental problems.  The armed forces have become more involved in environmental issues, ranging from reforestation projects to forest-fire fighting.  Unemployment officially is estimated at 12%, but actual underemployment may be as high as 40%.After a severe recession in the early 1980s, Honduras achieved moderate but steady economic growth--sparked by the mining, construction, and service sectors--and was supported by large transfers of foreign assistance, particularly from the United States.  In 1990, the Callejas administration undertook a far-reaching economic adjustment program.  Its structural reforms were geared to:--  Restore the balance-of-payments equilibrium;--  Control inflationary pressures;--  Clear outstanding arrears with multilateral creditors; and--  Establish a solid production base to encourage sustainable economic growth through the participation of the private sector.It also deregulated restrictive pricing and marketing mechanisms, liberalized trade, reduced the fiscal deficit, and sharply devalued the lempira.  These dramatic reforms created a stronger foundation for long-term economic growth, but short-term effects--particularly a reduction in disposable income and increased urban unemployment--were painful for the majority of Hondurans.During 1993, President Callejas' last year in office, runaway public spending led to a massive increase in the fiscal deficit and a resurgence of inflationary pressures.  In the first six months of 1994, Honduras saw 19% inflation, which exceeded that for all of 1993.  The economic difficulties were compounded by the onset of an unprecedented energy crisis caused in part by drought.The Reina administration, which inherited the inflation and energy crises in 1994, has devised a deficit reduction package and is getting international firms to invest in the energy sector.  For 1994, the deficit and energy shortages were projected to cause a 2%-4% decline in real GDP and to push inflation above 30%.  The adoption of economic stabilization measures and the energy investments should improve the economy and lower inflation somewhat in 1995.FOREIGN RELATIONSHonduras is a member of the United Nations, the General Agreement on Tariffs and Trade (GATT), the Organization of American States (OAS), the Central American Parliament (PARLACEN), the Central American Integration System (SICA), and the Central American Security Commission (CASC). President Reina consults frequently with the other Central American Presidents on issues of mutual interest.  Despite indications it may do so, Nicaragua has yet to drop its International Court of Justice suit against Honduras for support during the 1980s of the Nicaraguan Resistance.  Reina is continuing his predecessor's strong emphasis on Central American cooperation and integration, which under President Callejas resulted in an agreement easing border controls and tariffs among Honduras, Guatemala, Nicaragua, and El Salvador.In July 1969, El Salvador and Honduras fought the brief "Soccer War" over disputed border areas and friction resulting from the 300,000 Salvadorans who had emigrated to Honduras in search of land and employment.  The catalyst was nationalistic feelings aroused by a series of soccer matches between the two countries.  The two countries formally signed a peace treaty on October 30, 1980, which put the border dispute before the International Court of Justice.  In September 1992, the court awarded much of the disputed land to Honduras.  A Honduran-Salvadoran binational commission is addressing issues such as citizenship and physical demarcation of the border resulting from the ICJ decision.  El Salvador and Honduras maintain normal diplomatic and trade relations.U.S.-HONDURAN RELATIONSHonduras is a firm ally of the United States and generally supports U.S. policy in the UN and other forums.  The U.S. favors stable, peaceful relations between Honduras and its Central American neighbors.  During the 1980s, Honduras supported U.S. policy in Central America opposing a revolutionary Marxist government in Nicaragua and an active leftist insurgency in El Salvador.  The Honduran Government also played a key role in negotiations that culminated in the 1990 Nicaraguan elections.  Honduras offered to accept Haitian and Cuban refugees and offered troops for a UN peace-keeping mission in Haiti to follow the departure of the 1991 Haiti coup leaders.The U.S. works with Honduras for sustained economic, political, and social development and to combat drug trafficking in the region.  Because of economic needs and security concerns, U.S. material assistance and political support are important to Honduras.  USAID is active in Honduras, although official U.S. assistance to the country has been reduced--from $51 million in 1993 to $35 million in 1994--due to worldwide reductions in U.S. bilateral assistance.To make up for lower levels of bilateral economic aid, Honduras is exploring opportunities to increase its exports to the U.S. and elsewhere.  The United States is Honduras' chief trading partner, supplying 45% of its imports and purchasing about half of its exports.  Leading Honduran exports to the United States include coffee, bananas, other fruits and vegetables, seafood, and beef.The United States encourages U.S. investment that contributes to Honduran development and bilateral trade.  The United States accounts for about 85% of total direct foreign investment in Honduras; this is worth about $300 million.  The largest U.S. investments in Honduras are in fruit--particularly banana and citrus--production, petroleum refining and marketing, and mining.  In addition, U.S. corporations have invested in tobacco, maquila, shrimp culture, beef, poultry and animal-feed production, insurance, leasing, food processing, brewing, and furniture manufacturing.The U.S. maintains a small presence at a Honduran military base; the two countries conduct joint military exercises.  The U.S. Information Service has an active program in Honduras.  About 200 Peace Corps volunteers work in health, education, agriculture, small business development, and forestry.Principal U.S. Embassy OfficialsAmbassador--William T. PryceDeputy Chief of Mission--James C. CasonConsul General--Fernando SanchezUSAID Director--Marshall BrownPublic Affairs (USIS)--Mark KrischikDefense Attache--Col. William BrownMilitary Group Commander--Col. Glenn WeidnerCommercial Attache--Michael McGeeThe U.S. embassy in Honduras is located on Avenida La Paz, Tegucigalpa (tel.:  [phone]; faxes:  general--011-504-36-9037, USAID--011-504-36-7776, USIS--011-504-36-9309, Military Group--001-504-33-6171, Commercial Attache--011-504-38-2888). (###)</text>
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        <text>U.S. Department of State Background Notes: The Holy See, September 1995 Bureau of Public Affairs   September 1995 Official Name: The Holy See  PROFILE  Geography and People  Area (Vatican City): 0.439 sq. km. (109 acres). Population: 400. Ethnic groups: Italian, Swiss. Languages: Italian, Latin, French. Literacy: 100%. Work force: 3,000 lay workers (reside outside the Vatican).  Government  Type: Papacy; ecclesiastical governmental and administrative capital of the Roman Catholic Church. Independence: Lateran Pacts regulating independence and sovereignty of the Holy See signed with Italy on February 11, 1929. Suffrage: College of Cardinals elects Pope for life.  PEOPLE AND HISTORY  Almost all of Vatican City's 400 citizens live inside the Vatican's walls. In addition to the approximately 3,000 lay workers who comprise the majority of the work force, the Vatican's employment ranks also include high dignitaries, priests, nuns, and guards. Although official acts of the Holy See are drawn up in Latin, Italian is generally used.  The Holy See's diplomatic history began in the fourth century, but the boundaries of the papacy's temporal power have shifted over the centuries. In the middle of the 19th century, the Popes held sway over the Papal States, including a broad band of territory across central Italy. In 1860, after prolonged civil and regional unrest, Victor Immanuel's army seized the Papal States, leaving only Rome and surrounding coastal regions under papal control.  In 1871, Victor captured Rome itself. The following year Victor entered the city and declared it the new capital of Italy, ending papal claims to temporal power. Pope Pius and his successors disputed the legitimacy of these acts and proclaimed themselves to be "prisoners" in the Vatican. Finally, in 1929, the Italian Government and the Holy See signed three agreements regarding the dispute:  --  A treaty recognizing the independence and sovereignty of the Holy See and creating the State of the Vatican City; --  A concordat fixing the relations between the government and the church within Italy; and --  A financial convention providing the Holy See with compensation for its losses in 1870.  A revised concordat, altering the terms of church-state relations, was signed in 1984.  GOVERNMENT AND INSTITUTIONS  The Pope exercises supreme legislative, executive, and judicial power over the Holy See and the State of the Vatican City. Pope John Paul II, born in Poland, is the first non-Italian Pope in nearly five centuries. Elected on October 16, 1978, he succeeded John Paul I, whose reign lasted only 34 days.  The term "Holy See" refers to the composite of the authority, jurisdiction, and sovereignty vested in the Pope and his advisers to direct the world-wide Roman Catholic Church. As  the "central government" of the Roman Catholic Church,  the Holy See has a legal personality that allows it to enter into treaties as the juridical equal of a state and to send and receive diplomatic representatives. The Holy See has formal diplomatic relations with 157 nations, including the United States.  Vatican City is the base of the Holy See. Created in 1929 to administer properties belonging to the Holy See in Rome, the State of the Vatican City is recognized under international law and enters into international agreements. Unlike the Holy See, it does not receive or send diplomatic representatives.  Administration of the Vatican City  The Pope delegates the internal administration of the Vatican City to the Pontifical Commission for the State of the Vatican City, headed by the Cardinal Secretary of State. The legal system is based on canon, or ecclesiastical law; if canon law is not applicable,  the laws of the city of Rome are invoked. The Vatican City maintains the Swiss Guards, a voluntary military force, as well as a modern security corps. It has its own post office, commissary, bank, railway station, electrical generating plant, and publishing house. The Vatican also issues its own coins, stamps, and passports. Radio Vatican, the official radio station, is one of the most influential in Europe. L'Osservatore Romano is the semiofficial newspaper, published daily in Italian, and weekly in English, Spanish, Portuguese, German, and French (plus a monthly edition in Polish).  Administration of the Holy See  The Pope rules the Holy See through the Roman Curia and the Papal Civil Service. The Roman Curia consists of the Secretariat of State, nine Congregations (equivalent to Ministries), three Tribunals, 12 Pontifical Councils, and a complex of offices that administer church affairs at the highest level. The Secretariat of State, under the Cardinal Secretary of State, directs and coordinates the Curia. The current incumbent, Angelo Cardinal Sodano, is the Holy See's second-ranking official and is the equivalent of a prime minister. Archbishop Jean-Louis Tauran, Secretary of the Section for Relations With States of the Secretariat of State is, in effect, the Vatican's foreign minister.  Among the most active of the major Curial institutions are the Congregation for the Doctrine of the Faith, which oversees church doctrine; the Congregation for Bishops, which coordinates the appointment of bishops worldwide; the Congregation for the Evangelization of Peoples, which oversees all missionary activities; and the Pontifical Council for Justice and Peace, which deals with international peace and social issues.  Three tribunals are responsible for judicial power. The Apostolic Penitentiary deals with matters of conscience; the Roman Rota is responsible for appeals, including annulments of marriage; and the Apostolic Signatura is the final court of appeal.  The Prefecture for Economic Affairs coordinates the finances of the Holy See departments and supervises the administration of the Patrimony of the Holy See (an investment fund dating back to the Lateran Pacts). A committee of 15 cardinals, chaired by the Secretary of State, has final oversight authority over all financial matters of the Holy See, including those of the Institute for Works of Religion (the Vatican bank).  Principal Government Officials  Head of State--Pope John Paul II Secretary of State--Angelo Cardinal Sodano Deputy Secretary of State--Archbishop Giovanni Battista Re Secretary of Section for Relations With States of the Secretariat of State--Archbishop Jean-Louis Tauran Apostolic Pro-Nuncio to the United States--Archbishop Augustino Cacciavillan  The Holy See maintains an Apostolic Nunciature in the U.S. at 3339 Massachusetts Ave. NW, Washington, DC 20008 (tel. [phone]).  Papal Audiences  The North American College in Rome, owned and operated by the U.S. Catholic hierarchy for training American priests, handles all requests for papal audiences. The address is Casa Santa Maria dell'Umilta, Via dell'Umilta 30, 00187, Rome, Italy (tel. [phone]).  FOREIGN RELATIONS  The Holy See conducts an active diplomacy. As noted, it maintains formal diplomatic relations with 157 nations; 67 of these maintain permanent resident diplomatic missions accredited to the Holy See in Rome. The rest have missions located outside Italy with dual accreditation. The Holy See also maintains 91 permanent diplomatic missions abroad.  The Holy See is especially active in international organizations. It has permanent observer status at the United Nations in New York; the Office of the United Nations in Geneva and specialized institutes; the UN Food and Agriculture Organization in Rome; and the UN Educational, Scientific, and Cultural Organization in Paris. The Holy See also has a member delegate at the International Atomic Energy Agency and at the UN Industrial Development Organization in Vienna. It also maintains permanent observers at the Organization of American States in Washington, DC, and the Council of Europe. In addition, the Holy See has diplomatic relations with the European Union in Brussels.  In 1971, the Holy See announced the decision to adhere to the nuclear Non-Proliferation Treaty in order to "give its moral support to the principles that form the base of the treaty itself."  The Holy See is also a participating state in the Organization for Security and Cooperation in Europe.  U.S.-HOLY SEE RELATIONS  The United States maintained consular relations with the Papal States from 1797 to 1870 and diplomatic relations with the Pope, in his capacity as head of the Papal States, from 1848 to 1868. These relations lapsed with the final loss of all papal territories in 1870.  From 1870 to 1984, the United States did not have diplomatic relations with the Holy See. Several recent presidents, however, designated personal envoys to visit the Holy See periodically for discussions of international humanitarian and political issues. Myron C. Taylor was the first of these representatives, serving from 1939 to 1950. Presidents Nixon, Ford, Carter, and Reagan also appointed personal envoys to the  Pope.  The United States and the Holy See announced the establishment of diplomatic relations on January 10, 1984. On March 7, 1984, the Senate confirmed William A. Wilson as the first ambassador to the Holy See. Ambassador Wilson had been President Reagan's personal envoy to the Pope since 1981. The Holy See named Archbishop Pio Laghi as Apostolic Pro-Nuncio (equivalent to ambassador) of the Holy See to the U.S.  Establishment of diplomatic relations has bolstered the frequent contact and consultation between the United States and the Holy See on many important international issues of mutual interest. The United States values the Holy See's significant contributions to international peace and human rights.  Principal U.S. Embassy Officials  Ambassador--Raymond L. Flynn Deputy Chief of Mission--Louis J. Nigro  The U.S. embassy to the Holy See is located in Rome in the Villa Domiziana, Via delle Terme Deciane 26, 00153 Rome, Italy (tel. [phone]).  TRAVEL AND BUSINESS INFORMATION  The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 [phone].  Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].  While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (see "Principal Government Officials" listing in this publication).  Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.  Further Electronic Information:  Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.  Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:  Gopher:  dosfan.lib.uic.edu URL:  gopher://dosfan.lib.uic.edu/ WWW:  http://dosfan.lib.uic.edu/dosfan.html  U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].  Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].  National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.  ======================================== Background Notes Series  --  Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of Public Communication  --  Washington, DC  --  Series Editor:  Marilyn J. Bremner  The Holy See  --  Department of State Publication 8258  --  September 1995  This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC  20402. (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  HAITIPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of HaitiPROFILEPeopleNationality:  Noun and adjective--Haitian(s).  Population (est.):  6.9 million.  Annual growth rate:  1.8%. Ethnic groups:  African descent 95%, African and European descent 5%.  Religions:  Roman Catholic 80%, Protestant 10%; voodoo practices widespread.  Languages:  French (official), Creole (official).  Education:  Years compulsory--6.  Attendance--primary school 45% of school-aged children; secondary 15%.  Literacy--25%.  Health:  Infant mortality rate--101/1,000.  Life expectancy--56 yrs.  Work force (est.):  2.8 million.  Agriculture--67%.  Industry and commerce--20%.  Services--13%.  GeographyArea:  27,750 sq. km. (10,714 sq. mi.); about the size of Maryland.  Cities:  Port-au-Prince (1993 est. pop. 1.5 million).  Other Cities--Cap Haitien (65,000).  Terrain:  Mountainous; rest is plain.  Climate:  Warm, semiarid; high humidity in many coastal areas.GovernmentType:  Elected government.  Independence:  1804.  Constitution:  1987.  Branches:  Executive--President.  Legislative--Senate (27 Seats) Chamber of Deputies (83 Seats).  Judicial--Court of Cassation.Administrative Subdivisions:  Nine departments.Political parties:  Numerous.Suffrage:  Universal at 18.EconomyGNP (1992 est):  $1.5 billion.  GNP growth rate:  -9%. Per capita GNP (est.):  $320.Natural resources:  Bauxite, copper, calcium carbonate, marble, fisheries.Agriculture (20% of GNP):  Products--coffee, sugarcane, rice, corn, cacao, sorghum, pulses, fruits.Industry (30% of GNP):  Types--sugar refining, textiles, flour milling, cement, light industrial products; processing, grading and packing coffee, cacao, mangoes, and essential oils.Services (50% of GNP):  Types--commerce, government, tourism.Trade (1992):  Exports--$86 million:  light manufactured products, coffee, cocoa, mangoes, essential oils.  Major market--U.S. (about 75%).  Imports--$172 million:   consumer durables, foodstuffs, industrial equipment, petroleum products, construction materials.  Major market--U.S. (about 60%).Official exchange rate (fixed in Constitution):  5 gourdes=U.S.$1.  A free foreign exchange market exists in which the U.S. dollar traded in the first half of 1994 for approximately 15 gourdes.PEOPLEHaiti is one of the world's most densely populated countries, with approximately 250 people per square kilometer (650 per sq. mi.).  About 95% of the Haitians are of African descent; the rest of the population is mostly of mixed African-Caucasian ancestry.  A few are of European or Levantine stock.  About 70% of the people live in rural areas.French is one of two official languages, but it is spoken by only about 10% of the people.  All Haitians speak Creole, the country's other official language.  English is increasingly spoken among the young and in the business sector.The state religion is Roman Catholicism, which most of the population professes.  Some have been converted to Protestantism by missionaries active throughout the country.  Haitians, however, tend to see no conflict with voodoo traditions of African origin co-existing with Christian faiths.Although public education is free, less than half of Haitian school-aged children attend school.  Private and religious education provide perhaps 75% of programs offered.  Though Haitians place a high value on education, most families cannot afford to send their children to secondary school.  Recent large-scale emigration to the U.S., and secondarily to Canada and Caribbean neighbors, has created what Haitians refer to as the "Tenth Department."  About one out of every six Haitians lives abroad.HISTORYThe Spaniards used Hispaniola (of which Haiti is the western part and the Dominican Republic is the eastern) as a "jumping-off point" to explore the rest of the Western Hemisphere.  French buccaneers later used the western third of the island as a point from which to harass English and Spanish ships.  In 1697, Spain ceded the western third of Hispaniola to France.  As piracy was gradually suppressed, some French adventurers became planters, making Saint-Domingue--as the French portion of the island was then called--one of the richest colonies of the 18th-century French empire.During this period, African slaves were brought to work the sugarcane  and coffee plantations.  In 1791, the  slave population--led by Toussaint Louverture, Jean Jacques Dessalines, and Henri Christophe--revolted and gained control of the northern part of Saint-Domingue.In 1804, local forces defeated an army deployed by Napoleon Bonaparte, established independence from France, and renamed the area Haiti.  The defeat of the French in Haiti is widely credited with contributing to Napoleon's decision to sell the Louisiana territory to the United States in 1804.  Haiti is the world's oldest black republic and, after the United States, the second-oldest republic in the Western Hemisphere.  Haiti actively espoused and assisted the independence movements of Latin American countries.  Haitians had already fought beside American troops during the American Revolution, at the battle of Savannah.Two separate regimes (north and south) emerged after independence but were unified in 1820.  Two years later, Haiti conquered Santo Domingo, the eastern, Spanish-speaking portion of Hispaniola.  In 1844, however, Santo Domingo broke away from Haiti and became the Dominican Republic.With 22 changes of government from 1843 until 1915, Haiti experienced numerous periods of intense political and economic disorder.  In 1915, the United States intervened militarily during an especially unstable period.  U.S. military forces were withdrawn in 1934 at the request of the elected Government of Haiti.In 1957, Francois Duvalier was elected president following a year of political turmoil during which six different governments held power.  He became president for life in 1964 and maintained absolute political control until his death in 1971.  During Duvalier's rule, a small black middle class emerged, but Haiti suffered from domestic political tension, severe corruption, severe repression, and economic stagnation.  The United States suspended all economic and military assistance to the government of Francois Duvalier in 1963; aid was resumed only in 1973.Duvalier's son, Jean-Claude, assumed the presidency and continued many of his father's policies.  Although the country experienced a true period of economic recovery and investment, Jean-Claude ultimately failed to provide the leadership necessary for Haiti's sustained development.  As a result, the country stagnated politically and economically, and public discontent mounted.  On February 7, 1986, after months of tension and civil disorder, Jean-Claude fled Haiti for France.A military regime--the National Governing Council (CNG)--led by General Henri Namphy inherited power following the flight of Jean-Claude Duvalier.  In late 1986, the CNG organized local and Constituent Assembly elections.  In March 1987, a national referendum approved a new and thoroughly democratic constitution.  The CNG cancelled general elections scheduled for November 1987, however, amid popular discontent and regime repression.In January 1988, in elections marred by the refusal of most major candidates to participate and by low voter turnout, Leslie Manigat was elected president.  Manigat, a moderate conservative, was toppled by the military after only four months in power, and General Namphy again took control.  Namphy was in turn overthrown by elements of the military in September 1988, and another military regime, headed by General Prosper Avril, took power.  Avril permitted the formation of an Electoral Commission to prepare for long-awaited elections, but Avril's increasingly authoritarian leadership eroded public confidence in his commitment to democracy.  On March 12, 1990, faced with escalating civil unrest, Avril resigned in favor of Supreme Court Justice Ertha Pascal Trouillot, who became Provisional President.In elections held in December 1990, Jean-Bertrand Aristide, a Roman Catholic priest and long-time opponent to Haiti's former dictatorship, was elected President by an overwhelming majority.  The election was witnessed by international observers from the U.S., UN, and OAS and was declared to be Haiti's first free and honest election.  Voters also elected members of parliament and mayors of Haiti's major towns.  Aristide was inaugurated on February 7, 1991.  However, on September 30, 1991, Aristide was overthrown by dissatisfied elements of the military and left the country first for Venezuela, then for the U.S.From October 1991 to June 1992, an unconstitutional de facto regime, led by Joseph Nerette as President and Jean-Jacques Honorat as Prime Minister, governed with the support of a parliamentary majority and the armed forces.  In June 1992, both Nerette and Honorat resigned, and parliament, with the support of the armed forces, approved Marc Bazin as Prime Minister to head a new de facto government.  No replacement was named for Nerette as President.  Bazin's mandate was to negotiate a solution with President Aristide, in exile in the U.S., and to end the economic embargo and diplomatic isolation of Haiti imposed after Aristide's ouster.  In June 1993, Bazin resigned and the UN imposed an oil and arms embargo, which brought the Haitian military to the negotiating table.POLITICAL CONDITIONSPresident Aristide and the then head of the Haitian Armed Forces, General Raoul Cedras, signed the UN-brokered Governors Island agreement on July 3, 1993, establishing a 10-step process for the restoration of constitutional government and the return of President Aristide by October 30, 1993.  As part of this process, Robert Malval was sworn in as Prime Minister on August 30, 1993.  The military derailed the process and the UN reimposed economic sanctions.  Prime Minister Malval resigned on December 15, 1993, but remained as acting Prime Minister for 11 more months.In May 1994, the military installed a third de facto regime, illegitimately selecting Supreme Court Justice Emile Jonaissant to be provisional president.  The UN and the U.S. reacted to this extraconstitutional move by tightening economic sanctions and their enforcement in May 1994 (UN Res. 917).  By the end of July 1994, the international community suspended all commercial air passenger flights with Haiti, and Haiti's military restricted travel across the land border with the Dominican Republic.  On July 31, 1994, the UN adopted a resolution (940) authorizing member states to use all necessary means to facilitate the departure of Haiti's military leadership and restore constitutional rule, including the return of President Aristide.  In August 1994, Haiti had parallel governments, the illegitimate military-backed Jonassaint regime that controlled the government apparatus in Haiti, and the constitutional government, whose members--like President Aristide--were in exile or who, like acting Prime Minister Malval, were blocked from carrying out their duties.  Parliament, with a parallel leadership in the Senate that mirrored the dual governments, was unable to function effectively.  The political and human rights climate continued to deteriorate as the military and the de facto government maintained repression and terror, sanctioning widespread assassination, killing, torture, beating, mutilation, and rape in open defiance of the international community's condemnation.With UN authority to use all necessary means to facilitate the departure of Haiti's military leadership and restore the constitutional government, including President Aristide, President Clinton dispatched former President Jimmy Carter, Chairman of the Senate Armed Services Committee Sam Nunn, and former Chairman of the Joint Chiefs of Staff Colin Powell to Haiti on September 16, 1994, to meet with the de facto Haitian leadership.  The purpose of their trip was to discuss the departure of the de facto leaders within the framework of goals established by President Clinton and the UN Security Council.Facing imminent military intervention by the United States and a coalition of multinational forces, the regime leaders agreed to step down from power by October 15.  The agreement signed by former President Carter and the military-installed Haitian President Jonaissant included the following:  the Haitian military and police agreed to work in close cooperation with the U.S. military mission to achieve a smooth transition to the return of President Aristide and constitutional government to Haiti.  The regime consented to retirement by Generals Cedras and Biamby and Lt. Col. Francois in accordance with UN resolutions 917 and 940 when a general amnesty would be voted into law by the Haitian Parliament, or by October 15, 1994, whichever came first.The de facto authorities also agreed to work with the Haitian Parliament to expedite this action and accept that their successors would be named according to the Haitian constitution and existing military law.  The agreement also guaranteed that the economic embargo and economic sanctions would be lifted without delay in accordance with relevant UN resolutions, and that forthcoming legislative elections would be held in a free and democratic manner.On September 19, U.S. forces began a remarkably peaceful deployment to Port-au-Prince and other points throughout the country to establish a safe and secure environment for the legitimate government to take up its responsibilities.  During the next several weeks, about 20,000 U.S. troops and a battalion of nearly 300 from CARICOM nations, under the command of U.S. General Henry Shelton, deployed to accomplish this mission. The security offered by their presence made it possible for the Haitian Parliament, including 11 pro-Aristide members who returned from exile in the U.S. and Canada, to pass amnesty legislation.  The legislation itself does not grant amnesty but defines the president's  authority to do so.  The parliament has also begun work on bills to establish a new police force and other key measures.The transition period leading up to President Aristide's return on October 15 included the return of his cabinet members to their ministries, the reinstallation of Port-au-Prince Mayor Evans Paul to his office, the resignation of the leader of the militant anti-Aristide group FRAPH and the confiscation of some 4,000 weapons, and finally, the resignation from office and the departure of Cedras, Biamby, and Francois from Haiti.  Cedras and Biamby, accompanied by family members and some staff members, departed for exile in Panama on October 13.  Francois was offered exile in the Dominican Republic on October 4.Among the challenges President Aristide faces since returning to Haiti are to implement his call for peace and reconciliation and to put into place his plan to revive a free market economy.  Within a month of Aristide's return, his nominee for Prime Minister, businessman Smarck Michel, and a new cabinet were sworn in.  The formation of a new government whose composition is aimed at a consensus of Haiti's major political, economic, and social forces should accelerate democratic and structural change in the Haitian Government.Aristide also named a new civilian Minister of Defense, Wilthan Lherisson; a new Commander of the Haitian Armed Forces, Brig. Gen. Bernardin Poisson; and a new Chief of Police, Col. Pierre-Stanislao Neptune.  It is expected that these new leaders will help promote respect for democracy and human rights within their institutions.International SupportNearly 30 countries have committed to participate along with the U.S. in the multinational force:  Argentina, Australia, Bangladesh, Belgium, Benin, Bolivia, Costa Rica, Denmark, Israel, Jordan, the Netherlands, Norway, Panama, the Philippines, Poland, and the U.K., in addition to 12 of the 13 members of the Caribbean Community (CARICOM):  Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis,  St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago.The multinational force will ultimately give way to the UN Mission in Haiti (UNMIH), which will consist of 6,000 peacekeepers who will maintain a secure environment and ensure a smooth transition to democracy.  As an intermediate measure, UNMIH will help restore democracy by professionalizing the military, training a new Haitian police force, maintaining civic order, and protecting Haitian Government personnel and facilities, as well as the staffs of human rights and humanitarian organizations.  The United States will make a significant contribution to UNMIH, particularly in support forces.  UNMIH will work in concert with the UN Secretary General's Special Representative on Haiti.  Experts from many countries are working with the legitimate government already to assist in reforming and restructuring Haiti's police and armed forces.Principal Government OfficialsPresident--Jean-Bertrand AristidePrime Minister--Smarck MichelMinister of Foreign Affairs--Claudette WerleighAmbassador to the U.S.--Jean CasimirThe embassy of Haiti is located at 2311 Massachusetts Ave. NW, Washington, DC 20008 (tel. [phone]).ECONOMYHaiti is the poorest country in the Western Hemisphere and one of the poorest in the world.  A comparison of social and economic indicators reveals that in the 1980s Haiti was falling behind even other low-income developing countries.  Haiti's relatively dismal economic performance is in part the result of a severe shortage of cultivable land,  continued reliance on traditional technologies, declining GDP, rising prices, under- and unemployment rates estimated as high as 60%, and emigration of large numbers of skilled workers.  Weak development management capability and an acute scarcity of financial resources further constrain growth.The consequences of the 1991 coup and the irresponsible policies of the de facto authorities greatly accelerated the economic decline begun in the early 1980s.  After the 1991 coup, the OAS adopted voluntary trade sanctions against Haiti aimed at restoring constitutional rule to the country and resulting in commercial restrictions between Haiti and the U.S., its largest trading partner.  The international sanctions culminated in a May 1994 UN embargo of all goods entering Haiti except humanitarian supplies, such as food and medicines.  By May 1994, the Port-au-Prince industrial park, which employed some 35,000 workers in the late 1980s, was largely inactive.  The assembly sector, heavily dependent on the United States as its main market for exports, employed more than 50,000 in the early 1980s, but has effectively ground to a halt following successively tighter economic sanctions.New investment and commercial bank lending virtually disappeared, as businesses waited for political change and an end to the embargo.  The country's physical infrastructure (ports, roads, bridges, markets, electricity) continued to erode and will require large investments of capital in the near future to restore the country to its pre-coup status.As political stability returns to Haiti, tourism, the assembly industry and light manufacturing hold promise as potential sources of foreign exchange.  Remittances from relatives abroad (primarily in the U.S.) serve as a significant means of support for many Haitian households.FOREIGN RELATIONSHaiti is one of the original members of the United Nations and several of its specialized and related agencies and the Organization of American States (OAS).  The Inter-American Development Bank (IDB), the UN Development Program (UNDP), and the International Monetary Fund (IMF) maintained resident representatives in Haiti prior to the 1991 coup.  Both the IDB and the UNDP contributed economic assistance to Haiti in the past, as did the European Union, under the terms of the Lome Accords to which Haiti became a full member in December 1989.  Most assistance was suspended following the 1991 coup.  Other donors include the United States (the largest single country donor), Canada, France, Germany, and Japan.Haiti maintains diplomatic relations with most countries in Latin America and Europe, although many of these countries do not maintain embassies in Haiti.  A previously adopted UN resolution lifted UN-sponsored sanctions the day after President Aristide's return to Haiti.U.S.-HAITIAN RELATIONSU.S. policy toward Haiti is designed to foster democracy, promote the observance of fundamental human rights, and help alleviate poverty in the hemisphere's poorest country.  The U.S. has taken a leading role in organizing international efforts at the UN, the OAS, with CARICOM, and individual countries to achieve this objective.President Clinton's decision to dispatch U.S. forces to Haiti was based on the need to "protect our interests, to stop the brutal atrocities that threaten tens of thousands of Haitians; to secure our borders and to preserve stability and promote democracy in our hemisphere, and to uphold the reliability of the commitments we make and the commitments others make to us."After September 19, 1994, the U.S. lifted most of its unilateral financial, visa, and travel sanctions against Haiti and accelerated this process following the return of President Aristide.  The U.S. has been the largest single country donor to contribute economic aid to Haiti since 1973, when the U.S. Agency for International Development (USAID) resumed its assistance programs.  The overall goal of the USAID program is to establish conditions necessary for the majority of Haitians to improve the quality of their lives.  The USAID program has three basic objectives:--  Strengthening governance and responsiveness in public sector institutions and strengthening private sector participation in an emerging civil society;--  Supporting sustainable private sector economic growth; and--  Protecting and developing the human resource base.Since the 1991 coup, U.S. development assistance has been largely channeled through nongovernmental organizations, due to lack of a constitutional government counterpart.  During this period, the USAID program has been guided by two principles:  preventing the deterioration of humanitarian conditions and restoring constitutional democracy.  For fiscal year 1995, USAID has committed about $200 million for Haiti's economic recovery, as well as humanitarian and democratic governance programs.  The economic recovery funding ($87 million) includes $24.5 million for payments of its arrears to international financial institutions and $45 million for balance-of-payments and budget support.  The international community is expected to provide approximately $550 million in the next year.U.S. humanitarian aid programs have included funds to promote and protect human rights by providing medical care to victims of abuses, including rape and beatings, assisting families in hiding, and establishing small-scale safe havens.  Led by the U.S., the international community feeds about 910,000 people each day.  More than 2 million people (one-third of the population) have access to basic health care services financed by USAID. USAID funding of $40 million for democratic governance, plus contributions from other donors, will focus on several areas of need for sustaining democracy, including:  the restoration of government operations, elections, formation of an independent system of justice with the establishment of a police force separate from the military, reintegration of Haitian soldiers into civilian life, and expansion of the capacities of local government.  In the long run, these may be the most critical steps, and they are essential in transforming the relationship of the Haitian citizen to the Haitian state.Principal U.S. OfficialsAmbassador --William Lacy SwingDeputy Chief of Mission--Vicki HuddlestonThe U.S. embassy in Haiti is located on Harry Truman Blvd., Port-au-Prince (tel. 22-0200). (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: GUYANAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSOfficial Name:  Co-operative Republic of GuyanaPROFILEGeographyArea:  214,970 sq. km. (82,980 sq. mi.); about the size of Idaho.Cities: Capital--Georgetown (pop. 248,500).  Other cities--Linden (27,200) and New Amsterdam (17,700).  Terrain:  Coastal plain, inland highlands, rain forest, savanna.Climate:  Tropical.PeopleNationality:  Noun and adjective--Guyanese (sing. and pl.).Population:  735,000.Ethnic groups:  East Indian origin 51%, African origin 30%, mixed 14%, Indian 4%.Religions:  Christian 50%, Hindu 33%, Muslim 9%, other 8%.Languages:  English, Guyanese Creole, Indian dialects.Education:  Years compulsory--ages 5-14.  Attendance--70%.  Literacy--98% of adults who have attended school.Health:  Infant mortality rate--50/1,000.  Life expectancy--men 61, women 68.Work force (245,000):  Industry and commerce--45%.   Agriculture--33%.  Services--22%.  GovernmentType:  Republic within the Commonwealth.Independence:  May 26, 1966; Republic--February 23, 1970.Constitution:  1980.Branches:  Executive--executive president (chief of state and head of government), prime minister.  Legislative--unicameral National Assembly (53 directly, 12 indirectly elected members for five-year term 1992-97).  Judicial--Judicial Court of Appeal, High Court.Subdivisions:  10 regions.Political parties and seats in the National Assembly:  People's Progressive Party (PPP/CIVIC) 36; People's National Congress (PNC) 26; Working People's Alliance (WPA) 2; The United Force (TUF) 1; Democratic Labor Movement (DLM) 0.Suffrage:  Universal at 18.Economy (1993)GDP:  $440 million.Real annual growth rate:  8%.Per capita GDP:  $570Agriculture:  Products--sugar, rice.Natural resources: Gold, bauxite, diamonds, timber, shrimp, fish. Industry:  Types--gold and bauxite mining, manufacturing, processing.Trade (1993):  Exports--$335 million:  sugar, bauxite, rice, gold, shrimp, rum, timber, molasses.  Major markets--U.S. (33%), U.K., CARICOM countries.  Imports--$339 million.  Major suppliers--U.S. (38%), U.K., Venezuela.Exchange rate:  141 Guyana dollars=U.S. $1.PEOPLEGuyana's population is made up of five main ethnic groups--East Indian, African, American Indian, Chinese, and Portuguese.  Ninety percent of the inhabitants live on the narrow coastal plain, where population density is more than 115 persons per square kilometer (380 per sq. mi.).  The population density for Guyana as a whole is low--less than four persons per square kilometer.Although the government has provided free education from nursery school to the university level since 1975, it has not allocated sufficient funds to maintain the standards of what had been considered the best educational system in the region.  Many school buildings are in poor condition; there is a shortage of text and exercise books; the number of teachers has declined; and fees are being charged at the university level for some courses of study for the first time.  In 1985, the Government of Guyana opened President's College, the country's first boarding school, which, like the older Queen's College, selects students on the basis of nationwide competitive examinations from the top 2% of Guyana's schoolchildren.  Guyana had an estimated literacy rate in 1993 of 98% for those over age 15 who have ever attended school.HISTORYBefore the arrival of Europeans, the region was inhabited by both Carib and Arawak tribes, who named it Guiana, which means "land of waters."  The Arawaks tended to live along the coast and numerous offshore islands, and the Caribs in the interior.  Its coast was sighted by Columbus in 1498 but was ignored by Spanish settlers.  The Dutch settled in Guyana in the late 16th century, and were welcomed by the Indians as trading partners.  However, the colonial government exploited the Indians as well as the African slaves brought in to replace the decimated Indian populations.  Interrupted briefly by the French and British, Dutch control ended when the British became the de facto rulers in 1796.  In 1815, the colonies of Essequibo, Demerara, and Berbice were officially ceded to Great Britain at the Congress of Vienna and, in 1831, were consolidated as British Guiana.Following the abolition of slavery in 1834, thousands of indentured laborers were brought to Guyana to replace the slaves on the sugar cane plantations, primarily from India but also from Portugal and China.  The British stopped the practice in 1917.  Many of the Afro-Guyanese former slaves moved to the towns and became the majority urban population, whereas the Indo-Guyanese remained predominantly rural.  A scheme in 1862 to bring black workers from the United States was unsuccessful.  The small Indian population lives in the country's interior.The peoples drawn from these diverse origins have coexisted peacefully for the most part.  Slave revolts, such as the one in 1763 led by Guyana's national hero, Cuffy, demonstrated the desire for basic rights but also a willingness to compromise. Labor disputes in the period following emancipation showed similar characteristics.  The development of organized labor was led by H. N. Critchlow, the father of local trade unionism.  Racial disturbances between East Indians and blacks erupted in 1962-64.  However, the basically cooperative nature of Guyanese society contributed to a cooling of racial tensions.Guyanese politics, nevertheless, occasionally has been turbulent.  The first modern political party in Guyana was the People's Progressive Party (PPP), established on January 1, 1950, with Forbes Burnham, a British-educated Afro-Guyanese, as chairman;  Cheddi Jagan, a U.S.-educated Indo-Guyanese, as second vice-chairman; and his American-born wife, Mrs. Janet Jagan, as secretary general.  The PPP won 18 out of 24 seats in the first popular elections permitted by the colonial government in 1953, and Dr. Jagan became leader of the house and minister of agriculture in the colonial government.  Five months later, on October 9, 1953, the British suspended the constitution and landed troops because, they said, the Jagans and the PPP were planning to make Guyana a communist state.  These events led to a split in the PPP, in which Burnham broke away and founded what eventually became the People's National Congress (PNC).  Elections were permitted again in 1957 and 1961, and Cheddi Jagan's PPP ticket won on both occasions, with 48% of the vote in 1957 and 43% in 1961.  Cheddi Jagan became the first Premier of British Guiana, a position he held for seven years.  At a constitutional conference in London in 1963, the U.K. Government agreed to grant independence to the colony, but only after another election in which proportional representation would be introduced for the first time.  It was widely believed that this system would reduce the number of seats won by the PPP and prevent it from obtaining a clear majority in parliament.  The December 1964 elections gave the PPP 46%, the PNC 41%, and the United Force (TUF), a conservative party, 12%.  TUF threw its votes in the legislature to Forbes Burnham, who became Prime Minister.  Guyana achieved independence in May 1966, and Guyana became a republic on February 23, 1970, the anniversary of the Cuffy slave rebellion.  From December 1964 until his death in August 1985, Forbes Burnham ruled Guyana in an increasingly autocratic manner, first as Prime Minister and later, after the adoption of a new constitution in 1980, as Executive President.  The PNC increased its parliamentary majority to 66% in the 1973 elections and to more than 75% in the 1980 and 1985 elections.  However, these elections were viewed in Guyana and abroad as fraudulent.  Human rights and civil liberties were suppressed, and two major political assassinations occurred:  The Jesuit priest and journalist Bernard Darke in July 1979 and the distinguished historian and Working People's Alliance (WPA) party leader Walter Rodney in June 1980.  Agents of President Burnham are widely believed to have been responsible for both deaths.Following Burnham's death, Prime Minister Hugh Desmond Hoyte acceded to the presidency and was formally elected to that position in the December 1985 national elections.  President Hoyte gradually brought about an almost complete reversal of Burnham's policies, moving from state socialism and one-party control to a market economy and unrestricted freedom of the press and assembly.On October 5, 1992, a new National Assembly and Regional Councils were elected in the first Guyanese elections since 1964 to be internationally recognized as free and fair.  The PPP/Civic won 54% of the votes; the PNC, 42%; WPA, 2%; and TUF, 1%.  The leader of the party with the largest vote, Cheddi Jagan, automatically became President; he was sworn in on October 9, 1992, the 39th anniversary of the day the British landed troops and suspended the colonial legislature he led.  Former President Hoyte became minority leader in the National Assembly in an orderly and peaceful transition.  President Jagan appointed a prime minister and a cabinet consisting of eight Indo-Guyanese, four Afro-Guyanese, and two Guyanese of Portuguese, one of Chinese, and one of American Indian descent.  Two members of the cabinet and 13 members of the National Assembly, from both major parties, are women.GOVERNMENTLegislative power rests in a unicameral National Assembly, with 53 members chosen on the basis of proportional representation from national lists named by the political parties.  An additional 12 members are elected by regional councils elected at the same time as the National Assembly.  The president may dissolve the assembly and call new elections at any time, but no later than five years from its first sitting; the term of office of the current assembly therefore must end by December 17, 1997.  Executive authority is exercised by the president, who appoints and supervises the prime minister and other ministers, and approval by the assembly is not required.  The president is not directly elected; each party presenting a slate of candidates for the assembly must designate in advance a leader who will become president if that party receives the largest number of votes.  Therefore, any dissolution of the assembly and election of a new assembly can lead to a change in the assembly majority and consequently a change in the presidency.  Only the prime minister is required to be a member of the assembly; in practice, most other ministers are also members.  Those who are not members serve as nonelected members, which permits them to debate but not vote.The highest judicial body is the Court of Appeal, headed by a chancellor of the judiciary.   The second level is the High Court, presided over by a chief justice.  The chancellor and the chief justice are appointed by the president.For administrative purposes, Guyana is divided into 10 regions, each headed by a chairman who presides over a regional democratic council.  Local communities are administered by village or city councils.Principal Government OfficialsExecutive President--Cheddi B. JaganPrime Minister--Samuel A. HindsForeign Minister--Clement RoheeAmbassador to the United States--Mohammed Ali Odeen IshmaelPermanent Representative to the UN--Rudy InsanallyGuyana maintains an embassy in the United States at 2490 Tracy Place, NW, Washington, DC. 20008 (tel. [phone]), and the following constituent missions:  Consulate general and permanent mission to the United Nations, 866 United Nations Plaza, 3rd Floor, New York, NY  10017 (tel. [phone]); honorary consulate general, 2402 Broadway, East Chicago, Indiana 46312 (tel. [phone]); honorary consulate, 655 N.W. 36th Street, Suite 207, Miami, Florida 33166; honorary consulate, 611 S. William Place, Los Angeles, California 90005 (tel. [phone]); and honorary consulate, P.O. Box 4362, Waco, Texas 76705 (tel. [phone]).POLITICAL CONDITIONSRace and ideology have been the dominant political influences in Guyana, and since the split of the multi-racial PPP in 1955, politics has been based more on ethnicity than on ideology.  From 1964 to 1992, the People's National Congress (PNC) dominated Guyana's politics.  The PNC draws its support primarily from urban blacks and for many years declared itself a socialist party whose purpose was to make Guyana a nonaligned socialist state, in which the party, as in communist countries, was above all other institutions.  Following independence, with the help of substantial foreign aid, social benefits were provided to a broader section of the population, specifically in health (e.g., establishment of rural clinics), education, housing, road and bridge building, agriculture, and rural development.  However, during Forbes Burnham's last years, the government's attempts to build a socialist society, massive emigration of skilled workers, and other factors led to a significant decline in the overall quality of life in Guyana.  After Burnham's death in 1985, President Hoyte took steps aimed at stemming the economic decline, including appointing a number of competent technocrats to his government, strengthening financial controls over the parastatal corporations, and supporting the private sector.  In August 1987, at a PNC Congress, President Hoyte announced that the PNC rejected orthodox communism and the one-party state.  The party has reassessed its left-wing, Marxist-inspired ideology.As the 1992 elections approached, Hoyte, under increasing pressure from inside and outside Guyana, also gradually opened the political system.  After a visit to Guyana by former U.S. President Jimmy Carter in 1990, Hoyte made changes in the electoral rules and appointed a new chairman of the Elections Commission from a list submitted by the opposition parties.  The 1992 elections were witnessed by 100 international observers, including a group headed by Mr. Carter and another from the commonwealth of nations.  Both groups issued reports saying the elections had been free and fair, despite violent attacks on the elections commission building on election day.The overwhelming majority of  Guyanese of East Indian extraction traditionally have backed the People's Progressive Party (PPP), headed by Cheddi Jagan, who served as Premier (1957-64) and then minority leader in parliament until 1992.  Rice farmers and sugar workers in the rural areas form the bulk of the PPP's support, but Indo-Guyanese who dominate the country's urban business community have also provided important support.  Its 1992 campaign platform made no mention of socialism or Marxism, but pledged itself to "build a mixed, tri-sectoral economy based on state, private and co-operative forms of ownership."  It also stated that under PPP/Civic Government there would be no nationalization of locally or foreign owned businesses.Today, the PNC and the PPP/Civic, who together represent 96% of the electorate, can both be considered pro-democracy and human rights, friendly to the United States and other Western democracies, and supportive of an expanded private sector.The Working People's Alliance (WPA), a small, multi-ethnic, political party won two seats in parliament.ECONOMYWith a per capita gross domestic product of only $570 in 1993, Guyana is one of the poorest countries in the Western Hemisphere.  The economy made dramatic progress after President Hoyte's 1989 economic recovery program (ERP).  As a result of the ERP, Guyana's GDP increased 6% in 1991 after 15 years of decline.  Growth in 1993 was 8%.  Developed in conjunction with the World Bank and the International Monetary Fund (IMF), the ERP significantly reduced the government's role in the economy, encouraged foreign investment, enabled the government to clear all its arrears on loan repayments to foreign governments and the multilateral banks, and brought about the sale of 15 of the 41 government-owned (parastatal) businesses.  The telephone company and assets in the timber, rice, and fishing industries were also privatized.  International corporations were hired to manage the huge state sugar company, GUYSUCO, and the largest state bauxite mine.  An American company was allowed to open a new bauxite mine and two Canadian companies were permitted to develop the largest gold mine in Latin America. Most price controls were removed, the laws affecting mining and oil exploration were improved, and an investment policy receptive to foreign investment was announced.  Tax reforms designed to promote exports and agricultural production in the private sector were enacted. The Jagan Government has pledged to the World Bank and the IMF that it will continue the basic reforms of the ERP.  In July 1993, a government white paper announced that "the government has decided to adopt a privatization strategy. . . for reducing its presence in the economy. . . in order to create a more competitive and market-driven environment."  The paper listed 16 of the remaining 26 state enterprises as eligible for privatization.Agriculture and mining are Guyana's most important economic activities, with sugar, bauxite, rice, and gold accounting for 75%-80% of export earnings.  Ocean shrimp accounted for another 15% in 1990, but declining catches reduced shrimp exports in 1993.  Other exports include timber, diamonds, garments, and locally assembled stoves and refrigerators.  The value of these other exports is increasing.GUYSUCO, controls all sugar manufacturing operations as well as the marketing of raw sugar.  With more than 23,000 direct employees, the sugar industry is the largest employer in Guyana.  Most of Guyana's sugar goes to fill special sugar quotas granted by the European Union and the United States.  Exports increased from $63 million in 1990 to $133 million in 1992.In 1993, with the beginning of production from the Omai mine, gold became Guyana's second-most valuable export.  Omai is a joint venture of two Canadian firms, Cambior (70%) and Golden Star (25%), and the Guyana Government (5%), and is operated and managed by Cambior.  Omai expects to produce 280,000 ounces of gold a year for at least 10 years; at $375 an ounce, that will increase the value of Guyana's exports by some $100 million a year, or about one-third.   In addition, officially recorded gold sales by individual miners to the government's gold board, as required by law, exceeded 100,000 ounces in 1992, a new record, but it is widely assumed that most gold produced by these miners goes unrecorded.The bauxite sector consists of two government-owned companies, LINMINE and BERMINE, and Aroaima, a company owned in equal shares by the government and by the U.S. firm Reynolds.  Total bauxite production was between 1.3 and 1.4 million metric tons (mt) a year from 1986 to 1991.  In 1992, however, production dropped by one-third, to 0.9 million mt, despite increasing production by Aroaima.  This was due to deteriorating equipment and the lack of new capital investment at the government mines.  As a result, Guyana has lost market share to other producers.  Since the early 1980s, due to high production costs and low world prices, the bauxite industry has been a net user of foreign exchange, draining funds from other productive areas of the economy.Rice-growing is dominated by private farmers and millers, with extensive government involvement in allocation of foreign inputs, maintenance of infrastructure, and marketing.  Since 1986, Guyana has received its entire wheat supply from the United States on concessional terms under a PL 480 Food for Peace program.  A January 1993 agreement converted the program from a loan to a grant basis.  The Guyanese currency generated by the sale of the wheat is used for purposes jointly agreed upon by the U.S. and Guyana Governments.Guyana's external debt of $1.9 billion was more than four times its GDP.  Debt service payment obligations were equal to 40% of its earnings from exports.  About half is owed to the multilateral development banks and 20% to its neighbor Trinidad, which until 1986 was its principal supplier of petroleum products.  Almost all debt to the U.S. Government has been forgiven.  Net international reserves had improved to $246 million by the end of 1993.  Guyana's extremely high debt burden to foreign creditors has meant limited availability of foreign exchange and reduced capacity to import necessary raw materials, spare parts, and equipment, thereby further reducing production.  The decline of production has increased unemployment.  Although no reliable statistics exist, combined unemployment and underemployment are estimated at about 30%.  Emigration, principally to the U.S. and Canada, is substantial.The foreign exchange market was fully liberalized in 1991 and currency is now freely traded without restriction.  The rate is subject to change on a daily basis, but has increased by only 15% since 1991.FOREIGN RELATIONSAfter independence in 1966, Guyana sought an influential role in international affairs, particularly among Third World and nonaligned nations.  It served twice on the UN Security Council (1975-76 and 1982-83).  Former Vice President, Deputy Prime Minister, and Attorney General Mohamed Shahabuddeen was elected to a nine-year term on the International Court of Justice in 1987.  Guyana's ambassador to the United Nations, Rudy Insanally, was elected as president of the UN General Assembly in September 1993.Guyana has diplomatic relations with a wide range of nations.  Brazil, Canada, China, Colombia, Cuba, North Korea, Russia, Suriname, the United Kingdom, the United States, and Venezuela maintain diplomatic missions in Georgetown.  Several other nations, such as France, Germany, and Japan, retain honorary consuls there.  The European Union (EU), the Inter-American Bank (IADB), the UN Development Program (UNDP), and the World Health Organization (WHO) also have offices in Georgetown.  In March 1994, the Organization of American States (OAS), which Guyana joined in 1991, opened an office.The Caribbean Community and Common Market (CARICOM) is headquartered in Georgetown.  The country also is a member of the Caribbean Development Bank (CDB).  Guyana strongly supports the concept of regional integration and is currently discussing increased ties to Trinidad and Barbados.  It played an important role in the founding of CARICOM, but its status as the organization's poorest member limits its ability to exert leadership in regional activities.  Guyana has sought to keep foreign policy in close alignment with the consensus of CARICOM members, especially in voting in the UN, OAS, and other international organizations.As a member of CARICOM, Guyana strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  Guyana agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.Since its 1993 ratification of the 1988 Vienna convention on illicit traffic in narcotic drugs, Guyana has been a member of all the major international agreements for cooperation against narcotics trafficking, and it cooperates closely with U.S. law enforcement agencies.Two neighbors have long-standing territorial disputes with Guyana.  Since the 19th century, Venezuela has claimed all of Guyana west of the Essequibo River--62% of Guyana's territory.  At a meeting in Geneva in 1966, the two countries agreed to receive recommendations from a representative of the UN Secretary General on ways to settle the dispute peacefully.  Diplomatic contacts between the two countries and the Secretary General's representative continue.  Neighboring Suriname also claims the territory east of Guyana's New River, a largely uninhabited area of some 15,000 square kilometers (6,000 sq. mi.) in southeast Guyana.  Guyana regards its legal title to all of its territory as sound.U.S.-GUYANESE RELATIONSU.S. policy toward Guyana seeks to promote democracy, development, and human rights.  During the last years of his administration, President Hoyte sought to improve relations with the United States as part of a decision to move his country toward genuine political nonalignment.  Relations were also improved by Hoyte's efforts to respect human rights, invite international observers for the 1992 elections, and reform electoral laws.  The United States also welcomed the Hoyte Government's economic reform and stimulus efforts, which stimulated investment and growth.  The 1992 democratic elections and Guyana's reaffirmation of sound economic policies and respect for human rights have placed U.S.-Guyanese relations on an excellent footing.Following the 1992 elections, Canada, the United Kingdom, and the United States increased their aid to Guyana.  U.S. assistance had ceased in 1982 due to economic and political differences with the Burnham regime, but in 1986 the United States began to supply humanitarian food aid to the country, to a total value of nearly $50 million in 1986-93.  Altogether, since 1955, the United States has provided Guyana with more than $171 million in assistance.U.K., French, and U.S. military personnel conducted training exercises with the Guyana Defence Force in Guyana in 1993, and such exercises were expected to become a regular feature of the military cooperation between these countries.  U.S. military medical and engineering teams have also conducted training exercises in Guyana, digging wells and providing medical treatment.The U.S. Information Agency (USIA) maintains the John F. Kennedy Library in George- town, one of the largest libraries in Guyana.  USIA also arranges U.S. cultural presentations in Guyana several times a year and provides scholarships for Guyanese students and professionals for advanced study in the United States.Principal U.S. Embassy OfficialsAmbassador--George F. JonesDeputy Chief of Mission--J. Christian KennedyPolitical Officer--Edgar L. EmbreyConsular Officer--Rudolph F. BooneEconomic and Commercial Officers--Michael Heath/Chever X. VoltmerLabor Officers--Willard Smith/Colleen A. HoeyPublic Affairs Officers (USIS), Acting--Willard Smith/Colleen A. HoeyThe U.S. embassy in Guyana is located at the corner of Duke and Young Streets, Georgetown (tel. [phone]; fax: [phone]).  Mail may be sent to the Embassy c/o U.S. State Department, Washington, DC  20521-3170.  (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  GUATEMALAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of GuatemalaPROFILEGeographyArea:  108,780 sq. km. (42,000 sq. mi.); about the size of Tennessee.Cities:  Capital--Guatemala City (pop. 2 million).  Other major cities--Quetzaltenango (72,000), Escuintla (87,000).Terrain:  Mountainous, with fertile coastal plain.Climate:  Temperate in highlands; semitropical on coasts.PeopleNationality:  Noun and adjective--Guatemalan(s).Population (1994 est.):  10 million.Annual population growth rate:  3%.Ethnic groups:  Mestizo (mixed Spanish-Indian), indigenous.Religions:  Roman Catholic, Protestant, traditional Mayan.Languages:  Spanish, 21 Indian languages (including Quiche, Cakchiquel,Kekchi).Education:  Years compulsory--6.  Attendance--41%.  Literacy--52%.Health:  Infant mortality rate--79/1,000.  Life expectancy--60 yrs.general population; 44 yrs. Indian population.Work force:  The majority of the population engages in some form ofagriculture.  The formal work force breaks down as follows:  Services--36%.  Industry and commerce--29%.  Agriculture--28%.  Construction,mining, utilities--4%.GovernmentType:  Constitutional democratic republic.Constitution:  May 1985; amended November 1993.Independence:  September 15, 1821.Branches:  Executive--president (four-year term).  Legislative--unicameral 80-member Congress (four-year term).  Judiciary--13-memberSupreme Court of Justice (five-year term).Subdivisions:  22 departments and Guatemala City.Major political parties:  Guatemalan Republican Front (FRG), Party ofNational Advancement (PAN), Christian Democratic Party (DCG), Union ofthe National Center (UCN), National Liberation Movement (MLN), Movementof Solidarity Action (MAS).Suffrage:  Universal for adults 18 and over who are not serving onactive duty with the armed forces.PEOPLEMore than half of Guatemala's population of 10 million are descendantsof Mayan Indians.  Westernized Mayans and mestizos (mixed Spanish andIndian) are known as ladinos.  Most of Guatemala's population is rural,although urbanization is accelerating.  About one-quarter of thepopulation now lives in the Guatemala City metropolitan area.The predominant religion is Roman Catholicism, which many Indians havesuperimposed on their traditional forms of worship.  Protestantism andtraditional Mayan religious practices account for an estimated 30% ofthe population.  Although the official language is Spanish, it is notuniversally understood by the indigenous population.HISTORYThe Mayan civilization flourished throughout much of Guatemala and thesurrounding region long before the Spanish arrived, but it already wasin decline when the Mayans were defeated by Pedro de Alvarado in 1523-24.  During Spanish colonial rule, most of Central America came underthe control of the Captaincy General of Guatemala.The first colonial capital, Ciudad Vieja, was ruined by flood andearthquake in 1542.  Survivors founded Antigua, the second capital, in1543.  In the 17th century, it became one of the richest capitals in theNew World.  Always vulnerable to volcanic eruptions, floods, andearthquakes, it was destroyed by two earthquakes in 1773, but theremnants of its Spanish colonial architecture have been preserved as anational monument.  The third capital, Guatemala City, was founded in1776, after Antigua was abandoned.The country has had a turbulent post-independence history.  Guatemalagained independence from Spain on September 15, 1821; it briefly becamepart of the Mexican Empire and then for a period belonged to afederation called the United Provinces of Central America.  From themid-19th century until the mid-1980s, the country passed through aseries of dictatorships, insurgencies (particularly beginning in the1960s), coups, and stretches of military rule with only occasionalperiods of representative government.From 1944 to 1986In 1944, Gen. Jorge Ubico's dictatorship was overthrown by the "OctoberRevolutionaries"--a group of dissident military officers, students, andliberal professionals.  A civilian president, Juan Jose Arevalo, waselected in 1945; he held the presidency until 1951.  Social reformswhich were begun under him were continued by his successor, Col. JacoboArbenz.  Colonel Arbenz permitted the communist Guatemalan Labor Partyto gain legal status in 1952.  By the mid-point of Arbenz's term,communists controlled key peasant organizations, labor unions, and thegoverning political party, holding somekey government positions.Despite most Guatemalans' attachment to the original ideals of the 1944uprising, key segments of society and the military viewed Arbenz'spolicies as a menace.  The army refused to defend the government when agroup led by Col. Carlos Castillo Armas invaded the country fromHonduras in 1954 and eventually took over the government.  Theassassination of President Castillo in 1957 precipitated a period ofconfusion from which Gen. Miguel Ydigoras Fuentes emerged as Presidentin 1958.A 1960 revolt by junior military officers failed, and some of theparticipants went into hiding, creating the nucleus of a guerrillamovement which established close ties with Cuba.  In early 1963, a newmilitary group, headed by Col. Enrique Peralta Azurdia, restored order.But the unconstitutional nature of the regime created disaffection,played upon by the guerrillas, especially among students.  A constituentassembly drafted a new constitution, promulgated in September 1965.The presidential candidate of the moderate Revolutionary Party won by aplurality in the 1966 elections, thus briefly returning the country to acivilian presidency.  Shortly after President Julio Cesar MendezMontenegro took office, the army launched a major counterinsurgencycampaign that largely broke up the guerrilla movement in thecountryside.  The guerrillas then concentrated their attacks inGuatemala City, where they assassinated many leading figures, includingU.S. Ambassador John Gordon Mein, in 1968.The country again came under military rule in 1970.  The new President,Gen. Carlos Arana (1970-74), declared a state of siege, and an intenseanti-terrorist campaign forced terrorist groups to reduce their activitymarkedly.  He was followed by Gen. Kjell Laugerud Garcia, who wasdeclared the winner in disputed 1974 presidential elections.  Hissuccessor, Gen. Fernando Romeo Lucas Garcia, was inaugurated on July 1,1978; he promised to attack vigorously Guatemala's socioeconomicproblems, but violence increased.Three principal left-wing guerrilla groups--the Guerrilla Army of thePoor (EGP), the Revolutionary Organization of Armed People (ORPA), andthe Rebel Armed Forces (FAR)--conducted economic sabotage and targetedgovernment installations and members of government security forces inarmed attacks.  These three organizations have since combined with afourth guerrilla organization--the outlawed communist party, known asthe PGT--to form the Guatemalan National Revolutionary Unity (URNG).  Atthe same time, extreme right-wing groups of self-appointed vigilantes,such as the Secret Anti-Communist Army (ESA) and the White Hand,tortured and murdered students, professionals, and peasants suspected ofinvolvement in leftist activities.  As the March 1982 electionsapproached, political violence steadily grew as guerrillas sought todisrupt the electoral process.The winner by plurality of the March 7, 1982, elections was formerDefense Minister Gen. Anibal Guevara.  Opposition centrist parties,though, claimed electoral fraud.  On the morning of March 23, 1982, theNational Palace in Guatemala City was surrounded by army troopscommanded by junior officers who were opposed to General Guevara'sattempted takeover of power by fraud.  The coup leaders asked Brig. Gen.Efrain Jose Rios Montt to negotiate the departure of presidentialincumbent General Lucas.  Rios Montt had been the candidate of theChristian Democratic Party in the 1974 presidential elections and waswidely believed to have lost by fraud.Rios Montt formed a three-member junta that canceled the 1965constitution, dissolved the Congress, suspended political parties, andcanceled the election law.  On June 9, Rios Montt accepted theresignations of the two other junta members and assumed the title ofPresident of the Republic.  Responding to a wave of violence, the RiosMontt government imposed a state of siege on July 1, 1982--severelyrestricting civil liberties--and created a system of special courts,which were independent of the regular judiciary.  Politically, RiosMontt formed an advisory Council of State to assist him in returning thenation to democracy.  In 1983, electoral laws were promulgated, thestate of siege was lifted, and political activity was once againallowed.  The Rios Montt government scheduled constituent assemblyelections for July 1, 1984.Guerrilla forces and their leftist allies denounced the new governmentand stepped up their attacks.  Rios Montt sought to combat them throughmilitary actions and economic reforms--or, in his words, through "riflesand beans."  The government formed civilian defense forces and achievedsuccess in containing the insurgency.  However, the economy suffered asevere setback, with per capita GDP dropping more than 10% in real termsduring Rios Montt's presidency.  Infighting within the military led tothe imposition of a state of siege on June 29, 1983, a shake-up of RiosMontt's advisers, and continuing coup rumors.On August 8, 1983, Rios Montt was deposed by the Guatemalan army.  Hisouster capped years of political violence in Guatemala from both rightand left and continuing economic turmoil.  The Minister of Defense, Gen.Oscar Humberto Mejia Victores, was proclaimed head of state the sameday.  General Mejia claimed that certain "religious fanatics" wereabusing their positions in the government and that corruption had to beweeded out.  The Mejia government quickly abolished the controversialcourts of special jurisdiction.  Constituent assembly elections wereheld on July 1, 1984.On May 30, 1985, after nine months of debate, the constituent assemblyfinished drafting a new constitution, which took immediate effect.Chief of State Mejia called general elections for president, congress,mayor, and city councils for November 3, 1985.  A runoff election washeld on December 8.  The Christian Democratic Party of Guatemala (DCG)candidate, Vinicio Cerezo, won the presidency with almost 70% of thevote and took office in January 1986.  The DCG also won 51 of the 100seats in the national congress.From 1986 to 1994Upon its inauguration in January 1986, President Cerezo's new civiliangovernment announced that its top priorities would be to end thepolitical violence of insurgency and counterinsurgency actions and toestablish the rule of law.The army divested itself of its governing role and rededicated itself tothe professionalization of its forces and combat against the insurgents.Guatemala's police forces were reorganized, including the dissolution ofthe Department of Technical Investigations (DIT), the plainclothes armof the national police widely considered to have engaged in extortion,robbery, and political kidnapings and assassinations.The Supreme Court embarked on a series of reforms designed to fightcorruption and improve the efficiency of the legal system.  Otherreforms included new laws of habeas corpus and amparo, or court-orderedprotection; the creation of a legislative human rights committee; andthe establishment in 1987 of the office of Human Rights Ombudsman.The first two years of Cerezo's administration were characterized by astable economy and a marked decrease in the level of politicallymotivated violence.  But two attempted coups in May 1988 and May 1989marked the onset of renewed political and general violence.  The Cerezoadministration was heavily criticized for its unwillingness toinvestigate or prosecute cases of human rights violations.  The finaltwo years of Cerezo's government also were marked by a failing economy,strikes, protest marches, and allegations of widespread corruption.  Thegovernment's inability to deal with many of the nation's problems--suchas infant mortality, illiteracy, deficient health and social services,and rising levels of violence--contributed to the population'sdiscontent.Presidential and congressional elections were held on November 11, 1990.Jorge Serrano was inaugurated on January 14, 1991, after a runoffballot, thereby completing the transition from one democraticallyelected civilian government to another.  From the beginning, however,Serrano was plagued by his weak political base.  Because his rulingMovement of Solidarity Action (MAS) party had only 18 of 116 seats inCongress, Serrano had to enter into a sometimes tenuous alliance withthe Christian Democrats and the Union of the National Center (UCN).Overall, the Serrano administration's record was mixed.  Serrano hadsome success in consolidating civilian control over the army highcommand.  He replaced two defense ministers (required by the 1985constitution to be active-duty army officers), two military chiefs ofstaff, and one chief of the air force.  He also persuaded the militaryto participate in peace talks with the leftist URNG rebels.The Serrano government did a credible job of reversing the economicslide it inherited, reducing inflation and boosting  real growth from 3%in 1990 to almost 5% in 1992.  It passed a sweeping tax reform package,concluded a standby agreement with the IMF, and cleared arrears with theinternational financial institutions--all achievements that had eludedthe Cerezo administration.On the international front, Guatemala under the Serrano administrationincreased cooperation in counternarcotics matters with the U.S. toeradicate opium poppy cultivation in Guatemala and to reduce Guatemala'sgrowing role as a transit point for Colombian-produced cocaine destinedfor the U.S. market.  As part of this effort, cooperation on extraditionmatters also increased.Serrano strongly condemned human rights abuses, but enforcement wasspotty.  Initiatives to fight corruption met with some success; theSerrano administration prosecuted some corrupt government officials andarrested the former heads of the national electrical utility and thehead of the national telephone company.  However, as the administrationwore on, many Guatemalans regarded Serrano as more interested inconducting "business as usual" than in bringing about lasting solutionsto the country's chronic political, economic, and social problems.On May 25, 1993, Serrano illegally dissolved Congress and the SupremeCourt and tried to restrict civil freedoms, allegedly in an attempt tofight corruption.  But the so-called autogolpe (autocoup) failed due tostrong protests by many of the Guatemalan people, internationalpressure, and the army's role in enforcing the decisions of the Court ofConstitutionality, which ruled against Serrano's and his VicePresident's illegal takeover of power.Serrano fled the country.  On June 5, 1993, the Congress--pursuant tothe 1985 constitution--elected Guatemala's Human Rights Ombudsman,Ramiro De Leon Carpio, to complete Serrano's presidential term.  DeLeon--not a member of any political party and with strong popularsupport--launched an ambitious anti-corruption campaign to "purify"Congress and the Supreme Court by demanding the resignations of allmembers of those two bodies.  Despite considerable congressionalresistance, presidential and popular pressure led to a November 1993agreement brokered by the Catholic Church between the government andCongress on a package of constitutional reforms.  These reforms wereapproved by popular referendum on January 30, 1994.GOVERNMENTGuatemala's 1985 constitution provides for a separation of powers amongthe executive, legislative, and judicial branches of government.  The1993 constitutional reforms included:  the calling of new congressionalelections; a reduction in the number of congressional representativesfrom 116 to 80; a replacement of Supreme Court justices; an increase inthe number of Supreme Court justices from nine to 13; and a reduction inthe terms of office for president and congressional representatives fromfive to four years and for Supreme Court justices from six to fiveyears.The president is directly elected under universal suffrage and,beginning with the 1995 elections, will serve a four-year term.  Thepresident cannot serve a successive term.  There is a vice president,who also will serve a four-year term.The congress is unicameral.  Its 80 members are elected for four years,and the terms are not staggered.There is a Supreme Court, whose members are appointed by the Congressbased on a selection list submitted by the bar association, law schooldeans, a university rector, and appellate judges.  Pursuant to the 1993constitutional reforms, the new Supreme Court justices took office inOctober 1994.  The justices serve five-year terms.  The Supreme Courtand local courts handle civil and criminal cases.  There also is aconstitutional court.Guatemala has 22 administrative subdivisions, or departments, which areadministered by governors appointed by the president.  Guatemala City isnot included in any of the 22 departments; it is administered by apopularly elected mayor.In early congressional elections on August 14, 1994--required by the1993 constitutional reforms--two conservative anti-corruption parties,the Guatemalan Republican Front (FRG) and the Party of NationalAdvancement (PAN), together garnered 56 of the 80 seats in the newlystructured Congress.  Although voter participation was low, thecongressional elections democratically resolved the sharp differencesamong the executive branch, the legislature, and the Supreme Court, andrelations between the executive and the legislature are expected toimprove.  General elections for president, Congress, and mayorsthroughout the country will be held in the latter part of 1995.National SecurityThe mission of the Guatemalan armed forces is defense against externalthreats, provision of internal security, and promotion of nationaldevelopment.  The president acts as commander in chief through hisminister of defense.  Day-to-day operations are run by the chief ofstaff and the national defense staff.The Guatemalan army number about 43,000 personnel, including subordinateair force (700) and navy (1,300) elements.  The army is operationallyorganized into 19 military zones and three strategic brigades.  The airforce operates three air bases; the navy has two port bases.  The 1994defense budget is estimated at $123 million--about 1% of GDP.The armed forces are equipped with armaments and materiel from theUnited States, Israel, Yugoslavia, Taiwan, Argentina, Spain, and France.Guatemala is a signatory to the Rio Pact and is a member of the CentralAmerican Defense Council (CONDECA).Principal Government OfficialsPresident--Ramiro De Leon CarpioVice President--Arturo Herbruger AsturiasMinister of Foreign Affairs--Maritza Ruiz de VielmanAmbassador to the U.S.--Edmond Mulet LessieurAmbassador to the UN--Julio Martini HerreraAmbassador to the OAS--Cesar Alvarez GuadamuzGuatemala maintains an embassy in the United States at 2220 R Street,NW, Washington, DC  20008 (tel. [phone]), and consulates in NewYork, Miami, Chicago, Houston, and Los Angeles, as well as an honoraryconsul in New Orleans.POLITICAL CONDITIONSSince the early 1960s, the Guatemalan military has been engaged incounter-insurgency operations against Marxist-Leninist guerrillas.  Whenthe army was divested of its governing role as a result of the 1985democratic elections, it rededicated itself to the professionalizationof its forces and to combat against the insurgents.  Although the armyhas reduced the insurgency to the point that it does not threatennational stability, guerrillas continue to mount attacks on militaryinstallations and economic infrastructure and to extort "war taxes" fromcivilians.  Since much of Guatemala's violence stems from its long-running internal armed conflict, a resolution of the conflict wouldgreatly contribute to an improvement in Guatemala's human rights andeconomic situation.President De Leon, a former Guatemalan Human Rights Ombudsman, hasstrongly and publicly expressed his refusal to tolerate human rightsabuses.  He eliminated the presidential security force (Archivos),implicated in many human rights violations.  The number of politicallymotivated deaths and kidnapings was substantially lower in mid-1994 thanin the early 1980s, but important human rights problems remain,including the use of force and abuses by political extremists of theleft and the right and by some individual and former members of thesecurity forces.In many instances, the Guatemalan Government still does not adequatelyfollow through on investigating and prosecuting violations, especiallythose committed by security forces and persons associated with orprotected by the army, such as the civil defense patrols and militarycommissioners.  These problems are aggravated by a legacy of violence,vigilante justice, and common crime.  The judiciary and democraticinstitutions have developed only a limited capacity to cope with thislegacy.The De Leon government has shown great interest in reaching a peaceaccord.  In January 1994, the umbrella URNG guerrilla organization andthe Guatemalan Government resumed talks stalled during previousadministrations.  The UN served as moderator, and a formal "Friends ofthe Peace Process" group--composed of Colombia, Mexico, Norway, Spain,Venezuela, and the U.S.--also was formed.In late March 1994, the government and guerrillas took a major stepforward in the peace process when they signed a human rights accord thatcalled for the immediate establishment of a UN Human Rights VerificationMission in Guatemala (MINUGA), which began to operate in November 1994.At the same time, a calendar was agreed upon for the GuatemalanGovernment and URNG to address major outstanding issues.  The calendaranticipated an end to the war in December 1994.  Major accords on"uprooted" people and to establish a Historical Clarification Commissionto look into human rights abuses related to the war were signed in June1994.  As of late November 1994, the two sides were discussing the issueof indigenous rights, but a final, overall peace agreement had not beenreached.ECONOMYAssuming political stability, Guatemala is well-positioned for rapideconomic growth over the next few years.  For 1994, Guatemala's GDP isestimated at $11 billion, with a growth rate of 4%.Agriculture is the largest economic sector, contributing 24% of GDP andaccounting for 75% of exports.  Most manufacturing is devoted to lightassembly and food processing operations and is still geared mainlytoward the domestic and Central American markets.  Since 1986, tourismand exports of textiles, apparel, and non-traditional agriculturalproducts such as winter vegetables, fruits, and cut flowers have boomed.The United States is the country's largest trading partner.  Guatemala'seconomy is dominated by the private sector, which generates about 85% ofGDP.  The government's small and shrinking participation in productionhas always been limited to public utilities and several development-oriented financial institutions.Guatemala's return to civilian democratic rule in 1986 spurred areversal of the steep economic decline that had reduced real per capitaincome by nearly 20% in the first half of the 1980s. It also marked thestart of a trend toward economic diversification and improvedinternational competitiveness, spurred by economic policies thatpromoted financial stability and growth through exports.  These policieshave included:--  Simplifying the tax structure and broadening the tax base--Guatemala's tax burden is still among the lowest in the world, however;--  Restraining growth of domestic credit, especially to the publicsector;--  Eliminating most price controls--only basic staples remain subjectto controls;--  Unifying and liberalizing the previously government-controlled,multi-tiered exchange rate;--  Increasing private sector participation in electricity andtelecommunications industries; and--  Liberalizing the market for petroleum products.Import tariffs have been lowered in conjunction with Guatemala's CentralAmerican neighbors so that most now fall between 5% and 20%.Responding to Guatemala's changed political and economic policyenvironment, the international community has mobilized substantialresources to support the country's economic and social developmentobjectives.  The United States, in particular, and Germany, to a lesserextent, have provided significant amounts of balance-of-paymentsassistance.  Along with other donor countries--especially France, Italy,Spain, and Japan--they also have increased development projectfinancing.Problems hindering economic growth include illiteracy and low levels ofeducation; inadequate capital markets; and lack of infrastructure,particularly in the transportation and electrical sectors.  Thedistribution of income and wealth remains highly skewed.  The richest10% of the population receives almost one-half of all income; the top20% receives two-thirds of all income.  As a result, more than half thepopulation lives in poverty, and two-thirds lives in extreme poverty.Guatemala's social indicators, such as infant mortality and illiteracy,are correspondingly among the worst in the hemisphere.FOREIGN RELATIONSGuatemala's major diplomatic interests are regional security issues and,increasingly, regional development and economic integration issues.  Thecountry has been an active participant in the Contadora and Esquipulasprocesses.  It hosted the June 1990 Central American Economic Summit,which was attended by the Presidents of El Salvador, Honduras, CostaRica, Nicaragua, and--for the first time--Panama.  It also originatedthe idea for, and is the seat of, the Central American Parliament(PARLACEN).Guatemala long has laid claim to Belize; the territorial dispute causedproblems with the United Kingdom and later with Belize, following its1981 independence from the U.K.  Relations have since improved.  In1986, Guatemala and the U.K. re-established commercial and consularrelations; in 1987, they re-established full diplomatic relations.  InDecember 1989, Guatemala sponsored Belize for permanent observer statusin the Organization of American States (OAS); Guatemalan PresidentCerezo and Belizean Prime Minister Price met twice in 1990 to discussbilateral relations.  In September 1991, Guatemala recognized Belize'sindependence and established diplomatic ties, while acknowledging thatthe boundaries remained in dispute.In April 1993, then-Foreign Minister Menendez Park met with his Belizeancounterpart in Miami.  Among the decisions made was that both stateswould forswear the use of force to settle any problems over the issue.The De Leon government has made clear that Guatemala continues itsrecognition of Belize while at the same time seeking discussions toresolve the territorial dispute.  In early 1994, the GuatemalanGovernment forwarded a letter to the UN reserving its rights on theborder issue.  It also has created an internal advisory council whosemandate is to suggest a policy leading to an end to the dispute withBelize.U.S.-GUATEMALAN RELATIONSRelations between the United States and Guatemala traditionally havebeen good.  U.S. policy in Guatemala includes:--  Supporting the institutionalization of democracy;--  Encouraging Guatemalan respect for human rights and the rule of law;--  Supporting broad-based economic growth and sustainable development;--  Cooperating with the Guatemalan Government to combat narcoticstrafficking;--  Supporting Central American integration and regional peace efforts,including the dialogue process with the Guatemalan insurgency;--  Maintaining mutually beneficial trade relations; and--  Supporting a solution to the Belize dispute acceptable to theparties involved.U.S. military assistance to Guatemala was suspended in 1990 followingthe murder of American citizen Michael Devine by members of theGuatemalan armed forces.  The soldiers responsible for Devine's murderwere tried, convicted, and imprisoned, but the officer who led thekillers escaped from detention in May 1993.  The U.S. views his captureand imprisonment as fundamental to improved relations with theGuatemalan military.The United States is Guatemala's largest trading partner, providing 45%of the country's imports and receiving 37% of its exports.  U.S.official assistance to Guatemala since 1986 totals about $900 million,but the level of aid now is markedly reduced--for FY 1994, $55 millionin bilateral economic development assistance--as U.S. aid levels declineworldwide.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES: GRENADAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  GrenadaPROFILEGeographyArea:  344 sq. km. (133 sq. mi.); about twice the size of Washington, DC.Cities:  Capital--St. George's (est. pop. 30,000).Terrain:  Volcanic island with mountainous rainforest.Climate:  Tropical.PeopleNationality:  Noun and adjective--Grenadian(s).Population (est.):  94,000; 50% under age 30.Annual growth rate:  0.6%.Ethnic groups:  Mainly black African descent (82%), few East Indian, few European, trace Arawak/Carib Indian.Religions:  Roman Catholic, Church of England, other Protestant denominations.Languages:  English (official).Education:  Years compulsory--6.  Literacy--90% of adult population.Health:  Infant mortality rate--17/1,000.  Life expectancy--68 yrs.Work force (1993):  35,000.  Agriculture--33%.  Industry--17%.  Other--50%.GovernmentType:  Westminster-style parliamentary system.Independence:  February 7, 1974.Constitution:  December 19, 1975.Branches:  Executive--governor general (appointed by and represents British monarch, head of state); prime minister (head of government, leader of majority party) and cabinet direct an apolitical career civil service in the administration of the government.  Legislative--parliament composed of 15 directly elected members in the House of Representatives and a 13-seat Senate appointed by the governor general on the advice of the majority party and opposition.  Judicial--Supreme Court, composed of the High Court of Justice and a Court of Appeals; magistrates for misdemeanors.Subdivisions:  Six parishes and one dependency.Political parties:  National Democratic Congress (NDC), The National Party (TNP), New National Party (NNP), Grenada United Labor Party (GULP), Maurice Bishop Patriotic Movement (MBPM), Initiative for Better Government (IBR), and New Republican Party (NRP).Suffrage: Universal at 18.Economy (1993)GDP:  $174 million.Annual growth rate:  0.7%.Per capita GDP:  $1,800.Agriculture:  Products--bananas, nutmeg, mace, cocoa, other fruits, vegetables.Industry:  Types--manufacturing, hotel/restaurant, construction.Trade: Exports--$19.8 million:  bananas, nutmeg, mace, cocoa, other fruits, vegetables.  Major markets--U.K. 26%, U.S. 25%, CARICOM countries 17%, Germany 14%, Netherlands 10%.  Imports--$177 million:  food, machinery and transport, manufactured goods, fuel.  Major suppliers--U.S. 26%, CARICOM countries 21%, U.K. 16%,  Japan 6%.Official exchange rate:  Eastern Caribbean dollar (EC) $2.70=U.S. $1.PEOPLEMost of Grenada's population is of African descent; there is little trace of the early Arawak and Carib Indians.  A few East Indians and a small community of the descendants of early European settlers reside in Grenada.  Population is about 94,000.  About 50% of Grenada's population are under the age of 30.  English is the official language; only a few people still speak a French patois.  A more significant reminder of Grenada's historical link with France is the strength of the Roman Catholic Church, to which about 60% of Grenadians belong.  The Church of England is the largest Protestant denomination.HISTORYBefore the arrival of Europeans, Grenada was inhabited by Carib Indians who had driven the more peaceful Arawaks from the island.  Columbus landed on Grenada in 1498 during his third voyage to the New World.  He named the island "Concepcion."  The origin of the name "Grenada" is obscure.  Legend has it that the Spanish renamed the island for the city of Granada.  By the beginning of the 18th century, the name "Grenada" was in common use.Partly because of the Caribs, Grenada remained uncolonized for more than 100 years after its discovery; British efforts to settle the island were unsuccessful.  In 1650, a French company founded by Cardinal Richelieu purchased Grenada from the British and established a small settlement.  After several skirmishes with the Caribs, the French brought in reinforcements from Martinique and slaughtered the entire Indian population.The island remained under French control until its capture by the British a century later, during the Seven Years' War.  Grenada was formally ceded to Great Britain in 1763 by the Treaty of Paris.  Although the French regained control in 1779, the island was restored to Great Britain in 1783 by the Treaty of Versailles.During the 18th century, Grenada's economy underwent an important transition.  Like much of the rest of the West Indies, it was originally settled to cultivate sugar, which was grown on estates using slave labor.  But natural disasters paved the way for the introduction of other crops.  In 1782, Sir Joseph Banks, the botanical adviser to King George III, introduced nutmeg to Grenada.  The island's soil was ideal for growing the spice, and, because Grenada was a closer source of spices for Europe than the Dutch East Indies, the island assumed a new importance to European traders.  The collapse of the sugar estates and the introduction of nutmeg and cocoa encouraged the development of smaller land holdings.  The island developed a land-owning yeoman farmer class; slavery was outlawed in 1833.In 1833, Grenada was made part of the British Windward Islands Administration.  The governor of the Windward Islands administered the island for the rest of the colonial period.  In 1958, the Windward Islands Administration was dissolved, and Grenada joined the Federation of the West Indies.  After that federation collapsed in 1962, the British Government tried to form a small federation out of its remaining dependencies in the Eastern Caribbean.  Following the failure of this second effort, the British and the islands developed the concept of associated statehood.  Under the Associated Statehood Act of 1967, six British dependencies in the Eastern Caribbean (Grenada, St. Vincent, St. Lucia, Dominica, Antigua, and St. Kitts-Nevis-Anguilla) were granted full autonomy over their internal affairs.  Great Britain retained responsibility for their defense and external affairs.  Grenada became an associated state on March 3, 1967, but sought full independence, which the British Government granted on February 7, 1974.After obtaining independence, Grenada adopted a modified Westminster parliamentary system based on the British model, with a governor general appointed by and representing the British monarch (head of state) and a prime minister who is both leader of the majority party and the head of government.  Sir Eric Gairy was Grenada's first Prime Minister.On March 13, 1979, the New Joint Endeavor for Welfare, Education, and Liberation (New Jewel) Movement ousted Gairy in a nearly bloodless coup and established a People's Revolutionary Government (PRG), headed by Maurice Bishop, who became Prime Minister.  His Marxist-Leninist government moved to establish close ties to Cuba, the Soviet Union, and other communist-bloc countries.In October 1983, a power struggle within the government resulted in the arrest and subsequent execution of Prime Minister Bishop and several members of his cabinet by elements of the People's Revolutionary Army.  Following a breakdown in civil order, a multilateral, joint U.S.-Caribbean force landed on Grenada on October 25 in response to an appeal from the governor general and to a request for assistance from the Organization of Eastern Caribbean States.  U.S. citizens were evacuated, and order was restored.An advisory council, named by the governor general, administered the country until general elections were held in December 1984.  The New National Party (NNP), led by Herbert Blaize, won 14 out of 15 seats in free and fair elections and formed a democratic government.  Grenada's constitution had been suspended in 1979 by the PRG, but it was restored after the 1984 elections.The NNP continued in power until 1989 but with a reduced majority. Five NNP parliamentary members--including two cabinet ministers--left the party in 1986-87 and formed the National Democratic Congress (NDC), which became the official opposition.  In August 1989, Prime Minister Blaize broke with the NNP to form another new party--The National Party (TNP)--from the ranks of the NNP.  This split in the NNP resulted in the formation of a minority government with TNP controlling only six seats in the parliament.  Shortly thereafter, the Prime Minister suspended the parliament pending constitutionally scheduled elections to be held in March 1990.  Prime Minister Blaize died in December 1989 and was succeeded as Prime Minister by Ben Jones until after the elections.The NDC emerged from the 1990 elections as the strongest party, winning seven of the 15 available seats.  Nicholas Brathwaite added two TNP members and one GULP member to create a 10-seat majority coalition.  The governor general appointed him to be Prime Minister.GOVERNMENT AND POLITICAL CONDITIONSGrenada is governed under a parliamentary system based on the British model; it has a governor general, a prime minister and cabinet, and a bicameral parliament with an elected House of Representatives and an appointed Senate.As part of its 1985 restoration of the constitution, the parliament legitimized the court system inherited from its predecessors, who had ruled by decree.  Political and civil rights are fully guaranteed by the government.Grenada's political parties range from the moderate TNP, NNP, and NDC to the Marxist Maurice Bishop Patriotic Movement (MBPM--organized by the pro-Bishop survivors of the October 1983 anti-Bishop coup) and the populist GULP of former Prime Minister Gairy.National SecuritySecurity in Grenada is maintained by the 650 members of the Royal Grenada Police Force (RGPF), which includes an 80-member paramilitary special services unit (SSU) and a 30-member coast guard unit.  The U.S. Army and the U.S. Coast Guard provide periodic training for the SSU and the coast guard.Principal Government OfficialsHead of State--Queen Elizabeth IIGovernor General--Sir Reginald PalmerPrime Minister and Minister of External Affairs, National Security, Home Affairs, and Carriacou and Petit Martinique Affairs--Nicholas BrathwaiteAmbassador to the United States--Denneth ModesteGrenada maintains an embassy in the United States at 1701 New Hampshire Avenue, NW, Washington, DC 20009 (tel. [phone]).ECONOMYEconomic growth in 1993 was modest (0.7%) in spite of a strong performance by the tourism sector, which grew by 15%.  GDP for 1993 was $174 million.  Grenada's exports declined for the year; domestic exports were $15.8 mil-lion, and re-exported products accounted for $3.9 million.  At $177 million, Grenada's imports were nine times the level of its exports.  The U.S. was the country's largest supplier, providing 26% of all imports.Grenada is a member of the Caribbean Community and Common Market (CARICOM).  Most goods can be imported into Grenada under open general license, but some goods require specific licenses.  Goods that are produced in the Eastern Caribbean get additional protection; in May 1991, the CARICOM Common External Tariff (CET) was implemented.  The CET aims to facilitate economic growth through intra-regional trade by offering duty-free trade among CARICOM members and duties on goods imported from outside CARICOM.  Among the types of surcharges and other levies that can be assessed on imports, a value added tax (VAT)--which ranges from 5%-52%--is the largest.  Certain goods and services, such as basic foodstuffs, are exempted from VAT.  Combined duties and levies on U.S. imports range from zero on essential goods and raw materials to about 100% for some luxury goods.Tourism accounted for 27% of the country's 1993 GDP.  Based on the opening of two large hotels in December 1993, the sector is expected to grow by another 25% in 1994.  Americans are the largest group of tourists, representing about one out of every three visitors.Grenada's agriculture grew slightly in real terms from 1992-93 and contributed 14% to 1993 GDP.  For 1992-93, the country's manufacturing (5% of 1993 GDP) fell slightly in real terms.  The major causes of manufacturing's decline were critical shortages of water and electricity in industrial areas.  Manufacturing for domestic consumption faced strong competition from imported products, mostly because of CARICOM's lowered tariffs.  High wages relative to other Caribbean producers lowered some companies' productivity.FOREIGN RELATIONSThe United States, Venezuela, and Taiwan have embassies in Grenada.  The Government of the United Kingdom is represented by a resident commissioner (as opposed to the governor general, who represents the British monarch).  Grenada has been recognized by most members of the United Nations and maintains diplomatic missions in the United Kingdom, the United States, Venezuela, and Canada.Grenada is a member of the Caribbean Development Bank, CARICOM, the Organization of Eastern Caribbean States (OECS), and the British Commonwealth.  It joined the United Nations in 1974, and the World Bank, the International Monetary Fund, and the Organization of American States in 1975.As a member of CARICOM, Grenada strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.U.S.-GRENADIAN RELATIONSThe U.S. Government established an embassy in Grenada in November 1983.  The ambassador for Grenada also is accredited to Barbados and is resident in Bridgetown, Barbados.  The embassy in Grenada is to be staffed by a principal officer who reports to the ambassador in Bridgetown.The U.S. Agency for International Development (USAID) has played a major role in Grenada's development, providing more than $120 million in economic assistance.  About 30 Peace Corps volunteers in Grenada teach remedial reading.  Some U.S. military training is given to Grenadian security and defense forces.Principal U.S. Embassy OfficialsAmbassador-designate--Jeanette W. HydePrincipal Officer--vacantThe U.S. embassy in Grenada is located on Maurice Bishop Highway, Point Salines, St. George's, Grenada (tel:  [phone]; fax:  [phone]).  The mailing address is P.O. Box 54, St. George's, Grenada, West Indies. (###)</text>
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        <text>US DEPARTMENT OF STATE BACKGROUND NOTES:  GREECE (CONTINUED)December 1990Official Name: Hellenic RepublicECONOMY    The Greek economy began modernizing in the late 19th and early 20th centuries with the adoption of social and industrial legislation and protective tariffs, along with the creation of the first industrial enterprises larger than artisan shops.  Industry at the turn of the century was based primarily on food processing, shipbuilding, textiles, and simple consumer products.  Greek economic progress was severely affected from the 1920s to the 1950s by an influx of refugees from Asia Minor, the global depression, Axis occupation, and civil war.  Recovery began in 1953 with a drastic currency devaluation and reduction in government spending which brought greater price stability and increased exports.  From 1955 to 1963, under Prime Minister Karamanlis, Greece's gross domestic product (GDP) almost doubled.  Greece achieved high rates of growth in the late 1960s and early 1970s, which also saw some major foreign investments in Greece.    Since the 1970s, however, Greece has suffered a decline in its rate of GDP growth of output, ratio of investment to GDP, and productivity of investment.  Between 1963 and 1988:    --  Real GDP growth fell from 10% to less than 4% per year;    --  Investment as a share of GDP fell from 27% to 16%; and    --  The productivity of investment (inverse of incremental capital output ratio) fell from an average of  0.36 to .08  in the 1980s.    There were several reasons for this.  Beginning in the mid-1970s, real labor costs and oil prices rose.  In 1981, falling protective barriers as Greece entered the European Community (EC) hurt company profitability and private investment.  Government policies also created structural supply-side problems which hampered development.  The government elected in 1981 at first pursued expansionary policies, which in the face of supply-side constraints, caused inflation and balance-of-payments problems rather than growth in output or employment.  Between 1980 and 1985:    --  Net public-sector borrowing requirement (PSBR) on a cash basis rose from 8% to 18% of GDP;    --  The current account deficit went from 5.5% to 10% of GDP; and    --  Inflation accelerated from an annual average of 13% percent during the 1970s to over 20% percent between 1981 and 1985.    Non-debt capital inflows also fell and external debt increased from 15% to 48% of GDP.  This economic performance compared poorly with the rest of the EC.    Growing public sector deficits were financed by direct borrowing.  This was either domestic, crowding out the private sector, or in foreign markets, adding to the country's debt position.  By mid-1985, the government was faced with rising inflation, a ballooning public sector deficit, and growing balance-of-payments problems.    Greece turned to the EC for help.  In October 1985, supported by an ECU 1.75 billion loan from the EC, the government implemented a 2-year "stabilization" program with limited success.  Incomes policy bore the brunt of the effort, and real wages fell by 13% in 1986-87.  PSBR was cut from 18% of GDP in 1985 to 13% in 1987.  Tighter monetary policy cut the growth of bank credit, pushed the public sector to borrow more from non-bank sources, and gradually established positive real interest rates on deposits and loans.  The current account deficit fell from $3.3 billion in 1985 to $1.2 billion in 1987, and non-debt capital inflows (plus the EC loan) almost entirely financed the deficit, halting the growth of external debt.    Inflation remained a problem, and GDP growth remained sluggish.  Inflation fell from 25% in 1985 to 16% in 1987, well above the target of 12%, and very high compared to EC norms.  Real GDP growth lagged and was less than 1% during 1986 and 1987.  Nonetheless, by December 1987, a good start had been made.  Profits, private investment, and non-debt capital inflows all increased; net external borrowing ceased; and real interest rates were positive.  External factors favored these improvements.     However, the good results did not last long, mainly because the program did not address underlying structural problems.  Public sector inefficiencies and excessive spending continued to strain the economy.  And, in 1988 the government relaxed incomes and financial policies.    The results were unfortunate.  Real wages grew by 5%,  twice the target rate.  PSBR hit 16 percent of GDP due to high public spending and revenue shortfalls.  Government borrowing was above target and, by the end of 1988, total public sector debt exceeded 100% of GDP.  The money supply grew by 23%, and the drachma appreciated in real terms as exchange rate policy was used to dampen inflation.  In the short term, this expansionary policy brought growth.  Domestic demand soared and real GDP grew by 4.3%.  Total investment increased by 9.3% in real terms, with public investment up 1.6% and private  by 12% (although investment was low by historical standards).    But over the longer term, the economy was to suffer significantly.  Strong inflationary pressures remained during 1988.  Unit labor costs rose more than the GDP deflator, eroding profit margins.  Based on relative labor costs, the drachma appreciated by 8.5%, hurting competitiveness.  The current account deficit fell to 2% of GDP between 1987 and 1988, but this improvement was due entirely to lower world oil prices.  The non-oil trade deficit as a percentage of GDP reverted to its pre-1985 peak, and the current account deficit, excluding oil, widened by 0.6% of GDP.    Greece continues to rely on foreign borrowing to finance its balance-of-payments deficit.  Total external debt was $21.5 billion by the end of 1989, and may top $23.5 billion by the end of 1990.  This is 40% and 42% of GDP respectively.  Greece faces a heavy repayment burden over the next 5 years.    The decrease in consumption caused by the stabilization program limited the rate of economic growth to 1.4% in 1986.  In order to encourage third country investment, the Bank of Greece in July 1986 significantly liberalized repatriation regulations for dividends and profits for all new investment in "productive" activities made by US and other non-EC investors.  However, EC investors still receive more favorable treatment.     The Greek economy is characterized by a strong services sector (56% of GDP) and a relatively large, inefficient agricultural sector (12% of GDP) which represents 26% of the labor force.  Principal agricultural products are olive oil, fruits and vegetables, cereals, tobacco, and wines.  Agricultural output increased by 1.5% in 1989 but is expected to decline in 1990 due to adverse weather conditions.  The manufacturing, mining, electricity, and construction sector (30% of GDP) represents 20% of the labor force and accounts for 45% of Greece's exports-primarily textiles, cement, basic metals, petrochemicals and pharmaceuticals.  Manufacturing output rose by 2% in 1989, and is expected to show a small increase in 1990.  Construction registered a 10% increase in 1990.  About half of the labor force is self-employed.EC Membership    Greece is being forced to gradually align itself with EC economic and commercial practices during an extended transition period that began in 1981 following an 18-year period of associate membership.  Greece has been granted derogations from certain aspects of the 1992 single-market program, which means delays in full liberalization until at least 1995.    EC membership is affecting all aspects of the Greek economy.  Small Greek businesses will have to adjust to the strong competition of large EC firms, while the government will need to liberalize its economic and commercial practices.  Also, the Greek agricultural sector has had to adjust to the lower intervention price set by the EC for Mediterranean products.  Overall, however, Greece has been a net beneficiary of the EC budget.  Net payments to Greece increased from $550 million by the end of 1982 to $1.4 billion in 1986 and to a $2.5 billion in 1989.  The European Investment Bank has provided development financing of approximately $300 million annually.  Together, these funds contribute significantly to Greece's current account balance, reduce the state budget deficit, and provide resources for investment-primarily in the public sector.    The EC's integrated Mediterranean programs (IMP), announced in 1985, in part to meet Greek objections to the entry of Spain and Portugal into the EC, will increase the flow of development funds to less developed regions of the community, including approximately $1.4 billion in grants for Greece over 7 years.  Currently, Greece cannot fully draw on available EC structural funds, which require matching, because of a shortage of public funds.Energy Petroleum is Greece's largest single import.  Based on import statistics for the last 5 years (1984-89), Greece imports an average of about 10 million tons of crude oil per year.    About 75% of imported crude is processed by the two state-owned refineries:  Aspropyrgos and EKO, and the remaining 25% by the 2 privately owned refineries:  Motoroil and Petrola (mainly export-oriented).  The 4 Greek refineries produced about 16 million tons of petroleum products in 1988, of which about 2 million tons were exported.    Greece's main suppliers of crude are Saudi Arabia, Libya, the Soviet Union, and Kuwait.  Greece began pumping oil from a modest oil field off the island of Thassos in the northern Aegean Sea in 1981 and is exploring and developing oil reserves found in the Ionian Sea.  In 1988, Greece produced 1 billion tons of crude oil from its own fields.    Agreements on future purchases of natural gas are being negotiated with the Soviet Union and Algeria.  The Soviet natural gas project will require the construction of a pipeline to be completed in 10 years at a cost of about $1 billion.  Algerian liquefied natural gas could be used in the Athens region by 1992.  Greece also plans to expand its use of hydroelectric power and lignite burning in power plants.  Lignite, a soft, coal-like fuel widely available in Greece, provides about three-quarters of the country's electricity.Tourism     Tourism is a major source of foreign exchange earnings.  More than 8.4 million tourists visited Greece in 1989, injecting more than $2 billion into the Greek economy.  US tourists (315,000 in 1989) covered about 4% of total tourist arrivals.  Although US tourism increased in the last 3 years, it is still far behind the 1979 levels (600,000 arrivals from the US).Commerce    Greece's location, maritime tradition, proximity to the Middle East and continuing unrest in that area have attracted regional marketing offices to Athens.  The Greek government provides incentives to foreign enterprises conducting business exclusively outside of Greece (so-called "Law 89 companies").  Greece remains a net importer, in part because of its petroleum needs, but exports are significant, constituting about 11.5% of GNP.  In 1989, Greece imported $15 billion worth of goods, while it exported $6 billion.  Leading exports were textiles, metal products, cement, chemicals, petroleum products  and  pharmaceuticals.    More than 60% of Greece's trade is with other EC countries.  EC membership has obliged Greece to eliminate or adjust many of its tariffs and quotas, making Greek businesses compete more directly with their EC counterparts.    The Middle East (including North Africa) is an important trading partner for Greece, due to Greece's reliance on foreign petroleum.  In 1986 14% of its imports came from Middle Eastern oil-producing nations which purchased 11.7% of Greek exports.  Greek firms continue to be involved in major projects in the Middle East.  However, depressed oil prices have reduced Greece's exports to the Middle East.    In 1989, the United States supplied about 4% of Greece's non-military imports, led by machinery and transport equipment, coal, tobacco, corn, soybeans, fur skins, and iron and steel scrap, and purchased about 6% of its exports, with tobacco, petroleum products, antiques, iron and steel products, and fur apparel the major items.Shipping Greece is traditionally a seafaring nation and has built a successful shipping industry due to its geographic location and the entrepreneurial ability of its shipowners.    In the 1980s, Greek shipowners began to abandon their national flag in favor of flags of convenience to cut costs and to avoid rigid government policies.  The Greek flag fleet shrank from 3,896 ships displacing 42.5 million gross tons in 1981 to 2,002 ships and 20.6 million gross tons in February 1990.  The Greek fleet thus dropped from first to fifth in the world league table.    Greek shipping does not play a central role in the domestic economy in that it trades internationally and is only marginally taxed on ship size and not on income generated.  Nonetheless, it provides employment, and brings in invisible earnings which help Greece's balance-of-payments problems.    Greece's membership gives the EC 15% of the world's tonnage.  The Greek fleet is the largest in the EC, with a third of the community's vessels and about 5% of the world's total tonnage.FOREIGN RELATIONS    In addition to belonging to the European Economic Community, Greece is a member of NATO and, thus is a defense partner of the United States.  Historically, Greece's foreign policy has focused on the eastern Mediterranean, particularly relations with Turkey, Cyprus, and the Balkans.  Greece, Turkey, and Cyprus     The 1974 coup against Cypriot President Makarios, inspired by the Greek military junta in Athens, and the subsequent Turkish military intervention in Cyprus, led to the junta's downfall, the creation of a large Cypriot refugee population, and a divided island.  The Greek Cypriot community elects  the government of the Republic of Cyprus, which is recognized by most other countries; only Turkey recognizes the regime in the Turkish-occupied territory north of the UN-controlled buffer zone.    The UN Secretary General has a mandate from the Security Council to use his "good offices" to help the Greek and Turkish Cypriot communities reach a mutually beneficial negotiated settlement to the Cyprus problem.      The Republic of Cyprus has received strong support from Greece in international fora.  Greece has a military contingent on Cyprus, and Greek officers fill some key positions in the  Greek Cypriot national guard.  Greece and Turkey enjoyed good relations in the 1930s, but relations began to deteriorate in the late 1950s, sparked by the Cyprus independence struggle.  Other issues dividing Greece and Turkey center on the Aegean, involving delineation of the continental shelf, territorial waters, territorial airspace, air traffic control, NATO command and control arrangements, and military forces in the area.  Greek and Turkish officials held meetings in the 1970s to discuss differences on Aegean questions, but Greece discontinued these discussions in the fall of 1981.  In 1983, Greece and Turkey held talks on trade and tourism, but these were suspended by Greece when Turkey recognized the Turkish-Cypriot declaration of independence of November 15, 1983.  After a dangerous dispute in the Aegean in March 1987 concerning oil-drilling rights, the prime ministers of Greece and Turkey exchanged messages exploring the possibility of resolving the dispute over the continental shelf.  Greece argues for an International Court of Justice decision.  Turkey proposes bilateral political discussions.  In early 1988 the Turkish and Greek prime ministers met at Davos in Switzerland and later in Brussels and agreed on various measures to reduce bilateral tensions and encourage cooperation.  The Mitsotakis government has initiated a revitalization of the Greek-Turkish dialogue.Central and Eastern Europe     Greece maintains full diplomatic, political, and economic relations with its eastern European neighbors.  Efforts to promote multilateral Balkan cooperation and understanding began in the mid-1970s, and the Papandreou government supported a Balkan nuclear-free zone in these talks.  Greece generally has had good relations with Yugoslavia since the early 1950s.  Diplomatic relations with Bulgaria were restored in 1965, after a 24-year break, when Bulgaria renounced its claim to Greek Thrace and Macedonia, an obstacle to Greek-Bulgarian cooperation since World War I.  Diplomatic relations were restored with Albania in 1971, but the Greek government did not lift the declared state of war with Albania until September 1987.  In early 1990, relations between Greece and Albania were strained by reports of mistreatment of the ethnic Greek minority in Albania and an incident in which Albanian police reportedly entered the Greek embassy in Tirana and forcibly  removed an asylum seeker.    Greek governments in recent years have pursued improvements in Greek-Soviet relations.  Soviet Prime Minister Tikhonov's 1983 visit to Greece reciprocated an official visit by then Prime Minister Karamanlis to Moscow in 1979.  Prime Minister Papandreou visited the Soviet Union in February 1985, but a reciprocal visit by Soviet President Gorbachev has yet to take place.  Trade with Central and Eastern Europe and the Soviet Union accounted for about 4.3% of Greek exports and 5% of its imports in 1989.  The Tikhonov visit concluded with the signing of a 10-year economic and technical cooperation agreement, including  Soviet assistance in financing and building a $500 million alumina plant in Greece.  The Soviet Union will purchase the plant's entire planned annual production of 600,000 tons for a period of 10 years.  The plant is scheduled to be in operation by 1992.  In June 1987 the Soviet Union and Greece agreed in principle to the construction of a $1 billion gas pipeline through which the Soviets would supply 80% of Greece's natural gas needs.  The two countries also signed a shipping protocol agreement in May 1987.Middle East Policy     Greece has a special interest in the Middle East because of its geographic position and its economic and historic ties to the area.  Greece maintained relations with Israel at a level just below that of  full diplomatic representation since 1948, until May 1990, when full recognition was extended.  In December 1981, the Greek government raised the status of the office of the Palestine Liberation Organization (PLO) in Athens to a similar level.  Greece cooperated with the United States  and other countries in the PLO evacuation from Beirut in 1982 and from Tripoli in 1983.DEFENSE     The Greek armed forces number about 185,000 active duty personnel, of which 142,000 serve in the army, 19,500 in the navy, and 23,500 in the air force.  The army includes 1 armored division, 1 mechanized division, 11 infantry divisions, 1 parachute/commando division, and a variety of smaller specialized formations.  The navy has 10 submarines, 14 destroyers, 7 frigates, 27 fast attack craft, and other vessels.  There are almost 300 combat aircraft in the air force.  All Greek males must serve approximately 2 years of military service, depending on the branch.    The United States has had 4 major and 12 secondary defense facilities in Greece which serve important missions, including strategic airlift, training, naval support for the US Sixth Fleet, reconnaissance, storage of reserve materials, and communications.  Some 3,700 US servicemen are stationed at these facilities, primarily at Hellenikon Air Base in Athens, the Nea Makri Communications Station at Marathon, and Souda Air Base and the Iraklion Communications Station on the island of Crete.  As part of a worldwide structural readjustment, in early 1990 the US announced plans to withdraw from Nea Makri in 1990 and to close Hellenikon in 1991.    Greece joined NATO in 1952.  Bordering on the Warsaw Pact and strategically located along the air and the sea lanes of the eastern Mediterranean, Greece plays a key role in the defense of the alliance's southern flank.  Following the 1974 Cyprus crisis, the Greek government, in protest, withdrew from NATO's military wing but remained a member of the alliance.  In October 1980, an arrangement with NATO provided for Greece's reentry into the alliance's military structure.  Nevertheless, Greek-Turkish differences led Athens to withdraw from NATO exercises in the Aegean.US-GREEK RELATIONS    The United States and Greece have longstanding historical, political, and cultural ties based on a common heritage and shared values.  Following World War II, when Greece was threatened by the communist-led civil war, the United States proclaimed the Truman doctrine and began a period of substantial financial and military aid: more than $8.5 billion in economic and security assistance since 1946.  Economic programs were phased out by 1962, but military assistance has continued.  In FY 1987, Greece was the fifth largest recipient of US security assistance, receiving $343 million in foreign military sales credits.    Relations between the United States  and Greece were strained at times during the Papandreou/PASOK years.  As Prime Minister, however, Papandreou signed a new Defense and Economic Cooperation Agreement  with the United States in 1983 allowing for the continued operation of US bases in Greece and was negotiating toward a new one when talks were recessed in May 1989 for Greek elections.  Prime Minister Mitsotakis, shortly after taking office in April 1990, told parliament that his government would attach "particular importance to the normalization of relations with the United States."  He added that the conclusion of a new defense agreement would be mutually beneficial.  US-Greek negotiators signed a new mutual defense cooperation agreement in July.  This entered into force in November 1990. TRAVEL NOTES    Climate and clothing:  Lightweight clothing May-September; woolens October-April. Customs:  Greek visas are required of holders of official and diplomatic US passports, but not of visitors holding US tourist passports and intending to stay less than 2 months.  Visitors wishing to extend their stay must submit an application 20 days before the expiration of the 2-month period.  No special inoculations  are required, but health requirements change.  Travelers should check the latest information.    Telecommunications:  Telephone service within Athens is satisfactory, and calls to the US may be made easily.  Athens is 7 standard time zones ahead of the eastern US.    Transportation:  Streets and highways in Greece are hard-surfaced; smaller roads are sometimes rough and ungraded.  Tourists wishing to drive must have an international driver's license.  The international car insurance card is valid if Greece is listed on the card.  Intercity and local public transportation is adequate, inexpensive, and crowded at rush hours.  Taxis are numerous in Athens, but because they are relatively inexpensive they are difficult to find during rush hours.Principal US Officials     Ambassador-Michael G. Sotirhos    Deputy Chief of Mission-James A. Williams    Chief, Military Advisory Group-BG  Edmond Solymosy    Counselor for Political Affairs-Samuel C. Fromowitz     Counselor for Political Military Affairs-Laurel M. Shea    Counselor for Economic Affairs-J. Michael Cleverley    Counselor for Commercial Affairs-Jerry K. Mitchell    Counselor for Consular Affairs-Danny Root    Counselor for Administrative Affairs-Peter Flynn    Counselor for Public Affairs-Arthur Guiliano    Regional Security Officer-Art Manuel     Defense Attache-Stanley Kozlowski    Labor Affairs Officer-John L. Klekas    Consul General, Thessaloniki-Larry  C. Thompson    The US Embassy is located at:  91 Vasillisis Sophias Avenue, Athens 101 60 (tel. [phone]).  The Consulate General is at:  59 Leoforos Nikis (Nikis Avenue), Thessaloniki (tel. 266-121).         Published by the United States Department of State--Bureau of Public Affairs --Office of  Public Communication -- Washington, DC -- December 1990 -- Editor:  Peter A. Knecht.     Department of State Publication 8198.  Background Notes Series -- This material is in the public domain and may  be reprinted without permission; citation of this source is appreciated. For sale by the Superintendent of Documents, US Government Printing Office, Washington, DC  20402.(###)</text>
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        <text>US DEPARTMENT OF STATE BACKGROUND NOTES:  GREECEDecember 1990Official Name: Hellenic RepublicPROFILEGeography Area:  131,957 sq. km. (51,146 sq. mi.) including islands; roughly the size of Alabama.  Cities:  Capital-(greater) Athens (3 million).  Other cities-Thessaloniki (705,000), Patras (154,600), Iraklion (111,000).  Terrain:  Largely mountainous interior, with coastal plains; many islands.  Climate:  Temperate.People Nationality:  Noun and adjective-Greek(s). Population:  10 million (1990 est.).  Ethnic Groups:  Greek 98%, other 2%.  Religions:  Greek Orthodox 97%, Muslim 2%, Other 1%. Language:  Greek.  Education:  Years compulsory-9.  Literacy-men 96%, women 89%.  Health (1984):  Infant mortality rate-13.8/1,000.  Life expectancy-men 72 yrs., women 75 yrs.  Work force (1988):  Agriculture-29%. Industry-  27%. Services- 43%.GovernmentType:  Presidential parliamentary republic. Independence:  1827. Constitution:  June 1975, amended March 1986. Branches:  Executive-president (chief of state), elected May 1990 for 5 years; prime minister (head of government). Legislative-unicameral parliament (Vouli) elected April 1990; parliamentary system with 4 year (maximum) term.  Judicial- supreme court (Areios Pagos). Major Political parties:  New Democracy (ND), Panhellenic Socialist Movement (PASOK), Left Alliance (Synaspismos)-coalition of communist and leftist parties, principally the Communist Party of Greece (KKE) and the Greek Left (EAR).  Suffrage:  Universal, 18 and over. Administrative Subdivisions:  51 prefectures (nomi), 13 regional districts (periferiarchies). Central Government Budget (1988 projected): $25.3 billion. Defense (1988 projected): approximately 11% of central government budget, 5% of GDP.) Flag:  Four white and five blue alternating horizontal stripes, with a white cross on the upper staff  corner.Economy GDP:  $53.8 billion (1989). Annual Growth Rate: -0.5% (1987); 2.4% (1988); 2.3% (1989) Inflation (1989): 14.8%. Natural Resources:  bauxite, lignite, magnesite, oil. Agriculture (12.8% of GDP, 1989): Products:  grains, fruits (especially olives, olive oil, and raisins), vegetables, wine, tobacco, cotton, livestock, dairy products. Industry (including mining, electricity and construction): Manufactured goods (30% of GDP, 1989)-processed foods, shoes, textiles, metals, chemicals, electrical equipment, cement, glass, transport equipment, petroleum products, construction, electrical power; Services  (57% of GDP, 1989)-transportation, communications, trade, banking, public administration, defense. Trade: Exports (1989)-$6 billion:  textiles, metal products, cement, chemicals, pharmaceuticals. Major Markets (1988)-EC 64.2%, Middle East and North Africa 8.2%, USSR and Eastern Europe 4.3%, US 6.3%. Imports (1989)-$15 billion:  petroleum, machinery, transport equipment, chemicals, meat and animals. Major Suppliers (1988) - EC 65.5%, Middle East and North Africa 4.2%, USSR and  Eastern Europe 5.1%, US 4% (taken from Greek customs statistics, which exclude military equipment imports). Exchange Rate:  150 drachmas = $1 US (1990). US Economic and Security Assistance (1946-1989): $9.3 billion.Membership in International Organizations     UN, EC, NATO, OECD, INTELSAT, Council of Europe.PEOPLE    In ancient times Greece was a mosaic of ethnically similar small city-states.  During the migrations and invasions of the Byzantine and Ottoman periods (4th-19th centuries AD), Greece's ethnic composition lost its homogeneity.  Since independence (1827) and the exchange of populations with Turkey in 1923, however, Greece has reforged a national identity whose roots date back to the 13th century BC.  Greece's pride in these Hellenic roots is reflected in its official name, Hellas or the Hellenic Republic; the name "Greece" derives from the Latin name.  Greek society retains its traditional Mediterranean values of family, education, and personal honor (philotimo), despite the changes wrought by urbanization and industrialization.    From earliest times, Greeks have migrated across the country and across the Mediterranean, eventually creating Greek-speaking communities all over the globe.  Emigration has  been on such a scale that, by one count, there are more than 3 million people of Greek heritage in the United States alone.  Over the past two decades, however, migration within Greece from rural to urban centers has been more extensive than emigration abroad.  The 1961 census showed an urban population of 43% compared to a rural and semiurban population of 57%.  By 1971, the urban population had grown to 53% and by 1981 to 58%.  About one-third of Greece's total population lives in the greater Athens area.    Education is highly esteemed in Greece, not only because it transmits culture and knowledge but also because it contributes to social and cultural mobility.    Orthodox Christianity is the established religion.  The Greek Orthodox Church is self-governing under the spiritual guidance of the Ecumenical Patriarch, resident in Istanbul, Turkey.  During the centuries of Ottoman domination, the church preserved the Greek language, values, and national identity and became an important rallying point in the struggle for independence.  The church is under the protection and partial control of the state, which pays the clergy's salaries.    The Muslim minority, concentrated in western Thrace, was given legal status by provisions of the Treaty of Lausanne in 1923 and is Greece's only officially recognized minority .    The Greek language dates back at least 3,500 years, and modern Greek preserves many features of its classical predecessor.  In the 19th century, after Greece's war of independence, an effort to rid the language of Turkish and Arabic borrowings and to make it close again to the language of Homer's Odyssey and Iliad, led to a version known as Katharevousa.  However, this never became the everyday language of most Greeks, and in 1976, it was abolished as the language of high school instruction and of the government.  Today, spoken Greek is generally termed Demotiki; a more recent reform movement has given rise to Nea Demotiki, the version that is now considered standard Greek for everyday usage and for contemporary literature.HISTORY     The eastern Mediterranean is one of the "cradles of civilization."  Greece was inhabited as early as the Paleolithic period, and by BC 3000 had become home, in the Cycladic Islands, to a culture whose art remains evocative.  Early in the second millennium BC, the island of Crete nurtured the sophisticated maritime empire of the Minoans, evidence of whose trade stretches from Egypt to Sicily.  The Minoans were challenged and eventually supplanted by mainland Mycenaeans, who spoke a dialect of Greek.  Homer's Iliad and Odyssey, composed probably around BC 800, drew on memories of the Mycenaeans, whose civilization collapsed around BC 1100, shortly after the Trojan war.  This collapse left Greece, except the fortified citadel of Athens, open to migrating Dorian tribes from the north.    During the next few hundred years of political instability, the Greek polis or city-state came into existence.  The polis included the city and its surrounding territory, its institutions, its way of life, and the unique values of its citizens.  When the cities sent their excess population to found colonies around the eastern and western Mediterranean and in the Black Sea, the colonies remained linked to the mother city by common values and traditions.  Despite their differences and frequent conflicts, the separate city-states shared the epics of Homer and other poetry; the Olympic and other games; and the same mythology, religion, and language which unified the Greek world.  They were conscious of their common identity and called non-Greeks "barbarians."    Eventually two city-states emerged to dominate Greece-the Ionian city of Athens, a democracy and a sea power, and the Dorian city of Sparta, an oligarchy, a land power, and a militaristic society.  In the fifth century BC, Persian invasions united the cities briefly, mainly under the military leadership of Athens.  The subsequent "Golden Age" (BC 446-431) of Pericles, an Athenian leader, reflected an explosion of cultural and intellectual achievements which has had a profound influence on Western civilization.    The conflicting ambitions of Athens and Sparta led to the Peloponnesian wars (BC 431-404), which Athens lost.  The war caused suffering throughout Greece but did not immediately diminish Athenian cultural achievements.  A weakened Greece later fell under the domination of the Macedonians.  Alexander the Great, whose tutor was the great philosopher Aristotle, spread Greek culture as he marched east to conquer the world, but he also adopted much from the Persian Empire he defeated.  The fusion of Greek and Persian cultures created the Hellenistic civilization of Asia Minor, which later was an important influence in the culture of the Roman Empire and on Christianity and subsequent Western thought.    Rome conquered Greece in BC 146 and eventually ruled over the entire Hellenistic world.  As Rome's power declined, one of its emperors, Constantine, split the empire by establishing his Greek-speaking capital, later called Constantinople, at the site of the ancient Greek city of Byzantium in AD 330.    Although Rome was overrun by migrating tribes and the western part of the empire fragmented in the fifth century AD, the eastern part flourished as the Byzantine Empire.  Greek in language and culture, the empire was Roman in law and administration.  The people called themselves Romans and tended to set aside the ancient Greek culture because it was pagan.  Christianity was the official religion, and the empire was seen as ecumenical, embracing all Christians. By the 11th century, the Latin-speaking and the Greek-speaking churches split in the Great Schism, which still continues.  Attacks by fellow Christians during the Crusades and increasing pressure from Central Asian peoples weakened the Byzantine Empire.  It collapsed finally with the fall of Constantinople to the Ottoman Turks in 1453.  The patriarch of Constantinople (subsequently renamed Istanbul), the capital of the Ottoman Empire, then became both the head of the Orthodox Church and the temporal leader of all Greek and many Orthodox subjects of the Sultan.    The Greek war of independence began in 1821, and the country obtained independence in 1827.  Under the tutelage of England, France, and Russia, a monarchy was established with a Bavarian prince, Otto, named king in 1833.  He was deposed 30 years later, and the European powers chose a prince of the Danish House of Glucksberg as his successor.  He became George I, King of the Hellenes.    The Megali Idea (Great Idea), the vision of uniting all Greeks of the declining Ottoman Empire within the newly independent Greek State, exerted a strong influence on Greek political consciousness.  At independence, Greece had an area of 47,515 square kilometers (18,346 sq. mi.), and its northern boundary extended from the Gulf of Volos to the Gulf of Arta.  The Ionian Islands were added in 1864; Thessaly and part of Epirus in 1881; Macedonia, Crete, Epirus, and the Aegean Islands in 1913; western Thrace in 1918; and the Dodecanese Islands in 1947.    Greece entered World War I in 1917 on the side of the Allies and at the war's conclusion, took part in the Allied occupation of Turkey, where many Greeks still lived.  In 1922, the Greek army marched from its base in Smyrna, now Izmir, toward Ankara but was forced to withdraw.  At the end of the war with the exchange of populations, more than 1.3. million Greek refugees from Turkey poured into Greece, posing enormous problems for the Greek economy and society.    A continuing feature of Greek politics, particularly between the two World Wars, was the struggle for power between monarchists and republicans.  Greece was proclaimed a republic in 1924, but George II returned to the throne in 1935, and a plebiscite in 1946 reconfirmed the monarchy.  It was finally abolished by referendum on December 8, 1974, when, by a two-thirds vote, the Greeks supported the establishment of a republic.    Greece's entry into World War II was precipitated by the Italian invasion on October 28, 1940.  That date is celebrated in Greece by the remembrance of the one-word reply-ochi (no)-given by the prime minister to a series of demands made by Mussolini.  Despite Italian superiority in numbers and equipment, determined Greek defenders drove the invaders back into Albania.  Hitler was forced to divert German troops to protect his southern flank and attacked Greece in early April 1941.  By the end of May, the Germans had overrun most of the country, although Greek resistance was never entirely suppressed.  German forces withdrew in October 1944.    With the German withdrawal, the principal Greek resistance movement, which was controlled by the communists, sought to take control of the country and undertook a siege of the British forces in Athens during the winter of 1944-45.  When the siege was defeated, an unstable coalition government was formed.  Continuing tensions led to the dissolution of that government and the outbreak of Civil War in 1946.  First the United Kingdom, and later the United States, gave extensive military and economic aid to the Greek government.  Communist successes in 1947-48 enabled them to move freely over much of mainland Greece, but with extensive reorganization and American material support, the Greek national army under Marshal Papagos eventually was able to gain ascendancy.  Yugoslavia closed its borders to the insurgent forces in 1949 after Marshal Tito of Yugoslavia broke with Stalin and the Soviet Union.  Hostilities ceased in the fall of 1949 with some 80,000 Greeks killed.  Twenty-five thousand more were either voluntarily or forcibly evacuated by the Greek communists to Eastern Bloc countries, and there were 700,000 refugees.    Greece sought, after the Civil War, to join the Western democratic alliance.  In 1952, Greece joined the North Atlantic Treaty Organization (NATO).  From 1952 to late 1963, Greece was governed by conservative parties (The Greek Rally of Marshal Papagos and its successor, the National Radical Union (ERE) of Constantine Karamanlis).  In 1963, the Center Union Party of George Papandreou won the election and governed until July 1965.  It was followed by a succession of unstable coalition governments.    On April 21, 1967,  just before scheduled elections, a group of colonels led by  Col. George Papadopoulos seized power.  Civil liberties were suppressed, special military courts established, and political parties dissolved.  Several thousand opponents were imprisoned or exiled to remote Greek islands.  Papadopoulos' associate, Gen. Dimitrios Ioannides, took power in November 1973.  Ioannides' decision in July 1974 to attempt to overthrow Archbishop Makarios, the President of Cyprus, and install a client regime on Cyprus brought Greece to the brink of war with Turkey, which, in response to the coup, militarily intervened and occupied almost 40 percent of the island.      Senior Greek military officers then withdrew their support from the junta.  Leading citizens persuaded Karamanlis to return from exile in France to establish a government of national unity until elections could be held.  Karamanlis' newly organized party, New Democracy (ND), won elections held in November 1974, and he became prime minister.    Following the 1974 referendum which resulted in the rejection of the monarchy, a new constitution was approved by parliament on June 19, 1975, and parliament elected Constantine Tsatsos President of the Republic.  In the parliamentary elections of 1977, New Democracy again won a majority of  seats.  In May 1980, Prime Minister Karamanlis was elected to succeed Tsatsos as president.  George Rallis was then chosen party leader and succeeded Karamanlis as prime minister.    In  January 1981, Greece became the 10th member of the European Community.  In parliamentary elections, held in October 1981, Greece elected its first socialist government when the Panhellenic Socialist Party (PASOK), led by Andreas Papandreou, won 172 of 300 seats with 48% of the popular vote.    On March 9, 1985, Prime Minister Papandreou announced that PASOK would not support President Karamanlis for a second term and nominated Supreme Court Justice Christos Sartzetakis.  On March 29, 1985, Sartzetakis was elected President by the Greek Parliament, receiving the minimum 180 votes required on the third ballot.    Greece witnessed two rounds of parliamentary elections in 1989.  In June, New Democracy won 146 of the 300 seats - not enough to form a government.  The centrist-conservative party joined forces with the newly-formed coalition of communist and leftist parties called the Left Alliance to form an interim coalition government under Prime Minister Tzannis Tzannetakis (ND).  The Tzannetakis government's mandate was limited to a program of national "catharsis," or cleansing.  The focus was parliamentary investigations into crimes allegedly committed by ministers of the previous government, including former Prime Minister Papandreou, himself.  Following months of hearings, parliament voted to lift the parliamentary immunity of most of the ministers incriminated, including Papandreou, and the Tzannetakis government resigned, turning the country over to an interim government in preparation for new Parliamentary elections in November.    The November elections were, if anything,  even more inconclusive, with ND and PASOK (with Papandreou at the helm) both picking up additional seats at the expense of the Left Alliance.  This time ND won 46% of the vote but still came up three seats short of a parliamentary majority.  The stalemate led to the formation of a short-term, all-party coalition government tasked with addressing the growing crisis in the Greek economy under Prime Minister Xenophon Zolotas, an internationally-respected economist.  The pressures of economic reform proved too much for the fragile coalition; the party leaders withdrew their support in February 1990, and elections were held on April 8.    New Democracy won 150 seats in the April 1990 election.  With the cooperation of the single deputy elected from the centrist DIANA party, a New Democracy government headed by ND leader Constantine Mitsotakis won a vote of confidence in Parliament.  The DIANA deputy subsequently  changed his  affiliation to ND,  and a special Greek electoral court awarded a contested seat originally claimed by PASOK to ND, bringing ND's total to 152 seats.  GOVERNMENT AND POLITICAL CONDITIONS     The 1975 constitution, which describes Greece as a "presidential parliamentary republic," is similar to the 1952 constitution but has more extensive and precise guarantees of civil liberties and vests the powers of the head of state in a president elected by parliament and advised by the Council of the Republic.    On balance, the Greek governmental structure is similar to that found in most Western European countries and has been described as a compromise between the French and German models.  As in most of Western Europe, the prime minister and parliament play central roles in the political process, but the Greek president also performs certain governmental functions in addition to ceremonial duties.  The extent of the president's influence in the political process depends to a large degree on personal qualities and leadership.    Presidential Powers Elected by parliament to a 5-year term, the president can be reelected once.  The president has the power to declare war and to conclude agreements of peace, alliance, and participation in international organizations; a three-fifths parliamentary majority is required to ratify such agreements or treaties.  The president can also exercise certain emergency powers, which must be countersigned by the appropriate minister.    On March 7, 1986, parliament amended 11 articles of the constitution, limiting many of the president's political powers.  The president may no longer dissolve parliament, dismiss the government, suspend certain articles of the constitution, or declare a state of siege.  To call a referendum, he must obtain approval from parliament.  Restricting presidential authority has given more power to the parliament and prime minister.  Prime Minister Papandreou's majority party (PASOK) supported the amendments.Parliament    Parliamentary deputies are elected by direct, secret ballot for a maximum of  4 years, but elections can be called earlier.    Greece uses a complex, reinforced proportional electoral system.  That system has discouraged splinter parties and made a parliamentary majority possible even if the leading party fell short of 51% of the popular vote.  However, the constitution makes it possible for Parliament to re-write the electoral law virtually at will.  Prior to the June 1989 elections, the PASOK-majority parliament wrote a new electoral law that took a big step toward simple proportional representation, giving more power to the smaller parties and making it more difficult for any one party to win a majority in Parliament. In November 1990, parliament revised the electoral law again, lowering the percentage of the popular vote needed to win an absolute majority in parliament.     Political Parties in the Greek Parliament (April 1990)     Party                Seats    New Democracy (ND        152    Panhellenic Socialist Party     (PASOK)                    124    Left Alliance                  21    Muslim Independent (GUVEN      2    Ecologists/Alternatives        1    Total                300Local Administration    Greece is divided into 51 prefectures (nomi), each headed by a prefect (nomarch) appointed by the minister of the interior; 13 regional governments (periferiarchis) were established in 1987, headed by regional governors (periferiarchs), appointed by the minister of the interior.  Although municipalities and villages have elected officials, they do not have an adequate independent tax base and must depend upon the central government for a large part of their financial needs and are subject to numerous central government controls.    Principal Government Officials     President  Constantine Karamanlis    Prime Minister  Constantine Mitsotakis     Foreign Minister  Andonis Samaras         Ambassador to the United States - Christos  Zacharakis         Ambassador to the United Nations -  Antonios Exarchos                Greece maintains an embassy in the United States at 2221 Massachusetts Avenue NW, Washington, DC 20008 [tel. [phone]].  There are consulates general in San Francisco, Chicago, and New York, and consulates in New Orleans, Boston, and Atlanta.</text>
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        <text>US DEPARTMENT OF STATE BACKGROUND NOTES:  GHANA (CONTINUED)FEBRUARY 1990OFFICIAL NAME:  REPUBLIC OF GHANAFOREIGN RELATIONS    Ghana is active in the United Nations and many of its specialized agencies, the Nonaligned Movement, the Organization of African Unity (OAU), and the Economic Community of West African States.  Generally, it follows the consensus of the Nonaligned Movement and the OAU on economic and political issues not directly affecting its own interests.  Ghana frequently has contributed troops to UN peacekeeping activities, including the UN Interim Force in Lebanon and the UN Good Offices Mission in Afghanistan and Pakistan.  The PNDC professes revolutionary ties with Cuba, Libya, and other "progressive" nonaligned governments and has been critical of the "neocolonial" Western international economic system.  At the same time, the PNDC desires friendly relations with all states, regardless of ideology.U.S.-GHANAIAN RELATIONS    The United States has enjoyed good relations with Ghana at the nonofficial, personal level since Ghana's independence.  Thousands of Ghanaians have been educated in the United States.  Close relations are maintained between educational and scientific institutions, and cultural links, particularly between Ghanaians and Afro-Americans, are strong.    U.S.-Ghanaian official relations, however, have been strained.  On several occasions since it came to power on December 31, 1981, the PNDC has voiced suspicions that the United States opposed its revolution and was sympathetic to various Ghanaian opposition movements.  Such baseless allegations have been given wide circulation, especially by the government-controlled media.  On March 31, 1983, a leading official of the PNDC made false public accusations; the United States responded by freezing development aid.  After a meeting with Chairman Rawlings on October 19, 1983, the U.S. Ambassador acknowledged that relations had improved and announced the partial resumption of development aid.  Complete resumption occurred in July 1984.  In 1985, bilateral relations reached another low point following various Ghanaian allegations against the United States.    Currently, both sides are working to improve bilateral relations.  Since September 1984 the United States has supported Ghana's Economic Recovery Program.  In addition, the United States has participated in meetings in Paris of the consultative group on Ghana, the most recent of which was held on February 28 and March 1, 1989.  Donor countries and institutions pledged more than $900 million in aid for 1989.     The United States usually is among Ghana's principal trading partners. The American privately owned VALCO aluminum smelter imports much of its supplies from, and exports almost all the aluminum ingots to, the United States.  Due to Ghana's economic crisis and the 18-month, drought-induced closure of the smelter, bilateral trade contracted sharply during the early 1980s.  By 1986, however, more than half the loss had been recovered, with U.S. exports to Ghana reaching $84 million that year, and imports from Ghana totaling $201 million.    With a replacement value of more than $500 million, U.S. investments in Ghana form one of the largest stocks of foreign capital.  VALCO (90% owned by Kaiser, and 10% by Reynolds) is by far the biggest investment, but other important U.S. companies operating in the country include Mobil, S.C. Johnson, Ralston Purina, Star-Kist, A.H. Robins, Sterling, Pfizer, IBM, and National Cash Register (NCR).  Several U.S. firms recently made or are considering investments in Ghana, primarily in gold mining, wood products, and petroleum; in mid-1987, AMOCO concluded an oil exploration agreement.    U.S. economic assistance to Ghana in fiscal year 1989 totaled $21 million in new commitments, which included $6.5 million in nonproject assistance for the agricultural sector, $1.5 million in project assistance for health and human resources development, $6 million in food aid under the P.L. 480 Title I program, and $7 million in project food commodities under PL 480 Title II.  The Peace Corps program in Ghana is the oldest in the world.  Currently, there are some 100 volunteers in Ghana.  More than half work in education, and the others in various fields such as agriculture, rural development, fisheries, and women in development. Principal U.S. OfficialsAmbassador-Raymond C. EwingDeputy Chief of Mission-John C. HolzmanPolitical Counselor-John L. BerntsenEconomic Officer-Martha KelleyConsular Officer-Richard GonzalezDirector, AID Mission-F. Gary Towery Public Affairs Officer-Daniel McGaffieDirector, Peace Corps-James Lassiter    The U.S. Embassy is on Ring Road East, near Danquah Circle, Accra (tel. [phone]).  The mailing address is P.O. Box 194, Accra, Ghana.FURTHER INFORMATION:      These titles are provided as a general indication of material published on this country.  The Department of State does not endorse unofficial publications.    Agyeman-Bado, Yaw and Osei-Hwedie, Kwaku.  The Political Economy of Instability: Colonial Legacy, Inequality and Instability in Ghana.  Lawrenceville, Virginia: Brunswick Press, 1982.    Amonoo, Ben.  Ghana, 1957-1966: The Politics of Institutional Dualism.  London and Boston: Allen & Unwin, 1981.     Austin, Dennis and Luckham, Robin, eds.  Politicians and Soldiers in Ghana.  London: Cass, 1976.    Davidson, Basil.  Ghana: An African Portrait.  New York: Aperture Press, 1976    Gray, Paul S.  Unions and Leaders in Ghana: Model of Labor and Development.  Owerri, New York: Conch Magazine, Ltd., 1980.    Harris, Elizabeth.  Ghana, a Travel Guide.    Flushing, New York: Aburi Press, 1977.    Kennedy, Paul T.  Ghanaian Businessmen: From Artisan to Capitalist Entrepreneur in a Dependent Economy.  Munchen: Weltforum Verlag, 1980.    Killick, Tony.  Development Economics in Action: A Study of Economic Policies in Ghana.  London: Heinemann Educational Books, Ltd., 1978.    Levine, Victor T.  Political Corruption: The Case of Ghana.  Stanford: Hoover Institution Press, 1975.    Mahoney, Richard D.  JFK: Ordeal in Africa.  New York: Oxford University Press, 1983.    McFarland, Daniel M.  Historical Dictionary of Ghana.  Metuchen, New Jersey: Scarecrow, 1985.    Nkrumah, Kwame.  Autobiography.  New York: Nelson, 1957.    Owusu, Maxwell.  The Uses and Abuses of Political Power.  Chicago: University of Chicago Press, 1970.Pinkney, Robert.  Ghana Under Military Rule, 1966-1969.  London: Methuen, 1972.    Thompson, W. Scott.  Ghana's Foreign Policy, 1957-66: Diplomacy, Ideology and The New State.  Princeton: Princeton University Press, 1969.    U.S. Department of State.  Ghana Post Report.  September 1988.    Wright, Richard.  Black Power: A Record of Reactions in a Land of Pathos.  New York: Harper, 1954.    Young, Crawford, et al.  Cooperatives and Development: Agricultural Politics in Ghana and Uganda.  Madison: University of Wisconsin Press, 1981.    Available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402: American University.  Area Handbook for Ghana.  1983.TRAVEL NOTES:    Climate and clothing:  Accra's temperature varies between 24 oC and 37 oC (76 oF- 98 oF).  Humidity is highest at dawn and falls each day from 93.5% to 66%.  Bring hot weather clothes and an umbrella for the rainy seasons.     Health:  Do not eat raw fruits and vegetables or undercooked meats.  Tap water is not potable.  Do not swim in freshwater streams or lagoons, which may be infected with bilharzia.    Telecommunications:  International communications from Ghana are inadequate, and the visitor may experience difficulties and delays in placing an international call.    Tourist attractions:  Points of interest in and around Accra include the National Museum, Aburi Botanical Gardens, Black Star Square, the Arts Council Handicraft Center, and the burial place of W.E.B. DuBois.  Kumasi is the capital of the Ashanti Region.  The area is rich in traditional Ghanaian crafts such as weaving, woodcarving, and bronze work.  Places of interest include the National Cultural Center, the zoo, and Manhyia Palace (home of the Ashanti chief).Published by the United States Department of State --  Bureau of Public Affairs  -- Office of  Public Communication --  Washington, D.C.February 1990 -- Editor: Juanita Adams    Department of State Publication 8089 -- Background Notes Series  -- This material is in the public domain and may  be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C.  20402.(###)</text>
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        <text>US DEPARTMENT OF STATE BACKGROUND NOTES:  GHANAFEBRUARY 1990OFFICIAL NAME:  REPUBLIC OF GHANAPROFILEGeographyArea: 238,538 sq. km. (92,100 sq. mi.); about the size of Illinois and Indiana combined. Cities: Capital-Accra (pop. 953,500). Other cities-Kumasi (399,300), Tema (180,600), Sekondi-Takoradi (116,500). Terrain: Plains and scrubland, rain forest, savanna. Climate: Tropical.PeopleNationality: Noun and adjective-Ghanaian(s). Population (1989): 14.8 million. Density: 62/sq. km. (160/sq. mi.). Annual growth rate (1989): 2.9%. Ethnic groups: Akan, Ewe, Ga. Religions: Christian 42%, indigenous beliefs 38%, Muslim 12%, other 7%. Languages: English (official), Akan 44%, Mole-Dagbani 16% Ewe 13%, Ga-Adangbe 8%. Education: Years compulsory-9. Literacy-30%. Health: Infant mortality rate-(1989) 68/1,000. Life expectancy-55 yrs. Work force: 3.7 million: Agriculture and fishing-54.7%. Industry-18.7%. Sales and clerical-15.2%. Other-11.4%.GovernmentType: Authoritarian. Independence: March 6, 1957.Constitution: None; Provisional National Defense Council (PNDC) Proclamation, December 31, 1981, and PNDC Law 42 (1982). Branches: PNDC, with a chairman and eight members, has all powers of government.Subdivisions: 10 regions.Political parties: None. Suffrage: Universal at 18.Flag: Three horizontal stripes of red, gold, and green, with a black star in the center of the gold stripe.EconomyGDP (1987): $5.05 billion. Real GDP growth rate (1987): 4.5%. Per capita GDP (1987): $350. Inflation rate (1986): 25%.Natural resources: Gold, timber, diamonds, bauxite, manganese, fish.Agriculture: Products-cocoa, coconuts, coffee, food crops, rubber. Land-70% arable and forested.Industry: Types-mining, lumber, light manufacturing, fishing, aluminum.Trade (1987): Exports-$787 million: cocoa ($503 million), aluminum, gold, timber, diamonds, manganese. Imports-$763 million: petroleum ($123 million), food, industrial raw materials, machinery, equipment. Major trade partners-U.K., F.R.G., U.S., Nigeria.Official exchange rate (March 1988): 230 cedis=U.S.$1.Fiscal year: Calendar year.Membership in International Organizations    UN and some of its specialized and related agencies, Organization of African Unity (OAU), Nonaligned Movement, Economic Community of West African States (ECOWAS), Commonwealth.GEOGRAPHY    Ghana is located on West Africa's Gulf of Guinea only a few degrees north of the Equator.  Half of the country lies less than 152 meters (500 ft.) above sea level, and the highest point is 883 meters (2,900 ft.).  The 537-kilometer (334-mi.) coastline is mostly a low, sandy shore backed by plains and scrub and intersected by several rivers and streams, most of which are navigable only by canoe.  A tropical rain forest belt, broken by heavily forested hills and many streams and rivers, extends northward from the shore, near the Cote d'Ivoire frontier.  This area, known as the "Ashanti," produces most of the country's cocoa, minerals, and timber.  North of this belt, the country varies from 91 to 396 meters (300-1,300 ft.) above sea level and is covered by low bush, parklike savanna, and grassy plains.    The climate is tropical.  The eastern coastal belt is warm and comparatively dry; the southwest corner, hot and humid; and the north, hot and dry.  There are two distinct rainy seasons in the south-May-June and August-September; in the north, the rainy seasons tend to merge.  A dry, northeasterly wind, the Harmattan, blows in January and February.  Annual rainfall in the coastal zone averages 83 centimeters (33 in.).    The manmade Volta Lake extends from the Akosombo Dam in southeastern Ghana to the town of Yapei, 520 kilometers (325 mi.) to the north.  The lake generates electricity, provides inland transportation, and is a potentially valuable resource for irrigation and fish farming.PEOPLE    Ghana's population is concentrated along the coast, in the northern areas near the Cote d'Ivoire, and in the principal cities of Accra and Kumasi.    Most Ghanaians descended from migrating tribes that probably came down the Volta River valley at the beginning of the 13th century.  Ethnically, Ghana is divided into small groups speaking more than 50 languages and dialects. Among the more important linguistic groups are the Akans, which include the Fantis along the coast and the Ashantis in the forest region north of the coast; the Guans, on the plains of the Volta River; the Ga- and Ewe-speaking peoples of the south and southeast; and the Moshi-Dagomba-speaking tribes of the northern and upper regions.    English, the official and commercial language, is taught in all the schools.  About 30% of the general population is literate in English, although the rate is much higher among the young.    Primary- and middle-school education is tuition-free and will be mandatory when enough teachers and facilities are available to accommodate all the students.  Students begin their 6-year primary education at age six.  Under educational reforms implemented in 1987, they pass into a new junior secondary school system for 3 years of academic training combined with technical and vocational training.  Those continuing move into the 3-year senior secondary school program.  Entrance to universities is by examination following completion of senior secondary school.  School enrollment totals almost 2 million:  1.3 million primary; 107,600 secondary; 489,000 middle; 21,280 technical; 11,300 teacher training; and 5,600 university.HISTORY    The history of the Gold Coast before the last quarter of the 15th century is derived primarily from oral tradition that refers to migrations from the ancient kingdoms of the western Soudan (the area of Mauritania and Mali).  The Gold Coast was renamed Ghana upon independence in 1957 because of indications that present-day inhabitants descended from migrants who moved south from the ancient kingdom of Ghana.    The first contact between Europe and the Gold Coast dates from 1470, when a party of Portuguese landed.  In 1482, the Portuguese built Elmina Castle as a permanent trading base. The first recorded English trading voyage to the coast was made by Thomas Windham in 1553. During the next three centuries, the English, Danes, Dutch, Germans, and Portuguese controlled various parts of the coastal areas.    In 1821, the British Government took control of the British trading forts on the Gold Coast.  In 1844, Fanti chiefs in the area signed an agreement with the British that became the legal steppingstone to colonial status for the coastal area.    From 1826 to 1900, the British fought a series of campaigns against the Ashantis, whose kingdom was located inland.  In 1902, they succeeded in colonizing the Ashanti region and making the northern territories a protectorate.  British Togoland, the fourth territorial element eventually to form the nation, was part of a former German colony administered by the United Kingdom from Accra as a League of Nations mandate after 1922.  In December 1946, British Togoland became a UN Trust Territory, and in 1957, following a 1956 plebiscite, the United Nations agreed that the territory would become part of Ghana when the Gold Coast achieved independence.    The four territorial divisions were administered separately until 1946, when the British Government ruled them as a single unit.  In 1951, a constitution was promulgated that called for a greatly enlarged legislature composed principally of members elected by popular vote directly or indirectly.  An executive council was responsible for formulating policy, with most African members drawn from the legislature and including three ex officio members appointed by the governor.    A new constitution, approved on April 29, 1954, established a cabinet comprising African ministers drawn from an all-African legislature chosen by direct election.  In the elections that followed, the Convention People's Party (CPP), led by Kwame Nkrumah, won the majority of seats in the new Legislative Assembly.    In May 1956, Prime Minister Nkrumah's Gold Coast government issued a white paper containing proposals for Gold Coast independence.  The British Government stated it would agree to a firm date for independence if a reasonable majority for such a step were obtained in the Gold Coast Legislative Assembly after a general election.  This election, held in 1956, returned the CPP to power with 71 of the 104 seats in the Legislative Assembly.  Ghana became an independent state on March 6, 1957, when the United Kingdom relinquished its control over the Colony of the Gold Coast and Ashanti, the Northern Territories Protectorate, and British Togoland.    In subsequent reorganizations, the country was divided into 10 regions, which currently are subdivided into 110 districts.  The original Gold Coast Colony now comprises the Western, Central, Eastern, and Greater Accra Regions, with a small portion at the mouth of the Volta River assigned to the Volta Region; the Ashanti area was divided into the Ashanti and Brong-Ahafo Regions; the Northern Territories into the Northern, Upper East, and Upper West Regions; and British Togoland essentially is the same area as the Volta Region.Post-Independence Politics    After independence, the CPP government under Nkrumah sought to develop Ghana as a modern, semi-industrialized, unitary socialist state.  The government emphasized political and economic organization, endeavoring to increase stability and productivity through labor, youth, farmers, cooperatives, and other organizations integrated with the CPP.  The government, according to Nkrumah, acted only as "the agent of the CPP" in seeking to accomplish these goals.    The CPP's control was challenged and criticized, and  Prime Minister Nkrumah used the Preventive Detention Act (1958), which provided for detention without trial for up to 5 years (later extended to 10 years).  On July 1, 1960, a new constitution was adopted, changing Ghana from a parliamentary system with a prime minister to a republican form of government headed by a powerful president.  In August 1960, Nkrumah was given authority to scrutinize newspapers and other publications before publication.  This political evolution continued into early 1964, when a constitutional referendum changed the country to a one-party state.    On February 24, 1966, the Ghanaian Army and police overthrew Nkrumah's regime.  Nkrumah and all his ministers were dismissed, the CPP and National Assembly were dissolved, and the constitution was suspended.  The new regime cited Nkrumah's flagrant abuse of individual rights and liberties, his regime's corrupt, oppressive, and dictatorial practices, and the rapidly deteriorating economy as the principal reasons for its action. Post-Nkrumah Politics    The leaders of the February 24 coup established the new government around the National Liberation Council (NLC) and pledged an early return to a duly constituted civilian government.  Members of the judiciary and civil service remained at their posts and committees of civil servants were established to handle the administration of the country.    Ghana's government returned to civilian authority under the Second Republic in October 1969 after a parliamentary election in which the Progress Party, led by Kofi A. Busia, won 105 of the 140 seats.  Until mid-1970, the powers of the chief of state were held by a presidential commission led by Brigadier A.A. Afrifa.  In a special election on August 31, 1970, former Chief Justice Edward Akufo-Addo was chosen president, and Dr. Busia became prime minister.    Faced with mounting economic problems, Prime Minister Busia's government undertook a drastic devaluation of the currency in December 1971.  The government's inability to control the subsequent inflationary pressures stimulated further discontent, and military officers seized power in a bloodless coup on January 13, 1972.    The coup leaders, led by Col. I.K. Acheampong, formed the National Redemption Council (NRC) to which they admitted other officers, the head of the police, and one civilian.  The NRC promised improvements in the quality of life for all Ghanaians and based its programs on nationalism, economic development, and self-reliance.  In 1975, a government reorganization resulted in the NRC's replacement by the Supreme Military Council (SMC), also headed by now-Gen. Acheampong.    Unable to deliver on its promises, the NRC/SMC became increasingly marked by mismanagement and rampant corruption.  In 1977, Gen. Acheampong brought forward the concept of union government (UNIGOV), which would make Ghana a nonparty state.  Perceiving this as a ploy by Acheampong to retain power, professional groups and students launched strikes and demonstrations against the government in 1977 and 1978.  The steady erosion in Acheampong's power led to his arrest in July 1978 by his chief of staff, Lt. Gen. Frederick Akuffo, who replaced him as head of state and leader of what became known as the SMC-2.    Akuffo abandoned UNIGOV and established a plan to return to constitutional and democratic government.  A Constitutional Assembly was established, and political party activity was revived.  Akuffo was unable to solve Ghana's economic problems, however, or to reduce the rampant corruption in which senior military officers played a major role.  On June 4, 1979, his government was deposed in a violent coup by a group of junior and noncommissioned officers-Armed Forces Revolutionary Council (AFRC)-with Flight Lt. Jerry John Rawlings as its chairman.    The AFRC executed eight senior military officers, including former chiefs of state Acheampong and Akuffo;  established Special Tribunals that, secretly and without due process, tried dozens of military officers, other government officials, and private individuals for corruption, sentencing them to long prison terms and confiscating their property; and, through a combination of force and exhortation, attempted to rid Ghanaian society of corruption and profiteering.  At the same time, the AFRC accepted, with a few amendments, the draft constitution that had been submitted, permitted the scheduled presidential and parliamentary elections to take place in June and July, promulgated the constitution, and handed over power to the newly elected president and parliament of the Third Republic on September 24, 1979.    The 1979 constitution was modeled on those of Western democracies.  It provided for the separation of powers among an elected president and a unicameral parliament, an independent judiciary headed by a Supreme Court, which protected individual rights, and other autonomous institutions, such as the Electoral Commissioner and the Ombudsman.  The new president, Dr. Hilla Limann, was a career diplomat from the north and the candidate of the People's National Party (PDP), the political heir of Nkrumah's CPP.  Of the 140 members of parliament, 71 were PNP.    The PNP government established the constitutional institutions and generally respected democracy and individual human rights.  It failed, however, to halt the continuing decline in the economy; corruption flourished, and the gap between rich and poor widened.  On December 31, 1981, Flight Lt. Rawlings and a small group of enlisted and former soldiers launched a coup that succeeded against little opposition in toppling President Limann.GOVERNMENT    Rawlings and his colleagues suspended the 1979 constitution, dismissed the president and his cabinet, dissolved the parliament, and proscribed existing political parties.  They established the Provisional National Defense Council (PNDC), initially composed of seven members with Rawlings as chairman, to exercise executive and legislative powers.  The existing judicial system was preserved, but alongside it the PNDC created the National Investigation Committee to root out corruption and other economic offenses, the anonymous Citizens' Vetting Committee to punish tax evasion, and the Public Tribunals to try various crimes.  The PNDC proclaimed its intent to allow the people to exercise political power through defense committees to be established in communities, workplaces, and in units of the armed forces and police.  Under the PNDC, Ghana remained a unitary government.    In December 1982, the PNDC announced a plan to decentralize government from Accra to the regions, the districts, and local communities, but it maintained overall control by appointing regional and district secretaries who exercised executive powers and also chaired regional and district councils.  Local councils, however, were expected progressively to take over the payment of salaries, with regions and districts assuming more powers from the national government.  In 1984, the PNDC created a National Appeals Tribunal to hear appeals from the public tribunals, changed the Citizens' Vetting Committee into the Office of Revenue Collection and replaced the system of defense committees with Committees for the Defense of the Revolution.    In 1984 ,the PNDC also created a National Commission on Democracy to study ways to establish participatory democracy in Ghana.  The commission issued a "Blue Book" in July 1987 outlining modalities for district-level elections, which were held in late 1988 and early 1989, for newly created district assemblies.  One- third of the assembly members are appointed by the government.  No provision has been made for regional or national elections.  Ghana continues to be governed by PNDC directives and without a constitution.Principal Government OfficialsMembers of the Provisional National Defense Council (PNDC)Chairman and Head of State-Flight Lt. (ret.) Jerry John Rawlings Foreign Affairs and Security-Capt. (ret.) Kojo TsikataCoordinating Secretary and Chairman of the Committee of Secretaries-P.V. Obeng Chairman of the National Commission for Democracy-Justice D.F. AnnanSecretary for Defense-Alhaji Mahama Iddrisu Lt. Gen. Arnold QuainooArmy Commander-Maj. Gen. Winston C.M. Mensa-Wood Ebo TawiahDr. Mary GrantPNDC SecretariesFinance and Economic Planning-Dr. Kwesi BotchweyForeign Affairs-Dr. Obed Yaw AsamoahAmbassador to the United States-Eric OtooPermanent Representative to the United Nations-J.V. Gbeho    Ghana maintains an embassy in the United States at 3512 International Drive, NW., Washington, D.C. 20008 (tel. [phone]).  Its permanent mission to the United Nations is located at 19 E. 47th Street., New York, N.Y. 10017 (tel. [phone]).ECONOMY    By West African standards, Ghana has a diverse and rich resource base.  The country is mainly agricultural, however, with 55% of its workers engaged in farming.  Cash crops consist primarily of cocoa and cocoa products (which provide about two-thirds of export revenues), timber products, coconuts and other palm products, shea nuts (which produce an edible fat), and coffee.  Cassava, yams, plantains, corn, rice, peanuts, millet, and sorghum are the basic foodstuffs.  Fish, poultry, and meat also are important dietary staples.    Minerals-principally gold, diamonds, manganese ore, and bauxite-are produced and exported.  The only commercial oil well has been closed, but signs of natural gas are being studied for power generation, while exploration continues for other oil and gas resources.    Ghana's industrial base is relatively advanced compared to many other African countries.  Import-substitution industries include textiles; steel (using scrap); tires; oil refining; flour milling; beverages; tobacco; simple consumer goods; and car, truck, and bus assembly.  However, these industries depend on imports for most of their raw materials and, due to depressed demand and other problems, currently are running far below capacity.Economic Development    At independence, Ghana had a substantial physical and social infrastructure and $481 million in foreign reserves.  The Nkrumah government further developed the infrastructure and made important public investments in the industrial sector.  With assistance from the United States, the World Bank, and the United Kingdom, construction of the Akosombo Dam was completed on the Volta River in 1966.  Two U.S. companies built Valco, Africa's largest aluminum smelter, to use power generated at the dam.  Aluminum exports from Valco are a major source of foreign exchange for Ghana.    Many Nkrumah-era investments were monumental public works projects and poorly conceived, badly managed agricultural and industrial schemes.  With cocoa prices falling and the country's foreign exchange reserves fast disappearing, the government resorted to supplier credits to finance many projects.  By the mid-1960s, Ghana's reserves were gone, and the country could not meet repayment schedules.  To rationalize, the National Liberation Council abandoned unprofitable projects, and some inefficient state-owned enterprises were sold to private investors.  Ghana's creditors agreed to three reschedulings of repayments due on Nkrumah-era supplier credits.  Led by the United States, foreign donors provided import loans to enable the foreign exchange-strapped government to import essential commodities.     Prime Minister Busia's government (1969-72) liberalized controls to attract foreign investment and to encourage domestic entrepreneurship.  Investors were cautious, however, and cocoa prices began declining again while imports surged, precipitating a serious trade deficit.  Despite considerable foreign assistance and some debt relief, the Busia regime also was unable to overcome the inherited restraints on growth posed by the debt burden, balance-of-payments imbalances, foreign exchange shortages, and mismanagement.    Although foreign aid helped prevent economic collapse and was responsible for subsequent improvements in many sectors, the economy stagnated in the 10-year period preceding the NRC takeover in 1972.  Population growth offset the modest increase in gross domestic product, and real earnings declined for many Ghanaians.    To restructure the economy, the NRC, under General Acheampong (1972-78), undertook an austerity program that emphasized self-reliance, particularly in food production.  These plans were not realized, however, primarily because of post-1973 oil price increases and a drought in 1975-77 that particularly affected northern Ghana.  The NRC, which had inherited foreign debts of almost $1 billion, abrogated existing rescheduling arrangements for some debts and rejected other repayments.  After creditors objected to this unilateral action, a 1974 agreement rescheduled the medium-term debt on liberal terms.  The NRC also imposed the Investment Policy Decree of 1975-effective on January 1977-that required 51 % Ghanaian equity participation in most foreign firms, but the government took 40% in specified industries.  Many shares were sold directly to the public.     Continued mismanagement of the economy, record inflation (more than 100% in 1977), and increasing corruption, notably at the highest political levels, led to growing dissatisfaction.  The post-July 1978 military regime led by General Akuffo attempted to deal with Ghana's economic problems by making small changes in the overvalued cedi and by restraining government spending and monetary growth.  Under a 1-year standby agreement with the International Monetary Fund (IMF) in January 1979, the government promised to undertake economic reforms, including a reduction of the budget deficit, in return for a $68 million IMF support program and $27 million in IMF Trust Fund loans.  The agreement became inoperative, however, after the June 4 coup that brought Flight Lieutenant Rawlings and the AFRC to power for 4 months.     In September 1979, the civilian government of Hilla Limann inherited declining per capita income; stagnant industrial and agricultural production due to inadequate imported supplies; shortages of imported and locally produced goods; a sizable budget deficit (almost 40% of expenditures in 1979); high inflation, "moderating" to 54% in 1979; an increasingly overvalued cedi; flourishing smuggling and other black-market activities; unemployment and underemployment, particularly among urban youth; deterioration in the transport network; and continued foreign exchange constraints.    Limann's PDP government announced yet another (2-year) reconstruction program, emphasizing increased food production and productivity, exports, and transport improvements.  Import austerity was imposed and external payments arrears cut.  However, declining cocoa production combined with falling cocoa prices, while oil prices soared.  No effective measures were taken to reduce rampant corruption and black marketing.    When Rawlings again seized power at the end of 1981, cocoa output had fallen to half the 1970-71 level and its world price to one-third the 1975 level.  By 1982, oil would constitute half of Ghana's imports, while overall trade contracted greatly.  Internal transport had slowed to a crawl, and inflation remained high.  During Rawlings' first year, the economy was stagnant.  Industry ran at about 10% of capacity due to the chronic shortage of foreign exchange to cover the importation of required raw materials and replacement parts.  Economic conditions deteriorated further in early 1983 when Nigeria expelled an estimated 1 million Ghanaians who had to be absorbed by Ghana.    In April 1983, in coordination with the IMF, the PNDC launched an economic recovery program, perhaps the most stringent and consistent to date in Africa-aimed at reopening infrastructural bottlenecks and reviving moribund productive sectors: agriculture, mining, and timber.  The largely distorted exchange rate and prices were realigned to encourage production and exports.  Increased fiscal and monetary discipline was imposed to curb inflation and to focus on priorities.  Through November 1987, the cedi was devalued by more than 6,300%, and widespread direct price controls were substantially reduced.    The economy's response to these reforms was initially hampered by the absorption of the returnees from Nigeria, the onset of the worst drought since independence, which brought on widespread bushfires and forced closure of the aluminum smelter and severe power cuts for industry, and decline in foreign aid.  In 1985, the country absorbed an additional 100,000 expellees from Nigeria.  In 1987, cocoa prices began declining again; however, initial infrastructural repairs, improved weather, and producer incentives and support recently have revived output.  During 1984-88 the economy experienced solid growth for the first time since 1978.  Renewed exports, aid inflows, and a foreign exchange auction have eased hard currency constraints.    Since an initial August 1983 IMF standby agreement, the economic recovery program has been supported by three IMF standbys and two other credits totaling $611 million, $1.1 billion from the World Bank, and hundreds of millions of dollars more from other donors.  In November 1987, the IMF approved a $318 million 3-year extended fund facility.  The second phase (1987-90) of the recovery program  will concentrate on economic restructuring and revitalizing social services.</text>
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        <text>U.S. Department of StateBackground Notes:  Germany, July 1995 (CONTINUED)Bureau of Public AffairsJuly 1995Official Name:  Federal Republic of GermanyECONOMYGermany ranks among the world's most important economic powers.  Fromthe 1948 currency reform until the early 1970s, West Germanyexperienced almost continuous economic expansion, but real growth ingross national product slowed and even declined from the mid-1970sthrough the recession of the early 1980s.  The economy thenexperienced eight consecutive years of growth that ended with adownturn beginning in late 1992.After national unification, eastern German industrial outputcollapsed to about 40% of its 1989 level, leading to highunemployment in the new states.  Reunification strained German publicfinance, hurt the labor market, and eventually exposed structuralweaknesses in the economy.  Following a reunification-induced westernGerman economic boom during 1990-92 fueled by explosive consumerdemand and capital spending, growth stalled while transfer paymentsto the eastern states rose to $90 billion per year.  In an effort tocontain the inflationary pressures ofthese transfers, the Central Bank (Bundesbank) maintained a high(short-term) interest rate policy which further dampened economicactivity.  In 1994, the German economy turned the corner on recovery,and the 10% growth rate in the eastern states was the highest of anyregion in Europe.  The Deutsche Mark's appreciation through early1995, combined with a series of relatively high sectoral wagesettlements, has caused annual GDP growth projections to be reviseddownward slightly, to 3%.Germans often describe their economic system as a "social marketeconomy."  The German Government provides an extensive array ofsocial services.  Although the state intervenes in the economythrough the provision of subsidies to selected sectors and theownership of some segments of the economy, competition and freeenterprise are promoted as a matter of government policy.  Thegovernment recently restructured the railroad system on a corporatebasis and is in the process of privatizing the national airline andpostal service.The German economy is heavily export oriented, with one-third of itsnational output going to the external sector.  As a result, exportstraditionally have been a key element in German macroeconomicexpansion.  Germany is a strong advocate of closer European economicintegration, and its economic and commercial policies areincreasingly determined by agreements among European Union (EU)members.Outside the EU, the United States and Japan are Germany's majortrading partners.  Two-way U.S.-German merchandise trade is more than$50 billion.  The United States has run a series of trade deficitswith Germany; U.S. merchandise exports stagnated in 1994 at $19billion, while German exports expanded to $32 billion.  Major U.S.export categories include aircraft, electrical equipment,telecommunications equipment, data processing equipment, and motorvehicles and parts.  German export sales are concentrated in motorvehicles, machinery, chemicals, and heavy electrical equipment.  Inservices, the United States consistently shows a surplus in tradewith Germany.Germany follows a liberal policy toward foreign investment.  About65% of U.S. capital invested in Germany is in manufacturing.  In1993, total U.S. direct investment in Germany was $38 billion--upfrom the 1992 figure of$34 billion--making the U.S. the leading source of foreign investmentin Germany.  Total German investment in the United States in 1993 was$35 billion, also up significantly from the 1992 level of $30billion.Five years after the unification of the two German states, greatstrides have been made, and the complex task of introducing a marketeconomy in the east is well-advanced.  Overall productivity in theformer G.D.R., which was less than half that in the F.R.G., is now at68% and rising.  The challenge is to close the productivity gapaltogether.  The poor condition of the basic infrastructure,widespread environmental damage, and lower-than-expected levels ofprivate investment in the east have complicated the process ofeconomic integration.  Private investment in eastern Germany has beenslower than expected in large part because the issue of propertyownership in the former G.D.R. has proven difficult to resolve.  Mostobservers nevertheless believe that, after an initial period ofeconomic adjustment, eastern Germany will enter an era of rapid andself-sustaining economic growth.Despite a growing clamor to address structural rigidities in thelabor market and excessive government regulation, the economy remainsfundamentally strong and internationally competitive.  Abundant humancapital, low corporate debt burdens, and cooperative industrialrelations characterize the German economy.FOREIGN RELATIONSUnified Germany continues to emphasize close ties with the UnitedStates, membership in NATO, the "deepening" of integration amongcurrent members of the EU, and expansion of union membership toinclude Central and Southern European neighbors.  The F.R.G. tookpart in all of the joint postwar efforts aimed at closer political,economic, and defense cooperation among the countries of WesternEurope.  Germany is also a strong supporter of the Organization forSecurity and Cooperation in Europe (OSCE), which seeks to reducetensions and improve relations among the European nations, the U.S.,and Canada.During the postwar era, the F.R.G. also sought to improve itsrelationship with the countries of Eastern Europe, first establishingtrade agreements and, subsequently, diplomatic relations.  Withunification, German relations with the new democracies in Central andEastern Europe have intensified.  On November 14, 1990, Germany andPoland signed a treaty confirming the Oder-Neisse border.  They alsoconcluded a cooperation treaty on June 17, 1991.  Germany concludedfour treaties with the Soviet Union covering the overall bilateralrelationship, economic relations, the withdrawal of Soviet troopsfrom the territory of the former G.D.R., and German support for thosetroops.  Russia accepted obligations under these treaties assuccessor to the Soviet Union.BerlinThe Final Settlement Treaty ended Berlin's special status since 1945as a separate area under Four Power control.  Under the terms of thetreaty between the F.R.G. and the G.D.R., Berlin became the capitalof a unified Germany.  The Bundestag voted in June 1991 to makeBerlin the seat of government.  The Chancellory, Bundestag, ForeignOffice, and other government ministries will move to Berlin by theturn of the century.  Berlin is also one of the Federal Republic's 16Laender.  Its first united government since 1948 was elected inDecember 1990.The opening of the Berlin Wall on November 9, 1989, was a watershedin the developments which culminated in German unity on October 3,1990.  The infamous 165-kilometer (103 mi.) wall surrounding thewestern sectors of the city has been torn down, and the city has beenphysically reunited.  President Clinton highlighted the lastingsignificance for all free nations of the fall of the Berlin Wall in aspeech at the Brandenburg Gate on July 12, 1994--the first address bya U.S. president delivered from the eastern side of that Berlinlandmark.Shortly after World War II, Berlin became the seat of the AlliedControl Council, which was to have governed Germany as a whole untilthe conclusion of a peace settlement.  In 1948, however, the Sovietsrefused to participate any longer in the quadripartite administrationof Germany.  At the same time, they also refused to continuecooperating in the joint administration of Berlin and drove thegovernment elected by the people of Berlin out of its seat in theSoviet sector  and installed a communist regime in its place.  Fromthen until unification, the Western Allies continued to exercisesupreme authority--effective only in their sectors--through theAllied Kommandatura.  To the degree compatible with the city'sspecial status, however, they turned over control and management ofcity affairs to the Berlin Senat (executive) and House ofRepresentatives, governing bodies established by constitutionalprocess and chosen by free elections.  The Allies and Germanauthorities in the F.R.G. and West Berlin never recognized thecommunist city regime in East Berlin or G.D.R. authority there.During the years of Berlin's isolation--176 kilometers (110 mi.)inside the former G.D.R.--the Western Allies encouraged a closerelationship between the Government of West Berlin and that of theF.R.G.  Representatives of the city participated as non-votingmembers in the F.R.G. parliament; appropriate West German agencies,such as the supreme administrative court, had their permanent seatsin the city; and the governing mayor of Berlin took his turn asPresident of the Bundesrat.  In addition, the allies carefullyconsulted with the F.R.G. and Berlin Governments on foreign policyquestions involving unification and the status of Berlin.The Quadripartite Agreement on Berlin in 1971 also provided forpractical improvements in the life of Berliners.  It made possibleunhindered civilian access to Berlin and greater freedom of movementbetween eastern and western sectors for a period of 20 years.  Inaddition, it contained Soviet acknowledgment of the ties that hadgrown between West Berlin and the F.R.G., including the latter'sright to represent Berlin abroad.Between 1948 and 1990, major events such as fairs and festivals weresponsored in West Berlin, and investment in commerce and industry wasencouraged by special concessionary tax legislation.  The results ofsuch efforts, combined with effective city administration and theBerliners' energy and spirit, were encouraging.  Berlin's morale wassustained, and its industrial production considerably surpassed theprewar level.  The Government of Germany asked the allies to maintaina military presence in Berlin until the complete withdrawal of theWestern Group of Forces (ex-Soviet) from the territory of the formerG.D.R.  The Russian withdrawal was completed August 31, 1994.Ceremonies were held on September 8, 1994, to mark the finaldeparture of Western Allied troops from Berlin.U.S.-GERMANY RELATIONSU.S.-German relations have been a focal point of American involvementin Europe since the end of World War II.  Germany stands at thecenter of European affairs and is a key partner in U.S. relationswith Europeans in NATO and the European Union.But German-American ties extend back to the colonial era.  More than7 million Germans have immigrated over the last three centuries, andtoday nearly 25% of U.S. citizens can claim some German ancestry.  Inrecognition of this heritage and the importance of modern-day U.S.-German ties, the U.S. Congress annually has declared October 6 to be"German-American Day."The U.S. objective in Germany remains the preservation andconsolidation of a close and vital relationship with Germany not onlyas friends and trading partners but also as allies sharing com-moninstitutions.  During the 45 years in which Germany was divided, theU.S. role in Berlin and the large American military presence in WestGermany served as symbols of the U.S. commitment to the preservationof peace and security in Europe.  Since German unification, the U.S.commitment to these goals has not changed.  The U.S. has madesignificant  reductions in its troop levels in Germany, and, on July12, 1994, President Clinton "cased the colors" at the BerlinBrigade's deactivation ceremony.  American policies, however,continue to be shaped by the awareness that the security andprosperity of the United States and Germany depend--to a majorextent--on each other.  Over 80,000 U.S. military personnel willremain in Germany to protect these common interests.As allies in NATO, the United States and Germany work side by side tomaintain peace and freedom.  This unity and resolve made possible thesuccessful conclusion of the 1987 U.S.-U.S.S.R. Intermediate-RangeNuclear Forces Treaty (INF), the Two-plus-Four process, which led tothe Final Settlement Treaty, and the November 1990 Conventional ArmedForces in Europe (CFE) Treaty.As two of the world's leading trading nations, the United States andGermany share a common, deep-seated commitment to an open andexpanding world economy.  Germany is the world's second- leadingtrading nation. It is the fifth-largest trading partner of the UnitedStates.Personal ties between the United States and Germany extend beyondimmigration to include lively foreign exchange programs, boomingtourism in both directions, and the presence in Germany of largenumbers of American military personnel and their dependents.  In thecommercial sphere, more than 600,000 Germans work for U.S. companiesin Germany while Americans employed by German firms here number over500,000.The United States and Germany have built a solid foundation ofbilateral cooperation in a relationship that has changedsignificantly over four decades.  The historic unification of Germanyand the role played by the United States in that process have servedto strengthen ties between the two countries.  The relationship isnow a mature partnership but remains subject to occasionalmisunderstandings and differences.  These strains tend to reflect theimportance, variety, and intensity of U.S.-German ties and respectiveinterests rather than fundamental differences.German-American political, economic, and security relationshipscontinue to be based on close consultation and coordination at themost senior levels.  High-level visits take place frequently, and theUnited States and Germany cooperate actively in international forums.Principal U.S. Embassy OfficialsAmbassador--Charles E. RedmanDeputy Chief of Mission--J.D. BindenagelMinister-Counselor for Political Affairs--Robert D. JohnsonMinister-Counselor for Economic Affairs--Janice BayMinister-Counselor for Commercial Affairs--Robert KohnMinister-Counselor for Administrative Affairs--Donald S. HaysMinister-Counselor for Consular Affairs--Michael MarineMinister-Counselor for Public Affairs--Robert EarleChief, Office of Defense Cooperation--Col. Karl D. Horn, USAFDefense Attache--Col. Lawrence J. Kimmel, U.S. ArmyThe U.S. embassy in Germany is located at Deichmanns Aue, 53170 Bonn(0228) 339-1.  A branch office of the embassy is in Berlin, andconsulates general are in Frankfurt, Hamburg, Munich,  Stuttgart,Leipzig, and Dusseldorf.TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program providesTravel Warnings and Consular Information Sheets. Travel Warnings areissued when the Department of State recommends that Americans avoidtravel to a certain country. Consular Information Sheets exist forall countries and include information on immigration practices,currency regulations, health conditions, areas of instability, crimeand security information, political disturbances, and the addressesof the U.S. embassies and consulates in the subject country. They canbe obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial(202) 647-9225, via a modem with standard settings. Bureau ofConsular Affairs' publications on obtaining passports and planning asafe trip abroad are available from the Superintendent of Documents,U.S. Government Printing Office, Washington, D.C. 20402 [phone].Emergency information concerning  Americans traveling abroad may beobtained from the Office of Overseas Citizens Services at [phone].While planning a trip, travelers can check the latest information onhealth requirements and conditions with the U.S. Centers for DiseaseControl and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent healthadvisories, immunization recommendations or requirements, and adviceon food and drinking water safety for regions and countries. Abooklet entitled Health Information for International Travel (HHSpublication number CDC-94-8280, price $7.00) is available from theSuperintendent of Documents, U.S. Government Printing Office,Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency andcustoms regulations, legal holidays, and other items of interest totravelers also may be obtained before your departure from a country'sembassy and/or consulates in the U.S. (for this country, see"Principal Government Officials" listing in this publication).Upon their arrival in a country, U.S. citizens are encouraged toregister with the U.S. embassy (see "Principal U.S. EmbassyOfficials" listing in this publication). Such information mightassist family members in making contact en route in case of anemergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABBprovides Consular Information Sheets, Travel Warnings, and helpfulinformation for travelers. Access at [phone] is free of chargeto anyone with a personal computer, modem, telecommunicationssoftware, and telephone line.Department of State Foreign Affairs Network. Available on theInternet, DOSFAN provides timely, global access to official U.S.foreign policy information. Updated daily, DOSFAN includes BackgroundNotes; Dispatch, the official weekly magazine of U.S. foreign policy;daily press briefings; directories of key officers of foreign serviceposts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterlybasis by the U.S. Department of State, USFAC archives information onthe Department of State Foreign Affairs Network, and includes anarray of official foreign policy information from 1990 to thepresent. Priced at $80 ($100 foreign), one-year subscriptions includefour discs (MSDOS and Macintosh compatible) and are available fromthe Superintendent of Documents, U.S. Government Printing Office,P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policyinformation also is carried on the BBS, operated by the U.S.Government Printing Office (GPO). By modem, dial [phone]. Forgeneral BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department ofCommerce, the NTDB contains a wealth of trade-related information,including Country Commercial Guides. It is available on the Internet(gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at(202) 482-1986 for more information.Published by the United States Department of State  --  Bureau ofPublic Affairs  --  Office of Public Communication  --  Washington,DC  --  July 1995  --  Managing Editor:  Peter A. Knecht  --  Editor:Marilyn J. BremnerDepartment of State Publication 7834  --  Background Notes series  --This material is in the public domain and may be reprinted withoutpermission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. Government PrintingOffice, Washington, DC  20402.(###)</text>
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        <text>U.S. Department of StateBackground Notes:  Germany, July 1995Bureau of Public AffairsJuly 1995Official Name:  Federal Republic of GermanyPROFILEGeographyArea:  357,000 sq. km. (137,821 sq. mi.); about the size of Montana.Cities:  Capital--Berlin (population about 3.5 million).  Seat ofgovernment--Bonn (pop. 298,000).  The permanent seat of governmentfor a unified Germany will be moved from Bonn to Berlin, probablybetween 1998 and the year 2000.  Other cities--Hamburg (1.7 million),Munich (1.3 million), Cologne (1 million), Frankfurt (664,000),Dusseldorf (578,000), Leipzig (497,000).Terrain:  Low plain in the north; high plains, hills, and basins inthe center and east; mountainous alpine region in the south.Climate: Temperate; cooler and rainier than much of the U.S.PeopleNationality:  Noun and adjective--German(s).Population (1994 est.): 81 million.Ethnic groups:  Primarily German; Danish minority in the north,Sorbian (Slavic) minority in the east, 7 million foreigners.Religions:  Protestants slightly outnumber Roman Catholics.Language:  German.Education:  Years compulsory--10.  Attendance--100%.  Literacy--99%.Health:  Infant mortality rate (1990, original 11 states)--6/1,000.Life expectancy  (1994, Germany-wide)--women 79 yrs., men 73 yrs.Work force:  39 million (1993).GovernmentType:  Federal republic.Founded: 1949 (Basic Law, i.e., constitution, promulgated on May 23,1949).  On October 3, 1990, the Federal Republic of Germany and theGerman Democratic Republic unified in accordance with Article 23 ofthe F.R.G. Basic Law.Branches:  Executive--president (titular chief of state), chancellor(executive head of government).  Legislative--bicameral parliament.Judicial--independent, Federal Constitutional Court.Administrative divisions:  16 Laender (states).Major political parties:  Christian Democratic Union (CDU); ChristianSocial Union (CSU); Social Democratic Party (SPD); Free DemocraticParty (FDP); Alliance 90/Greens; Party of Democratic Socialism (PDS).Suffrage:  Universal at 18.EconomyGDP (1994):  $2 trillion.Annual growth rate (1994):  3%.Per capita income:  $25,000.Inflation rate (1994):  3%.Natural resources:  Iron, hard coal, lignite, potash, natural gas.Agriculture:  Accounts for 1% of GDP.  Products--corn, wheat,potatoes, sugar beets, barley, hops, viniculture, forestry,fisheries.Industry (35% of GDP):  Types--iron and steel, coal, chemicals,electrical products, ships, vehicles, construction.Trade (1994):  Exports--$423 billion: chemicals, motor vehicles, ironand steel products, manufactured goods, electrical products.  Majormarkets--France, U.K., U.S.  Imports--$377 billion:  food, petroleumproducts, manufactured goods, electrical products, automobiles,apparel.  Major suppliers--France, Italy, Netherlands.PEOPLEThe population of unified Germany is primarily German. There arealmost 7 million foreign residents, including those granted asylum,guest workers, and their dependents.  Despite a recent tightening ofasylum laws, Germany remains a prime destination for political andeconomic refugees from much of the Third World.  An ethnic Danishminority lives in the north, and a small Slavic minority known as theSorbs lives in eastern Germany.Germany has one of the world's highest levels of education,technological development, and economic productivity.   Since the endof World War II, the number of youths entering universities has morethan tripled, and the trade and technical schools in the original 11states of the Federal Republic of Germany (F.R.G.) are among theworld's best.  With a per capita income level of more than $25,000,postwar Germany has become a broadly middle class society.  Agenerous social welfare system provides for universal medical care,unemployment compensation, and other social needs.  Modern Germansalso are mobile; millions travel abroad each year.With unification on October 3, 1990, Germany began the major task ofbringing the standard of living of Germans in the former GermanDemocratic Republic (G.D.R.) up to that of western Germany.  Thiswill be a lengthy and difficult process due to the relativeinefficiency of industrial enterprises in the former G.D.R.,difficulties in resolving property ownership in eastern Germany, andthe inadequate infrastructure and environmental damage that resultedfrom years of mismanagement under communist rule.Drastic changes in the socio-economic landscape brought about byreunification have resulted in troubling social problems.  Theeconomic uncertainty in eastern Germany is often cited as one factorcontributing to rising extremist violence, primarily from the right.Confusion about the causes of the current hardships and a need toplace blame have found expression in an alarming wave of harassmentand violence by some Germans directed toward foreigners, particularlynon-Europeans.  However, thousands of Germans have formed groups andmarched to condemn violence or other anti-foreigner or extremistacts.HISTORYThe rise of Prussian power in the 19th century, supported by growingGerman nationalism, eventually ended inter-state fighting andresulted in the formation of the German empire in 1871 under thechancellorship of Otto von Bismarck.  Although authoritarian in manyrespects, the empire eventually permitted the development ofpolitical parties, and Bismarck was credited with passing the mostadvanced social welfare legislation of the age.  Dynamic expansion ofmilitary power, however, contributed to tensions on the continent.The fragile European balance of power broke down in 1914, and WorldWar I and its aftermath, including the Treaty of Versailles, led tothe collapse of the German empire.Fascism's Rise and DefeatThe postwar Weimar Republic (1919-33) was an attempt to establish apeaceful, liberal democratic regime in Germany.  This government wasseverely handicapped and eventually doomed by economic problems andthe inherent weakness of the Weimar state.  The inflation of theearly 1920s, the world depression of the 1930s, and the social unreststemming from the draconian conditions of the Versailles Treatyworked to destroy the Weimar government from inside and out.The National Socialist (Nazi) Party, led by Adolf Hitler, stressednationalist themes and promised to put the unemployed back to work.The party blamed many of Germany's ills on alleged Jewishconspiracies.  Nazi support expanded rapidly in the early 1930s.Hitler was asked to form a government as Reich Chancellor in January1933.  After President Paul von Hindenburg died in 1934, Hitlerassumed that office as well.  Once in power, Hitler and his partyfirst undermined then abolished democratic institutions andopposition parties.The Nazi leadership attempted to remove orsubjugate all non-German peoples in Germany by forced migration and,ultimately, genocide.  Hitler restored Germany's economic andmilitary strength, but his ambitions led Germany into World War II.For Germany, World War II resulted in the destruction of itspolitical and economic infrastructures, led to its division, and lefta humiliating legacy.After Germany's unconditional surrender on May 8, 1945, the UnitedStates, the United Kingdom, and the U.S.S.R. occupied the country andassumed responsibility for its administration.  The commanders-in-chief exercised supreme authority in their respective zones and actedin concert on questions affecting the whole country.  France waslater given a separate zone of occupation.Although the United States, the United Kingdom, and the Soviet Unionagreed at Potsdam in August 1945 to a broad program ofdecentralization, treating Germany as a single economic unit withsome central administrative departments, these plans failed.  Theturning point came in 1948, when the Soviets withdrew from the FourPower governing bodies and blockaded Berlin.  Until May 1949, WestBerlin was kept supplied only by an Allied airlift.Political Developments In West GermanyThe United States and the United Kingdom moved to establish a nucleusfor a future German government by expanding the size and powers ofthe German Economic Council in their two zones.  The program providedfor a West German constituent assembly, an occupation statutegoverning relations between the Allies and the German authorities,and the economic merger of the French with the British and Americanzones.On May 23, 1949, the Basic Law, the constitution of the FederalRepublic of Germany, was promulgated.  The first federal governmentwas formed by Konrad Adenauer on September 20, 1949.  The next day,the occupation statute came into force, granting powers of self-government with certain exceptions.The F.R.G. quickly progressed toward fuller sovereignty andassociation with its European neighbors and the Atlantic community.The London and Paris agreements of 1954 restored full sovereignty(with some exceptions) to the F.R.G. in May 1955 and opened the wayfor German membership in the North Atlantic Treaty Organization(NATO) and  the Western European Union (WEU).The three Western Allies retained occupation powers in Berlin andcertain responsibilities for Germany as a whole.  Under the newarrangements, the Allies stationed troops within the F.R.G. for NATOdefense, pursuant to stationing and status-of-forces agreements.With the exception of 45,000 French troops, Allied forces were underNATO's joint defense command.  (France withdrew from the collectivemilitary command structure of NATO in 1966.)Political life in the F.R.G. was remarkably stable and orderly.  TheAdenauer era (1949-63) was followed by a brief period under LudwigErhard (1963-66) who, in turn, was replaced by Kurt Georg Kiesinger(1966-69).  All governments between 1949 and 1966 were formed by theunited caucus of the Christian Democratic Union (CDU) and ChristianSocial Union (CSU), either alone or in coalition with the smallerFree Democratic Party (FDP).  Kiesinger's 1966-69 "Grand Coalition"included the F.R.G.'s two largest parties, CDU/CSU and the SocialDemocratic Party (SPD).  In the 1969 election, the SPD--headed byWilly Brandt--gained enough votes to form a coalition government withthe FDP.  Chancellor Brandt remained head of government until May1974, when he resigned after a senior member of his staff wasconvicted of spying for the East German intelligence service.Finance Minister Helmut Schmidt (SPD) formed a government andreceived the unanimous support of coalition members.  He served asChancellor from 1974 to 1982.  Hans-Dietrich Genscher, a leading FDPofficial, became Vice Chancellor and Foreign Minister.  Schmidt, astrong supporter of the European Community (EC) and the Atlanticalliance, emphasized his commitment to "the political unification ofEurope in partnership with the U.S.A."In October 1982, the SPD-FDP coalition fell apart when the FDP joinedforces with the CDU/CSU to elect CDU Chairman Helmut Kohl asChancellor.  Following national elections in March 1983, Kohl emergedin firm control of both the government and the CDU.  The CDU/CSU felljust short of an absolute majority, due to the entry into theBundestag of the Greens, who received 6% of the vote.In January 1987, the Kohl-Genscher government was returned to office,but the FDP and the Greens gained at the expense of the largerparties.  Kohl's CDU and its Bavarian sister party, the CSU, slippedfrom 49% of the vote in 1983 to 44%.  The SPD fell to 37%; long-timeSPD Chairman Brandt subsequently resigned in April 1987 and wassucceeded by Hans-Jochen Vogel.  The FDP's share rose from 7% to 9%,its best showing since 1980.  The Greens' share rose to 8% from their1983 share of 6%.Political Developments In East GermanyIn the Soviet zone, the Social Democratic Party was forced to mergewith the Communist Party in 1946 to form a new party, the SocialistUnity Party (SED).  The October 1946 elections resulted in coalitiongovernments in the five Land (state) parliaments with the SED as theundisputed leader.A series of people's congresses were called in 1948 and early 1949 bythe SED.  Under Soviet direction, a constitution was drafted on May30, 1949, and adopted on October 7, which was celebrated as the daywhen the German Democratic Republic was proclaimed.  The People'sChamber (Volkskammer)--the lower house of the G.D.R. parliament--andan upper house--the States Chamber (Laenderkammer)--were created.(The Laenderkammer was abolished in 1958.)  On October 11, 1949, thetwo houses elected Wilhelm Pieck as President, and a SED governmentwas set up.  The Soviet Union and its East European alliesimmediately recognized the G.D.R., although it remained largelyunrecognized by non-communist countries until 1972-73.The G.D.R. established the structures of a single-party, centralized,communist state.  On July 23, 1952, the traditional Laender wereabolished and, in their place, 14 Bezirke (districts) wereestablished.  Effectively, all government control was in the hands ofthe SED, and almost all important government positions were held bySED members.The National Front was an umbrella organization nominally consistingof the SED, four other political parties controlled and directed bythe SED, and the four principal mass organizations (youth, tradeunions, women, and culture). However, control was clearly and solelyin the hands of the SED.  Balloting in G.D.R. elections was notsecret.  As in other Soviet bloc countries, electoral participationwas consistently high, with nearly unanimous candidate approval.Inter-German RelationsThe constant stream of East Germans fleeing to West Germany placedgreat strains on F.R.G.-G.D.R. relations in the 1950s.  On August 13,1961, the G.D.R. began building a wall through the center of Berlinto divide the city and slow the flood of refugees to a trickle.  TheBerlin Wall became the symbol of the East's political debility andthe division of Europe.In 1969, Chancellor Brandt announced that the F.R.G. would remainfirmly rooted in the Atlantic alliance but would intensify efforts toimprove relations with Eastern Europe and the G.D.R.  The F.R.G.commenced this Ostpolitik by negotiating non-aggression treaties withthe Soviet Union, Poland, Czechoslovakia, Bulgaria, and Hungary.The F.R.G.'s relations with the G.D.R. posed particularly difficultquestions.  Though anxious to relieve serious hardships for dividedfamilies and to reduce friction, the F.R.G. under Brandt was intenton holding to its concept of "two German states in one Germannation."  Relations improved, however, and in September 1973, theF.R.G. and the G.D.R. were admitted to the UN.  The two Germanysexchanged permanent representatives in 1974, and, in 1987, G.D.R.head of state Erich Honecker paid an official visit to the F.R.G.German UnificationDuring the summer of 1989, rapid changes took place in the G.D.R.,which ultimately led to German unification.  Growing numbers of EastGermans emigrated to the F.R.G. via Hungary after the Hungariansdecided not to use force to stop them.  Thousands of East Germansalso tried to reach the West by staging sit-ins at F.R.G. diplomaticfacilities in other East European capitals.  The exodus generateddemands within the G.D.R. for political change, and massdemonstrations in several cities--particularly in Leipzig--continuedto grow.  On October 7, Soviet leader Mikhail Gorbachev visitedBerlin to celebrate the 40th anniversary of the establishment of theG.D.R. and urged the East German leadership to pursue reform.On October 18, Erich Honecker resigned as head of the SED and as headof state and was replaced by Egon Krenz.  But the exodus continuedunabated and pressure for political reform mounted.  On November 4, ademonstration in East Berlin drew as many as 1 million East Germans.Finally, on November 9, the Berlin Wall was opened and East Germanswere allowed to travel freely.  Thousands poured through the wallinto the western sectors of Berlin, and on November 12, the G.D.R.began dismantling it.On November 28, F.R.G. Chancellor Kohl outlined a 10-point plan forthe peaceful unification of the two Germanys based on free electionsin the G.D.R. and a unification of their two economies.  In December,the G.D.R. Volkskammer eliminated the SED monopoly on power, and theentire Politburo and Central Committee--including Krenz--resigned.The SED changed its name to the Party of Democratic Socialism (PDS)and the formation and growth of numerous political groups and partiesmarked the end of the communist system.  Prime Minister Hans Modrowheaded a caretaker government which shared power with the new,democratically oriented parties.  On December 7, 1989, agreement wasreached to hold free elections in May 1990 and rewrite the G.D.R.constitution.  On January 28, all the parties agreed to advance theelections to March 18, primarily because of an erosion of stateauthority and because the East German exodus was continuing apace;more than  117,000 left in January and February 1990.In early February 1990, the Modrow government's proposal for aunified, neutral German state was rejected by Chancellor Kohl, whoaffirmed that a unified Germany must be a member of NATO.  Finally,on March 18, the first free elections were held in the G.D.R., and agovernment led by Lothar de Maiziere (CDU) was formed under a policyof expeditious unification with the F.R.G.  The freely electedrepresentatives of the Volkskammer held their first session on April5, and the G.D.R. peacefully evolved from a communist to ademocratically elected government.  Free and secret communal (local)elections were held in the G.D.R. on May 6, and the CDU again won.On July 1, the two Germanys entered into an economic and monetaryunion.Four Power Control EndsDuring 1990, in parallel with internal German developments, the FourPowers--the United States, U.K., France, and the Soviet Union--negotiated to end Four Power reserved rights for Berlin and Germanyas a whole.  These "Two-plus-Four" negotiations were mandated at theOttawa Open Skies conference on February 13, 1990.  The six foreignministers met four times in the ensuing months in Bonn (May 5),Berlin (June 22), Paris (July 17), and Moscow (September 12).  ThePolish Foreign Minister participated in the part of the Paris meetingthat dealt with the Polish-German borders.Of key importance was overcoming Soviet objections to a unitedGermany's membership in NATO.  This was accomplished in July when thealliance, led by President Bush, issued the London Declaration on atransformed NATO.  On July 16, President Gorbachev and ChancellorKohl announced agreement in principle on a united Germany in NATO.This cleared the way for the signing in Moscow on September 12 of theTreaty on the Final Settlement With Respect to Germany.  In additionto terminating Four Power rights, the treaty mandated the withdrawalof all Soviet forces from Germany by the end of 1994, made clear thatthe current borders were final and definitive, and specified theright of a united Germany to belong to NATO.  It also provided forthe continued presence of British, French, and American troops inBerlin during the interim period of the Soviet withdrawal.  In thetreaty, the Germans renounced nuclear, biological, and chemicalweapons and stated their intention to reduce German armed forces to370,000 within three to four years after the Conventional ArmedForces in Europe (CFE) Treaty, signed in Paris on November 19, 1990,entered into force.Conclusion of the final settlement cleared the way for unification ofthe F.R.G. and G.D.R.  Formal political union occurred on October 3,1990, with the accession (in accordance with Article 23 of theF.R.G.'s Basic Law) of the five Laender which had been reestablishedin the G.D.R.  On December 2, 1990, all-German elections were heldfor the first time since 1933.GOVERNMENTThe government is parliamentary and based on a democraticconstitution that emphasizes the protection of individual liberty anddivision of powers in a federal structure.  The chancellor (primeminister) heads the executive branch of the federal government.  Theduties of the president (chief of state) are largely ceremonial;power is exercised by the chancellor.  Although elected by andresponsible to the Bundestag (lower and principal chamber of theparliament), the chancellor cannot be removed from office during afour-year term unless the Bundestag has agreed on a successor.The Bundestag, also elected for a four-year term, consists of atleast 656 deputies (more may be admitted when parties' directlyelected seats exceed their proportional representation).  Electionsfor an all-German Bundestag were first held on December 2, 1990, andagain on October 16, 1994.  The Bundesrat (upper chamber or FederalCouncil) consists of 68 members who are delegates of the 16 Laender.The legislature has powers of exclusive jurisdiction and concurrentjurisdiction with the Laender in areas specifically enumerated by theBasic Law.  The Bundestag bears the major responsibility.  The roleof the Bundesrat is limited except in matters concerning Laenderinterests, where it can exercise substantial veto power.Germany has an independent federal judiciary consisting of aconstitutional court, a high court of justice, and courts withjurisdiction in administrative, financial, labor, and social matters.The highest court is the Federal Constitutional Court, which ensuresa uniform interpretation of constitutional provisions and protectsthe fundamental rights of the individual citizen as defined in theBasic Law.Principal Government OfficialsPresident--Roman HerzogPresident of the Bundestag--Rita Suessmuth (CDU)Chancellor--Helmut Kohl (CDU)Vice Chancellor--Klaus Kinkel (FDP)Minister of Defense--Volker Ruehe (CDU)Minister for Foreign Affairs--Klaus Kinkel (FDP)Ambassador to the U.S.--Juergen ChrobogAmbassador to the UN--Detlev Graf zu RantzauGermany maintains an embassy in the United States at 4645 ReservoirRoad NW, Washington, DC 20007(tel. [phone]).Consulates general are located in Atlanta, Boston, Chicago, Detroit,Houston, Los Angeles, Miami, New York, San Francisco, and Seattle.Germany has honorary consuls in over 30 U.S. cities.Political PartiesChristian Democratic Union/Christian Social Union (CDU/CSU).  Animportant aspect of postwar German politics has been the emergence ofa moderate Christian party--the Christian Democratic Union--operatingwith a related Bavarian party, the Christian Social Union.  Althougheach party maintains its own structure, the two form a common caucusin the Bundestag and do not run opposing campaigns.  The CDU/CSU isloosely organized, containing Catholics, Protestants, ruralinterests, and members of all economic classes.  It is generallyconservative on economic and social policy and more identified withthe Roman Catholic and Protestant churches than are the other majorparties, although its programs are pragmatic rather than ideological.Helmut Kohl has served as chairman of the CDU since 1973; Theo Waigelsucceeded the late Franz Josef Strauss as chairman of the CSU in1988.  The parties together polled 41.5% of the national vote and won294 seats on October 16, 1994, reaffirming the Union as Germany'slargest party.Social Democratic Party (SPD).  The SPD is the other major party inGermany and is one of the oldest organized political parties in theworld.  Historically, it advocated Marxist principles, but in theGodesberg Program, adopted in 1959, the SPD abandoned the concept ofa class party while continuing to stress social welfare programs.Although the SPD originally opposed West Germany's 1955 entry intoNATO, it now strongly sup-ports German ties with the alliance. TheSPD has a powerful base in the bigger cities and industrializedLaender.  Rudolf Scharping is the SPD chairman and leader of theparty's Bundestag caucus, which grew to 252 seats on a 36% showing onOctober 16, 1994.Free Democratic Party (FDP).  The FDP has traditionally been composedmainly of middle- and upper-class Protestants, who considerthemselves "independents" and heirs to the European liberaltradition.  Although the party is weak on the state level, it hasparticipated in all but three postwar federal governments and hasspent only seven years out of government in the 46-year history ofthe Federal Republic.  The party took 7% of the vote and returned 47deputies to the Bundestag in 1994.  Klaus Kinkel was elected chairmanof the FDP in 1993.  Wolfgang Gerhardt was elected by the party asKinkel's successor on June 1, 1995..Greens.  In the 1970s, environmentalists organized politically as theGreens.  Opposition to expanded use of nuclear power, to NATOstrategy, and to certain aspects of highly industrialized societywere principal campaign issues.  The Greens received 8% of the votein the January 1987 West German national election.  However, in theDecember 1990 all-German elections, the Greens in western Germanywere not able to clear the 5% hurdle required to win seats in theBundestag.  It was only in the territory of the former G.D.R. thatthe Greens, in a  merger with Alliance 90 (a loose grouping of left-wing political entities with diverse political views), were able toclear the 5% hurdle and win Bundestag seats.  In 1994, Greens fromEast and West returned to the Bundestag with 7% and 49 seats.Party of Democratic Socialism (PDS).  Under chairman Lothar Bisky andBundestag caucus leader Gregor Gysi, the PDS is the successor partyto the SED (the communist party of the G.D.R.).  Established inDecember 1989, it renounced most of the extreme aspects of SED policybut has retained much of the ideology.  In the December 1990 all-German elections, the PDS gained 10% of the vote in the former G.D.R.and 17 seats in the Bundestag.  In October 1994,  the PDS won fourdirectly elected seats, to reenter parliament with a total caucus of30 seats despite falling below the 5% hurdle for proportionalrepresentation which applied again throughout all of Germany.Other Parties.  In addition to those parties that won representationin the Bundestag in October 1994, 16 other parties were on the ballotin one or more states.  The extreme right-wing Republikaner party sawits vote share sink to below 2% nationally, while the others dreweven less support.Recent Election IssuesIn the "super election year" of 1994-95, Germans voted in EuropeanParliament, local, state, and federal parliamentary elections.  OnMay 23, 1994, the President of Germany's Constitutional Court, RomanHerzog, was elected President of the Republic in a special federalconvention.  The most significant of these elections was the FederalParliament (Bundestag) election on October 16.  The coalition of theCDU/CSU and the FDP was returned to government with a narrow majorityof 341 seats to 331 for the opposition parties.  The new Bundestag,in turn, re-elected Helmut Kohl as Federal Chancellor for a four-year, renewable term of office.Many of the most compelling public issues in Germany are domesticallyoriented, with the economy dominating the political debate.  Externalissues, however, continue to play an important role.  Germans aredeeply concerned with the pace and scope of European integration.They also are concerned with the circumstances under which Germanmilitary forces may participate in international peacekeeping orcollective security operations.</text>
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        <text>BACKGROUND NOTES:  THE GAMBIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEDECEMBER 1992Official Name:  Republic of The GambiaPROFILEGeographyArea:  11,300 sq. km (4,361 sq. mi.) slightly more than twice thesize of Delaware.  Cities:  Capital--Banjul (pop. 44,000).Terrain:  Flood plain of the Gambia River flanked by low hills.Climate:  Tropical; hot rainy season (June to November); cooler,dry season (November to May).PeopleNationality:  Noun and adjective--Gambian(s).  Population (1991est.):  855,000.  Annual growth rate (1991 est.): 3.4%.  EthnicGroups:  Mandinka 42%, Fula 18%, Wolof 16%, Jola 10%, Serahuli9%, other 4%, non-Gambian 1%.  Religions:  Muslim 90%, Christian9%, and  animist 1%.   Languages:  English (official), Mandinka,Wolof, Fula, other indigenous languages.  Education: Yearscompulsory--none.  Attendance--65% (ages 5-19).  Literacy--30%.Health:  Infant mortality rate--138/1,000.  Life expectancy--men47 yrs, women 51 yrs.  Work Force:  400,000, Agriculture--75%,Industry, commerce, and services--19%, Government--6%.GovernmentType:  Republic.  Independence:  February 18, 1965.Constitution:  April 24, 1970.Branches:  Executive--president (chief of state and head ofgovernment), vice president, cabinet.  Legislative--unicameralHouse of Representatives.  Judicial--Supreme Court.Subdivisions:  Capital and 5 divisions.Political parties:  Progressive People's Party (PPP) (Rulingparty); Gambia People's Party (GPP), National Convention Party(NCP), Gambia People's Democratic Party (GPDP), People'sDemocratic Organization for Independence and Socialism (PDOIS),United Party (UP).   Suffrage:  Universal at  21.Flag:  Three horizontal bands of red, blue, and green, with bluecenter bordered by two white stripes.EconomyGDP (1991):  $331 million.  Annual growth rate:  2%.  Per capitaincome:  $373.Natural resources:  Seismic studies show that oil may be present.Agriculture (20% of GDP):  Products--peanuts, rice, millet,sorghum, fish, palm kernels, vegetables, livestock, forestry.Peanuts account for 5% of GDP.Industry (12% of GDP):  Types--peanut products, construction,brewing, soft drinks, agricultural machinery assembly, smallwoodworking and metal working, clothing.Trade  (1991 est.):  Exports--$127 million,  including re-exportof various goods (83%), peanuts (8%), palm kernels, fish, andother domestic products.  Major markets--UK, other EC countries,West African neighbors. Imports--$167 million, includingtextiles, foodstuffs, machinery, transportation equipment, 62%for domestic consumption, 38% for re-export.  Majorsuppliers--UK, other EC countries, China, Japan, and other Asiancountries, West African neighbors.Official exchange rate (1992 est.):  9.25 Dalasis=US$1.US economic aid received (FY1992):  $8 million--mainlyagricultural and private sector development projects.PEOPLE AND HISTORYA wide variety of ethnic groups live side by side in The Gambiawith a minimum of inter-tribal friction, each preserving its ownlanguage and traditions.  The Mandinka tribe is the largest,followed by the Fula, Wolof,  Jola, and Serahuli groups.Approximately 2,500 non-Africans live in The Gambia, includingEuropeans and many families of Lebanese origin.Muslims constitute over 95% of the population.  Christians ofdifferent denominations account for most of the remainder.Gambians officially observe the holidays of both religions andpractice religious tolerance.More than 80% of Gambians live in rural villages, although moreand more young people come to the capital in search of work,education, and broader horizons.  While urban migration,development projects, and modernization are bringing more andmore Gambians into contact with European habits and values, thetraditional emphasis on the extended family, as well asindigenous forms of dress and celebration, remain integral partsof everyday life.The Gambia was once part of the Empire of Ghana and the Kingdomof the Songhais.  The first written accounts of the region comefrom records of Arab traders in the 9th and 10th centuries A.D.Arab traders established the trans-Saharan trade route forslaves, gold, and ivory.  In the 15th century, the Portuguesetook over this trade using maritime routes.  At that time, TheGambia was part of the Kingdom of Mali.In 1588, the claimant to the Portuguese throne, Antonio, Prior ofCrato, sold exclusive trade rights on the Gambia River to Englishmerchants; this grant was confirmed by letters patent from QueenElizabeth I.  In 1618, James I granted a charter to a Britishcompany for trade with The Gambia and the Gold Coast (now Ghana).During the late 17th century and throughout the 18th, England andFrance struggled continuously for political and commercialsupremacy in the regions of the Senegal and Gambia Rivers.  The1783 Treaty of Versailles gave Great Britain possession of TheGambia, but the French retained an enclave at Albreda on thenorth bank of the river (ceded to the United Kingdom in 1857).As many as 3 million slaves may have been taken from the regionduring the 3 centuries that the trade operated.  It is not knownhow many were taken by Arab traders.  Most of those taken weresold to Europeans by other Africans; some were prisoners ofinter-tribal wars, some were sold because of unpaid debts, whileothers were kidnapped.  Slaves were initially sent to Europe towork as servants until the market for labor expanded in the WestIndies and North America in the 18th century.  In 1807, slavetrading was abolished throughout the British Empire, and theBritish tried unsuccessfully to end the slave traffic in TheGambia.  They established the military post of Bathurst (nowBanjul) in 1816.  In the ensuing years, Banjul was at times underthe jurisdiction of the governor general in Sierra Leone.  In1843, it was made a separate British colony.  Beginning in 1866,The Gambia and Sierra Leone were reunited under a singleadministration, but in 1888, The Gambia became a separate entityagain.An 1889 agreement with France established the present boundaries,and The Gambia became a British Crown Colony, divided foradministrative purposes into the colony (city of Banjul and thesurrounding area) and the protectorate (remainder of theterritory).  The Gambia received its own executive andlegislative councils in 1901 and gradually progressed towardself-government.  A 1906 ordinance abolished slavery.During World War II, Gambian troops fought with the Allies inBurma, and Banjul served as an air stop for the US Army Air Corpsand a port of call for allied naval convoys.  US PresidentFranklin D. Roosevelt stopped overnight in Banjul en route to andfrom the Casablanca Conference in 1943, marking the first visitto the African continent by an American president in office.After World War II, the pace of constitutional advance quickened,and following general elections in 1962, full internalself-government was granted in 1963.The Gambia achieved independence on February 18, 1965, as aconstitutional monarchy within the British Commonwealth.  Shortlythereafter, the government proposed conversion from a monarchy toa republic with an elected president replacing the Britishmonarch as chief of state.  The proposal failed to receive thetwo-thirds majority required to amend the constitution, but theresults won widespread attention abroad as testimony to TheGambia's observance of secret balloting, honest elections, andcivil rights and liberties.  On April 24, 1970, The Gambia becamea republic following a majority-approved referendum.The Gambia has been led since independence by President DawdaKairaba Jawara, who has been re-elected five times.  The peaceand stability of the Jawara era have been broken only once, in aviolent coup attempt in 1981.  The coup was led by Kukoi SambaSanyang, who, on two occasions, had unsuccessfully soughtelection to parliament.  After a week of violence which leftseveral hundred dead, Jawara, in London when the attack began,appealed to Senegal for help.  Senegalese troops defeated therebel force.In the aftermath of the attempted coup, Senegal and The Gambiasigned the 1982 Treaty of Confederation.  The result, theSenegambia Confederation, aimed eventually to combine the armedforces of the two nations and unify economies and currencies.The Gambia withdrew from the confederation in 1989.GOVERNMENTAccording to the constitution promulgated on April 24, 1970, thegovernment is divided into independent executive, legislative,and judicial branches.  Executive power is vested in a president,popularly elected for a 5-year term.   The president appoints thevice president and the cabinet.The legislature is composed of 51 members as follows:  36 membersof the House of Representatives elected by universal adultsuffrage for 5-year terms; 8 members nominated by the president;5 tribal chiefs elected by the house of chiefs; the attorneygeneral (ex-officio); and the speaker, elected by the members ofthe house.The judiciary consists of a supreme court, the court of appeals,and various subordinate courts.  Judges are appointed by thecentral government.Local government varies.  Banjul has an elected town council.Five rural divisions exist, each with a council containing amajority of elected members.  Each council has its own treasuryand is responsible for local government services.  The tribalchiefs retain traditional powers authorized by customary law.Principal Government OfficialsPresident--Alhaji Sir Dawda Kairaba JawaraVice President--Alhaji Saihou Sulayman SaballyAmbassador to the US and the UN--Ousman A. SallahThe Gambia maintains an embassy at 1155 - 15th Street, NW, Suite1000, Washington, DC 20005.  Tel. [phone].  Its UN Missionis located at 820 2nd Avenue, Ste. 900-C , New York, NY 10017.Tel. [phone].DEFENSEThe Gambian national army numbers approximately 900.  Through abilateral agreement, Nigeria has provided the Gambian army withtechnical assistance in the form of a commander for the army anda training team.  The Gambia national army also receives trainingfrom the United Kingdom.Members of the force participated in the monitoring group of thepeace-keeping force deployed during the Liberian civil warbeginning in 1990.  Responsibilities for internal security andlaw enforcement rest with the Gambian police/gendarme force underthe Inspector General of Police and the Ministry of Interior.POLITICAL CONDITIONSThe Gambia is one of the oldest existing multi-party democraciesin Africa.  Since independence, it has conducted freely-contestedelections every 5 years.  Gambians enjoy full freedom of speechand the right to form political parties in opposition to thegovernment, along with a criminal justice system with areputation for fairness and respect for individual rights.  TheGambia's human rights record is often put forward as an examplefor other nations.The People's Progressive Party (PPP), headed by President Jawara,has dominated Gambian politics for nearly 30 years.  Afterspearheading the movement toward complete independence fromBritain, the PPP was voted into power and has never beenseriously challenged by any opposition party.  In the country'smost recent elections (April 1992), the PPP captured 25 of 36elected seats in parliament and 58% of the popular vote forpresident.  The principal opposition party, the NationalConvention Party (NCP) won 6 seats and 22% of the presidentialvote for its party leader, Sherrif M. Dibba.  Other oppositionparties include the Gambia People's Party (GPP), the People'sDemocratic Organization for Independence and Socialism (PDOIS),and the Gambian People's Democratic Party (PDP).  The nextnational elections will be held in 1997.ECONOMYThe Gambian economy is characterized by traditional subsistenceagriculture, historic reliance on peanuts or groundnuts forexport earnings, and a re-export trade built up around its oceanport, low import duties, minimal administrative procedures, and afluctuating exchange rate with no exchange controls.  Threesectors of the economy--horticulture, fisheries, andtourism--have experienced significant growth during recent years,and are expected to be the focus of export-oriented investment inthe 1990s.Agriculture accounts for 20% of gross domestic product (GDP) andemploys 75% of the labor force.  Within agriculture, peanutproduction accounts for 5% of GDP, other crops 8.3%, livestock4.4%, fishing 1.8% and forestry 0.5%.  Industry accounts for 12%of GDP, of which manufacturing is 6%.  The limited amount ofmanufacturing is primarily agriculturally-based (e.g., peanutprocessing, bakeries, a brewery, and a tannery).  Othermanufacturing activities include soap, soft drinks, and clothing.Services account for the remaining 46% of GDP.In FY 1991, nearly all domestically produced exports wereagricultural products, amounting to about 17% of GDP.  Of thatpercentage, peanuts, the major commodity, accounted for half.The other 50%  include fish, lobster, and shrimp (24%),horticultural commodities (9%), and other products, such ascotton, hides, and live cattle (17%).In FY 1991 the United Kingdom was The Gambia's major exportmarket, accounting for 25% of the total, followed by Netherlandswith 20%, and Belgium with 16%.  China was the major source ofimports, accounting for 25% of the total, followed closely by theUnited Kingdom and France.  The Gambia reports no exports goingto the United States but does report that 4% of imports came fromthere.  Trade in re-exports is more than three times larger thanthat in domestically produced exports.In 1985, the Government of The Gambia began a major economicrecovery program.  Reforms to date include the abolition of pricecontrols, elimination of interest rate and credit controls,floating of the exchange rate, public sector retrenchment,privatization of a number of state-owned enterprises, and a moredisciplined fiscal and monetary policy.There is presently one major US investment in the country, ashrimp trawler operation.  An official US investment missionvisited in November 1991.FOREIGN RELATIONSAlthough The Gambia follows a formal policy of non-alignment, itmaintains particularly close relations with the United Kingdom,Senegal, and other African members of the Commonwealth.  TheGambia takes an active interest in international--especiallyAfrican and Arab--affairs, although its representation abroad islimited.  President Jawara served as chairman of the Organizationof the Islamic Conference (OIC) peace committee, which sought toend the Iran-Iraq conflict.  As chairman of the EconomicCommunity of West African States (ECOWAS) in 1990-91, Jawaraplayed a critical role in directing that organization's effortsto resolve the Liberian civil war.   ECOWAS succeeded in bringingabout a cease-fire and negotiating a peace agreement which seeksto resolve the conflict through democratic elections.US-GAMBIAN RELATIONSUS policy is to expand and strengthen its friendly ties with TheGambia.  The United States provides about $8 million  worth ofeconomic and technical assistance through the US Agency forInternational Development (USAID), primarily for agricultural andprivate sector development.  A $1.4 million program in maternalhealth care is carried out for USAID by Catholic Relief Services.US assistance to The Gambia totals about $8 million annually.The Peace Corps program involves about 50 volunteers, mainlyengaged in forestry, agriculture, and secondary school teaching.The US also provides military training to the Gambian armythrough the International Military Education and Training (IMET)program.Principal US OfficialsAmbassador--Arlene RenderPolitical/Consular Officer--Gregory N. HicksAdministrative Officer--Theodore M. LeinhartUSAID Representative--Bonnie PoundsPeace Corps Country Director--Nanette HegaminThe US embassy in The Gambia is in Fajara on Pipeline Road(Kairaba Avenue). (Tel. [220] 92858/92856/91970; FAX [220]92475).  The USAID offices are in Banjul at 60 Leman St., (Tel.[phone]).  The Peace Corps office (Tel. [220] 92466) ison Pipeline Road (Kairaba Avenue), one city block from theEmbassy.TRAVEL NOTES:Climate and clothing:  The Gambia's sub-tropical climate has adistinct hot, rainy season (mid-May to mid-November).  During thecold, dry season (mid-November to mid-May), light jackets andsweaters are often worn.Health:  Sanitation in Banjul is fair, and tap water is potable.Immunizations, and antimalaria suppressants are recommended.Mosquitoes carry a chloroquine-resistant variety of malaria.Telecommunications:  Telex and fax services are available to theUS, Europe, and Dakar.  Radiotelephone service operates to theUK, most of Europe, and the west coast of Africa.Satellite-telephone service is available to Europe and the US.Banjul is 5 standard time zones ahead of eastern standard time.Transportation:  Banjul is 25 minutes by air from Dakar, whereworldwide air connections are frequent and excellent.  Directflights to London and Brussels operate frequently.  Taxis areavailable at stands; it is advisable to agree on the fare inadvance.Visas:  Visas for American citizens are required and should beobtained before arrival from the Gambian Embassy in Washington,DC, the Gambian UN Missionin New York, or Gambian missions in other countries.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of Public Communication -- Washington,DC -- December 1992 -- Editor:  Gloria BeasleyDepartment of State Publication 8014Background Notes Series -- This material is in the public domainand may be reproduced without permission; citation of this sourceis appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC 20402Contents of this publication are not copyrighted unlessindicated.  If not copyrighted, the material may be reproducedwithout consent; citation of the publication as the source isappreciated.  Permission to reproduce any copyrighted material(including graphics) must be obtained from the original source.</text>
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        <text>GABON BACKGROUND NOTES, AUGUST 1991PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSDEPARTMENT OF STATEAugust 1991Official Name:   Gabonese RepublicPROFILEGeographyArea:  266,024 sq. km. (102,317 sq. mi.); about the size of Colorado.Cities:  Capital--Libreville (pop. 275,000).  Other cities--Port-Gentil,Franceville.Terrain:  Narrow coastal plain; hilly, heavily forested interior; somesavanna regions in east and south.  Climate:  Hot and humid all yearwith two rainy and two dry seasons.PeopleNationality:  Noun and adjective--Gabonese (sing. and pl.).  Population(1990 est.):  1.2 million.  Annual growth rate:  2.2%.  Ethnic groups:Fang (largest), Myene, Bapounou, Eschira, Bandjabi, Bateke/Obamba.Religions:  Christian, Muslim, indigenous.  Languages:  French(official), Fang, Myene, Bateke, Bapounou/Eschira, Bandjabi.  Education:Years compulsory--to age 16.  Attendance--100% primary, 14%secondary/technical, 2% higher education.  Literacy--70%.  Health:Infant mortality rate--103/1,000.  Life expectancy--52 yrs.  Work force(120,000 salaried):  Agriculture--65%.  Industry and commerce--30%.Services and Government--5%.GovernmentType:  Republic.  Independence:  August 17, 1960.  Constitution:February 21, 1961 (revised April 15, 1975; rewritten March 26, 1991).Branches:  Executive--president (head of state).Legislative--unicameral National Assembly (including prime minister,head of government.  Judicial--Supreme Court.Administrative subdivisions:  9 provinces, 37 prefectures, and 9sub-prefectures.Political parties (including number of seats in 120-member Assembly:Parti Democratique Gabonais (PDG-66), Parti Gabonais Du Progres(PGP-19), Rassemblement National Des Bucherons (RNB-17), Morena Originel(MOR-7), Parti Socialist Gabonaise (PSG-4), Union Socialiste Gabonais(USG-3), Association Pour Le Socialism Au Gabon (APSG-2), Parti SocialDemocrat (PSD-1), and Union Pour La Democratie Et Le Developpement(UDD-1).Suffrage: universal, direct.Central government budget (1991 est.)--$1.8 billion.Defense (1991 est.):  2.6% of government budget.Flag:  From top, blue, yellow, and green horizontal bands.EconomyGDP (1991 est.):  $5.3 billion.  Annual growth rate (in current dollars,1991 est.):  13%.  Per capita income (1991 est):  $4,400.  Avg.inflation rate (1990):  7%.Natural resources:  Petroleum (31% of GDP), manganese, uranium, wood,iron ore.Agriculture (8% of GDP):  Products--cocoa, coffee, pineapples.Cultivated land--1%.Industry (4.5% of GDP):  Types--petroleum related, wood processing, foodand beverage processing.Trade (1989 est.):  Exports--$1.8 billion:  petroleum, wood, uranium,manganese.  Major markets--France, US.  Imports--$889 million:construction equipment, machinery, food, automobiles, manufacturedgoods.  Major suppliers--France, Germany, Japan, US.Official exchange rate:  50 CFA (Communaute Financiere Africaine)francs=1 French franc, fixed.Fiscal year:  Calendar year.Membership in International OrganizationsUN and some of its specialized and related agencies, including the WorldBank; Organization of African Unity (OAU); Central African CustomsUnion; EC association under Lome Convention; Communaute FinanciereAfricaine (CFA); Organization of the Islamic Conference (OIC);Nonaligned Movement; Organization of Petroleum Exporting Countries(OPEC).PEOPLEAlmost all Gabonese are of Bantu origin. Gabon has at least 40 tribalgroups, with separate languages and cultures.  The largest is the Fang.Other tribes include the Myene, Bandjabi, Eshira, Bapounou,Bateke/Obamba, and Okande.  Tribal boundaries are less sharply drawn inGabon than elsewhere in Africa. French, the official language, is aunifying force. More French people live in Gabon today than in colonialtimes.Historical and environmental factors caused Gabon's population todecline between 1900 and 1940.  It is one of the less densely inhabitedcountries in Africa, and a labor shortage is a major obstacle todevelopment.  A government census in 1980-81 reported the population at1.2 million, a substantial increase over previous estimates.HISTORYDuring the last 7 centuries, Bantu ethnic groups arrived in the areafrom several directions to escape enemies or find new land.  Little isknown of tribal life before European contact, but tribal art suggestsrich cultural heritages.Gabon's first European visitors were Portuguese traders who arrived inthe 15th century and named the country after the Portuguese word gabao,a coat with sleeve and hood resembling the shape of the Como Riverestuary.  The coast became a center of the slave trade.  Dutch, British,and French traders came in the 16th century.  France assumed the statusof protector by signing treaties with Gabonese coastal chiefs in 1839and 1841.  American missionaries from New England established a missionat Baraka (now Libreville) in 1842.  In 1849, the French captured aslave ship and released the passengers at the mouth of the Como River.The slaves named their settlement Libreville--"free town."  Frenchexplorers penetrated Gabon's dense jungles between 1862-87.  The mostfamous, Savorgnan de Brazza, used Gabonese bearers and guides in hissearch for the headwaters of the Congo River.France occupied Gabon in 1885 but did not administer it until 1903.  In1910, Gabon became one of the four territories of French EquatorialAfrica, a federation that survived until 1959.  The territories becameindependent in 1960 as the Central African Republic, Chad, Congo(Brazzaville), and Gabon.GOVERNMENTUnder the 1961 constitution (revised in 1975 and rewritten in 1991),Gabon became a republic with a presidential form of government.  Theunicameral National Assembly has 120 deputies elected for a 5-year term.The president is elected by universal suffrage, also for a 5-year term.The president appoints the prime minister, the cabinet, and judges ofthe independent Supreme Court.The government in 1990 made major changes in the political system.  Atransi-tional constitution was drafted in May as an outgrowth of a nationalpolitical conference in March-April and later revised by aconstitutional committee.  Among its provisions are a Western-style billof rights; creation of a National Council of Democracy, which overseesthe guarantee of those rights; a governmental advisory board on economicand social issues; and an independent judiciary.  After approval by theNational Assembly, the PDG central committee, and the president, theassembly unani-mously adopted the constitution in March 1991.Multi-party legislative elections were held in September-October 1990 (afew by-elections were held the following spring), despite the fact thatopposition parties had not been declared formally legal.  After apeaceful transition, the elections produced the current representative,multi-party, National Assembly.  In January 1991, the Assembly passed byunanimous vote a law governing the legalization of opposition parties.The president retains strong powers, such as authority to dissolve thenational assembly, declare a state of siege, delay legislation, conductreferenda, and appoint and dismiss the prime minister and cabinetmembers.For administrative purposes, Gabon is divided into 9 provinces, whichare further divided into 36 pre-fectures and 8 separate subprefectures.The president appoints the provincial governors, the prefects, and thesubprefects.Principal Government OfficialsPresident of the Republic, Founder of the Gabonese Democratic Party--ElHadj Omar BongoPrime Minister, Head of Government--Casimir Oye-MbaMinister of Foreign Affairs and Cooperation--Pascaline BongoAmbassador to the United States--Alexandre SambatAmbassador to the United Nations--Laurent BiffotGabon maintains an embassy in the United States at 2034 20th Street NW,Washington, DC 20009 (tel. [phone]).POLITICAL CONDITIONSAt the time of Gabon's independence in 1960, two principal politicalparties existed:  the Bloc Democratique Gabonais (BDG), led by LeonM'Ba, and the Union Democratique et Sociale Gabonaise (UDSG), led byJ.H. Aubame.  In the first post-independence election, held under aparliamentary system, neither party was able to win a majority.  The BDGobtained support from three of the four independent legislativedeputies, and M'Ba was named prime minister.Soon after concluding  that Gabon had an insufficient number of peoplefor a two-party system, the two party leaders agreed on a single list ofcandidates.  In the February 1961 election, held under the newpresidential system, M'Ba became president and Aubame foreign minister. This one-party system appeared to work until February 1963, when thelarger BDG element forced the UDSG members to choose between a merger ofthe parties or resignation.  The UDSG cabinet ministers resigned, andM'Ba called for new elections for February 1964 and a reduced number ofNational Assembly deputies (from 67 to 47).The UDSG failed to muster a list of candidates able to meet therequirements of the electoral decrees.  When the BDG appeared likely towin the elections by default, the Gabonese military toppled M'Ba in abloodless coup on February 18, 1964.  French troops re-established hisgovernment the next day.  Elections were held in April with manyopposition participants.  BDG-supported candidates won 31 seats and theopposition 16.Late in 1966, the constitution was revised to provide for automaticsuccession of the vice president should the president die in office.  InMarch 1967, Leon M'Ba and Omar Bongo (then Albert Bongo) were electedpresident and vice president.  M'Ba died later that year, and Omar Bongobecame president.  In March 1968, he declared Gabon a one-party state bydissolving the BDG and establishing a new party, the Parti DemocratiqueGabonais (PDG).  He invited all Gabonese, regardless of previouspolitical affiliation, to participate.Bongo was elected president in February 1975 and re-elected in Decem-ber1979 and November 1986 to 7-year terms.  In April 1975, the office ofvice president was abolished and replaced by the office of primeminister, who has no right to automatic succession. Under the 1991constitution, in the event of the president's death, the prime minister,the national assembly president, and the defense minister share poweruntil new elections are held.Using the PDG as a tool to submerge the regional and tribal rivalriesthat have divided Gabonese politics in the past, Bongo sought to forge asingle national movement in support of the government's developmentpolicies.  Opposition to the PDG continued, however, and in September1990, two coup attempts were uncovered and aborted.Economic discontent and a desire for political liberalization provokedviolent demonstrations and strikes by students and workers in early1990.  In response to grievances by workers, Bongo negotiated with themon a sector-by-sector basis, making significant wage concessions.In addition, he promised to open up the PDG and to organize a nationalpolitical conference in March-April 1990 to discuss Gabon's futurepolitical system.  The PDG and 74 political organizations attended theconference.  Participants essentially divided into two loose coalitions,the ruling PDG and its allies, and the United Front of OppositionAssociations and Parties,  consisting of the breakaway MorenaFundamental and the Gabonese Progress Party.The April conference approved sweeping political reforms, including:creation of a national senate, decentralization of the budgetaryprocess, freedom of assembly and press, and cancellation of the exitvisa requirement.In an attempt to guide the political system's transformation tomulti-party democracy, Bongo resigned as PDG chairman and created atransitional government headed by a new prime minister, Casimir Oye-Mba.The Gabonese Social Democratic Grouping (RSDG), as the resultinggovernment was called, was smaller than the previous government andincludes representatives from several opposition parties on its cabinet.The RSDG drafted a provisional constitution that provides a basic billof rights and an independent judiciary but retains the strength of thepresident.  After further review by a constitutional committee and theNational Assembly, this document came into force in March 1991.Despite further anti-government demonstrations after the untimely deathof an opposition leader, the first multi-party National Assemblyelections in almost 30 years took place in September-October 1990.ECONOMYGabon has bountiful natural resources, including petroleum, manganese,uranium, iron, and wood.  Because of income from exports of thoseproducts and its small population, Gabon's per capita GNP is the highestin sub-Saharan Africa.  The economy also has benefited from governmentsupport of private enterprise and foreign investment.Petroleum production, estimated to be 14 million tons for 1990, is theheart of the Gabonese economy.  The plunge in oil prices in 1986 hitGabon hard:  exports dropped 44%, and the economy in real termscontracted 10%.  In the late 1980s, Gabon's external accountdeteriorated because of the fall in oil prices, a decline in crude oilexports, and the appreciation of the CFA franc against the US dollar.Gabon implemented an International Monetary Fund (IMF) structuraladjustment program  and rescheduled its public and private debt.Spending cuts stipulated under the 1989 IMF agreement sparked sometimesviolent discontent in early 1990.  In response to strikes by studentsand workers, Bongo rescinded 1989 special salary taxes and promisedmulti-party democracy.Despite damage to the economy by the 1990 strikes, Gabon's economicfuture is potentially bright.  It is one of the few sub-Saharan Africancountries to have a trade surplus in recent years.  Recent discoveriesof new oil fields will increase oil production in the 1990s.  Further,Gabon is trying to diversify its exports.  Already a substantialexporter of manganese and uranium, Gabon is working to exploit itsconsiderable iron and barite deposits and to enhance the value of timberexports from its large forests.Although Gabon exports small amounts of coffee and cocoa, it importsabout 90% of its food.  The country is turning increasingly to importsubstitution, such as a salt mining and operation and food-processingprojects.The government has used oil revenue chiefly to develop transportation.The centerpiece of this program is the $3 billion TransGabon Railway,which has opened the interior rain forests to the sea,  made the Port ofOwendo a major export center for manganese and timber, and providedgreater access to resource-rich areas in the southeast and the west onceinaccessible because of poor roads.Since many Gabonese are traditional or subsistence farmers, thegovernment's investment program is trying to encour-age market-orientedagriculture.  Direct assistance to agricultural projects, complementedby creation of a transport system to the interior, has aided the shift.Although Gabon enjoys a high per- capita income compared to that of mostdeveloping countries, it depends on external sources for investmentcapital and trained labor.  Despite constraints, Gabon's naturalresources promise great potential for continued growth.  Gabon welcomesprivate foreign investors, and its investment law provides substantialconcessions and guarantees.FOREIGN RELATIONSGabon has followed a non-aligned policy, advocating dialogue ininternational affairs and recognizing both parts of divided countries.Since 1973, the number of countries establishing diplomatic relationswith Gabon have doubled.In inter-African affairs, Gabon espouses development by evolution ratherthan revolution and favors regulated free enterprise as the system mostlikely to promote rapid economic growth.  Concerned about stability incentral Africa and the potential for intervention, Gabon has helpedmediate conflicts in countries such as Chad and Angola.DEFENSEGabon has a small, professional military of about 5,000 personnel,divided into army, navy, air force, gendarmerie, and national police.Gabonese forces are oriented to the defense of the country and have notbeen trained for an offensive role.A well-trained, well-equipped 1,800-member guard provides security tothe president.US-GABONESE RELATIONSRelations between the United States and Gabon are excellent.  In 1987,President Bongo made an official visit to Washington, DC.  The UnitedStates imports a considerable percentage of Gabonese crude oil andmanganese and exports heavy construction equipment, aircraft, andmachinery to Gabon.The major US assistance program in Gabon is of a Peace Corps contingentof about 100 volunteers who teach English, math, and science, and buildrural schools.  Through a modest International Military Education andTraining program, the United States provides military training tomembers of the Gabonese armed forces each year.  Foreign military salescredits have been extended to Gabon since 1981.US private capital has been attracted to Gabon since before itsindependence.  Investment exceeds $600 million.Principal US OfficialsAmbassador--Keith L. WauchopeDeputy Chief of Mission--Stephen G. BrundagePublic Affairs Officer (USIS)--Jan HartmanPolitical Officer--Alexander AndrewsPeace Corps Director--Francis T. HammondThe US Embassy is located on the Blvd. de la Mer, B.P. 4000, Libreville,Gabon (tel: [phone]; fax: [phone]).Customs:  Visas are required and can be obtained from the GaboneseEmbassy in Washington, DC.  Yellow fever inoculations are required.Health requirements change; check latest information.Climate and clothing:  Libreville is hot and humid most of the year.Wear lightweight summer clothes.  Bring light sweaters for cool eveningsduring the June-August dry season.Health:  Hospitals and private clinics are available throughout most ofthe country for common problems.  Major cities have private doctors;several are US-trained.  Residents and visitors are advised to takeregular preventative medication against malaria.  Avoid raw fruits andvegetables and undercooked meats.  Tapwater is not always potable.Telecommunications:  Local and long-distance telephone service isavailable 24 hours.  International telephone rates are about 10 timeshigher than in the US. Libreville is six time zones ahead of easternstandard time.Transportation:  Libreville has no public bus service.  Taxis areplentiful along the major routes.  Rides may be shared at a substantialsaving.  Air Gabon and several charters operate one of the densestdomestic air networks in Africa.  Most major population centers arelinked by jet aircraft.  An international airport at Libreville providesservice to regional African points, particularly in Francophone Africa.Air Gabon and several European carriers provide frequent wide-bodyflights to Europe from Libreville.National Holidays:  August 17, Independence Day; major Islamic andChrisitan holidays.</text>
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        <text>U.S. Department of State Background Notes:  France, October 1995 Bureau of Public Affairs   October 1995 Official Name:  French Republic  Geography  Area:  551,670 sq. km.  (220,668 sq. mi.); largest West European country, about four-fifths the size of Texas. Cities:  Capital--Paris.  Other cities--Marseille, Lyon, Toulouse, Strasbourg, Nice, Bordeaux. Terrain:  Varied. Climate:  Temperate; similar to that of the eastern U.S.  People  Nationality:  Adjective--French. Population:  58 million. Annual growth rate:  0.5%. Ethnic groups:  Celtic and Latin with Teutonic, Slavic, North African, Indochinese, and Basque minorities. Religion:  Roman Catholic 90%. Language:  French. Education:  Years compulsory--10. Literacy--99%. Health:  Infant mortality rate--7/1,000. Work force (25 million):  Services--66%.  Industry and commerce--28%.  Agriculture--6%.  Government  Type:  Republic. Constitution:  September 28, 1958. Branches:  Executive--president (chief of state); prime minister (head of government).  Legislative--bicameral parliament (577-member National Assembly, 319-member Senate).  Judicial--Court of Cassation (civil and criminal law), Council of State (administrative court), Constitutional Council (constitutional law). Subdivisions:  22 administrative regions containing 96 departments (metropolitan France).  Four overseas departments (Guadeloupe, Martinique, French Guiana, and Reunion); five overseas territories (New Caledonia, French Polynesia, Wallis and Futuna Islands, and French Southern and Antarctic Territories); and two special status territories (Mayotte and St. Pierre and Miquelon). Political parties:  Rally for the Republic (Gaullists/conservatives); Union for French Democracy (center-right); Socialist Party; Republican Party (center-right); Communist Party; National Front; Greens; Ecology Generation; various minor parties. Suffrage:  Universal at 18.  Economy (1994)  GDP:  $1.3 trillion. Avg. annual growth rate:  2.4%. Per capita GDP:  $24,900. Agriculture:  Products--wine, cheeses, cereals, sugar beets, potatoes, and beef. Industry:  Types--aircraft, electronics, transportation, textiles, clothing, food processing, chemicals, machinery, steel.  Trade (est.):  Exports--$235 billion:  chemicals, electronics, automobiles, automobile spare parts, machinery, aircraft, foodstuffs.  Imports--$219 billion:  crude petroleum, electronics, machinery, chemicals, automobiles, automobile spare parts.  Partners--EU, U.S., Japan.  PEOPLE  Since prehistoric times, France has been a crossroads of trade, travel, and invasion.  Three basic European ethnic stocks--Celtic, Latin, and Teutonic (Frankish)--have blended over the centuries to make up its present population.  France's birth rate was among the highest in Europe from 1945 until the late 1960s.  Since then, its birth rate has fallen but remains higher than that of most other West European countries.  Traditionally, France has had a high level of immigration.  About 90% of the people are Roman Catholic, less than 2% are Protestant, and about 1% are Jewish.  More than 1 million Muslims immigrated in the 1960s and early 1970s from North Africa, especially Algeria.  At the end of 1994, there were about 4 million persons of Muslim descent living in France.  Education is free, beginning at age two, and mandatory between ages six and 16.  The public education system is highly centralized.  Private education is primarily Roman Catholic.  Higher education in France began with the founding of the University of Paris in 1150.  It now consists of 69 universities and special schools, such as the Grandes Ecoles, technical colleges, and vocational training institutions.  The French language derives from the vernacular Latin spoken by the Romans in Gaul, although it includes many Celtic and Germanic words.  French has been an international language for centuries and is a common second language throughout the world.  It is one of five official languages at the United Nations.  In Africa, Asia, the Pacific, and the West Indies, French has been a unifying factor, particularly in those countries where it serves as the only common language among a variety of indigenous languages and dialects.  HISTORY  France was one of the earliest countries to progress from feudalism into the era of the nation-state.  Its monarchs surrounded themselves with capable ministers, and French armies were among the most innovative, disciplined, and professional of their day.  During the reign of Louis XIV (1643-1715), France was the dominant power in Europe.  But overly ambitious projects and military campaigns of Louis and his successors led to chronic financial problems in the 18th century.  Deteriorating economic conditions and popular resentment against the complicated system of privileges granted the nobility and clerics were among the principal causes of the French Revolution (1789-94).  Although the revolutionaries advocated republican and egalitarian principles of government, France reverted to forms of absolute rule or constitutional monarchy four times--the Empire of Napoleon, the Restoration of Louis XVIII, the reign of Louis-Philippe, and the Second Empire of Napoleon III.  After the Franco-Prussian War (1870), the Third Republic was established and lasted until the military defeat of 1940.  World War I (1914-18) brought great losses of troops and materiel.  In the 1920s, France established an elaborate system of border defenses (the Maginot Line) and alliances to offset resurgent German strength.  France was defeated early in World War II, however, and occupied in 1940.  The German victory left the French groping for a new policy and new leadership suited to the circumstances.  On July 10, 1940, the Vichy Government was established.  Its senior leaders acquiesced in the plunder of French resources, as well as the sending of French forced labor to Germany; in doing so, they claimed they hoped to preserve at least some small amount of French sovereignty.  The German occupation proved quite costly, however, as a full one-half of France's public sector revenue was appropriated by Germany.  After four years of occupation and strife, Allied forces liberated France in 1944.  A bitter legacy carries over to the present day.  A nation-wide debate has emerged over how much responsibility France should bear for the crimes and collaborations of the Vichy regime.  France emerged from World War II to face a series of new problems.  After a short period of provisional government initially led by Gen. Charles de Gaulle, the Fourth Republic was set up by a new constitution and established as a parliamentary form of government controlled by a series of coalitions.  The mixed nature of the coalitions and a consequent lack of agreement on measures for dealing with Indochina and Algeria caused successive cabinet crises and changes of government.  Finally, on May 13, 1958, the government structure collapsed as a result of the tremendous opposing pressures generated in the divisive Algerian issue.  A threatened coup led the parliament to call on General de Gaulle to head the government and prevent civil war.  He became Prime Minister in June 1958 (at the beginning of the Fifth Republic) and was elected President in December of that year.  Seven years later, in an occasion marking the first time in the 20th century that the people of France went to the polls to elect a president by direct ballot, de Gaulle won re-election with a 55% share of the vote, defeating Francois Mitterrand.  In April 1969, President de Gaulle's government conducted a national referendum on the creation of 21 regions with limited political powers.  The government's proposals were defeated, and de Gaulle subsequently resigned.  Succeeding him as President of France have been Gaullist Georges Pompidou (1969-74), Independent Republican Valery Giscard d'Estaing (1974-81), Socialist Francois Mitterrand (1981-95), and neo-Gaullist Jacques Chirac (elected in spring 1995).  President Mitterrand's second seven-year term ended in May 1995.  During his tenure, he stressed the importance of European integration and advocated the ratification of the Maastricht Treaty on European economic and political union, which France's electorate narrowly approved in September 1992.  President Jacques Chirac has vowed that fighting unemployment (more than 11% overall; 25% among younger, unskilled workers) will be his top priority.  GOVERNMENT  The constitution of the Fifth Republic was approved by public referendum on September 28, 1958.  It greatly strengthened the authority of the executive in relation to parliament.  Under the constitution, the president is elected directly for a seven-year term.  Presidential arbitration assures regular functioning of the public powers and the continuity of the state.  The president names the prime minister, presides over the cabinet, commands the armed forces, and concludes treaties.  The president may submit questions to a national referendum and can dissolve the National Assembly.  In certain emergency situations, the president may assume full powers.    Besides the president, the other main component of France's executive branch is the cabinet.  Headed by the prime minister, who is the nominal head of government, the cabinet is composed of a varying number of ministers, minister-delegates, and secretaries of state.  Parliament meets in regular session twice annually for a maximum of three months on each occasion.   Special sessions are common.  Although parliamentary powers are diminished from those existing under the Fourth Republic, the National Assembly can still cause a government to fall if an absolute majority of the total Assembly membership votes to censure.  The National Assembly is the principal legislative body.  Its deputies are directly elected to five-year terms, and all seats are voted on in each election.  Senators are chosen by an electoral college for nine-year terms, and one-third of the Senate is renewed every three years.  The Senate's legislative powers are limited; the National Assembly has the last word in the event of a disagreement between the two houses.  The government has a strong influence in shaping the agenda of parliament.  The government also can link its life to any legislative text, and unless a motion of censure is introduced and voted, the text is considered adopted without a vote.  The most distinctive feature of the French judicial system is that it is divided into the Constitutional Council and the Council of State.  The Constitutional Council examines legislation and decides whether it conforms to the constitution.  Unlike the U.S. Supreme Court, it only considers legislation that is referred to it by parliament, the prime minister, or the president; moreover, it considers legislation before it is promulgated.  The Council of State has a separate function from the Constitutional Council and provides recourse to individual citizens who have claims against the administration.  Traditionally, decision-making in France has been highly centralized, with each of France's departments headed by a prefect appointed by the central government.  In 1982, the national government passed legislation to decentralize authority by giving a wide range of administrative and fiscal powers to local elected officials.  In March 1986, regional councils were directly elected for the first time.  Principal Government Officials  President--Jacques Chirac Prime Minister--Alain Juppe Ambassador to the United States--Francois Bujon de l'Estang Ambassador to the United Nations--Alain Dejammet  France maintains an embassy in the U.S. at 4101 Reservoir Rd. NW, Washington, DC  20007 (tel. [phone]).  POLITICAL CONDITIONS  France held presidential elections in the spring of 1995.  The victor, Jacques Chirac of Rally for the Republic (RPR), assumed the presidency on May 17, 1995.  It was the third presidential race for Chirac, the former mayor of Paris and a 30-year fixture on the French political scene.  Shortly after the final results were announced, Chirac selected his long time RPR ally, Foreign Minister Alain Juppe, to be the next Prime Minister.  Chirac's other cabinet choices reflect his emphasis on economic recovery, combating unemployment, and repairing the welfare safety net.  France's political system combines a strong executive--in the person of the president--with a parliamentary system that includes a powerful prime minister.  This hybrid system can result in the president and prime minister being from different parties, a situation known in France as a "cohabitation government."  Chirac's assumption of the presidency marked an end to the two-year cohabitation government of Socialist President Francois Mitterrand and the center-right government headed by Prime Minister Edouard Balladur.  Thus, the Chirac victory completes the turnover of the government to the conservatives that began with the March 1993 landslide (80%) victory for the conservative coalition in the parliamentary elections (484 out of 577 Assembly seats).  Chirac's margin of victory over his Socialist opponent, Lionel Jospin, in the second and final round of the presidential elections was much smaller (53% to 47%) than conservatives' margin in the 1993 legislative elections, leading to optimism on the part of the French left that it will improve its representation in the National Assembly in the next round of parliamentary elections, which must be held before April 1998.  ECONOMY  With a 1994 GDP of more than $1.3 trillion, France is the fourth-largest Western industrialized economy.  It has substantial agricultural resources, a diversified modern industrial system, and a highly skilled labor force.  In 1994, France's economic growth rate was 2.4%.  The estimated growth rate for 1995 is 3.1%.  Government policy stresses investment promotion and maintenance of fiscal and monetary discipline.  It seeks to ensure the franc's stability and strength within the European Monetary System.  The government continues to exert considerable control over the industrial sector both through planning and regulatory activities and through direct state ownership, although a modest privatization program has been implemented.  This policy has helped keep France's inflation rate (1.6% in 1994) low compared with rates among the other Group of Seven (G-7) industrial countries.  One main area of concern, however, continues to be an unemployment rate that is now over 11%.  France's well-developed and diversified industrial enterprises generate about one-third of the GDP and employ about one-third of the workforce.  This distribution is similar to that of other highly industrialized nations.  The most important areas of industrial production include steel and related products, aluminum, chemicals, and mechanical and electrical goods.  France also has been very successful in developing dynamic telecommunications, aerospace, and weapons sectors.  With virtually no domestic oil production, France has relied heavily on the development of nuclear power, which now produces about 75% of the country's electrical energy.  Nuclear waste is stored on site at reprocessing facilities.  Membership in France's labor unions accounts for about 10% of the workforce.  Included in the composition of the several competing union confederations are the largest, oldest, and most powerful unions:  the Communist-dominated General Labor Confederation, the Workers' Force, and the French Democratic Confederation of Labor.  Trade  France is the second-largest trading nation in Western Europe (after Germany).  In 1993, France achieved a record trade surplus, about $15 billion.  The surplus was partly attributable to the surge in exports due to greater competitiveness of French products, which, in turn, was partly due to low domestic inflation and wage costs.  For 1994, the country's trade surplus rose even higher, to about $16 billion.  Its total trade for 1994 amounted to more than $450 billion.  Trade with European Union (EU) countries accounts for 60% of French trade.  In 1994, U.S.-France trade totaled about $33 billion.  U.S. exports accounted for 8.5% (or about $18 billion) of France's total imports.  U.S. electronic production and testing equipment, electronic components, telecommunications, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies, broadcasting equipment, and film programming and franchising are particularly attractive to French importers.  Principal French exports to the United States are aircraft and engines, beverages, electrical equipment, chemicals, cosmetics, and pet-care products.  Agriculture  Good climate, fertile land, and modern technology have combined to make France the leading agricultural producer in Western Europe.  It is one of the world's leading producers and exporters of dairy products, wheat, and wine.  Although more land is devoted to pasture and grain, some of France's best land is planted in wine grapes.  FOREIGN RELATIONS  A charter member of the United Nations, France holds one of the permanent seats in the Security Council and is a member of most of its specialized and related agencies.  Europe.  France is a leader in Western Europe because of its size, location, strong economy, membership in European organizations, strong military posture, and energetic diplomacy.  France generally has worked to strengthen the global economic and political influence of the EU and its role in common European defense.  It views Franco-German cooperation as the foundation of efforts to enhance European security.  President Chirac has declared his support for eventual implementation of economic and monetary union and is committed to maintaining France's central role in the EU.  France remains a firm supporter of the Organization for Security and Cooperation in Europe (OSCE) and other efforts at cooperation.  France has assumed a leading role in trying to resolve the conflict in the former Yugoslavia.  Its troops represent the largest contingent of the UN Protection Force stationed in the area.  Furthermore, a number of French organizations have played an active role in providing humanitarian assistance to victims of the war.  Middle East.  France supports the Middle East Peace Process as revitalized by the 1991 Madrid peace conference.  In this context, France backed the establishment of a Palestinian homeland and the withdrawal of Israel from all occupied territories.  Recognizing the need for a comprehensive peace agreement, France supports the involvement of Syria, Lebanon, Jordan, and the Palestinians and Israel in a multilateral peace process.  France has been active in promoting a regional economic dialogue and has played an active role in providing assistance to the Palestinian Authority.  Africa.  France plays a significant role in Africa, especially in its former colonies, through extensive aid programs, commercial activities, military agreements, and cultural impact.  Key advisory positions are staffed by French nationals in many African countries.  In those former colonies where the French presence remains important, France contributes to political, military, and social stability.  Asia.  France has extensive commercial relations with Asian countries, including China, South Korea, Indonesia, and Japan (which presents serious competition in automobiles, electronics, and machine tools).  France has taken a leading role in efforts to achieve a settlement to the Cambodian conflict, and, at the Tokyo Conference in June 1992, French and American leaders met to discuss Cambodian reconstruction.  France is also seeking to broaden its commercial influence in Vietnam and Laos.  Latin America.  France supports strengthening democratic institutions in Latin America.  It supports the ongoing efforts to restore democracy to Haiti and has agreed to participate in Phase II of the UN Mission in Haiti.  Security Issues.  French military doctrine is based on the concepts of national independence, nuclear deterrence, and military sufficiency.  France is a charter signatory to the North Atlantic Treaty and is a member of the North Atlantic Council and its subordinate institutions.  Since 1966, it has not participated in the North Atlantic Treaty Organization (NATO) integrated military command structure, although it remains a member of some alliance military bodies.  The French army currently is undergoing a major reorganization which aims at reducing personnel, garrisons, and headquarters; enlarging a reduced number of corps and divisions; and modernizing equipment.  In 1993, the French armed forces numbered about 270,000; in 1997, after restructuring, the level will be 227,000.  France's foremost arms control concern relates to the worldwide proliferation of ballistic missiles, nuclear technologies, and conventional weapons.  In each of these areas, France has worked closely with the United States in a determined effort to preclude such advanced technologies from spreading to unstable regions.  Moreover, it has actively participated in the Conventional Armed Forces in Europe (CFE) process and the Geneva Conference on Disarmament.  President Chirac announced in June 1995 his decision that France would complete a series of eight nuclear tests in 1995 and 1996.  The French Government indicates that these tests are designed to ensure the safety and reliability of the French nuclear weapons force.  President Chirac has underlined France's commitment to negotiate and sign a Comprehensive Test Ban Treaty by the end of 1996.  U.S.-FRENCH RELATIONS  Relations between the United States and France are active and cordial.  Mutual visits by high-level officials are conducted on a regular basis.  Bilateral contact at the cabinet level has traditionally been active. France and the United States share common values and have parallel policies on most political, economic, and security issues. Differences are discussed frankly and have not been allowed to impair the pattern of close cooperation that characterizes relations between the two countries.  Principal U.S. Embassy Officials  Ambassador--Pamela Harriman Deputy Chief of Mission--Avis T. Bohlen Minister-Counselor for Political Affairs--William Bellamy Minister-Counselor for Economic Affairs--John Medeiros Financial Attache--Sara Paulsen Minister-Counselor for Commercial Affairs--Peter Frederick Counselor for Labor Affairs--Vacant Counselor for Scientific and Technological Affairs--Jerome J. Bosken Minister-Counselor for Consular Affairs--James L. Ward Minister-Counselor for Administrative Affairs--Charles R. Allegrone Minister-Counselor for Public Affairs--Christopher Snow Defense Attache--Col. Daniel Larned (U.S. Army)  Consuls General  Consulate General, Marseille--Jackson C. McDonald Consulate General, Bordeaux--Alan Eastham, Jr. Consulate General, Strasbourg--Shirley E. Barnes  The U.S. embassy in France is located at 2 Avenue Gabriel, Paris 8 (tel. [33] (1) 4312-2222).  The United States also is represented in Paris by its mission to the Organization for Economic Cooperation and Development.  TRAVEL AND BUSINESS INFORMATION  The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, tel. [phone].  Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].  While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (see "Principal Government Officials" listing in this publication).  Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.  Further Electronic Information:  Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.  Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:  Gopher:  dosfan.lib.uic.edu URL:  gopher://dosfan.lib.uic.edu/ WWW:  http://dosfan.lib.uic.edu/dosfan.html  U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].  Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].  National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.  ======================================== Background Notes Series  --  Published by the United States Department of State  --  Bureau of Public Affairs  --  Office of Public Communication  --  Washington, DC  --  Series Editor:  Marilyn J. Bremner  France  --  Department of State Publication 8209  --  October 1995  This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC  20402. (###)</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  FINLANDOFFICIAL NAME:  Republic of FinlandPROFILEGeographyArea: 337,113 sq. km. (130,160 sq. mi.); about the size of NewEngland, New Jersey, and New York combined. Cities:Capital-Helsinki (pop. 484,399). Other cities-Tampere (167,335),Turku (163,655). Terrain: Low but hilly, more than 70% forested, withmore than 60,000 lakes. Climate: Cool; mean annual temperature inHelsinki (1977-86) +5 C (41 F); July +17  C (63 F); January -6 C (21 F).PeopleNationality: Noun-Finn(s). Adjective-Finnish. Population (1989):4,971,844. Annual growth rate (1989): 0.4%. Ethnic groups: Finns,Swedes, Lapps, Gypsies, Tartars. Religions (1987): Lutheran 88.7%,Orthodox 1.1%. Languages: Finnish 93.6%, Swedish 6%. Education:Years compulsory-9. Attendance-almost 100%. Literacy-almost 100%.Health (1989):  Infant mortality rate-6/1,000. Life expectancy-males71 yrs., females 79 yrs. Work force (1989, 2,559,000):Agriculture-8.7%. Industry, commerce, and finance-53.3%. Services(public and personal)-24.7%.  Government-5.4%.  Transport (storageand communication)-7.1%.GovernmentType: Constitutional republic. Constitution: July 17, 1919.Independence: December 6, 1917.Branches: Executive-president (chief of state), prime minister (headof government), Council of State (cabinet).  Legislative-Unicameralparliament.  Judicial-Supreme Court, regional appellate courts, localcourts.Subdivisions: 12 provinces, provincial self-rule for the Aland Islands.Political parties: Four largest, in order: Social Democratic Party(SDP), National Coalition (Conservative) Party, Center Party, LeftistAlliance.Central government budget (1989): $28.91 billion.Defense (1989): 1.4% of GDP.Flag: Light blue cross on a white field.EconomyGDP (1989): $114.9 billion.  Annual growth rate: 5% (GDP).  Percapita income (1989 est.): $23,153.  Inflation rate (1989): 6.6%.Natural resources: Forests, minerals (copper, zinc, iron), farmland.Agriculture (3% of GDP): Products-meat (pork and beef), grain(wheat, rye, barley, oats), dairy products, potatoes, rapeseed.Industry (27% of GDP): Types-metal and steel, forest, foodstuffs,textile and clothing.Trade (1989): Exports-$23.2 billion: paper and paperboard,machinery and equipment, ships, lumber, woodpulp, chemicals.Major markets-USSR 14.5%, Sweden 14.4%, UK 12%, FRG 10%, US6.4%.  Imports-$24.6 billion: fuels and lubricants, machinery andequipment, including motor vehicles, basic manufactures, chemicals;foodstuffs.  Major suppliers-FRG 17.3%, Sweden 13.6%, USSR11.4%, US 6.3%.Official exchange rate (1989): 4.295 Finnmarks=US$1.Fiscal year: Calendar year.Membership in International OrganizationsUN and some of its specialized and related agencies, including theInternational Bank for Reconstruction and Development (IBRD),International Monetary Fund (IMF), General Agreement on Tariffs andTrade (GATT), International Finance Corporation (IFC), InternationalDevelopment Association (IDA); Bank for International Settlements(BIS); Asian Development Bank; Inter-American Development Bank(IDB); Council of Europe; Nordic Council; European Free TradeAssociation (EFTA); European Community (EC)-free tradeagreement; Organization for Economic Cooperation andDevelopment (OECD); INTELSAT.PEOPLEThe origins of the Finnish people are still a matter of conjecture,although most scholars agree that their original home was in what isnow west-central Siberia. The Finns arrived in their present territorythousands of years ago, pushing the indigenous Lapps into the moreremote northern regions.The Finnish language is Finno-Ugric, of the Uralic language family (ofwhich Hungarian and Estonian also are a part) and notIndo-European. Lappish, the language of the small Lapp minority,also is Finno-Ugric.Swedish became the dominant language following Finland'sincorporation into Sweden in the 12th century. Finnish recovered itspredominance after a resurgence of Finnish nationalism in the 19thcentury. Today, although 94% of the people speak Finnish as a firstlanguage, both Finnish and Swedish are official languages.The population is ethnically homogeneous with no sizable immigrantpopulation.  Few tensions exist between the Finnish-speakingmajority and the Swedish-speaking minority.Finns are highly literate, and poetry has played a key role in Finnishhistory. Publication in 1835 of the Finnish national epic, The Kalevala,a collection of traditional myths and legends, first stirred thenationalism that led to independence in 1917.An important theme in Finnish literature is humanity's unity withnature, which identifies human fate with impersonal forces and whichgives Finnish literature a somber, sometimes tragic, sometimesheroic, tone. Another theme is the importance of the commonpeople-the Finnish folk. One of the country's major writers, FransEmil Sillanpaa, received the Nobel Prize for literature in 1939.Finland is one of the most active publishing countries in the world.Although major literary works have been translated into English,Finnishmusic, because it does not require translation, is better known.  Thisis especially true of the works of Jean Sibelius who, along with manyother Finnish artists, was profoundly influenced by The Kalevala.Finns also are outstanding in other artistic fields; their jewelry, textile,glass, and furniture designs have gained prominence throughout theworld.Finland enjoys complete religious freedom as well as free educationthrough the university level. An extensive social welfare system,constituting about one-fifth of the national income, includes a varietyof pension and assistance programs and a comprehensive healthinsurance program. In the mid-1970s, the educational system was reformed with thegoal of equalizing educational opportunities. Beginning at age 7, allFinnish children are required to attend a "basic school" of nine gradelevels. After this, they may elect to continue along an academic(lukio) or vocational (ammattikoulu) line. However, most pursuevocational studies. About one child in four receives a highereducation in this highly competitive system.  The number of openingsin higher educational institutions is less than the demand.HISTORYFinland's nearly 700-year association with the  Kingdom of Swedenbegan in 1154 with the introduction of Christianity by Sweden's KingEric. During the ensuing centuries, Finland played an important rolein the political life of the Swedish-Finnish realm, and Finnish soldiersoften predominated in Swedish armies. Finns also formed asignificant proportion of the first "Swedish" settlers in 17th-centuryAmerica.In 1809, Finland was conquered by the armies of Czar  Alexander Iand thereafter remained an autonomous grand duchy connected withthe Russian Empire until the end of 1917. On December 6, 1917,shortly after the Bolshevik Revolution in Russia, Finland declared itsindependence. In 1918, Finland experienced a brief but bitter civil warthat colored domestic politics for many years.During World War II, Finland fought the Soviet Union twice-in theWinter War of 1939-40 and again in the Continuation War of 1941-44.This was followed by the Lapland War from 1944-45 when Finlandfought against the Germans as they withdrew their forces fromnorthern Finland.The Treaty of Peace, signed at Paris on February 10, 1947, limitedthe size of Finland's defense forces and provided for the cession tothe Soviet Union of the Petsamo area on the Arctic coast, theKarelian Isthmus in southeastern Finland, and other territory alongthe former eastern border. Another provision, terminated in 1956,leased the Porkkala area near Helsinki to the USSR. for use as anaval base and gave free access to this area across Finnish territory.The peace treaty also called for Finland to pay to the Soviet Unionreparations of 300 million gold dollars (amounting to an estimated$570 million in 1952, the year the payments ended). The UnitedStates was not a signatory to the treaty because it had not been atwar with Finland.GOVERNMENTUnder the Finnish constitution, political power is divided between theEduskunta (parliament) and the president of the republic, with thehighest executive power vested in the president.Elected for a 6-year term, the president:-- Handles foreign policy, except for certain international agreementsand decisions of peace or war, which must be submitted toparliament;-- Is commander in chief of the armed forces and has wide decreeand appointive powers;--  May initiate legislation, block legislation by pocket veto, and callextraordinary parliamentary sessions; and-- Appoints the cabinet.The Council of State is made up of the prime minister and ministersfor the various departments of the central government as well as anex-officio member, the Chancellor of Justice. Ministers are notobliged to be members of the Eduskunta and need not be formallyidentified with any political party.Constitutionally, the 200-member, unicameral Eduskunta is thesupreme authority in Finland.  It may alter the constitution, bringabout the resignation of the Council of State, and overridepresidential vetoes; its acts are not subject to judicial review.Legislation may be initiated by the president, the Council of State, orone of the Eduskunta members.The Eduskunta is elected on the basis of proportional representation.All persons 18 or older, except military personnel on active duty anda few high judicial officials, are eligible for election. The regularparliamentary term is 4 years; however, the president may dissolvethe Eduskunta and order new elections at any time.The judicial system is divided between courts with regular civil andcriminal jurisdiction and special courts with responsibility for litigationbetween the public and the administrative organs of the state. Finnishlaw is codified. Although there is no writ of habeas corpus or bail, themaximum period of pre-trial detention was recently reduced to 4days. The Finnish court system consists of local courts, regionalappellate courts, and a supreme court.Finland's 12 provinces are divided into cities, townships, andcommunes administered by municipal and communal councilselected by proportional representation once every 4 years. The 11mainland provinces are administered by provincial boards composedof civil servants and each headed by a presidentially appointedgovernor. The boards are responsible to the Ministry of the Interiorand play a supervisory and coordinating role within the provinces.The island province of Aaland is located near the 60th parallelbetween Sweden and Finland. It enjoys local autonomy by virtue ofan international convention of 1921, implemented most recently bythe Act on Aaland Self-Government of 1951. The islands are furtherdistinguished by the fact that they are entirely Swedish speaking.Government is vested in the provincial council, which consists of 30delegates elected directly by Aaland's citizens.Principal Government OfficialsPresident-Mauno KoivistoPrime Minister- Harri HolkeriForeign Minister-Pertti PaasioAmbassador to the United States-Jukka ValtasaariAmbassador to the United Nations-Klaus TornuddFinland maintains an embassy in the United States at 3216 NewMexico Avenue, NW, Washington, DC 20016 (tel. [phone]).POLITICAL CONDITIONSFinland's proportional representation system encourages a multitudeof political parties and has resulted in many coalition governments.Political activity by communists was legalized in 1944. Although fourmajor parties have dominated the postwar political arena, none hasa majority position. The largest is the Social Democratic Party (SDP),which commands the support of nearly 25% of the electorate, mainlyamong the urban working class but also with some support amongsmall farmers, white-collar workers, and professionals. The SDP'srival on the left is the Leftist Alliance, formed in May 1990, whichreplaces the People's Democratic League (SKDL), the parliamentarygroup in the Eduskunta that represented the Finnish CommunistParty. The SKDL's parliamentary effectiveness and potentialparticipation in government were impaired, however, by the deepsplit in the Communist Party between its "moderate" majority and"hardline" minority.The two other major parties are the Center Party, traditionallyrepresenting rural interests, and the Conservative Party, which drawsits major support from the business community and urbanprofessionals.In the February 1988 election, President Koivisto won a new 6-yearterm.  Parliamentary elections in March 1987 led to the formation ofa "red-blue" coalition government that includes both the SDP and theNational Coalition (Conservative) Party.ECONOMYFinland has a dynamic industrial economy based on abundant forestresources, capital investments, and technology. In the 1980s,Finland's economic growth rate was one of the highest ofindustrialized countries.  Exports contribute more than 20% of thegross domestic product (GDP); combined exports of goods andservices amount to about 25% of GDP.  Exports and imports ofgoods total about 40% of GDP.  Timber and steel are the mainindustries, but other industries produce manufactured goods rangingfrom electronics to motor vehicles.  Finnish-designed consumerproducts such as textiles, porcelain, and glassware are worldfamous.Finland is self-sufficient in dairy products and meats, as well as ingrains in good harvest years, but it imports large amounts of fruitsand vegetables.  Farms tend to be small, but sizable timber standsare harvested for supplementary income in winter.Except for timber and several minerals, Finland depends on importedraw materials, energy, and some components for its manufacturedproducts.  Traditionally, Finland is a net importer of capital to financeindustrial growth.Finland imported 70% of its energy in 1989.  Oil imports met 31% ofFinnish requirements while nuclear power provided 15%, coal 11%,and natural gas 6%.  Domestic energy sources include hydroelectricpower, peat, and wood products.DEFENSEFinland's active duty defense forces are limited by the 1947 Treatyof Peace to 41,900 troops (army 34,400, navy 4,500, air force 3,000).The country has military conscription under which all young menserve from 8 to 11 months. A reserve force of about 700,000 ensuresreadiness as one means of deterring involvement in war. The basictenet of Finnish security policy is that, while foreign policy isimportant, the nation's ability to defend itself is a prerequisite for asuccessful policy of neutrality.FOREIGN RELATIONSFinland's basic foreign policy goal since 1944 has been to avoidgreat-power conflicts and to build mutual confidence with the SovietUnion.  Although the country is culturally, socially, and politicallyWestern, Finns realize they must live in peace with the USSR andtake no action that might be interpreted as a security threat.The principal architect of the post-1944 foreign policy was J.K.Paasikivi, who was president from 1946 to 1956.  Urho Kekkonen,president from 1956 until 1981, further developed this policy,stressing that Finland should be an active rather than a passiveneutral. This policy is now popularly known as the"Paasikivi-Kekkonen Line."In April 1948, Finland signed an Agreement of Friendship,Cooperation, and Mutual Assistance with the Soviet Union, underwhich Finland is obligated (with the aid of the Soviet Union, ifnecessary) to resist armed attacks by Germany or its allies againstFinland, or against the USSR through Finland. At the same time, theagreement recognizes Finland's desire to remain outside great-powerconflicts. This agreement was renewed for 20 years in 1955, againin 1970, and most recently in 1983 to the year 2003.Finland joined the United Nations and the Nordic Council in 1955, isa full member of the European Free Trade Association, and in 1973signed a free trade agreement with the European Community. It alsohas entered into free trade agreements with Czechoslovakia,Bulgaria, Hungary, Poland, and the German Democratic Republic; a15-year economic cooperation agreement with the Soviet Union, lastextended in 1980; and a cooperation agreement with the Council forMutual Economic Assistance.Finland also emphasizes cooperation with the other Scandinaviancountries and has been a member of the Nordic Council since 1955.Under the council's auspices, the Nordic countries have created acommon labor market andhave abolished immigration controls among themselves. The councilalso serves to coordinate social and cultural policies of theparticipating countries and has promoted increased cooperation inmany fields.In recent years, Finland has emphasized its participation ininternational organizations. In proportion to its population, Finland iswell represented in the UN civil service. Finnish troops haveparticipated in UN peacekeeping activities since 1956 and Finns nowserve with UN forces in the Middle East and with the UN goodoffices mission in Afghanistan.Finland has hosted major international meetings such as the first andfinal stages of the Conference on Security and Cooperation inEurope (CSCE). The summit-level CSCE meeting in July and August1975 brought 35 heads of state from Europe and North America toHelsinki for a conference unique in diplomatic history.  Finland alsohosted a 10th anniversary CSCE commemorative meeting in thesummer of 1985 and will host the next CSCE review meeting in 1992.US-FINNISH RELATIONSRelations between Finland and the United States are cordial. It hasbeen longstanding US policy to support Finnish neutrality whilemaintaining and reinforcing Finland's historic, cultural, and economicties with the West. Economic and trade relations between Finlandand the United States are active.  President Reagan proclaimed 1988the Year of US-Finnish Friendship.The US educational exchange program in Finland, comparativelylarge for a West European country of Finland's size, is financed inpart from a trust fund established in 1976 from Finland's finalrepayment of a US loan made in the aftermath of World War I.Principal US OfficialsAmbassador-John Giffen WeinmannDeputy Chief of Mission-Max N. RobinsonPublic Affairs Officer-William P. KiehlChief, Political Section-William KushlisChief, Administrative Section-William J. Burke, Jr.Defense and Air Attache-William A.J. MackieChief, Economic Section-Lawrence E. ButlerCommercial Attache-Donald G. Plants (Acting)Consul-Robert O. TatgeThe US Embassy in Finland is at Itainen Puistotie 14 B, Helsinki 14(tel. 171931). The public affairs section is located at Kaivokatu 10 A,Helsinki 10 (tel. 176599).TRAVEL NOTES:Climate and clothing: Helsinki's winter climate is similar to Boston's;summer temperatures rarely exceed +24 C (75 F). Northern andparts of interior southern Finland sometimes experience Arcticconditions in mid-winter. Buildings are well-heated. Bring warmoutdoor clothing during late autumn, winter, and early spring.Sweaters and raincoats are recommended for other seasons.Health: Public health standards are similar to those in the UnitedStates.  Tapwater is potable. Medical facilities are good.Telecommunications: Telephone and telegraph services are efficientand available to most parts of Finland and the world. Helsinki isseven time zones ahead of eastern standard time.Transportation: Bus and taxi service is available in most cities as wellas tram and subway service in Helsinki. At least one US carrierprovides US-Finland flights 5 days a week. Finnair flies to New Yorkdaily and offers flights to Los Angeles several days a week. Flightsto many European cities depart Helsinki daily. Finland's domestic airnetwork is one of the best in Europe. The country also has efficientrail and long-distance bus service. Roads are well maintained; nearlyall major highways ,and most important secondary roads are paved.Tourist attractions: With many islands and lakes, evergreen forests,and granite outcroppings, Finland's countryside is striking. Manytourists enjoy cruises on stately historic steamers that travel onFinland's biggest lake, Saimaa. Lapland, with its flora and reindeer,also is popular.Available from the Superintendent of Documents, USGovernment Printing Office, Washington, DC 20402:American University. Area Handbook for Finland. 1974.US Department of Commerce. "Finland." Foreign EconomicTrends and Their Implications for the United States. InternationalMarketing Information Series: Published annually.Political Parties (In order of respective seating placement)Leftist Alliance  - 16Social Democrats - 56Rural Party - 8Free Democrats  - 1Center Party - 40National Coalition Party - 53Swedish People's Party - 13Greens  - 4Christian League - 5Published by the United States Department of State --  Bureau ofPublic Affairs  -- Office of  Public Communication --  Editorial Division--  Washington, DC -- August 1990 -- Editor:  Juanita AdamsDepartment of State Publication 8262 -- Background Notes Series-- This material isin the public domain and may  be reprinted without permission;citation of this sourceis appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>BACKGROUND NOTES:  ESTONIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEOfficial Name:Republic of EstoniaPROFILEFOREIGN RELATIONSEstonia joined the United Nations on September 18, 1991, and is asignatory to a number of UN organizations and other internationalagreements.  It also is a member of the Conference on Securityand Cooperation in Europe, Partnership for Peace, the NorthAtlantic Cooperation Council, and the Council of Europe.  Estoniais unaffiliated directly with any political alliance but welcomesfurther cooperation and integration with NATO, the EU, and otherWestern organizations.  Estonia maintains embassies in the UnitedStates, Sweden, Finland, Denmark, Germany, Belgium, the UnitedKingdom, France, and Russia.  It operates missions in Lithuania,Latvia, to the United Nations, and has a consulate general inToronto, Canada.  Honorary consuls are located in Austria,Switzerland, Australia, and Seattle.The United States established diplomatic relations with Estoniaon July 28, 1922.  U.S. representation accredited to Estoniaserved from the U.S. legation in Riga, Latvia, until June 30,1930, when a legation was established with a non-residentminister.  The Soviet invasion forced the closure of the legationin Tallinn on September 5, 1940, but Estonian representation inthe United States has continued uninterrupted for more than 70years.  The U.S. never recognized the forcible incorporation ofEstonia into the U.S.S.R. and views the present Government ofEstonia as a legal continuation of the interwar republic.Estonia has enjoyed most-favored-nation (MFN) treatment with theU.S. since December 1991.  In 1991-92, it received approximately$6 million annually in humanitarian and medical aid, technicalassistance, and professional training and about $38 million infeed grain credits from the U.S. since 1991.  In 1993, Estoniantrade with the United States amounted to $20 m!illion in exports and $54 millionin imports, the latter being mainly agricultural commoditiesunder concessional programs.  U.S. investment, consisting ofabout 145 firms, makes up $20 million of $185 million in foreigninvestment in Estonia.Principal U.S. Embassy OfficialsCharge d'affaires--Keith SmithPolitical Officer--Elo-Kai OjamaaEconomic Officer--Ingrid KollistAdministrative Officer--David Buss Consular Officer--Robin HaaseAID Director--Adrian deGraffenreidPublic Affairs Officer--Victoria MiddletonThe U.S. embassy in Estonia is located at Kentmanni 20, Tallinn(tel.  [phone]).TRAVEL NOTESCustoms:  Estonia does not require visas for American, Canadian,or British citizens.  Visitors are encouraged to register at theU.S. Embassy.  Hard currency exceeding 1,000 DM ($630) must bedeclared upon entry; foreigners need not declare hard currencyexports less than this sum but may not export more currency thanthat declared upon arrival.  Articles with a total value of lessthan 5,000 kroons ($380), either already declared or purchased inEstonia, are duty-free upon departure.  A 100% export duty existson items of greater total value, and 10-100% export duties can belevied on tobacco, alcohol, gasoline, precious metals andjewelry, furs, and cultural objects.Climate and clothing:  Tallinn and the coast are temperate, withpleasant, cool summers and damp winters; eastern Estonia iscontinental, with warmer summers and harsher winters.Health:  Medical care does not meet Western standards.  There aresevere shortages of basic medical supplies, including disposableneedles, anesthetics, and antibiotics.  Raw fruits and vegetablesare safe to eat, and the water is potable.  Heat and hot waterare readily available.Transportation:  Several international airlines, including SAS,Finnair and Estonia Airlines, provide service between Europeancities and Tallinn Airport.  Train service is available viaMoscow, St. Petersburg and Warsaw/Frankfurt, and a bus lineconnects the Baltic capitals with Warsaw.  Bus and taxi servicewithin the capital and its environs is good.  ExcellentTallinn-Helsinki ferry links exist year-round.  Taxis areinexpensive and available at stands or may be ordered by phone.Rental cars are available, and gasoline prices are at marketrates.Telecommunications:  Improved telephone and telegraph servicesare readily available at standard international rates.  Tallinnis 7 hours ahead of eastern standard time.Work week:  Most stores and shops are closed on Sunday, openMonday-Friday from 10:00am - 6:00 pm and on Saturday from 9:00am- 1:00pm.  The U.S. embassy is closed on U.S. federal holidays.Currency, Weights and Measures:  The freely convertible kroon ispegged to 1/8 the value of the German deutschmark.  Traveler'schecks and major credit cards can be used at most banks andhotels.  Estonia uses the metric system and 220v current.Further InformationThese titles are provided as a general indication of the materialpublished on this country.  The Department of State does notendorse unofficial publications.Estonia 1993:  A Reference Book.  Tallinn:  Estonian EncyclopediaPublishers,  1993.Kreutzwald, F.R., comp.  Kalevipoeg, An Ancient Estonian Tale.Moorestown, NJ:  Symposia Press, 1982.Magi, Arvo.  Estonian Literature.  Stockholm:  BalticHumanitarian Association, 1968.Parming, Marju Rink, and Tonu Parming.  A Bibliography ofEnglish-Language Sources on Estonia:  Periodicals,Bibliographies, Pamphlets, and Books.  New York:  EstonianLearned Society in America, 1974.Parming, Tonu.  The Collapse of Liberal Democracy and the Rise ofAuthoritarianism in Estonia.  London:  Sage Publications, 1975.Parming, Tonu, and Elmar Jarvesoo, eds.  A Case Study of a SovietRepublic:  The Estonian SSR.  Boulder, CO:  Westview Press, 1978.Rank, Gustav.  Old Estonia:  The People and Culture, translatedby Betty Oinas and Felix Oinas.  Bloomington:  IndianaUniversity's Uralic and Altaic Series, vol. 128, 1976.Raun, Toivo U.  Estonia and the Estonians, 2nd edition.Stanford, CA:  Hoover Institution Press, 1991.Rikken, Mari-Ann, and Michael Tarm, eds.  Documents from Estonia:Articles, Speeches, Resolutions, Letters, Editorials,  InterviewsConcerning Recent Developments,  two volumes.  New York, 1990.Rodgers, Mary M., and Tom Streissguth, eds.  Estonia:  Then andNow.  Minneapolis: Lerner Publications Company, 1992.Uustalu, Evald.  History of the Estonian People.  London:  BoreasPublishing, 1952.Williams, Roger, ed.  Baltic States:  Insight Guides.  Boston:Houghton-Mifflin Company, 1993.For information on economic trends, commercial development,production, trade regulations, and tariff rates, contact theInternational Trade Administration, U.S. Department of Commerce,Washington, DC 20230 at [phone], or any Commerce Departmentdistrict office.  For information on business opportunities, callthe Commerce Department's East European Business InformationCenter at [phone].Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of  Public Communication -- Washington,DC August 1994 -- Managing Editor:  Peter A. Knecht -- Editor:Peter FreemanDepartment of State Publication 10194 -- Background Notes Series-For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>BACKGROUND NOTES:  ESTONIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEOfficial Name:Republic of EstoniaPROFILEGeographyArea:  45,226 sq. km. (18,086 sq. miles); about the size of NewHampshire and Vermont.Cities:  Capital--Tallinn (1991 pop. 481,500).  Othercities--Tartu (115,400); Narva (82,300); Kohtla-Jarve (76,800);Parnu (54,200); Sillamae (20,700); Rakvere (20,100).Terrain:  Flat, with an average elevation of 50 m.  Elevation isslightly higher in the east and southeast.  Steep limestone banksand 1,520 islands mark the coastline.Climate:  Temperate, with four seasons of near-equal length.PeopleNationality:  Noun and adjective--Estonian(s).Population:  1.6 million.  Annual growth rate--0.7%.Ethnic groups:  Estonians 62%, Russians 30%, Ukrainians 3%,Belorussians 2%.Religions:  Lutheran, Russian Orthodox, Baptist.Language:  Estonian (official).  Most people also speak Russian.Education:  Years compulsory--11.  By 1989, 12% of the adultpopulace completed college.  Attendance--214,000 students at 561schools, plus 24,000 university students.  Literacy--99%.Health:  Infant mortality rate--12/1,000 births. Lifeexpectancy--65 years for males, 74 for females.Work force (785,500 people):  Industry--32%.  Agriculture--12%.Education, Culture--12%.  Construction--10%.  Trade--9%.Transport--8%.  Health care--6%.  Housing--5%.  Other--4%.Government--2%.GovernmentType:  Parliamentary democracy.Constitution:  On June 28, 1992, Estonians ratified aconstitution based on the 1938 model, offering legal continuityto the Republic of Estonia prior to Soviet occupation.Branches:  Executive--president (chief of state), elected byparliament every five years; prime minister (head of government).Legislative--Riigikogu (parliament:  101 members, 5-year term);Judicial--Supreme Court.Administrative regions:  15 counties and 6 independent towns.Political parties/coalitions: Pro Patria ("Fatherland")--30 seatsin Parliament; National Independence Party (ENIP)--11 seats;Moderates (Social Democrats)--12 seats; Secure Home(Technocrats)--17 seats; Popular Front--15 seats; Monarchists(independent)--8 seats; Estonian Citizen (nationalist)--6 seats;Green Movement--1 seat; Entrepreneurs--1 seat; Communists--0seats.Suffrage:  Universal at 18; non-citizen residents may vote inmunicipal elections.EconomyGDP (1992 est):  $834 million.1994 growth rate:  6.4%.Per capita income:  $540.Natural resources:  Oil shale, phosphorite, limestone, blue clay.Agriculture/forestry (20% of 1991 GDP):  Milk and dairy products,meat, cereals, potatoes.  Cultivable land--1.36 million hectares(60% arable, 18% meadow, 13% pasture).Industry (42% of GDP):  Electricity, oil shale, chemicalproducts, electric motors, textiles, furniture, cellulose/paperproducts, building materials, processed foods.Trade:  Exports--$827 million:  Foodstuffs; textiles andfootware; metals and jewelry; minerals; glassware; stones;wood/wood products; furniture; machinery and equipment.Partners--Finland (22%), Russia (20%), Sweden (10%), Germany(9%), Latvia (8%), Netherlands (5%), U.S. (2%).  Imports--$902million, 1993 est.:  Food, fuel, raw materials, and machinery.Partners--Finland (26%), Russia (19%), Germany (11%), Sweden(9%), Lithuania (4%), U.S. (2%).Exchange rate (July 1994):  13 kroon (EEK)=U.S. $ 1.PEOPLEThe name "Eesti," or Estonia, is derived from the word "Aisti,"the name given by the ancient Germans to the peoples livingnortheast of the Vistula River.  The Roman historian Tacitus inthe first century A.D. was the first to mention the Aisti, andearly Scandinavians called the land south of the Gulf of Finland"Eistland," and the people "aistr."  Estonians belong to theBaltic-Finnic group of the Finno-Ugric peoples, as do the Finnsand Hungarians.  Archaeological finds show  human activity in theregion as early as 8000 B.C.  The ancestors of the Estoniansappear to have arrived from the east about 5,000 years ago.A strong Nordic influence is evident, the result of  cultural andreligious influences gained over centuries of Germanic andScandinavian colonization and settlement.  This highly literatesociety places strong emphasis upon education, which is free andcompulsory until age 16.  Most Estonians belong to theEvangelical Lutheran Church, but a sizable minority are RussianOrthodox.From 1945 to 1989 the percentage of ethnic Estonians in Estoniadropped from 94% to 61%, caused primarily by the Soviet programpromoting mass immigration of urban industrial workers fromRussia, Ukraine, and Belarus as well as by wartime emigration andStalin's mass deportations and executions.  Estonia's citizenshiplaw and constitution meet international and Conference onSecurity and Cooperation in Europe (CSCE) standards, guaranteeinguniversal human and civil rights.Written with the Latin alphabet, Estonian is the language of theEstonian people and the official language of the country.One-third of the standard vocabulary is derived from addingsuffixes to root words.  The oldest known examples of writtenEstonian originate in 13th-century chronicles.  The Soviet erahad imposed the official use of Russian, so most Estonians speakRussian as a second language, while the resident Slavic populacespeaks Russian as a first language.HISTORYEstonians are one of the longest-settled European peoples, whoseforebears, known to archaeologists as the "comb pottery" people,lived on the southeastern shores of the Baltic Sea more than5,000 years ago.  Like other early agricultural societies,Estonians were organized into economically self-sufficient,male-dominated clans with few differences in wealth or socialpower.  By the early Middle Ages most Estonians were smalllandholders, with farmsteads primarily organized by village.Estonian government remained decentralized, with local politicaland administrative subdivisions emerging only during the firstcentury A.D.  By then, Estonia had a population of more than150,000 people and remained the last corner of medieval Europe tobe Christianized.  Estonia also managed to remain nominallyindependent from the Vikings to the west and Kievan Rus to theeast, subject only to occasional forced tribute collections.However, the Danes conquered Toompea, the hilled fortress at whatis now the center of Tallinn, and in 1227 the German crusadingorder of the Sword Brethren defeated the last Estonianstronghold; the people were Christianized, colonized, andenserfed.  Despite attempts to restore independence, Estonia wasdivided among three domains, and small states were formed.Tallinn joined the Hanseatic League in 1248.By 1236, the Sword Brethren allied with the Order of the TeutonicKnights and became known as the Livonian Order of the TeutonicKnights.  Finding upkeep of the distant colony too costly, theDanes in 1346 sold their part of Estonia to the Livonian Order.Despite successful Russian raids and invasions in 1481 and 1558,the local German barons continued to rule Estonia and preservedEstonian commitment to the Protestant Reformation.  NorthernEstonia submitted to Swedish control in 1561 during the LivonianWars, and southern Estonia (Livonia) became part of Lithuania'sDuchy of Courland.  In 1631, Swedish King Gustav II Adolf grantedthe peasantry some measure of greater autonomy, opened the firstschool in Tallinn, where Estonian was taught, and in thefollowing year established a printing press and university in thecity of Tartu.  The Swedish defeat resulting in the 1721 Treatyof Nystad imposed Russian rule in the territory that becamemodern Estonia, uniting it under on!e rule.By 1819 the Baltic provinces were the first in the Russian empirein which serfdom was abolished, spurring the peasants to owntheir own land or move to the cities.  These moves created theeconomic foundation for the Estonian national cultural awakeningthat had lain dormant for some 600 years of foreign rule.Estonia was caught in a current of national awakening that begansweeping through Europe in the mid-1800s.A cultural movement evolved to adopt the use of Estonian as thelanguage of instruction in schools, all-Estonian song festivalswere held regularly after 1869, and a national literaturedeveloped.  Kalevipoeg, Estonia's epic national poem, waspublished in 1861 in both Estonian and German.  More importantly,activists who agitated for a modern national culture alsoagitated for a modern national state.  As the 1905 revolutionswept the country, Estonians called for freedom of the press andassembly, for universal franchise, and for national autonomy.The 1905 uprisings were brutally suppressed, and Estonian gainswere minimal, but the tense stability that prevailed between 1905and 1917 allowed Estonians to advance the aspiration of nationalstatehood.With the collapse of the Russian empire in World War I, Russia'sprovisional government granted national autonomy to Estonia.  Anautonomous Estonian government (Maapaev) was formed but wasquickly forced underground by opposing extremist politicalforces.  The Committee of Elders of the underground Maapaevannounced the establishment of the Republic of Estonia onFebruary 24, 1918, one day before German troops invaded.  Afterthe withdrawal of German troops in November 1918, fighting brokeout between Bolshevik troops and Estonian partisans.  On February2, 1920, the Treaty of Tartu--the Soviet Union's first foreignpeace treaty--was signed by the Republic of Estonia and theSoviet Union.  The terms of the treaty stated that the SovietUnion renounced in perpetuity all rights to the territory ofEstonia.Independence lasted 22 years.  Estonia underwent a number ofeconomic, social, and political reforms necessary to come toterms with its new status as a sovereign state.  Economically andsocially, land reform in 1919 was the most important step.  Largeestate holdings belonging to the Baltic nobility wereredistributed among the peasants and especially among volunteersin what they called the war of independence.  Loss of markets inthe east led to considerable hardships until Estonia developed anexport-based economy and domestic industries.  Estonia'sprincipal markets became Scandinavia, Great Britain, and WesternEurope, with some exports to the United States and Soviet Union.During its early independence, Estonia operated under a liberaldemocratic constitution patterned on the Swiss model.  However,with between 9 and 14 politically divergent parties, Estoniaexperienced 20 different parliamentary governments between 1919and 1933.  The Great Depression spawned the growth of powerful,far-rightist parties which successfully pushed popular support in1933 for a new constitution granting much stronger executivepowers.  In a preemptive move against the far right, Estonia'sPresident, Konstantin Pats, dissolved parliament and governed thecountry by decree.  By 1938, Estonia ratified a third, morebalanced, and very liberal constitution and elected a newparliament the following year.The independence period was one of great cultural advancement.Estonian language schools were established, and artistic life ofall kinds flourished.  One of the more notable cultural acts ofthis time was a guarantee of cultural autonomy to minoritygroups.Estonia had pursued a policy of neutrality, but the signing ofthe Molotov-Ribbentrop non-aggression pact on August 23, 1939,signaled the end of independence.  The agreement provided for theSoviet occupation of Estonia, Latvia, part of Finland, and,later, Lithuania in return for Nazi Germany's assuming controlover most of Poland.  The Estonian Soviet Socialist Republic wasproclaimed on July 21, 1940, and was incorporated into the SovietUnion on August 6.Soviet occupation was accompanied by expropriation of property,Sovietization of cultural life, and the installation of Stalinistcommunism in political life.  Deportations also quickly followed,beginning on the night of June 14, 1941, when more than 10,000people--most of them women, children, and the elderly--were takenfrom their homes and sent to Siberia in cattle cars.  When NaziGermany attacked the Soviet Union on June 22, most Estoniansgreeted the Germans with relatively open arms.During two-and-a-half years of Nazi occupation, Estonia became apart of the German Ostland, and about 5,500 Estonians died inconcentration camps.  However, few Estonians welcomed the RedArmy's push through the Baltics in January 1944.  Some 10% of thepopulation fled to the West between 1940 and 1944.  By lateSeptember, Soviet forces expelled the last German troops fromEstonia, ushering in a second phase of Soviet rule.  That year,Moscow also moved to transfer the Estonian Narva and Petseriborder districts, which had  large percentages of ethnicRussians, to Russian control.For the next decade, an anti-Soviet guerrilla movement known as"the Forest Brethren" operated in the countryside.  Composed offormerly conscripted Estonian soldiers from the German army,fugitives from the Soviet military draft or security policearrest, and those seeking revenge for mass deportations, theForest Brethren used abandoned German and Soviet equipment andworked in groups or alone.  In the hope that protractedresistance would encourage Allied intervention for therestoration of Estonian independence, the movement reached itszenith in 1946-48 with an estimated 5,000 followers and heldeffective military control in some rural areas.After the war, the Estonian Communist Party (ECP) became thepre-eminent organization in the republic.  Most of the newmembers were Russified Estonians who had spent most of theirlives in the Soviet Union.  Not surprisingly, Estonians werereluctant to join the ECP and thus take part in the Sovietizationof their own country.  The ethnic Estonian share in ECPmembership went from 90% in 1941 to 48% in 1952.After Stalin's death, party membership vastly expanded its socialbase to include more ethnic Estonians.  By the mid-1960s, ethnicEstonian membership stabilized near 50%.  On the eve ofperestroika, the ECP claimed about 100,000 members; less thanhalf were ethnic Estonians and they comprised less than 2% of thecountry's population.  Russians or Russified Estonians continuedto dominate the party's upper echelons.A positive aspect of the post-Stalin era in Estonia was areopening of citizens' contacts with foreign countries late inthe 1950s.  Ties were also restored with Finland, boosting aflourishing black market.  In the mid-1960s, Estonians beganwatching Finnish television.  This electronic "window on theWest" afforded Estonians more information on current affairs andmore access to Western culture and thought than any other groupin the Soviet Union.  This expanded media environment wasimportant in preparing Estonians for their vanguard role inextending perestroika during the Gorbachev era.By the 1970s, national concerns--including worries aboutecological ruin--became the major theme of dissent in Estonia.Estonian society grew increasingly concerned about the threat ofcultural Russification to the Estonian language and nationalidentity.  By 1981, Russian was taught in the first grade ofEstonian-language schools and was also introduced into Estonianpre-schools.  These acts had prompted 40 establishedintellectuals to write a letter to Moscow and the republicauthorities.  This "Letter of the Forty" spoke out against theuse of force against protestors and the increasing threat to theEstonian language and culture.By the beginning of the Gorbachev era, concern over the culturalsurvival of the Estonian people had reached a critical point.Although these complaints were first couched in environmentalterms, they quickly became the vehicles for expressingstraightforward political national feelings.  Estoniannationalists drew upon the two decades of independence afterWorld War I as inspiration for their struggle.The ECP remained stable in the early perestroika years andappeared strong at its 19th Congress in 1986.  By 1988, however,the ECP's weakness became clear when it was unable to assume morethan a passive role and was relegated to a reactive position ingovernment.Praising the 1980 "Letter of the Forty," Vaino Valjas replacedKarl Vaino as party chief and thereby temporarily enhanced theECP's reputation.  Nevertheless, the party continued its downwardspiral of influence in 1989 and 1990.  In November 1989, theWriters' Union Party Organization voted to suspend its activity,and the Estonian Komsomol disbanded.In February 1990, Estonia's Supreme Soviet eliminated paragraph 6of the republic's constitution, which had guaranteed the Party'sleading role in society.  The final blow came at the ECP's 20thcongress in March 1990 when it voted to break with the CommunistParty of the Soviet Union (CPSU).  The party splintered intothree branches, then consolidated into a pro-CPSU (Moscow) partyand an independent ECP.As the ECP waned, other political movements, groupings, andparties moved to fill the vacuum.  The first and most importantwas the Estonian Popular Front, established in April 1988 withits own platform, leadership, and broad constituency.   TheGreens and the dissident-led Estonian National Independence Partysoon followed.  By 1989, the political spectrum widened and newparties were formed and reformed almost daily.A number of changes in the republic's government brought about bypolitical advances late in the 1980s played a major role informing a legal framework for political change.  This involvedthe republic's Supreme Soviet being transformed into an authenticregional law-making body.  This relatively conservativelegislature managed to pass a number of laws, notably a packageof laws that addressed the most sensitive ethnic concerns.  Theselaws included the early declaration of sovereignty (November1988); a law on economic independence (May 1989) confirmed by theU.S.S.R. Supreme Soviet that November; a language law makingEstonian the official language (January 1989); and local andrepublic election laws stipulating residency requirements forvoting and candidacy (August, November 1989).Although not all non-Estonians supported full independence, theywere divided in their goals for the republic.  In March 1990,some 18% of Russian speakers supported the idea of a fullyindependent Estonia, up from 7% the previous autumn, and only asmall group of Estonians were opposed to full independence earlyin 1990.  Estonia held free elections for the 105-member SupremeCouncil on March 18, 1990.  All residents of Estonia wereeligible to participate in the elections, including theapproximately 50,000 Soviet troops stationed there.  The PopularFront coalition, composed of leftist and centrist parties and ledby former teacher Edgar Savisaar, won a parliamentary majority.Despite the emergence of the new lawmaking body, an alternativelegislature developed in Estonia.  In February 1990, a body knownas the Congress of Estonia was elected in unauthorized,unofficial elections.  Supporters of the Congress argued that theinterwar republic continued to exist, since Estonia was forciblyannexed by the U.S.S.R., so only citizens of that republic andtheir descendants could decide the future of Estonia.Through a strict, non-confrontational policy in pursuingindependence, Estonia managed to avoid the violence which Latviaand Lithuania incurred in the bloody January 1991 crackdowns andin the border customs-post guard murders that summer.  During theAugust coup in the U.S.S.R., Estonia was able to maintainconstant operation and control of its telecommunicationsfacilities, thereby offering the West a clear view into thelatest coup developments and serving as a conduit for swiftWestern support and recognition of Estonia's redeclaration ofindependence on August 21.  Following Europe's lead, the U.S.formally reestablished diplomatic relations with Estonia onSeptember 2, and the U.S.S.R. Supreme Soviet offered recognitionon September 6.During the subsequent cold winter which compounded Estonia'seconomic restructuring problems, Prime Minister Edgar Savisaardemanded emergency powers to deal with the economic and fuelcrises.  A subsequent no-confidence vote by the Supreme Councilcaused the Popular Front leader to resign, and a new governmentled by former Transportation Minister Tiit Vahi took office.On July 26, Estonian President Meri and Russian President Yeltsinsigned an agreement in Moscow calling for the withdrawal ofRussian troops by August 31, 1994.  Slightly more than 2,000 suchtroops remain in Estonia.  An agreement was also signed regardingsocial guarantees of Russian military pensioners.  Disposition ofthe inactive nuclear submarine training reactor facility atPaldiski remains to be resolved within the near future.GOVERNMENT AND POLITICAL CONDITIONSOn June 28, 1992, Estonian voters approved the constitutionalassembly's draft constitution and implementation act, whichestablished a parliamentary government with a president as chiefof state and with a government headed by a prime minister.The Riigikogu, a unicameral legislative body, is the highestorgan of state authority.  It initiates and approves legislationsponsored by the prime minister.  The prime minister has fullresponsibility and control over his cabinet.Free and fair parliamentary and presidential elections were heldon September 20, 1992, the first in Estonia in more than 50years.  Approximately 68% of the country's 637,000 registeredvoters cast ballots, and 10% of the Russian population also wereeligible to vote.  The leading presidential contenders, PresidentRuutel (43% of the popular vote) and former Foreign MinisterLennart Meri (29% of the vote), faced a secret parliamentary voteto determine the winner.  Ruutel's former association with theruling Communist Party probably helped Meri win on the firstballot.  Meri chose 32-year- old historian and ChristianDemocratic Party founder Mart Laar as Prime Minister.In February 1992, parliament renewed Estonia's liberal 1938citizenship law, which also provides equal civil protection toresident aliens.  Dual citizenship is allowed for Estonians andtheir families who fled the Soviet occupation.  Accordingly,those who were citizens in 1940 are citizens now.  Those whoarrived after the occupation began can become citizens followinga two-year residence retroactive to March 30, 1990, anddemonstration of a 1500-word comprehension of Estonian.  Mostnon-citizen ethnic Slavs (35% of the populace) became eligiblefor naturalization in March 1993, and the government fundsEstonian language training.  In nationwide municipal electionsheld on October 17, 1993, opposition party and ethnic Russiancandidates gained a majority in most areas, especially in Tallinnand the northeast.National SecurityEstonia's defense system is based upon the Swedish-Finnishconcept of a rapid response force composed of a mobilization baseand a small group of career professionals.  The army consists ofthree battalions of 714 troops each, and there is a mandatoryone-year draft period of active duty.  Alternative conscriptionfor 18 months for conscientious objectors is available.  Thereare no plans for a navy, and Estonia is as yet financially unableto fulfill plans for an air force.Border guards fall under the interior ministry's supervision.Comprised of 250-300 troops each, the seven border guarddistricts, including a "coast guard," are responsible for borderprotection and passport and customs duties, as well as smugglingand drug trafficking interdiction.  A volunteer paramilitaryorganization (Kaitseliit) serves as a type of national guard.Principal Government OfficialsPresident--Lennart MeriPrime Minister--Mart LaarMinister of Foreign Affairs--Juri LuikEstonia maintains an embassy in the United States at 1030 15thStreet, NW, Suite 1000, Washington, DC  20005 (tel:[phone]).  It operates a consulate at 630 Fifth Ave., Suite2415, New York, NY 10020 (tel:  [phone]).ECONOMYUntil 1920, Estonian agriculture consisted of native peasantsworking large feudal-type estates held by ethnic Germanlandlords.  In previous decades, centralized czarist rule hadcontributed a rather large industrial sector dominated by theworld's largest cotton mill, then a ruined postwar economy and aninflated ruble currency.By the 1930s, however, Estonia entirely transformed its economy,despite considerable hardship, dislocation, and unemployment.Compensating the German landowners for their holdings, thegovernment confiscated the estates and divided them into smallfarms which subsequently formed the basis of Estonian prosperity.By 1929, a stable currency, the kroon (or crown), wasestablished, and by 1939, Estonia's living standard compared wellwith Sweden's.  Trade focused on the local market and the West,particularly Germany and the United Kingdom.  Only 3% of allcommerce was with the U.S.S.R.The U.S.S.R.'s forcible annexation of Estonia in 1940 and theensuing Nazi and Soviet destruction during World War II crippledthe Estonian economy.  Postwar Sovietization of life continuedwith the integration of Estonia's economy and industry into theU.S.S.R.'s centrally planned structure.  More than 56% ofEstonian farms were collectivized in April 1949 alone.  Moscowexpanded on those Estonian industries which had locally availableraw materials, such as oil-shale mining and phosphorites.  As alaboratory for economic experiments, especially in industrialmanagement techniques, Estonia enjoyed more success and greaterprosperity than other regions under Soviet rule.As the author of the then-radical "Self-Accounting Estonia" planin 1988, Prime Minister Savisaar succeeded by early 1992 infreeing most prices and encouraging privatization and foreigninvestment far earlier than other former Soviet bloc countries.This experimentation with Western capitalism has promotedEstonia's clear advantage in reorienting to Western markets andbusiness practice.With independence, the transitional government styled Estonia asthe gateway between East and West and aggressively pursued tradereform and economic integration with the West.  Estonia haspassed bankruptcy, trademark, copyright, and investment laws andhas negotiated trade and investment agreements with many Westerncountries to attract foreign businesses and joint ventures, whichnow number more than 2,000 in Estonia.  Estonia's major tradingpartners are the Nordic countries, while Russia now accounts foronly one-fourth of all trade.Estonia is reliant on an inefficient, over-industrializedeconomy.  The country supplies 60% of its own energy convertedfrom peat, wood, hydroelectric plants, and environmentallypolluting oil shale.  Estonia has no domestic capacity to refinecrude oil and depends heavily on Russian and Belarusian petroleumexports.  Fishing and shipbuilding are key industries, while theagricultural sector is small but largely self-sufficient.  Theice-free port of Muuga, near Tallinn, is an underused modernfacility with good transshipment capability, a high-capacitygrain elevator, chilled/frozen storage, and newly completed oiltanker off-loading capabilities.  As a new member, Estoniareceived critical restructuring loans from the InternationalMonetary Fund (IMF) and World Bank, as well as from G-24 nations,in order to remedy critical energy, medicinal, and feed grainshortages and financial shortfalls caused by the disruption oftraditional Soviet markets.  By spring 1992, Estonia !basically decontrolled prices; that year, industrial production fell 40%.Spurred by an acute ruble shortage, high inflation, and a desirefor national financial independence, Estonia reintroduced thekroon in June 1992.  Pegged to the German mark and freelyconvertible, the kroon is backed by more than $262 million ingold and timber reserves.  Projected 1994 inflation is 30%.Fear of massive unemployment among the largely urban Russian workforce had delayed privatization of inefficient factories, and theissue of compensation or restitution to pre-1940 property ownersremains contentious.  However, the Laar administration is showingmuch toughness and promise on economic reform and privatization.Nearly 42,000 private businesses are now registered in Estonia,and another 10,000 businesses are expected in 1994.  GDP growthhas reached 6.4% in 1994--the first positive growth rate in oneof the former Soviet bloc countries and one of the world'shighest rates.  A national privatization agency, patterned afterGermany's Treuhandan-stalt, handles privatization/reorganizationof state property.  Eighty percent of small to medium-sizedenterprises are now privately owned, and nearly 80,000 new jobshave been created.  Nearly one-third of the present budget, $81million, remains frozen in the defunct Soviet foreign trade bank,which has contributed to! the insolvency of several banks. With a balanced budget for the past two years, the governmentrefuses to weaken its strong fiscal reputation and has allowedthe banks to fold or be merged into the national bank.  Estoniaplans GATT membership in 1994 and, with practically noagricultural subsidies and few trade restrictions, it activelyseeks EU membership by the year 2000.  Estonia ratified a freetrade agreement with the EU in July.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  EL SALVADOR (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of El SalvadorAgriculture and Land ReformBefore 1980, a small economic elite owned most of the land in ElSalvador and controlled a highly successful agricultural industry. About70% of farmers were sharecroppers or laborers on large plantations.Many farm workers were under- or unemployed and impoverished.The civilian-military junta which came to power in 1979 instituted anambitious land reform program to redress the inequities of the past,respond to the legitimate grievances of the rural poor, and promote morebroadly based growth in the agricultural sector.  The ultimate goal wasto develop a rural middle class with a stake in a peaceful andprosperous future for El Salvador.At least 525,000 people--more than 12% of El Salvador's population atthe time and perhaps 25% of the rural poor--benefited from agrarianreform, and more than 22% of El Salvador's total farmland wastransferred to those who previously worked the land but did not own it.But when agrarian reform ended in 1990, about 150,000 landless familiesstill had not benefited from the reform actions.The 1992 peace accords make provisions for land transfers to allqualified ex-combatants of both the FMLN and ESAF, as well as tolandless peasants living in former conflict areas.  While stronglyopposed to new land expropriations, the Calderon Sol administration iscommitted to facilitating the voluntary transfer of land.  To date, morethan 12,000 of these transactions have been financed through the U.S.-assisted Land Bank and the Salvadoran Institute for Land Transformation.Up to 37,000 families could benefit from this land transfer program uponits completion, currently programmed for mid-1995.FOREIGN RELATIONSEl Salvador is a member of the United Nations and several of its specialized agencies; the Organization of American States (OAS); the CACM; the Central American Parliament (PARLACEN); and the SICA.  It actively participates in the Central American Security Commission (CASC), which seeks to promote regional arms control.  As noted, El Salvador also is a member of GATT and is pursuing regional free trade agreements.  In July 1969, El Salvador and Honduras fought the brief "Soccer War" over disputed border areas and friction resulting from the 300,000 Salvadorans who had emigrated to Honduras in search of land and employment.  The catalyst was nationalistic feelings aroused by a series of soccer matches between the two countries.  In the course of the war, Salvadoran forces penetrated as far as 18 miles into Honduras.  The two countries formally signed a peace treaty on October 30, 1980, which put the border dispute before the International Court of Justice.  In September 1992, the court issued a 400-page ruling, awarding much of the disputed land to Honduras.  El Salvadoran-Honduran diplomatic relations now are normal, as are trade relations.El Salvador has played a constructive and activist role in the Esquipulas process, the regional effort to promote peace in Central America.  The Government of El Salvador is firmly committed to a comprehensive agreement linking guarantees of security among the Central American countries to national reconciliation through democratization within each country.El Salvador strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.U.S.-SALVADORAN RELATIONSU.S.-Salvadoran relations traditionally have been cordial and have become very close as a result of substantial U.S. aid in the 1980s as well as a growing population of Salvadorans in the United States.  U.S. policy toward El Salvador seeks to promote:--  The complete implementation of the peace accords;--  The strengthening of El Salvador's democratic institutions, rule of law, judicial reform, and civilian police;--  National reconciliation and a complete end to political violence;--  National reconstruction, economic opportunity, and growth; and--  Support for the regional security objectives embodied in the Esquipulas II agreement.In FY 1993, U.S. Government assistance to El Salvador was about $181 million, including $30 million of PL-480.  The international community's March 1993 pledge of $800 million for reconstruction in El Salvador included $225 million in loans from the Inter-American Development Bank for electricity generation and private sector investment.  For FY 1994, total U.S. assistance was about $82 million, a reduction due to declining U.S. aid levels worldwide and increasing commitments to other countries.Principal U.S. Embassy OfficialsAmbassador--Alan H. FlaniganDeputy Chief of Mission--Gwen ClareThe U.S. embassy in El Salvador is located at Final Blvd., Santa Elena, Antiguo Cuscatlan, San Salvador  (tel.:  [phone]; fax:  [phone]). (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  EL SALVADORPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of El SalvadorPROFILEGeographyArea:  21,476 sq. km. (8,260 sq. mi.); about the size of Massachusetts.Cities:  Capital--San Salvador (pop. 1.4 million).  Other cities--SantaAna, San Miguel.Terrain:  Mountains separate country into three distinct regions--southern coastal belt; central valleys and plateaus; and northernmountains.Climate:  Semitropical, distinct wet and dry seasons.PeopleNationality:  Noun and adjective--Salvadoran(s).Population:  5 million.Annual growth rate (1993): 2.2%.Ethnic groups:  Mestizo 89%, indigenous 10%, Caucasian 1%.Religion:  Largely Roman Catholic, with growing Protestant groupsthroughout the country.Language:  Spanish.Education:  Years compulsory--6.   Attendance--82%.  Literacy--65% amongadults.Health:  Infant mortality rate (1993)--47/1,000.  Life expectancy(1993)--males 64 yrs., females 65 yrs.Work force (2.5 million):  Agriculture--40%.  Services--25%.  Industry--19%.  Other--16%.GovernmentType:  Republic.Constitution:  December 20, 1983.Independence:  September 15, 1821.Branches:  Executive--president and vice president.  Legislative--84-member Legislative Assembly.  Judicial--independent (Supreme Court).Administrative subdivisions:  14 departments.Political parties:  Nationalist Republican Alliance (ARENA), FarabundoMarti National Liberation Front (FMLN), Christian Democratic Party(PDC), National Conciliation Party (PCN), Democratic Convergence (CD),Unity Movement (MU).Suffrage:  Universal at 18.Economy (1993)GDP:  $7.6 billion.Annual growth rate:  5%.Per capita income:  $1,494.Agriculture (9% of GDP):  Products--coffee (30% of agricultural output),sugar, livestock, corn, poultry, sorghum.  Arable, cultivated, orpasture land--67%.Industry (19% of GDP):  Types--food and beverage processing, textiles,footwear and clothing, chemical products, petroleum products.Trade:  Exports--$732 million:  coffee, sugar, textiles and shrimp.Partners--U.S. 29%, Central American Common Market (CACM) 42%, EuropeanUnion (EU) 16%, Japan 2%.  Imports--$1.9 billion:  consumer goods,foodstuffs, capital goods, raw industrial materials, petroleum.Partners--U.S. 44%, CACM 17%, EU 10%, Mexico 5.8%, Venezuela 5%.Exchange rate (1994 avg.):  8.7 colones=U.S. $1.PEOPLE AND HISTORYEl Salvador's population numbers about 5 million; almost 90% is of mixedIndian and Spanish extraction.  About 10% is indigenous; very fewIndians have retained their customs and traditions.  The country'speople are largely Roman Catholic--though Protestant groups are growing--and Spanish is the language spoken.  The capital city of San Salvadorhas about 1.4 million people; an estimated 58% of El Salvador'spopulation lives in rural areas.Before the Spanish conquest, the area that is now El Salvador was madeup of two large Indian states and several principalities.  Theindigenous inhabitants were the Pipils, a tribe of nomadic Nahua peoplelong established in Mexico.  Early in their history, they became one ofthe few Mesoamerican Indian groups to abolish human sacrifice.Otherwise, their culture was similar to that of their Aztec neighbors.Remains of Nahua culture are still found at ruins such as Tazumal (nearChalchuapa), San Andres (northeast of Armenia), and Joya De Ceren (northof Colon).The first Spanish attempt to subjugate this area failed in 1524, whenPedro de Alvarado was forced to retreat by Pipil forces.  In 1525, hereturned and succeeded in bringing the district under control of theCaptaincy General of Guatemala, which retained its authority until 1821despite an abortive revolution in 1811.IndependenceIn 1821, El Salvador and the other Central American provinces declaredtheir independence from Spain.  When these provinces were joined withMexico in early 1822, El Salvador resisted, insisting on autonomy forthe Central American countries.  Guatemalan troops sent to enforce theunion were driven out of El Salvador in June 1822.  El Salvador, fearingincorporation into Mexico, petitioned the U.S. Government for statehood.But in 1823, a revolution in Mexico ousted Emperor Augustin Iturbide,and a new Mexican congress voted to allow the Central American provincesto decide their own fate.  That year, the United Provinces of CentralAmerica was formed of the five Central American states under Gen. ManuelJose Arce.  When this federation was dissolved in 1838, El Salvadorbecame an independent republic.El Salvador's history as an independent state--as with others in CentralAmerica--was marked by frequent revolutions; not until the period 1900-30 was relative stability achieved.  The economic elite ruled thecountry in conjunction with the military, and the power structure wascontrolled by a relatively small number of wealthy landowners, known as"the 14 Families."  The economy, based on coffee-growing, prospered orsuffered as the world coffee price fluctuated.From 1932--the year of Gen. Maximiliano Hernandez Martinez's coupfollowing his brutal suppression of rural resistance--until 1980, everySalvadoran President  was an army officer.  The one exception was aprovisional executive who served for four months.  Periodic presidentialelections were seldom free or fair.From Military to Civilian RuleDuring the 1970s, the political, social, and economic situation began todeteriorate.  The military leadership created its own party, theNational Conciliation Party (PCN), which nominated Col. Arturo Molina inthe 1972 presidential election.  The opposition united under JoseNapoleon Duarte, leader of the Christian Democratic Party (PDC).  Amidwidespread fraud, Duarte's broad-based reform movement was defeated.Subsequent protests and an attempted coup were crushed, and Duarte wasexiled.  These events eroded hope of reform through democratic means andpersuaded many opponents of military rule that armed insurrection wasthe only way to achieve change.  Leftist groups capitalizing upon socialdiscontent gained strength.  By 1979, guerrilla warfare had broken outin the cities and the countryside, launching what became a 12-year civilwar.The cycle of violence accelerated as rightist vigilante "death squads"killed thousands.  The poorly trained Salvadoran Armed Forces (ESAF)also engaged in repression and indiscriminate killings.  The country'santiquated judicial system was unable to cope with the lawlessness.Opposition to the government's agrarian reform program fed ruralconflict.  After the 1979 collapse of the Somoza regime in Nicaragua,the new Sandinista government provided large amounts of arms andmunitions to five Salvadoran guerrilla groups, and a military victory bythe guerrillas appeared possible.On October 15, 1979, reform-minded military officers and civilianleaders ousted the right-wing government of Gen. Carlos Humberto Romero(1977-79) and formed a revolutionary junta.  PDC leader Duarte joinedthe junta in March 1980, leading the provisional government until theelections of March 1982.  The junta initiated a land reform program andnationalized the banks and the marketing of coffee and sugar.  Politicalparties were allowed to function again, and on March 28, 1982,Salvadorans elected a new constituent assembly.  Following thatelection, authority was peacefully transferred to Alvaro Magana, theprovisional president selected by the assembly.The 1983 constitution, drafted by the assembly, strengthened individualrights; established safeguards against excessive provisional detentionand unreasonable searches; established a republican, pluralistic form ofgovernment; strengthened the legislative branch; and enhanced judicialindependence.  It also codified labor rights, particularly foragricultural workers.  The newly initiated reforms, though, did notsatisfy the guerrilla movements, which had unified under Cuban auspicesas the Farabundo Marti National Liberation Front (FMLN).Duarte won the 1984 presidential election against Roberto D'Aubuisson ofthe Nationalist Republican Alliance (ARENA) with 54% of the vote andbecame the first freely elected president of El Salvador in more than 50years.  Legislative and municipal elections were held in 1985 and 1988.In 1989, ARENA's Alfredo Cristiani won the presidential election with54% of the vote.  His inauguration on June 1, 1989, marked the firsttime in decades that power had passed peacefully from one freely electedcivilian leader to another.In 1990, reform of the electoral system expanded the assembly from 60 to84 deputies in order to broaden the base of representation from thesmaller parties and increase the opportunity for the parties of the leftto win office.  In the March 1991 assembly election, ARENA lost itsmajority in the Legislative Assembly, winning only 39 seats.  The PDCtook 26 seats, the PCN nine, the Democratic Convergence (CD) eight, andtwo small parties one each.Ending the Civil WarUpon his inauguration in June 1989, President Cristiani called fordirect dialogue to end the decade of conflict between the government andguerrillas.  An unmediated dialogue process involving monthly meetingsbetween the two sides was initiated in September 1989, lasting until theFMLN launched a bloody, nationwide offensive in November that year.In early 1990, following a request from the Central American presidents,the UN became involved in an effort to mediate direct talks between thetwo sides.  After a year of little progress, the government and the FMLNaccepted an invitation from the UN Secretary General to meet in New YorkCity.  On September 25, 1991, the two sides signed the New York CityAccord.  It concentrated the negotiating process into one phase andcreated the Committee for the Consolidation of the Peace (COPAZ), madeup of representatives of the government, FMLN, and political parties,with Catholic Church and UN observers.On December 31, 1991, the government and the FMLN initialed a peaceagreement under the auspices of Secretary-General Perez de Cuellar.  Thefinal agreement, called the Accords of Chapultepec, was signed in MexicoCity on January 16, 1992.  A nine-month cease-fire took effect February1, 1992, and was never broken.  On December 15, 1992, world dignitaries--including UN Secretary General Boutros Boutros-Ghali and then-VicePresident Quayle--attended a ceremony marking the official end of theconflict, concurrent with the demobilization of the last elements of theFMLN military structure and the FMLN's inception as a political party.GOVERNMENT AND POLITICAL CONDITIONSEl Salvador is a democratic republic governed by a president and an 84-member Legislative Assembly.  The president is elected by universalsuffrage and serves for a five-year term.  Members of the assembly, alsoelected by universal suffrage, serve for three-year terms.  The countryhas an independent judiciary and Supreme Court.In March 1994, the first post-civil war elections were held, featuringsimultaneous presidential, legislative, and municipal races.  The FMLNparticipated in those elections and emerged as the second-largestpolitical party in El Salvador.  ARENA won 39 seats in the LegislativeAssembly, the FMLN won 21 seats, the PDC 18, the PCN four, and the CDand Unity Movement (MU) one each.  ARENA presidential candidate ArmandoCalderon Sol faced FMLN-CD coalition candidate Ruben Zamora in a runoffin April and won with 68% of the vote.  UN observers declared theelections free and fair.  Armando Calderon Sol of the ARENA party beganhis five-year term as President on June 1, 1994, and cannot succeedhimself.Political Parties and Other GroupsARENA is El Salvador's leading political party.  It was created in 1982by Roberto D'Aubuisson and other ultra-rightists, including some fromthe military.  His electoral fortunes were diminished by crediblereports that he was involved in organized political violence.  FollowingD'Aubuisson's defeat by Jose Napoleon Duarte in the 1984 presidentialelection, ARENA began reaching out to more moderate individuals andgroups, particularly in the private sector.By 1989, ARENA had attracted the support of business groups andnominated Alfredo Cristiani--a moderate businessman and coffee grower--as its presidential candidate.  ARENA was thus well positioned tobenefit from popular discontent with the 1984-89 Duarte administration.Despite sincere efforts at reform by Duarte's PDC administration,failure to either end the insurgency or improve the economy, allegationsof corruption, poor relations with the private sector, and historicallylow prices for the nation's main agricultural exports contributed toARENA victories in the 1988 legislative elections and the 1989presidential elections.In 1994, ARENA put well-known businessman Enrique Borgo Bustamante onthe ticket as Calderon Sol's running mate in an effort to furtherbolster its moderate, pro-business image.  The 1989-94 Cristianiadministration's successes in achieving a peace agreement to end thecivil war and in improving the nation's economy helped ARENA keep boththe presidency and a working majority in the Legislative Assembly in the1994 elections.  ARENA has benefited from having been the governingparty when peace came to El Salvador, and Calderon Sol has emphasizedhis commitment to carrying out the remaining elements of the peaceaccords.The FMLN became a political party in December 1992 and immediatelysupplanted the CD as El Salvador's leading party of the political left.It is composed of five factions that do not always agree, sometimesleading to very public ruptures.  Nevertheless, the FMLN maintained aunited front during the 1994 electoral campaign and joined with the CDand National Revolutionary Movement (MNR) to support CD SecretaryGeneral Ruben Zamora for president.This coalition succeeded in keeping Calderon Sol from winning 50% in thefirst round and thus established itself as the sole alternative to ARENAin the second round.  The FMLN also came in second in the assemblyraces.  As the main opposition party, the FMLN now faces the challengeof resolving its internal political differences or eventually seeingsome of its factions reposition themselves as Social Democrats, perhapsin alliance with other left-of-ARENA parties.Besides ARENA and the FMLN, other political parties in El Salvador alsoplay important roles:  the PDC, which still has broad support throughoutthe country, winning more municipal elections in 1994 than did the FMLN;the PCN, created by the Salvadoran military and in decline but alliedwith ARENA in the assembly; the CD, allied with the FMLN in theassembly; and the MU, a party based in the Salvadoran evangelicalmovement.Labor unions, the universities, and the Catholic Church play major rolesin the Salvadoran political system.  Two main labor umbrella groupsrepresent most of El Salvador's 300,000 organized workers. TheDemocratic National Union of Peasants and Workers (UNOC) represents some250,000 workers, and its leadership is closely linked to the PDC.  TheNational Union of Salvadoran Workers (UNTS) represents about 55,000workers and other supporters.  Four members of the UNTS executivecommittee were among the official founders of the FMLN political party,and the UNTS usually hews to the FMLN line in political matters.The national University of El Salvador (UES) has also been heavilyinfluenced by the FMLN.  UES was closed by the military from 1980 until1984, when it was reopened by President Duarte; it also was closed forseveral months in the aftermath of the November 1989 offensive.  Anumber of private universities, including the Jesuit-run University ofCentral America, also operate in El Salvador.Since the late 1970s, when Archbishop Romero (assassinated in 1980)called for an end to repression and for social justice, the CatholicChurch has been a vocal and aggressive advocate of peace.  The Churchmediated a 1984 dialogue between the government and the guerrillas andthe release of then-President Duarte's daughter, whom the guerrillas hadabducted.Compliance With the Peace AccordsThe peace process set up under the Chapultepec Accords has beenmonitored by the UN Mission to El Salvador, known by its Spanish acronymONUSAL.  The mission's observers were divided into four contingents--monitoring human rights, military, police, and electoral issues.  At itspeak, ONUSAL had close to 1,000 observers in the country.  A reducedONUSAL presence has been authorized through November 1994.The peace accords included a two-year timetable to complete differentaspects of the agreement (see box for some key provisions of theaccords); progress has been made in carrying out most aspects of thepeace accords.Human Rights.  During the 12-year civil war, human rights violations byboth left- and right-wing forces were rampant.  There were incidents ofpolitical killings, torture of detainees, arbitrary arrest, and forcedrecruitment by the ESAF.  There were also cases of killings, kidnapings,abuse of non-combatants, intimidation of civilians, and forcedrecruitment by the FMLN.  Right-wing death squads took advantage of thischaotic environment to engage in political assassinations.  Manyindividuals and institutions acted with virtual impunity from a judicialsystem burdened with corruption and overwhelmed by the magnitude of thebloodshed.The 1992 peace accords established a Truth Commission under UN auspicesto investigate the most serious cases of human rights abuses committedduring the civil war.  The commission reported its findings on prominenthuman rights cases on March 15, 1993.  It recommended removal from allgovernment and military posts of those identified as human rightsviolators and recommended reforms of the Salvadoran judiciary.  On March20, the Legislative Assembly approved amnesty from criminal prosecutionfor all those implicated in the Truth Commission report.  Among thosefreed from jail as a result were the ESAF officers convicted in the 1989Jesuit murders and the FMLN ex-combatants who were being held for the1991 killings of two U.S. servicemen.The peace accords also required the establishment of an Ad HocCommission to evaluate the human rights record, professional competence,and commitment to democracy of the ESAF officer corps.  On June 30,1993, the last of 103 officers identified by this commission asresponsible for human rights violations were removed from active duty inthe ESAF, and they were formally retired at the end of December.  ONUSALdeclared the government in compliance with the Ad Hoc Commissionrecommendations.There has been a dramatic decline in political killings since thesigning of the peace accords in January 1992, but common crime presentsa growing problem.  The frequent inability of the police and judicialauthorities to resolve criminal cases has often left unanswered whethersome killings may have been politically motivated.  In December 1993, aUnited Nations-Government of El Salvador Joint Group was established toinvestigate whether illegal, armed, politically motivated groupscontinued to exist in El Salvador after January 1992.The Joint Group reported its findings on July 28, 1994.  It found thatsome groups and persons in El Salvador continue to resort to the use ofviolence in order to obtain political results.  It did not, however,find that war-era death squads were still functioning, insteadsuggesting that there had been an evolution from politically motivateddeath squads to organized crime groups.  The Joint Group recommendedthat a special unit be created in the National Civilian Police (PNC) toinvestigate political and organized crime and that further reforms bemade in the judicial system and the ESAF.  The Calderon Soladministration has promised to carry out the Joint Group'srecommendations.The peace accords also established the autonomous Human RightsOmbudsman's Office, which had established regional offices in most of ElSalvador's departments by September 1994.  The ombudsman's office isscheduled to assume all of the responsibilities of ONUSAL's human rightsdivision by late 1994.Military Reform.  Demobilization of Salvadoran military forces generallyproceeded on schedule throughout the process.  The Treasury Police andNational Guard were abolished, and the intelligence service wastransferred to civilian control.  By February 1993, the military hadlowered force levels from a wartime high of 63,000 to the level of32,000 required in the peace accords; this was achieved nine monthsahead of schedule.  As noted, the required purge of military officersaccused of human rights abuses and corruption was completed at the endof 1993 in compliance with the Ad Hoc Commission's recommendations.National Civilian Police.  The new civilian police force, created toreplace the several discredited former public security forces, wasdeployed in all departments by the end of 1994, but it is not expectedto reach its required force levels until late 1995.  The old NationalPolice, the only former police force still in existence, is scheduled tobe completely demobilized by the end of 1994.Judiciary.  In July 1994, a new Supreme Court was unanimously elected bythe assembly after protracted negotiations.  No members of the old courtwere returned to office, belatedly fulfilling the recommendation of theTruth Commission that the entire Supreme Court leave office.Land Transfers.  Land transfers have taken place more slowly thanexpected.  There have been difficulties in a number of areas, such asgetting enough funding to purchase from private owners the lands to beused in the transfer program and securing enough funding foragricultural credits for the land recipients.  Despite this, significantprogress has been made.  Thousands of families have received land andagricultural credits.  The international community, the SalvadoranGovernment, the former rebels, and the various financial institutionsinvolved in the process continue to work closely together to bring theprocess to a successful conclusion.Principal Government OfficialsPresident--Armando Calderon SolVice President--Enrique Borgo BustamanteMinister of Foreign Relations--Oscar Alfredo SantamariaAmbassador to the United States--Ana Cristina SolRepresentative to the OAS--Jose Roberto Andino SalazarRepresentative to the UN--Ricardo Guillermo Castaneda CornejoEl Salvador maintains an embassy in the United States at 2308 CaliforniaStreet NW, Washington, DC  20008 (tel. [phone]).  There areconsulates in Chicago, Houston, Los Angeles, Miami, New Orleans, NewYork, and San Francisco.ECONOMYThe Salvadoran economy continues to reap the benefits of sound economicprograms, a commitment to a free economy, and careful fiscal management.The impact of the civil war on El Salvador's economy was devastating;from 1979 to 1990, losses from damage to infrastructure and means ofproduction due to guerrilla sabotage as well as from reduced exportearnings totaled about $2.2 billion.  But since attacks on economictargets ended in 1992, improved investor confidence has led to increasedprivate investment.  Rich soil, moderate climate, and a hard-working andenterprising labor pool comprise El Salvador's greatest assets.Much of the improvement in El Salvador's economy is due to free marketpolicy initiatives launched by the Cristiani government in July 1989.Reforms included:--  Elimination of price controls on 240 consumer products;--  Breakup of government and government-sanctioned monopolies over theexport of coffee, sugar, and cotton;--  Reduction of import duties;--  Elimination of non-tariff barriers;--  Adoption of a free-market exchange rate system;--  Maintenance of positive real interest rates; and--  Reduction of the fiscal deficit.In July 1992, after a long political struggle, the Legislative Assemblypassed a law establishing a 10% value added tax.  This year, thegovernment essentially has completed its privatization of the bankingsystem and passed a law detailing the operations of the alreadyfunctioning stock market; it soon will establish a commodities market.The Calderon Sol administration also is committed to privatizingtelecommunications and port services and to expanding transportationinfrastructure.In 1993, the service and construction sectors led El Salvador's economyto a real GDP growth rate of 5%, and GDP ended at $7.62 billion for theyear.  Disappointing agricultural performance, however, slightlydampened the overall recovery; the contribution of coffee to theeconomy--30% of agricultural output--fell in 1993 because of decreasedyields.  Inflation was 12% in 1993, down from 20% the year before.  Theeconomic outlook for 1994 is for growth of 5.5%, with inflation droppingto 10%.  Income from coffee is expected to recover in 1994 due to six-year highs in international prices.In mid-1994, the nation had net international reserves of $840 million,equal to roughly four months of imports.  This compares to $650 millionat the end of 1993.  The exchange rate--officially described as free-floating and determined by the market--has remained at about 8.7 colonesper U.S. dollar since early 1993.Foreign Debt and AssistanceDuring the civil war, international lending institutions were reluctantto make loans to El Salvador, so the country never acquired a largeinternational debt.  Since the war, El Salvador has continued to pursuea conservative debt posture.  Most of its roughly $1.8 billion debt isto multilateral lending institutions.Since 1990, the Salvadoran Government's economic program has receivedstrong support from international financial institutions and otherlenders.  In 1993, the International Monetary Fund approved a 12-monthstandby agreement which paved the way for a rescheduling of $135 millionof El Salvador's Paris Club debt to official creditors.  The World Bankapproved a $75-million structural adjustment loan.  In December 1992,the U.S. Government reduced bilateral debt with El Salvador by 75%--from$617 million to $151 million--under provisions of the Enterprise for theAmericas Initiative.Foreign assistance plays an important role in the Salvadoran economy,helping to finance the balance-of-payments gap and providing funds tothe capital budget for public sector infrastructure-developmentprojects.  At a March 1993 meeting held in Paris, the internationalcommunity pledged $800 million in loans and donations for reconstructionin El Salvador.ManufacturingEl Salvador historically has been the most industrialized nation inCentral America, though a decade of war eroded this position.  In 1993,manufacturing accounted for 19% of GDP and employed 19% of the workforce.  Based primarily in the capital city of San Salvador, theindustrial sector is oriented largely toward domestic and CentralAmerican markets.  Textiles, footwear and clothing, beverages, processedfood, tobacco, wood and metal products, and chemical products are theprincipal manufactured goods.TradeIn 1993, El Salvador's total exports were $732 million, while importswere $1.9 billion, resulting in a trade deficit of more then $1 billion.This deficit was offset by family remittances of almost $800 millionsent by the more than 1 million Salvadorans living in the U.S., plusgenerous amounts of bilateral aid and loans from multilateral lendingorganizations.  Twenty-five percent of El Salvador's imports weremachinery and equipment destined to upgrade the nation's private sector.Recently, El Salvador's development efforts have focused on non-traditional agricultural exports.In 1991, El Salvador became a member of the General Agreement on Tariffsand Trade (GATT).  Also that year, El Salvador and its Central Americanneighbors announced their interest in negotiating a regional free-tradeagreement to complement the Central American Common Market (CACM) andthe Central American Integration System (SICA).  As a result, steps havebeen made toward Central American economic integration.  In March 1992,El Salvador and Guatemala signed a free trade agreement calling forcommon external tariff and export tax systems; negotiations on similaragreements with Honduras have been conducted.  Talks to negotiate afree-trade agreement between Mexico and El Salvador, Guatemala, andHonduras are scheduled to begin in late 1994.</text>
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        <text>BACKGROUND NOTES:  EGYPT (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEAUGUST 1994Official Name:  EgyptFOREIGN RELATIONSEgypt was readmitted to the Arab League in May 1989, andthe Arab League headquarters has returned to Cairo fromTunis.  Former Egyptian Foreign Minister Abdel Meguid isthe present Secretary General of the Arab League.President Mubarak chaired the Organization of AfricanUnity from 1989 to 1990 and again in 1993.  In 1991,Egyptian Deputy Prime Minister Boutros Boutros-Ghali waselected Secretary General of the United Nations in atightly contested election.Egypt played a key role during the 1990-91 Gulf crisis.President Mubarak helped assemble the internationalcoalition and deployed 35,000 Egyptian troops againstIraq to liberate Kuwait.  The Egyptian contingent was thesecond largest in the  coalition forces.  In theaftermath of the Gulf war, Egypt signed the Damascusdeclaration with Syria and the Gulf states to strengthenGulf security.Egypt also played an important role in the negotiationsleading to the Madrid Peace Conference in 1991, which,under U.S. and Russian sponsorship, brought together allparties in the region to discuss Middle East peace.Since then, Egypt has been an active participant in thepeace process and has been a strong supporter of thebilateral discussions.Egyptian-Israeli relations improved after Labor's 1992victory in Israeli national elections, and Egypt andIsrael are committed to improving their bilateralrelationship.  By mid-1993, President Mubarak and PrimeMinister Rabin had met twice, and other senior-levelbilateral contacts have increased.  There has also beenprogress on the return of Sinai antiquities to Egypt andon issues relating to military personnel missing inaction.  Agricultural cooperation continues to be themost active area of Egyptian-Israeli technicalcooperation.U.S.-EGYPTIAN RELATIONSPresident Mubarak has long been a  supporter of a strongU.S.-Egyptian relationship based on shared interests inregional security and stability and the peacefulresolution of international disputes.  President Mubarakwas the first Arab leader to visit the U.S. afterPresident Clinton's  inauguration.  The two countrieshave worked closely together to promote a peacefulsettlement of the Arab-Israeli conflict and to resolveconflicts in Africa--including most recentlyparticipation by Egyptian soldiers in UN peace-keepingefforts in Somalia.An important pillar of the bilateral relationship remainsU.S. security and economic assistance to Egypt, whichexpanded significantly in the wake of the Egyptian-Israeli Peace Treaty in 1979.  In FY 1993, total U.S.assistance levels to Egypt were $1.3 billion in ForeignMilitary Sales (FMS) grants and $815 million in EconomicSupport Fund grants.  The Egyptians have used FMS tosupport their military modernization program.  PL 480food aid in FY 1993 amounted to $50 million, down from$150 million annually in previous years, due to Egypt'sincreased commercial purchases.U.S. assistance promotes Egypt's economic development,supports U.S.-Egyptian cooperation, and enhances regionalstability.  U.S. economic aid stimulates economic growthby funding major projects in electric power generation,telecommunications, housing and transport, and thefinancing of commodity imports such as raw materials andcapital equipment.  Power plants built with U.S.assistance generate more electricity than the Aswan HighDam.Since 1975, the United States has provided $2.2 billionto improve and expand water and sewage systems in Cairo,Alexandria, and other Egyptian cities.  U.S. militarycooperation has helped Egypt modernize its armed forcesand strengthen regional security and stability.  UnderFMS programs, the U.S. has provided F-4 jet aircraft, F-16 jet fighters, M-60A3 and M1A1 tanks, armored personnelcarriers, Apache helicopters, antiaircraft missilebatteries, aerial surveillance aircraft, and otherequipment.The U.S. and Egypt also participate in combined militaryexercises, including deployment of U.S. troops to Egypt.Units of the U.S. 6th Fleet are regular visitors toEgyptian ports.Principal U.S. OfficialsAmbassador--Edward S. Walker, Jr.Deputy Chief of Mission--Edmund J. HullMinister-Counselor for Economic Affairs--Russell A.LamantiaCounselor for Political Affairs--Jeffrey MillingtonCounselor for Commercial Affairs--Laron L. JensenCounselor for Public Affairs--Marjorie A. RansomCounselor for Agricultural Affairs--Franklin D. LeeCounselor for Administrative Affairs--Warren E. Littrel,Jr.Consul General--Dona ShermanLabor Affairs Officer--Barbara LeafDirector, AID Mission--John WesleyDefense Attache--Col. Joseph P. Engleheardt,USA Chief, Office of Military Cooperation--MG OttoHabedanke, USAFThe U.S. embassy in Cairo is located on Lazoughli Street,Garden City, near downtown Cairo.  The mailing addressfor the embassy from the U.S. is American Embassy, APO AE09839-4900; from Egypt, it is 8 Sharia Kamal El-DinSalah, Garden City, Cairo.  The telephone number is (20)(2)355-7371; fax (20) (2)355-7375; telex 93773 Amemb UN.The embassy is closed on all U.S. federal holidays andsome Egyptian holidays.TRAVEL NOTESClimate and clothing:  Clothing should be suitable forhot summers and temperate winters.  Modest attire isrequired.Customs:  Visas are required.  Travelers are advised toobtain visas through any Egyptian embassy or consulateprior to travel, although visas can also usually beobtained on arrival at Cairo Airport.  Shots are notrequired for visitors coming from the United States orEurope, but yellow fever immunizations are required oftravelers coming from infected areas.  The Department ofState Medical Division recommends that visitors to Egyptobtain typhoid, tetanus, polio, meningitis, gammaglobulin, hepatitis B, measles-mumps-rubella, and rabiesimmunizations; however, travelers should consult theirphysicians.Health:  Travelers should be aware of prevalent rabieshazards, and, in some outlying areas, malaria.Telecommunications:  Telephone service is good andinternational direct dialing is available.  Telegrams canbe sent from the main post office and hotels, and telexservice is available.Transportation:  Several international airlines serveCairo.  There is domestic air service between Cairo,Alexandria, Aswan, Luxor, Hurghada, the Sinai, and theNew Valley.  Rail service is available from Cairo toAswan in the south and to Alexandria in the north.  Taxisare often shared with other customers.  Settle on a pricebefore entering a taxi.Published by the United States Department of State --Bureau of Public Affairs -- Office of PublicCommunication -- Washington, DCAugust 1994 -- Managing Editor:  Peter A. Knecht  --Editor:  Peter FreemanDepartment of State Publication 8152  --  BackgroundNotes Series For sale by the Superintendent of Documents,U.S. Government Printing Office, Washington, DC  20402.</text>
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        <text>BACKGROUND NOTES:  EGYPTPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEAUGUST 1994Official Name:  EgyptPROFILEGeographyArea:  1 million sq. km. (386,000 sq. mi.); slightlysmaller than Texas, Oklahoma, and Arkansas combined.Cities:  Capital--Cairo (pop. over 14 million).  Othercities--Alexandria (6 million), Aswan, Asyut, Port Said,Suez, Ismailia.Terrain:  Desert, except Nile valley and delta.Climate:  Dry, hot summers; moderate winters.PeopleNationality:  Noun and adjective--Egyptian(s).Population (1993):  56.4 million.Annual growth rate:  2.2%.Ethnic groups:  Egyptian, Bedouin Arab, Nubian.Religions:  Sunni Muslim 90%, Coptic Christian.Languages:  Arabic (official), English, French.Education:  Years compulsory--ages 6-12.  Literacy--48%.Health:  Infant mortality rate (1992)--80/1,000.  Lifeexpectancy--58 yrs. male, 62 yrs. female.Work force:  Agriculture--39%.  Government, publicservices, and armed forces--32%.  Privately owned serviceand manufacturing enterprises--29%.GovernmentType:  Republic.Independence:   1922.  Constitution:  1971.Branches:  Executive--president, prime minister, cabinet.Legislative--People's Assembly (444 elected and 10presidentially appointed members) and Shura(consultative) Council (172 elected members, 86presidentially appointed).  Judicial-- SupremeConstitutional Court.Administrative subdivisions:  26 governorates.Political parties:  National Democratic Party (ruling),New Wafd Party, Socialist Labor Party, Liberal Party,National Progressive Unionist Grouping, Umma Party, MisrAl-Fattah Party, Green Party, Democratic Nasserite Party,and Unionist Democratic Party.Suffrage:  Universal at 18.Flag:  Three horizontal bands--red, white, and black--with a golden hawk in the center band.EconomyGDP (FY 1992-93):  $40.3 billion.Annual growth rate:  2.4%.Per capita GDP:  $715.Natural resources:  Petroleum and natural gas, iron ore,phosphates, manganese, limestone, gypsum, talc, asbestos,lead, zinc.Agriculture:  Products--cotton, rice, onions, beans,citrus fruits, wheat, corn, barley, sugar.Industry:  Types--food processing, textiles, chemicals,petrochemicals, construction, light manufacturing, ironand steel products, aluminum, cement, military equipment.Trade (FY 1992-93):  Exports--$3.4 billion:  petroleum,cotton, manufactured goods.  Major markets--Japan, Italy,Germany, France, U.K.  Imports--$10.7 billion:foodstuffs, machinery and transport equipment, paper andwood products.  Major suppliers--U.S., Germany, France,Japan, Netherlands, U.K., Italy.Exchange rate (August 1994):  3.39 Egyptian pounds=U.S.$1.PEOPLE AND HISTORYEgypt is the most populous country in the Arab world andthe second-most populous on the African Continent.Nearly 100% of the country's 58 million people live inCairo and Alexandria; elsewhere on the banks of the Nile;in the Nile delta, which fans out north of Cairo; andalong the Suez Canal.  These regions are among theworld's most densely populated, containing an average ofover 1,540 person per square kilometer (3,820 per sq.mi.).Small communities spread throughout the desert regions ofEgypt are clustered around oases and historic trade andtransportation routes.  The government has tried withmixed success to encourage migration to newly irrigatedland reclaimed from the desert.  However, the proportionof the population living in rural areas has continued todecrease as people move to the cities in search ofemployment and a higher standard of living.The Egyptians are a fairly homogeneous people of Hamiticorigin.  Mediterranean and Arab influences appear in thenorth, and there is some mixing in the south with theNubians of northern Sudan.  Ethnic minorities include asmall number of  Bedouin Arab nomads in the eastern andwestern deserts and in the Sinai, as well as some 50,000-100,000 Nubians clustered along the Nile in upper Egypt.The literacy rate is about 48% of the adult population.Education is free through university and compulsory fromages six through 12.  About 87% of children enter primaryschool; half drop out after their sixth year.  There are20,000 primary and secondary schools with some 10 millionstudents, 12 major universities with about 500,000students, and 67 teacher colleges.  Major universitiesinclude Cairo University (100,000 students), AlexandriaUniversity, and the 1,000-year-old Al-Azhar University,one of the world's major centers of Islamic learning.Egypt's vast and rich literature constitutes an importantcultural element in the life of the country and in theArab world as a whole.  Egyptian novelists and poets wereamong the first to experiment with new styles of Arabicliterature, and the forms they developed have been widelyimitated.  Egyptian novelist Naguib Mahjfouz was thefirst Arab to win the Nobel prize for literature.Egyptian books and films are available through the MiddleEast.Egypt has endured as a unified state for more than 5,000years, and archeological evidence indicates that adeveloped Egyptian society has existed for much longer.Egyptians take pride in their "pharaonic heritage" and intheir descent from what they consider mankind's earliestcivilization.  The Arabic word for Egypt is Misr, whichoriginally connotated "civilization" or "metropolis."Archeological findings show that primitive tribes livedalong the Nile long before the dynastic history of thepharaohs began.  By 6000 B.C., organized agriculture hadappeared.In about 3100 B.C., Egypt was united under a ruler knownas Mena, or Menes, who inaugurated the 30 pharaonicdynasties into which Egypt's ancient history is divided--the Old and the Middle Kingdoms and the New Empire.  Forthe first time, the use and managements of vitalresources of the Nile River came under one authority.The pyramids at Giza (near Cairo) were built in thefourth dynasty, showing the power of the pharaonicreligion and state. The Great Pyramid, the tomb ofPharaoh Khufu (also known as Cheops), is the onlysurviving example of the Seven Wonders of the AncientWorld.  Ancient Egypt reached the peak of its power,wealth, and territorial extent in the period called theNew Empire (1567-1085 B.C.).  Authority was againcentralized, and a number of military campaigns broughtPalestine, Syria, and northern Iraq under Egyptiancontrol.Persian, Greek, Roman, And Arab ConquerorsIn 525 B.C., Cambyses, the son of Cyrus  the Great, led aPersian invasion force that dethroned the last pharaoh ofthe 26th Dynasty.  The country remained a Persianprovince until Alexander the Great.  The Roman/Byzantinerule of Egypt lasted for nearly 700 years.Following a brief Persian reconquest, Egypt was invadedand conquered by Arab forces in 642.  A process ofArabization and Islamization ensued.  Although a CopticChristian minority remained--and remains today,constituting about 10% of the population--the Arablanguage inexorably supplanted the indigenous Coptictongue.  Ancient Egyptian ways--passed from pharaonictimes through the Persian, Greek, and Roman periods andEgypt's Christian era--were gradually melded with orsupplanted by Islamic customs.  For the next 1,300 years,a succession of Turkish, Arabic, Mameluke, and Ottomancaliphs, beys, and sultans ruled the country.European InfluenceNapoleon Bonaparte arrived in Egypt in 1798.  The three-year sojourn in Egypt (1798-1801) of his army and aretinue of French scientists opened Egypt to directWestern influence.  Napoleon's adventure awakened GreatBritain to the importance of Egypt as a vital link withIndia and the Far East and launched a century-and-a-halfof Anglo-French rivalry over the region.An Anglo-Ottoman invasion force drove out the French in1801, and, following a period of chaos, the AlbanianMohammed Ali obtain control of the country.  Ali ruleduntil 1849, and his successors retained at least nominalcontrol of Egypt until 1952.  He imported Europeanculture and technology, introduced state organization ofEgypt's economic life, improved education, and fosteredtraining in engineering and medicine.  His authoritarianrule was also marked by a series of foreign militaryadventures.  Ali's successors granted to the FrenchPromoter, Ferdinand de Lesseps, a concession forconstruction of the Suez Canal--begun in 1859 and opened10 years later.Their regimes were characterized by financialmismanagement and personal extravagance that reducedEgypt to bankruptcy.  These developments led to rapidexpansion of British and French financial oversight.This produced popular resentment, which, in 1879, led torevolt.In 1882, British expeditionary forces crushed thisrevolt, marking the beginning of British occupation andthe virtual inclusion of Egypt within the British Empire.During the rule of three successive British HighCommissioners between 1883 and 1914, the British agencywas the real source of authority.  It established specialcourts to enforce foreign laws for foreigners residing inthe country.  These privileges for foreigners generatedincreasing Egyptian resentment.  To secure its interestsduring World War I, Britain declared a formalprotectorate over Egypt on December 18, 1914.  Thislasted until 1922, when, in deference to growingnationalism, the U.K. unilaterally declared Egyptianindependence.  British influence, however, continued todominate Egypt's political life and fostered fiscal,administrative, and governmental reforms.In the post-independence period, three political forcescompeted with one another:  the Wafd, a broadly basednationalist political organization strongly opposed toBritish influence; King Fuad, whom the British hadinstalled in the throne during the war; and the Britishthemselves, who were determined to maintain control overthe canal.Although both the Wafd and the King wanted to achieveindependence from the British, they competed for controlof Egypt.  Other political forces emerging in this periodincluded the communist party (1925) and the MuslimBrotherhood (1928), which eventually became a potentpolitical and religious force.During World War II, British troops used Egypt as a basefor Allied operations throughout the region.  Britishtroops were withdrawn to the Suez Canal area in 1947, butnationalist, anti-British feelings continued to growafter the war.  Violence broke out in early 1952 betweenEgyptians and British in the canal area, and anti-Westernrioting  in Cairo followed.On July 22-23, 1952, a group of disaffected army officersled by Lt. Col. Gamal Abdel Nasser overthrew King Farouk,whom the military blamed for Egypt's  poor performance inthe 1948 war with Israel.  Following a brief experimentwith civilian rule, they abrogated the 1923 constitutionand declared Egypt a republic on June 19, 1953.  Nasserevolved into a charismatic leader, not only of Egypt butof the Arab world.Nasser and his "free officer" movement enjoyed almostinstant legitimacy as liberators who had ended 2,500years of foreign rule.  They were motivated by numerousgrievances and  goals but wanted especially to break theeconomic and political power of the land owning  elite,to remove all vestiges of British control, and to improvethe lot of the people, especially the fellahin(peasants).A secular nationalist, Nasser developed a foreign policycharacterized by advocacy of pan-Arab socialism,leadership of the "nonaligned" of the "Third World," andclose ties with the Soviet Union.  He sharply opposed theWestern-sponsored Baghdad Pact.  When the United Statesheld up military sales in reaction to Egyptian neutralityvis-a-vis Moscow, Nasser concluded an arms deal withCzechoslovakia in September 1955.When the U.S. and the World Bank withdrew their offer tohelp finance the Aswan High Dam in mid-1956, henationalized the privately owned Suez Canal Company.  Thecrisis that followed, exacerbated by growing tensionswith Israel over guerrilla attacks from Gaza and Israelireprisals, resulted in the invasion of Egypt that Octoberby France, Britain, and Israel.While Egypt was defeated, the invasion forces werequickly withdrawn under heavy pressure from the U.S.  TheSuez war (or, as the Egyptians call it, the TripartiteAggression) instantly transformed Nasser into an Egyptianand Arab hero.He soon after came to terms with Moscow for the financingof the Aswan High Dam--a step that enormously increasedSoviet involvement in Egypt and set Nasser's Governmenton a policy of close ties with the Soviet Union.In 1958, pursuant to his policy of pan-Arabism, Nassersucceeded in uniting Egypt and Syria into the United ArabRepublic.  Although this union had failed by 1961, it wasnot officially dissolved until 1984.Nasser's domestic policies were arbitrary, frequentlyoppressive, and yet generally popular.  All oppositionwas stamped out, and opponents of the regime frequentlywere imprisoned without trial.  Nasser's foreignpolicies, among other things, helped provoke the Israeliattack of June 1967 that virtually destroyed Egypt'sarmed forces along with those of Jordan and Syria.Israel also occupied the Sinai peninsula, the Gaza Strip,the West Bank, and the Golan Heights.  Nasser,nonetheless, was revered by the masses in Egypt andelsewhere in the Arab world until his death in 1970.After Nasser's death, another of the original "freeofficers," Vice President Anwar el-Sadat, was electedPresident.  In 1971, Sadat concluded a treaty offriendship with the Soviet Union but, a year later,ordered Soviet advisers to leave.  In 1973, he launchedthe October war with Israel, in which Egypt's armedforces  achieved initial successes but were defeated inIsraeli counterattacks.Camp David and The Peace ProcessIn a momentous change from the Nasser era, PresidentSadat shifted Egypt from a policy of confrontation withIsrael to one of peaceful accommodation throughnegotiations.  Following the Sinai DisengagementAgreements of 1974 and 1975, Sadat created a freshopening for progress by his dramatic visit to Jerusalemin November 1977.  This led to President Jimmy Carter'sinvitation to President Sadat and Prime Minister Begin tojoin him in trilateral negotiations at Camp David.The outcome was the historic Camp David accords, signedby Egypt and Israel and witnessed by the U.S. onSeptember 17, 1978.  The accords led to the March 26,1979, signing of the Egypt-Israel peace treaty, by whichEgypt regained control of the Sinai in May 1982.Throughout this period, U.S.-Egyptian relations steadilyimproved, but Sadat's willingness to break ranks bymaking peace with Israel earned him the enmity of mostother Arab states.In domestic policy, Sadat introduced greater politicalfreedom and a new economic policy, the most importantaspect of which was the infitah or "open door."  Thisrelaxed government controls over the economy andencouraged private investment.  Sadat dismantled much ofthe policy apparatus and brought to trial a number offormer government officials accused of criminal excessesduring the Nasser era.Liberalization also included the reinstitution of dueprocess and the legal banning of torture.  Sadat tried toexpand participation in the political process in the mid-1970s but later abandoned this effort.  In the last yearsof his life, Egypt was racked by violence arising fromdiscontent with Sadat's rule and sectarian tensions, andit experienced a renewed measure of repression.On October 6, 1981, President Sadat was assassinated byIslamic extremists.  Hosni Mubarak, Vice President since1975 and air force  commander during the October 1973war, was elected president later that month.  He was re-elected to a second term in October 1987 and to a thirdterm in October 1993.  Mubarak has maintained Egypt'scommitment to the Camp David peace process, while at thesame time re-establishing Egypt's position as an Arableader.  Egypt was readmitted to the Arab League in 1989.Egypt has also played a moderating role in suchinternational fora as the UN and the Nonaligned Movement.Mubarak was elected chairman of the Organization ofAfrican Unity in 1989, and again at the OAU summit inCairo in June 1993.  Domestically, since 1991, Mubarakhas undertaken an ambitious reform program to reduce thesize of the public sector and expand the role of theprivate sector.  There has also been a democratic openingand increased participation in the political process byopposition groups.  The November 1990 National Assemblyelections saw 61 members of the opposition win seats inthe 454-seat assembly, despite a boycott  by severalopposition parties citing possible manipulation byMubarak's National Democratic Party (NDP).  Theopposition parties have been weak and divided and are notyet credible alternatives to the NDP.Freedom of the press has increased greatly.  Whileconcern remains that economic problems could promoteincreasing dissatisfaction with the government, PresidentMubarak enjoys broad support.For several years, domestic political debate in Egypt hasbeen concerned with the phenomenon of "Political Islam,"i.e., a movement which seeks to establish a state andsociety governed strictly by Islamic doctrine.  TheMuslim Brotherhood, founded in Egypt in 1928, is legallyproscribed, but operates more or less openly.  Egyptianlaw, however, prohibits the formation of religion-basedpolitical parties.  Members of the Brotherhood have beenelected to the People's Assembly as independents and havebeen elected to local councils as candidates on theSocialist Labor Party ticket.GOVERNMENT AND POLITICAL CONDITIONSThe Egyptian constitution provides for a strongexecutive.  Authority is vested in an elected presidentwho can appoint one or more vice presidents, a primeminister, and a cabinet.  The president's term runs forsix years.  Egypt's legislative body, the People'sAssembly, has 454 members--444 popularly elected and 10appointed by the president.  The constitution reserves50% of the assembly seats for "workers and peasants."The assembly sits for a five-year term but can bedissolved earlier by the president.  There is also a 258-member National Shura (consultative) Council, in which 86members are appointed and 172 elected for six-year terms.Below the national level, authority is exercised by andthrough governors and mayors appointed by the centralgovernment and by popularly elected local councils.Although power is concentrated in the hands of thepresident and the National Democratic Party majority inthe People's Assembly, opposition party organizationsmake their views public and represent their followers atvarious levels in the political system.In addition to the ruling National Democratic Party,there are nine other recognized parties.  Since 1990, thenumber of recognized parties has doubled from five to 10.The law prohibits the formation of parties along classlines, thereby making it illegal for communist groups toorganize formally as political parties.The process of gradual political liberalization begun bySadat has continued under Mubarak.  Egyptians now enjoyconsiderable freedom of the press, and recognizedopposition political parties operate freely.  Althoughthe November 1990 elections are generally considered tohave been fair and free, there are significantrestrictions on the political process and freedom ofassociation for non-governmental organizations.Opposition parties continue to make credible complaintsabout electoral manipulation by the government.  Forexample, in the 1989 Shura Council elections, the rulingNDP won 100% of the seats.Egypt's judicial system is based on European (primarilyFrench) legal concepts and methods.  Under the MubarakGovernment, the courts have demonstrated increasingindependence, and the principles of due process andjudicial review have gained greater respect.  The legalcode is derived largely from the Napoleonic Code.Marriage and personal status (family law) are primarilybased on the religious law of the individual concerned,which for most Egyptians is Islamic Law (Sharia).Principal Government OfficialsPresident--Muhammad Hosni Mubarak Prime Minister--AtefSedkyDeputy Prime Minister and Minister of Foreign Affairs--Amre MoussaAmbassador to the United States--Ahmad Maher El-SayyedAmbassador to the United Nations--Nabil El-ArabyEgypt maintains an embassy in the United States at 3521International Court NW, Washington, DC 20008 (tel. [phone]).  The Washington consulate has the same address(tel. [phone]).  The Egyptian mission to the UnitedNations is located at 36 East 67th Street, New York, NY(tel. [phone]).  Egyptian consulates general arelocated at:  1110 Second Avenue, New York, NY 10022 (tel.[phone]); 2000 West Loop South, Suite 1750, ControlData Building, Houston, TX  77027 (tel. [phone]);505 N. Lake Shore Drive, Suite 4902, Chicago, IL 60611(tel. [phone]); and 3001 Pacific Avenue, SanFrancisco, CA 94115 (tel. [phone]).ECONOMYUnder comprehensive economic reforms initiated in 1991,Egypt has relaxed many price controls, reduced subsidies,and partially liberalized trade and investment.Manufacturing is still dominated by the public sector,which controls virtually all heavy industry.  A processof public sector reform and privatization has begun,however, which could enhance opportunities for theprivate sector.  Agriculture, mainly in private hands,has been largely deregulated, with the exception ofcotton and sugar production.  Construction, non-financialservices, and domestic marketing are largely private.AgricultureMore than one-third of Egyptian labor is engaged directlyin farming, and many others work in the processing ortrading of agricultural products.  Practically allEgyptian agriculture takes place in some 2.5 millionhectares (6 million acres) of fertile soil in the NileValley and Delta.  Some desert lands are being developedfor agriculture, but other fertile lands in the NileValley and Delta are being lost to urbanization anderosion.Warm weather and plentiful water permit several crops ayear.  Further improvement is possible, but agriculturalproductivity is  already high, considering thetraditional methods used.  Egypt has little subsistencefarming.  Cotton, rice, onions, and beans are theprincipal crops.  Cotton is the largest agriculturalexport earner.The United States is a major supplier of wheat to Egypt,through commercial sales and the PL 480 (Food for Peace)program.  Other Western countries have also supplied foodon concessional terms."Egypt," wrote the Greek historian Herodotus 25 centuriesago, "is the gift of the Nile."  The land's seeminglyinexhaustible resources of water and soil carried by thismighty river created in the Nile Valley and Delta theworld's most extensive oasis.  Without the Nile, Egyptwould be little more than a desert wasteland.The river carves a narrow, cultivated floodplain, nevermore than 20 kilometers wide, as it travels northwardfrom Sudan to form Lake Nasser, behind the Aswan HighDam.  Below the dam, just north of Cairo, the Nilespreads out over what was once a broad estuary that hasbeen filled by riverine deposits to form a fertile deltaabout 250 kilometers wide (150 mi.) at the seaward baseand about 160 kilometers (96 mi.) from south to north.Before the construction of dams on the Nile, particularlythe Aswan High Dam, the fertility of the Nile Valley wassustained by the water flow and the silt deposited by theannual flood.  Sediment is now obstructed by the AswanHigh Dam and retained in Lake Nasser.  The interruptionof yearly, natural fertilization and the increasingsalinity of the soil have detracted somewhat from thehigh dam's value.  Nevertheless, the benefits remainimpressive:  more intensive farming on millions of acresof land made possible by improved irrigation, preventionof flood damage, and the generation of billions of low-cost kilowatt hours of electricity.The Western Desert accounts for about two-thirds of thecountry's land area.  For the most part, it is a massivesandy plateau marked by seven major depressions.  One ofthese, Fayoum, was connected about 3,600 years ago to theNile by canals.  Today, it is an important irrigatedagricultural area.Natural ResourcesIn addition to the agricultural capacity of the NileValley and delta, Egypt's natural resources includepetroleum, natural gas, phosphates, and iron ore.Petroleum deposits are found primarily in the Gulf ofSuez, the Nile delta, and the Western Desert.  Thepetroleum and natural gas sector accounted forapproximately 10% of GDP in FY 1991-92.Petroleum products represented about 45% of exportearnings during that period.  The fall in world oilprices after the 1991 Gulf war pushed Egypt's benchmark"Suez Blend" to an average price of $15 per barrel in FY1991-92, compared with $20 per barrel in FY 1990-91.Thus, the value of Egyptian crude oil exports dropped to$1.2 billion in FY 1991-92 versus $1.5 billion in FY1990-91.Petroleum production dropped slightly in FY 1991-92 to 44million tons at 870,000 barrels per day.  To limit thedomestic consumption of oil, Egypt is encouraging theproduction of natural gas.  Natural gas output continuesto increase, and reached 7.2 million metric tonsequivalent in FY 1991-92.Twelve petroleum exploration agreements were signed in1992, under which six companies are expected to spendover $90 million to drill 24 wells.Since 1991, the government has tried to attract enoughforeign investment to maintain existing exploration andproduction and attract new investment.  In October 1991,the government adopted a market-determined petroleumexport pricing formula.Transport and CommunicationTransportation facilities in Egypt are centered on Cairoand largely follow the pattern of settlement along theNile.  The major line of the nation's 4,800-kilometer(2,800-mi.) railway network runs from Alexandria toAswan.  The well-maintained road network has expandedrapidly to over 21,000 miles, covering the Nile valleyand delta, Mediterranean and Red Sea coasts, the Sinai,and the Western oases.Egyptair provides reliable domestic air services to majortourist destinations from its Cairo hub (in addition tooverseas routes).  The Nile River system (about  1,600km. or 1,000 mi.) and the principal canals (1,600 km.)are important locally for transportation.  The Suez Canalis a major waterway of international commerce andnavigation, linking the Mediterranean and Red Seas.Major ports are Alexandria, Port Said, and Damietta onthe Mediterranean, and Suez and Safraga on the Red Sea.Egypt has long been the cultural and informational centerof the Arab world, and Cairo is the region's largestpublishing and broadcasting center.  There are eightdaily newspapers with a total circulation of more than 2million, and a number of monthly newspapers, magazines,and journals.  The majority of political parties havetheir own newspapers, and these papers conduct a lively,often highly partisan debate on public issues.Radio and television are owned and controlled by thegovernment through the Egyptian Radio and TelevisionFederation.  The Federation operates two nationaltelevision networks and three regional stations in Cairo,Alexandria, and Ismailia.  The government also beamsdaily satellite programming to the rest of the Arabworld, the U.K., and the U.S.DEFENSEEgypt's armed forces are among the largest in the region,and include the army (290,000), air defense (70,000), airforce (30,000), and navy (20,000).  The armed forcesinventory includes equipment from the United States,France, Italy, the United Kingdom, the former SovietUnion, and China.  Most of the equipment from the formerSoviet Union is being replaced by more modern American,French, and British equipment, of which significantamounts are being built under license in Egypt.  Tobolster stability and moderation in the region, Egypt hasprovided military assistance and training to a number ofAfrican and Arab states.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  ECUADOR PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of EcuadorPROFILEGeographyArea:  283,600 sq. km. (109,483 sq. mi.); about the size of Colorado.  Cities:  Capital--Quito (pop. 1.5 million).  Other cities--Guayaquil (2 million).  Terrain:  Jungle, mountains to coastal plain.  Climate:  Varied.PeopleNationality:  Noun and adjective--Ecuadorian(s).  Population (1994 est.):  11.2 million.  Annual growth rate:  2.2%.  Ethnic groups:  Indian 25%, mestizo (mixed Indian-Caucasian) 65%, Caucasian and others 7%, African 3%.  Religion:  Predominantly Roman Catholic, but religious freedom recognized.  Languages:  Spanish (official), Indian languages, especially Quechua.  Education:  Years compulsory--ages 6-14, but enforcement varies.  Attendance (through 6th grade)--urban 76%, rural 33%.  Literacy--88%.  Health:  Infant mortality rate--51/1,000.  Life expectancy--66 yrs.  Work force (4.8 million):  Agriculture--42%.  Commerce--20%.  Services--19%.  Manufacturing--11%.  Other--8%.GovernmentType:  Republic.  Constitution:  1979.  Independence:  August 10, 1809.Branches:  Executive--president and 14 cabinet ministers.  Legislative--77-member unicameral Congress.Judicial (undergoing reform at this time)--Supreme Court, provincial courts, and ordinary civil and penal judges.Administrative subdivisions:  21 provinces.Political parties:  15 legal political parties; none predominates.  Suffrage:  Obligatory for literate citizens 18 to 65 yrs. of age; optional for others; active duty military personnel may not vote.Economy  (1994 est.)GDP:  $16.6 billion.  Annual growth rate:  3.4%.  Per capita income:  $1,480.  Natural resources:  Petroleum, fish, shrimp, timber, gold, limestone.Agriculture (13% of GDP):  bananas, seafood, coffee, cacao, sugar, rice, corn, and livestock.Industry (23% of GDP):  food processing, wood products, textiles, chemicals, and pharmaceuticals.Trade:  Exports--$2.9 billion:  petroleum and petroleum products, bananas, shrimp, coffee, flowers, cocoa.  Major markets-- U.S., Europe, and Japan.  Imports--$2.8 billion:  agricultural and industrial machinery, industrial raw materials, agricultural commodities, chemical products, transportation and communication equipment, petroleum products.  Major suppliers--U.S. 33%, European Union (EU) 16%, Japan 13%, Latin American Integration Association (ALADI) 19%.Exchange rate (October 1994):  2,270 sucres=U.S.$1.  PEOPLEEcuador's population is ethnically mixed.  The largest groups are Indian and mestizo (mixed Indian-Caucasian).  Although Ecuadorians were heavily concentrated in the mountainous central highland region a few decades ago, today's population is divided about equally between that area and the coastal lowlands.  Migration toward cities--particularly larger cities--in all regions has increased the urban population to about 55%.  The tropical forest region to the east of the mountains remains sparsely populated and contains only about 3% of the population.  The educational system is tuition-free, and attendance is mandatory from ages 6 to 14.  In practice, however, many children drop out before age 15, and, in rural areas only about one-third completes sixth grade.  The government is striving to create better programs for the rural and urban poor, especially in technical and occupational training.  In recent years, it has also been successful in reducing illiteracy.  Enrollment in primary schools has been increasing at an annual rate of 4.4%--faster than the population growth rate--and, during the 1980s, the number of university students increased about 18% per year.  According to the 1979 constitution, the central government must allocate at least 30% of its budget to education.  But due to the current recession, the budget allocation has dropped below 30%, and severe cuts are expected in the future.Public universities have an open admissions policy.  In recent years, however, large increases in the student population, budget difficulties, and extreme politicization have led to a decline in academic standards.HISTORYAdvanced indigenous cultures flourished in Ecuador long before being conquered by the Inca empire in the late 15th century.  In 1534, the Spanish arrived and defeated the Inca armies, and Spanish colonists became the new elite.  The indigenous population was decimated by disease and converted by Catholic missionaries while providing labor for Spanish land owners.  In 1563, Quito became the seat of a royal audencia of Spain.After independence forces defeated the royalist army in 1822, Ecuador joined Simon Bolivar's Republic of Gran Colombia, only to become a separate republic in 1830.  The 19th century was marked by instability, with a rapid succession of rulers.  The conservative Gabriel Garcia Moreno unified the country in the 1860s with the support of the Catholic Church.  In the late 1800s, world demand for cocoa tied the economy to commodity exports and led to migrations from the highlands to the agricultural frontier on the coast.  A coastal-based liberal revolution in 1895 under Eloy Alfaro reduced the power of the clergy and opened the way for capitalist development.The end of the cocoa boom produced renewed political instability and a military coup in 1925.  The 1930s and 1940s were marked by more disorder and the emergence of populist politicians such as five-time president Jose Velasco Ibarra.  Ecuador lost control over much of its Amazon territory in 1941 in a brief war with Peru.  After World War II, a recovery in the market for agricultural commodities and the growth of the banana industry helped restore prosperity and political peace.  From 1948-60, three presidents--beginning with Galo Plaza-- were freely elected and completed their terms.Recession and popular unrest led to a return to populist politics and domestic military interventions in the 1960s, while foreign companies developed oil resources in the Ecuadorian Amazon.  In 1972, a nationalist military regime seized power and used the new oil wealth and foreign borrowing to pay for a program of industrialization, land reform, and subsidies for urban consumers.  With the oil boom fading, Ecuador returned to democracy in 1979, but by 1982 the government faced a chronic economic crisis, including inflation, budget deficits, a falling currency, mounting debt service, and uncompetitive industries.The 1984 presidential elections were narrowly won by Leon Febres Cordero of the Social Christian Party (PSC).  During the first years of his administration, Febres Cordero introduced free-market economic policies, took strong stands against drug trafficking and terrorism, and pursued close relations with the United States.  His tenure was marred by bitter wrangling with other branches of government and a short-lived kidnaping by elements of the military.  A devastating earthquake in March 1987 interrupted oil exports and worsened the country's economic problems.  Rodrigo Borja of the Democratic Left (ID) party won a landslide victory in 1988.  His government was committed to human rights and carried out some reforms, notably an opening of Ecuador to foreign trade.  The Borja government concluded an accord leading to the disbanding of the small terrorist group, Alfaro Lives Dammit.  However, continuing economic problems undermined the popularity of the ID, and opposition parties gained control of Congress in 1990.In 1992, both major candidates for president promised market-oriented economic reform; Sixto Duran Ballen won in his third run for the presidency.  Although the current government's popularity has suffered from tough macroeconomic adjustment measures, and its Republican Unity-Conservative coalition is a small minority in Congress, a number of modernization initiatives have been approved.  On foreign policy, President Duran Ballen has strengthened ties to the United States, pursued Andean economic integration, and continued efforts to resolve Ecuador's historic border dispute with Peru in the Amazon region.GOVERNMENTThe 1979 constitution provides for concurrent four-year terms of office for the president, vice president, and the 12 members of Congress (of a total of 77) who are elected as "national" (at-large) legislators.  The remaining 65 legislators, representing the country's 21 provinces, serve for two years.  No president may be re-elected, and outgoing legislators cannot be re-elected until an intervening term has passed.Each year, legislators elect from among themselves a president and vice president of Congress.  Congress meets for two months a year.  For the remainder of the year--unless an extraordinary plenary session is called--all legislative business is transacted by the 28 members of the Congress who serve on four permanent committees, which are responsible for the budget and for economic, labor, social, civil, and penal matters.Ecuador has a three-tiered court system.  Justices of the Supreme Court are appointed by the Congress for four-year terms.  The Supreme Court names the members of the superior (provincial) courts, who, in turn, choose ordinary civil and penal judges.  At this time, the Ecuadorian Government is undergoing judicial reform.  In December 1992, the Supreme Court was reconstructed, and additional reform initiatives are scheduled.The executive branch includes 14 ministries and several cabinet-level secretariats headed by presidential appointees.  The president also appoints Ecuador's 20 provincial governors (the capital district of Pichincha Province does not have a governor), who represent the central government at the local level.  Provincial prefects and councillors, like municipal mayors and aldermen, are directly elected.Principal Government OfficialsPresident--Sixto DURAN BALLENVice President--Alberto DAHIKMinister of Foreign Affairs--Ambassador Galo LEOROAmbassador to the U.S.--Edgar TERAN TeranAmbassador to the UN--Luis VALENCIAAmbassador to the OAS--Blasco PENAHERRERAEcuador maintains an embassy in the United States at 2535 15th Street, NW, Washington, DC 20009 (tel. [phone]) and consulates in Chicago, Dallas, Houston, Los Angeles, Miami, New Orleans, New York, and San Francisco.POLITICAL CONDITIONSEcuador's political parties have historically been small, loose organizations that depended more on populist, often charismatic, leaders to retain support than on programs or ideology.  Frequent internal splits have produced extreme factionalism.  However, a pattern has emerged in which administrations from the center-left alternate with those from the center-right as the electorate searches for leaders who will bring about necessary economic reforms at minimal social cost.  Although Ecuador's political elite is highly factionalized along regional, ideological, and personal lines, a strong desire for consensus on major issues often leads to compromises.  Structural reforms are difficult to legislate and implement, but widespread recognition of the need for change has enabled Ecuador to enjoy a relatively high degree of social stability. To encourage the development of strong, stable political parties, the constitution places various restrictions on potential candidates.  Only candidates affiliated with registered political parties can run for elective office.  To be registered, a party must file a petition signed by a number of unaffiliated citizens equal to at least 1.5% of the number of valid votes cast in the previous national election.  The party must then field candidates in at least 10 of the country's provinces, including two of the three most populous.The 1994 congressional and local elections revealed that political fragmentation continues.  Fifteen parties, including two socialist parties, participated in the election.  Thirteen political parties are currently represented in the Congress.  The congressional opposition remains loosely organized.  However, since the 1992 presidential elections, the governing coalition has experienced a sharp decrease in popularity.  President Duran Ballen's Republican Unity Party (PUR) and Vice President Alberto Dahik's Conservative Party (PCE) together won a total of only nine seats in Congress in the 1994 congressional elections, compared to 17 seats in 1992.  The next presidential election will be held in 1996.ECONOMYEcuador's gross domestic product (GDP) will reach $16.6 billion for 1994.  Due to austerity measures, economic growth was only 2% in 1993 but should exceed 3% in 1994.  The economy is based on petroleum production, along with exports of agricultural commodities and seafood.  The state oil industry makes up 11% of GDP, generates 35% of total exports, and provides about half of government revenue.  Agriculture and fishing contribute 13% of GDP.  Ecuador is a major world producer of bananas and shrimp.  Cocoa, coffee, and tuna are also exported.  Non-traditional agricultural products, such as flowers and winter vegetables, are becoming more important.  Industry accounts for 23% of GDP, but is largely oriented to the domestic market.Ecuador's merchandise exports are estimated at  $2.9 billion for 1994 and its imports at $2.8 billion.  Lower trade barriers in the region, including free-trade agreements with Colombia, Venezuela, and Bolivia, are helping manufacturers of vehicles and other products become more export oriented.  Ecuador has reduced most tariffs to 5%-20% and plans to implement a common external tariff with Colombia and Venezuela in the near future.  As part of its application to accede to the General Agreement on Tariffs and Trade (GATT), the government is addressing the few remaining obstacles to trade, including agricultural price bands, minimum import prices, and sanitary registrations.  Ecuador signed an intellectual property rights agreement with the United States in 1993 but has not yet implemented it.  Ecuador has a unified, free market in foreign exchange.  During the oil boom of the 1970s, the government borrowed heavily from abroad, increased subsidies, and expanded the state's economic role.  Such policies became unsustainable, leading to chronic macroeconomic instability in the 1980s.  President Duran Ballen took office in 1992 promising to stabilize the economy, modernize the state, and expand the free market.  A sizeable devaluation of the sucre in 1992, large public-sector price hikes, market pricing of fuel, and spending reductions--together with monetary, budget, and tax reforms--have nearly eliminated the public deficit, reduced inflation from 60% to about 25%, slowed the depreciation of the sucre, and built up foreign currency reserves to over $1.5 billion.  Ecuador is meeting the targets for its 1994-96 program with the International Monetary Fund (IMF).  In May 1994, the government concluded an agreement to discount and restructure $7.3 billion in foreign commercial bank debt and arrears.The structural reforms required to improve prospects for investment and growth have proven more difficult to  achieve.  Government staffing has been cut and many unnecessary regulations have been eliminated.  Banks and capital markets are modernizing under new financial laws.  Shares held by the state in private companies are being sold.  The government plans to partially privatize some of the major state enterprises, including telephone services, electricity generation, and the petroleum pipeline.  The government also hopes to reform the social security and education systems.  However, there is substantial political opposition to the modernization program.Liberalized investment regulations afford foreign investors national treatment--including equal tax rates--and do not require prior authorization for investment in most industries.  A bilateral investment treaty with the United States approved in 1994 provides for transfers of capital and profits and a binding arbitration dispute settlement procedure.  The 1993 hydrocarbons law makes investment in petroleum exploration more attractive, while the 1994 agrarian development law has improved the security of agricultural land tenure. FOREIGN RELATIONSA small country, Ecuador always has placed a great deal of emphasis on multilateral approaches to international problems.  Ecuador is a member of the United Nations (and most of its specialized agencies) and the Organization of American States; it is also a member of many regional groups, including the Latin American Economic System, the Latin American Energy Organization, the Latin American Integration Association, and the Andean Pact.  One of Ecuador's basic foreign policy objectives is to revise the 1942 Rio Protocol of Peace, Friendship, and Boundaries to gain access to the Maranon River, a main tributary of the Amazon.  Ecuador maintains that the protocol unfairly awarded to Peru territory which rightfully belongs to Ecuador.  Geographical features along the 78-kilometer-wide (49-mi.) strip of land that do not match topographical descriptions in the protocol have, according to Ecuador, made a complete boundary demarcation between the two countries "inexecutable."This long-running border dispute has occasionally erupted into armed hostility along the undemarcated section.  The most recent and serious episode occurred in 1981.  Ecuador has requested that the four guarantor countries of the Rio Protocol (Argentina, Brazil, Chile, and the United States) help end the formal border differences.In addition to international financial institutions, Ecuador looks primarily to the United States, Europe, and Japan for assistance in addressing its problems of social and economic development.  The government has indicated that it will seek to attract private foreign investment and has taken steps to remove impediments to trade.U.S.-ECUADORIAN RELATIONSThe United States and Ecuador have maintained close ties based on mutual interests in maintaining democratic institutions; counternarcotics efforts; building trade, investment, and financial ties; cooperating in fostering Ecuador's economic development; and participating in inter-American organizations.  Ties are further strengthened by the presence of Ecuadorians living in the United States.  The United States assists Ecuador's economic development directly through the U.S. Agency for International Development (USAID) program in Ecuador and through multilateral organizations such as the Inter-American Development Bank and the World Bank.  In addition, the U.S. Peace Corps operates a sizeable program in Ecuador.Both nations are signatories of the Inter-American Treaty of Reciprocal Assistance (the Rio Treaty of 1947), the Western Hemisphere's regional mutual security treaty.  Ecuador shares U.S. concern about increasing narco-trafficking and international terrorism.  Ecuador energetically has condemned terrorist actions, whether directed against government officials or private citizens.  The government has maintained Ecuador virtually free of coca production since the mid-1980s and is working to combat money laundering and the transshipment of drugs and precursor chemicals.The United States claims jurisdiction for the management of coastal fisheries up to 320 kilometers (200 mi.) from its coast, but excludes highly migratory species.  Ecuador, on the other hand, claims a 320-kilometer-wide (200-mi.) territorial sea and imposes license fees and fines on foreign fishing vessels in the area, making no exceptions for catches of migratory species.  In the early 1970s, Ecuador seized about 100 foreign-flag vessels (many of them U.S.) and collected fees and fines of more than $6 million.  After a drop-off in such seizures for some years, several U.S. tuna boats were again detained and seized in 1980 and 1981.  The U.S. Magnuson Fishery Conservation and Management Act then triggered an automatic prohibition of U.S. imports of tuna products from Ecuador.  The prohibition was lifted in 1983, and although fundamental differences between U.S. and Ecuadorian legislation still exist, there is no current conflict.  During the period that has elapsed since the seizures which triggered the tuna import ban, successive Ecuadorian Governments have declared their willingness to explore possible solutions to this problem with mutual respect for the long-standing positions and principles of both sides.Principal U.S. Embassy OfficialsAmbassador--Peter RomeroDeputy Chief of Mission--Susan WoodGuyaquil Consul General--Daniel A. JohnsonThe U.S. embassy in Ecuador is located at Avenida Patria 120, Quito (tel. [phone]).  The consulate general is at 9 de Octubre and Garcia Moreno, Guayaquil (tel. [phone]).  (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  DOMINICAN REPUBLICPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Dominican RepublicPROFILEGeographyArea:  48,442 sq. km. (18,704 sq. mi.), about the size of Vermont and New Hampshire combined.  Cities:  Capital--Santo Domingo (pop. 2.4 million).  Other city--Santiago de los Caballeros (500,000).  Terrain:  Mountainous.  Climate:  Maritime tropical.PeopleNationality:  Noun and adjective--Dominican(s).  Population (1993):  7.6 million.  Annual growth rate:  2.1%.  Ethnic groups:  European 16%, African origin 11%, mixed 73%.  Religion:  Roman Catholic 95%.  Language:  Spanish.  Education:  Years compulsory--6.  Attendance--70%.  Literacy--83%.  Health:  Infant mortality rate--54/1,000.  Life expectancy--65 yrs. for men, 70 yrs. for women.  Workforce:  Services and government--31% (includes parastatal corporations).  Agriculture--28%.  Industry--12%.  Unemployment--29%.GovernmentType:  Representative democracy.  Independence:  February 27, 1844.Constitution:  November 28, 1966.Branches:  Executive--president (chief of state and head of government), vice president, cabinet.  Legislative--bicameral Congress (Senate and Chamber of Deputies).  Judicial--Supreme Court of Justice.Subdivisions:  29 provinces and the National District of Santo Domingo.Political parties:  Social Christian Reformist Party (PRSC), Dominican Revolutionary Party (PRD), Dominican Liberation Party (PLD), Independent Revolutionary Party (PRI), others.Suffrage:  Universal and compulsory, over 18 or married; military and police may not vote.Economy (1993)GDP:  $8.7 billion. Growth rate (1993):  3% . Per capita GDP:  $1,065. Natural resources (3% of GDP):  Nickel, gold, silver.Agriculture (13% of GDP):  Products--sugar, coffee, cocoa, tobacco, rice, plantains, beef, flowers.Industry (24% of GDP):  Types--sugar refining, pharmaceuticals, cement, light manufacturing, off-shore assembly operations (esp. textiles), construction. Services, transportation:  60% of GDP.Trade:  Exports (excluding processing zones)--$561 million:  sugar, coffee, gold, silver, ferronickel, cacao, tobacco, meats. Partners--U.S., Netherlands.  Imports--2.2 billion:  foodstuffs, petroleum, industrial raw materials, capital goods.  Partners--U.S., Japan, Germany, Venezuela, Mexico.Exchange rate:  U.S.$1=RD$14.  PEOPLEAbout 50% of the people live in rural and agricultural areas; many are small landholders. Haitians form the largest foreign minority group, with Spanish and West Indians the other important ethnic groups. About 60,000 U.S. citizens reside in the Dominican Republic, mostly around the capital.All religions are tolerated; the state religion is Roman Catholicism, recognized formally in 1954, when a concordat with the Vatican was signed.HISTORYThe island of Hispaniola, of which the Dominican Republic forms the eastern two-thirds and Haiti the remainder, was originally occupied by members of the Taino tribe, a branch of Arawak-speaking people who may have originated in South America.  The people welcomed Columbus at the end of his first voyage in 1492, but subsequent colonizers were brutal. Colonial conditions reduced the Taino population from an estimated 1 million to about 500 in only 50 years.  To ensure adequate labor for plantations, the Spanish began bringing African slaves to the island in 1503.In the next century, French settlers occupied the western end of the island, which Spain ceded to France in 1697, and which in 1804 became the Republic of Haiti.  The Haitians conquered the whole island in 1822 and held it until 1844, when forces led by Juan Pablo Duarte, the hero of Dominican independence, drove them out and established the Dominican Republic as an independent state.  In 1861, the Dominicans voluntarily returned to the Spanish Empire; in 1865, independence was restored.Economic difficulties, the threat of European intervention, and ongoing internal disorders led to U.S. occupation in 1916 and the establishment of a military government in the Dominican Republic.  Occupation ended in 1924, with a democratically elected Dominican government.In 1930, Rafael L. Trujillo, who had come to prominence as commander of the army, took power and maintained absolute political control.  Trujillo promoted economic development from which he and his supporters largely benefited as well as intervention in the affairs of neighboring states and severe repression of domestic human rights.  Mismanagement and corruption resulted in major economic problems.  In August 1960, the Organization of American States (OAS) imposed diplomatic sanctions against the Dominican Republic as a result of Trujillo's complicity in an attempt to assassinate President Romulo Betancourt of Venezuela.  These sanctions remained in force after Trujillo's death by assassination in May 1961.  In November 1961, the Trujillo family was forced into exile.In January 1962, a council of state that included moderate opposition elements with legislative and executive powers was formed.  OAS sanctions were lifted January 4, and, after the resignation of President Joaquin Balaguer on January 16, the council, under President Rafael E. Bonnelly, became the effective Dominican Government.Following free elections in December 1962, Juan Bosch, of the Dominican Revolutionary Party (PRD), was inaugurated President.  Despite his reform program and respect for human rights, conflicts arose between him and various opposition groups, and bitter political controversy spread nationwide.  In September 1963, President Bosch was overthrown in a military coup.Another military coup, on April 24, 1965, led to violence between military elements favoring the return to government by Bosch--the "constitutionalists"--and those who proposed a military junta committed to early general elections--the "loyalists."  On April 28, U.S. military forces landed to protect U.S. citizens and to evacuate U.S. and other foreign nationals.  The situation in Santo Domingo deteriorated into near anarchy.  Communist leaders, many of whom were trained in Cuba, threatened to take control of the revolutionary movement.  More U.S. forces landed on April 30 to prevent a complete communist takeover.In June 1966, the government held elections witnessed by OAS observers.   Balaguer defeated Bosch for the presidency, receiving 57% of the vote.  President Balaguer, leader of the Reformist Party (now called the Social Christian Reformist Party--PRSC), was then re-elected to office in May 1970 and May 1974, both times after major opposition parties withdrew late in the campaign.In the May 1978 election, Balaguer was defeated in his bid for a fourth successive term by Antonio Guzman of the PRD.  Guzman's inauguration on August 16 marked the country's first peaceful transfer of power from one freely elected president to another.The PRD's presidential candidate, Salvador Jorge Blanco, won the 1982 elections, and the PRD gained a majority in both houses of Congress.  In an attempt to cure the ailing economy, the Jorge administration began to implement economic adjustment and recovery policies, including an austerity program in cooperation with the International Monetary Fund (IMF).  The rising costs of basic foodstuffs and public uncertainty about austerity measures led, in April 1984, to several days of the worst riots since the 1960s.Balaguer returned to the presidency with electoral victories in 1986 and 1990. Upon taking office in 1986, Balaguer tried to reactivate the economy through a public works construction program.  It rallied initially, but by 1988, slid into two of the worst economic years in recent Dominican history, characterized by slow growth, inflation, and currency devaluation. Economic difficulties, coupled with serious problems in the delivery of basic services (e.g. electricity, water, transportation), generated popular discontent that resulted in frequent protests--occasionally violent--including a paralyzing nationwide strike in June 1989.In 1990, Balaguer instituted a second set of economic reforms.  After negotiating an agreement with the IMF, balancing the budget, and curtailing inflation, the Dominican Republic is experiencing a period of economic stability.  It has been marked by low inflation, a balance-of-payments surplus, and a leap in GDP.Although the voting process itself in 1986 and 1990 was generally seen as fair, allegations of election board fraud tainted both victories. A commission of electoral advisers, designated by President Jorge and led by the Archbishop of Santo Domingo, played an important role in keeping the electoral process on track.  The elections of 1994 were again marred by charges of fraud.  Following a compromise agreement calling for constitutional and electoral reform, President Balaguer assumed office for an abbreviated term.POLITICAL CONDITIONSThe Dominican Republic has a stable, multiparty, political system with national elections every four years.  On May 16, 1994, nearly 90% of the Dominican people went to the polls in the eighth national election since the democratic process began in 1966.  At stake were the presidency, vice presidency, congressional seats, and the municipal positions--mayors and council members.  During the two years preceding the election, a new voter registration system was implemented by the Central Electoral Board (JCE), the independent body charged with administering the elections. The four leading parties in 1994 were:  the  PRSC, tied to the International Christian Democratic political movement, whose candidate was President Joaquin Balaguer; PRD, affiliated with the Socialist International, whose candidate was Jose Francisco Pena Gomez; the Dominican Liberation Party (PLD), whose candidate was former President Juan Bosch;  and the Independent Revolutionary Party (PRI), whose candidate was former President Jacobo Majluta.  Many smaller groups formed alliances with these parties.On election day, international observers noted that many voters with valid voter registration cards were prevented from voting because their names did not appear on the voter lists used at the polls. The opposition PRD immediately charged the Central Electoral Board and the PRSC with fraudulently denying the vote to PRD supporters.  A Verification Commission appointed by the Central Electoral Board confirmed that the names of voters which appeared on a registration list two weeks before the election were missing from the lists used on election day.  By all estimates, the number of disenfranchised voters far exceeded the 22,281-vote margin of victory announced in favor of President Balaguer on August 2, 1994.  Following an intense period of protest and negotiation, the competing political parties signed a "Pact for Democracy" on August 10, providing for the inauguration of President Balaguer to an abbreviated term of office, early elections, and constitutional reform.  A new Central Electoral Board was named  at the end of October to begin work on electoral reform.  GOVERNMENTThe Dominican Republic is a representative democracy whose national powers are divided among independent executive, legislative, and judicial branches.The president appoints the cabinet, executes laws passed by the legislative branch, and is commander-in-chief of the armed forces.  The president and vice president run for office on the same ticket and are elected by direct vote for four-year terms.  President Balaguer's current term is limited to two years.Legislative power is exercised by a bicameral Congress.  The Senate is composed of 30 members--one for each province and the National District of Santo Domingo.  The Chamber of Deputies has 120 members--a minimum of two from each province and/or one for each 50,000 inhabitants or fraction above 25,000. Congressional, municipal, and presidential elections are held simultaneously.The nine-member Supreme Court of Justice is appointed by the Senate.  The Court has sole jurisdiction over actions against the president and members of Congress and hears appeals from lower courts.  The "Pact for Democracy" calls for a constitutional amendment to provide the judicial branch more independence from the Senate.Each of the 29 provinces is headed by  a presidentially appointed governor.  Elected mayors and municipal councils administer the National District (Santo Domingo) and the 103 municipal districts.National SecurityThe military consists of about 24,000 active-duty personnel, commanded by the president.  Its principal mission is to defend the nation, but it serves more as an internal security force.  The army, twice as large as the other services combined, consists of four infantry brigades and a combat support brigade; the air force operates three flying squadrons; and the navy maintains 30 aging vessels. The Dominican Republic's military is second in size to Cuba's in the Caribbean.The armed forces participate fully in counternarcotics efforts.  They are also active in efforts to control contraband and illegal immigration from Haiti to the Dominican Republic and from the Dominican Republic to the United States.Principal Government OfficialsPresident--Joaquin BALAGUER RicardoForeign Minister--Carlos MORALES TroncosoAmbassador to the United States--Jose del Carmen ARIZA GomezAmbassador to the United Nations--Pedro BLANDINO EspaillatAmbassador to the OAS--Eladio KNIPPING VictoriaThe Dominican Republic maintains an embassy in the United States at 1715 22nd Street NW, Washington, DC 20008(tel. [phone]).ECONOMYThe Dominican Republic is a middle-income developing country primarily dependent on agriculture, trade, and services, especially tourism.  Although the service sector has recently overtaken agriculture as the leading employer of Dominicans, agriculture remains the most important sector in terms of domestic consumption and is in second place (behind mining) in terms of export earnings. Tourism accounts for almost $1 billion in annual earnings and, along with exports from the export-processing zones, represents the main growth area.  Remittances from Dominicans living in the United States are estimated to be about $1 million per year.Following economic turmoil in the late 1980s and early 1990, during which the GDP fell by up to 5% and consumer price inflation reached an unprecedented 100%, a series of governmental reforms have stabilized the economy.  This stabilization was marked by a 3% increase in GDP and an inflation rate of 5% in 1993.  Increased government spending in 1994 led to increased inflationary and currency pressures, but the economy appears to be under control.  End-of-year inflation is estimated at 10%-15%, and the unofficial value of the peso may drop as much as 15% for the year.  Stabilization is accredited primarily to the elimination of budget deficits that had been fueling inflation.  However, the money supply grew at a rate of 16.6% in 1993, and there is potential for higher growth and inflationary pressure if it is not centrally guided.  Large trade deficits in 1992 and 1993 also are cause for concern.  In addition, economic observers do not believe that the trend of region-wide capital inflow (stimulated by low interest rates in the United States) can be maintained in the long term.  Foreign reserves dropped sharply in the first six months of 1994.The Dominican Republic has made slow progress in resolving its foreign debt problems.  The government has about $4.6 billion in foreign debt; about 75% of this is owed to foreign governments or international financial institutions.  In November 1991, the government concluded Paris Club debt rescheduling negotiations with its foreign government creditors, but the Dominican Government did not put these agreements into effect until November 1993.  Negotiations for a commercial bank debt settlement experienced similar delays in 1993 and 1994.The outlook for the Dominican economy depends largely on two factors:  the government's ability to maintain policies conducive to continued macroeconomic stability and society's ability to adapt to the requirements of an increasingly competitive global marketplace.  Issues facing decision-makers include proposals for investment climate reform and, in general, reduction of the government's dependence on taxes on international trade to generate revenue.  Draft legislation for a financial monetary code, foreign investment law, and export promotion law all rest with the Congress.  If passed, each of these laws would rationalize the investment climate for foreign investors and lay the groundwork for NAFTA accession.  The free trade zones, where most U.S. investment is located, are still characterized by preferential business conditions.FOREIGN RELATIONSThe Dominican Republic associates closely with the United States and with the other states of the inter-American system.  It has accredited diplomatic missions in most Western Hemisphere countries and in principal European capitals.  It does not maintain diplomatic relations with Cuba, although there is contact in fields such as commerce, culture, and sports.  Dominican relations with its closest neighbor, the Republic of Haiti, have never been extensive.  The Haitian community resident in the Dominican Republic, made up mostly of illegal immigrants seeking greater economic opportunities, is estimated to include several hundred thousand people.The Dominican Republic belongs to the UN and some of its specialized and related agencies, including the World Bank, International Monetary Fund (IMF), International Labor Organization (ILO), International Atomic Energy Agency (IAEA), and International Civil Aviation Organization (ICAO); the Organization of American States (OAS); and the Inter-American Development Bank; and INTELSAT.U.S.-DOMINICAN REPUBLIC RELATIONSThe United States has excellent relations with the Dominican Republic.  U.S. policy is based on the principle of cooperation in international affairs, including appropriate support for the Dominican Republic's economic development program.  In recent years, USAID has funded projects on electrical energy restructuring and the development of microenterprises.  In addition, bilateral trade is important to both countries, and U.S. firms, mostly apparel, footwear, and light electronics manufacturers, account for nearly all foreign private investment in the Dominican Republic.  One important element of the bilateral relationship between the two countries is the Dominican community residing in the United States.  According to some estimates, 1 million Dominicans live in the United States, the majority in New York City.  The Dominican Republic supported efforts by the United States to implement UN Security Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  On August 1, 1994, the Dominican Republic signed an memorandum of understanding for a Multinational Observer Group to monitor the enforcement of the embargo along the Dominican-Haitian border.Principal U.S. OfficialsAmbassador--Donna J. HrinakDeputy Chief of Mission--Cristobal OrozcoUSAID Mission Director--Marilyn ZakConsul General--Brooke HolmesPolitical Counselor--Dennis LinskeyPublic Affairs Adviser (USIA)--Cesar BeltranCommercial Counselor (DOC/FCS)--Robert BucaloDefense Attache--Lt. Col. Bruce GridleyThe U.S. embassy is located at Calle Cesar Nicolas Penson and Calle Leopoldo Navarro, Santo Domingo (tel. [phone]).  (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  DOMINICAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Commonwealth of DominicaPROFILEGeographyArea:  754 sq. km. (290 sq. mi.).Cities:  Capital--Roseau.Terrain:  Mountainous volcanic island with rainforest cover.Climate:  Tropical.PeopleNationality:  Noun and adjective--Dominican (Dom-i-nee-can).Population (1993):  72,000.Annual growth rate:  0%.Ethnic groups:  Mainly African descent, some Carib Indians.Religions:  Roman Catholic (80%), Anglican, other Protestant denominations.Languages:  English (official); a French patois is widely spoken.Education:  Years compulsory--to age 14.  Literacy--about 80%.Health:  Infant mortality rate--17/1,000.  Life expectancy--men 71 yrs., women 74 yrs.Work force (30,600):  Agriculture--37%.  Services--30%.  Industry and commerce--20%.GovernmentType:   Parliamentary democracy; republic within Commonwealth.Independence:  November 3, 1978.Constitution:  November 1978.Branches:  Executive--president (head of state), prime minister (head of government), cabinet.  Legislative--unicameral House of Assembly.  Judicial--magistrate and jury courts, Eastern Caribbean Supreme Court (high court and court of appeals), privy council.Subdivisions:  10 parishes.Political parties:  Dominica Freedom Party (incumbent), United Workers Party (official opposition), Dominica Labor Party (opposition).Suffrage:  Universal adult.EconomyGDP (1993 est.):  $170 million.GDP growth rate (1993):  1.8%.Per capita GDP:  $2,400.Natural resources:  Timber, water (hydropower).Agriculture (26% of GDP):  Products--bananas, citrus, coconuts, cocoa, herbal oils and extracts.Industry (7% of GDP):  Types--agricultural processing, soap and other coconut-based products, apparel.Trade:  Exports--$55 million:  bananas, citrus fruits, soap, cocoa.  Major partners--European Union (EU), CARICOM, U.S.  Imports--$140 mil-lion:  machinery and equipment, foodstuffs, manufactured articles, cement.  Major partners--CARICOM, U.S., EU, Japan.Exchange rate:  Eastern Caribbean $2.70=U.S. $1.   PEOPLEAlmost all Dominicans are descendants of African slaves brought in by colonial planters in the 18th century.  Dominica is the only island in the eastern Caribbean to retain some of its pre-Columbian population--the Carib Indians--about 500 of whom live on the island's east coast.The population growth rate is very low, due primarily to emigration to more prosperous Caribbean islands, the United Kingdom, the United States, and Canada.English is the official language; however, because of historic French domination, the most widely spoken dialect is a French patois.  About 80% of the population is Catholic.  In recent years, a significant number of Protestant churches have been re-established.HISTORYThe island's indigenous Arawak people were expelled or exterminated by Caribs in the 14th century.  Columbus landed there in November 1493.  Because of prevailing winds and currents, Spanish ships frequently landed on Dominica during the 16th century, but fierce resistance by the Caribs discouraged Spain's efforts at settlement.In 1635, France claimed Dominica.  Shortly thereafter, French missionaries became the first European inhabitants of the island.  Carib incursions continued, though, and in 1660, the French and British agreed that both Dominica and St. Vincent should be abandoned.  Dominica was officially neutral for the next century, but the attraction of its resources remained; rival expeditions of British and French foresters were harvesting timber by the start of the 18th century.Largely due to Dominica's position between Martinique and Guadeloupe, France eventually became predominant, and a French settlement was established and grew.  But as part of the 1763 Treaty of Paris that ended the Seven Years' War being fought in Europe, North America, and India, the island became a British possession.  In 1778, during the American Revolutionary War, the French mounted a successful invasion with the active cooperation of the population, which was largely French.  The 1783 Treaty of Paris, which ended the war, returned the island to Britain.  French invasions in 1795 and 1805 ended in failure.In 1763, the British established a Legislative Assembly, representing only the white population.  In 1831, reflecting a liberalization of official British racial attitudes, the "Brown Privilege Bill" conferred political and social rights on nonwhites.  Three blacks were elected to the Legislative Assembly the following year, and by 1838, recently enfranchised blacks dominated that body.  Most black legislators were smallholders or merchants who held economic and social views diametrically opposed to the interests of the small, wealthy English planter class.  Reacting to a perceived threat, the planters lobbied for more direct British rule.In 1865, after much agitation and tension, the colonial office replaced the elective assembly with one comprised of one-half elected members and one-half appointed.  The elected legislators were outmaneuvered on numerous occasions by planters allied with colonial administrators.  In 1871, Dominica became a federal colony attached to the Leeward Island Federation.  The power of the black population progressively eroded until, after severe colonial office pressure, crown colony government was forced upon the assembly in 1896.  All political rights for the vast majority of the population were effectively curtailed.  Development aid, offered as compensation for disenfranchisement, proved to have a negligible effect.Following World War I, an upsurge of political consciousness throughout the Caribbean led to the formation of the Representative Government Association.  Marshaling public frustration with the lack of a voice in the governing of Dominica, this group won one-third of the popularly elected seats of the Legislative Assembly in 1924 and one-half in 1936.  Shortly thereafter, Dominica was transferred from Leeward Island administration and was governed as part of the Windwards until 1958, when it joined the short-lived Federation of the West Indies.After the federation dissolved, Dominica became an associated state of the United Kingdom in 1967 and formally took responsibility for its internal affairs.  On November 3, 1978, the Commonwealth of Dominica was granted independence by the United Kingdom.  Independence alone did not solve problems stemming from centuries of economic underdevelopment, though.  In mid-1979, political discontent led to the formation of an interim government; it was replaced after 1980 elections by the Dominica Freedom Party under Prime Minister Mary Eugenia Charles, the Caribbean's first female prime minister.  There also were chronic economic problems, which were compounded by the severe impact of hurricanes in 1979 and in 1980.  By the end of the 1980s, the economy had made a healthy recovery, but it has weakened recently due to a decrease in banana prices.GOVERNMENTDominica has a Westminster-style parliamentary government, and there are three political parties--the Dominica Freedom Party (the majority party), the Dominica Labor Party, and the United Workers Party.  A president and prime minister make up the executive branch.  Nominated by the prime minister in consultation with the leader of the opposition party, the president is elected for a five-year term by the parliament.  The president appoints as prime minister the leader of the majority party in the parliament and also appoints, on the prime minister's recommendation, members of the parliament from the ruling party as cabinet ministers.  The prime minister and cabinet are responsible to the parliament and can be removed on a no-confidence vote.The unicameral parliament, called the House of Assembly, is composed of 21 regional representatives and nine senators.  The regional representatives are elected by universal suffrage and, in turn, decide whether senators are to be elected or appointed.  If appointed, five are chosen by the president with the advice of the prime minister and four with the advice of the opposition leader.  If elected, it is by vote of the regional representatives.  Elections for representatives and senators must be held at least every five years, although the prime minister can call elections any time.  Next elections are due by September 1995 but are expected to be called for May 1995.Dominica's legal system is based on English common law.  There are three magistrate's courts, with appeals made to the West Indies Court of Appeal and, ultimately, to the Privy Council in London.Councils elected by universal suffrage govern most towns.  Supported largely by property taxation, they are responsible for the regulation of markets and sanitation and the maintenance of secondary roads and other municipal amenities.  The island is also divided into 10 parishes, whose governance is unrelated to the town governments.Principal Government OfficialsPresident--Crispin SorhaindoPrime Minister--Mary Eugenia CharlesMinister of External Affairs and Organization of Eastern Caribbean States Unity--Brian AlleyneAmbassador to the United States--Edward I. Watty (resident in Dominica)Ambassador to the United Nations--Frank BarronAlthough the Dominican ambassador to the United States is resident in Dominica, the country maintains an embassy in the U.S. at 3216 New Mexico Ave., NW, Washington, DC 20016 (tel. [phone]).ECONOMYHurricane damage in 1989 slowed Dominica's economy, but during 1990-91, the economy regained some ground.  It grew rapidly in 1990 as a result of higher banana prices and increased construction and tourism activity, then slowed again in 1991.  The government reported moderate GDP growth in 1993 (1.8%), but the economy is struggling.Agriculture--with bananas and coconuts as principal crops--is still the economic mainstay, accounting for 26% of GDP.  During 1993 and 1994, banana prices fell significantly.  This sector is highly vulnerable to weather conditions and to external events affecting commodity prices.  More than 60% of foreign exchange earnings are from banana exports to the United Kingdom; possible loss of this protected market under the establishment of a single European market--which had been planned for 1992--posed a serious threat to Dominica's economy.  Agricultural diversification is a priority, and Dominica has made some progress toward it, with the export of small quantities of citrus fruits and vegetables and the introduction of coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mangoes, guavas, and papayas.Manufacturing accounts for 7% of GDP.  Soap is the island's second most important export after agricultural products.  Other manufactured products--mostly for export--include garments, animal feed, bottled water, gloves, furniture, and food products.  To attract export-oriented industry, the government has constructed factories for lease to investors.  The country has recruited a number of foreign investors in light industry and food processing.  To encourage the private sector, the government reduced its deficit and cut taxes under an International Monetary Fund (IMF) program.  The U.S. Agency for International Development (USAID) provided more than $4 million for the program and also helped fund technical assistance in infrastructure development.Development of tourism has been slow compared with that on neighboring islands because Dominica is mostly volcanic and has few beaches.  But with high, rugged mountains covered by unexploited rainforests, freshwater lakes, hot springs, waterfalls, and diving spots, Dominica's unique landscape is beginning to attract tourists.  Although still a small part of Dominica's economy, tourism is a growing source of foreign currency.Dominica is a member of the Eastern Caribbean Central Bank, which issues a common currency.  It is a beneficiary of the U.S. Caribbean Basin Initiative (CBI) and is a member of the 13-member Caribbean Community and Common Market (CARICOM), which has signed a framework agreement with the United States to promote trade and investment in the region.FOREIGN RELATIONSLike its Eastern Caribbean neighbors, the main priority of Dominica's foreign relations is economic development.  The country maintains representatives in Brussels, London, and New York and is represented jointly with other Organization of Eastern Caribbean States (OECS) members in Canada.  It is also a member of the Caribbean Development Bank (CDB), the Caribbean Community, and the British Commonwealth.  It became a member of the United Nations and the IMF in 1978 and of the World Bank and Organization of American States (OAS) in 1979.As a member of CARICOM, Dominica strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.U.S.-DOMINICAN RELATIONSThe United States and Dominica have excellent bilateral relations.  The United States supports the Dominican Government's efforts to expand its economic base and provide a higher standard of living for its citizens.  American assistance has come through multilateral agencies such as the CDB and the Caribbean Agricultural Research and Development Institute.  In addition, USAID programs have provided considerable direct assistance in agricultural development, rural electrification, economic structural adjustment, and construction of schools, water projects, and health facilities, although most of this funding will be ended by FY 1996.Dominica's economy benefits from access to U.S. markets through the CBI, although manufacturing accounts for a very small percent of GDP.  A box factory built under the section 936 program with Puerto Rico is one result of Dominica's participation in the CBI.The Peace Corps has about 20 volunteers in Dominica, working primarily in education, agriculture, and health.Principal U.S. Embassy OfficialsAmbassador--Jeanette W. HydeDeputy Chief of Mission--Tain P. TompkinsPolitical/Economic Counselor--Thomas R. HutsonConsul General--Dale ShafferRegional Labor Attache--Peggy ZabriskieEconomic-Commercial Officer--Carole JacksonPublic Affairs Officer--Tyrone KempUSAID Regional Director--Mosina JordanPeace Corps Director--James Scanlon (resident in St. Lucia)The United States maintains no official presence in Dominica.  The ambassador and embassy officers are resident in Barbados and frequently travel to Dominica.The U.S. embassy in Barbados is located in the Canadian Imperial Bank of Commerce Building, Broad Street, Bridgetown (tel:  [phone]; fax:  [phone]).   (###)</text>
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        <text>BACKGROUND NOTES:  DJIBOUTIPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEDECEMBER 1993Official Name:  Republic of DjiboutiPROFILEGeographyArea:  23,200 sq. km. (9,000 sq mi.); about the size of NewHampshire.Cities:  Capital--Djibouti.  Other cities--Dikhil, Ali-Sabieh, Obock,Tadjoura.Terrain:  Coastal desert.Climate:  Torrid and dry.PeopleNationality:  Noun and adjective--Djiboutian(s).Population (est.): 520,000.Annual growth rate:  6%.Ethnic groups:  Somalis (Issaks, Issas, and Gadaboursis), Ethiopian(Issas and Afars), Arab, French, and Italian.Religions:  Muslim 94%, Christian 6%.Languages:  French and Arabic (official); Somali and Afar widelyused.Education:  Literacy--20%.Health:  Infant mortality rate--204/1,000.  Life expectancy--48 yrs.Work force:  Small number of semi-skilled laborers at port, 3,000railway workers organized.  The majority of the population is notformally employed.GovernmentType:  Republic.Constitution:  Ratified September 1992 by referendum.Independence:  June 27, 1977.Branches:  Executive--president.  Legislative--65-memberparliament, cabinet, prime minister.  Judicial--based on French civillaw system, traditional practices, and Islamic law.Administrative subdivisions:  5 cercles (districts)--Ali-Sabieh,Dikhil, Djibouti, Obock, and Tadjoura.Political parties:  Peoples Progress Assembly (RPP) established in1981; New Democratic Party (PRD) and the National DemocraticParty (PND) were both established in 1992.Suffrage:  Universal at 18.National holiday:  June 27.Flag:  A white triangle, with a five-pointed red star within,extending on the staff side.  The remaining area has a light blue zoneabove a light green zone.EconomyGNP (1992 est.):  $260 million.Adjusted per capita income:  $500 per capita, $250 for Djiboutians.Natural resources:  Minerals (salt, gypsum, limestone) and energyresources (geothermal and solar).Agriculture:  (Less than 3% of GDP)  Products--livestock, fishing,and limited commercial crops, including fruits and vegetables.Industry:  Types--banking and insurance (40% of GDP), publicadministration (34% of GDP), construction and public works,manufacturing, commerce, and agriculture.Trade (1992  est.):  Imports (excluding special transactions)--$209million (an estimated 80% of GDP).  Exports--$23 million; consistsof hides and skins, transit of coffee, container port activity.  Majormarkets--France, Ethiopia, Arabian peninsula countries.Official exchange rate:  Fixed at 177 Djibouti francs=U.S.$1 since1977.PEOPLEMore than half of the Republic of Djibouti's 520,000 inhabitants livein the capital city.  The indigenous population is divided between themajority Somalis (predominantly of the Issa tribe, with minorityIssak and Gadaboursi representation) and the Afars (Danakils).  Allare Cushitic-speaking peoples, and nearly all are Muslim.  Among the15,000 foreigners residing in Djibouti, the French are the mostnumerous.HISTORYThe Republic of Djibouti gained its independence on June 27, 1977.It is the successor to the French Territory of the Afars and Issas,which was created in the first half of the 19th century as a resultof French interest in the Horn of Africa.However, the history of Djibouti, recorded in poetry and songs of itsnomadic peoples, goes back thousands of years to a time whenDjiboutians traded hides and skins for the perfumes and spices ofancient Egypt, India, and China.  Through close contacts with theArabian peninsula for more than 1,000 years, the Somali and Afartribes in this region became the first on the African continent toadopt Islam.It was Rochet d'Hericourt's exploration into Shoa (1839-42) thatmarked the beginning of French interest in the African shores of theRed Sea.  Further exploration by Henri Lambert, French ConsularAgent at Aden, and Captain Fleuriot de Langle led to a treaty offriendship and assistance between France and the sultans of Raheita,Tadjoura, and Gobaad, from whom the French purchased theanchorage of Obock (1862).Growing French interest in the area took place against a backdrop ofBritish activity in Egypt and the opening of the Suez Canal in 1869.In 1884-85, France expanded its protectorate to include the shoresof the Gulf of Tadjoura and the hinterland, designating the areaFrench Somaliland. Boundaries of the protectorate, marked out in1897 by France and Emperor Menelik II of Ethiopia, were affirmedfurther by agreements with Ethiopian Emperor Haile Selassie I in1945 and 1954.The administrative capital was moved from Obock to Djibouti in1896.  Djibouti, which has a good natural harbor and ready access tothe Ethiopian highlands, attracted trade caravans crossing EastAfrica as well as Somali settlers from the south. The Franco-Ethiopian railway, linking Djibouti to the heart of Ethiopia, wasbegun in 1897 and reached Addis Ababa in June 1917, furtherfacilitating the increase of trade.During the Italian invasion and occupation of Ethiopia in the 1930sand during World War II, constant border skirmishes occurredbetween French and Italian forces.  The area was ruled by the Vichy(French) government from the fall of France until December 1942,when French Somaliland forces broke a Vichy blockade to join theFree French and the Allied forces.  A local battalion from Djiboutiparticipated in the liberation of France in 1944.On July 22, 1957, the colony was reorganized to give the peopleconsiderable self-government.  On the same day, a decree applyingthe Overseas Reform Act (Loi Cadre) of June 23, 1956, established aterritorial assembly that elected eight of its members to anexecutive council.  Members of the executive council wereresponsible for one or more of the territorial services and carriedthe title of minister.  The council advised the French-appointedgovernor general.In a September 1958 constitutional referendum, French Somalilandopted to join the French community as an overseas territory.  Thisact entitled the region to representation by one deputy and onesenator in the French Parliament, and one counselor in the FrenchUnion Assembly.  Upon the demise of the assembly, the territory wasassigned a seat on the UN Economic and Social Council.The first elections to the territorial assembly were held onNovember 23, 1958, under a system of proportional representation.In the next assembly elections (1963), a new electoral law wasenacted by the French national assembly. Proportionalrepresentation was abolished in exchange for a system of straightplurality vote based on lists submitted by political parties in sevendesignated districts.  Ali-Sabieh Aref Bourhan, an Afar, wasselected to be the president of the executive council.French President Charles de Gaulle's August 1966 visit to Djiboutiwas marked by 2 days of public demonstrations by Somalisdemanding independence.  On September 21, 1966, Louis Saget,appointed governor general of the territory after thedemonstrations, announced the French Government's decision to holda referendum to determine whether the people would remain withinthe French Republic or become independent.  In March 1967, 60%chose to continue the territory's association with France.In July of that year, a directive from Paris formally changed thename of the region to the French Territory of Afars and Issas.  Thedirective also reorganized the governmental structure of theterritory, making the senior French representative, formerly thegovernor general, a high commissioner.  In addition, the executivecouncil was redesignated as the council of government, with ninemembers.In 1975, the French Government began to accommodate increasinglyinsistent demands for independence.  In June 1976, the territory'scitizenship law, which favored the Afar minority, was revised toreflect more closely the weight of the Issa Somali.  The electoratevoted for independence in a May 1977 referendum, and the Republicof Djibouti was established on June 27, 1977.GOVERNMENTIn 1981, Hassen Gouled Aptidon was elected as President of Djibouti.He was re-elected, unopposed, to a second 6-year term in April 1987and to a third 6-year term in May 1993 multiparty elections.  Theelectorate approved the current constitution in September 1992.Many laws and decrees from before independence remain in effect.In early 1992, the government decided to permit multiple partypolitics and agreed to the registration of four political parties.  Bythe time of the national assembly elections in December 1992, onlythree had qualified.  They are the Rassemblement Populaire Pour leProgres (RPP) which was the only legal party from 1981 until 1992,the Parti du Renouveau Democratique (PRD), and the Parti NationalDemocratique (PND). Only the RPP and the PRD contested the nationalassembly elections, and the PND withdrew, claiming that there weretoo many unanswered questions on the conduct of the elections andtoo many opportunities for government fraud.  The RPP won all 65seats in the national assembly, with a turnout of less than 50% ofthe electorate.Political power is shared by a Somali president and an Afar primeminister, with cabinet posts roughly divided.  However, it is theIssas who presently dominate the government, civil service, and theruling party, a situation that has bred resentment and politicalcompetition between the Somali Issas and the Afars.In early November 1991, civil war erupted in Djibouti betweenDjibouti's major tribes.  The conflict may force the government todemocratize at a rate faster than was originally planned.Djibouti has its own armed forces, including a small army, whichhas grown significantly since the start of the civil war. Thecountry's security also is assured by the continued presence of some4,000 French troops, which includes a unit of the French ForeignLegion.The right to own property is respected in Djibouti, as are freedom ofreligion and organized labor; the government has established anational union under its control.Although women in Djibouti enjoy a higher public status than inmany other Islamic countries, women's rights and family planningare not high priorities.  Few women hold senior positions.  However,a women's organization (Union Nationale des Femmes de Djibouti) isactive.Principal Government OfficialsPresident--Hassan Gouled AptidonPrime Minister, in charge of Regional and National Development--Barkat Gourad HamadouForeign Affairs and Cooperation--Abdov Bolock AbdovAmbassador to the United Nations and the United States--RoblehOlhaye OudineDjibouti's mission to the UN is located at 866 UN Plaza, Suite 4011,New York, NY 10017.  Djibouti's embassy in Washington is located atSuite 515, 1156 15th Street, NW, Washington, DC 20005 (tel. [phone]).ECONOMYDjibouti's fledgling economy depends on a large foreign expatriatecommunity, the maritime and commercial activities of the Port ofDjibouti, its airport, and the operation of the Addis Ababa-Djiboutirailroad.  Since the advent of civil war in November 1991, there hasbeen a diversion of government budgetary resources fromdevelopmental and social services to military needs.  Agricultureand industry are little developed, in part due to the harsh climate,high production costs, unskilled labor, and limited natural resources.Only a few mineral deposits exist in the country, and the arid soil isunproductive--89% is desert wasteland, 10% is pasture, and 1% isforested.  Services and commerce provide most of the grossdomestic product.Djibouti's most important economic asset is its strategic locationon the shipping routes between the Mediterranean Sea and the IndianOcean--the republic lies on the west side of the Bab-el-Mandeb,which connects the Red Sea and the Gulf of Aden.  Its port remainsan important container shipment and transshipment point on theshipping lanes transiting the Red Sea and the Suez Canal.  It alsofunctions as a bunkering port and a small French naval facility.  Thedecision by the Saudi Arabian Government to improve its own portfacilities in Jeddah and Ethiopia's decision to promote its port atAssab recently have decreased the volume of economic activity forthe Port of Djibouti.The Addis Ababa-Djibouti railroad is the only line serving centraland southeastern Ethiopia.  The single-track railway--a primesource of employment--occupies a prominent place in Ethiopia'sinternal distribution system for domestic commodities such ascement, cotton textiles, sugar, cereals, and charcoal.Principal exports from the region transiting Djibouti are coffee,salt, hides, dried beans, cereals, other agricultural products, wax,and salt.  Djibouti itself has few exports, and the majority of itsimports come from France.  Most imports are consumed in Djibouti,and the remainder goes to Ethiopia and northern Somalia.  Djibouti'sunfavorable balance of trade is offset partially by invisible earningssuch as transit taxes and harbor dues.The city of Djibouti has the only paved airport in the republic.Djibouti has one of the most liberal economic regimes in Africa,with almost unrestricted banking and commerce sectors.FOREIGN RELATIONSMilitary and economic agreements with France provide continuedsecurity and economic assistance.  Links with Arab states are alsowelcome.Because Djibouti is greatly affected by events that occur in Somaliaand Ethiopia, and vice versa, relations are delicate.  With the fall ofthe Siad Barre and Mengistu Governments in Somalia and Ethiopia in1991, Djibouti found itself faced with national security threats dueto neighboring instability and a massive influx of refugees.  In 1991,Djibouti hoped to play a key role in the transition process towardpeace in Somalia by hosting the Somali National ReconciliationConference, and the republic's role in assisting Ethiopia'sredevelopment will likely increase in the near future.  As a result ofsuch regional conflicts, ties to other states and organizations moreremoved from tensions of the Horn of Africa are particularly valued.U.S.-DJIBOUTIAN RELATIONSIn April 1977, the United States established a consulate general inDjibouti and at independence several months later raised its statusto embassy.  The first U.S. Ambassador to the Republic of Djiboutiarrived in October 1980.  The United States provides about $4million in economic support funds and $1 million in non-lethalmilitary aid annually.Djibouti has permitted the U.S. Navy access to its sea- and airports.The importance of that access to the U.S. has grown, with anincreased U.S. naval presence in the Indian Ocean.  The DjiboutianGovernment has generally been supportive of U.S. and Westerninterests, as was demonstrated during the Gulf crisis of 1990-1991.Principal U.S. OfficialsAmbassador--Martin L. CheshesDeputy Chief of Mission--Joseph GregoirePolitical and Commercial Officer--Bruce D. TefftPolitical and Economic Officer--Michelle EnglishAdministrative and Consular Officer--Grace C. StettenbauerThe U.S. embassy in Djibouti is located at Villa Plateau du Serpent,Blvd. Marechal Joffre (Boite Postal 185), Djibouti (tel. 35-39-95;fax 35-39-40).TRAVEL NOTESCustoms:  Visas must be obtained, prior to arrival, from either aDjiboutian or a French embassy.  U.S. currency can be exchanged inDjibouti.Health:  Djibouti is free of many of Africa's diseases. Malaria,however, is prevalent.  Infected wounds are difficult to cure.  Ayellow fever immunization is required for entry, and malariasuppressants are recommended.Be careful of food and drink.  Drink boiled water or bottled mineralwater, available in all local hotels and restaurants.Djibouti has few doctors, and the one civilian hospital has less thanadequate facilities.Transportation:  Local taxis in Djibouti City are plentiful. Most roadsin the republic are merely tracks, often passable only with four-wheel drive.  Excellent roads link Djibouti City with the northernprovincial capital of Tadjoura and with the Assab-Addis AbabaHighway in Ethiopia, but are closed to public traffic.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of Public Communication -- Washington, DC20520 -- December 1993 -- Editor:  Anita StockmanDepartment of State Publication 8429 -- Background Notes SeriesContents of this publication are not copyrighted unless indicated.  Ifnot copyrighted, the material may be reproduced without consent;citation of the publication as the source is appreciated.  Permissionto reproduce any copyrighted material (including photos andgraphics) must be obtained from the original source.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  DENMARKOFFICIAL NAME:  KINGDOM OF DENMARKPROFILEGeography*Area: 43,076 sq. km. (16,632 sq. mi.); slightly smaller than Vermontand New Hampshire combined. Cities: Capital-Copenhagen (pop. 1.4million in Greater Copenhagen). Other cities-Aarhus (195,000),Odense (137,000), Aalborg (114,000). Terrain: Low and flat or slightlyrolling; highest elevation is 173 m. (568 ft.). Climate: Temperate. Theterrain, location, and prevailing westerly winds make the weatherchangeable.PeopleNationality: Noun-Dane(s). Adjective-Danish. Population (1988): 5.13million.* Annual growth rate (1987): 0.8%. Density: 119 per sq. km.(308/sq. mi.). Ethnic groups: Scandinavian, Eskimo, Faroese,German. Religion: Evangelical Lutheran  (about 97%). Languages:Danish, Faroese, Greenlandic (an Eskimo dialect), some German.English is the predominant second language. Education: Yearscompulsory-9. Attendance-100%. Literacy-99%. Health: Infantmortality rate (within first year, 1986)-8.2/1,000. Life expectancy-men71.5 yrs., women 77.5 yrs. Work force (1987): 2.8 million: Agricultureand fisheries-5.6%. Industry and commerce-50.5%. Services-11.6%.Government-29.8%. Other-2.5%.GovernmentType: Constitutional monarchy. Constitution: June 5, 1953.Branches: Executive-queen (chief of state), prime minister (head ofgovernment), cabinet. Legislative-unicameral parliament (Folketing).Judicial-appointed Supreme Court.Political parties (represented in the Folketing): Social Democratic,Conservative, Liberal, Progress, Socialist People's, Radical Liberal,Center Democratic, Christian People's. Suffrage: Universal adult.Administrative subdivisions: 14 counties.Defense (1989): Approximately 2% of GDP.Flag: A white cross on a red field. The Faroe Islands and Greenlandmaintain separate flags under their respective home-rulegovernments.EconomyGDP (1989): $104.6 billion. Annual growth rate (1989): 1.1%. Percapita income: $20,385. Avg. inflation rate last 5 yrs.: 4.4%.Agriculture (and related production, 5.8% of GDP): Products-meat,dairy products, fish.Industry (19.3% of GDP): Types-industrial and constructionequipment, electronics, chemicals, pharmaceuticals, furniture, textiles.Natural resources: North Sea-oil and gas, fish. Greenland-fish, zinc,lead, iron ore, coal, molybdenum, cryolite, uranium. The FaroeIslands-fish.Trade (1989): Exports-$28 billion: machinery and instruments (24%),meat and meat products (10%), chemical, medical andpharmaceutical products (10%), fish and fish products  (6%),transport equipment (including ships) (5%), textiles and apparel (4%),and furniture (4%).  Imports- $26.6 billion: machinery (10%), iron,steel, and metals (10%),transport equipment (excluding ships) (7%),crude oils and petroleum products  (5%), paper and paperboard(4%), and fish and fish products  (3%).  Partners- FRG 20%, Sweden12%, UK 10%, US 6%, Eastern bloc 3%.Official exchange rate (April 1990): 6.44 kroner=US$ (1989 average7.31 kroner=US$1 used for conversion of statistics).Membership in International OrganizationsUN and many of its specialized and related agencies, including theWorld Bank, International Monetary Fund (IMF); General Agreementon Tariffs and Trade (GATT); NATO; European Community (EC);Organization for Economic Cooperation and Development (OECD);Council of Europe; Nordic Council.*Excluding Greenland and the Faroe Islands.PEOPLE AND HISTORYThe Danes, a homogenous Gothic-Germanic people, have inhabitedDenmark since prehistoric times. Danish is the principal language. Asmall German-speaking minority lives in southern Jutland; a mixedInuit-Danish population inhabits Greenland; and the Faroe Islandshave a Nordic population with its own language. Education iscompulsory from ages 7 to 16 and is free through the universitylevel.The Evangelical Lutheran Church is state supported and accountsfor about 97% of Denmark's religious affiliation. Denmark hasreligious freedom, however, and several other Protestantdenominations and other religions exist.During the Viking period (9th-11th centuries), Denmark was a greatpower based on the Jutland Peninsula, the Island of Zealand, andthe southern part of what is now Sweden. In the early 11th century,King Canute united Denmark and England for almost 30 years.Viking raids brought Denmark into contact with Christianity, and inthe 12th century, crown and church influence increased. By the late13th century, royal power had waned, and the nobility forced theking to grant a charter, considered Denmark's first constitution.Although the struggle between crown and nobility continued into the14th century, Queen Margrethe I succeeded in uniting Denmark,Norway, Sweden, Finland, the Faroe Islands, Iceland, and Greenlandunder the Danish crown. Sweden and Finland left the union in 1520;however, Norway remained until 1814. Iceland, in a "personal union"under the king of Denmark after 1918, became independent in 1944.The Reformation was introduced in Denmark in 1536. Denmark'sprovinces in today's southwestern Sweden were lost in 1658, andNorway was transferred from the Danish to the Swedish crown in1814, following the defeat of Napoleon, with whom Denmark wasallied.The Danish liberal movement gained momentum in the 1830s, andin 1849 Denmark became a constitutional monarchy. After the warwith Prussia and Austria in 1864, Denmark was forced to cedeSchleswig-Holstein to Prussia and adopt a policy of neutrality.Toward the end of the 19th century, Denmark inaugurated importantsocial and labor market reforms, laying the basis for the presentwelfare state.Denmark remained neutral during World War I.  Despite itsdeclaration of neutrality at the beginning of World War II, it wasinvaded by the Germans in 1940 and occupied until it was liberatedby the Allied forces in May 1945. Denmark became a chartermember of the United Nations and was one of the original signers ofthe North Atlantic Treaty.Cultural AchievementsDenmark's rich intellectual heritage contributes to the culturalachievements of the modern world. The astronomical discoveries ofTycho Brahe (1546-1601) and the brilliant contributions to atomicphysics of Niels Bohr (1885-1962) indicate the range of Danishscientific achievement. The fairy tales of Hans Christian Andersen(1805-75), the philosophical essays of Soren Kierkegaard (1813-55),and the short stories of Karen Blixen (penname Isak Dinesen,1885-1962) have earned international recognition, as have thesymphonies of Carl Nielsen (1865-1931). Danish applied art andindustrial design have won awards for excellence. The name ofGeorg Jensen (1866-1935) is known worldwide for outstandingmodern design in silver, and "Royal Copenhagen" is among the finestporcelains.Visitors to Denmark will discover a wealth of cultural activity. TheRoyal Danish Ballet, an exceptional company, specializes in the workof the great Danish choreographer August Bournonville (1805-79).Danes have distinguished themselves as jazz musicians, and theCopenhagen Jazz Festival has acquired an international reputation.International collections of modern art enjoy unusually attractivesettings at the Louisiana Museum north of Copenhagen and at theNorth Jutland Art Museum in Aalborg. The State Museum of Art andthe Glyptotek, both in Copenhagen, contain treasures of Danish andinternational art. The Museum of Applied Art and Industrial Design inCopenhagen exhibits the best in Danish design. The Royal DanishPorcelain Factory and Bing & Grondahl, renowned for the quality oftheir porcelain and ceramics, export their products worldwide.Ceramic designs by Bjorn Wiinblad also are well known and popular.Among today's Danish writers, probably the most prolific is KlausRifbjerg-poet, novelist, playwright, and screenwriter. Benny Andersenwrites poems, short stories, and music. Poems by both writers havebeen translated into English by the Curbstone Press. KirstenThorup's Baby, winner of the 1980 Pegasus Prize, is printed inEnglish by the University of Louisiana Press. The psychologicalthrillers of Anders Bodelsen also appear in English. Suzanne Broggerand Vita Andersen focus largely on the changing roles of women insociety. In music, Hans Abrahamsen and Per Norgaard are the twomost famous living composers. Hans Abrahamsen's works havebeen performed by the National Symphony Orchestra in Washington,DC.Cultural PolicyThe Ministry of Cultural Affairs was created in 1961. Cultural life andmeaningful leisure time were then and  remain subjects of debate bypoliticians and parliament as well as the general public. Thedemocratization of cultural life promoted by the government's 1960scultural policy recently has come to terms with the older "genteelculture;" broader concepts of culture now generally accepted includeamateur and professional cultural, media, sports, and leisure-timeactivities.Denmark's cultural policy is characterized by decentralized funding,program responsibility, and institutions.  Danish cultural directiondiffers from other countries with a Ministry of Culture and a statedpolicy in that special laws govern each cultural field-e.g., the NewTheater Act of 1970 and the Music Law of 1976.The Ministry of Cultural Affairs includes among its responsibilitiesinternational cultural relations;  training of librarians and architects;copyright legislation; and subsidies to archives, libraries, museums,literature, music, arts and crafts, theater, and film production. During1970-82, the ministry also recognized protest movements and streetmanifestations as cultural events, because social change was viewedas an important goal of Danish cultural policy. However, the currentgovernment exercises caution in moderating this policy and practice.In June 1988, radio and broadcasting, formerly under the Ministry ofCulture, was transferred to the Ministry of Transportation andCommunication.Government contributions to culture have increased steadily in recentyears, but viewed against the present government's firm objective tolimit public expenditures, contributions will stabilize in the future.Municipal and county governments assume a relatively large shareof the costs for cultural activities in their respective districts. In 1987,government expenditures for culture reached about $265 million, orabout $52 per capita. Most support went to libraries and archives,theater, museums, arts and crafts training, and films.GOVERNMENTDenmark is a constitutional monarchy. Queen Margrethe II haslargely ceremonial functions; probably her most significant formalpower lies in her right to appoint the prime minister and cabinetministers, who are responsible for administration of the government.However, she must consult with parliamentary leaders to determinethe public's will, since the cabinet may be dismissed by a vote of noconfidence in the Folketing (parliament). Cabinet members areoccasionally recruited from outside the Folketing.The 1953 constitution established a unicameral Folketing of not morethan 179 members, of whom 2 are elected from the Faroe Islandsand 2 from Greenland. Elections are held at least every 4 years, butthe prime minister can dissolve the Folketing at any time and call fornew elections. Folketing members are elected by a complicatedsystem of proportional representation; any party receiving at least 2%of the total national vote receives representation. The result is amultiplicity of parties (eight currently in parliament), none of whichholds a majority. More than 85% of electorate participation is normal.The judicial branch consists of about 100 local courts, 2 high courts,several special courts (e.g., arbitration and maritime), and a supremecourt of 15 judges appointed by the crown on the government'srecommendation.Denmark is divided into 14 counties (Amter) and 272 municipalities(Kommuner). The chief official of the Amt, the county mayor(Amtsborgmester), is elected by the county council from among itsmembers, according to the municipal reform of 1970. The city ofCopenhagen represents a single Kommune.The Faroe Islands and Greenland enjoy home rule, with the DanishGovernment represented locally by high commissioners. Thesehome-rule governments are responsible for most domestic affairswith foreign relations, monetary affairs, and defense falling to theDanish Government.Principal Government OfficialsMonarch-Queen Margrethe IIPrime Minister-Poul SchlueterMinistersFinance-Henning DyremoseForeign Affairs-Uffe Ellemann-JensenEconomic Affairs-Niels Helveg PetersenInternal Revenue-Anders Fogh RasmussenMinistry of Transportation and Communication-Knud OostergaardIndustry-Anne Birgitte LundholtLabor-Knud E. KirkegaardInterior/Nordic Affairs-Thor PedersenSocial Affairs-Aase OlesenAgriculture-Laurits ToernaesFisheries-Kent KirkJustice-Hans EngellDefense-Knud EnggaardCultural Affairs-Ole Vig JensenEnvironmental Affairs-Lone DybkjaerHousing-Agnete LaustenEnergy-Jens Bilgrav NielsenEducation-Bertel HaarderAmbassador to the United States-Peter DyvigAmbassador to the United Nations-Kjeld Wilhelm MortensenDenmark maintains an embassy at 3200 Whitehaven Street NW,Washington, DC 20008 (tel. [phone]).  Consulates general arein Chicago, Los Angeles, and New York.POLITICAL CONDITIONSPolitical life in Denmark is orderly and democratic. Political changesoccur gradually, through a process of consensus, and politicalmethods and attitudes are generally moderate.The Social Democratic Party, Denmark's largest and closely identifiedwith a large well-organized labor movement, has held power eitheralone or in coalition for most of the postwar period. A coalition of theSocial Democratic and three other centrist parties broke down in thefall of 1981 because of the parties' inability to decide on an economicprogram. Despite electoral losses, the Social Democrats formed asingle-party minority government after December 1981 elections.Unable to pass austerity measures aimed at alleviating the seriouslydeteriorating economy, the government chose to resign inSeptember 1982. Its successor was composed of four center-rightparties-Conservative, Liberal, Center Democratic, and ChristianPeople's-that controlled only 78 of the 179 seats in the Folketing.This coalition of parties retained power in the January 1984 andSeptember 1987 elections.Snap elections called in May 1988 brought a nonsocialist minoritycoalition government to power. The current government is composedof three parties: Conservative, Liberal, and Radical Liberal. Thiscoalition represents a minority of 67 seats in the 179-seat parliament,but it can count on support on most issues from the CenterDemocratic, Christian People's, and the Progress Parties, which havea total of 29 seats, plus three North Atlantic members.The successive minority governments under the current primeminister have been successful in passing their economic programsthrough the Folketing. However, with 55 seats, the Social Democratsplay a powerful braking role on both the domestic and internationalagendas of the Schlueter government. The coalition remainsdependent on whether the prime minister's rivals wish to mount achallenge or remain content to wait for the next elections, due in1992.ECONOMYFor several decades, the Danish economy has been characterizedby industrial expansion and diversification as well as a continueddependence on foreign trade, which accounts for more than 50% ofgross domestic product.  Agricultural products dominated exportearnings until the 1930s, accounting for almost 75% of total exports.Since then , however, agricultural exports have declined. In thepostwar period, manufacturing, assisted by Marshall Plan funds(totaling about $250 million in current dollars), significantly improvedits export performance. Today, more than 60% of exports stem frommanufactured products, and the agricultural share has dropped toless than 30%.During the 1962-72 period, GDP increased at an average annual rateof 4.5%, but the oil shocks of 1973 and 1979 reduced averageannual growth to 2% in 1972-82.  Assisted by the improvedinternational economic situation, the growth rate picked up againafter 1982, and the average rate for 1982-86 was 3.5%.  This stronggrowth ended in 1987.  Since then, slowed growth was due to adecrease in private consumption accompanying the introduction in1986 of fiscal restraint measures and of waning business confidence.As a result, business investment dropped 9% in 1987 and anotherpercent in 1988.  The economy saw a recovery in 1989 when theGDP rose 1%, led entirely by increased exports.  Projections for 1990point toward an almost 2% increase in GDP assisted by a continuedstrong export performance, a recovery in business investment, anda small increase in private consumption.Despite the recovery in the economy, major economic and structuralproblems remain to be solved, particularly with respect to its hightaxes, the lack of geographic and sectoral labor market mobility, andthe huge foreign debt.BudgetFrom the end of the Second World War to 1973, central governmentbudgets showed surpluses. From 1974, however, the budgetdropped deeply into deficit, reaching a level of more than 10% ofGDP in 1983. The center-right government that took office in late1982 managed to balance the budget in 1986 and actually createda surplus in 1987. However, budget deficits now approach 3% ofGDP.Prices, Interest, and Exchange RatesAt its inauguration in October 1982, the government stated, as oneof the cornerstones of its anti-inflationary program, that inflation andwage increases should be reduced below international rates,primarily through use of wage restraints and a stable exchange ratepolicy. Today, the annual increase in consumer prices has beenmore than halved to about 5% in 1989. For 1990, the projectedincrease is about 3%.Despite fluctuations in international exchange rates versus Danishkroner, not least with the US dollar, the kroner in late 1989 on atrade-weighted basis had the same value as in 1982.  BetweenOctober 1989 and May 1990, however, the kroner strengthened byalmost 8%.EmploymentSince the late 1950s, unemployment declined steadily to between 2%and 3% (regarded as full employment).  That situation prevailed untilthe first oil shock in 1973.  Unemployment then increased from 2.1%in 1974 to 5.1% in 1975 and to 10.8% in 1983 primarily due to theinflux  of women into the labor pool. Although the number of personsemployed in the public sector increased from 368,000 in 1967 to678,000 in 1977, this could not counter cyclical downturns in overallemployment. Unemployment declined to 8% of the total labor forcein 1987 but has since picked up, because of the labor market'sinability to absorb new entrants.  In 1989, the unemployment ratewas 9.2%. It is likely to remain at this level in 1990.Balance of Payments and TradeThe Danish balance of payments has been in deficit every year sincethe early 1960s.  In 1985, the deficit set an all-time record of $5.1billion, or more than 4.5% of GDP.  The deficit was reduced to about$1.4 billion in 1989.  Recent years' large deficits stem almost entirelyfrom the servicing of Denmark's foreign debt which, by the end of1989, had risen to $40 billion, or almost 40% of GDP.In 1989, the United States ranked fourth among Denmark's tradingpartners, accounting for more than 6% of total Danish trade.   MajorUS exports to Denmark are machinery and equipment, aircraft,military equipment, and coal.  Major Danish exports to the UnitedStates are machinery and equipment, agricultural products (mostlycanned ham and pork), chemicals, pharmaceuticals, and fish.EnergyExcept for some oil and gas in the North Sea, Denmark has onlylimited mineral resources and must import most of its fuels and rawmaterials. The country has no nuclear power plants, and indigenousoil and natural gas production from the North Sea in 1989 coveredalmost half of total Danish energy consumption, or more than 80%of oil and gas consumption. Danish crude-oil production in 1989totaled 5.5 million tons, and natural gas production reached about 3billion cubic meters.  By 1990, Danish hydrocarbon production isexpected to cover more than half of total Danish energy use.Until 1981, the Danish shipping conglomerate A.P. Moller held thesole concession for oil and gas exploration and exploitation onDanish territory, for which it formed a consortium  (DanishUnderground Consortium) with Shell, Gulf, Chevron, and Texaco(Gulf withdrew in 1975 and Chevron in 1986). After pressure from thegovernment, A.P. Moller agreed to relinquish half of the unexploredarea in 1982 and the remainder in 1984 and 1986. The governmentoffered part of the relinquished areas to new concessionaires in threelicensing rounds in 1983, 1985, and 1989, when a total of 37 licenseswere granted, covering an area of about 6,700 square miles, or lessthan 15% of the total Danish concession area. Seven US companiesparticipated in licenses granted in the 1983 round, three in the 1985,and four in the 1989 round.In the wake of the first oil crisis in 1973, Danish power plants shiftedrapidly from oil to coal; currently, the ratio is 97% coal and 3% oil.Following the Danish ban on trade with South Africa, coal sales fromthe United States to Denmark have now stabilized at about 3 milliontons annually.  Although  Danish energy policy throughout the 1970sand the early 1980s focused on energy savings, it is nowconcentrating on environmental protection.Greenland and the Faroe IslandsIn Greenland, zinc and lead mining had been carried out for someyears under difficult arctic conditions by the Canadian-ownedGreenex A/S at the Black Angel Mine in Marmorilik, West Greenland.The mine's resources are now fully exploited, and it will close in1990.  Oil and gas exploration by the US company ARCO on theeast coast of Greenland was given up in early 1990 as negotiationson more lenient concession terms for ARCO failed.  Fishing remainsthe principal Greenlandic industry.  In general, Greenlanders have alower level of income than mainland Danes.The Faroe Islands depend almost entirely on fisheries and relatedexports; the United States is among the leading importers of Faroeseproducts.European Community (EC)Denmark joined the EC on January 1, 1973, on the basis of apositive referendum vote at that time.  A second referendum washeld in 1986 on the issue of proposed amendments to the Treaty ofRome intended to improve the functioning of EC institutions and toprepare for the creation of the EC single market by the end of 1992.Fifty-six percent voted in favor of the changes, 44% against. The votereflects the Danish population's interest both in continuedmembership in the Community, from which especially Danishagriculture benefits heavily, and in maintaining the integrity andpreeminence of Danish political and social institutions.Although Denmark is proceeding well in implementing the new EC'92 Single Market Plan directives, it has major problems in adaptingits taxes and excise taxes to the much lower EC levels due to itsexcessively large public sector.FOREIGN RELATIONSDanish foreign policy is founded upon four cornerstones: the UnitedNations, the North Atlantic Treaty Organization (NATO), Nordiccooperation, and the EC. Denmark emphasizes its relations withdeveloping countries and is one of the few nations to exceed the UNgoal of contributing 1% of GNP to development assistance. Danishdevelopment assistance in 1987 totaled 0.84% of GNP, and thegovernment's goal is to reach 1% by 1992.  Danish security policyis founded on its membership in NATO.  In his opening address tothe parliament on October 4, 1988, the prime minister stated thatfuture emphasis will be on the promotion of Danish views towarddisarmament and toward the achievement of agreements onchemical weapons, conventional security in Europe, and on anuclear test ban.As a member of the Nordic Council, Denmark has strong economic,political, social, and cultural ties with other Nordic countries-Iceland,Norway, Finland, and Sweden. As the only Nordic country in the EC,its role as a bridge between the two regions recently has becomemuch more important, particularly with the sharp increase in Nordicbusiness investments in Denmark in order to exploit the opportunitiesof the EC '92 Single Market Plan.DEFENSEDenmark was a charter signatory of the North Atlantic Treaty, andDanish security continues to be based on membership in NATO.Since the late 1960s, the Folketing has adopted a series of multiyeardefense programs. Public opposition to increases in defensespending, during a period when economic constraints requirereduced spending for social welfare, has created differences amongthe political parties regarding a broadly acceptable level of newdefense expenditures.  A defense agreement reached in 1989 dealtwith defense funding and military reorganization during 1989-91.Denmark has maintained a system of indexation, which retroactivelycompensates for wage and price increases in the programeddefense expenditures. The Danish defense budget will remain atinflation-indexed zero growth for at least the next 2 years. In FY1989, defense spending represented about 2% of GDP and about6.9% of the central government budget.US-DANISH RELATIONSUS relations with Denmark, a longstanding European ally, are friendlyand close. In the NATO context, the Danish defense effort isimportant to the United States.About 225 US firms have offices, affiliates, or subsidiaries inCopenhagen. Although there is no American Chamber of Commerce,the American Club there attracts members both from the Americanbusiness community and Danes interested in trade and close tieswith the United States. Some 400,000 US tourists visit Denmarkannually.Principal US OfficialsAmbassador-Keith L. BrownDeputy Chief of Mission-Ronald D. FlackEconomic Counselor-Dennis A. SandbergPolitical Counselor-Ward C.  ThompsonConsul-Robert L. FretzAdministrative Officer-Richard H. SmythPublic Affairs Counselor (USIS)-Mary Ellen ConnellAgricultural Counselor-Anthony CruitCommercial Attache-Stephan HelgesenDefense and Naval Attache-Capt. Michael C. Tiernan, USNArmy Attache-Col. Lionel Ingram,Air Attache-Col. John LongChief, Office of Defense Cooperation-Col. Carl LydayTRAVEL NOTESThe US Embassy is located at Dag Hammarskjolds Alle 24, 2100Copenhagen O, Denmark (tel. [phone]).Customs: No immunizations are required, and US tourists do notneed visas for stays of less than 90 days.Climate and clothing: Winters are warmer and summers cooler thanin New England. Woolen clothes are worn most of the year.Transportation: Direct flights are available between Copenhagen andseveral major US cities, and many international carriers serveCopenhagen's Kastrup International Airport. Rail and air services linkmajor European centers. Rail service leaves daily for London, Paris,and Scandinavian capitals. Ferries connect Denmark with Oslo,Stockholm, Helsinki, and points in the UK and FRG.Copenhagen's bus, suburban train, and taxi services are excellent,and rates are reasonable.Telecommunications: Local telephone service is good. Worldwidetelephone and telegraph service is available. Copenhagen is six timezones ahead of eastern standard time.Tourist attractions: Tivoli is one of Copenhagen's famous touristattractions but is only open during the summer.  In downtownCopenhagen, the Rosenborg Castle exhibits the Danish crownjewels.  Not far from Copenhagen are Kronborg Castle in Elsinore,Frederiksborg Castle in Hillerod, Fredensborg Castle in Esrum Lake,the Open Air Museum in Sorgenfri, and the cathedral and Viking shipmuseum in Roskilde.Hans Christian Andersen's childhood home in Odense has beenturned into a museum.  The town of Dragoer, close to Copenhagen,as well as the towns of Ribe and Mogeltonder in southern Jutland,and the islands of Fano, Aero, Samso, and Bornholm offer glimpsesof Danish village and rural life. Copenhagen has many good, thoughexpensive, hotels.  Book in advance for the April-October season.Further InformationFor information on economic trends, commercial development,production, trade regulations, and tariff rates, contact theInternational Trade Administration, US Department of Commerce,Washington, DC 20230.Published by the United States Department of State --  Bureau ofPublic Affairs  -- Office of  Public Communication  --  Washington, DC--  June 1990  --  Editor:  Peter KnechtDepartment of State Publication 8298 -- Background Notes Series--  This material is in the public domain and may  be reprintedwithout permission; citation of this source is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>US DEPARMENT OF STATEBACKGROUND NOTE:  CZECH REPUBLICJULY 1994Official Name:  Czech RepublicPROFILEGeographyArea:  78,864 sq. kilometers; about the size of Virginia.Cities:  Capital--Prague (pop. 1.2 million). Other cities--Brno(385,000), Ostrava (327,000), Plzen (175,000).  Terrain:  Low mountainsto the north and south, hills in the west.Climate:  Temperate.PeopleNationality:  Noun and adjective--Czech(s).Population (1993 est.):  10.5 million.  Annual growth rate:  0.1%.Ethnic groups:  Czech (95%), Germans, Gypsies, Poles, Silesians,Slovaks.Religions:  Roman Catholic, Protestant.  Language:  Czech.Education:  Literacy--99%.Health:  Life expectancy--males 68 years, females 75 years.Work force:  5.2 million; industry, construction and commerce--47%,government and other services--41%, agriculture--11%.GovernmentType:  Parliamentary republic.Independence:  The Czech Republic was established January 1, 1993(former Czechoslovak state established 1918).  Constitution:  SignedDecember 16, 1992.Branches:  Executive--president (chief of state), prime minister (headof government), cabinet.  Legislative--Chamber of Deputies (formerly theCzech National Council), Senate (to be elected in 1994). Judicial--Supreme Court, Constitutional Court.Political parties:  Civic Democratic Party-Christian Democratic Party(ODS-KDS), 76 seats; Left Bloc (Communist Party of Bohemia and Moravia[KSCM]-Democratic Left [DL]), 35 seats; Czechoslovak Social DemocraticParty (CSSD), 16 seats; Liberal Social Union (LSU), 16 seats; ChristianDemocratic Union-Czech Peoples Party (KDU-CSL), 15 seats; Associationfor the Republic-Republican Party of the Czech Republic (SPR-RSC), 14seats; Civic Democratic Alliance (ODA), 14 seats; Movement forAutonomous Democracy in Moravia and Silesia (HSDMS), 14 seats.Suffrage:  Universal at 18.Administrative subdivisions:  Two regions--Bohemia and Moravia; sevenadministrative districts and Prague.Flag:  Blue triangle on staff side; upper white band, lower red band.EconomyGDP (1993 est.):  $30 billion.Per capita income (1993 est.):  $3,000.Natural resources:  Coal, coke, timber, lignite, uranium, magnesite.Agriculture:  Products--wheat, rye, oats, corn, barley, hops, potatoes,sugar beets, hogs, cattle, horses.Industry:  Types--iron, steel, machinery and equipment, cement, sheetglass, motor vehicles, armaments, chemicals, ceramics, wood, paperproducts, and footwear.Trade (1993):  Exports--$9 billion:  machinery, iron, steel, chemicals,raw materials, consumer goods. Trading partners--Austria, Belgium,Commonwealth of Independent States, France, Germany, Hungary, Poland,Switzerland, United States.Exchange rate (July 1994):  30 Czech crowns=$1.PEOPLEThe majority of the 10.5 million inhabitants of the Czech Republic areethnically and linguistically Czech (95%).  Other ethnic groups include:Germans, Gypsies, Poles, and Silesians.  After the division, someSlovaks remained in the Czech Republic and comprise roughly 3% of thecurrent population.  The border between the Czech Republic and Slovakiais open for former citizens of Czechoslovakia.  Laws establishingreligious freedom were passed shortly after the revolution of 1989lifting oppressive regulations enacted by the former communist regime.Major denominations and their estimated percentage populations are:Roman Catholic (39%), Protestant (4%).  A large percentage of the Czechpopulation claim to be atheists (49%), and 16% describe themselves asuncertain.  About 10,000 Jews continue to live there of a pre-warpopulation of more than 360,000.HISTORYThe Czech Republic was the western part of the Czech and Slovak FederalRepublic.   Formed into a common state after World War I (October 18,1918), the Czechs, Moravians, and Slovaks remained united for more than75 years.  On January 1, 1993, the two republics split to form twoseparate states.The Czechs lost their national independence to the Austro-HungarianEmpire in 1620 at the Battle of White Mountain and, for the next 300years, were ruled by the Austrian Monarchy.  With the collapse of themonarchy at the end of World War I, the independent country ofCzechoslovakia was formed, encouraged by, among others, U.S. PresidentWoodrow Wilson.Despite cultural differences, the Slovaks shared with the Czechs similaraspirations for independence from the Hapsburg state and voluntarilyunited with the Czechs.  The Slovaks were not at the same level ofeconomic and technological development as the Czechs, but the freedomand opportunity found in Czechoslovakia enabled them to make stridestoward overcoming these inequalities.  However, the gap never was fullybridged, and the discrepancy played a continuing role throughout the 75years of the union.Although Czechoslovakia was the only East European country to remain aparliamentary democracy from 1918 to 1938, it was plagued with minorityproblems, the most important concerning  the country's large Germanpopulation.  Constituting more than 22% of the interwar state'spopulation and largely concentrated in the Bohemian and Moravian borderregions (the Sudetenland), members of this minority supported in largepart by Nazi Germany undermined the new Czechoslovak state.  Internaland external pressures culminated in September 1938, when, at Munich,France, and the United Kingdom yielded to Nazi pressures and agreed toforce Czechoslovakia to cede the Sudetenland to Germany.Fulfilling Hitler's aggressive designs on all of Czechoslovakia, Germanyinvaded what remained of Bohemia and Moravia in March 1939, establishinga German "protectorate."  By this time, Slovakia had already declaredindependence and had become a puppet state of the Germans.At the close of World War II, Soviet troops overran all of Slovakia,Moravia, and much of Bohemia, including Prague.  In May 1945, U.S.forces liberated the city of Plzen and most of western Bohemia.  Acivilian uprising against the German garrison took place in Prague inMay 1945.  Following Germany's surrender, some 2.9 million ethnicGermans were expelled from Czechoslovakia with Allied approval.Reunited after the war, the Czechs and Slovaks set federal and nationalelections for the spring of 1946.  The democratic elements, led byPresident Eduard Benes, hoped the Soviet Union would allowCzechoslovakia the freedom to choose its own form of government andaspired to a Czechoslovakia that would act as a bridge between East andWest.  The Czechoslovak communist party, which won 38% of the vote, heldmost of the key positions in the government and gradually managed toneutralize or silence the anti-communist forces.  Although thecommunist-led government initially intended to participate in theMarshall Plan, it was forced by Moscow to back out.  Under the cover ofsuperficial legality, the communist party seized power in February 1948.After extensive purges modeled on the Stalinist pattern in other EastEuropean states, the communist party tried 14 of its former leaders inNovember 1952 and sentenced 11 to death.  For more than a decadethereafter, the Czechoslovak communist political structure wascharacterized by the orthodoxy of the leadership of party chief AntoninNovotny.The 1968 Soviet InvasionThe communist leadership allowed token reforms in the early 1960s, butdiscontent arose within the ranks of the communist party centralcommittee, stemming from dissatisfaction with the slow pace of theeconomic reforms, resistance to cultural liberalization, and the desireof the Slovaks within the leadership for greater autonomy for theirrepublic.  This discontent expressed itself with the removal of Novotnyfrom party leadership in January 1968 and from the presidency in March.He was replaced as party leader by a Slovak, Alexander Dubcek.After January 1968, the Dubcek leadership took practical steps towardpolitical, social, and economic reforms.  In addition, it called forpolitico-military changes in the Soviet-dominated Warsaw Pact andCouncil for Mutual Economic Assistance.  The leadership affirmed itsloyalty to socialism and the Warsaw Pact but also expressed the desireto improve relations with all countries of the world regardless of theirsocial systems.A program adopted in April 1968 set guidelines for a modern, humanisticsocialist democracy that would guarantee, among other things, freedom ofreligion, press, assembly, speech, and travel; a program that, inDubcek's words, would give socialism "a human face."  After 20 years oflittle public participation, the population gradually started to takeinterest in the government, and Dubcek became a truly popular nationalfigure.The internal reforms and foreign policy statements of the Dubcekleadership created great concern among some other  Warsaw Pactgovernments.  On the night of August 20, 1968, Soviet, Hungarian,Bulgarian, East German, and Polish troops invaded and occupiedCzechoslovakia.  The Czechoslovak Government immediately declared thatthe troops had not been invited into the country and that their invasionwas a violation of socialist principles, international law, and the UNCharter.The principal Czechoslovak reformers were forcibly and secretly taken tothe Soviet Union.  Under obvious Soviet duress, they were compelled tosign a treaty that provided for the "temporary stationing" of anunspecified number of Soviet troops in Czechoslovakia.Dubcek was removed as party First Secretary on April 17, 1969, andreplaced by another Slovak, Gustav Husak.  Later, Dubcek and many of hisallies within the party were stripped of their party positions in apurge that lasted until 1971 and reduced party membership by almost one-third.The 1970s and 1980s became known as the period of "normalization," inwhich the apologists for the 1968 Soviet invasion prevented, as bestthey could, any opposition to their conservative regime.  Political,social, and economic life stagnated.  The population, cowed by the"normalization," was quiet.At the time of the communist takeover, Czechoslovakia had a balancedeconomy and one of the higher levels of industrialization on thecontinent.  In 1948, however, the government began to stress heavyindustry over agricultural and consumer goods and services.  Many basicindustries and foreign trade, as well as domestic wholesale trade, hadbeen nationalized before the Communists took power.  Nationalization ofmost of the retail trade was completed in 1950-51.Heavy industry received major economic support during the 1950s, butwaste and inefficient use of industrial resources resulted from centralplanning.  Although the labor force was traditionally skilled andefficient, inadequate incentives for labor and management contributed tohigh labor turnover, low productivity, and poor product quality.Economic failures reached a critical stage in the 1960s, after whichvarious reform measures were sought, with no satisfactory results.Hope for wide-ranging economic reform came with Alexander Dubcek's risein January 1968.  Despite renewed efforts, however, Czechoslovakia couldnot come to grips with inflationary forces, much less begin the immensetask of correcting the economy's basic problems.The economy saw growth during the 1970s but then stagnated between 1978-82.  Attempts at revitalizing it in the 1980s with management and workerincentive programs were largely unsuccessful.  The economy grew after1982, achieving an annual average output growth of more than 3% between1983-85.  Imports from the West were curtailed, exports boosted,  andhard currency debt reduced substantially.  New investment was made inthe electronic, chemical, and pharmaceutical sectors, which wereindustry leaders in Eastern Europe in the mid 1980s.The Velvet RevolutionThe roots of the 1989 civic Forum movement that came to power during the"Velvet Revolution" lie in human rights activism.  On January 1, 1977,more than 250 human rights activists signed a manifesto called theCharter 77, which criticized the government for failing to implementhuman rights provisions of documents it had signed, including thestate's own constitution; international covenants on political, civil,economic, social, and cultural rights; and the Final Act of theConference for Security and Cooperation in Europe.  Although notorganized in any real sense, the signatories of Charter 77 constituted acitizens' initiative aimed at inducing the Czechoslovak Government toobserve formal obligations to respect the human rights of theircitizens.In the days after November 17, 1989, Charter 77 and other groups unitedto become the Civic Forum, an umbrella group championing bureaucraticreform and civil liberties.  Its leader was the dissident playwrightVaclav Havel.  Intentionally eschewing the label "party," a word given anegative connotation during the previous regime, Civic Forum quicklygained the support of millions of Czechs, as did its Slovak counterpart,Public Against Violence.Faced with an overwhelming popular repudiation, the Communist Party allbut collapsed.  Its leaders, Husak and party chief Milos Jakes, resignedin December 1989, and Havel was elected President of Czechoslovakia onDecember 29.The astonishing quickness of these events was in part due to theunpopularity of the communist regime and changes in the policies of itsSoviet guarantor as well as to the rapid, effective organization ofthese public initiatives into a viable opposition.A coalition government, in which the communist party had a minority ofministerial positions, was formed in December 1989.  The first freeelections in Czechoslovakia since 1948 took place in June 1990 withoutincident and with more than 95% of the population voting.  Asanticipated, Civic Forum and Public Against Violence won landslidevictories  in their respective republics and gained a comfortablemajority in the federal parliament.  The parliament undertooksubstantial steps toward securing the democratic evolution ofCzechoslovakia.   It successfully moved toward fair local elections inNovember 1990, ensuring fundamental change on the county and town level.Civic Forum found, however, that although it had successfully completedits primary objective--the overthrow of the communist regime--it wasineffectual as a governing party.  The demise of Civic Forum was viewedby most as necessary and inevitable.By the end of 1990, unofficial parliamentary "clubs" had evolved withdistinct political agendas.  These solidified into the parties that makeup the Czech political landscape.  Most influential is the CivicDemocratic Party, headed by Prime Minister and former Federal Ministerof Finance Vaclav Klaus.  Other notable parties that came into beingafter the split were the Civic Movement and Civic Democratic Alliance.By 1992, Slovak calls for greater autonomy effectively blocked the dailyfunctioning of the federal government.  In the election of June 1992,Klaus's Civic Democratic Party won handily in the Czech lands on aplatform of economic reform.  Vladimir Meciar's Movement for aDemocratic Slovakia emerged as the leading party in Slovakia, basing itsappeal on fairness to Slovak demands for autonomy.  Federalists, likeHavel, were unable to contain the trend toward the split.  In July 1992,President Havel resigned.  In the latter half of 1992, Klaus and Meciarhammered out an agreement that the two republics would go their separateways by the end of the year.Members of the federal parliament, divided along national lines, barelycooperated enough to pass the law officially separating the two nations.The law was passed on December 27, 1992.  On January 1, 1993, the CzechRepublic and the Republic of Slovakia were simultaneously and peacefullyfounded.Relationships between the two states, despite occasional disputes aboutthe division of federal property and governing of the border have beenas peaceful as Prime Ministers Klaus and Meciar promised.  Both statesattained immediate recognition from the U.S. and their Europeanneighbors.POLITICAL CONDITIONS AND GOVERNMENTThe Czech political scene supports a broad spectrum of parties rangingfrom the semi-reformed communist party on the far left to thenationalistic Republican Party on the extreme right.  Currently, theruling coalition comprises the Civic Democratic Party (ODS), the CivicDemocratic Alliance (ODA), the Christian Democratic Party (KDU-CSL), andthe splinter Christian Democratic Party (KDS).  It is generallyconsidered right of center.  The ruling coalition includes severalprominent economists and derives support mainly from the free marketreforms they advocate.  As Prime Minister, Klaus represents thecoalition and wields considerable power.  These powers include the rightto set the agenda for most foreign and domestic policy, mobilize theparliamentary majority, override a presidential veto, and choosegovernmental ministers.Vaclav Havel, now President of the Czech Republic, is not affiliatedwith any party but remains one of the country's most popularpoliticians.  As formal head of state, he is granted specific powerssuch as the right to nominate Constitutional Court judges, dissolveparliament under certain conditions, and enact a veto on legislation.With the split of the former Czechoslovakia, the powers andresponsibilities of the now defunct federal parliament were transferredto the Czech National Council, which renamed itself the Chamber ofDeputies.  It has become the highest legislative body.Constitutionally, it is bicameral, with the Chamber of Deputies and theSenate.The Senate has not yet been elected; elections are slated for later in1994.  Chamber delegates are elected from seven districts and thecapital, Prague, for four-year terms, on the basis of proportionalrepresentation.The country's highest court of appeals is the Supreme Court, elected byand responsible to the Chamber of Deputies.  The Constitutional Court,which rules on constitutional issues, is appointed by the president, andits members serve 10-year terms.National Security IssuesA major overhaul of the Czechoslovak defense forces began in 1990 andcontinues in the Czech Republic.  The military has assumed a morenational-defense orientation.  The armed forces that numbered up to200,000 in 1989 will be cut down to 65,000 by 1995.  Other reformsinclude:--  Cutting the Czechoslovak Army from 48,000 to 23,000 members.  It isnow organized into corps with subordinate brigades.--  Cutting the Czechoslovak Air Force from 55,000 to 27,000.  It is noworganized into air defense and tactical air corps, each with two airdivisions.--  Dropping the compulsory military training requirement for those morethan 18 from two years to one.Principal Government OfficialsPresident--Vaclav Havel (Independent)Prime Minister--Vaclav Klaus (ODS)Foreign Minister--Josef Zieleniec (ODS)Ambassador to the U.S.--Michael ZantovskyThe Czech Republic maintains an embassy at 3900 Spring of FreedomStreet, NW, Washington, D.C. 20008, (tel. [phone]).ECONOMYOf the emerging democracies in Central and Eastern Europe the CzechRepublic has one of the most developed industrialized economies.  Itsstrong industrial tradition dates to the 19th century, when Bohemia andMoravia were the economic heartland of the Austro-Hungarian Empire.Today, this heritage is both an asset and a liability.  The CzechRepublic has a well educated population and a well developedinfrastructure, but its industrial plants and much of its industrialequipment tend to be obsolete.According to the Stalinist development policy of plannedinterdependence, all the economies of the socialist countries werelinked tightly with that of the Soviet Union.  With the disintegrationof the communist economic alliance in 1991, Czech manufacturers losttheir traditional markets among former communist countries to the East,some of whom still owe the former Czechoslovakia sizable debts.The Czech Republic lacks sufficient energy resources as well as manyother raw materials.  Its major source of energy is highly pollutinglow-grade brown coal, which is not considered a viable long-term option.Nuclear energy is currently considered the country's most plausiblealternative.  The Czechs are almost entirely dependent on a Russianpipeline for petroleum and natural gas.  For this reason, they haverecently signed an agreement to construct an oil pipeline from Germanyby 1994.The principal industries are heavy and general machine-building, ironand steel production, metalworking, chemicals, electronics,transportation equipment, textiles, glass, brewing, china, ceramics andpharmaceuticals.  Its main agricultural products are sugar beets, fodderroots, potatoes, wheat, and hops.The "Velvet Revolution" in 1989 offered a chance for profound andsustained economic reform.  Signs of economic resurgence have begun toappear in the wake of the shock therapy that the International MonetaryFund (IMF) labeled the "big bang" of January 1991.  Since then, astuteeconomic management has led to the liberalization of 95% of all pricecontrols, annual inflation in the 10%-15% range, modest budgetarydeficits of 2%-4% of GDP, low unemployment, a positive balance-of-payments position, a  stable exchange rate, foreign reserves at a post-World War II high (about $5 billion), a shift of exports from formercommunist economic bloc markets to Western Europe, and a manageableforeign debt.Particularly impressive have been the Republic's strict fiscal policies.Following a series of currency devaluations ending in January 1991, thecrown has remained stable in relation to the U.S.  dollar.  The blackmarket exchange rate, which in the past deprived the government ofvaluable western currency, has effectively been eliminated.  The Czechcrown, now partially convertible, should become fully convertible in1995 or 1996.In addition, the government has revamped the legal and administrativestructure governing investment in order to stimulate the economy andattract foreign partners.  Shifting emphasis from the East to the Westhas necessitated restructuring existing facilities in banking andtelecommunications as well as adjusting commercial laws and practices tofit Western standards.  The republic has made progress toward creating astable investment climate.This success enabled the Czech Republic to become the first post-communist country to receive an investment grade credit rating byinternational credit institutions.  For this reason, the countryattracted $3 billion in foreign investment during the period of 1991 to1993, with the U.S. holding 30% of the foreign investment, in secondplace just after Germany.   The Czech Government welcomes U.S.investment, in particular, as a counter-balance to the strong economicinfluence of Western Europe, specifically that of their powerfulneighbor Germany.  Since the Velvet Revolution, the number of U.S.companies represented in Prague (where nearly all the foreign investorsare located) has increased from a handful to more than 500.The government has an ambitious plan to privatize state industries inall sectors of the economy.  It hopes to create a private sector rapidlyusing the following means:  restitution of property confiscated underthe former communist regime, sale of large and small state-ownedenterprises through a voucher system, direct sales and rights toownership for foreign investors, and encouraging entrepreneurship.The republic boasts a flourishing consumer production sector and ismaking marked progress toward privatizing state-owned heavy industriesthrough the voucher privatization system.  Under the system, everycitizen was given the opportunity to buy, for a moderate price, a bookof vouchers that represents potential shares in any state-owned company.The voucher holders could, then, invest their vouchers, infusing thechosen company with valuable capital.  State ownership of businesses,estimated to be about 97% under communism, will be reduced to about 30%by the end of 1994.  When the voucher privatization process is complete,Czechs will own shares of each of the Czech companies, making them oneof the highest per capita share owners in the world.  Privatizationthrough restitution of real estate to the former owners was largelycompleted in 1992.  In the words of Prime Minister Klaus, the republichas "crossed the Rubicon" in terms of privatization.The republic's economic transformation is far from complete--thegovernment still faces serious challenges in transforming the housingsector, privatizing the health care system, solving seriousenvironmental problems, and helping newly privatized state-ownedcompanies adjust to the rigors of free-market competition.Full membership in the European Union (EU), which the government hopesto achieve by the year 2000, is probably the country's highest foreignpolicy goal.  It became an associate member of the EU in 1993, but itmay take a decade or more for the economy to reach Western Europeanstandards.  As of 1993, wage levels, averaging $200 a month, were 10%-20% of those in the neighboring Germany and Austria.  Productivity alsois substantially lower due to chronic underinvestment.The division of Czechoslovakia has not had an appreciable effect on theCzech economy.  An agreement was concluded to divide all federalproperty of the former Czechoslovak state according to a 2:1 ratio infavor of the Czech Republic.  Firm monetary and fiscal policies arelikely to be maintained, meeting the objective of a balanced budget.Real GDP is likely to remain stable, with unemployment increasing toabout 5% and inflation to the 20% range.FOREIGN RELATIONSThe foreign policy of Czechoslovakia had, until 1989, followed that ofthe Soviet Union.  Since independence, the Czechs have made integrationinto Western institutions their chief foreign policy objective.Fundamental to this objective is Czech membership in the European Union.The government has met most EU demands.  Although there have beendisagreements over some economic issues, such as agricultural tariffs,the EU has signed various association agreements with the CzechGovernment designed to facilitate membership.The Czech Republic is a member of the United Nations and participates inits specialized agencies.  It is a member of the General Agreement onTrade and Tariffs (GATT).  It maintains diplomatic relations with morethan 85 countries, of which 63 have permanent representation in Prague.U.S.-CZECH RELATIONSMillions of Americans have their roots in Bohemia and Moravia, and alarge community in the United States has strong cultural and familialties with the Czech Republic.  President Woodrow Wilson and the UnitedStates played a major role in the establishment of the originalCzechoslovak state on October 28, 1918.  President Wilson's 14 Points,including the right of ethnic groups to form their own states, were thebasis for the union of the Czechs and Slovaks.  Tomas Masaryk, thefather of the state and its first President, visited the United Statesduring World War I and worked with U.S. officials in developing thebasis of the new country.  He used the U.S. Constitution as a model forthe first Czechoslovak Constitution.After World War II, and the return of the Czechoslovak government inexile, normal relations were continued until 1948, when the communistsseized power.  Relations cooled rapidly.  The Soviet invasion ofCzechoslovakia in August 1968 further complicated U.S.-Czechoslovakrelations.  The United States referred the matter to the UN SecurityCouncil as a violation of the UN Charter, but no action was takenagainst the Soviets.With the "Velvet Revolution" of 1989, bilateral relations have improvedimmensely.  Dissidents once sustained by U.S. encouragement and humanrights policies reached high levels in the government.  President Havel,in his first official visit as head of the Czechoslovakia, addressed theU.S. Congress and was interrupted 21 times by standing ovations.  In1990, on the first anniversary of the revolution, President Bush, infront of an enthusiastic crowd on Prague's Wenceslas Square, pledgedU.S. support in building a democratic Czechoslovakia.  Toward this end,the U.S. Government has actively encouraged the political and economictransformation.  U.S. funding has been in the range of $30-$35 millionannually, largely regional programs administered by the U.S. Agency forInternational Development.Although the U.S. Government was originally opposed to the idea ofCzechoslovakia forming two separate states, concerned that the splitmight aggravate existing regional political tensions, it recognized boththe Czech Republic and Slovakia on January 1, 1993.  Since then, U.S.-Czech relations have remained strong economically, politically, andculturally.TRAVEL NOTESCustoms:  A passport is needed but a visa is not required for stays ofup to 30 days.  For further information concerning entry requirementsfor the Czech Republic, travelers can contact the Embassy of the CzechRepublic at 3900 Spring of Freedom Street, NW, Washington, DC  20008,telephone [phone].Health:  Medical facilities are available.  Some facilities,particularly in remote areas, may be limited.  Doctors and hospitalsoften expect cash payment for health services.  U.S. medical insuranceis not always valid outside the United States.  Travellers have foundthat in some cases, supplemental medical insurance with specificoverseas coverage has proved to be useful.  Further information onhealth matters can be obtained from the Centers for Disease Control'sinternational travellers hotline at [phone].</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES SERIES, CYPRUS, MARCH 1992PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSOfficial Name:   Republic of Cyprus1PROFILEGeographyArea:  9,251 sq. km. (3,572 sq. mi.); about the size of Connecticut.Cities: Capital--Nicosia (pop. 164,400).  Other cities--Limassol, Larnaca,Famagusta, Kyrenia, Paphos.  Terrain: Central plain with mountain rangesto the north and south.  Climate:  Mediterranean with hot, dry summersand cool, wet winters.PeopleNationality:  Noun and adjective--Cypriot(s).Population (1991): 735,000.  Greek area:  565,000;  Turkish area: 170,000.Annual growth rate: 1%.  Ethnic groups: Greek (78%), Turkish (18%), Armenianand other (4%).Religions: Greek Orthodox, Muslim, Maronite, RomanCatholic, Armenian.  Languages:  Greek, Turkish, English.Education:  Years compulsory--  6 in elementary; 3 in high school.Attendance--almost 100%.  Literacy--about 99%. Health (1990):Infant mortality rate--10/1,000.  Life expectancy--73 yrs. males; 78 yrs.females.Work force (1991): Greek area--280,000:  trade and tourism-- 24%; industry-20%; agriculture--15%; public services--6%. Turkish area--74,000: agriculture-29%; public services--22%; industry--10%; trade and tourism--10%.  Figurescited are for the Greek Cypriot Community, unless otherwise noted.GovernmentType:  Republic.Independence: August 16, 1960. Constitution:  August 16, 1960.Branches:  Executive--president elected to 5-yr. term.  Legislative--unicameral House of Representatives, members elected to 5-yr. terms.Judicial--Supreme Court; six district courts.  Administrative subdivisions:six.Political parties: Greek Cypriot Community--Democratic Rally (right);Democratic  (center-right);  AKEL (communist); EDEK (socialist).  TurkishCypriot Community--National Unity  (center-right); Republican Turkish(Marxist); Communal Liberation (left); New Dawn  (right); Free Democratic(center); Social Democratic (center-left).  Suffrage: Universal at age 18.Central government budget (1991):  Total revenue--$1.2 billion; Totalexpen-diture--$2 billion; Development spending--$206 million. Fiscal deficitreached   $285 million (5% of GDP) in 1991.  Defense (1991 est.):  $379million (6% of GDP).Flag:  Against a white background, island's shape in gold above two crossedolive branches.EconomyGNP (1991):  $5.9 billion.  Per capita income (1991):  Greek Cypriots--$9,970;Turkish Cypriots--about $3,500.Natural resources: Pyrites, copper, asbestos, gypsum, lumber, salt, marble,clay, earth pigment.Agriculture (7% of GDP):  Products--Potatoes and other vegetables, citrusfruits, olives, grapes, wheat, carob seeds.Industry (18% of GDP):  Types--mining,  chemicals, non-electric machinery,clothing, footwear, beverages, cement.Services and Tourism (50% of GDP):  Trade, restaurants, and hotels 23%;finance, insurance, real estate, and business 15%; transport, storage,and communication 10%.Trade (1991):  Exports--$838 million: citrus, grapes, wine, potatoes, clothing,footwear.  Major markets--EC (especially the UK),  Middle East.  Imports--$2.3 billion: consumer goods, petroleum and lubricants, food and feed grains.Major suppliers--EC (especially the UK), Japan.Exchange Rate:  US$2.30=1 Cyprus pound.Fiscal year:  Calendar year.OVERVIEWCyprus has been divided since the Turkish military intervention of 1974,following a coup directed from Greece.  Since then, the southern part ofthe country has been under the control of the Government of Cyprus and thenorthern part under an autonomous Turkish-Cypriot administration supportedby the presence of Turkish troops.  In 1983, that administration proclaimeditself the "Turkish Republic of Northern Cyprus," recognized only by Turkey.UN  peace-keeping forces maintain a buffer zone between the two sides.PEOPLE AND  HISTORYGreek and Turkish Cypriots share many customs but maintain distinct identitiesbased on religion, language, and close ties with their respective  motherlands.Greek and Turkish are official languages in their sectors.  English is widelyused.  Cyprus has a well-developed system of primary and secondary education.Cypriots traditionally have received higher education at Greek, Turkish, orBritish universities.   Growing numbers also are being educated in the UnitedStates.  Separate institutions of higher education on the island have beendeveloped by both the Turkish and Greek communities.Cypriot culture is among the oldest in the Mediterranean.  By BC 3700, theisland was well inhabited, a crossroads between East and West.  The islandfell successively under Assyrian, Egyptian,  Persian, Greek, and Romandomination.  For 800 years, beginning in 364 AD, Cyprus was ruled by Byzantium.After brief possession by Richard the Lion-Hearted, the island came underFrankish control in the late 12th century.  It was ceded to the VenetianRepublicn 1489 and acquired by the Ottoman Turks in 1571.The Ottomans applied the millet system to Cyprus, under which non-Muslimminorities were governed by their religious authorities.  This systemreinforced the position of the church and the cohesion of the ethnic Greekpopulation.  Most of the Turks who settled on the island during the threecenturies of Ottoman rule remained when control of Cyprus, although notsovereignty,  was ceded to the United Kingdom in 1878.  Many, however,left for Turkey during the 1920s.The island was annexed formally by the UK in 1914 at the outbreak of WorldWar I and became a crown colony in 1925.  Cyprus gained its independencefrom the UK  in 1960, after an anti-UK campaign by the Greek Cypriot EOKA(National Organization of Cypriot Fighters), a guerrilla group which desiredpolitical union with Greece, in a process known as enosis.  ArchbishopMakarios, a charismatic religious and political leader, was electedPresident.Shortly after the founding of the republic, serious differences arosebetween the two communities over the implementation and interpretation ofthe constitution.  Intercommunal fighting erupted in December 1963, afterwhich Turkish Cypriots, in their view, were forced to withdraw from mostnational institutions and began to administer their own affairs.  UNpeacekeepers have been on the island since 1964.In 1974, a military junta in Athens sponsored a coup in Nicosia led byextremist Greek Cypriots supporting union with Greece.  The junta had beenhostile to Makarios for alleged pro-communist leanings and for what wasperceived as President Makarios' abandonment of enosis.  Turkey, citingthe 1960 Treaty of Guarantee, intervened militarily to protect TurkishCypriots. In a two-stage offensive, Turkish troops took control of 38%of the island.  Many Greek Cypriots fled south while Turkish Cypriots flednorth.  After a cease-fire was declared, a large-scale population transferoccurred.GOVERNMENTSince 1974, Cyprus has been divided de facto into two areas.  The Governmentof the Republic of Cyprus has continued as the internationally recognizedauthority, but, in practice, its power extends only to the Greek Cypriot-controlled areas.The 1960 Cypriot Constitution provided for a presidential system of governmentwith independent executive, legislative, and judicial branches, as well as acomplex system of checks and balances, including a weighted power-sharing ratiodesigned to protect the interests of the Turkish Cypriots.  The executive,for example, was headed by a Greek Cypriot president and a Turkish Cypriotvice president, elected by their respective communities for 5-year terms andpossessing a right of veto over certain types of legislation and executivedecisions.Certain provisions of the constitution were never fully implemented. TheGreek Cypriots argued that the complex mechanisms introduced to protectTurkish Cypriot interests were obstacles to efficient government.  InNovember 1963, President Makarios advanced a series of constitutionalamendments designed to eliminate some of these special provisions.  TheTurkish Cypriots opposed such changes.  The confrontation prompted widespreadintercommunal fighting, after which Turkish Cypriot participation ceased inthe central government.  Following a further outbreak of intercommunalviolence in 1967-68, a Turkish Cypriot provisional administration was formed.In February 1975, the Turkish Cypriots formally set up their own governmentwith a popularly elected president and a prime minister responsible to theNational Assembly exercising joint executive powers.  In 1983, the TurkishCypriots declared the independence of the "Turkish Republic of NorthernCyprus" (TRNC) and in 1985 adopted a constitution and held elections; thisarrangement is recognized only by Turkey.Principal Government OfficialsPresident--George Vassiliou Takis Nemitsas ChristofidesForeign Minister--George IacovouAmbassador to the United States--Michaelis SherifisAmbassador to the United Nations--Andreas MavrommatisCyprus maintains an Embassy in the United States at 2211 R Street NW,Washington, DC 20008 (tel. [phone]).  The Cypriot Consulate General islocated in New York City and Cypriot Honorary Consuls are in Atlanta, BatonRouge, Chicago, Fort Wayne, Houston, Los Angeles, Oakland, Philadelphia,Phoenix, Portland, San Francisco, St. Louis, Rochester, MN., and Wellesley,MA.  Cyprus also maintains a trade center at 13 East 40th Street, New York,NY 10016 (tel. [phone]).  The Turkish Cypriots maintain offices inWashington and at the Turkish Mission to the United Nations in New York.POLITICAL CONDITIONSBoth the Republic of Cyprus and the "TRNC" have active multi-party politicalsystems. There are four major Greek Cypriot political parties--the conservativeDemocratic Rally, the center-right Democratic Party, socialist EDEK, andcommunist AKEL.  None has been able to elect a president by itself or dominatethe 56-seat House of Representatives.President Vassiliou, a successful businessman elected in 1988 as an independentwith backing from AKEL,  faces pressures from the party of former PresidentSpyros Kyprianou and the Socialist party led by Vassos Lyssarides.  Both areconsidered less flexible on settlement issues than the President.  The 165,000Greek Cypriot refugees are also a potent political force, along with theOrthodox Church of Cyprus, an independent branch of Greek Orthodoxy whichexercises broad influence in temporal as well as ecclesiastical matters.On the Turkish Cypriot side,  the National Unity Party founded by current"TRNC President" Rauf Denktash, controls all but five seats in the  assembly.The two main opposition parties--the leftist Republican Turkish Party and theCommunal Liberation Party--have boycotted the assembly since they lost acritical general election in May 1990. They contend that election ruleswere unfair and that the Turkish mainland had intervened unfairly during thecampaign.   One month earlier, Denktash, running without party affiliation,was re-elected with 67% of the votes.Efforts to develop institutional arrangements acceptable to both communitieshave been made almost since the founding of the republic.   UN-sponsorednegotiations began in 1968.  Since 1975, there have been several sets ofnegotiations and other initiatives.  Despite setbacks, discussions continueto focus on ways to establish a new constitutional arrangement for the Stateof Cyprus that will regulate the relations of the two communities on a federal,bicommunal,  and bizonal basis.  Turkish Cypriots place emphasis on bizonality,security guarantees,  and political equality of the two communities.   GreekCypriots emphasize the rights of  movement, property, settlement, and thereturn of territory.  Turkish Cypriots favor a federation of  two nearlyautonomous societies living side by side with limited contact, while GreekCypriots envision a more integrated structure.Talks between Greek Cypriot President Vassiliou and Turkish Cypriot leaderDenktash have taken place since 1988.  UN efforts continue, with SecurityCouncil Resolutions 649 (1990) and 716 (1991)  calling on both communitiesto negotiate on an equal footing and to complete an overall frameworkagreement.ECONOMYThe economy of the Republic of Cyprus has made a dramatic recovery from the1974 hostilities which created  more than 230,000 jobless and homelessrefugees across the island.  Cyprus benefited from the mid-1970's economicboom in the Middle East and from its evolution as a substitute base formultinational companies fleeing civil war in Lebanon.  Already a signatoryof a custom's union agreement with the European Community (EC), which providesfor gradual elimination of bilateral customs duties on 82% of goods traded,the government  applied for full membership in the EC in 1990.The economy has shifted from agriculture to light manufacturing (especiallyof clothing and footwear) and services and expanded rapidly in 1990 due tostrong growth of domestic demand and tourism.   The government is promotingindustrial restructuring toward "flexible specialization" aimed at penetratingnew markets, especially in Europe.   Tourism--which has rebounded after adecline due to the Gulf war--is a vital source of foreign exchange and astrong stimulus to growth.  More than 1.5 million touristsvisited Cyprusin 1990.GNP of the government-controlled area grew by 6% in 1990, topping the 5.6%average growth rate during previous decade.  Unemployment declined furtherto 1.8% of the workforce.  Severe labor shortages were felt in tourism,industry, and agriculture.Agriculture fell to 6.8% of the GNP in 1990 and accounted for 14% ofemployment and 26% of total exports.  Potatoes and citrus are the principalexport crops.  Cyprus subsidizes vineyards and winemaking and has an annualglut of unsold wine. The island has few natural resources and must importfuels, most raw materials, heavy machinery, and transportation equipment.A drop in tourist arrivals due to the Gulf war, drought, and the government'sfailure to enact tax revisions all had a negative impact on state finances in1990, which saw the deficit rise to 5.1% of GDP--more than double 1990 levels.However, the deficit is forecast to drop to 3.5% of GDP in 1992, well aboveadministration targets.  The trade deficit has increased steadily from $281million in 1973 to $1.5 billion in 1991, but other earnings--mostly fromtourism--have kept pace, resulting in a favorable trade balance.Turkish Cypriot EconomicsThe economic disparity between the two communities is pronounced.  In 1991,Turkish Cypriot  per capita income was about $3,500; for Greek Cypriots itrose to $9,970.  The Turkish Cypriot economy suffers from a lack of privateand governmental investment, and shortages of skilled labor and experiencedmanagers.  The Government of Cyprus has sought, with some success, to limiteconomic interaction between the Turkish Cypriot sector and the outside world.Agriculture is waning as an economic mainstay.  Recent measures have providedsubsidized credits for investing in tourism, an area which Turkish Cypriotsare working to develop.  As in the south, earnings from tourism largely offsetthe merchandise trade deficit.  Four-fifths of visitors to the north are fromTurkey.The common unit of account among Turkish Cypriots is the Turkish lira, subjectto 70% inflation in 1990.  Financial reforms have instituted a free market inforeign exchange and authorized residents to hold foreign-currency denominatedbank accounts.  This encouraged transfers from Turkish Cypriots abroad,resulting in a construction boom, imports, and customs duties.  Localrevenues now cover about 80% of current needs of the authorities.  Commercialbank credit available to Turkish Cypriots, however, is only 7% of thatextended in the Greek Cypriot south.Turkey is the major source of development assistance and of imports; the EC isthe primary destination of exports, which consist principally of citrus.DEFENSESince independence, the Republic of Cyprus has been a neutral country and amember of the Non-aligned Movement.  It is not a member of any militaryalliance.  Troops of five official military organizations, however,  arebased in Cypriot territory:  Greek Cypriot, Turkish Cypriot, mainland Greek,mainland Turkish, and the UN Force in Cyprus (UNFICYP).The Greek Cypriot community requires compulsory military service for malesfollowing secondary education.  The Greek Cypriot National Guard numbers about10,000, with 65,000 reserves.  Many senior officers of the Greek CypriotNational Guard and a number of its personnel are Greek army regulars.A separate mainland Greek military contingent also is stationed in theRepublic of Cyprus.A 4,500 troop Turkish Cypriot Security Force, originally designed to protectTurkish Cypriot enclaves before 1974, is also based on compulsory militaryservice for Turkish Cypriot males.  In addition to the estimated 30,000Turkish military forces stationed on Cyprus, Turkish regulars provide asignificant portion of the leadership of the Turkish Cypriot SecurityForce.UNICYP has about 2,200 troops with military contingents from the UK ,Canada, Austria, and Denmark, as well as civilian police from Australia andSweden and smaller units from Finland and Ireland. The UN force patrols thecease-fire buffer zone, known as the "green line," between the two communities.In addition, British forces are stationed at two Sovereign Base Areas on thesouthern coast of the island.FOREIGN RELATIONSThe Government of Cyprus follows a non-aligned foreign policy, although itidentifies with the West in its cultural affinities and trade patterns andmaintains close relations with Greece.   Turkey does not recognize theGovernment of Cyprus.Since 1974, the foreign policy of the Government of Cyprus has sought thewithdrawal of Turkish forces and the most favorable constitutional andterritorial settlement possible. This campaign has been  pursued primarilythrough international forums such as the United Nations and the Non-alignedMovement.  In 1990, Greek Cypriot popular and political support for membershipin the European Community spurred the government  to make a formal applicationto the EC--despite bitter objections from the Turkish Cypriots, who arguedthat such a move required their consent.US-CYPRIOT RELATIONSThe United States regards the status quo on Cyprus as unacceptable.Successive US Administrations have viewed UN-led intercommunal negotiationsas the best means to achieve a lasting settlement.  The United States willcontinue actively to  support and aid the UN Security Council's efforts.Since 1981, the United States has had a Special Cyprus Coordinator--currentlyAmbassador Nelson Ledsky.The United States has channeled $260 million in assistance to the twocommunities through the UN High Commissioner for Refugees and the CyprusRed Cross since the mid-1970s.   The United States now provides $15 millionannually to promote bicommunal projects and finance scholarships for Cypriotstudents.The United States has been the largest financial contributor to UNFICYP sincethe creation of the force in 1964.  By November 1990, the US had contributed48%--$203 million out of a total $424 million--to the UNFICYP account.Principal US OfficialsAmbassador--Robert E. LambDeputy Chief of Mission Carolyn R. HugginsChief Political Officer--Donald BraumEconomic/Commercial Officer--Trevor EvansDefense Attache--Lt. Col. Thomas HaasePublic Affairs Officer-- Marcelle WahbaConsular Officer--Cynthia StockbridgeThe US Embassy in Cyprus is located at Therissos Street and Dositheos Street,Nicosia;  US mailing address: PSC 815, FPO-AE 09836-0001. Tel. [357] (2)465151 through 465155; Telex 4160 AMEMY CY ;  Fax: [357] (2) 459-571.Travel NotesClimate and customs:  Climate is comparable to the southern Atlantic states.Clothing and shoe requirements are similar to those in Washington, DC.December through March are rainy; summer temperatures often exceed 380C(1000F) with low humidity. Americans do not need a visa to enter Cyprus.Health:  Medical facilities are available.  Tapwater is safe.Telecommunications:  Telephone and telegraph communications within Cyprusand to international points are good.   There are few telephone linksbetween north and south Cyprus. Nicosia is seven time zones ahead ofeastern standard time.Transportation:   Larnaca International and Paphos International Airports,and the ports of Limassol, Larnaca, and Paphos are the only legal ports ofentry and exit to the Republic of Cyprus.  Ships carrying cargo and passengerscall regularly at Larnaca and Limassol, the principal southern ports.  Ercanand Gecitkale Airports in the Turkish Cypriot area are served by TurkishAirlines but are not recognized by the International Civil AviationOrganization.Visitors arriving in the north are not permitted to visit the Republic ofCyprus in the south.  Visitors arriving in the south from abroad can oftenobtain permission from the Government of Cyprus and from Turkish Cypriotofficials to visit the north, but travelers with luggage and those suspectedof intending to depart Cyprus from the north probably will be prohibitedfrom crossing. The American Embassy in Nicosia is able to advise travelersof current requirements. Buses and taxis are the only forms of local publictransportation. There are no trains on the island.  In Nicosia, good taxiservice is always available at moderate prices.Published by the United States Department of StateBureau of Public AffairsOffice of Public CommunicationWashington, DCMarch 1992Editor:  Deborah Guido-O'GradyDepartment of State Publication 7932 -- Background Notes Series -- Thismaterial is in the public domain and may be reprinted without permission;citation of this source is appreciated.For sale by the Superintendent of Documents, US Government Printing Office,Washington, DC  20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  CUBA (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of CubaFOREIGN RELATIONSCuba's once-ambitious foreign policy has been scaled back and redirected as a result of economic hardship and the end of the East-West conflict.Cuba aims to find new sources of trade, aid, and foreign investment, and to promote opposition to U.S. policy toward Cuba, especially the trade embargo and the 1992 Cuban Democracy Act.  Cuba has relations with nearly 140 countries and has civilian assistance workers--principally medical--in more than 20 nations.Cuba has largely abandoned its support for revolutionary movements.  When it first came to power, the Castro Government supported the spread of revolution by aiming to reproduce throughout Latin America its rural-based guerrilla warfare experience.  In 1959, Cuba aided armed expeditions against Panama, the Dominican Republic, and Haiti.  During the 1960s, Guatemala, Colombia, Venezuela, Peru, and Bolivia all faced serious Cuban-backed attempts to develop guerrilla insurgencies.  These movements failed to attract popular support.  The most conspicuous failure occurred in 1967.  Castro had sent Che Guevara--a charismatic revolutionary hero from Argentina and symbol of Cuban efforts to spread the revolution throughout Latin America--to lead an insurgency in Bolivia.  Guevara's efforts were opposed by both the peasantry and the Bolivian Communist Party.  Guevara was killed, and the insurgency collapsed.Cuba's support for Latin revolutionaries, along with the openly Marxist-Leninist character of its government and its alignment with the U.S.S.R., contributed to its isolation in the hemisphere.  In January 1962, the Organization of American States (OAS) excluded Cuba from active participation.  Two years later, OAS foreign ministers resolved that member nations should have no diplomatic and consular relations with Cuba and should suspend all trade and sea transportation.In the late 1960s, Cuba de-emphasized its policy of supporting revolutions abroad and began to pursue normal government-to-government relations with other Latin American nations.  Covert assistance to some guerrilla groups continued, however, well into the 1980s.  By the mid-1970s, Cuba had re-established diplomatic relations with a number of countries in the region.  In 1975, the OAS lifted comprehensive sanctions and deferred to individual member states the option of diplomatic and trade relations with Cuba.Throughout the 1970s and 1980s, Cuba expanded its military presence abroad--deployments reached 50,000 troops in Angola, 24,000 in Ethiopia, 1,500 in Nicaragua, and hundreds more elsewhere.  In Angola, Cuban troops, supported logistically by the U.S.S.R., backed the Popular Movement for the Liberation of Angola (MPLA), one of the movements competing for power after Portugal granted Angola its independence.Cuban forces played a key role in Ethiopia's war in the Ogaden region against Somalia, 1977-78, and remained there in substantial numbers as a garrison force for a decade.  Cubans served in a non-combat advisory role in Mozambique and the Congo.  Cuba also used the Congo as a logistical support center for Cuba's Angola mission.In the late 1980s, Cuba began to pull back militarily.  Cuba unilaterally removed its forces from Ethiopia; met the timetable of the 1988 Angola-Namibia accords by completing the withdrawal of its forces from Angola before July 1991; and ended military assistance to Nicaragua following the Sandinistas' 1990 electoral defeat.  In January 1992, following the peace agreement in El Salvador, Castro stated that Cuban support for insurgents was a thing of the past.U.S.-CUBAN RELATIONSAfter Castro came to power, bilateral relations deteriorated sharply, primarily because of the new regime's imposition of a repressive dictatorship, its uncompensated nationalization of American property valued at about $1.8 billion in 1962, and its support for violent subversive groups.  The United States broke diplomatic relations on January 3, 1961, after the Cuban Government demanded that the U.S. embassy in Havana be reduced to a skeleton staff.  In 1962, the United States imposed a comprehensive economic embargo against Cuba.  Tensions between the two governments peaked during the abortive "Bay of Pigs" invasion by anti-Castro Cubans supported by the United States in April 1961 and the October 1962 missile crisis.Following Cuba's de-emphasis of the export of revolution in the 1970s, the United States did not oppose the OAS decision to make discretionary the application of sanctions against Cuba and began to discuss normalization of relations with Cuba.  Talks began but were halted when Cuba launched a large-scale intervention in Angola.  Subsequent efforts undertaken to improve relations led to the establishment of interests sections in the two capitals on September 1, 1977.  Currently, the U.S. interests section in Havana and the Cuban interests section in Washington, DC, are under the protection of the Swiss embassy.New differences in the late 1970s and early 1980s--Cuba's failure to withdraw troops from Angola, intervention in Ethiopia, increasing subversion in the Caribbean Basin and Central America, the delivery of sophisticated Soviet weaponry, and the Cuban Government's deliberate efforts to violate U.S. sovereignty and immigration laws through a mass exodus of Cubans in 1980 known as the "Mariel boatlift"--eroded the possibility of improvement in bilateral relations.Quiet efforts to explore the prospects for improving relations were initiated by the United States in 1981-82; however, the Cuban Government refused to alter its conduct with regard to U.S. concerns about Cuba's support for violent political change and its close political and military cooperation with the Soviet Union.  The liberation of Grenada by the United States and regional allies in 1983 and the expulsion of Cuban forces based there was a setback for Cuba's plans to expand its regional sphere of influence.In 1984, the United States and Cuba negotiated an agreement to normalize immigration and return to Cuba the "excludables" (criminals or insane persons who, under U.S. law, are not allowed to reside in the United States) who had arrived during the 1980 Mariel boatlift.  Cuba suspended this agreement in May 1985 following the U.S. initiation of the Radio Marti by the Voice of America (VOA), which broadcasts news to Cuba.  The 1984 agreement, reinstated in November 1987, allowed normal migration to occur between the two countries.  In March 1990, VOA began transmitting TV Marti to Cuba.  Since its inception, Cuba has jammed TV Marti and blocked Radio Marti on the AM band.  Radio Marti on short wave has a large audience.With the peace settlement in El Salvador and establishment of democracy in Nicaragua, U.S. concerns focused on Cuban resistance to democratic reforms and its denial of human rights--two major obstacles to improved bilateral relations.  In May 1991, President Bush said that if Cuba held free and fair elections under international supervision, respected human rights, and stopped subverting its neighbors, U.S.-Cuban relations could improve significantly.  In October 1992, the Cuban Democracy Act set forth U.S. policy toward a free and democratic Cuba.  President Clinton has repeatedly expressed his support for the Cuban Democracy Act.Its principal provisions ban most U.S. subsidiary trade with Cuba and exclude any vessel which stops in Cuba from entering U.S. ports for 180 days.  It also provides for humanitarian donations to non-governmental organizations in Cuba; since its passage, more than $50 million worth of humanitarian goods have been licensed for export to Cuba.  Improved telecommunications are also called for.  In October, the U.S. Federal Communications Commission (FCC) approved applications of five U.S. carriers to provide direct telecommunications service between the U.S. and Cuba.  A sixth company with previously issued FCC licenses also concluded an operating agreement with the Cuban Government and plans to resume service.  Despite existing tensions, the United States continues to discuss areas of mutual concern, such as immigration, with the Government of Cuba.  The two governments concluded a migration agreement on September 9 that reflected their mutual interest in normalizing migration procedures and included measures to ensure that migration between the two countries is safe, legal, and orderly.Interests SectionsHavana:  U.S. Interests Section, Calzada between L and M, Vedado (tel.  33-3551 through 33-3559).Principal Officer--Joseph G. SullivanDeputy Principal Officer--Vincent MayerConsul--Sandra SalmonPublic Affairs Adviser--Gene BiglerWashington, DC:  Cuban Interests Section, 2630 16th Street, NW, Washington, DC  20009  (tel.  [phone]).Principal Officer--Alfonso Fraga PerezDeputy Principal Officer--Miguel Nunez.  (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  CUBAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of CubaPROFILEGeographyArea:  110,860 sq. km. (44,200 sq. mi.); about the size of Pennsylvania.  Capital:  Havana (pop. 2 million).  Other major cities--Santiago de Cuba, Camaguey, Santa Clara, Holguin, Guantanamo, Matanzas, Cienfuegos, Pinar del Rio.  Terrain:  Flat or gently rolling plains, hills, mountains up to 2,000 meters (6,000 ft.) in the southeast.  Climate:  Tropical, moderated by trade winds; dry season (November-April); rainy season (May-October).PeopleNationality:  Noun--Cuban(s); adjective--Cuban.  Population:  10.8 million; 70% urban, 30% rural.  Avg. annual growth rate:  1%.  Ethnic groups:  Spanish-African mixture.  Language:  Spanish.  Education:  Compulsory--6 years.  Attendance--92% (ages 6-16).  Literacy--99%.  Health:  Infant mortality rate--12/1,000. Life expectancy--77 yrs. for women, 74 yrs. for men.  Work force:  3.6 million.  Government and services--30%.  Industry--22%.  Agriculture--20%.  Commerce--11%.  Construction--11%.  Transportation and communications--6%.GovernmentType:  Communist state; current government assumed power January 1, 1959.  Independence:  May 20, 1902.  Constitution:  February 24, 1976.Branches:  Executive--president, council of ministers.  Legislative--National Assembly of People's Government.  Judicial--People's Supreme Court.Political party:  Cuban Communist Party (PCC).  Suffrage:  All citizens age 16 and older, except those who have applied for permanent emigration.  National Assembly elections were held in 1993.Administrative subdivisions:  14 provinces, including the city of Havana, and one special municipality (Isle of Youth).EconomyGross social product (this economic measure, in which Cuba publishes its statistics, is not convertible to GNP/GDP):  $16 billion (1993).  Real annual growth rate:  -10% (1993).  Per capita income (est.):  $1,500.Natural resources:  Nickel, cobalt, iron ore, copper, manganese, salt, timber.Agriculture:  Products--sugar, citrus and tropical fruits, tobacco, coffee, rice, beans, meat, and vegetables.Industry:  Types--sugar and food processing, oil refining, cement, electric power, light consumer and industrial products.  Trade:  Exports--$1.5 billion:  Sugar and its by-products, nickel, seafood, citrus, tobacco products, rum.  Major markets--Russia 27%, Canada 9%, Ukraine 5%, China 5%, Spain 5%.  Imports--$1.8 billion:  capital goods, industrial raw materials, food, petroleum, consumer goods.  Major suppliers--Spain 11%, China 10%, France 7%, Venezuela 7%, Mexico 7%, Canada 6%.Official exchange rate:  1 Cuban peso=U.S.$1 for trade.  nPEOPLECuba is a multi-racial society with a population of mainly Spanish and African origins.  The largest organized religion is the Roman Catholic Church.  Officially, Cuba has been an atheist state for most of the Castro era.  However, a constitutional amendment adopted on July 12, 1992, changed the nature of the Cuban state from atheist to secular, enabling religious believers to belong to the Cuban Communist Party (PCC).HISTORYBefore the arrival of Columbus in 1492, Cuba was inhabited by three groups--Siboneys, Guanahabibes, and Tainos--the last of which introduced agriculture, including maize and tobacco, to the island.  As Spain developed its colonial empire in the Western Hemisphere, Havana became an important commercial port.  Settlers eventually moved inland and established sugar cane and tobacco plantations.  As the native Indian population died out, African slaves were imported to work the plantations.  A 1774 census in Cuba recorded 96,000 whites, 31,000 free blacks, and 44,000 slaves.  Slavery was abolished in 1886.Cuba was the last major Spanish colony to gain independence.  In a movement which began in 1850, Cuban planters financed and led several expeditions against Spanish garrisons.  In 1868, the 10-years' war for independence began under the leadership of Carlos Manuel de Cespedes, whom the Cubans consider to be the father of their country.  Jose Marti, Cuba's greatest national hero, initiated plans for a general uprising 24 years later.  In 1895, Marti announced the Grito de Baire ("Call to arms from Baire"), heralding the beginning of Cuba's final struggle for independence.  Shortly after, he died in battle.The United States entered the conflict on the side of the revolutionaries when the U.S.S. Maine, anchored in Havana Harbor to provide protection for U.S. citizens, was sunk by an explosion of unknown origin on February 15, 1898.  On December 10, 1898, Spain signed the Treaty of Paris, ending the Spanish-American War and relinquishing control of Cuba to the United States.  The United States administered the island for three years.  Independence was proclaimed on May 20, 1902, although the United States retained the right to intervene to preserve Cuban independence and stability under the Platt Amendment, which established conditions mandated by Congress for the withdrawal of U.S. troops from Cuba.In 1934, the amendment was repealed in keeping with the Roosevelt Administration's "Good Neighbor" policy.  Later the same year, the United States and Cuba reaffirmed by treaty the 1903 agreement which leased the Guantanamo Bay naval base to the United States.  This agreement remains in force today and can only be terminated by mutual agreement or abandonment by the United States.Cubans elected Gen. Gerardo Machado as President in 1924, but he forcibly extended his rule until a popular uprising deposed him in 1933.  Fulgencio Batista, a sergeant in the army, led the revolt and established himself as Cuba's dominant leader for more than 25 years.  He ruled through a series of presidents and was himself elected in 1940 for four years.  In March 1952, shortly before regularly scheduled elections, Batista seized the presidency in a bloodless coup.On July 26, 1953, an armed opposition group led by Fidel Castro attacked the Moncada army barracks at Santiago de Cuba.  The attack was unsuccessful, and many, including Castro, were captured and imprisoned.  Castro, released by Batista under a May 1955 amnesty, went into exile in Mexico, where he formed a revolutionary group, the "26th of July Movement."On December 2, 1956, Castro and  81 of his followers landed in eastern Cuba aboard the yacht Granma.  All but 12 were soon captured, killed, or dispersed.  From this nucleus, Castro's forces eventually grew to several thousand.  While other groups also actively opposed Batista, Castro's "26th of July" forces became predominant when Batista fled on January 1, 1959.  Castro's assumption of power was acclaimed in Cuba and abroad because he seemed to embody the hopes of most Cubans for a return to democratic government and an end to graft and corruption.Within months, however, Castro moved to consolidate his power and to set up an authoritarian government.  Many leaders of the opposition to Batista were executed or sentenced to lengthy prison terms for opposing Castro's policies.  Moderates were forced out of the government, and hundreds of thousands of Cubans fled the island.During an April 1959 visit to Washington, DC, Castro addressed concerns about a reported leftist tilt to his regime by saying, "We are against all kinds of dictators, whether of a man, or a country, or a class, or an oligarchy, or by the military.  That is why we are against communism."On December 2, 1961, Castro publicly declared himself a Marxist-Leninist.  Representative democracy was abolished, effective freedom of expression ended, and all opposition political activity was soon terminated.Cuban-Soviet RelationsTies between Cuba and the Soviet Union were close from 1960 until perestroika and the subsequent demise of the U.S.S.R.  Cuba received critical economic and military assistance, which kept its economy afloat and enabled it to maintain a disproportionately large military establishment.  However, as the former U.S.S.R.'s economy experienced increasing problems, its reliability as a trade and aid partner for Cuba declined.  Cuban-Soviet ties led to a direct confrontation between the United States and the Soviet Union in 1962 over the installation of nuclear-equipped missiles in Cuba, resolved only when the U.S.S.R. agreed to withdraw the missiles and other offensive weapons.  In late 1970, the possibility that the Soviet Union would establish submarine bases in Cuba became an issue.  However, they were never established.  In 1971, President Nixon affirmed the existence of an understanding between the United States and the U.S.S.R. that the Soviet Union would not install any offensive weapons systems in Cuba nor operate such systems from there, including sea-based systems.Cuba's special relationship with the Soviet Union ended with the dissolution of the Soviet Union in 1991.  In April 1989, then-U.S.S.R. President Gorbachev spoke out against the "export of revolution."   With the end of the Cold War, Russia reduced military forces worldwide.  Former Soviet military personnel in Cuba, numbering around 15,000 in 1990, were withdrawn by 1993.  Russia still maintains a signal intelligence-gathering facility, the largest of the former U.S.S.R., at Lourdes.  It is staffed by 2,100 technicians and monitors U.S. civilian and military communications.GOVERNMENTCuba is a totalitarian state dominated by Fidel Castro, who is president of the council of state and the council of ministers, First Secretary of the Communist Party (PCC), and commander-in-chief of the armed forces.  Castro exercises control over nearly all aspects of Cuban life through a network of directorates ultimately responsible to him through the Cuban Communist Party.From January 1959 until December 1976, Castro ruled by decree.  The 1976 constitution, extensively revised in July 1992, provides for a system of government in which the PCC is "the highest leading force of the society and state."  In addition to Fidel Castro and his brother Raul Castro, the center of  party power is the 24-member politburo.  There are 205 members in the central committee.Executive and administrative power is vested in the council of ministers; its president since 1959, Fidel Castro, is head of government.  There are 10 other vice presidents on the council of ministers.  Legislative authority rests with the National Assembly of People's Government, which meets for about five days per year.  When the assembly is not in session, it is represented by the council of state, of which Fidel Castro is the president with Raul Castro as first vice president.The PCC is Cuba's only legal political party.  It monopolizes all government positions, including judicial offices.  All pre-1959 political parties and political organizations have been abolished.  Though not a formal requirement, party membership is a de facto prerequisite for high-level official positions and professional advancement in most areas, although non-party members have been elected to the National Assembly.  Cuba's trade unions, women's federation, and youth and other mass organizations are controlled by the government and party.  These organizations attempt to extend Cuban Government and PCC control over each citizen's daily activities at home, work, and school.The Cuban Communist Party is composed of the pre-revolution communist party which, along with two other political groups supporting the revolution, was absorbed into a new political entity formed by Castro in July 1961.  Further refinements resulted in the emergence in late 1965 of the PCC.  The party's politburo and central committee together include most of the country's military and civilian leaders.In July 1992, the National Assembly convened for three days to amend the 1976 constitution.  Changes included abolishing references to the former Soviet bloc; outlawing discrimination for religious beliefs; permitting foreign investment; giving Fidel Castro new emergency powers; and allowing direct elections to the National Assembly, although candidates will still be approved by quasi-governmental bodies, and campaigns will not be allowed.Cubans do not possess equal protection under the law, the right to choose freely government representatives, freedom of expression, freedom of peaceful assembly and association, or freedom to travel to and from Cuba without restriction.  The government and party control all electronic and print media.Cuba has no independent judiciary.  Although the constitution specifies that the courts shall be "a system of state organs independent of all others," it explicitly subordinates the judiciary to the National Assembly and, thus, to the council of state.  The People's Supreme Court is the highest judicial body.  Due process safeguards can be circumvented constitutionally, and defense attorneys face severe disadvantages under the Cuban judicial system.The ministry of interior ensures political and social conformity as well as internal security:  It operates border and police forces, orchestrates public demonstrations, investigates evidence of non-conformity, regulates migration, and maintains pervasive vigilance through a network of informers and 80,000 block committees (Committees for the Defense of the Revolution--CDR).In practice, the top leadership determines the degree to which civil liberties are exercised.  In March 1994, member states of the UN Human Rights Commission (UNHRC) voted 24-9 (with 20 abstentions) to approve a resolution condemning Cuba's systematic violation of human rights and its failure to cooperate with the Secretary General's special rapporteur.  Cuba refused to cooperate with several UNHRC resolutions creating special envoys to investigate Cuba's human rights situation.  Human rights activists continue to be the subject of arbitrary arrest, court procedures that violate even Cuban constitutional guarantees, and lengthy prison sentences based on the flimsiest of evidence.National SecurityUnder Castro, Cuba has become one of the most highly militarized societies in the world.  In Latin America, only Brazil, with a population more than 13 times that of Cuba, has a larger military.  In 1958, in the middle of an insurrection, Cuba's armed forces numbered 46,000.  Today, the Revolutionary Armed Forces contain about 270,000 active duty and ready reserves--235,000 army, 17,000 air force/air defense, and 13,500 navy, plus some military units under the ministry of interior.  More than 1 million Cubans belong to the country's two paramilitary organizations, the territorial militia troops and the youth labor army.Cuba's military establishment is considered to be one of the most modern in the region.  From 1975 until the late 1980s, massive Soviet military assistance enabled Cuba to upgrade its military capabilities and project power abroad.  The tonnage of Soviet military deliveries to Cuba throughout most of the 1980s exceeded deliveries in any year since the military build-up during the 1962 missile crisis.  In 1990, Cuba's air force, with about 150 Soviet-supplied fighters, including advanced MiG-23 Floggers and MiG-29 Fulcrums, was probably the best equipped in Latin America.  The Cuban army has more than 1,000 Soviet-supplied T-62 and T-54/55 main battle tanks.Cuban military power has been sharply reduced by the loss of the special relationship between the former Soviet Union and Cuba.  Lack of fuel has resulted in reduced training and military exercises.  Lack of spare parts and new materiel has resulted in the mothballing of planes, tanks, and other military equipment.  Due to the end of the Cold War, Cuban forces are no longer used as a surrogate for Soviet geopolitical objectives.Principal Government OfficialsPresident, Council of State and Council of Ministers; First Secretary of the Communist Party; and Commander in Chief--Fidel CastroFirst Vice President, Council of State and Council of Ministers; Second Secretary of the Communist Party; General of the Army and Minister of Revolutionary Armed Forces (FAR)--Raul CastroMinister of Foreign Relations--Roberto RobainaAmbassador to the United Nations--Fernando Remirez de Estenoz BarcielaECONOMYSince the late 18th century, the Cuban economy has been dominated by sugar production and has prospered or suffered due to fluctuations in sugar prices.  The Castro regime has been unable to break that pattern, and sugar accounts for more than half of export earnings.  Cuba's famous tobacco provides a second source of export earnings, but it is also subject to market forces.  Cuba has never diversified from its basic single-crop economy despite some development of natural resources such as nickel, iron ore, copper, and timber.For more than 30 years, the defects in Cuba's economy and the effects of the economic embargo imposed by the United States in 1962 were at least partially offset by heavy subsidies from the former Soviet Union and favorable trade relationships with the countries of the former Soviet bloc.  But those supports ended with the collapse of the Soviet bloc in the late 1980s and with the demise of the Soviet Union in 1991.Combined with Cuba's failure to undertake needed reforms, this produced an unprecedented economic crisis.  Its economy is estimated to have declined by 40% from 1989 through 1993.The economic prospects are not good, largely because of the Castro regime's decision to maintain the state's highly centralized control over economic decisionmaking, the lack of inputs for industry, and the "Special Period in Peacetime."  This was created in 1990 to strictly ration food, fuel, and electricity.  It gives priority to domestic food production, development of tourism, and biotechnology production.Responsibility for running the economy and for economic policy rests with the council of state.  Basic public services are provided by the state, either free of charge or for minimal fees.  Access to education generally is adequate, but urban housing and medical care have deteriorated, as have communications and transportation.  The central planning board, working closely with the Banco Nacional de Cuba, directs nearly all economic activity and sets prices and targets for production, imports, and exports.  The state owns and operates most of Cuba's farms and all industrial enterprises.  State farms occupy about 70% of farmland; peasant cooperatives for about 20%; and private farms about 10%.  Cuba's manufacturing sector emphasizes import substitution and provision of basic industrial materials.  In recent years, many Cuban firms have closed or reduced production because of shortages of foreign exchange and limited access to spare parts and imported components.Castro's efforts to diversify the economy and reduce Cuba's dependence on sugar exports in the country's international trade have been unsuccessful.  Sugar continues to account for about 55% of export earnings, although sugar production and exports have declined over the past five years.  Cuba also specializes in the production of sugar by-products.  Tobacco and tobacco products traditionally have been Cuba's second-largest agricultural export.  Other important crops include coffee and citrus.Light industry, electronics, pharmaceuticals, and biotechnology are promoted.  Cuba's light industrial sector, which grew in the 1970s and 1980s, has declined because of a lack of spare parts and components.  Hard hit are the electrical power, food processing, cigar, chemical, petroleum, textile, and metallurgy industries.  Cuba has invested large sums in developing an advanced biotechnology industry.  While it has had some success, its earnings have not reached levels hoped for by the government.Cuba has three large oil refineries--two expropriated from U.S. firms and a recently completed refinery at Cienfuegos, built with Soviet technology and capital.  The two older refineries are operating well below capacity, while the one at Cienfuegos has never opened.  A Mexican company entered into a joint partnership with the Cuban Government to refurbish and operate the refinery at Cienfuegos.  Traditionally, Cuba's mining sector has accounted for a significant part of export earnings.  The country's nickel reserves are the fourth-largest in the world.  The ore is processed on the island in two formerly U.S.-owned plants at Nicaro and Moa Bay.  Plants are also located at Punta Gorda and Las Camariocas.Much of Cuba's transportation network was developed in pre-revolutionary Cuba to serve the sugar industry.  The road network exceeds 30,000 kilometers (19,000 mi.), of which about half is paved.  The island has a 14,640 kilometer (5,600 mi.) railway system.  Buses are found throughout urban areas but are notoriously crowded and in disrepair.  Public transport has been crippled by the lack of fuel.  A significant portion of rural public transport is provided by horse and buggy, while bicycles largely have replaced private vehicles in urban areas.  Havana is the most important of the country's 11 major ports.  The national airline, Cubana de Aviacion, serves major cities in Cuba and  a shrinking number of foreign cities in Europe and Latin America.  Aero-Caribbean, a charter company formed in 1982, provides unscheduled passenger and cargo service to the Caribbean Basin and Europe.During the 1980s, more than 80% of Cuba's external trade was with the former Soviet bloc, of which the Soviet share normally was more than 70%.  The Soviet Union alone imported 80% of all Cuban sugar and 40% of all Cuban citrus.  Currently, Cuban trade with Russia is only a fraction of its trade with the former Soviet Union, which had subsidized Cuban oil imports.  Oil imports have dropped from 13 million tons (from the former Soviet Union) in 1989 to about 3 million tons in 1993 from Russia.  Cuba imported about 5 million tons from all sources in 1993.  An oil-for-sugar barter agreement with Russia was completed in June 1992.  Russia has ended all trade subsidies to Cuba.In November 1992, Cuba and Russia announced that agreements for trade, scientific, and maritime relations had been signed.  Among the cooperative programs discussed was how to continue financing and construction of the Juragua, Cuba, nuclear power plant, begun in 1983 with the former Soviet Union.  Completion of the power plant is a Cuban priority, but construction lagged during the 1980s and fell further behind schedule due to the dissolution of the Soviet Union.  In 1992, Cuba suspended work because it could not afford the cost of Russian technical assistance.  However, the November 1992 agreement between the two states would result in completion of the plant if a financier can be found for the nuclear safety and control equipment.Cuba is not a signatory to the Nuclear Non-Proliferation Treaty (NPT), and, although Cuba has announced its intent to sign the Treaty of Tlatelolco--a Latin American regional non-proliferation regime--it is not yet a signatory.  Cuba is subject to International Atomic Energy Agency (IAEA) safeguards normally applied to non-NPT parties.  Cuba has entered into an agreement with the IAEA to apply safeguards to individual facilities, including the Juragua power plant.  The reactors that would be installed are of the VVER-400 type, an advanced model of the Soviet pressurized water reactor.  They are not the same as those installed at Chernobyl.  In addition, the Cuban reactors are housed in a reinforced concrete containment dome.With the loss of trade and aid from the former Soviet bloc, Cuba has attempted to attract foreign investment and Western buyers for its sugar and nickel, as well as for its biotech products.  Except in tourism, Cuba has had limited success in attracting investors because of the deterioration of the economy, its unpaid debt to Western countries, and the lack of clear titles to expropriated property.  In 1993, tourism generated $530 million, principally from European and Canadian tourists.  Tourism has increased more than  20% annually for the last several years.  Since July 1986, Cuba has not serviced its roughly $7-billion debt owed to Western, mainly governmental, creditors.  Consequently, Cuba has not received rescheduling either from the Paris Club (an association of international governmental lenders) or from private institutions.  Cuba is not servicing its debts to Russia--perhaps as high as $20 billion--or to former Soviet bloc countries."Rectification" PolicyIn April 1986, Castro called for "rectification of errors and negative tendencies" and mandated the observance of strict Marxist orthodoxy in running the economy.   "Rectification" emphasizes centralized direction over market forces and moral and ideological, as opposed to material, incentives to spur productivity.  It calls upon Cubans to make greater sacrifices to further the collective good.In 1986, as a part of the "rectification" effort, the government closed farmers' markets through which some people had been able to sell produce grown on their own garden plots at uncontrolled prices since 1980.  It also sought to eliminate many bonuses and overtime pay for workers.  The Castro Government encourages voluntary labor, in the form of "micro-brigades" and "contingents," especially in the construction sector, and has tried to reduce corruption and black marketeering."Special Period"In October 1990, Castro announced that Cuba had entered a "special period in time of peace" and that the economy would function as if in time of war until the crisis had passed.  Cubans are feeling the effects of the end of Havana's special relationship with Moscow.  Most goods are now rationed, and many previously imported from the Soviet Union simply have disappeared.  Total Cuban imports in 1993 were less than 25% of the 1989 total.  Economic production may have decreased by more than 40% from 1989 to 1993.Underemployment, a chronic problem, has worsened with the idling of thousands of industrial workers whose jobs depended on inputs from abroad.  Labor has been shifted to agriculture to compensate for fuel and machinery shortages affecting food and production.  Education and medical care generally are accessible, although both have been affected by nationwide austerity.  Many pharmaceutical products are in short supply or unavailable.  Urban housing, as well as transportation and communications services, remain seriously inadequate.  Havana's bus system, for example, has reduced service by more than 40% since 1989.In response to deteriorating economic conditions, the Cuban Government enacted several limited economic reforms in 1993, including the legalization of foreign currency holdings and the opening to self-employment in selected service occupations.  However, the Cuban Government subsequently placed significant restrictions on self-employment.  In 1994, a number of other measures were introduced, including the return of free farmers' markets and the establishment of taxes on some earnings.</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  COTE D'IVOIREOfficial Name:  Republic of Cote d'IvoirePROFILEGEOGRAPHYCote d'Ivoire is located on the south side of the West African bulge.Its 550-kilometer (340-mi.) coastline on the Gulf of Guinea has heavysurf and no natural harbors.  A series of coastal lagoons fringes thesoutheast.  The nation's capital was legally changed toYamoussoukro in 1983, although the seat of government remains inAbidjan.Abidjan is the commercial and population center of the country andalso is the terminus of the 1,150-kilometer (716-mi.) railway thatconnects Ouagadougou, capital of Burkina Faso, with the Gulf ofGuinea.  Early 20th-century attempts to dig a canal through thesandbar blocking the Ebrie lagoon from the sea were unsuccessful,but in 1950 the Vridi Canal, begun in 1936, was completed.  Thecanal opened the Port of Abidjan to deep-draft vessels, and trafficincreased by 50% almost immediately.  A second deepwater port,San Pedro, was dedicated in 1972.In the western half of the country, dense forest extends to the sea;scrub savanna covers a narrow strip stretching from Fresco to theGhana frontier.  A lush tropical forest extends inland to a line abouthalfway between Dimbokro and Bouake; significant cashcrops-coffee, cocoa, tropical woods, and bananas-are grown there.North of the forest lies an inland savanna zone of sandy soils, wherevegetation is sparse and the landscape unbroken.  Cotton is a keycash crop grown here.  Only the Guinea Highlands in the northwest,which rise 1,460 meters (4,800 ft.) above sea level, break themonotony of the inland plain.The southern part of  Cote d'Ivoire falls into the tropical zone, withhot, humid weather and heavy rains.  Daily temperatures vary froma minimum of 22 C (72 F) to a maximum of 32 C (91 F), and theheaviest rains generally fall between mid-April and mid-July, with ashorter rainy season in October and November.  As one movesnorth from the coast, the weather gets drier and the climate growsmore savanna-like.  Temperature differences become more extreme,with nighttime temperatures in January dipping as low as 12 c (54 F)and daytime temperatures in the summer rising to above 40 C (wellinto the hundreds).PEOPLECote d'Ivoire's more than 60 ethnic groups usually are classified intoseven principal divisions-Akan, Krou, Lagoon, Nuclear Mande,Peripheral Mande, Senoufo, and Lobi.  The Baoule, in the Akandivision, is probably the largest single subgroup, with perhaps 20%of the overall population.  They live in the central region aroundBouake.  The Bete, in the Krou division, and the Senoufo in the northare the second and third largest groups, with roughly 18% and 15%of the national population, respectively.  Most of the principaldivisions have centers in one of the neighboring countries.Of the more than 5 million non-Ivorian Africans living in Cote d'Ivoire,one-third to one-half are from Burkina Faso;  the rest are fromGhana, Guinea, Mali, Nigeria, Benin, Senegal, Liberia, andMauritania.  A non-African expatriate community includes roughly20,000 French and at least 100,000 Lebanese.In 1960, 22% of school-aged children attended classes; in 1981,76%.HISTORYThe early history of Cote d'Ivoire is virtually unknown, although it isthought that a neolithic culture existed there.  France made its initialcontact with Cote d'Ivoire in 1637, when missionaries landed atAssinie near the Gold Coast (now Ghana) border.  Early contactswere limited to a few missionaries because of the inhospitablecoastline and settlers' fear of the inhabitants.In the 18th century, the country was invaded by two related ethnicgroups-the Agnis, who occupied the southeast, and the Baoules,who settled in the central section.  In 1843-44, Adm.Bouet-Williaumez signed treaties with the kings of the Grand Bassamand Assinie regions, placing their territories under a Frenchprotectorate.  French explorers, missionaries, trading companies,and soldiers gradually extended the area under French control inlandfrom the lagoon region.  However, pacification was not accomplisheduntil 1915.French PeriodCote d'Ivoire officially became a French colony in 1893.  CaptainBinger, who had explored the Gold Coast frontier, was named thefirst governor.  He negotiated boundary treaties with Liberia and theUnited Kingdom (for the Gold Coast) and later started the campaignagainst Almany Samory, a Malinke chief, who waged war against theFrench until 1898.From 1904 to 1958, Cote d'Ivoire was a constituent unit of theFederation of French West Africa (now Mauritania, Senegal, Guinea,Mali, Niger, Benin, Burkina, and Cote d'Ivoire).  It was a colonyunder the Third French Republic and an overseas territory under theFourth Republic.  Until the period following World War II,governmental affairs in French West Africa were administered fromParis through governors general and territorial governors.  France'spolicy in West Africa was reflected mainly in its philosophy of"association," meaning that all Africans in Cote d'Ivoire were officiallyFrench "subjects" without rights to representation in Africa or France.A harsh and racially conscious Vichy regime remained in control until1943, when members of Gen.  Charles de Gaulle's provisionalgovernment assumed control of all French West Africa.  TheBrazzaville conference in 1944, the first Constituent Assembly of theFourth Republic in 1946, and France's gratitude for African loyalty toFree France during World War II, led to far-reaching governmentalreforms in 1946.  French citizenship was granted to all African"subjects," the right to organize politically was recognized, andvarious forms of forced labor were abolished.A turning point in relations with France was reached with the 1956Overseas Reform Act (Loi Cadre), which transferred a number ofpowers previously reserved for metropolitan administrators to electedterritorial governments in French West Africa and removed remainingvoting inequalities.IndependenceIn December 1958, Cote d'Ivoire became an autonomous republicwithin the French community as a result of a referendum thatbrought community status to all members of the old Federation ofFrench West Africa except Guinea, which had voted againstassociation.  Cote d'Ivoire became independent on August 7, 1960,and permitted its community membership to lapse.Cote d'Ivoire's contemporary political history is closely associatedwith the career of Felix Houphouet-Boigny, president of the republicand leader of the Parti Democratique de la Cote d'Ivoire (PDCI).  Hewas one of the founders of the Rassemblement DemocratiqueAfricain (RDA), the leading preindependence interterritorial politicalparty in French West Africa.  The RDA established constituent unitsin all French West African territories except Mauritania, as well as inthe Congo (Brazzaville), Chad, Gabon, and Cameroon.Houphouet-Boigny first came to national political prominence in 1944as founder of the Syndicat Agricole Africain, an organization that wonimproved labor conditions for African farmers and formed a nucleusfor the PDCI.  After World War II, he was elected by a narrow marginto the first Constituent Assembly.  Representing Cote d'Ivoire in theFrench National Assembly from 1946 to 1959, he devoted much ofhis effort to interterritorial political organization and furtheramelioration of labor conditions.  After his 13-year service in theFrench National Assembly, including almost 3 years as a minister inthe French Government, he became Cote d'Ivoire's first primeminister in April 1959, and the following year was elected its firstpresident.In May 1959, Houphouet-Boigny reinforced his position as adominant figure in West Africa by leading Cote d'Ivoire, Niger, UpperVolta (Burkina), and Dahomey (Benin) into the Council of theEntente, a regional organization promoting economic development.(Togo joined in 1966.) He has maintained that the only true road toAfrican solidarity is through step-by-step economic and politicalcooperation, recognizing the principle of nonintervention in theinternal affairs of other African states.GOVERNMENTThe constitution provides for a strong presidency within theframework of a separation of powers.  The executive is personifiedin the president, elected for a 5-year term by universal adult suffrage.The president is commander in chief of the armed forces, maynegotiate and ratify certain treaties, and may submit a bill to anational referendum or to the National Assembly.  A 1985constitutional amendment named the president of the NationalAssembly acting head of state in the event of a vacancy, andmandated that he oversee the holding of national elections within45-60 days to choose a new president.  The cabinet is selected byand is responsible to the president.The unicameral National Assembly is composed of 175 memberselected by direct universal suffrage for a 5-year term concurrentlywith the president.  It passes on legislation introduced by its ownmembers or by the president.The judicial system culminates in a Supreme Court.  A High Court ofJustice is competent to try government officials for major offenses.For administrative purposes, Cote d'Ivoire is divided into 34departments, each headed by a prefect appointed by the centralgovernment.  There are 135 communes, each headed by acompetitively elected mayor.Principal Government OfficialsPresident-Felix Houphouet-BoignyMinisters of State - Auguste Denise, Mathieu Ekra, Emile KeiBoguinardMinisters-Delegate - Paul Gui Dibo, Guy Alain Gauze, Balla ReitaOther MinistersDefense-Jean Konan BannyForeign Affairs-Simeon AkeInterior-Leon Konan KoffiEconomy and Finance-Moise Koumoue KoffiAgriculture, Waters, and Forests-Vincent-Pierre LokrouTechnical Education and Professional Training-Ange-Francois BarryBattestiPublic Works, Transportation, Building and UrbanDevelopment-Bamba VamoussaJustice, Keeper of the Seals-Noel Nemin Labor-Albert Vanie Bi TraInternal Security and the Struggle Against Drugs-Issouf KoneIndustry and Plan-Oumar DiarraPublic Health and Population-Frederic-Francois Alain EkraWomen's Affairs-Hortense Aka-AnghuiCommerce-Nicolas Kouandi AngbaCivil Service-Jean-Jacques BechioTourism-Jean-Claude DelafosseSocial Affairs, Youth, and Sports-Yaya OuattaraNational Education, Scientific Research & Culture-Alassane SalifN'DiayePreschool and Primary Education-Odette Kouame N'GuessanMines-Yed Esaie AngoranPosts and Telecommunications-Vincent Tioko DjedjeAnimal Production-Christopher GbohoCommunication-Auguste Severin MiremontAmbassador to the United States-Charles P. GomisAmbassador to the United Nations- Amara EssyCote d'Ivoire maintains an embassy in the United States at 2424Massachusetts Avenue N.W., Washington, D.C., 20008 (tel.[phone]).POLITICAL CONDITIONSCote d'Ivoire has enjoyed relative political stability sinceindependence.  President Houphouet-Boigny, a moderate leader ofconsiderable stature in Africa, uses direct personal dialogue withrepresentatives of various segments of Ivorian society.   The PDCI,the single ruling party, includes most elements of the country'spolitical life and serves as a forum for policy decisions and as aninstrument for ensuring the application of government policies.  Moreopen discussion of government policies has occurred since thecountry's first competitive elections for legislative, municipal, andlocal party positions in 1980.  National elections have been held atregular 5-year intervals since independence, and are next scheduledfor 1990.ECONOMYAgriculture has been the keystone of Cote d'Ivoire's developmentinto one of Africa's most prosperous economies, with annual realgrowth of nearly 7% from 1960 to 1980.  Cocoa, coffee, and tropicalwoods were key products and, despite impressive diversificationefforts, accounted for 47% of 1988 export earnings.  To reducedependence on this limited range of export goods, the governmenthas encouraged production of bananas, palm oil, cotton, pineapples,coconuts, rubber, and sugar; yields of cotton, sugar, and rubberhave increased significantly in recent years.  Self-sufficiency infoodstuffs is another government objective.From 1981 through 1984, the economy contracted in real terms.Over-ambitious state investment in the late 1970s, at a time of highcoffee and cocoa prices, was financed largely by external borrowing.With a subsequent sharp decline in commodity prices, high interestrates, adverse exchange-rate movements, and a 1982-83 drought,the country faced a real financial crisis at the end of 1983.Conditions for what proved to be a transitory recovery were laid bya stringent austerity program and ongoing structural adjustments inassociation with the International Monetary Fund (IMF) and the WorldBank.  Record export crops in 1985 spurred a return to real growthof about 5%, followed by a 2%-3% increase in 1986.  The collapseof coffee and cocoa prices that began in the latter half of 1986,however, plunged the economy into a recession from which it hasyet to emerge.  In late 1989, Cote d'Ivoire embarked upon a newIMF adjustment program and a new World Bank structural reformprograms to be supported by substantial amounts of bilateralassistance and official and commercial bank debt rescheduling.Rapid development of the industrial sector since independence hasbeen oriented toward import substitution, agricultural processing,energy, and construction.  Half of manufacturing employment is inagricultural processing.  The next largest category, employing about17%, is the textile and apparel industry, largely utilizing domesticallygrown cotton.Cote d'Ivoire joined the ranks of petroleum producers when anESSO-led consortium brought the offshore Belier field into productionin 1980.  In 1982, a Phillips-led consortium brought the larger Espoirfield into production.  However, production, which at one time metmost of the country's needs, fell off sharply in recent years, and thePhillips wells have been capped.  However, ESSO is nowundertaking additional exploration of its existing field, and thegovernment intends to solicit bids both for the development of aknown natural gas field and for the exploration of new offshore fieldsduring 1990.Reserves have proved smaller and more difficult to exploit than firstanticipated, and hopes of a sustained oil boom have faded in theface of decreasing crude oil prices.  Cote d'Ivoire also hasconstructed a regional oil refinery, SIR, which moved in 1985 frombeing a loss center to generating some profits.  Non-oil mineralproduction is negligible.  Limited amounts of diamonds and gold areproduced irregularly.  BHP Utah, a U.S. gold-mining firm, beganexploration in 1987.  A large deposit of low-grade iron ore has beenfound near Man, and a nationwide geological survey turned updeposits of nickel and manganese.  As part of Cote d'Ivoire's effortsto reduce reliance on cocoa, the Minister of Mines intends toencourage mining development more aggressively in the future.Rapid economic development since 1950 was assisted by theopening of the Vridi Canal, which made Abidjan a deepwater port,and the Abidjan-Ouagadougou Railroad, which traverses the centerof the country.  Recent railroad operations have not been assuccessful, and Cote d'Ivoire and Burkina Faso agreed in March1987 to form two national companies.  A system of highways, mostof which are paved, now connects the major urban centers, many ofwhich also are served by the national airline, Air Ivoire.  Air Afriqueand other African carriers provide regular intracontinental service.Intercontinental air service is available several times daily betweenAbidjan and Paris; less frequent direct flights connect Abidjan withRome, Geneva, Zurich, Brussels, London, Madrid, and New York.However, air service by carriers other than Air Afrique and UTA wascut back substantially on November 1, 1989, as part of aFrench-sponsored effort to "restructure" Air Afrique.  Tied into satellitecommunications, direct dialing to Western Europe and North Americaprovides the business traveler and tourist with instantcommunications.After independence, Ivorian leaders decided to follow a policy ofeconomic liberalism, based on private enterprise.  That policy hasbeen maintained with increasing emphasis on Ivorian managementand participation of Ivorian capital in new enterprises.  Thegovernment welcomes foreign private investment, and a number offoreign enterprises, including several U.S. companies, have investedin Cote d'Ivoire.  Although development objectives sometimes haveresulted in the creation of parastatal enterprises, as part of a reformprogram underway since 1980, the government has taken measuresto convert some to private ownership and to ensure that theremaining companies are run as self-sustaining enterprises.When Cote d'Ivoire became an overseas territory under the FourthFrench Republic, it benefited from the French overseas developmentfund, the Investment Fund of Economic and Social Development.The country has continued to benefit from considerable Frenchassistance and also receives important aid from the EuropeanCommunity, the World Bank, and other donors.Public organizations and private firms have found Abidjan wellsituated as a headquarters for their regional activities.  Among thoselocated in the city are the West African office of the World Bank, theAfrican Development Bank, the multinational Air Afrique, and thesecretariat of the Council of the Entente.  Many foreign firms havelocated there as well.  Although the French predominate, thespectrum of OECD (Organization for Economic Cooperation andDevelopment) countries is represented, as are a number ofdeveloping countries.  About 56 U.S.  firms operate in Abidjan.Aside from the manufacturers and oil companies, there is one bank,six accounting firms, a law firm, and many local and regional salesrepresentatives.Cote d'Ivoire's currency is the CFA (Communaute FinanciereAfricaine) franc issued by the Central Bank of West African States,the central bank of the West African Monetary Union.  The CFA francis fully convertible with the French franc, at a fixed parity of 50CFAF=1FF.  International payments are readily made.Cote d'Ivoire's traditionally favorable trade surplus has declinedsubstantially in recent years with the collapse of commodity prices.As a result, Cote d'Ivoire has been faced with a large currentaccount deficit.  This deficit is due largely to repatriation of earningsby foreign enterprises, payments abroad by the large foreignpopulation, and especially interest and principal payments on thenation's large foreign debt.DEFENSEThe small Ivorian Armed Forces comprise the army, navy, air force,and gendarmerie and are meant primarily for external defense andinternal security.  The army, the largest of the organizations, hasthree light infantry battalions, located in Abidjan, Bouake, and Daloa,and a fourth battalion is being formed in Korhogo.  Each battalionfalls within one of the country's four military regions and isheadquartered at one of these four principal cities.  Specialized armyunits include a para-commando company, an artillery batallion, andan engineer battalion.The army staff serves as the joint staff at Ivorian Armed ForcesHeadquarters in Abidjan, with a major general acting as both thecommander of the army and as chief of staff.  Command of thevarious military units stationed throughout Cote d'Ivoire is exercisedthrough the army military region commanders (all colonels), whocommand all military forces, including air force and gendarmerie,within their regions.The gendarmerie, the second largest military service, is a nationalpolice force responsible for territorial security, especially in ruralareas.  It is composed of a headquarters in Abidjan, commanded bya colonel, and four gendarmerie legions that correspond to the fourmilitary regions.  The Ivorian Air Force and Air Ivoire, the nationalairline, function within a single organization.  The military/civilinventory consists of 5 Alpha jets, 20 transport/utility aircraft, and 10helicopters.  The Ivorian Navy, the smallest of the armed services, isequipped with four patrol craft and one small landing ship.  Thenavy's primary mission is patrolling the 530-kilometer (340-mi.)shoreline.  Counting other paramilitary organizations, such as theMilitary Fire Department and the Presidential Guard and Militia, thetotal strength of Ivorian Armed Forces numbers about 15,000personnel.  A mutual defense accord signed with France in 1961provides for stationing French forces in Cote d'Ivoire, and a FrenchMarine Infantry Battalion currently is based near Abidjan.FOREIGN RELATIONSCote d'Ivoire's foreign policy has been generally favorable toward theWest.  The country became a member of the United Nations in 1960and participates in most of its specialized agencies.  It maintains awide variety of diplomatic contacts, and, in 1986, announced thereestablishment of diplomatic relations with Israel and the SovietUnion, two countries with whom Cote d'Ivoire had broken orsuspended formal diplomatic ties several years earlier.The Houphouet-Boigny government has favored a step-by-stepapproach to the question of African unity rather than broadproposals for early continental union.  Cote d'Ivoire is a member ofthe Organization of African Unity and maintains close ties with itsFrench-speaking neighbors in the Council of the Entente.  TheEntente countries continue to cooperate closely, harmonizing theireconomic policies and promoting regional economic development.The dean of sub-Saharan chiefs of state, Houphouet-Boigny wieldsconsiderable influence among his fellow leaders in West Africa.Since 1970, the president has called for a dialogue between blackAfrica and South Africa.  He believes that black Africa will notsucceed in changing South African policies through the use of force,whereas it may be possible to change South African attitudesthrough meaningful dialogue.  This position has met with a betterreception from other African states after the recent election of deKlerk and his release of Nelson Mandela and other ANC prisoners.U.S.-IVORIAN RELATIONSU.S.-Ivorian relations are friendly and close.  The United States issympathetic to Cote d'Ivoire's program of rapid, orderly economicdevelopment as well as its moderate stance on international issues.Bilateral U.S.  Agency for International Development (AID) funding,with the exception of self-help funds, has been phased out andreplaced by regional AID projects, such as training, energy initiatives,child survival and vaccination programs, and housing loanguarantees.The United States and Cote d'Ivoire maintain an active culturalexchange program, through which prominent Ivorian Governmentofficials, media representatives, educators, and scholars visit theUnited States to become better acquainted with the American peopleand to exchange ideas and views with their American colleagues.This cooperative effort is furthered through frequent visits to Coted'Ivoire by representatives of U.S.  business and educationalinstitutions, and by visits of Fulbright-Hays scholars and specialistsin various fields.A modest security assistance program provides professional trainingfor Ivorian military officers in the United States.Principal U.S. OfficialsAmbassador-Kenneth L.  BrownDeputy Chief of Mission-Hugh G. Hamilton, Jr.Administrative Counselor-Elaine B. SchunterEconomic Officer-Janice PricePolitical Officer-Thomas PriceDefense Attache-Col. Jerry R. FryCommercial Officer-Gene HarrisConsular Affairs Officer-Vincent J. RizzoDirector, AID Regional Development -Arthur M. FellDirector, AID Regional Housing and Urban Development-Stephen W.GiddingsPublic Affairs Officer-Robert PetersenThe U.S. Embassy is located at 5 Rue Jesse Owens, Abidjan, Coted'Ivoire (tel.  21-09-79; telex, 23660; telefax, 22-32-59); mailingaddress is 01 B.P. 1712, Abidjan 01, Cote d'Ivoire.Further InformationThese titles are provided as a general indication of the materialpublished on this country.  The Department of State does notendorse unofficial publications.Allen, Philip M., and Aaron Segal.  The Traveler's Africa. New York:Hopkinson & Blake, 1973.Cohen, Michael A.  Urban Policy and Political Conflict in Africa: AStudy of the Ivory Coast.  Chicago:  University of Chicago Press,1974.Foster, Philip, and Aristide R.  Zolberg.  Ghana and the Ivory Coast.Chicago:  University of Chicago Press, 1971.Guyer, David.  Ghana and the Ivory Coast:  The Impact ofColonialism in an African Setting.  New York:  Exposition Press,1970.International Bank for Reconstruction and Development. Ivory Coast,the Challenge of Success:  A Mission Sent to the Ivory Coast by theWorld Bank.  Baltimore:  Johns Hopkins University Press, 1978.The Ivorian Market.  Special issue in English, Sept.  30, 1977, No.1664.  Paris:  Marches Tropicaux et Mediterraneens.Morgenthau, Ruth. Political Parties in French-Speaking West Africa.New York:  Oxford University Press, 1964.Priovolos, Theophilos.  Coffee and the Ivory Coast:  An EconomicStudy.  Lexington, Mass.:  Lexington Books, 1981.Thompson, Virginia.  West Africa's Council of the Entente.  Ithaca:Cornell University Press, 1972.Wallerstein, Immanual M.  The Road to Independence:  Ghana andthe Ivory Coast.  Paris:  Mouton, 1964.Weiskel, Timothy C.  French Colonial Rule and the Baule Peoples:Resistence and Collaboration, 1889-1911.  Oxford:  Oxford UniversityPress, 1980.Woronoff, Jean.  West African Wager:  Houphouet Versus Nkrumah.Metuchen, N.J.:  Scarecrow Press, 1972.Zartman, I.  William and Delgado, Christopher.  The PoliticalEconomy of Ivory Coast.  New York:  Praeger, 1984.Zolberg, Aristide R.  One-Party Government in the Ivory Coast.  Rev.Ed.  Princeton:  Princeton University Press, 1974.Travel NotesClothing:  Summer clothing is appropriate year round.  Umbrellasand light raincoats are useful during the rainy season.Customs:  Visas are required for entry to Cote d'Ivoire andneighboring West African countries.  Airport visas are not available.If no Ivorian representation exists in the country where the visa issought, it may be applied for at a French embassy or consulate.Yellow fever vaccination is required.  Ivorian officials abroad generallyverify that immunizations have been obtained before issuing an entryvisa.  Since immunization requirements may change, it is prudent tocheck the latest information before traveling.Health:  The incidence of disease in Cote d'Ivoire is higher than inthe United States.  Health risks can be minimized by properimmunizations, food preparation, and strict sanitary practices.Tapwater is not potable.  Malaria prophylaxis is a must and shouldbe taken before and during a visit to Cote d'Ivoire.Telecommunications:  Local phone service is adequate.  Internationalcalls can be dialed directly to the United States  and many othercountries.  It is sometimes easier to make an international call thanto reach local or in-country numbers.  Cote d'Ivoire is 5 hours aheadof eastern standard time.Transportation:  Air Afrique has two flights per week direct from NewYork to Abidjan.  European carriers provide once-weekly flights asfollows:   British Air, London/Abidjan; Iberia, Madrid/Abidjan; SwissAir, Zurich/Geneva/Abidjan; Sabena, Brussels/Abidjan.  In addition,Air Afrique and UTA provide daily service from Paris to Abidjan.  AirIvoire serves the country's principle cities, and small planes areavailable for charter.  Air fares are expensive.  Daily railroadpassenger service is available between Abidjan and Ouagadougou,Burkina Faso.  Most Abidjan roads are paved.  An excellent networkof roads links virtually all major towns.  All unpaved roads are dustyduring the dry season and slippery during the rainy season.Four-wheel drive vehicles are essential for trips into the more isolatedareas.  Third-party liability insurance is mandatory.  Metered taxis,whose fares are relatively low, and rental cars, which are expensive,are available.Published by the United States Department of State --  Bureau ofPublic Affairs  - -Office of Public Communication --  Washington, D.C.-- April 1990 -- Editor:  Juanita Adams.  Department of StatePublication 8119 --Background Notes Series  -- This material is in thepublic domain and may  be reprinted without permission; citation ofthis source is appreciated.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C.  20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  COSTA RICAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of Costa RicaPROFILE GeographyArea:  51,032 sq. km. (19,652 sq. mi.), slightly smaller than West Virginia. Cities:  Capital--San Jose (metropolitan area population more than 1 million).  Other major cities--Alajuela (200,000), Puntarenas (200,000), Limon (150,000), Cartago (150,000). Terrain:  A rugged, central range separates eastern and western coastal plains. Climate:  Mild in the central highlands, tropical and subtropical in coastal areas.PeopleNationality:  Noun and adjective--Costa Rican(s).Population:  3.2 million.Annual growth rate:  2.4%.Ethnic groups:  European and some mestizo 94%; African origin 3%; indigenous 2%.Religion:  Roman Catholic 80%, Evangelical Protestant 15%.Languages:  Spanish, with Jamaican dialect of English spoken around Puerto Limon. Education:  Years compulsory--6.  Attendance--nearly 100%.  Literacy--93%. Health:  Infant mortality rate--13/1,000.  Life expectancy--men 72 years; women 76 years. Work force (1993, 1.1 million):  Agriculture--24%.  Community and personal services--22%.  Industry--19%.  Commerce--22%.  Construction--5%.  Transportation and warehouse--4%.  Banking and finance--4%.  Government Type:  Democratic republic.Independence:  September 15, 1821.Constitution:  November 9, 1949.Branches:  Executive--president (head of government and chief of state) elected for one four-year term, two vice presidents, cabinet (20 ministers).  Legislative--57-deputy unicameral Legislative Assembly elected at four-year intervals.  Judicial--Supreme Court of Justice (22 magistrates elected by Legislative Assembly at eight-year intervals). Subdivisions:  Seven provinces divided into 80 cantons subdivided into districts. Political parties:  Social Christian Unity Party (PUSC), National Liberation Party (PLN), Democratic Force Party (PFD), Agricultural Union Party of Cartago (PUAC), National Agrarian Party (PAN). Suffrage:  Obligatory at 18.Economy GDP (1993):  $6 billion.Real growth rate (1993):  6.5%.Per capita income (1993):  $1,864. Natural resources:  Hydroelectric power. Industry (22% of GDP):  Types--food processing, textiles and clothing, construction materials, fertilizer, petroleum refining. Agriculture (19% of GDP):  Products--bananas, coffee, beef, sugarcane, rice, vegetables, ornamental plants and fruits. Commerce and tourism (30% of GDP): hotels, restaurants, stores, tourist services. Trade (1993):  Exports--$2.1 billion: bananas, coffee, beef, textiles and clothing, sugar, fruits, flowers and ornamental plants.  Major markets--U.S. 41%, Central America 13%, Germany 10%.  Imports--$2.9 billion:  manufactured goods, machinery, transportation equipment, chemicals, fuel, foodstuffs, fertilizer.  Major suppliers--U.S. 45%, Japan 15%, Central America 8%.Exchange rate:  158 colones=U.S. $1.PEOPLE AND HISTORY Unlike many of their Central American neighbors, present-day Costa Ricans are largely of European rather than mestizo descent; Spain was the primary country of origin.  Few of the native Indians survived European contact; the indigenous population today numbers about 64,000, or 2% of the population.  Descendants of 19th-century Jamaican immigrant workers constitute an English-speaking minority and--at 3% of the population--number about 96,000.In 1502, on his fourth and last voyage to the New World, Christopher Columbus made the first European landfall in the area.  Settlement of Costa Rica began in 1522.  For nearly three centuries the region was administered by Spain as part of the Captaincy General of Guatemala under a military governor.  The Spanish optimistically called the country "Rich Coast," but the name proved inaccurate.  Finding little gold or other valuable minerals in Costa Rica, the Spanish turned to agriculture.The small landowners' relative poverty, the lack of a large indigenous labor force, the population's ethnic and linguistic homogeneity, and Costa Rica's isolation from the Spanish colonial centers in Mexico and the Andes all contributed to the development of an autonomous and individualistic agrarian society.  An egalitarian tradition also arose; this tradition survived the widened class distinctions brought on by the 19th-century introduction of banana and coffee cultivation and consequent accumulations of wealth.In 1821, Costa Rica joined other Central American provinces in a joint declaration of independence from Spain.  Although the newly independent provinces formed a federation, border disputes broke out among them, adding to the region's turbulent history and conditions.  Costa Rica's northern Guanacaste Province was annexed from Nicaragua in one such regional dispute.  In 1838, long after the Central American federation ceased to function in practice, Costa Rica formally withdrew and proclaimed itself sovereign.An era of peaceful democracy in Costa Rica began in 1889 with elections considered the first truly free and honest ones in the country's history.  This began a trend continued until today with only two lapses:  In 1917-19, Federico Tinoco ruled as a dictator, and in 1948, Jose Figueres led an armed uprising in the wake of a disputed presidential election.With more than 2,000 dead, the brief civil war resulting from this uprising was the bloodiest event in 20th-century Costa Rican history, but the victorious junta drafted a constitution guaranteeing free elections with universal suffrage and the abolition of the army.  Figueres became a national hero, winning the first election under the new constitution.  Since then, Costa Rica has held 12 presidential elections, the latest in 1994.  GOVERNMENT Costa Rica is a democratic republic with a strong system of constitutional checks and balances.  Executive responsibilities are vested in a president, who is the country's center of power.  There also are two vice presidents and a 20-member cabinet.  The president and 57 Legislative Assembly deputies are elected for four-year terms.  A constitutional amendment approved in 1969 limits presidents and deputies to one term, although a deputy may be returned to the assembly after sitting out a term.The electoral process is supervised by an independent Supreme Electoral Tribunal--a commission of three principal magistrates and six alternates selected by the Supreme Court of Justice.  Judicial power is exercised by the Supreme Court of Justice, composed of 22 magistrates selected for eight-year terms by the Legislative Assembly, and subsidiary courts.  A constitutional chamber of the Supreme Court, established in 1989, reviews the constitutionality of legislation and executive decrees and all habeas corpus warrants.The country's seven provinces are headed by governors appointed by the president, but they exercise little power.  There are no provincial legislatures.  Autonomous state agencies enjoy considerable operational independence; they include the nationalized commercial banks, the state insurance monopoly, and the social security agency.  Costa Rica has no military and maintains only a domestic police force for internal security.Principal Government Officials President--Jose Maria FIGUERES Olsen  Foreign Minister--Fernando NARANJO Villalobos  Ambassador to the United States--Sonia PICADO SotelaAmbassador to the OAS--Dauslo JIMENEZAmbassador to the UN--Fernando BERROCAL  Costa Rica maintains an embassy in the United States at 2114 S Street NW, Washington, DC 20008 (tel. [phone]). POLITICAL CONDITIONS Costa Rica long has emphasized the development of democracy and respect for human rights.  The country's political system has contrasted sharply with many of its Central American and Caribbean neighbors; it has steadily developed and maintained democratic institutions and an orderly, constitutional scheme for government succession.  Several factors have contributed to this tendency, including enlightened government leaders, comparative prosperity, flexible class lines and educational opportunities that have created a stable middle class, and high social indicators.  Also, because Costa Rica has no armed forces, it has avoided the possibility of political intrusiveness by the military that some neighboring countries have experienced.In the February 1994 elections, center-left National Liberation Party (PLN) candidate Jose Maria Figueres was elected President, succeeding Rafael Angel Calderon of the center-right Social Christian Unity Party (PUSC).  Figueres, the son of former President Jose "Don Pepe" Figueres, defeated PUSC rival Miguel Angel Rodriguez in one of the closest elections in Costa Rican history.  By winning 28 of 57 seats, the PLN regained a plurality in the legislature--which in 1990 it had lost for the first time in more than 30 years.  The PUSC won 25 seats, while minor parties took the remaining four.Social Democratic in orientation, the PLN generally has been the dominant party in Costa Rica since 1948, when "Don Pepe" re-established democracy and abolished the military in the wake of the short-lived but violent civil war.  The PUSC is aligned with Christian Democratic and conservative parties in the Western Hemisphere and Europe.  Costa Rican governments have tended to alternate between moderately conservative and moderately socialist as the PLN and various anti-PLN coalitions have traded control of the presidency, although in 1974 and 1986, PLN candidates succeeded PLN incumbents. ECONOMY Despite trying to remain neutral, Costa Rica was affected adversely by regional political turmoil in the late 1970s and the 1980s.  Instability in neighboring Nicaragua and Panama discouraged new investment and tourism in Costa Rica.  Many displaced Nicaraguans and Salvadorans sought refuge there, further burdening the country's educational and health facilities.  In addition, an oil shock and debt crisis made economic recovery difficult.Following an economic crisis in the early 1980s, Costa Rica's approach has aimed for macroeconomic stability, structural adjustment, and growth through increasingly diversified exports.  Gross domestic product (GDP) growth has averaged 5% since 1987, non-traditional exports and tourism have increased rapidly and now account for more than 50% of foreign currency earnings, and official unemployment has fallen to 4% and inflation to 9%.  A debt buyback program under the U.S. "Brady Plan" was completed in May 1990, enabling Costa Rica to repurchase 60% of its commercial bank debt, cover interest for bonds issued in exchange for part of debt, and cover payments on debt not repurchased.This successful macroeconomic performance masked serious fiscal imbalances, however, such as a large public-sector deficit.  Immediately after taking office in 1990, the Calderon administration began implementing a fiscal austerity program, including revenue increases and expenditure reductions.  The central government reduced its deficit to 2% of GDP in 1992, but the deficit climbed back to 2.3% of GDP in 1993.  During 1993, the fiscal situation deteriorated somewhat due to state financing of presidential, Legislative Assembly, and local elections and the reduction in sales taxes and import duties.  The central government has also been required to spend one-third of its budget on servicing its growing domestic debt of about $500 million.Programs of the International Monetary Fund, the World Bank, the Inter-American Development Bank, and the U.S. Agency for  International Development (USAID) in Costa Rica have aimed to maintain stability while promoting trade and investment liberalization.  Such programs have had success; USAID is scheduled to close its bilateral Costa Rican mission in 1996 since Costa Rica has achieved "advanced developing country" status.  Further liberalization of Costa Rica's trade and investment regimes and greater access to foreign markets by the country's exporters would provide promising opportunities for foreign and local investors and increased prosperity for Costa Rica.Indeed, the country has sought to widen its economic and diplomatic ties, including outside the region.  Ties with the Group of Three--Mexico, Colombia, and Venezuela--are strong:  in April 1994, Costa Rica signed a bilateral free trade agreement with Mexico scheduled to take effect January 1, 1995, and Costa Rica also is discussing a possible free trade agreement with Colombia and Venezuela.  The United States and Costa Rica signed a bilateral trade and investment framework agreement in November 1990 as a mechanism to discuss trade and investment issues.  Costa Rica has maintained connections with the European Union, along with the other Central American states, through annual ministerial consultations; the country also became a member of the General Agreement on Tariffs and Trade (GATT) in 1990.FOREIGN RELATIONS Costa Rica is an active member of the international community and, in 1993, proclaimed its permanent neutrality.  Its record on human rights and advocacy of peaceful settlement of disputes gives it a weight in world affairs far beyond its size.  The country lobbied strenuously for the establishment of the UN High Commissioner for Human Rights and was the first nation to recognize the jurisdiction of the Inter-American Human Rights Court, which is based in San Jose.In 1987, then-President Oscar Arias authored a regional peace plan that served as the basis for the Esquipulas peace agreement.  Arias' efforts earned him the 1987 Nobel Peace Prize.  Subsequent agreements, supported by the United States, led to the Nicaraguan elections of 1990 and the end of civil war in Nicaragua.  Costa Rica also hosted several rounds of negotiations between the Salvadoran Government and the Farabundo Marti National Liberation Front (FMLN), aiding El Salvador's efforts to emerge from civil war and culminating in that country's 1994 free and fair elections.  Costa Rica has been a strong proponent of regional arms limitation agreements.With the establishment of democratically elected governments in all Central American nations by the early 1990s, Costa Rica turned its focus from regional conflicts to the pursuit of democratic and economic development on the isthmus.  It was instrumental in drawing Panama into the Central American development process and participated in the multinational Partnership for Democracy and Development in Central America.Regional political integration has not proven attractive to Costa Rica.  Under President Calderon, the country debated its role in the Central American integration process.  Costa Rica has been a cautious partner--looking for concrete economic ties with its Central American neighbors rather than political institutions--and has not become a member of the Central American Parliament. Costa Rica broke relations with Cuba in 1961 to protest Cuban support of leftist subversion in Central America and has not renewed diplomatic ties with the Castro regime.Costa Rica strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute civilian medical personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.U.S.-COSTA RICAN RELATIONS The United States and Costa Rica have a history of close and friendly relations based on respect for democratic government, human freedoms, and other shared values.  During the crisis in Central America in the 1980s, Costa Rica and the United States worked for the restoration of peace and the establishment of democracy on the isthmus.  Costa Rica works cooperatively with the United States and other nations in the international fight against narcotics trafficking.The United States is the most important market for Costa Rican products, and American companies produce a variety of goods in Costa Rica.  The two countries share growing concerns for the environment and want to use wisely Costa Rica's important tropical resources and prevent environmental degradation.The United States responded to Costa Rica's economic needs in the 1980s with significant economic and development assistance programs.  Through provision of more than $1.1 billion in assistance, USAID supported Costa Rican efforts to stabilize its economy and broaden and accelerate economic growth through policy reforms and trade liberalization.  New assistance initiatives in the 1990s have concentrated on democratic politics, modernizing the administration of justice, and sustainable development.  The Peace Corps, with some 125 volunteers, helps develop skills in agriculture, education, health, nutrition, and natural resources development.As many as 25,000 American private citizens, mostly retirees, reside in the country, and an estimated 150,000 to 200,000 American citizens visit Costa Rica annually. There have been some vexing issues in the U.S.-Costa Rican relationship, principal among them long-standing expropriation and other U.S. citizen investment disputes, which have hurt Costa Rica's investment climate and produced bilateral tensions.  In November 1993, the Government of Costa Rica was notified that $10 million in fiscal year 1989 economic support funds--withheld pending resolution of U.S. citizen expropriation claims--would not be provided due to continued slow movement on these claims.  Land invasions from organized squatter groups who target foreign landholders have also occurred, and some have turned violent.  The U.S. Government has made clear to Costa Rica its concern that Costa Rican inattention to these issues has allowed U.S. citizens to be threatened and their land taken without compensation in a timely manner, and the new Figueres government has promised to address the matter. Principal U.S. Embassy Officials Ambassador--Peter Jon de VosDeputy Chief of Mission--Joseph Becelia USAID Mission Director--Steven C. Wingert Consul General--Kenneth F. Sackett Political Counselor--Donald H. Harrington Economic Counselor--Ben F. Fairfax Administrative Counselor--Hanson R. Malpass Commercial Attache--Maria Galindo Agricultural Attache--Scott Bleggi Public Affairs Officer--Frances Sullinger The U.S. embassy in Costa Rica is located in Pavas at Boulevard Pavas and Calle 120, San Jose (tel. [phone]).  (###)</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES SERIES, COMOROS, APRIL 1992PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSOfficial Name:   Federal Islamic Republic  of ComorosPROFILEGeographyArea:  2,171 sq. km. (838 sq. mi.); slightly less than half the size ofDelaware.  Major islands:  Grande Comore (1,025 sq. km.), Anjouan (424 sq.km.), Mayotte (374 sq. km.), and Moheli (211 sq. km.).  Cities:Capital - Moroni (pop. 30,000).  Other city - Mutsamudu (20,000).Terrain:  Rugged. Climate:  Tropical marine.PeopleNationality:  Noun and adjective=Comorian(s).  Population (1990 est.):455,000.  Mayotte - 70,000 (1990 est.). Annual growth rate (1990 est.):3.1%. Ethnic groups: Antalote, Cafre, Makoa, Oimatsaha, Sakalava.Religions:  Sunni  Muslim 98%, Roman Catholic 2%. Languages:  Shikomoro(a Swahili-Arab), Malagasy, French.  Education:  Attendance = 62% primary,32% secondary.  Literacy = 15%.  Health:  Infant mortality rate = 120/1,000.Life expectancy = 54 yrs.  Work force (200,000):  Agriculture = 87%.Government = 3%.GovernmentType:  Republic.  Independence:  July 6, 1975 (Mayotte remains underFrench administration).  Constitution:  Adopted by referendum in 1978and since amended.Branches:  Executive - president.  Legislative - National Assembly.  Judicial-traditional Muslim and codified law from French sources.  Political parties:17 political parties. Suffrage:  Universal adult.  Flag:  White crescentmoon encircling  four white stars on green field.EconomyGDP (1990 est.):  $240 million.  Avg. annual growth rate (1989-1990):  1.9%.Per capita income:  $448.  Agriculture (37% of GDP):  Products - perfumeessences, copra, coconuts, cloves, vanilla, cinnamon, yams, bananas.  Services(25% of GDP):  Commerce, tourism.  Industry (4% of GDP):  Types - perfumedistillation.  Trade:  Exports=$22 million: vanilla, cloves, perfume essences,copra. Major markets=France 47%, US 37%, Germany 10%.  Imports=$40 million:rice, petroleum, meat, wheat flour, cotton textiles, cement.  Major suppliers=France 41%, Madagascar 12%, Pakistan 8%, South Africa 6%.  Official exchangerate (1991): Comorian franc 279=US$1.US economic aid received:  US development assistance is administered by CARE,the private voluntary organization (primarily for reforestation, soilconservation, and sustainable agriculture).  Assistance in FY1991 was $700,000.The Peace Corps has 21 volunteers.  Scholarship assistance totaling $100,000was available in 1990.PEOPLEThe Comorians inhabiting Grande Comore, Anjouan, and Moheli (86% of thepopulation) share African-Arab origins. Islam is the dominant religion,and Koranic schools for children reinforce its influence.  Although Arabculture is firmly established throughout the archipelago, a substantialminority of the citizens of Mayotte (the Mahorais) are Catholic and havebeen influenced strongly by French culture.The most common language is Shikomoro, a Swahili dialect.  French and Malagasyare also spoken. About 15% of the population is literate.HISTORYOver the centuries, the islands were invaded by a succession of diversegroups from the coast of Africa, the Persian Gulf, Indonesia, and Madagascar.Portuguese explorers visited the archipelago in 1505.  Shirazi Arab migrantsintroduced Islam at about the same time.  Between 1841 and 1912, Franceestablished colonial rule over Grande Comore, Anjouan, Mayotte, and Moheliand placed the islands under the administration of the governor general ofMadagascar.  Later, French settlers, French-owned companies, and wealthy Arabmerchants established a plantation-based economy that now uses about one-thirdof the land for export  crops.After World War II, the islands became a French overseas territory and wererepresented in France+s National Assembly.  Internal political autonomywas granted in 1961.  Agreement was reached with France in 1973 for Comorosto become independent in 1978. On July 6, 1975, however, the ComorianParliament passed a resolution declaring unilateral independence.  Thedeputies of Mayotte abstained, and as a result, the Comorian Government haseffective control over only Grande Comore, Anjouan, and Moheli. Mayotteremains under French administration.GOVERNMENTAlthough Comoros has been independent since 1975, the country had noconstitution until the return to power of President Abdallah in 1978.A National Assembly was elected in 1982, and the constitution was revisedin 1984 to permit the president to appoint governors of each of the threemain islands.  Two months after President Abdallah+s assassination on November27, 1989, presidential elections were held, and Said Mohamed Djohar wasdesignated president for a 6-year term.  It is widely expected that a newconstitution, formed by a government of national unity and allowing for aprime minister, will be ratified and adopted in 1992. New elections arealso planned for late 1992.Principal Government Officials President=Said Mohamed Djohar Minister ofForeign Affairs+Said Hassan Said Hachim Ambassador to the United Statesand the United Nations+Amin Ali Moumin Comoros maintains a mission to theUnited States at 336 E. 45th St., 2d Floor, New York, NY 10017, tel. [phone].POLITICAL CONDITIONSAfter a unilateral declaration of independence from France by the Comorianparliament in 1975, Ahmed Abdallah was designated President.  After barelya month in office, he was overthrown by foreign mercenaries who installedAli Soilih.  Soilih embarked on a +socialist+ revolution, relying onundisciplined youth committees that often terrorized the public.  Governmentarchives were burned and civil servants fired.  Soilih openly challenged thedominance of Islam, alienating much of the devoutly Islamic population.A second mercenary attack, in 1978, restored Abdallah to power, and Soilihwas killed.  A constitution was adopted by popular referendum on October 1,1978, and Abdallah was elected President the same year.Sometime during the night of November 26, 1989, President Abdallah wasassassinated at his residence, probably by mercenaries in his presidentialguard under Bob Denard.  French troops were dispatched from Mayotte, and themercenaries were forced to leave on December 15, 1989.In early 1990, Said Mohamed Djohar emerged as the winner of the presidentialelections.  Since then the country has been engaged in rewriting theconstitution, which is expected to be adopted this year.  The country isalso engaged in implementing the terms of an IMF/World Bank structuraladjustment program to improve its economy.ECONOMYComoros, with an estimated gross domestic product (GDP) per capita income ofabout $450, is among the world+s poorest and least developed nations. Althoughthe quality of the land differs from island to island, most of the widespreadlava-encrusted soil formations are unsuited to agriculture.  As a result,most of the inhabitants make their living from  subsistence agriculture andfishing.Agriculture, involving more than 87% of the population and 37% of the grossdomestic product, provides virtually all foreign exchange earnings.  Servicesincluding tourism, construction, and commercial activities constitute theremainder of the GDP.  Plantations engage a large proportion of the populationin producing the islands+ major cash crops for export+vanilla, cloves,perfume essences, and copra.  Comoros is the world+s leading producer ofessence of ylang-ylang, used in manufacturing perfume.  It also is the worldssecond largest producer of vanilla.  Principal food crops are coconuts,bananas, and cassava. Foodstuffs constitute 34% of total imports.The country lacks the infrastructure necessary for development. Somevillages are not linked to the main road system or at best are connectedby tracks usable only by four-wheel-drive vehicles.The island's ports are rudimentary, although a deep-water facility wasrecently completed on Anjouan. Only small vessels can approach the existingquays in Moroni on Grande Comore, despite recent improvements. Long-distanceocean-going ships must lie offshore and be unloaded by smaller boats; duringthe cyclone season, this procedure is dangerous, and ships are reluctant tocall at the island. Most freight is sent first to Mombasa or Reunion andtranshipped from there.France, Comoros' major trading partner, also provides direct budgetarysupport essential to the government+s daily operations. The United Statesreceives a growing percentage of Comoros+ exports but supplies only anegligible (less than 1%) fraction of its imports.Comoros has an international airport at Hahaya on Grande Comore. It is amember of the franc zone (Communaute Financiere Africaine CFA), with anexchange rate of 279 CFA francs = US$1 (1991).FOREIGN RELATIONSIn November 1975, Comoros became the 143d member of the United Nations. Thenew nation was defined as consisting of the entire archipelago, despite thefact that France maintains control over Mayotte.Comoros also is a member of the Organization of African Unity, the EuropeanDevelopment Fund, the World Bank, the International Monetary Fund, the IndianOcean Commission, and the African Development Bank.DEFENSEThe military resources of the Comoros consist of a small standing army and a500-member police force, as well as a 500-member defense force. A defensetreaty with France provides naval resources for protection of territorialwaters, training of Comorian military personnel, and air surveillance.France maintains a small maritime base and a Foreign Legion contingent onMayotte.US-COMORIAN RELATIONSThe United States recognized the Comorian Government in 1977, and the twocountries enjoy friendly relations.Principal US OfficialsAmbassador+Kenneth N. PeltierAdministrative/Consular Officer Rowena Cross-NajafyThe address of the US Embassy in Moroni is PO Box 1318, Moroni, RFI desComoros (tel. 73-22-03 or 73-29-22).  Embassy hours are 7:30-3:30 Mondayto Friday.Travel NotesClimate and clothing: The climate is hot.  Light rainwear and summer clothingare appropriate year round.  Customs: A valid passport and visa are required.Visas are available through the Embassy of Senegal in Washington. Visas alsomay be obtained on arrival if unavailable in country of origin.Health: No vaccinations are required. Malaria is widespread, and prophylactics,such as chloroquine, paludrine, and fansidar, are used.  Take reasonableprecautions in eating fruits, vegetables, and meats. Seek advice beforeusing beaches.Telecommunications: Long-distance telephone and telegraph services areavailable in Moroni. The country is 8 time zones earlier than easternstandard time.Transportation: There are flights to and from Comoros from Paris, Mauritius,Nairobi, South Africa, Tanzania, and Madagascar. The three main islands areconnected by daily flights, but there is no regular ocean communication.Published by the United States Department of StateBureau of Public AffairsOffice of  Public CommunicationWashington, DCApril 1992Editor: Peter A. Knecht.Department of State Publication 8963 - Background Notes Series - This materialis in the public domain and may  be reprinted without permission; citation ofthis source is appreciated.For sale by the Superintendent of Documents, US Government Printing Office,Washington, DC  20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  COLOMBIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name: Republic of ColombiaPROFILEGeographyArea:  1.2 million sq. km. (440,000 sq. mi.); about the size of Texas, New Mexico, and Arkansas combined; fourth-largest country in South America.  Cities:  Capital--Santa Fe de Bogota (pop. about 6 million).  Other major cities--Medellin, Cali, Barranquilla, Cartagena.  Terrain:  Flat coastal areas, central highlands, volcanic mountains, and eastern plains with extensive coastlines on the Pacific Ocean and Caribbean Sea.  Climate:  Tropical on coast and eastern plains, cooler in highlands. PeopleNationality:  Noun and adjective--Colombian(s). Population:  36 million.  Annual growth rate:  1.7%.  Religion:  Roman Catholic 95%.Language:  Spanish.  Education:  Years compulsory--9.  Attendance--80% of children enter school.  Only five years of primary school are offered in rural areas.  Literacy--93% in urban areas, 67% in rural areas.  Health:  Infant mortality rate--37/1,000.  Life expectancy--67 yrs. men, 72 yrs. women.GovernmentType:  Republic.Independence:  July 20, 1810.  Constitution:  1991.Branches:  Executive--president (chief of state and head of government).  Legislative--bicameral congress.  Judicial--Supreme Court, Constitutional Court, Council of State. Administrative divisions:  32 departments; Santa Fe de Bogota, capital district.  Major political parties:  Liberal Party, Social Conservative Party, Democratic Alliance/M-19 (AD/M-19), Patriotic Union (UP).  Suffrage:  Universal age 18 and over. Economy GDP (1993):  $50 billion.  Annual growth rate (1993):  5.3%. Per capita GDP (1993):  $1,390.  Natural resources:  Coal, petroleum, natural gas, iron ore, nickel, gold, silver, copper, emeralds.  Agriculture (21% of GDP):  Products--coffee, bananas, cut flowers, cotton, sugar cane, livestock, rice, corn, tobacco, potatoes, soybeans, sorghum.  Cultivated land--5% of total land area.  Manufacturing (21% of GDP):  Types--textiles and garments,  chemicals, metal products, cement, cardboard containers, plastic resins and manufactures, beverages.Other sectors (by percentage of GDP):  Financial services--15%; social and miscellaneous services--14%;  commerce--11%; transportation, warehousing, and communications services--9%; construction--3%; utilities--1%.Trade (1993):  Exports--$7.4 billion:  petroleum, coffee, coal, ferronickel, bananas, flowers, chemicals and pharmaceuticals, textiles and garments, gold, sugar, cardboard containers, printed matter, cement, plastic resins and manufactures, emeralds.  Major markets--U.S., Germany, Netherlands, Japan.  Imports--$9 billion:  machinery/equipment, grains, chemicals, transportation equipment, mineral products, consumer products, metals/metal products, plastic/rubber, paper products, aircraft, oil and gas industry equipment and supplies.  Major suppliers--U.S., Venezuela, Japan, Germany, Panama.  Exchange rate:  817 Colombian pesos = U.S. $1.  PEOPLEColombia is the third most populous country in Latin America, after Brazil and Mexico.  Movement from rural to urban areas has been heavy.  The urban population increased from 57% of the total population in 1951 to about 74% by 1994.  The nine eastern departments, constituting about 54% of Colombia's area, have less than 3% of the population and a density of fewer than one person per square kilometer (two persons per sq. mi.).  Thirty cities have 100,000 or more inhabitants.  Residents of the high Andes Mountains must cope with sometimes deadly volcanic activity--more than 20,000 died in the 1985 eruption of Volcan Nevada del Ruiz near the town of Armero in Tolima Department.  The Galeras Volcano near Pasto (Narino Department) is active and under observation by the Colombian Government.The ethnic diversity in Colombia is a result of the intermingling of indigenous Indians, Spanish colonists, and African slaves.  Today, only about 1% of the people can be identified as fully Indian on the basis of language and customs.  Few foreigners have immigrated to Colombia, compared to several other South American countries.HISTORYDuring the pre-Columbian period, the area now known as Colombia was inhabited by Indians, mostly primitive hunters or nomadic farmers.  The Chibchas, who lived in the Bogota region, dominated the various Indian groups.Spaniards first sailed along the north coast of Colombia as early as 1500, but the first permanent settlement, at Santa Marta, was not established until 1525.  In 1549, the area was established as a Spanish colony with the capital at Santa Fe de Bogota.  In 1717, Bogota became the capital of the viceroyalty of New Granada, which included what is now Venezuela, Ecuador, and Panama.  The city became one of the principal administrative centers of the Spanish possessions in the New World, along with Lima and Mexico City.On July 20, 1810, the citizens of Bogota created the first representative council to defy Spanish authority.  Total independence was proclaimed in 1813, and in 1819 the Republic of Greater Colombia was formed.The RepublicAfter the defeat of the Spanish army, the republic included all the territory of the former viceroyalty.  Simon Bolivar was elected its first President and Francisco de Paula Santander, Vice President.  Two political parties that grew out of conflicts between the followers of Bolivar and Santander, the Conservatives and the Liberals, have dominated Colombian politics.  Bolivar's supporters, who later formed the nucleus of the Conservative Party, advocated a strong centralized government, alliance with the Roman Catholic Church, and a limited franchise.  Santander's followers, forerunners of the Liberals, wanted a decentralized government, state rather than church control over education and other civil matters, and a broadened suffrage.Throughout the 19th and early 20th centuries, each party held the presidency for roughly equal periods of time.  Colombia, unlike many Latin American countries, maintained a tradition of civilian government and regular, free elections.  The military has seized power only three times in Colombia's history:  in 1830, when Ecuador and Venezuela withdrew from the republic (Panama did not become independent until 1903); in 1854; and in 1953-57.  In the first two instances, civilian rule was restored within a year.Notwithstanding the country's commitment to democratic institutions, Colombia's history has been characterized by periods of widespread, violent conflict.  Two civil wars resulted from bitter rivalry between the Conservative and Liberal Parties.  The War of a Thousand Days (1899-1902) cost an estimated 100,000 lives, and up to 300,000 people perished during La Violencia ("The Violence") of the 1940s and 1950s.A military coup in 1953 brought Gen. Gustavo Rojas Pinilla to power.  Initially, Rojas enjoyed considerable popular support, due largely to his success in reducing La Violencia. When he did not restore democratic rule, however, he was overthrown by the military in 1957 with the backing of both political parties, and a provisional government was installed.The National FrontIn July 1957, former Conservative President Laureano Gomez (1950-53) and former Liberal President Alberto Lleras Camargo (1945-46) issued the "Declaration of Sitges," in which they proposed a "National Front" whereby the Liberal and Conservative parties would jointly govern.  Through regular elections, the presidency would alternate between the two parties every four years; the parties also would have parity in all other elective and appointive offices.The National Front ended La Violencia.  National Front administrations instituted far-reaching social and economic reforms in keeping with the Alliance for Progress, an inter-American program of economic assistance which began in 1961 with major financial backing by the United States.  Although the parity system established by the Sitges agreement was terminated in 1978, the 1886 Colombian constitution, which was in effect until 1991, required that the losing political party be given adequate and equitable participation in the government.  Although the 1991 constitution does not have that requirement, subsequent governments have included opposition parties in the government.Post-National Front YearsThe National Front ended in 1974, having made efforts to resolve problems of inflation, unemployment, and inequitable income distribution while cutting government expenses.  Between 1978 and 1982, the government focused on ending the limited, but persistent, Cuban-backed insurgency that sought to undermine Colombia's traditional democratic system.  The success of the government's efforts enabled it to lift the state-of-siege decree that had been in effect for most of the previous 30 years.In 1984, President Belisario Betancur, a Conservative who won 47% of the popular vote, negotiated a cease-fire that included the release of many guerrillas imprisoned during the effort to overpower the insurgents.  The cease-fire began to unravel when Democratic Alliance/M-19 (AD/M-19) guerrillas resumed fighting in 1985.A vicious attack on the Palace of Justice by the AD/M-19 on November 6-7, 1985, shocked Colombia and the entire world.  Of the 115 people killed, 11 were Supreme Court justices.  Although the government and the Revolutionary Armed Forces of Colombia (FARC), the largest guerrilla group, renewed their truce in March 1986, peace with the AD/M-19 and dissident factions of other guerrilla groups seemed remote as Betancur left office.The next administrations had to contend with both the guerrillas and the narcotics traffickers, who operated with relative impunity within Colombia.  Narco-terrorists assassinated three presidential candidates before Cesar Gaviria Trujillo was elected in 1990.  With the death of Medellin cartel leader Pablo Escobar in December 1993, indiscriminate acts of violence associated with that organization have somewhat abated.GOVERNMENTPresident Ernesto Samper assumed office in August 1994.  Samper has vowed to continue many of the economic and foreign policy goals of the Gaviria administration, while also placing greater emphasis on addressing social inequities and eliminating poverty.The new constitution, enacted on July 4, 1991, strengthens the administration of justice with the introduction of an accusatorial system which replaces the previous Napoleonic Code system.  Other significant reforms under the new constitution provide for civil divorce, dual nationality, the election of a vice president, and the election of departmental governors.  The constitution has expanded citizens' basic rights, including that of tutela, under which an immediate court action can be requested by an individual if he feels his constitutional rights are being violated and if there is no other legal recourse.The national government has separate executive, legislative, and judicial branches.  The president is elected for a four-year term and cannot be re-elected.  The 1991 constitution re-established the position of vice president, who is elected on the same ticket as the president.  By law, the vice president will succeed in the event of the president's resignation, illness, or death.  The first Vice President, Humberto De La Calle Lombana, took office on August 7, 1994.Colombia's bicameral congress consists of a 102-member Senate and a 161-member House of Representatives.  Senators are elected on the basis of a nationwide ballot, while representatives are elected on a regional basis.  The country's capital, Santa Fe de Bogota, is considered a separate region and elects its own representatives.  Members may be re-elected indefinitely, and, unlike the previous system, there are no longer alternate congressmen.  Congress meets twice a year, and the president has the power to call it into special session when needed. Principal Government OfficialsPresident--Ernesto Samper PizanoVice President--Humberto de la Calle LombanaMinister of Foreign Relations--Rodrigo Pardo Garcia-PenaMinister of Foreign Trade--Daniel Mazuera GomezAmbassador to the U.S.--Carlos Lleras de la FuenteAmbassador to the OAS--Fabio Villegas RamirezAmbassador to the UN--Julio Londono ParedesColombia maintains an embassy in the United States at 2118 Leroy Place, NW, Washington, DC 20008 (tel. [phone]).  Colombian consulates are located in Atlanta, Boston, Chicago, Detroit, Houston, Los Angeles, Miami, New Orleans, New York, San Francisco, San Juan, Tampa, and Washington.DEFENSEColombia's Ministry of Defense, charged with the country's internal and external defense and security, has an army, navy (which includes a coast guard), air force, and national police under the leadership of a civilian minister of defense.  The armed forces number about 235,000 uniformed personnel:  145,000 military and 90,000 police.  Many Colombian military personnel have received training in the United States or in U.S. military schools in the former Panama Canal Zone.  The United States has provided equipment to the Colombian military through the military assistance program and foreign military sales.ECONOMYColombia undertook a profound economic reform program in 1990-94 that opened up its economy to international trade and investment.  The government has pursued prudent fiscal, exchange rate, and monetary policies and, since 1990, has implemented sweeping changes in the areas of finance, labor, exchange rates, and trade.  These measures have been largely responsible for the sustained economic growth enjoyed by Colombia; 3.8% average GDP growth during the 1990-93 period, and a robust 5.3% in 1993.In 1993, economic growth was accompanied by a decline in inflation (from 25.1% in 1992 to 22.6% in 1993) and a drop in unemployment (from 10.3% in 1992 to 7.9% in 1993) due in large part to tight fiscal and monetary policies.  Economic growth in Colombia in 1993 was led by public and private investment and domestic aggregate demand, compensating for a less dynamic external sector.  Private investment showed a healthy increase, 37% in real terms, while public investment was up 15%.  Private and public consumption rose by 8.8% and 17.8%, respectively.  Public spending was a major stimulus to growth.  Government spending grew by 43%, thanks to higher revenues from sales taxes and import duties.  Colombia's GDP is expected to grow by 5% for 1994.Colombia is the only major Latin American country which did not have to reschedule its external debt during the debt crisis of the 1980s.  The nation paid both principal and interest to its foreign creditors.  Today it enjoys one of the highest credit ratings in the region.  Colombia's total foreign debt was  $17.7 billion at the end of 1993, low relative to GDP, while its debt service ratio was 32%.  With a strong net international reserves position ($7.9 billion at the end of 1993), Colombia has successfully re-entered the international capital markets in Europe, Japan, and the United States.Mining and EnergyColombia is well-endowed with minerals and energy resources.  It has the largest coal reserves in Latin America, is second to Brazil in hydroelectric potential, and possesses Latin America's fourth-largest oil and gas reserves.  It also possesses significant amounts of ferronickel, gold, silver, platinum, and emeralds.The recent discovery of 2 billion barrels of high-quality oil at the Cusiana and Cupiagua fields, about 125 miles east of Bogota, assures Colombia's crude oil self-sufficiency until well into the next decade.  Production from those fields is expected to reach 150,000 barrels per day (b/d) by mid-1995, and rise to 500,000 b/d early in 1998.  However, refining capacity cannot satisfy domestic demand, so some refined products, especially gasoline, must be imported.  Plans for the construction of a new refinery are under development.  Total crude oil production in 1993 was 453,000 b/d; about 184,000 b/d were exported.Coal production totaled 21.7 million metric tons (mt) in 1993.  Production from El Cerrejon--the world's largest open pit coal mine, located on Colombia's Guajira Peninsula--accounted for 65% of that amount.  Colombia's exports of 18.4 million mt of steam coal in 1994 made it the world's fourth-largest exporter of this commodity.  Private and public investment in Colombia's coal fields and related infrastructure projects are expected to enable the country to export about 35 million mt at the beginning of the next decade.While Colombia has vast hydroelectric potential, a prolonged drought in 1992 forced severe electrical rationing throughout the country until mid-1993.  The consequences of the drought on electricity-generating capacity has caused the government to commission the construction or upgrading of 10 thermoelectric power plants.  Half will be coal-fired; half will be fired by natural gas.  The government has also begun awarding bids for the construction of a natural gas pipeline system that will extend from the country's large gas fields to its major population centers.  Plans call for the completion of this project, which will make natural gas available to millions of Colombian households, by the middle of the next decade.TradeColombia had a $1.6-billion trade deficit in 1993.  Imports in 1993 reached $9 billion--51% above the 1992 level.  Imports of capital goods rose by 86%, intermediate goods imports were up 16%, and imports of consumption goods (most of them durables) jumped by 101%.  The sharp rise in imports resulted principally from the trade liberalization program begun in 1991.  Exports totaled $7.4 billion in 1993; an increase of only 2%.  The relatively small increase was due to Colombia's strong peso and to the drop in international prices for major exports such as crude oil, coffee, coal, and ferronickel.  Colombia's non-traditional exports compensated for the weak performance of traditional exports.  The value of non-traditional exports rose 11%, with strong showings coming from exports of emeralds, sugar, cut flowers, fruit, textiles, and leather products.  Non-traditional goods accounted for 56% of total exports in 1993.The United States is Colombia's principal trading partner, purchasing 37% of Colombia's exports in 1993.  Other important trading partners for Colombia are Venezuela, Japan, Germany, and Panama.  Diplomatic relations with a number of Pacific nations were established during the Gaviria administration.  Regular diplomatic exchanges with Japan, China, South Korea, and other Asian nations are designed to open these markets to Colombian products.Foreign InvestmentIn 1991 and 1992, the government passed laws to stimulate foreign investment in nearly all sectors of the economy.  The only activities closed to foreign direct investment are defense and national security, disposal of hazardous wastes, and real estate (the latter restriction to control money laundering).  Colombia established a special entity, Coinvertir, to assist foreigners in making investments in the country.  Colombia received $436 million in non-petroleum related foreign investment in 1993.  Major foreign investment projects underway include the $6-billion development of the Cusiana and Cupiagua oil fields, development of coal fields in the north of the country, and the recently concluded licensing for establishment of cellular telephone service.  The United States accounted for 63% of the $4.4-billion stock of non-petroleum foreign direct investment in Colombia at the end of 1993.Industry and AgricultureThe most industrially diverse member of the five-nation Andean Pact, Colombia has four major industrial centers--Bogota, Medellin, Cali, and Barranquilla, each located in a distinct geographical region.  Colombia's industries include textiles and clothing, leather products, processed foods and beverages, paper and paper products, chemicals and petrochemicals, cement, construction, iron and steel products, and metalworking.Agriculture accounted for 21% of Colombia's GDP in 1993.  Its diverse climate and topography permits the cultivation of a wide variety of crops.  In addition, all regions yield forest products, ranging from tropical hardwoods in the hot country to pine and eucalyptus in the colder areas.Cacao, sugar cane, coconuts, bananas, plantains, rice, cotton, tobacco, cassava and most of the nation's beef cattle are produced in the hot regions from sea level to 1,000 meters elevation.  The temperate regions, between 1,000 and 2,000 meters, are better suited for coffee, certain flowers, corn and other vegetables, and fruits such as citrus, pears, pineapples, and tomatoes.  The cooler elevations, between 2,000 and 3,000 meters, produce wheat, barley, potatoes, cold-climate vegetables, flowers, dairy cattle, and poultry.Narcotics Cultivation and ControlColombia is the world's leading supplier of cocaine and is the source of tons of refined cocaine, heroin, and marijuana shipped to the United States and Europe each year.  Although the yield of Colombian opium poppies is low, Colombia now has more illicit poppy cultivation than Mexico.  In 1993, Colombia closed a bloody chapter in its continuing war against narcotics trafficking with the death of drug lord Pablo Escobar and the crippling of his notorious Medellin drug cartel.  The remaining Cali and other Colombian drug cartels, among the most sophisticated criminal organizations in the world, virtually control cocaine processing as well as international wholesale distribution chains and markets. Colombia is engaged in a broad range of narcotics control activities.  In Colombia's traditional cannabis growing zones, where intensive eradication in previous years had virtually destroyed the crop, there was a resurgence of cultivation in 1993 to an estimated 5,000 hectares.  Through aerial spraying and manual eradication, Colombia has attempted to keep opium poppy cultivation from expanding.  The government has committed itself to pursuing eradication of all illicit crops, including coca and marijuana, during 1995.  Authorities aggressively fumigate using a safe agricultural herbicide.Corruption and intimidation by traffickers complicate the drug-control efforts of many Colombian institutions.  A major overhaul of the Colombian judicial system shows promise, although changes have yet to produce successful prosecution of narcotics traffickers.  Colombia passed a revised criminal procedures code in 1993 which permits traffickers to surrender and negotiate more lenient sentences in return for cooperating with prosecutors.  The Colombian constitution now prohibits the extradition of Colombian nationals, but the government does extradite citizens of other countries. FOREIGN RELATIONSColombia seeks diplomatic and commercial relations with all countries, regardless of their ideologies or political or economic systems.  In the 1980s, it broadened its bilateral and multilateral relations, joining the Non-Aligned Movement (which it will chair 1994-97), the Contadora Group, and the Group of Eight (now the Rio Group).  In addition, Colombia has signed a free trade agreement with Chile and has negotiated such an accord with Mexico and Venezuela. Colombia has traditionally played an active role in the UN, the Organization of American States, and their subsidiary agencies.  Former President Gaviria became Secretary General of the OAS in September 1994.  Colombia hosted the UN Conference on Trade and Development (UNCTAD) meeting in February 1992 and led negotiations for the establishment of the Andean Common Market, or Andean Pact, designed to reduce trade barriers and coordinate economic policies among the Andean countries of Ecuador, Peru, Bolivia, Colombia, and Venezuela.Colombia regularly participates in international forums on money laundering, chemical controls, and drug abuse prevention.  Colombia participated actively in the Organization of American States' drug body (CICAD) and in the CICAD-sponsored Caribbean Task Force meeting on money laundering, but few measures have been adopted.  Colombia continues to be one of the primary money-laundering concerns in the Western Hemisphere.  While the Colombian Government ratified the 1988 UN convention on narcotics in 1993--the last of the Andean governments to do so--it took important reservations, notably to the money-laundering measures, asset forfeiture and confiscation provisions, and extradition clauses.  The convention will be formally ratified in Colombia only after favorable review by the constitutional court. U.S.-COLOMBIAN RELATIONSIn 1822, the United States became one of the first countries to recognize the new republic and to establish a resident diplomatic mission.  Today, about 17,500 U.S. citizens live in Colombia, most of them dual nationals.  The U.S. and Colombian Governments closely cooperate and consult on bilateral issues, especially in efforts to curb narcotics trafficking and trade.Recent U.S. bilateral assistance has focused on mutual efforts against narcotics trafficking and the modernization of Colombia's judicial system.  The U.S. Agency for International Development (USAID) commits significant resources to judicial reform, focusing on the criminal justice sector, including the five regional courts and prosecutorial units charged with handling narcotics and terrorism cases; it assists the prosecutor general's office as well.  In 1993, USAID sponsored training for more than 640 judges and prosecutors and 920 investigators, forensic technicians, and others.  Colombia also uses USAID-generated funds to help finance local projects encouraging the voluntary eradication of opium poppy.  The U.S. and Colombian Governments worked closely on methodology used in Colombia's 1993 national drug abuse survey--the country's first--which indicated that Colombians increasingly abuse drugs. Trade DevelopmentThe United States is Colombia's principal trading partner, with about 38% of annual imports.  Colombia now benefits from duty-free entry (for a 10-year period) for the majority of its exports to the United States under the Andean Trade Preference Act.  The two countries have signed agreements on asset sharing, chemical control, and money laundering.  Colombia improved protection of U.S. intellectual property rights through the adoption of the Andean Pact but remains on the U.S. Special 301 watch list due to continuing concerns over deficiencies in licensing, patent regulations, and copyright protection. The petroleum and natural gas, coal mining, chemical, and manufacturing industries attract the greatest U.S. investment interest.  U.S. investment accounted for 63% ($2.7 billion) of the total $4.3 billion in foreign direct investment registered between 1967 and mid-1993.  Worker rights and conditions in the U.S.-dominated sectors are superior to prevailing ones.  Examples include shorter-than-average working hours, high wages, and compliance with health and safety standards above the national average. Principal U.S. Embassy OfficialsAmbassador--Myles R.R. FrechetteDeputy Chief of Mission--John B. CraigPolitical Counselor--Thomas P. HamiltonEconomic Counselor--John L. PittsConsul General--Thomas L. Randall, Jr.Commercial Counselor--Kathryn HaughtonAdministrative Counselor--Thomas TigheDefense Attache--Col. Stephen W. JustusAgricultural Attache--Clyde GumbmannPublic Affairs Officer (USIS)--L.W. KoengeterRegional Security Officer--Bob BrittainUSAID Director--Lars KlaussenBarranquillaConsular Officer--Marvin BrownThe U.S. embassy in Colombia is located at Calle 38, No. 8-61, Bogota  (tel. [phone]).  The U.S. consulate in Barranquilla is located at the Centro Commercial Mayorista, Calle 77 Carrera 68 (tel. 45-7088).  The mailing address for the embassy and the consulate is APO AA 34038.  (###)</text>
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        <text>U.S. Department of State Background Notes:  China, November 1995 Bureau of Public Affairs  November 1995 Official Name:  People's Republic of China  PROFILE  Geography  Total Area: 9.6 million sq. km. Slightly larger than U.S.; world's  third-largest country (after Russia and Canada). Cities: Capital--Beijing. Other major cities--Shanghai, Tianjin,  Guangzhou, Shenyang, Wuhan, Chengdu. Terrain: Mostly mountainous, high plateaus, deserts in west; plains,  deltas, and hills in east. Climate: Tropical in south to subarctic in north.  People  Nationality: Noun and adjective--Chinese (sing. and pl.). Population (1993): About 1.2 billion Growth rate (1993): 1.4%.  Health (1993): Infant mortality rate--3/1,000. Life expectancy--68 yrs.  male, 72 yrs. female. Ethnic groups: Han Chinese 93%; Zhuang, Uygur, Hui, Yi, Tibetan, Miao,  Manchu, Mongol, Buyi, Korean, and other nationalities 6.7%. Religion: Officially atheist; most important elements of religion are  Confucianism, Taoism, and Buddhism; Muslim 2%-3%, Christian 1%. Language: Standard Chinese (Putonghua, or Mandarin) plus many local  dialects. Education: Years compulsory--nine.  Literacy--73%. Attendance (est.)-- 80%. Work force (650 million): Agriculture and forestry--60%. Industry--22%.  Services, including commerce--8%.  Government  Type: Communist party-led state. Constitution: December 4, 1982. Independence: Unification under the Qin (Ch'in) Dynasty 221 BC; Qing  (Ch'ing or Manchu) Dynasty replaced by  a republic on February 12, 1912;  People's Republic established October 1,1949. Branches: Executive--president, vice president, State Council, premier.  Legislative--unicameral National People's Congress.  Judicial--Supreme People's Court.  Economy  GNP (1993): $322 billion. Per capita GDP: $268. Annual real growth rate (1993): 13%. Natural resources: Coal, iron ore, crude oil, mercury, tin, tungsten,  antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead,  zinc, uranium, world's largest hydroelectric potential. Agriculture: among the world's largest producers of rice, potatoes,  sorghum, peanuts, tea, millet, barley, and pork; commercial crops  include cotton, other fibers, and oilseeds; produces variety of  livestock products; basically self-sufficient in food. Trade (1993): Exports--$91.8 billion:  textiles; garments;  telecommunications and recording equipment; petroleum; minerals.  Partners--Hong Kong, Japan, EU, U.S., ASEAN. Imports--$103.9 billion:  specialized industrial machinery; chemicals; manufactured goods; steel;  textile; yarn; fertilizer. Partners--Hong Kong, Japan, EU, U.S., ASEAN.  U.S.-CHINA RELATIONS  The United States seeks constructive relations with a strong, stable,  open, and prosperous China that is integrated into the international  community and acts as responsible member of that community. The U.S.  needs a constructive working relationship with China because:  --  The People's Republic of China (P.R.C.) plays a major role in the  post-Cold War world; --  It is the world's most populous nation (about 1.2 billion people)  and the third-largest in land mass (after Russia and Canada); --  It has nuclear weapons, is a growing military power, and plays a key  role in regional stability; --  As one of the five permanent members of the UN Security Council,  China has veto power over Security Council resolutions dealing with key  multilateral issues, including international peacekeeping and the  resolution of regional conflicts; and --  China is undergoing extraordinary economic growth and promises to be  a preeminent economic power early in the next century.  In the 1972 Shanghai Communique signed during President Nixon's historic  trip to China, the United States adopted a "one-China policy." This  policy acknowledges that Chinese on both sides of the Taiwan Strait  maintain that there is only one China and that Taiwan is part of China.  In 1979, the United States established relations with the P.R.C. and  transferred diplomatic recognition from Taipei to Beijing. A 1979 Joint  Communique reflected this change, and Beijing agreed that the American  people would continue to carry on commercial, cultural, and other  unofficial contacts with the people of Taiwan. The 1979 Taiwan Relations  Act, and a third Joint Communique signed in 1982, further defined the  U.S.-China relationship as well as unofficial U.S. relations with the  people of Taiwan.  In September 1993, President Clinton launched a policy of comprehensive  engagement with China to pursue U.S. interests through intensive, high- level dialogue with the Chinese. This policy seeks:  --  Constructive Chinese participation in the UN Security Council and in  the resolution of regional conflicts to enhance global peace and  security; --  Active participation by China in multilateral nonproliferation  regimes, which is necessary to halt the spread of weapons of mass  destruction and their delivery systems; --  Economic and trade relations with China that meet U.S. economic  interests; --  Respect for internationally recognized standards of human rights and  the rule of law in China; and --  Chinese cooperation on global issues, particularly to combat alien  smuggling and narcotics trafficking and to improve protection of the  environment.  Regional security remains a key issue in the U.S.-China relations. The  United States has a long-term interest in peace and stability in Asia;  there are approximately 100,000 American soldiers stationed in the Asia- Pacific region. China plays a key role in regional security issues,  including resolving the North Korean nuclear issue, reaching a peaceful  settlement of the territorial dispute over the South China Sea and  Spratly Islands, and building democracy and peace in Cambodia. The  United States supports China's active participation in evolving regional  security institutions, most prominently the ASEAN--Association of  Southeast Asian Nations-Regional Forum and the Northeast Asia Security  Dialogue.  With regard to other nuclear and security issues, the United States and  China have agreed to work together to try to achieve an international  convention banning the production of fissile materials for nuclear  weapons or other nuclear explosive devices. China is a signatory to the  Nuclear Non-Proliferation Treaty (NPT), has declared it will sign a  nuclear test ban treaty in 1996, and has banned the exports of  intermediate and long-range missiles. In May 1995, China voted in favor  of indefinite extension of the NPT, a top priority in U.S. foreign  policy.  The United States continues to urge China to cease nuclear  tests immediately and sign a zero-yield comprehensive test ban treaty  (CTBT); stop all nuclear cooperation with Iran's nuclear power  generation program; become a member of the Missile Technology Control  Regime (MTCR) to further restrict transfers of missile components and  technology; and control strictly exports of chemical and biological  weapon precursors.  Trade and Investment  China's economy will soon be among the world's largest. The country has  a quarter of the world's population--a vast pool of potential consumers  for U.S. products and services--and market-oriented reforms have  recently helped generate very rapid economic growth. The World Bank has  predicted that China's economy will grow  8%-10% per year until the year  2000 and has estimated that China's economic output will reach $10  trillion dollars by early in the next century.  With this rapid economic expansion, China's market will be increasingly  important for United Sates commercial interests. The U.S. currently  grants China most-favored-nation trading status (see Government and  Political Conditions). In some sectors, access to the Chinese market has  become a critical element of U.S. producers' growth strategies. U.S.- China trade has continued to climb, reaching $47.7 billion in 1994--up  from $40.3 billion the previous year. Recently, however, China's exports  to the U.S. have accounted for most of the growth in bilateral trade.  The U.S. merchandise trade deficit with China was about $29.4 billion in  1994, exceeded only by the U.S. bilateral trade deficit with Japan. In  order to build a balanced and sustainable bilateral trading  relationship, it will be essential to obtain greater market access for  U.S. products and services in China  Seeking to participate in China's rapid economic growth, major  multinational corporations from around the world have shown great  interest in investing in China. The United States is the third-largest  source of such investment, after Hong Kong and Taiwan. Globally, China  is second only to the United States as recipient of foreign direct  investment.  The increasingly important U.S. economic and trade relations with China  are key to the Administration's "comprehensive engagement" strategy. In  economics and trade, this strategy has two main elements.  --  First, the United States seeks to fully integrate China into the  global, market-based economic and trading system. China's participation  in the global economy will nurture the process of economic reform and  increase China's stake in the stability and prosperity of East Asia. --  Second, the United States seeks to expand U.S. exporters' and  investors' access to the Chinese market. As China grows and develops,  its needs for imported goods and services will grow even more rapidly.  China is now in its tenth year of negotiations for accession to the  World Trade Organization (WTO)--formerly the General Agreement on  Tariffs and Trade (GATT). All new WTO members are required to comply  with certain fundamental trading disciplines and offer substantially  expanded market access to other members of the organization.  Securing China's accession to the WTO on these terms is necessary for  China's economic transformation, for stability and growth in the U.S.  and other WTO-member economies, and for the integrity of the  international trading system. The United States continues to work with  China and other WTO members toward a commercially viable accession  protocol.  Many major trading entities--among them the United States, the European  Union, and Japan--have shared concerns with respect to China's  accession. These concerns include efforts to obtain satisfactory market  access offers for both goods and services, full trading rights for all  potential Chinese consumers and end-users, non-discrimination between  foreign and local commercial operations in China, the reduction of  monopolistic state trading practices, and the elimination of arbitrary  or non-scientific technical standards.  The United States and China also maintain a very active dialogue on  bilateral trade issues. In the past year, the two sides have concluded  agreements on the protection of intellectual property rights (IPR),  textiles, and satellite launches. Additional talks are scheduled this  year on civil aviation, export financing, maritime services, and a  variety of other commercial issues.  U.S. and Chinese negotiators meet regularly to review progress in  implementing these and other important commercial agreements, such as  the bilateral agreement on enforcement of intellectual property rights.  In areas where China has failed to comply with its international  commitments, the Administration has exercised its legislative authority  to conduct investigations and, when necessary, propose appropriate trade  sanctions. These efforts will not only expand the commercial  opportunities open to U.S. exporters in China but also contribute to  China's efforts to bring its trade regime into compliance with the WTO  and with other international commercial standards.  The United States continues to expand its export promotion efforts and  its scientific and technical exchange programs in China. During Energy  Secretary O'Leary's 1995 visit to China, the United States and China not  only witnessed the signing of commercial agreements that will facilitate  billions of dollars in new American exports but also established the  framework for scientific, technical, and economic cooperation in  developing China's sustainable energy development program. Commerce  Secretary Brown's visits to China have been equally successful in  helping to build long-term economic and business ties between China and  the United States.  The U.S. economic relationship with Hong Kong is closely tied to U.S.- China relations. Under the 1984 Sino-British Joint Declaration, Hong  Kong will become a Special Administrative Region (SAR) of the P.R.C. on  July 1, 1997. U.S. concerns over this transition include economic and  investment issues. The United States has substantial economic and social  ties with Hong Kong, with an estimated $8 billion to $10 billion  invested there. There are 900,000 U.S. firms and 30,000 Americans  resident in Hong Kong. The United States is Hong Kong's largest market-- importing almost $10 billion in 1993--and Hong Kong is America's  fourteenth-largest trading partner--$9 billion in U.S. exports in 1993.  The United States and China both are members of the Asia-Pacific  Economic Cooperation forum (APEC). At the November 1994 APEC summit in  Bogor, Indonesia, President Clinton, Chinese President Jiang Zemin, and  the other APEC leaders pledged to meet the goal of free and open trade  and investment in the Asia-Pacific region by the year 2020.  Principal U.S. Embassy Officials  Ambassador--vacant Charge d'Affaires--Scott S. Hallford Political Officer--William A. Stanton Economic Officer--Jack L. Gosnell Commercial Officer--Ying Lam  The U.S. embassy in China is located at Xiu Shui Bei Jie 3, 100600,  Beijing; tel. [86] (10) 532-3831; fax [86] (10) 532-6422.  GOVERNMENT AND POLITICAL CONDITIONS  China has been a one-party state controlled by the Chinese Communist  Party (CCP) since 1949. The P.R.C. was founded that year following the  communist victory in a civil war with the ruling Nationalist Chinese;  the Nationalists fled to Taiwan.  China is ruled by a CCP Politburo and a shrinking circle of retired but  still powerful senior leaders such as Deng Xiaoping. Despite continued  official adherence to Marxism-Leninism, in recent years economic  decision-making has become less ideological, more decentralized, and  increasingly market-oriented. The P.R.C. Government position is that  China is developing a "socialist market economy with Chinese  characteristics."  The Chinese Government has always been subordinate to the CCP; its role  is to implement party policies.  The primary instruments of state power  are the State Council, an executive body corresponding to a cabinet; and  the National People's Congress (NPC), a legislative body.  Members of  the State Council include the premier, a variable number of vice  premiers, nine state councilors, the heads of ministries, and the heads  of other commissions and agencies attached to the State Council.  Under the Chinese constitution, the NPC theoretically is the state's  leading government body.  Members are elected by secret ballot for a  five-year term by provincial-level people's congresses. It meets  annually for about two weeks to review major new policy initiatives  presented to it by the State Council after endorsement by the Communist  Party's Central Committee. Although the NPC generally approves these  initiatives, NPC committees debate in closed sessions, and changes may  be made to accommodate alternative views.  Although traditionally not considered independent of the party and  government, China's judiciary continues to undergo rapid reform. The  drive to establish a functioning legal system first began in 1979.  China's 1982 constitution--adopted by the NPC--emphasizes the rule of  law under which even party leaders are held accountable. A mainstay of  China's legal system is the use of mediation committees, groups of  citizens who resolve about 90% of civil disputes and some minor criminal  cases at no cost to the parties. Trained lawyers and legal aides remain  scarce, complicating delivery of legal services in the courts. An  Administrative Procedure Law allows citizens to sue officials for abuse  of authority or malfeasance. The highest court of appeal for civil or  criminal cases is the Supreme People's Court.  Fundamental human rights provided for in China's 1982 constitution are  frequently ignored in practice, particularly when the citizens challenge  the CCP's political authority. Those charged with political offenses--as  opposed to common crimes--are frequently treated harshly and  arbitrarily. Freedom of association, religion, speech, and the press are  severely restricted in practice.  Following the P.R.C. Government's suppression of the democracy movement  at Tiananmen Square in June 1989, the U.S. and other nations imposed a  number of sanctions against China. Some of these Tiananmen-era U.S.  sanctions remain in place. The Trade Act of 1974--specifically, the  Jackson-Vanik amendment--requires an annual review of China's emigration  record for China to retain its most-favored-nation trading status (MFN).  This annual review remains in effect and, since 1990, has been the focus  of efforts in both the executive and legislative branches to assess our  overall relationship with China, including China's performance on human  rights issues.  In May 1993, President Clinton signed an Executive Order tying renewal  of China's MFN in 1994 to progress in several human rights areas.  Although China did not achieve "overall significant progress" in certain  areas identified in the Executive Order, the President decided to renew  China's MFN status on May 26, 1994. He noted that China met the two  mandatory requirements on immigration and prison labor.  Taking into account these results and other vital U.S. interests, and  convinced that the time had come for a new approach, the President  decided to de-link the annual MFN process from China's human rights  performance. At the same time, the President decided to adopt a new  human rights strategy, maintaining human rights concerns as an essential  part of our engagement with China but in a broader context. The  President also ordered a several additional steps to support those  seeking to foster the rule of law and a more open civil society in  China.  The United States and China have conducted seven rounds of bilateral  dialogue on human rights issues since October 1993. The United States  continues to press China on core human rights concerns: release of  prisoners of conscience and medical parole cases; resumption of  negotiations with the Dalai Lama on protecting the distinctive heritage  and culture of Tibet; and concluding an agreement with international  humanitarian organizations to permit visits to Chinese prisons and  prisoners. In addition, U.S. concerns over Hong Kong's transition to  Chinese rule in 1997 include ensuring continued respect for human rights  and the rule of law in Hong Kong.  The United States has been disappointed with China's progress on human  rights since MFN renewal in May 1994. The United States continues to  urge China to adhere to internationally recognized human rights  standards.  Principal Officials  President and Chinese Communist Party General Secretary--Jiang Zemin Vice President--Rong Yiren Premier of the State Council--Li Peng Minister of Foreign Affairs--Qian Qichen Ambassador to the U.S.--Li Daoyu Ambassador to the UN--Qin Huasun  China maintains an embassy in the United States at 2300 Connecticut Ave.  NW, Washington, DC  20008; tel. [phone]/2502.  TRAVEL AND BUSINESS INFORMATION  The U.S. Department of State's Consular Information Program provides  Travel Warnings and Consular Information Sheets. Travel Warnings are  issued when the State Department recommends that Americans avoid travel  to a certain country. Consular Information Sheets exist for all  countries and include information on immigration practices, currency  regulations, health conditions, areas of instability, crime and  security, political disturbances, and the addresses of the U.S. posts in  the subject country. They can be obtained by telephone at [phone]  or by fax at [phone]. To access the Consular Affairs Bulletin  Board by computer, dial [phone], via a modem with standard  settings. Bureau of Consular Affairs' publications on obtaining  passports and planning a safe trip aboard are available from the  Superintendent of Documents, U.S. Government Printing Office,  Washington, DC 20402, tel. [phone].   Emergency information concerning Americans traveling abroad may be  obtained from the Office of Overseas Citizens Services at (202) 647- 5225.  Travelers can check the latest health information with the U.S. Centers  for Disease Control and Prevention in Atlanta, Georgia. A hotline at  [phone] gives the most recent health advisories, immunization  recommendations or requirements, and advice on food and drinking water  safety for regions and countries. A booklet entitled Health Information  for International Travel (HHS publication number CDC-94-8280, price  $7.00) is available from the U.S. Government Printing Office,  Washington, DC 20420, tel. [phone].   Information on travel conditions, visa requirements, currency and  customs regulations, legal holidays, and other items of interest to  travelers also may be obtained before your departure from a country's  embassy and/or consulates in the U.S. (for this country, see "Principal  Officials" listing in this publication).   Upon their arrival in a country, U.S. citizens are encouraged to  register at the U.S. embassy (see "Principal U.S. Embassy Officials"  listing in this publication). This may help family members contact you  en route in case of an emergency.   Further Electronic Information:  Consular Affairs Bulletin Board (CABB). Available by modem, the CABB  provides Consular Information Sheets, Travel Warnings, and helpful  information for travelers. Access at [phone] is free of charge to  anyone with a personal computer, modem, telecommunications software, and  a telephone line.  Department of State Foreign Affairs Network. Available on the Internet,  DOSFAN provides timely, global access to official U.S. foreign policy  information. Updated daily, DOSFAN includes Background Notes; Dispatch,  the official weekly magazine of U.S. foreign policy; daily press  briefings; directories of key officers of foreign service posts; etc.  DOSFAN is accessible three ways on the Internet:  Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html  U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis  by the U.S. Department of State, USFAC archives information on the  Department of State Foreign Affairs Network, and includes an array of  official foreign policy information from 1990 to the present. Priced at  $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and  Macintosh compatible) and are available from the Superintendent of  Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh,  PA 15250-7954. To order, call [phone] or fax [phone].  Federal Bulletin Board (BBS). A broad range of foreign policy  information also is carried on the BBS, operated by the U.S. Government  Printing Office (GPO). By modem, dial [phone]. For general BBS  information, call [phone].  National Trade Data Bank (NTDB). Operated by the U.S. Department of  Commerce, the NTDB contains a wealth of trade-related information,  including Country Commercial Guides. It is available on the Internet  (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202)  482-1986 for more information.  ============================== Background Notes Series -- Published by the United States Department of  State -- Bureau of Public Affairs -- Office of Public Communication --  Washington, DC  This information is in the public domain and may be reproduced without  permission; citation of this source is appreciated. (###)</text>
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        <text>U.S. Department of StateBackground Notes:  Chile, November 1995Bureau of Public AffairsNovember 1995Official Name:  Republic of ChilePROFILEGeographyArea:  756,945 sq. km. (302,778 sq. mi.); nearly twice the size of California.Cities:  Capital--Santiago (metropolitan area est. 5.2 million).  Other cities--Concepcion-Talcahuano (840,000); Vina del Mar-Valparaiso (800,000); Antofagasta (245,000); Temuco (230,000).Terrain:  Desert in north; fertile central valley; volcanoes and lakes toward the south, giving way to rugged and complex coastline; Andes Mountains on the eastern border.Climate:  Arid in north, like the Mediterranean in center, cool and damp in south.PeopleNationality:  Noun and adjective--Chilean(s).Population (1994):  13.8 million.Annual growth rate: 1.6%.Ethnic groups:  Spanish-Indian (mestizo), European, Indian.Religions:  Roman Catholic 89%; Protestant 11%.Language:  Spanish.Education:  Years compulsory--8.  Attendance--3 million.  Adult literacy rate--94%.Health:  Infant mortality rate--17/1,000.  Life expectancy of newborns--72 years.Work force (5.2 million):  Services and government--36%.  Industry and commerce--34%.  Agriculture, forestry, and fishing--14%.  Construction--7%.  Mining--2%.GovernmentType:  Republic.Independence:  September 18, 1810.Constitution:  Promulgated September 11, 1980; effective March 11, 1981; amended in 1989 and 1993.Branches:  Executive--president. Legislative--bicameral legislature.  Judicial--Supreme Court, court of appeal, military courts.Administrative subdivisions:  12 numbered regions, plus Santiago metropolitan region, administered by intendentes; regions are divided into provinces, administered by governors; provinces are divided into municipalities administered by mayors.Political parties:  Major parties include the Christian Democrat Party, the National Renewal Party, the Party for Democracy,  the Radical Party,  and the Socialist Party.  In 1993, the Communist Party did not win a seat.Suffrage:  Universal at 18, including foreigners legally resident for more than five years.Economy (1994)GDP:  $46.2 billion.Annual real growth rate:  4.3%.Per capita GDP:  $3,300.Natural resources:  Copper, timber, fish, iron ore, nitrates, precious metals, and molybdenum.Agriculture and fisheries (8% of GDP):  Products--wheat, potatoes, corn, sugar beets, onions, beans, fruits, livestock, fish.Industry (17% of GDP):  Types--mineral refining, metal manufacturing, food processing, fish processing, paper and wood products, finished textiles.Trade:  Exports--$11.5 billion:  copper, fishmeal, fruits, wood products, paper products.  Major markets--EU 29%, Japan 17%, U.S. 16%, Argentina 5%, Brazil 5%.  Imports--$10.9 billion:  petroleum, chemical products, capital goods, vehicles, electronic equipment, consumer durables, machinery.  Major suppliers--EU 24%, U.S. 21%, Brazil 10%, Japan 10%.U.S.-CHILEAN RELATIONSRelations between the two countries are better than at any other time in history.  Many members of the current Chilean Government were active in the opposition to Gen. Augusto Pinochet's 1973-89 military regime and appreciate the role played by the United States in Chile's democratic transition.The 1976 car bomb assassination in Washington, DC, of Orlando Letelier--a former Chilean ambassador to the United States and a member of President Salvador Allende's cabinet--and Ronni Moffitt, a U.S. citizen, caused a sharp deterioration in relations and led the U.S. Congress to ban security assistance and arms sales to Chile.Responding to the commitment by President  Patricio Aylwin's government to bring the case to justice in the Chilean judicial system, President Bush issued a finding in late 1990 that removed the sanctions.  The United States continued to press for justice in the Letelier-Moffitt case.  The Chilean special investigating judge found that a commander and an operations officer in the Pinochet-era secret police had ordered the assassination and sentenced them to prison.  The Chilean Government has made an ex gratia payment to the victims of the families.President Aylwin's state visit to the United States in May 1992 was the first by a Chilean official in more than 40 years.  President Eduardo Frei's  working visit to the United States in June 1994 was his first trip outside of South America as head of state.The Frei government has sought a "special relationship" with the United States.  President Clinton and President Frei agreed to a consultative framework to increase the scope and frequency of consultations on issues of common concern.Trade and InvestmentThe United States is Chile's third-largest market (after the EU and Japan) for exports and also Chile's largest source of imports after the EU.  Two-way trade for 1994 totaled $ 4.1 billion.  The U.S. had an overall trade surplus with Chile of $450 million for 1994.  In certain sectors, such as agriculture, Chile's exports to the U.S. greatly exceed U.S. sales to Chile, although lately the margin has narrowed somewhat.Chile has a diversified free market economy and one of the most educated work forces in Latin America.  Under the democratic government which took office in 1990, the pursuit of macro-economic stability within the framework of a market economy has become a national goal.Chile has taken  several steps to open both domestic and foreign markets.  It lowered tariffs on nearly all imports from 15% to 11% in 1991.  Since 1991, the country has negotiated several agreements on free trade, trade liberalization, and investment protection.  Chile is currently the only country that the Clinton Administration has identified as meeting NAFTA criteria to negotiate a free trade agreement; it is expected to be the next nation to enter into a free trade agreement with the U.S.  The country also is one of two Latin American nations which belongs to the Asia-Pacific Economic Cooperation forum, of which the U.S. is also a member.Chile also has become much more integrated with world financial markets; private firms have increasingly raised capital in international markets and sold stock overseas.  Both domestic and foreign investment have reached record levels, and the economy has registered large capital account surpluses.  Investment inflows have been so strong that the government has felt obliged to impose non-interest-bearing reserve requirements on foreign borrowing to discourage inflows of short-term capital attracted by high Chilean interest rates.The country is enjoying a major boom in direct foreign investment in its mineral sector based upon its strong geological base and the favorable investment regime which the democratic government has maintained.  Major U.S., Canadian, U.K., and Japanese natural resource firms have invested in large new copper and gold mines.  Several important new projects are planned.    Other promising sectors of the Chilean economy for direct investment by U.S. businesses are forestry, manufacturing, and financial services.  Virtually all sectors of the economy are open to foreign/U.S. ownership or partial ownership.In June 1991, the U.S. and Chile signed an agreement to forgive a portion of Chile's PL 480 (Food for Peace) debt to the U.S. under the Enterprise for the Americas Initiative.  Chile and the U.S. in 1993 signed an environmental framework agreement under which Chilean payments on aid loans will be used for domestic environmental projects.Principal U.S. Embassy OfficialsAmbassador--Gabriel Guerra MondragonDeputy Chief of Mission--Charles ShapiroPolitical Counselor--Phillip T. ChicolaEconomic Counselor--Anthony J. InterlandiChief, Consular Section--Richard S. MannCommercial Attache--Carlos F. PozaDefense Attache--Capt. Thomas L. Breitinger, USNUSAID Representative--Thomas NicastroThe U.S. embassy and consulate in Santiago are located at 2800 Andres Bello Avenue, Las Condes, (tel. [phone]; fax: [phone]).  The mailing address is Casilla 27-D, Santiago, Chile.GOVERNMENT AND POLITICAL CONDITIONSFrom a 1973 coup until 1989, Chile was ruled by a repressive military regime--headed by Gen. Augusto Pinochet--marked in its first years by serious human rights violations.  In its later years, the regime began to reinstitutionalize political life and permit broad freedom of assembly, speech, and association, including trade union activity.In contrast to its political repressiveness, the government sought to boost Chile's economic liberalization.  During its 16 years in power, the military moved Chile away from economic statism toward a largely free market economy, fostering an increase in domestic and foreign private investment.General Pinochet was denied another eight-year term as President in a national plebiscite in 1988.  In December 1989, Christian Democrat Patricio Aylwin, running as the candidate of a 17-party center-left coalition, was elected President.  After a four-year transition period, former President Eduardo Frei--of the Christian Democrat Party--was elected President for a six-year term and took office in March 1994.Chile's constitution was approved in a September 1980 national plebiscite by a two-thirds majority.  It entered into force in March 1981.  After Pinochet's defeat in the 1988 plebiscite, the constitution was reformed to ease provisions for amending the constitution, increase the number of senators,  diminish the role of the national security council, and equalize the number of civilian and military members.  A 1994 amendment set the presidential term at six years.  The Frei government has proposed additional reforms to strengthen civil control of the military and eliminate constraints on popular sovereignty.Chile's bicameral congress has a 47-seat Senate and a 120-member Chamber of Deputies.  Senators serve for eight years with staggered terms; the government has proposed to eliminate the nine appointive Senate seats.  Deputies are elected every four years.  The last congressional elections were held in December 1993.  The current Senate contains 21 members from the governing coalition, 17 from the rightist opposition, and the eight still-living senators designated in 1989 during the Pinochet regime for eight-year terms.  The congress is located in the port city of Valparaiso, about 140 kilometers (84 mi.) west of the capital, Santiago.Chile's congressional elections are governed by a unique binomial system that rewards large coalition slates and punishes small independent parties.  Each coalition can run two candidates for the two Senate and Chamber seats apportioned to each type of electoral district.  Typically, the two largest coalitions split the seats in a district.  Only if the leading slate outpolls the second place finisher by a margin of more than 2-to-1 does the winner gain both seats.The political parties with the largest representation in the current Chilean Congress are the centrist Christian Democrat Party and the center-right National Renewal Party.  The Communist Party and two green (ecological) parties failed to gain a seat in the 1993 elections.Chile's judiciary is independent and includes a Supreme Court, a court of appeal, and a system of military courts.Chile's armed forces are subject to civilian control exercised by the president through the minister of defense.  However, under the 1980 constitution, the services enjoy considerable autonomy, and the president cannot remove service commanders on his own authority.The Chilean police comprise two forces:  a national, uniformed police force (carabineros) responsible for law enforcement, traffic management, narcotics suppression, border control, and counterterrorism; and a smaller, plainclothes investigations police force.  Both forces are nominally under the control of the Minister of Defense but were placed under the operational control of the Interior Minister with the return of democracy in 1990.Principal Government OfficialsPresident--Eduardo Frei Ruiz-TagleForeign Affairs--Jose Miguel InsulzaAmbassador to the United States--John Biehl Del RioAmbassador to the Organization of American States (OAS)--Edmundo Vargas CarrenoAmbassador to the United Nations--Juan Somavia AltamiranoChile maintains an embassy in the United States at 1732 Massachusetts Avenue NW, Washington, DC 20036  (tel. [phone]).TRAVEL AND BUSINESS INFORMATIONThe U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel.  [phone].Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.Further Electronic Information:Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:Gopher:  dosfan.lib.uic.eduURL:  gopher://dosfan.lib.uic.edu/WWW:  http://dosfan.lib.uic.edu/dosfan.htmlU.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.==============================Background Notes Series --  Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DCThis material is in the public domain and may be reproduced without permission; citation of this source is appreciated.(###)</text>
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        <text>US DEPARTMENT OF STATEPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSBACKGROUND NOTE:  Chad, May 1992Official Name:  Republic of ChadPROFILEGeographyArea:  1,284,634 sq. km. (496,000 sq. mi.); about the size ofTexas, Oklahoma, and New Mexico combined.  Cities:Capital--N'Djamena (pop. 500,000 est.).  Other majorcities--Moundou (pop. 120,000), Abeche, Sarh.  Terrain:  Desert,mountainous north, large arid central plain, fertile lowlands inextreme southern region.  Climate:  Northern desert--very drythroughout the year; central plain--hot and dry, with brief rainyseason mid-June to mid-September; southern lowlands--warm and morehumid with seasonal rains from late May to early October.PeopleNationality:  Noun and adjective--Chadian(s).  Population:  5.5million.  Annual growth rate:  2.5%.  Density:  4.2 per sq. km. (11per sq. mi.).  Life expectancy--46.  Infant mortalityrate--132/1,000.  Ethnic groups:  200 distinct groups--includingToubou (Gourane), Arabs, Fulbe, Kotoko, Hausa, Kanembou, Bagirmi,Boulala, Zaghawa, Hadjerai, and Maba--most of whom are Muslim, inthe north and center. Non-Muslims, Sara (Ngambaye, Mbaye, Goulaye),Moudang, Moussei, Massa--in the south.  About 2,500 French citizenslive in Chad. Religions:  Muslim, Christian, traditional.Languages:  French and Arabic (official); 200 indigenous Chadianlanguages.GovernmentType: Republic.  Independence:  August 11, 1960.        Branches: Executive--president (head of state, president ofthe council of ministers), council of ministers.Legislative--Provisional Council of the Republic.  Judicial--courtof appeals, several lower courts.        Political party: Six political parties as of May 18, 1992:Patriotic Salvation Movement (MPS), Rally for Democracy andProgress (RDP), Democratic Union for Progress in Chad (UDPT),National Rally for Democracy and Progress (VIVA-RNDP), Union forDemocracy and the Republic (UDR), Chadian People's Assembly (RPT).Suffrage:  None.        Administrative subdivisions:  14 prefectures, 54subprefectures, 27 administrative posts, and 9 municipalities.        Flag:  Blue, yellow, and red vertical bands from left toright.EconomyGDP (est.):  $1 billion.  Per capita income (est.):  $200.        Natural resources:  Petroleum (unexploited), natron (sodiumcarbonate), kaolin.        Agriculture:  Products--cotton, gum arabic, livestock,fish, peanuts, millet, sorghum, rice, sweet potatoes, cassava,dates.        Industry:  Types--agriculture and livestock processingplants, natron mining.        Trade:  Exports--$155 million:  cotton (46%), livestock,gum arabic.  Imports--$250 million:  petroleum, machinery, cement,motor vehicles, used clothing.  Major trade partners--France andcountries of the Customs and Economic Union of Central Africa.Chad enjoys preferential tariffs in France and other EC countries.        Official exchange rate:  As of April 1992, the exchangerate was 255 CFA francs=US$1.        Economic aid received (1990):  Economic, food relief--$312million from all sources.  US aid--$10.9 million (fiscal yearending 1990).PEOPLE        There are more than 200 ethnic groups in Chad.  Those inthe north and east are generally Muslim; most southerners areanimists and Christians.  Through their long religious andcommercial relationships with Sudan and Egypt, many of the peoplesin Chad's eastern and central regions have become more or lessArabized, speaking Arabic and engaging in many other Arab culturalpractices as well.  Chad's southern peoples took more readily toEuropean culture during the French colonial period.HISTORY        Chad has known human habitation since time immemorial.  Theoldest humanoid skull yet found in Chad (Borkou) is more than 1million years old.  Because in ancient times the Saharan area wasnot totally arid, Chad's population was more evenly distributedthan it is today.  For example, 7,000 years ago,  the north centralbasin, now in the Sahara, was still filled with water, and peoplelived and farmed around its shores.  The cliff paintings in Borkouand Ennedi depict elephants, rhinoceri, giraffes, cattle, andcamels;  only camels survive there today.  The region was known totraders and geographers from the late Middle Ages.  Since then,Chad has served as a crossroads for the Muslim peoples of thedesert and savanna regions and the animist Bantu tribes of thetropical forests.        Sao people lived along the Chari River for thousands ofyears, but their relatively weak chiefdoms were overtaken by thepowerful chiefs of what were to become the Kanem-Bornu and Baguirmikingdoms.  At their peak, these two kingdoms and the kingdom ofOuaddai controlled a good part of what is now Chad, as well asparts of Nigeria and Sudan.  From 1500 to 1900, Arab slave raidswere widespread. The French first penetrated Chad in 1891,establishing their authority through military expeditions primarilyagainst the Muslim kingdoms.  The first major colonial battle forChad was fought in 1900 between the French Major Lamy and theAfrican leader Rabah, both of whom were killed in the battle.Although the French won that battle, they did not declare theterritory pacified until 1911; armed clashes between colonialtroops and local bands continued for many years thereafter.        In 1905, administrative responsibility for Chad was placedunder a governor general stationed at Brazzaville in what is nowCongo.  Although Chad joined the French colonies of Gabon,Oubangui-Charo, and Moyen Congo to form the Federation of FrenchEquatorial Africa (AEF) in 1910, it did not have colonial statusuntil 1920.  The northern region of Chad was occupied by the Frenchin 1914.        In 1959, the territory of French Equatorial Africa wasdissolved, and four states--Gabon, the Central African Republic,Congo (Brazzaville), and Chad--became autonomous members of theFrench Community.  In 1960, Chad became an independent nation underits first president, Francois Tombalbaye.        A long civil war began as a tax revolt in 1965 and soon setthe Muslim north and east against the southern-led government.Even with the help of French combat forces, the TombalbayeGovernment was never able to quell the        insurgency.Tombalbaye's rule became more irrational and brutal, leading themilitary to carry out a coup in 1975 and to install Gen. FelixMalloum, a southerner, as head of state.        In 1978, Malloum's Government was broadened to include morenortherners.  Internal dissent within the government led thenorthern Prime Minister, Hissein Habre, to send his forces againstthe national army at N'Djamena in February 1979.  This act led tointense fighting among the 11 factions that emerged.  At thispoint, the civil war had become so widespread that regionalgovernments decided there was no effective central government andstepped in.        A series of four international conferences held first underNigerian and then Organization of African Unity (OAU) sponsorshipattempted to bring the Chadian factions together.  At the fourthconference, held in Lagos, Nigeria, in August 1979, the Lagosaccord was signed.  This accord established a transitionalgovernment pending national elections.  In November 1979, theNational Union Transition Government (GUNT) was created with amandate to govern for 18 months.  Goukouni Oueddei, a northerner,was named President; Col. Kamougue, a southerner, Vice President;and Habre, Minister of Defense.        This coalition proved fragile; in March 1980, fightingbroke out again between Goukouni's and Habre's forces.  The wardragged on inconclusively until Goukouni sought and obtained Libyanintervention.  More than 7,000 Libyan troops entered Chad.Although Goukouni requested complete withdrawal of external forcesin October 1981, the Libyans pulled back only to the Aozou Strip innorthern Chad.        An OAU peacekeeping force of 3,500 troops replaced theLibyan forces in the remainder of Chad.  The force, consisting oftroops from Nigeria, Senegal, and Zaire, received funding from theUnited States.  A special summit of the OAU ad hoc committee on theChad/Libya dispute in February 1982 called for reconciliation amongall the factions, particularly those led by Goukouni and Habre, whohad resumed fighting in eastern Chad.  Although Habre agreed toparticipate, Goukouni refused to negotiate with Habre on an equalbasis.  In the series of battles that followed, Habre's forcesdefeated the GUNT, and Habre occupied N'Djamena on June 7, 1982.The OAU force remained neutral during the conflict, and all of itselements were withdrawn from Chad at the end of June.        In the summer of 1983, GUNT forces launched an offensiveagainst government positions in northern and eastern Chad.Following a series of initial defeats, government forces succeededin stopping the rebels.  At this point, Libyan forces directlyintervened once again, bombing government forces at Faya Largeau.Ground attacks followed the bombings, forcing government troops toabandon N'Djamena and withdraw to the south.  In response toLibya's direct intervention, French and Zairian forces were sent toChad to assist in defending the government.  With the deployment ofFrench troops, the military situation stabilized, leaving theLibyans and rebels in control of all Chad north of the 16thparallel.        In September 1984, the French and the Libyan Governmentsannounced an agreement for the mutual withdrawal of their forcesfrom Chad.  By the end of the year, all French and Zairian troopswere withdrawn.  Libya did not honor the withdrawal accord,however, and its forces continued to occupy the northern third ofChad.        President Habre's efforts to deal with his opposition wereaided by a number of African leaders, especially Gabon's President,Omar Bongo. During accords held in Libreville, Gabon, in 1985, twoof the chief exile opposition groups, the Chadian Democratic Frontand the Coordinating Action Committee of the DemocraticRevolutionary Council, made peace with the Habre Government.  By1986, all of the rebel commando (CODO) groups in southern Chad camein from the forests, rallied to President Habre's side, and werere-integrated into the Forces Armees Nationales Chadiennes (FANT).        In the fall of 1986, fighters loyal to Goukouni Oueddei,leader of the GUNT, began defecting to the FANT.  Although Libyanforces were more heavily equipped than were the Chadians, Habre'sFANT, with considerable assistance from ex-GUNT forces, beganattacks against the Libyan occupiers in November 1986 and wonvictories at all the important cities.  The Chadian offensive endedin August 1987, with the taking of Aozou Town, the principalvillage in the Aozou Strip.  Chad Government forces held thevillage for a month but lost it to a heavy Libyan counterattack.        The OAU ad hoc committee continued to seek a peacefulsolution to the Chad/Libya conflict, holding meetings over theyears with heads of state or ministerial-level officials.  InOctober 1988, Chad resumed formal diplomatic relations with Libya,in accordance with recommendations made by the OAU.A month later, Habre's reconciliation efforts succeeded, and hetook power in N'Djamena.  In April 1989, Idriss Deby, one ofHabre's leading generals, defected and fled to Darfur in Sudan,from which he mounted a series of attacks on the eastern region ofChad.  In November 1990, he invaded; on December 2, 1990, hisforces entered N'Djamena without a battle, President Habre andforces loyal to him having fled. After 3 months of provisionalgovernment, a national charter was approved by the PatrioticSalvation Movement (MPS) on February 28, 1991, with Deby asPresident.GOVERNMENT AND POLITICAL CONDITIONS        The Fundamental Act of the Republic, proclaimed on October18, 1982, served as the constitutional basis for government untilDecember 10, 1989, when it was replaced by a new constitution.  Thelatter was revoked by the MPS on December 4, 1990, after Habre'sfall.        Until the December 1990 takeover of the government by theMPS, Chad's political structure comprised an executive office, anational assembly, and the National Union for Independence andRevolution (UNIR), the sole political party.  The MPS embarked onan ambitious democratization program, which included authorizationfor multiple political parties in October 1991 and presidential,legislative, and local elections in 1993.  The current government,self-described as a transitional or provisional government, isheaded by President Idriss Deby.  Prime Minister Jean BawoyeuAlingue is charged with administration of government.  A council ofministers, which the president heads, directs government policy.Authority for the current government structure comes from thenational charter of March 1991.  Until March 1992, the MPS was theonly political organization permitted.  Since then, the Rally forDemocracy and Progress (headed by Lol Mahamat Choua), theDemocratic Union for Progress in Chad (Elie Romba), the NationalRally for Democracy and Progress (Kassire Joumakoye), the Union forDemocracy and the Republic (Jean Bawoyeau Alingue), and the ChadianPeople's Assembly (Dangde Laobele Damaye), were authorized.        The MPS is composed of a 28-member executive committee anda 155-member national committee.  Idriss Deby is the president ofthe MPS.  Chad's politics are dominated by the democratizationagenda, established by the MPS as a priority.  Progress has beenmade in ameliorating Chad's human rights record and in liberalizingpolitics.  Currently, an outspoken press, two trade unions, and twohuman rights organizations function openly.        Relations between Chad and Libya are important factors inChad's political environment.  Idriss Deby and the MPS haveadvocated a good-neighbor policy with all countries bordering Chad,including Libya.  This has resulted in a lessening of the militarytensions evident under the Habre regime, but concerns remain as toLibya's political intentions in Chad, and the dispute over theAozou Strip remains unresolved.  The case was referred to theInternational Court of Justice for review.Principal Government OfficialsPresident, Head of State, President of the Council ofMinisters--Idriss DebyPrime Minister--Jean Bawoyeu AlingueMinister of Foreign Affairs--Mahamat Saleh AhmatAmbassador to the US and UN--Acheik ibn Oumar        Chad maintains an embassy in the United States at 2002 RStreet, NW, Washington, DC 20009 (tel: [phone]).DEFENSE        The Chadian military under former President Hissein Habrewas dominated by members of Gourane, Zaghawa, Kanembou, Hadjerai,and Massa groups.  Idriss Deby, a member of a minority Zaghawa clanand a top military commander, revolted and fled to the Sudan,taking with him many Zaghawa and Hadjerai soldiers in 1989.        The forces Deby led into N'Djamena on December 1, 1990, andwhich overthrew Habre were mainly of Zaghawas, including a largenumber of Sudanese Zaghawa.  Many of these were recruited whileDeby was in the bush. Deby's coalition also included a small numberof Hadjerais and southerners.        Chad's armed forces numbered about 35,000 at the end of theHabre regime but swelled to an estimated 50,000 in the early daysof Idriss Deby.  The growth was a result of recruiting tribalmembers loyal to Deby and his principal commanders and of combiningHabre's and Deby's armies into the new national Chadian army, FANT.        With French support, a reorganization of the armed forceswas initiated early in 1991.  The reorganization goal is to reducethe armed forces from 50,000 to 25,000 and to restructure it intoa ground army of approximately 20,000, consisting of a republicanguard, infantry regiments, and support battalions.  Also includedin the new structure is a gendarmerie of about 5,000 and an airforce of about 400.  Ethnic composition of the regiments is toreflect that of the country as a whole.        A key challenge for the national army of Chad is thereduction portion of the overall reorganization plan.  Limitedfunds to pay mustering out bonuses and pensions and a lack ofemployment opportunities in the economy have inhibited efforts.However, a list of the initial reductions has been drafted and isbeing reviewed by government officials for implementation.ECONOMY        About 85% of Chadians make their living from subsistenceagriculture, fishing, and stock raising.  Cotton and livestock arethe two major exports, accounting for 70% of Chad's exportearnings.  In years of adequate rainfall, Chad is self-sufficientin food.  In years of drought, such as those that occurred in themid-1970s, in 1984-85, and in 1990, large quantities of foodstuffs,primarily cereals, must be imported.        Cotton alone accounts for 10% of agricultural GDP.  Primarymarkets include neighboring Cameroon and Nigeria and France,Germany, and Portugal.  In 1986, cotton prices on the world marketdeclined by more than 50%, and CotonTchad did not show a profitagain until 1991.  Rehabilitation of CotonTchad, the major cottoncompany, has been financed by France, the Netherlands, the EuropeanEconomic Community (EC), and the International Bank forReconstruction and Development (IBRD).  Because of cotton'simportance to the economy, the government excused the collection ofexport taxes until the company returned to profitability.CotonTchad is adhering to its agenda and is well on the road torecovery.        The other major export is livestock, herded to neighboringcountries.  Herdsmen in the Sudanic and Sahelian zones raisecattle, sheep, goats, and, among the non-Muslims, a few pigs.  Inthe Saharan region, only camels and a few hardy goats can survive.Chad also sells smoked and dried fish to its neighbors and exportsseveral million  dollars worth of gum arabic to Europe each year.Other food crops include millet, sorghum, peanuts, rice, sweetpotatoes, manioc, cassava, and yams.        In both the north and the south, industrial activity andminerals exploration peaked in 1978.  The civil war and the Libyanintervention in 1980 devastated N'Djamena and destroyed most of theeconomic infrastructure there.  Between the first outbreak of heavyfighting in N'Djamena in February 1979 and the withdrawal of Libyanforces from the capital in 1981, southern Chad became an autonomousarea, not to be fully integrated into the country until 1983.  Thesouth continued to export cotton, but none of the economic benefitsof that trade reached the rest of the country.        The effects of the war on foreign investment are still felttoday, as investors who left Chad between 1979-82 have onlyrecently begun to regain confidence in the country's future.  Byearly 1983, the return of internal security and a successful Genevadonors' conference had prompted a number of international businessrepresentatives to make exploratory visits to Chad.        An international consortium is conducting exploratorydrilling for petroleum in the south.  By mid-1991, seismic studiesby an American oil company in the north-central desert area werecompleted.  The World Bank has agreed to partially finance apipeline/mini-refinery/power plant project in N'Djamena using smallcrude oil deposits found north of Lake Chad.FOREIGN RELATIONS        Chad is officially non-aligned but has close relations withFrance, the former colonial power, and other members of the Westerncommunity.  It receives economic aid from countries of the EuropeanCommunity, the United States, and various internationalorganizations.  Libya supplies aid and has an ambassador residentin N'Djamena.        Other resident diplomatic missions in N'Djamena include theembassies of France, the United States, Egypt, Algeria, Iraq,Sudan, Germany, the Central African Republic, Zaire, Nigeria,China, Cameroon, and the European Economic Community.  A number ofother countries have non-resident ambassadors.  In 1988, Chaddecided to  recognize the "State of Palestine," which maintains an"embassy" in N'Djamena.  Chad has not recognized the State ofIsrael.        With the exception of Libya, whose expansionist policieshave kept the two nations in conflict since 1980, Chad hasgenerally good rapport with its neighbors.  Although relations withLibya improved with the advent of the Deby Government, strainspersist.        Chad has been an active champion of regional cooperationthrough the Central African Economic and Customs Union, the LakeChad and Niger River Basin Commissions, and the Inter-stateCommission for the Fight Against the Drought in the Sahel.US-CHAD RELATIONS        Relations between the United States and Chad are good.  TheAmerican Embassy in N'Djamena, established at Chadian independencein 1960, was closed from the onset of the heavy fighting in thecity in 1980 until the withdrawal of the Libyan forces at the endof 1981.  It was reopened in January 1982.  The US Agency forInternational Development  (AID) and the US Information Service(USIS) offices resumed activities in Chad in September 1983.        The United States enjoyed close relations with the Habreregime, although strains over human rights abuses developed priorto Habre's fall.  Cordial relations with the Deby Governmentcontinue.  The USAID program is expanding, both in terms of projectassistance and emergency aid.  Approximately $15 million inemergency assistance was granted to combat a cholera epidemic andto prevent famine in 1991.        The US development program in Chad concentrates on theagricultural, health, and infrastructure sectors and includesprojects in road repair and maintenance, maternal and child health,famine early warning systems, and agricultural marketing.  USAIDworks with several American voluntary agencies such as CARE,AFRICARE, and VITA on some of its projects.  The first Peace Corpsvolunteers of the post-war period arrived in Chad in September1987, and about 40 are currently assigned.        Development assistance had increased from $3.3 million in1982 to $15 million in 1991. Budget constraints have forcedeconomic support funds cutbacks for FY 1992, however.Principal US OfficialsAmbassador--Richard BogosianDeputy Chief of Mission--Steven R. BucklerPolitical/Consular Officer--Michael BajekAdministrative Officer--Thomas BovairdEconomic/Commercial Officer--Alexander BollingPublic Affairs Officer--Peter PinessRegional Security Officer--Jon MyersAID Representative--Anne WilliamsPeace Corps Director--Joseph HindmanDefense Attache--Ltc. Dale Flora,  USA        The US Embassy in Chad is located on Avenue Felix Eboue,N'Djamena, (tel: [phone] or 235-51-40-09).</text>
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        <text>U.S. Department of StateBackground Notes:  Canada, November 1995Bureau of Public AffairsNovember 1995Official Name:  Canada  PROFILE Geography Area:  9.9 million sq. km. (3.8 million sq. mi.); second-largest country in the world. Cities:  Capital--Ottawa (pop. 833,000).  Other cities--Toronto (3.5 million), Montreal (2.9 million), Vancouver (1.4 million). Terrain:  Mostly plains with mountains in the west and lowlands in the southeast. Climate:  Temperate to arctic. People Nationality:  Noun and adjective--Canadian(s). Population (1994):  29 million. Annual growth rate:  1.5%.  Ethnic groups:  British 28%, French 23%, other European 15%, Asian/Arab/African 6%, indigenous Indian and Eskimo 2%, mixed background 26%. Religions:  Roman Catholic 46%, Protestant 41%. Languages:  English, French. Education:  Literacy--99% of population aged 15 and over have at least a ninth-grade education. Health:  Infant mortality rate--7/1,000.  Life expectancy--75 yrs. male, 82 yrs. female. Work force (14.8 million, 1994):  Trade--18%.  Manufacturing--15%.  Transportation and communications--8%.  Finance--7%.  Public administration--7%.  Construction--6%.  Agriculture--4%.  Forestry and mining--2%.  Other services--33%. Government Type:  Confederation with parliamentary democracy. Independence:  July 1, 1867. Constitution:  The amended British North America Act of 1867 patriated to Canada on April 17, 1982, Charter of Rights and Freedoms, and unwritten custom. Branches:  Executive--Queen Elizabeth II (head of state, represented by a governor general), prime minister (head of government), cabinet.  Legislative--bicameral parliament (104-member Senate, 295-member House of Commons).  Judicial--Supreme Court. Political parties:  Liberal Party, Bloc Quebecois, Reform Party, New Democratic Party, Progressive Conservative Party. Subdivisions:  10 provinces, 2 territories. Economy GDP (1994):  $548 billion. Annual real growth rate:  4.6%. Per capita GDP (1994):  $18,700. Natural resources:  Petroleum and natural gas, hydroelectric power, metals and minerals, fish, forests, wildlife. Agriculture:  Products--wheat, livestock and meat, feed grains, oil seeds, dairy products, tobacco, fruits, vegetables. Industry:  Types--motor vehicles and parts, machinery and equipment, aircraft and components, other diversified manufacturing, fish and forest products, processed and unprocessed minerals. Trade (1994):  Merchandise exports--$160 billion:  motor vehicles and parts, lumber, wood pulp and newsprint, crude and fabricated metals, natural gas, crude petroleum, wheat; partners--U.S. 84%, EU 5%, Japan 4%.  Merchandise imports--$148 billion:  motor vehicles and parts, industrial machinery, crude petroleum, chemicals, agricultural machinery; partners--U.S. 74%, EU 5%, Japan 4%. U.S.-CANADIAN RELATIONS U.S.-Canadian relations are close and cooperative, although occasional differences occur; the bilateral relationship is varied and complex.  Of Canada's 29 million people, 80% live within 160 kilometers (100 mi.) of the U.S. border.  Investment and trade issues are a major feature of U.S.-Canadian relations (see Trade and Investment).Canada and the U.S. also work closely through multilateral forums.  Canada--a charter signatory to the United Nations and to the North Atlantic Treaty Organization (NATO)--has continued to take an active role in the United Nations, including peacekeeping operations.  It is a NATO member and also an active participant in discussions stemming from the Organization for Security and Cooperation in Europe (OSCE).  Canada joined the Organization of American States in 1990 and has been an active member.  It seeks to expand its economic ties across the Pacific through membership in the Asia-Pacific Economic Cooperation forum (APEC), of which the U.S. also is a member.Although Canada views its relationship with the U.S. as crucial to a wide range of interests--and while it has worked to remain anchored in the West--it also has pursued policies that occasionally accentuate its independence from the United States.  These included Canada's early "normalization" of relations with Fidel Castro's Cuba and the People's Republic of China, as well as strong Canadian opposition to U.S. involvement in the war in Vietnam.  U.S. defense arrangements with Canada are more extensive than with any other country.  The Permanent Joint Board on Defense, established in 1940, provides policy-level consultation on bilateral defense matters.  The United States and Canada share NATO mutual security commitments.  As the only other non-European ally, Canada participates in NATO commands in Europe and the North Atlantic.In addition, U.S. and Canadian military forces have cooperated since 1958 on continental air defense within the framework of the North American Aerospace Defense Command, an integrated, bilateral military command that exercises operational control over U.S. and Canadian air defense forces and also provides early warning information on possible air and missile attacks on North America.  Canada and the U.S. work closely in defense research and production.The two countries work closely to resolve transboundary environmental issues, an area of increasing importance in the bilateral relationship.  A principal instrument of this cooperation is the International Joint Commission, established in 1909 to promote international environmental cooperation.  The Great Lakes Water Quality Agreement of 1987, aimed at preserving and enhancing the water quality of the Great Lakes, is a historic example of joint cooperation in controlling transboundary water pollution.  The two governments also consult semi-annually on transboundary air pollution.  Under the Air Quality Agreement of 1991, both countries have made substantial progress in coordinating and implementing their acid rain control programs.  Trade and Investment Canada and the U.S. each serve as the largest market for the other's goods.  Like the United States, Canada enjoyed significant postwar economic growth and prosperity.  Cooperative economic efforts have included the 1965 Auto Pact, which created a largely integrated two-country market for automobiles, and defense economic arrangements, which diminish obstacles to trade and technology exchange and encourage a balance of trade in defense-related areas.Canada's trade with the U.S. increased by about 50% between 1989--when the Free Trade Agreement (FTA) went into effect--and 1994, when the North American Free Trade Agreement (NAFTA) superseded it.  NAFTA--which took effect on January 1, 1994--continues the FTA's moves toward removing all tariffs and virtually all import and export restrictions.  It also resolves some long-standing bilateral irritants and liberalizes rules in several areas, including agriculture, services, energy, financial services, investment, and government procurement.  NAFTA forms the largest trading area in the world, embracing the 380 million people of the three North American countries.The value of U.S.-Canadian merchandise trade for 1994 was about $243 billion, more than that between any other two countries in the world.  Growth trends are expected to continue under NAFTA, which while continuing FTA liberalizations, also extends trade openings to new areas such as financial services.Almost one-third of U.S.-Canadian trade is in the automotive sector.  Under the 1965 U.S.-Canada Automotive Agreement (Auto Pact)--which provided for free trade in cars, trucks, and auto parts--two-way trade in automotive products rose from $715 million in 1964 to $23 billion by 1978.  In 1980-81, it declined to about $18 billion, but it rose to $58 billion in 1992.  Auto Pact benefits are incorporated in NAFTA.The U.S. is Canada's leading agricultural market, taking nearly one-third of all food exports.  Conversely, Canada is the second-largest U.S. agricultural market (after Japan), primarily importing fresh fruits and vegetables and livestock products.Nearly two-thirds of Canada's forest products--including pulp and paper--is exported to the United States; almost 75% of Canada's total newsprint production is exported to the United States.The United States imports over 2 trillion cubic feet, or 12% of its natural gas requirements, from Canada.  Canada is the largest energy supplier for the U.S.Energy and transportation problems--such as natural gas trade and trucking regulations--can be nettlesome, although such issues usually have been successfully managed or resolved through bilateral consultative forums.  Canada and the United States signed an aviation agreement during President Clinton's visit to Canada in February 1995, and flights have increased accordingly.The United States and Canada have resolved several major issues involving fisheries.  By common agreement, the two countries submitted a Gulf of Maine boundary dispute to the International Court of Justice in 1981; both accepted the court's October 12, 1984, ruling which demarcated the territorial sea boundary.  In 1990, the United States and Canada signed a bilateral Fisheries Enforcement Agreement which has served to deter illegal fishing activity and reduce the risk of injury during fisheries enforcement incidents.  Their success in achieving a Pacific salmon treaty in 1985 has been tempered by difficulties in negotiating multi-year extensions of its constituent fisheries regimes. The U.S. is Canada's largest foreign investor; at the end of 1994, the stock of U.S. direct investment in Canada was estimated at $70 billion, or about 65% of total foreign direct investment in Canada.  U.S. investment is primarily in Canada's mining and smelting industries, petroleum, chemicals, the manufacture of machinery and transportation equipment, and finance.Canada's investment exposure in the United States is substantial.  At the end of 1994, the stock of Canadian direct investment in the United States was estimated at $49 billion, or 6% of total foreign direct investment in the United States.  Canadian investment in the United States is concentrated in manufacturing, wholesale trade, real estate, and petroleum, with recent growth in investment in services. Principal U.S. Embassy Officials Ambassador--James Blanchard Deputy Chief of Mission--James Walsh Minister-Counselor for Political Affairs--David Jones Minister-Counselor for Economic Affairs--Marshall Casse Minister-Counselor for Public Affairs--Gail Gulliksen Minister-Counselor for Commercial Affairs (acting)--Dale Slaght  The U.S. embassy in Canada is located at 100 Wellington Street, Ottawa (tel. [phone]). GOVERNMENT Canada is a constitutional monarchy with a federal system, a parliamentary government, and strong democratic traditions.  Many of the country's legal practices are based on unwritten custom, but the federal structure resembles the U.S. system.  The 1982 Charter of Rights guarantees basic rights in many areas.Queen Elizabeth II, as Queen of Canada, serves as a symbol of the nation's unity.  She appoints a governor general on the advice of the prime minister of Canada, usually for a five-year term.  The prime minister is the leader of the political party in power and is the head of the cabinet.  The cabinet remains in office as long as it retains majority support in the House of Commons on major issues.Canada's parliament consists of an elected House of Commons and an appointed Senate.  Legislative power rests with the 295-member Commons, which is elected for a period not to exceed five years.  The prime minister may ask the governor general to dissolve parliament and call new elections at any time during that period.  Federal elections were last held in October 1993.  Vacancies in the 104-member Senate, whose members serve until the age of 75, are filled by the governor general on the advice of the prime minister.  Recent constitutional initiatives have sought unsuccessfully to strengthen the Senate by making it elective and assigning it a greater regional representational role.Criminal law, based largely on British law, is uniform throughout the nation and is under federal jurisdiction.  Civil law is also based on the common law of England, except in Quebec, which has retained its own civil code patterned after that of France.  Justice is administered by federal, provincial, and municipal courts.Each province is governed by a premier and a single, elected legislative chamber.  A lieutenant-governor appointed by the governor general represents the Crown in each province. Principal Government Officials Chief of State--Queen Elizabeth II Governor General--Romeo LeBlanc Prime Minister--Jean Chretien Minister of Foreign Affairs--Andre Ouellet Ambassador to the United States--Raymond Chretien Ambassador to the United Nations--Robert Fowler  Canada maintains an embassy in the United States at 501 Pennsylvania Avenue, NW, Washington, DC  20001 (tel. [phone]). POLITICAL CONDITIONS Canada's current Liberal government was elected on October 25, 1993, when it won 178 of 295 seats in parliament.  This center-left party had formed the official opposition to the moderate Progressive Conservative Party (Tories), which governed Canada from 1984 to 1993.  Broad popular disenchantment with the former Mulroney government led to the Tories' near-total displacement by two regional opposition parties--the sovereignist Bloc Quebecois (with 54 seats) and the Western Reform Party (with 52 seats), a popularly based conservative movement focused on law-and-order issues, fiscal responsibility, and institutional reform.Federal-provincial interplay is a central feature of Canadian politics:  Quebec wishes to preserve and strengthen its distinctive nature; western provinces desire more control over their abundant natural resources, especially energy reserves; industrialized central Canada is concerned with economic development; and the Atlantic provinces have resisted federal claims to fishing and mineral rights off their shores.Canadians have responded to these different regional needs by trying to strengthen both their confederation and the fundamental democratic principles essential to a balanced federal-provincial political system.  But the setbacks of recent years--such as the June 1990 failure to ratify the 1987 Meech Lake accord and the October 1992 rejection by voters of another constitutional formula--have made this process more difficult. National Unity Canada's early history was dominated by rivalry between France and Britain.  For more than a century, Canada was a French colony.  Although New France came under British control in 1759, it was permitted to retain its religious and civil code.  Canada is still trying to find a constitutional formula that will satisfy the aspirations of the French-speaking province of Quebec.The early 1960s saw a new assertiveness and heightened sense of identity among the French-speaking Quebeckers, who make up about one-quarter of Canada's population.  In 1976, the separatist Parti Quebecois won the provincial election and began to explore a course for Quebec of greater independence from the rest of Canada.In a 1980 referendum, the Parti Quebecois sought a mandate from the people of Quebec to negotiate a new status of "sovereignty-association," combining political independence with a continued economic association with the rest of Canada.  Sixty percent of Quebec voters rejected the proposal.An agreement between the federal government and all provincial governments--except Quebec--led to Canada assuming from the United Kingdom, in 1982, full responsibility for its own constitution.  Quebec objected to certain aspects of the new arrangement, including a constitutional amending formula that did not require consensus among all provinces.  The 1987 Meech Lake Accord sought to address Quebec's concerns in order to bring it into Canada's new constitutional framework.  Quebec's provincial government, then controlled by federalists, strongly endorsed the accord, but lack of support in Newfoundland and Manitoba prevented the agreement from taking effect.  Rejected in its bid for special constitutional recognition, Quebec's provincial government authorized a second sovereignty referendum.Intense negotiations among Quebec, the federal government, and other provinces led to drafting a second proposed constitutional accord in 1992, the Charlottetown Accord.  Despite near-unanimous support from the country's political leaders, this second effort at constitutional reform was defeated in Quebec and the rest of Canada in an October 1992 nationwide referendum.Tired of the country's seemingly interminable constitutional deadlock, many Canadians today prefer to focus on economic issues.  Nonetheless, the election of the sovereignist Bloc Quebecois as Canada's official opposition in 1993 and the subsequent election of the separatist Parti Quebecois as Quebec's provincial government in September 1994 kept national unity in the forefront of political debate and resulted in a call for another referendum on the issue.This referendum, held in Quebec on October 30, 1995, resulted in a narrow (50.56% to 49.44%) victory for Canadian federalists over Quebec sovereignists.  Quebec's status thus remains a serious political issue in Canada. TRAVEL AND BUSINESS INFORMATION The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC, tel. 20402 [phone].  Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].   While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).   Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.  Further Electronic Information:  Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.  Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:  Gopher:  dosfan.lib.uic.edu URL:  gopher://dosfan.lib.uic.edu/ WWW:  http://dosfan.lib.uic.edu/dosfan.html  U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].  Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].  National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information. ============================== Background Notes Series --  Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC  This material is in the public domain and may be reproduced without permission; citation of this source is appreciated. (###)</text>
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        <text>US DEPARTMENT OF STATEPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSBACKGROUND NOTE:  Cameroon, June 1992Official Name: Republic of CameroonPROFILEGeographyArea:  475,439 sq. km. (183,568 sq. mi.); about the size ofCalifornia.  Cities:  Capital--Yaounde (pop. 850,000).  Other majorcities--Douala (1,500,000), Nkongsamba (130,000), Bafoussam(110,000), Garoua (100,000), Bamenda (100,000).  Terrain:  Northernplains, central and southern plateaus, western highlands andmountains, coastal plains.  Climate: Northern plains--semiarid andhot (7-month dry season).  Central plateau--cooler, shorter dry season.Southwest--year-round rainfall.  Coastal lowlands--warm and humid all year.PeopleNationality:  Noun and adjective--Cameroonian(s).  Population (1991est.):  11.7 million (60% in rural areas).  Annual growth rate:3%.  Ethnic groups:  More than 200.  Religions:  Christian, Muslim,indigenous African.  Languages:  English and French (official),more than 200 African.  Education:  Years compulsory--none.Attendance--more than 70%.  Literacy--65%.  Health:  Infantmortality rate--more than 20%.  Life expectancy--54 yrs.  Workforce:  Agriculture--70%.  Industry and commerce--13%.  Other--17%.GovernmentType:  Independent republic.  Independence:  January 1, 1960.Constitution:  May 20, 1972.        Branches:  Executive--president (chief of state and defacto head of government,5-year term).  Legislative--unicameral National Assembly (180members, 5-year terms).        Administrative subdivisions: 10 provinces.        Ruling political party:  Cameroon People's DemocraticMovement (CPDM or RPDC).  Suffrage:  Universal adult.        Central government budget (1991-92):  $1.4 billion.        Defense (1991-92):  $159 million; 8.7% of budget.        Flag: Three vertical stripes from left to right--green,red, and yellow--with one yellow star centered in red stripe.EconomyGDP (1990-91 est.):  $12.5 billion.  GDP declined 2.4% in 1988-89,6.3% in 1989-90, and an estimated 2.6% in 1990-91.  Annual growthrate: 4.3%.  Annual inflation rate: 2%.        Natural resources:  Oil (8% of GDP), natural gas, bauxite,iron ore, timber.        Agriculture:  27% of GDP.  Products--cocoa, coffee, cotton,fishing, and forestry.  Arable land--12%.        Industry:  24% of GDP (13% manufacturing).        Trade (1990-91 est.):  Exports--$2.9 billion:  petroleum,cocoa, coffee, tropical wood.  Major markets (1989)--France 28%,Netherlands 16%, United States 13%.  Imports--$2.2 billion:intermediate goods, capital goods, fuel and lubricants, foodstuffs,beverages, tobacco.  Major suppliers (1989)--France 32%, Germany9%, Italy 6%, Japan 6%, United States 5%.        Official exchange rate: 50 CFA to 1 French franc, whichfloats against the US dollar.        Fiscal year:  July 1-June 30.PEOPLE        Cameroon has about 200 tribes and clans speaking at leastthat many African languages and major dialects.  It is the onlyAfrican nation where both French and English have official status.In 1961, the government established the University of Yaounde, thefirst African university to offer courses in both French andEnglish.  Branch campuses are in Ngaoundere, Dschang, Douala, andBuea.        Traditional African religious beliefs influence bothMuslims (concentrated in the north) and Christians (concentrated inthe south).  Four-fifths of Cameroon-ians live in the formerlyFrench east; 20,000 Europeans and 900 US citizens reside inCameroon.  The main seaport and largest city is Douala; thecapital, Yaounde, is second-largest.HISTORY        The earliest inhabitants probably were the Pygmies, whostill inhabit the southern forests.  Bantu speakers were among thefirst groups that invaded Cameroon from equatorial Africa, settlingin the south and later in the west.  The Muslim Fulani from theNiger basin arrived in the 11th and 19th centuries and settled inthe north.        Contact with Europeans began in the 1500s.  During the next3 centuries, Spanish, Dutch, and British traders visited the area,and there was costal slave trading.  Christian missions appeared inthe mid-1800s and still are active.        In July 1884, Germany, the United Kingdom, and France eachattempted to annex the area.  In a treaty with local chiefs, theGerman Consul of Tunis, Tunisia, extended a protectorate overCameroon.  Germany strengthened its claim and expanded itsterritory by treaties with the United Kingdom and France, butBritish and French armies invaded the German colony in 1914.        A 1919 declaration divided Cameroon between the UnitedKingdom and France, with the larger, eastern area under France.  A1922 League of Nations mandate sanctioned the division; in 1946,the United Nations converted the mandates to trusteeships.  InDecember 1958, the French trusteeship was ended; French Cameroonbecame the Republic of Cameroon on January 1, 1960.        In February 1961, a plebiscite under UN auspices in British(west) Cameroon determined whether people wished union with Nigeriaor with the new Republic of Cameroon.  Northern voters chose tojoin Nigeria; southern voters, Cameroon.  On July 1, 1961, thenorthern area was absorbed by Nigeria.  On October 1, 1961, thesouthern part joined French Cameroon, and the new Federal Republicof Cameroon was created.        From 1961 until spring 1972, Cameroon was governed as afederation, with east (formerly French) Cameroon and west (formerlyBritish) Cameroon having individual governments--each with aparliament and ministries--in addition to the federal governmentstructure.        In 1972, President Ahidjo proposed abolition of the federalstructure.  A May 20, 1972, referendum gave widespread endorsementto the proposal, and a June 2 decree proclaimed the United Republicof Cameroon retroactive to May 20.  On January 25, 1984,  aconstitutional amendment made its official name the Republic ofCameroon.GOVERNMENT        The May 20, 1972, constitution provides for strongexecutive authority.  The president can name and dismiss cabinetmembers and judges, negotiate and ratify treaties, accreditambassadors, commute sentences, grant pardons, lead the armedforces, and declare states of national emergency and be investedwith special powers.        If the president dies or is permanently incapacitated, thespeaker of the National Assembly becomes acting president for up to40 days until elections are held.  In the National Assembly, lawsare adopted by majority vote of members present, except for caseswhere the president calls for a second reading; adoption thenrequires approval by a majority of the assembly's total membership.Only the president may ask the Supreme Court to review a law'sconstitutionality.        Each of the 10 provinces has a presidentially-appointedgovernor and an administrative staff, and each province's divisionsand subdivisions have presidentially-appointed chief officers.This internal administrative system is under the Ministry ofTerritorial Administration.  Other ministries may haverepresentatives at each level.        The president, the minister of justice, and the president'sjudicial advisers (Supreme Court) top the judicial hierarchy.  Nextcome the provincial appeals courts, chief judges for the divisions,and local magistrates.  Traditional courts still play a major rolein domestic, property, and probate law.  Tribal laws and customsare honored in the formal court system when not in conflict withnational law.        Traditional kingdoms and organizations also exercise otherfunctions of government; traditional rulers are treated asadministrative adjuncts and receive a government salary.  Formalgovernmental and tribal structures are mutually reinforcing andallow for local variation.Principal Government OfficialsPresident--Paul BiyaSpeaker of the National Assembly--Djibril Cavaye YeguePrime Minister--Simon Achidi AchuAmbassador to the United States--Paul PondiAmbassador to the United Nations--Pascal Biloa Tang        Cameroon maintains an embassy in the United States at 2349Massachusetts Avenue NW, Washington, DC 20008 (tel. [phone])and consulates in San Francisco and Houston.POLITICAL CONDITIONS        From 1955 until the mid-1960s, Cameroon had known sustainedterrorist activity--begun in opposition to foreign rule andcontinued after independence against moderates in Cameroon'sgovernments--led by the outlawed Union of Cameroon Peoples andsupported by foreign communist and radical African regimes.Terrorism gradually was reduced to isolated banditry.  The captureof the last important rebel leader in 1970 signaled the end ofconcerted rebel action and the effective achievement of politicalconsolidation.        When President Ahidjo resigned in November 1982, he wasconstitutionally succeeded by Prime Minister Paul Biya.  Biyareceived his own mandate in 1984, renewed in a single-candidate1988 election.  His term will expire in 1993.        Cameroon has never had a successful military coup d'etat,but, in April 1984, elements of the Republic Guard tried tooverthrow Biya.  The revolt was put down by loyal armed forces.Many conspirators were executed within months of the suppression;the last of those imprisoned were released April 1991 in a generalamnesty.        In the March 1, 1992, multi-party elections for theNational Assembly, the Cameroon People's Democratic Movement won 88of 180 seats.  It entered into a coalition with a small oppositionparty to retain a majority and form the present government.  Twoother parties also are represented in the assembly.ECONOMY        Cameroon's economy grew from independence in 1960 until1985.  In the mid-1970s and early 1980s, economic growth averaged8% yearly.  The country's petroleum production and a rich anddiverse agricultural base contributed to the growth.  Starting in1986, prospects darkened when the collapse of world prices forCameroon's major export commodities--petroleum, coffee, andcocoa--brought a trade shock.  An African economic success story inthe early 1980s, by the last half of the decade, Cameroon was in acrisis marked by a shrinking economy and serious money shortage.The US Embassy and the International Monetary Fund (IMF) estimatethat Cameroon had improving balance-of-payments through the firsthalf of the 1980s, mainly due to oil export revenues; lower worldcommodity prices led to a current account deficit during the secondhalf of the decade.  Still, per capita income is one of the highestin Sub-Saharan Africa, and it is a "middle-income" developingcountry.        Cameroon is implementing a stringent Structural AdjustmentProgram (SAP) developed in conjunction with the World Bank and theIMF.  It already has begun cutting its current account and budgetdeficits.  The government also has moved to liberalize the economy,such as easing bureaucratic regulation.        The government moved quickly in 1990 to create a free tradezone.  The zone, which is being created with the assistance of theUS Agency for Inter- national Development (USAID) and the OverseasPrivate Investment Corporation, will let Cameroon developinternationally competitive export industries.        Cameroon's new investment code offers foreign investors asimplified, transparent, and automatic investment approval process,including the creation of a "one-stop shop" that will provide manyinvestment authorization services in one place.  Foreign anddomestic investors are given 14 guarantees, including propertyownership, transfer of capital and income, and full expropriationcompensation.  Although France still is Cameroon's primary foreigninvestor, the government concluded an investment guaranty agreementwith the United States in 1967, and a bilateral investment accordwith the United States was ratified in 1989.        Petroleum is the country's single most important export,producing more than 40% of national export earnings.  Agriculturalcommodities, such as cocoa, coffee, and wood, also are importantsources of export income.    Agriculture remains the economy'smainstay and employs 70% of the work force.  The country isagriculturally self-sufficient, and plans are underway to abolishthe inefficient state-owned commodities marketing board.        Cameroon's manufacturing sector is small, about 13% of GDP.Light manufacturing predominates.  The government is privatizingmany public and para-public economic enterprises.        The country's physical infrastructure--such as the nationaltransportation system--is being improved gradually, but recentausterity budgets have given little scope to public works projects.The country has international airports at Douala and Garoua.  Athird major airport, at Yaounde, opened in March 1992.        Foreign financial assistance is important to Cameroon'sdevelopment. France has been the principal aid donor; the UnitedStates also has provided aid (see:  US-Cameroonian Relations).        For further information on foreign economic trends,commercial development, production, trade regulations, and tariffrates, contact the International Trade Administration, USDepartment of Commerce, Washington, DC 20230 or any CommerceDepartment district office.FOREIGN RELATIONS        Like other African countries, Cameroon has espousedpositions underlining its nonalignment and adherence to Third Worldprinciples.  Its condemnation of South Africa and support formajority rule in Namibia have been consistent and emphatic,although it also has shown moderation.  It has moved towardrelations with South Africa as President de Klerk works todismantle apartheid.        The country has close ties to France and has signed anumber of accords with it in economic, military, and culturalcooperation.  Cameroon has sought closer ties with other nations,including the United States and Germany, and has signed economicand cultural cooperation agreements with several countries.  Itbelongs to a number of multilateral organizations.        Diplomatic relations with communist nations were cautiousin the mid-1960s.  Although Cameroon grew less reluctant to pursuesuch relations as the communist rebel cause and its foreign supportdwindled, their importance has recently declined.DEFENSE        The Cameroonian military generally has been a politicalforce dominated by civilian control.  Traditional dependence uponFrench defense capability is being replaced by reliance on domesticforces.  The armed forces number 25,000-26,000 personnel in ground,air, and naval service, the majority in ground forces.  In FY 1990,Cameroon received $75,000 in African Coastal Security funds and$130,000 for Military Civic Action projects from the United States.US military assistance to Cameroon for FY 1991 included $275,000 inmilitary education and training.US-CAMEROONIAN RELATIONS        US-Cameroonian relations are excellent, though US emphasison human rights improvement has caused occasional short-livedfriction.  There have been numerous visits between the countries byheads of state and government officials over the last 2 decades.          The United States has provided bilateral economicassistance to Camer- oon since 1961 and has operated a Peace Corpsprogram since 1962.  Cameroon also receives US military assistance(see:  Defense).        USAID has an annual budget exceeding $20 million, and itsactivities have concentrated on agriculture, public health, highereducation, private sector development, human resources development,and support for economic and institutional reform.  Major projectsthat have received US economic assistance are the Trans-CameroonianRailway, the Kumba-Mamfe Road, the University Center at Dschang,and the free-trade zone.        About 150 Peace Corps volunteers work in Cameroon in threeprincipal sectors:        --  Agricultural extension--agro-forestry, inlandfisheries, community development, and marketing cooperatives;        --  Education--teaching English, math/science, and primaryeducation; and        --  Health--primary and maternal health care.        Each year, the US Government invites Cameroonian Governmentofficials, media representatives, educators, and scholars to visitthe United States to become better acquainted with the Americanpeople and to exchange ideas and views with their Americancolleagues.  About six Cameroonian graduate students are supportedby the Fulbright Program.  This cooperative effort in understandingis furthered through frequent visits to Cameroon by representativesof US business and educational institutions, as well as by visitsof Fulbright-Hays scholars and specialists.Principal US OfficialsAmbassador--Frances D. CookDeputy Chief of Mission--Tibor P. Nagy, Jr.Economic/Commercial Officer--Richard PetardPolitical Officer--James SwanUSAID Director--Peter BenedictPublic Affairs Officer (USIA)--Mary Roberta JonesDefense Attache--Lt. Col. Charles M. VuckovicPeace Corps Director--John CarterConsul General, Douala--Michele Sison        The US Embassy in Cameroon is located on Rue Nachtigal,Yaounde(tel: [phone]; telex: 8223KN), BP 817, Yaounde.  TheUS Consulate General is at 21 Avenue General de Gaulle, Douala(tel: [phone]; telex: 5233KN), BP 4006, Douala.</text>
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        <text>U.S. Department of State Background Notes:  Cambodia, September 1995 Bureau of Public Affairs   September 1995 Official Name: Kingdom of Cambodia  Profile  Geography  Area: 181,040 sq. km. (69,900 sq. mi.); about the size of Missouri.  Cities: Capital--Phnom Penh (pop. 700,000). Other cities--Battambang, Siem Reap, Kompong Cham, Kompong Speu, Kompong Thom.  Terrain: Central plain drained by the Tonle Sap (Great Lake) and Mekong and Bassac Rivers; heavy forests away from the rivers and the lake; mountains in the southwest (Cardamom Mountains) and north (Dangrek Mountains) along the border with Thailand.  Climate: Tropical monsoon with rainy season June-Oct. and dry season Nov.-May.  People  Nationality: Noun and adjective--Cambodian(s), Khmer.  Population (1994): 9.9 million.  Avg. annual growth rate: 4.1%.  Health: Infant mortality--116/1,000 live births. Life expectancy--47 years male; 50 years female. Ethnic groups: Cambodian 90%; Chinese and Vietnamese 5% each; small numbers of hill tribes, Chams, and Burmese.  Religions: Theravada Buddhism 95%; Islam; animism; atheism.  Languages: Khmer (official) spoken by more than 95% of the population, including minorities; English is increasingly popular as a second language.  Literacy: 63%.  Government  Type: The Royal Cambodian Government (RCG) is a constitutional monarchy formed on the basis of elections internationally recognized as free and fair; it was established on September 24, 1993.  Independence: November 9, 1953.  Constitution: September 24, 1993.  Branches: Executive--King; prime minister. Legislative--National Assembly of 120 elected members. Judicial--Supreme Court. Administrative subdivisions: 19 provinces and municipalities. Political parties and leaders: RCG Coalition: National United Front for an Independent, Neutral, Peaceful, and Cooperative Cambodia (FUNCINPEC) led by First Prime Minister Prince Ranariddh; Cambodian People's Party (CPP) led by Second Prime Minister Hun Sen; the Buddhist Liberal Democratic Party (BLDP); and Moulinaka. Outside the RCG: Party of Democratic Kampuchea (the Khmer Rouge), nominally led by Khieu Samphan.  Economy  GDP (1994): $2.4 billion.  Per capita GDP (1994): $225. Natural resources: Timber; gemstones; some iron ore, manganese, and phosphate; hydroelectric potential from the Mekong River.  Agriculture: About 4.8 million hectares (12 million acres) are arable. Products--rice, rubber, corn, meat, vegetables, dairy products, sugar, flour.  Industry: Types--rice milling, fishing, wood and wood products, textiles, cement, some rubber production. Trade (1994 est.): Exports--$303 million: natural rubber, rice, pepper, wood. Major partners--Singapore, Japan, Thailand, Taiwan, Hong Kong, Indonesia. Imports--$594 million: international food aid, fuels, consumer goods, machinery. Major partners--Singapore, Indonesia, Vietnam, Thailand, Russia, China.   U.S.-CAMBODIAN RELATIONS  The United States recognized Cambodia on February 7, 1950. Between 1955 and 1963, the U.S. provided $410 million in economic grant aid and $84 million in military assistance.   U.S.-Cambodia relations deteriorated in the early 1960s as U.S. involvement in Vietnam deepened. Diplomatic relations were broken by Cambodia in May 1965 but were reestablished on July 2, 1969; relations continued after the 1970 establishment of the Khmer Republic. Between 1970 and 1975, as a civil war in Cambodia escalated, the United States provided $1.2 billion in military assistance and $503 million in economic assistance to the Cambodian Government. Khmer Rouge forces defeated the Lon Nol government in 1975, and the U.S. mission was evacuated on April 12.  The United States condemned the brutal character of the 1975-79 Khmer Rouge regime. At the same time, the U.S. opposed the December 1978 invasion and subsequent occupation of Cambodia by Vietnam and supported ASEAN's efforts to achieve a political settlement of the problem. This goal was met when the Paris Conference reconvened in October 1991 to sign a comprehensive agreement.   The United States opened a mission in Phnom Penh on November 11, 1991. It was headed by Ambassador Charles H. Twining, Jr., who was designated U.S. Special Representative to the Supreme National Council of Cambodia (SNC). On January 3, 1992, the U.S. lifted its embargo against Cambodia, normalizing economic relations. The U.S. also ended blanket opposition to lending to Cambodia by international financial institutions. When the freely elected Royal Cambodian Government was formed on September 24, 1993, the United States and the Kingdom of Cambodia immediately established full diplomatic relations.   The United States continues to support efforts in Cambodia to build democratic institutions, promote human rights, foster economic development, eliminate corruption, improve security, achieve the fullest possible accounting for POW/MIAs, and bring members of the Khmer Rouge to justice for their crimes.  Principal U.S. Embassy Officials  Ambassador--Charles H. Twining, Jr. Deputy Chief of Mission--Robert C. Porter Political/Economic Officer--Larry Y. Baldwin    The U.S. embassy in Phnom Penh is on 27 EO Street 240; the mailing address is Box P, APO AP 96546; tel. [phone] or 855-23-26438; fax [phone].  GOVERNMENT AND POLITICAL CONDITIONS  On October 23, 1991, the Paris Conference reconvened to sign a comprehensive settlement giving the UN full authority to supervise a cease-fire, repatriate displaced Cambodians along the border with Thailand, disarm and demobilize factional armies, and prepare the country for free and fair elections.  SNC president Prince Sihanouk and other SNC members returned to Phnom Penh in November 1991 to begin Cambodia's resettlement process. The UN Advance Mission in Cambodia (UNAMIC) was deployed at the same time to maintain liaison among the factions and start de-mining operations to expedite the repatriation of about 370,000 Cambodians from Thailand. On March 16, 1992, the UN Transitional Authority in Cambodia (UNTAC) arrived to begin implementation of the UN settlement plan; the UN High Commissioner for Refugees started full-scale repatriation the same month. UNTAC grew into a 22,000-strong civilian and military peacekeeping force to conduct free and fair elections for a constituent assembly.  Over 4 million Cambodians--about 90% of eligible voters--participated in May 1993 elections.  The Khmer Rouge--or Party of Democratic Kampuchea (PDK), whose forces were never actually disarmed or demobilized--barred from participation some people in the areas it controlled (10%-15% of the country, holding 6% of the country's population).   Prince Ranariddh's FUNCINPEC Party was the top vote recipient with 45%, followed by Hun Sen's Cambodian People's Party and the Buddhist Liberal Democratic Party, respectively. FUNCINPEC then entered into a coalition with the other parties that had participated in the election. The parties represented in the 120-member National Assembly drafted and approved a new constitution, which was promulgated September 24, 1993.  The constitution established a multiparty, liberal democracy on the framework of a constitutional monarchy, with the former Prince Sihanouk elevated to King. Prince Ranariddh and Hun Sen became First and Second Prime Ministers, respectively, in the Royal Cambodian Government (RCG). The constitution provides for a wide range of internationally recognized human rights. The RCG continues to face an armed threat from the Khmer Rouge.  Principal Government Officials  King and Head of State--Norodom Sihanouk First Prime Minister--Norodom Ranariddh Second Prime Minister--Hun Sen    Cambodia maintains an embassy in the U.S. at 4500 16th St., NW, Washington, DC 20011; tel. [phone]; fax [phone].   TRAVEL AND BUSINESS INFORMATION  The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip aboard are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].   Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].  Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the U.S. Government Printing Office, Washington, DC 20420, tel. [phone].   Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).   Upon their arrival in a country, U.S. citizens are encouraged to register at the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you en route in case of an emergency  Further Electronic Information:  Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and a telephone line.  Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:  Gopher: dosfan.lib.uic.edu URL: gopher://dosfan.lib.uic.edu/ WWW: http://dosfan.lib.uic.edu/dosfan.html  U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].  Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].  National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.  ======================================== Background Notes Series -- Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC -- Series Editor:  Marilyn J. Bremner  Cambodia -- Department of State Publication 7747 -- September 1995 -- Editor: Lorin Hochman  This material is in the public domain and may be reprinted without permission; citation of this source is appreciated.  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. (###)</text>
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        <text>BURUNDI BACKGROUND NOTES (JULY 1991)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEJuly 1991Republic of BurundiPROFILEGeographyArea:  27,834 sq. km. (10,747 sq. mi.); about the size of Maryland. Cities:Capital--Bujumbura (pop. 240,000).  Other cities--Gitega (27,000), Rumonge(25,000), Ngozi (15,000).  Terrain:  Hilly, rising from 780 meters (2,600 ft.)at the shore of Lake Tanganyika to mountains more than 2,700 meters(9,000 ft.) above sea level.  Climate: Warm but not uncomfortable inBujumbura; cooler in high regions.PeopleNationality:  Noun and adjective--Burundi (sing. and pl.).  Population (1990):5.5 million.  Annual growth rate:  3.2%.  Ethnic groups:  Hutu 85%, Tutsi14%, Twa 1%. Religions:  Roman Catholic 62%, traditional African 32%,Protestant 5%, Muslim 1%. Languages:  Kirundi and French (both official),Swahili.  Education:  Years compulsory--6.  Attendance--45%.Literacy--40%.  Health:  Infant mortality rate--111/1,000.  Life expectancy--51yrs. Work force (1.9 million):  Agriculture--93%. Industry andcommerce--1.5%.  Services--1.5%.  Government--4%.GovernmentType:  Republic.  Independence:  July 1, 1962. Constitution:  Officiallysuspended following the September 1987 coup d'etat, although all rightsand guarantees apparently are being observed.  A new constitution is beingdrawn up.Branches:  Executive--president (chief of state, head of government) and21-member Cabinet. Legislative--65-member National Assembly dissolvedafter 1987 coup d'etat.  New elections will follow adoption of newconstitution.  Judicial--Supreme Court and subsidiary courts.Administrative subdivisions:  15 provinces and 114 communes.Political parties:  National Party of Unity and Progress (UPRONA).  Suffrage:Universal adult.Central government budget (1990): Revenues--$177 million.Expenditures--$203 million.Defense (1990):  19% of government budget.Flag:  White diagonal cross with two red and two green panels; white circlein center with three red stars.EconomyGDP (1988):  $1 billion.  Annual growth rate (1988):  -0.18%.  Per capitaincome (1988): $203.  Inflation rate (1989):  7%.Natural resources:  Nickel, uranium, rare earth oxides, peat, cobalt, copper,and platinum deposits not yet exploited.Agriculture (60% of GNP): Products--coffee, tea, cotton, food crops.  Arableland--89%, 46% cultivated.Industry (14% of GNP):  Types--light consumer goods, public worksconstruction, beverages.Trade (1988):  Exports--$132 million: coffee, tea, cotton, cigarettes, softdrinks, beer.  Major market--European Community.  Imports--$204 million:cement, asphalt, petroleum, fertilizer, pesticides, textiles, vehicles.  Majorsuppliers--Iran, France, Belgium, Germany, Japan.Official exchange rate:  175 Burundi francs=US$1.Fiscal year:  Calendar year.International AffiliationsUN and some of its specialized and related agencies, Organization ofAfrican Unity (OAU), International Coffee Organization, EconomicCommunity of the Great Lakes (CEPGL), Economic Commission for Africa(ECA), Kagera River Basin Organization (KBO), Non-Aligned Movement,Group of 77, Preferential Trade Agreement for Eastern and Southern AfricanStates (PTA), African, Caribbean, and Pacific Group of States.PEOPLEBurundi's population density is one of the highest in Sub-Saharan Africa.Most people live on family farms. Major urban concentrations are inBujumbura and Gitega. The population is made up of three ethnicgroups--Hutu, Tutsi, and Twa. Hutus (85%) are primarily farmers whoseBantu-speaking ancestors migrated into Burundi 800-1,000 years ago. TheTutsi (14%) are a pastoral people who apparently migrated from Ethiopiaseveral hundred years later. Since independence in 1962, the Tutsis havebeen in effective control of the government. Twa (l%) appear to be the lastsurvivors of aboriginal pygmies driven into marginal areas by successiveinvaders.HISTORYBefore European arrival, Burundi was a kingdom with a highly stratified,feudal social structure. Rulers were drawn from princely dynastic families(ganwa), from whom a king (mwami) was chosen. Much of the country'sprecolonial history was characterized by constant power struggles betweenthe ganwa and the mwami. When the Tutsis introduced cattle into Burundi,the animals were maintained as an indication of wealth. Over the centuries,the Hutus gave up title to their lands to Tutsis in return for cattle, whichresulted in a feudal landholding system known as Ubugererwa. Althoughformally abolished in 1977, this system made possible the continuingpolitical, social, and economic domination of the majority Hutu by theminority Tutsis.European explorers and missionaries made brief visits to the area as earlyas 1858; however, Burundi did not come under European administrationuntil the 1890s, when it became part of German East Africa. Belgian troopsoccupied the country in 1916. In 1923, the League of Nations mandated itto Belgium as part of the Territory of Ruanda-Urundi, now Rwanda andBurundi. Following World War II, Ruanda-Urundi became a UN TrustTerritory with Belgium as the administering authority. Burundi becameindependent on July 1, 1962.Following independence, the mwami was established as a constitutionalmonarch, and the country fell into political disorder and economicstagnation. In November 1966, with army backing, Capt. Michel Micombero,a Tutsi, proclaimed a republic, although a de facto Tutsi-led militarygovernment ensued. Since then, the Tutsi-dominated military has controlledthe government. In November 1976, Lt. Col. Jean-Baptiste Bagaza, also aTutsi, came to power in a bloodless coup and continued military rule.Bagaza himself was overthrown in a bloodless coup in September 1987 byanother Tutsi, Army Maj. Pierre Buyoya, who created the Military Committeeof National Salvation. This regime retained effective governmental powerthrough 1990. When the country returned to civilian rule.GOVERNMENT AND POLITICAL CONDITIONSThe Buyoya coup was, in large part, a reaction against the excesses of theBagaza regime, which had taken a hard line against dissent. The focal pointof the Bagaza regime's campaign of persecution was organized religion,particularly, the Catholic Church; Bagaza sought to weaken, if not eliminatealtogether, its influence by closing schools, confiscating its property,arresting and detaining priests and churchgoers, expelling foreignmissionaries, and restricting hours of worship.Other religions also were persecuted, and many Seventh-day Adventistsand Jehovah's Witnesses were detained without charges under extremelyharsh conditions. In l987, Amnesty International estimated that there mayhave been 100 political prisoners held at any one time during 1986.Buyoya's coup and his significant reform policies have brought about adramatic improvement in the human rights situation. The new governmentimmediately freed all political prisoners and quickly rescinded all measurestaken against religious groups with the exception of the Jehovah'sWitnesses, allegedly because they refuse to recognize the authority of thestate. Although the sect remains banned, believers are permitted to practicetheir religion, and its leaders have  recently applied for legal status.Since 1987, Buyoya has used the sole political organization in Burundi, theNational Union for Progress (UPRONA) and its affiliated movements--theUnion of Workers of Burundi, the Union of Burundi Women, and the Unionof Revolutionary Burundi Youth--to serve as the framework for organizingthe population in efforts to develop the country.  UPRONA partymembership is open to all Burundi citizens.The major policy priority of the Buyoya government is ethnic reconciliationand national unity, which reflects the country's history of ethnic conflict.Since independence, Burundi has been plagued by conflict between theHutus and the Tutsis, primarily, because of the unequal distribution ofpolitical and economic power. About 100,000 Hutus sought refuge in othercountries, but several thousand later returned from Zaire and Tanzania, anda judicial mechanism was established to return their land to them.In 1988, Hutus initiated violence against Tutsis, prompting the Tutsis toretaliate. In August, 5,000 to 10,000 people were estimated killed, and50,000 Hutus were displaced or fled the country, primarily to Rwanda. Mostof the refugees returned by early 1989 under a general amnesty programnegotiated by Burundi, Rwanda, Zaire, and the office of the UN HighCommissioner for Refugees (UNHCR).The Republic of Burundi remains a one-party state headed by PresidentBuyoya. Currently the constitution is officially suspended, and the nation isruled through the 31-member Military Committee. However, in May 1990,President Buyoya announced a timetable for political and institutionalreform, beginning with the adoption of a national unity charter.  The MilitaryCommittee was dissolved in December 1990.As proposed by a government commission investigating the causes of the1988 violence, the national unity charter will form the basis of futuredemocratic reforms. A UPRONA central party committee replaced the rulingMilitary Committee and will lead the country while a new constitution (to beadopted by referendum in 1991) is being drawn up.  President Buyoya hasnot dismissed the idea of multi-partyism, stating that other parties will bepermitted as long as they are not based on ethnic lines.Although Hutu participation national life remains limited, the situation hasimproved since 1987, and the government has pledged to continue tocorrect imbalances. The Buyoya government includes a number of Hutuministers, among them the prime minister.Principal Government OfficialsPresident--Maj. Pierre BuyoyaPrime Minister--Adrien SibomanaForeign Minister--Cyprien MbonimpaAmbassador to the United States--Julien KavakureAmbassador to the United Nations--Benoit SeburyamoBurundi maintains an embassy in the United States at Suite 212, 2233Wisconsin Avenue NW, Washington, DC 20007 (tel. [phone]).ECONOMYBurundi, one of the world's poorest countries, has the second densestpopulation rate in sub-Saharan Africa. More than 90% of the people live offsubsistence farming. The population has increased at such a fast rate, thata family's landholdings provide only marginal support. Bad weather canproduce famine in the most heavily populated areas. Soil exhaustion andsevere erosion also have hampered production. As a result, per capita foodproduction has stagnated or declined since the mid-1980s.Coffee provides up to 90% of Burundi's export earnings, making thecountry's economy extremely dependent on the size and quality of the cropand on world prices. During the 1980s, revenues for Burundi's high-qualityarabica coffee fluctuated considerably. With the collapse of the InternationalCoffee Agreement in 1989, foreign exchange earnings were cut in half. Inresponse, the government avoided decreases in the producer price bydevaluing the Burundi franc by 10%, which had the dual effect of reducingBurundi buying power and making exports more competitive. Even if lost revenues are recovered, Burundi still remains highly dependenton foreign aid. Since 1986, it has participated in a World Bank/InternationalMonetary Fund Structural Agreement Program which focuses on privatizingenterprises and attracting foreign investment.  Burundi also receives aidfrom Belgium and the United States.  In 1989, 40% of its foreign exchangeearnings went toward external debt.The government's long-term strategy is to improve the quality of its coffee.It has built several new coffee-washing stations and installed sophisticateddrying, sorting, and processing factories.In order to diversify exports, the government has encouraged theproduction of tea, cotton, and some manufactured goods.Tea is Burundi's second largest export, although the 3,650 metric tonsproduced in 1989 represented only 4% of the country's total exports.Nevertheless, altitude and growing conditions produce a very high qualitytea, which received the second highest average price at a 1989 Londonauction. Continued technical assistance from the European Community, aswell as local programs to increase production and expand factories, willincrease the importance of the tea industry.The cotton industry thrived in the early 1980s, but the 1989 crop fell 4%,due to torrential rains.  Although the 7,200 tons produced fell short of thepredicted 8,500, the $183,000 in earnings allowed it to remain Burundi'sthird largest export.Burundi's manufacturing sector, which centers on cotton cloth, soft drinks,beer, cigarettes, fibro-cement roofing, and glass bottles, is directed towardimport substitution and the domestic market. Manufacturing exports earned$7.2 million in 1989.High-grade nickel deposits and other minerals were discovered in the1980s, providing new resource potential. The government, internationalorganizations, and several firms are studying techniques for exploiting theseminerals.In 1979, Burundi enacted an investment code providing basic guarantees.In 1983, it began negotiations with the United States for a bilateralinvestment treaty. The government holds a majority interest in about 50mixed enterprises, or "parastatals," with substantial foreign participation.Recently, the government began to implement reforms of the parastatalsector to increase efficiency and improve performance, in some casesdivesting control altogether and moving them to the private sector.FOREIGN RELATIONSBurundi seeks good relations with all countries, especially its neighborsRwanda, Zaire, and Tanzania. Burundi is a member of the Organization ofAfrican Unity, the African Development Bank, the Preferential TradeAgreement for Eastern and Southern African states, and other regionalgroups.Trade with other African countries is minimal. To spur regional development,Burundi helped form the Economic Community of the Great Lakes (CEPGL)with neighboring Rwanda and Zaire, although the effect of this group hasbeen limited.The country's main trading partners are EC countries, specifically Germany,Finland, the United Kingdom, France, and Belgium. Burundi also imports oilfrom Iran and vehicles from Japan, as well as exporting some goods toJapan.Burundi receives substantial amounts of development assistance, especiallyfrom the EC and France. Germany, China, the United Nations, and theWorld Bank also are major donors, and the United States and Belgium haverecently increased aid. Several Organization of Petroleum ExportingCountries also have provided assistance through loans or grants. TheSoviet Union and North Korea have limited programs.US-BURUNDI RELATIONSThe US Government's primary interest in Burundi is humanitarian. Thethrust of US policy is to encourage political stability, democratic change,and peaceful economic development.A US consulate opened in Bujumbura in October 1960 was elevated toembassy status in July 1962. Difficult periods in bilateral relations occurredin 1966, when the US Ambassador was expelled without cause, and in1972-73, during Burundi's internal strife.Following the 1972 ethnic conflict, the US Government and relief groupscontributed almost $1 million in disaster relief. In 1984, when Burundi wasfaced with critical food shortages due to drought, the US moved quickly tosend emergency food shipments. In 1988, the United States praisedBuyoya's moderate response to the ethnic violence and has, subsequently,encouraged him to continue political reform.The US Agency for International Development (USAID) program in Burundifocuses on increasing food production, promoting family planning andhealth, and training Burundi managers and technicians. In 1989, $2.5 millionwas budgeted for development assistance, and this figure is expected toincrease to $7.5 million in 1991.One development project is designed to increase the production of corn,wheat, and potatoes.  Another provides technical and commodity supportto extend infant-related health services throughout the entire country. Mostrecently, USAID instituted a $15 million program to encourage the growthof private-sector enterprises through trade promotion and technicalassistance.In education, USAID grants African Graduate Program Fellowships toseveral Burundi students each year for training at the Master of Sciencelevel in agricultural economics, physiology, and economic planning. Inaddition, USAID's African Manpower Development Program providesnon-degree training each year for skilled technicians in the agriculture andrural development.The Peace Corps inaugurated a program in Burundi in March 1983.Currently, about 26 volunteers participate in projects promoting inland fishproduction, park preservation, women's programs, and marketing skills.The US Information Service (USIS) operates a cultural center in Bujumburawith a reading room and English-language courses throughout the year.The Fulbright Program has sponsored an exchange of American professorsto teach in Burundi and scholarships for Burundi students at US universities.USIS also funds travel to the United States for a number of Burundi officialsunder the International Visitor Grant Program.Principal US OfficialsAmbassador--Cynthia Shepard PerryDeputy Chief of Mission--David B. DunnEconomic/Political/Commercial Officer-- Edwin P. Brown, Jr.Administrative Officer--Herbert R. BrownConsular Officer--Emily E. JeffersRegional Security Officer--Joseph DavisonPublic Information Officer (USIS)--Walter  TheurerDirector, AID Mission--Glenn SlocumThe US Embassy is at Avenue des Etats Unis  (PO Box 1720), Bujumbura(tel. 23455).</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  BURKINA FASOPROFILEGeographyArea:  274,200 sq. km. (106,000 sq. mi); about the size of Colorado.Cities:  Capital-Ouagadougou (pop. 500,000).  Othercities-Bobo-Dioulasso (250,000), Koudougou (70,000).  Terrain:Savanna; brushy plains, and scattered hills.  Climate:  Sahelian;pronounced wet and dry seasons.PeopleNationality:  Noun and adjective-Burkinab .  Population (1988):  8.5million.  Annual growth rate (1985):  3.3%.  Ethnic groups:  Mossi,Bobo, Mande, Fulani, others.  Religions:  Traditional African 45%,Muslim 40%, Christian 15%.  Languages:  French (official), More,others.  Education:  Attendance-(1985): 32%.  Literacy-27%.  Health:Infant mortality rate-152/1,000.  Life expectancy-48 yrs.  Work force: Agriculture-92%.  Industry-2.1.  Commerce, services, andgovernment-5.5%.GovernmentType:  Military.  Independence:  August 5, 1960. Constitution:November 27, 1977 (abolished Nov. 25, 1980).Branches:  Executive-president (chief of state, head of government).Legislative-none.  Judicial-independent.Subdivisions:  30 provinces.Political parties:  Five political organizations recognized under theumbrella organization of the Popular Front; two are Marxist-Leninist,and three are social democratic. Suffrage:  N/A.Central government budget (1987):   $174 million.Defense (1987 est.):  16% of government budget.National holiday:  Revolution Day,     August 4.Flag:  Two horizontal bands-red and green top to bottom, with ayellow star in the middle.EconomyGDP (1987 est.):  $1.6 billion.  Annual growth rate (1982-87):  4.3%.Per capita income (1987):  $174.  Avg. inflation rate 1987, -2.1%;1988:  4.4%Natural resources (limited quantites): Manganese, gold, limestone,marble, phosphate, zinc.Agriculture (36.4% of GNP):  Products-cotton, millet, sorghum, rice,livestock, peanuts, shea nuts, maize.Industry (22% of GNP):  Types-mining, agricultural processing plants,brewing and bottling, light industry,Trade (1987):  Exports-f.o.b. $233.6 million:  cotton, gold, livestock,peanuts, shea nut products.  Major markets-C te d'Ivoire, EuropeanCommunity, China.  Imports-c.i.f. $535.8 million.Official exchange rate (1988):  Floats with French franc CommunautFinanci re Africaine (CFA) francs 50=1FF; about 300 CFAfrancs=US$1.Fiscal year:  Calendar year.Membership in International OrganizationsUN and some of its specialized and related agencies; Organizationof African Unity (OAU); Council of the Entente; West AfricanEconomic Community (CEAO); Economic Community of WestAfrican States (ECOWAS-Burkina recently hosted an ECOWASsummit where Blaise Compaore was elected president of theorganization); West African Monetary Union (WAMU); Niger BasinAuthority; Permanent Inter-State Committee on Drought Control inthe Sahel (CILSS); INTELSAT; Sahel Club; Organization of theIslamic Conference (OIC); Nonaligned Movement; Lome Convention.GEOGRAPHYBurkina Faso is a landlocked Sahel country that shares borders withsix nations.  It lies between the Sahara Desert and the Gulf ofGuinea, south of the loop of the Niger River.  The land is green in thesouth, with forests and fruit trees, and desert in the north.  Most ofcentral Burkina Faso lies on a savanna plateau, 198-305 meters(650-1,000 ft.) above sea level, with fields, brush, and scatteredtrees.  Burkina Faso's game preserves-the most important of whichare Arly, Nazinga, and Park W-contain lions, elephants,hippopotamus, monkeys, warthog, and antelopes.  Tourism is notwell developed.Annual rainfall varies from about 100 centimeters (40 in.) in the southto less than 25 centimeters (10 in.) in the extreme north andnortheast, where hot desert winds accentuate the dryness of theregion.  Burkina Faso has three distinct seasons: warm and dry(November-March); hot and dry (March-May); and hot and wet(June-October).  Rivers are not navigable.PEOPLEBurkina Faso's 8.5 million people belong to two major West Africancultural groups-the Voltaic and the Mand .  The Voltaic are far morenumerous and include the Mossi, which make up about one-half ofthe population.  The Mossi claim descent from warriors who migratedto present-day Burkina Faso and established an empire that lastedmore than 800 years.  Predominantly farmers, the Mossi are stillbound by the traditions of the emperor, the Moro Naba, who holdscourt in Ouagadougou.  About 5,000 Europeans reside in BurkinaFaso.Most of Burkina Faso's people are concentrated in the south andcenter of the country, sometimes exceeding 48 per square kilometer(125/sq. mi.).  This population density, high for Africa, causes annualmigrations of hundreds of thousands of Burkinab  to C te d'Ivoireand Ghana for seasonal agricultural work.A plurality of Burkinab  adhere to traditional African religions.  Theintroduction of Islam to Burkina Faso was initially resisted by theMossi rulers.  Christians, predominantly Catholics, are largelyconcentrated among the urban  lite.Few Burkinab  have had formal education.  Schooling is free but notcompulsory, and only about 29% of Burkina Faso's primaryschool-age children receive a basic education.  The country's soleinstitution of higher education, the University of Ouagadougou, wasfounded in 1974.HISTORYUntil the end of the 19th century, the history of Burkina Faso wasdominated by the empire-building Mossi, who are believed to havecome from central or eastern Africa sometime in the 11th century.For centuries, the Mossi peasant was both farmer and soldier, andthe Mossi people were able to defend their religious beliefs andsocial structure against forcible attempts to convert them to Islam byMuslims from the northwest.When the French arrived and claimed the area in 1896, Mossiresistance ended with the capture of their capital at Ouagadougou.In 1919, certain provinces from the Ivory Coast were united into aseparate colony called the Upper Volta in the French West Africafederation.  In 1932, the new colony was dismembered in a move toeconomize; it was reconstituted in 1937 as an administrative divisioncalled the Upper Coast.  After World War II, the Mossi renewed theirpressure for separate territorial status, and on September 4, 1947,Upper Volta became a French West African territory again in its ownright.A revision in the organization of French Overseas Territories beganwith the passage of the Basic Law (Loi Cadre) of July 23, 1956.  Thisact was followed by reorganizational measures approved by theFrench parliament early in 1957 that ensured a large degree ofself-government for individual territories.  Upper Volta became anautonomous republic in the French Community on December 11,1958.Upper Volta achieved independence on August 5, 1960.  The firstpresident, Maurice Yam ogo, was the leader of the VoltaicDemocratic Union (UDV).  The 1960 constitution provided for electionby universal suffrage of a president and a national assembly for5-year terms.  Soon after coming to power, Yam ogo banned allpolitical parties other than the UDV.  The government lasted until1966 when after much unrest-mass demonstrations and strikes bystudents, labor unions, and civil servants-the military intervened.  Themilitary coup deposed Yam ogo, suspended the constitution,dissolved the National Assembly, and placed Lt. Col. AboukarSangoul  Lamizana at the head of a government of senior armyofficers.  The army remained in power for 4 years, and on June 14,1970, the Voltans ratified a new constitution that established a 4-yeartransition period toward complete civilian rule.  Lamizana remainedin power throughout the 1970s as president of military or mixedcivil-military governments.  After conflict over the 1970 constitution,a new constitution was written and approved in 1977, and Lamizanawas re-elected by open elections in 1978.Lamizana's government faced problems with the country'straditionally powerful trade unions, and on November 25, 1980, Col.Saye Zerbo overthrew President Lamizana in a bloodless coup.Colonel Zerbo established the Military Committee of Recovery forNational Progress (CMRPN) as the supreme governmental authority,thus eradicating the 1977 constitution.  Since then, the country hasbeen under military rule.Colonel Zerbo also encountered resistance from trade unions andwas overthrown 2 years later, on November 7, 1982, by Maj. Dr.Jean-Baptiste Ou draogo and the Council of Popular Salvation(CSP). The CSP continued to ban political parties and organizations,yet promised a transition to civilian rule and a new constitution.Factional infighting developed between the moderates in the CSPand the radicals, led by Capt. Thomas Sankara, who was appointedprime minister in January 1983.  The internal political struggle andSankara's leftist rhetoric led to his arrest and subsequent efforts tobring about his release, directed by Capt. Blaise Compaor .  Thisrelease effort resulted in yet another military coup d'etat on August4, 1983.After the coup, Sankara formed the National Council for theRevolution (CNR), with himself as president.  Sankara alsoestablished Committees for the Defense of the Revolution (CDRs) to"mobilize the masses" and implement the CNR's revolutionaryprograms.  The CNR, whose exact membership remained secret untilthe end, contained two small intellectual Marxist-Leninist groups.Sankara, Compaor , Capt. Henri Zongo and Maj. Jean-BaptisteBoukary Lengani, all leftist military officers, dominated the regime.The CNR's policies focused on the peasantry and the redistributionof wealth, yet were more nationalist than Maoist.  On August 4, 1984,Upper Volta changed its name to Burkina Faso, meaning "thecountry of upright people."  Sankara, a charismatic leader, sought byword, deed, and example to mobilize the masses and launch amassive bootstrap development movement.  But many of the strictausterity measures taken by Sankara met with growing resistanceand disagreement.  Despite his initial popularity and personalcharisma, problems began to surface in the implementation of therevolutionary ideals.One of the key problems involved the conflicting role of the CDR'sand the several trade unions.  The latter attempted to retain theirtraditional independent power base, but the government moved toblock efforts and arrested and intimidated union leaders.  At thesame time, the CDR's, which were formed as popular massorganizations, deteriorated in some areas into gangs of armed thugs.By 1987, tensions over the repressive tactics of the government andits overall direction were mounting steadily.  On October 15, 1987,Sankara was assassinated and Compaor  became leader of thenewly formed Popular Front (FP).GOVERNMENT AND POLITICAL CONDITIONSPresident Compaor  and the Popular Front pledged to continue andpursue the goals of the revolution and to "rectify" Sankara's"deviations" from the original aims.  Compaore, Zongo, and Lenganiformed the core of the FP, along with three small groups of leftistmilitary and civilians.  The new government, realizing the need forpopular support, tacitly changed many of Sankara's policies.  The FPlowered the price of beer, rehired civil servants fired by Sankara,raised civil servants' salaries, and disarmed the CDR's, which wererenamed Revolutionary Committees (CR).The political situation has stabilized and moderated considerablysince October 1987.  As part of a much-discussed political "opening"process, several political organizations, three of them non-Marxist,have been accepted under an umbrella political organization createdin June 1979 by the Popular Front.  Right-wing political organizationsassociated with the pre-1983 period remain on the fringes.Principal Government OfficialsPresident of the Popular Front, Chief of State, Head ofGovernment-Capt. Blaise CompaorMinistersPeople's Defense and Security Affairs-Maj. Boukary Jean-BaptisteLenganiEconomic Promotion-Capt. Henri ZongoCoordination with the Popular Front-Oumarou Cl ment Ou draogoPeasant's Cooperative Action-Capt. Laurent S dogoExternal Relations-Issouf GoInformation and Culture-B atrice DamibaHealth and Social Action-Kanidoua NabaoSports-Capt. Theodore Kilimit  HienLabor, Social Security and Public Functions-Salif SampebogoFinances-Bintou SanoghoGuardian of the Seal, Minister of Justice-Sambo Antoine KomiTransport and Communications-Thomas SanonSecondary and Higher Education, Scientific Research-MouhoussineNacroPrimary Education and Literacy-Alice Tiendreb ogoEnvironment and Tourism-Maurice Dieudonn  BonanetTerritorial Administration-Jean L onard CompaorCommerce and People's Supply-Fr d ric Assumption KorsagaEquipment-Daprou KambouWater-Alfred NombrAgriculture-Albert GuigmaSecretary General of the Government and the Council ofMinisters-Prosper VokoumaAmbassador to the United States-Paul KaborBurkina Faso maintains an embassy in the United States at 2340Massachusetts Ave. NW., Washington, DC 20008 (tel. [phone]).ECONOMYBurkina Faso is one of the poorest countries in Africa, with GNP percapita estimated at $174.  Approximately 80% of the population relieson subsistence agriculture, with only a small fraction directly involvedin industry and services.  The agricultural economy remains highlyvulnerable to fluctuations in rainfall.  Drought, poor soil, lack ofadequate communications and other infrastructure, a low literacyrate, and a stagnant economy are all longstanding problems.  Theexport economy also remains subject to fluctuations in world prices.Many Burkinab  migrate to neighboring countries for work, and theirremittances provide a substantial contribution to the balance ofpayments.  Burkina Faso suffers chronic budget andbalance-of-payments deficits and increasing arrears.  It is attemptingto improve the economy by developing its mineral resources,improving its infrastructure, making its agricultural and livestocksectors more productive and competitive, and stabilizing the suppliesand prices of food grains.President Compaor  has spoken increasingly of the need for anactive business community, and attitudes within the private sectorseem positive for the future.  Currently, Burkina is negotiating withthe International Monetary Fund (IMF) and the World Bank to obtaineconomic support.About 87% of the labor force works in the agricultural sector.  Thesesubsistance farmers eke out a living amidst problems of climate, soilcomposition, soil erosion, and rudimentary technology.  The staplecrops are millet, sorghum, maize, and rice, and the cash crops arecotton, groundnuts, karit  (shea nuts) and sesame. Livestock, oncea major export, has declined.Industry, still in an embryonic stage, is located primarily inBobo-Dioulasso, Ouagadougou, Banfora, and Koudougou.Manufacturing is limited to food processing, textiles, and otherimport-substitution, heavily protected by tariffs.  Some factories areprivately owned, and government policy shows increasing support forexpansion of the private sector.  Burkina Faso's exploitable naturalresources are limited, although a manganese ore deposit is locatedin the remote northeast.  Gold mining has increased significantlysince the mid-1980s, and in 1988 gold replaced cotton for the firsttime as the country's leading export money earner.The Abidjan-Niger railroad (RAN) connects Burkina with the excellentdeepwater port at Abidjan, C te d'Ivoire, 1,150 kilometers (712 mi.)away.  Burkina Faso has about 11,150 kilometers (7,120 mi.) ofroads, although only 1,300 kilometers have all-weather surfaces.FOREIGN RELATIONSAfter taking power, the Sankara regime proclaimed its affinity withCuba, Libya, North Korea, and the Soviet Union while tryingsimultaneously to obtain increased support from its principal donorsin Western Europe and the United States. The Compaor  regime hasfocused on good relations with neighbors and a less confrontationalstance with Western nations, while maintaining its rhetorical supportfor anti-imperialistic states.DEFENSEThe Burkinab  Armed Forces, including the gendarmerie, numberabout 8,500, and include 7,000 army and 200 air force personnel, inaddition to 1,300 paramilitary gendarmerie and other security forces.The air force has nine fixed-wing aircraft.  Military regiments arestationed in Ouagadougou, Dedougou, Dori, Ouahigouya,Bobo-Dioulasso, and Po.Burkina Faso's military has played an important role in the nation'shistory.  Frequently, the military has controlled the government orhas guaranteed the power of civilian leaders.  In addition, militarypersonnel often perform development tasks requiring specialengineering or other technical skills not generally found in the civilianpopulation.The United States sponsors a specialized military training programfor Burkina Faso that has brought about 30 military personnel to theUnited States.  France, the Federal Republic of Germany, the UnitedKingdom, the Soviet Union, North Korea, the Netherlands, Morocco,Cameroon, Cote d'Ivoire, and Libya also have provided training forthe Burkinab  military.US-BURKINA RELATIONSThe United States generally has good relations with Burkina Fasoand supports its economic development.  US commercial interestsare small but growing in Burkina Faso.  Minerals exploration, solarenergy, communications equipment, water resources, livestockproduction, and food processing offer potential areas for commercialinvestment.The US development assistance program in Burkina Faso grew outof the US response to the drought that plagued the Sahel countriesfrom 1968 to 1974.  Between 1973 and 1975, Burkina Faso was amajor recipient of US emergency food assistance.  Following this, theUnited States and other international donors began to work with theSahel countries to plan and implement long term developmentassistance programs.  Fiscal year 1989 budget figures are $9.5million in food aid and $2.9 million in project aid.  The United Statesmaintained a Peace Corps program in Burkina Faso until the 1987,when the Sankara government allowed the agreement to lapse.Principal US OfficialsAmbassador-David H. ShinnCounselor of Embassy-Robert M. BeecroftPolitical/Economic Officer; Commercial Attach -David C. BeckerPolitical/Military Officer-Michael E. DoughertyAdministrative Officer-Walter J. WoolwineAID Representative-Wilbur G. ThomasPublic Affairs Officer  (USIS)-Cynthia B. CaplesThe US Embassy in Burkina Faso is located on Avenue RaoulFollereau in Ouagadougou.  Its mailing addresses are: (internationalmail) 01 B.P. 35, Ouagadougou 01, Burkina Faso; (US mail)Ouagadougou/DOS, Washington, DC 20521-2440; tel. [phone]), telex: AEMB 5290 BF; FAX: [phone].TRAVEL NOTESCustoms:  Visas and yellow fever innoculations are required forentry.Climate and clothing:  Except for the rainy season (June-Oct.), theclimate is similar to Arizona's.  Summer clothing is suitable forOuagadougou; a light wrap is recommended during the cool season(Nov.-Feb.).Health:  Local medical services are limited.  Unwashed fruits andvegetables and undercooked meats are unsafe to eat.  Tap water isnot potable; bottled mineral water is available at hotels andrestaurants.  Malaria suppressants should be started 2 weeks beforearrival and continue 8 weeks after departure.  Burkina haschloroquine-resistant malaria.  Typhoid and gamma globulin(hepatitis) innoculations are recommended for travel in rural areas.Do not swim in lakes or streams, which may be infested withbilharzia.  Health requirements change; check latest information.Transportation:  Ouagadougou's international airport is served byseveral weekly flights from Paris, Abdijan, Niamey, Bamako, Dakar,Algiers, Moscow, and Tripoli.  Air Burkina operates all year betweenthe capital and other large towns in Burkina Faso, as well as toNiamey, Bamako, Lome, Cotonou, and Abidjan.  Ouagadougou islinked by paved roads to Lome, Abidjan, Niamey and Bamako, andby rail to Abidjan.  The uncertainty of road conditions complicatestransportation elsewhere.  Taxis are available in large towns.Telecommunications:  Long-distance telephone service is via satellite.Cable, telex, and FAX services are available.  Cable and telex aremore reliable.  Ouagadougou is five standard time zones ahead ofeastern standard time.Tourist attractions:  Although by international standards touristfacilities seem limited, Burkina Faso does present touristopportunities for the adventurous traveler.  Worthwhile visits includethe National Museum and artisan centers in Ouagadougou andBobo-Dioulasso, the Nazinga, Arly and Park W game preserves, andinteresting market towns such as Gorom-Gorom.  For details, writethe Office National Du tourisme du Burkina Faso, 01 B.P. 624,Ouagadougou.Every other February, Burkina hosts a widely attended InternationalAfrican Film Festival called FESPACO.Further InformationThese titles are provided as a general indication of material publishedon this country.  The Department of State does not endorse unofficialpublications.Andriamirado, Sennen. Il s'Appelait Sankara. Paris: Jeune  AfriqueLivres, 1989.Blumenthal, Susan. Bright Continent.  Garden City:  AnchorPress/Doubleday, 1984.Politique Africaine, V.20 (December 1985), "Le Burkina Faso."  Paris:Eds Karthala, 1985.Savonnet-Guyot, Claudette. Etat et Societe au Burkina. Paris: Eds.Karthala, 1986.Skinner, Elliot P. The Mossi of the Upper Volta:  The PoliticalDevelopment of a Sudanese People. Stanford:  Stanford UniversityPress, 1964. . "Sankara and the Burkinabe Revolution," in Journal ofModern African Studies, Vol. 26, No. 3, Sept.1988, pp. 435-457.Thompson, Virginia. West Africa's Council of the Entente. Ithaca:Cornell University Press, 1972.Published by the United States Department of State --  Bureau ofPublic Affairs  -- Office of  Public Communication -- Washington, DC-- June 1990  Editor:  Juanita AdamsDepartment of State Publication 8201Background Notes Series  -- This material is in the public domainand may  be reprinted without permission; citation of this source isappreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC 20402</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  BULGARIA (CONTINUED)Official Name:People's Republic of BulgariaU.S.-BULGARIAN RELATIONSDiplomatic relations between the United States and Bulgaria wereestablished on September 19, 1903, but were broken on December13, 1941, when Bulgaria declared war on the United States. Thepost-World War II treaty of peace between the Allies and Bulgariaentered into force September 15, 1947.The first postwar U.S. minister to Bulgaria presented his credentialson November 8, 1947. Relations were suspended in February 1950,however, when Bulgaria refused to withdraw false charges ofcomplicity in espionage made against the U.S. minister during thetrial of the Bulgarian Communist Party Leader Traicho Kostov.Another U.S. minister was accredited to Bulgaria in 1960 afterBulgaria withdrew as false the charges made against hispredecessor.Following settlement of certain claims of U.S. citizens againstBulgaria as a result of an agreement signed on July 2, 1963, theUnited States resumed paying government benefits to personsentitled to them living in Bulgaria, and Bulgaria was allowed to opena trade office in New York City. The Bulgarian and U.S. Legations atWashington and Sofia were raised to embassy status on November28, 1966.  A consular agreement was concluded, which becameeffective on May 28, 1975.Other advances were the cultural and scientific exchange agreementsigned during the June 1977 visit by the late Chairman of theCommittee for Art and Culture, Lyudmila Zhivkova, and the reciprocalelimination of discriminatory bilateral restrictions on the travel ofaccredited diplomats on November 9, 1977. A joint agriculturalstatement on cooperation between the U.S. Department ofAgriculture and the Bulgarian National Agro-Industrial Union wassigned in November 1979. A maritime agreement was signed inFebruary 1981 to facilitate marine traffic between the two countries.U.S. cultural and other exchanges with Bulgaria have been muchsmaller than with other East European countries. In 1970, twosignificant exchange agreements were negotiated-one between theNational Academies of Science and the other between theInternational Research and Exchange Board and the BulgarianCommittee for Friendship and Cultural Relations with ForeignCountries. These were followed by the cultural and scientificexchanges agreements that entered into force on March 23, 1978,and has been renewed successively every 2 years; the latestextension was in June 1986.U.S.-Bulgarian trade has never accounted for more than a smallfraction of either country's total commerce. Bilateral trade, whichpeaked in 1981 at $283 million, was $159 million in 1988.  Since themid-1980s, U.S.-Bulgarian trade has averaged $150 million annually,with the balance favoring the United States, and has consistedmostly of agricultural raw materials.  The United States has notextended most-favored-nation status to Bulgaria since 1951.U.S. policy toward Bulgaria has sought to promote a moreconstructive, reciprocal relationship by resolving specific, concreteissues.  Consistent with the Helsinki Final Act, the United States hasendeavored to encourage improved Bulgarian respect for humanrights, increased cultural and people-to-people contacts, removal ofbarriers to information flows, and trade facilitation.  Recentliberalizations by the Bulgarian Government have led to improvementin U.S.-Bulgarian relations.Principal U.S. OfficialsAmbassador-Sol PolanskyDeputy Chief of Mission-William D. MontgomeryHead, Political-Economic Section-Douglas Ray SmithPress and Cultural Affairs Officer-John MenziesConsular Officer-Jonathan J. CoyneDefense Attache-Col. John M. Handley USAThe U.S. Embassy in Bulgaria is located at 1 Alexander StamboliiskiBoulevard, Sofia (tel. 88-48-01 through -05).Travel NotesClimate and clothing: Summer temperatures range from 18 C to 30C (65 F-90 F), but humidity is low.  Sweaters are recommended forthe cool evenings. By December, the weather is cold withconsiderable snowfall.Customs: A valid entry visa is required.  Check with the BulgarianEmbassy for specific requirements.Currency: The lev (pl. leva) is the basic unit; the stotinka (pl. stotinki)is the fractional unit. Leva may not be imported, exported, or freelyconverted into Western currencies. Personal importation andexportation of dollars by Americans are unrestricted, and nodeclaration is required.Health: Apart from winter smog, affecting those with respiratory orsinus problems, Sofia causes no special health problems. Tapwaterin the capital is potable. Eating in  larger restaurants is advised.Telecommunications: Local and long-distance telephone andtelegraph services are available. Sofia is seven times zones ahead ofeastern standard time.Transportation: There are no direct flights to Bulgaria  from theUnited States.  Connections may be made in Frankfurt, London, orVienna with foreign airlines that serve Sofia. Rail accommodationsmay be booked from Paris, Frankfurt, or Vienna. Air or rail servicelinks Sofia with the Black Sea resorts near Varna and Burgas.Sofia has streetcars, trolley-buses, and buses. Taxis are available atstands or by telephone. Cars may be rented. An international drivingpermit is required. Main roads are good. Snowtires are advisableduring October-May.Further InformationBell, John. The Bulgarian Communist Party:  From BlagoevtoZhivkov, Stanford:  Hoover Institution Press, l985.Bokov, Georgi, ed. Modern Bulgaria. Sofia: Sofia Press, 1981.Bromke, Adam. The Communist States at the Crossroads. NewYork: Praeger, 1965.Brown, James F. Bulgaria Under Communist Rule. New York:Praeger, 1970.Butler, Thomas, ed. Bulgaria Past and Present. Columbus: AAASS,1976.Chary, Frederick B. The Bulgarian Jews and the Final Solution,1940-44. Pittsburgh: University of Pittsburgh Press, 1972.Constant, Stephen. Foxy Ferdinand, Tsar of Bulgaria. London:Sidgwick & Jackson, Ltd., 1979.Evans, Stanley G. A Short History of Bulgaria. London: Lawrence &Wishhart, 1960.Gianaris, Nicholas V. The Economics of the Balkan Countries:Albania, Bulgaria, Greece, Romania, Turkey, and Yugoslavia. NewYork: Praeger, 1982Hosch, Edgar. The Balkans: A Short History from Greek Times to thePresent Day. London: Faber & Faber, 1972.Land, David M. The Bulgarians. Thames & Hudson, 1976.Lendvai, Paul. Eagles in Cobwebs: Nationalism and Communism inthe Balkans. Garden City: Doubleday, 1969.MacDermott, Mercia. A History of Bulgaria, 1393-1885. New York:Praeger, 1962.Markov, Georgi.  The Truth that Killed.  London: Weidenfeld andNicholson, 1983.Newman, Bernard. Bulgarian Background. London: R. Hale, 1961.Oren, Nissan. Revolution Administered: Agrarianism and Communismin Bulgaria. Baltimore: John Hopkins Press,  1973.Osborne, R.H. East Central Europe: An Introductory Geography.New York: Praeger, 1967.Popov, Kostadin. Cultural Policy in Bulgaria. Paris: UNESCO Press,1981.Rothschild, Joseph. The Communist Party of Bulgaria, 1833-936.New York: Columbia University Press, 1960.Seton-Watson, Hugh. The East European Revolution. New York:1951.Starr, Richard F. The Communist Regimes in Eastern Europe AnIntroduction. Stanford University Press, 1967.Sugar, Peter F. and Ivo J. Lederer, eds. Nationalism in EasternEurope. Seattle: University of Washington Press, 1969.Vazov, Ivan. Under the Yoke. New York: Twayne Publishers, Inc.,1971.Zhivkov, Todor. Statesman and Builder of New Bulgaria. Oxford andNew York: Pergamon, 1982.Available from the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C. 20402:American University. Area Handbook for Bulgaria. 1974.Published by the United States Department of State --Bureau ofPublic Affairs--Office of Public Communication --Editorial Division--Washington, D.C.-- October 1989--Editor:  Juanita AdamsDepartment of State Publication 8874--Background Notes Series--This material is in the Public domain and may  be reprinted withoutpermission; citation of this source is appreciated.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C.  20402.(Released:  January 1990)</text>
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        <text>US DEPARTMENT OF STATEBACKGROUND NOTES:  BULGARIAOfficial Name:People's Republic of BulgariaPROFILEGeographyArea: 110,987 sq. km. (44,365 sq. mi.); about the size of Ohio. Cities:Capital-Sofia (pop. 1,114,759). Other cities-Plovdiv (377,637), Varna(297,090), Burgas (188,367), and Ruse (185,425). Terrain: Aboutthree-fourths mountainous and one-fourth plains. Climate: Temperatecontinental similar to U.S. Midwest (dry, hot summers and damp,cold winters) but with strong regional variations.PeopleNationality: Noun and adjective-Bulgarian(s). Population (Dec. 1985):8,942,976. Annual growth rate: 2.3/1,000.  Birth rate: 13.6/1,000.Density: 80.9/sq. km. (209/sq. mi.). Ethnic groups: Bulgarian 85.3%,Turk 8.5%, others  (Gypsies, Greeks, Armenians, Jews, andRussians)-6.2%.  Language: Bulgarian. Religions: BulgarianOrthodox, Islam, Roman Catholic, Protestant, and Judaism.Education: Years compulsory-8. Attendance-1.6 million.  Literacy(est.)-98% .  Health: Infant mortality rate-16.1/1,000.  Lifeexpectancy-Men 69 yrs., women 74 yrs.  Work force (4,092,832):Agriculture-22%. Industry and commerce-43%.  Construction-8.3%.Transport-5.9%.  Government-1.3%.  Other-19.5%.GovernmentType: In transition. Constitution: May 1971.Branches: Executive-chief of state (Chairman of State Council), headof government (Chairman of Council of Ministers).Legislative-unicameral National Assembly, State Council: chairman,1 first deputy chairman, 5 deputy chairmen, 1 secretary, and 21members.  Judicial- Supreme Court, 28 provincial (okrug and SofiaCity) courts, 103 local courts.Political parties: Bulgarian Communist Party, Bulgarian NationalAgrarian Union, other political parties in formation. Suffrage:Universal over 18.Administrative subdivisions: 9 oblasts (districts).Defense (est.): 6% of government budget.National holiday: September 9.Flag: White, green, and red horizontal stripes from top to bottom witha lion framed by wheat stalks on the upper left hand corner of thewhite stripe.EconomyNational income (1988): $67.6 billion. Annual growth rate (1988):1.8%.  Per capita income (1988): $7,540.Natural resources:  Copper, lead, zinc, coal, lignite, iron, manganese,limestone, and lumber.Agriculture: Products-Grain, tobacco, fruits, wine, vegetables, sheep,hogs, poultry, cheese, sunflower seeds.Industry: Types-processed agricultural products, machinery,chemicals, metallurgical products.Trade (1987): Exports-$16.8 billion; U.S. share, $40.3 million.Imports-$16.9 billion; U.S. share, $88.3 million. Major tradepartners-U.S.S.R. 61%, other CEMA countries 21.5%, developingcountries 10.7%.Official exchange rate (April 1989): .41 leva=U.S.$1.Membership in  International OrganizationsUN and many of its specialized agencies, Council for MutualEconomic Assistance (CEMA), Warsaw Pact.GEOGRAPHYLocated on the Balkan Peninsula, Bulgaria extends from the westernshore of the Black Sea to Yugoslavia in the west. In the north, theDanube River forms the greater part of Bulgaria's common boundarywith Romania.  Greece and European Turkey lie to the south andsoutheast of Bulgaria.The country is divided roughly into three parallel east-west zones:the Danubian tableland in the north, the Stara Planina (or Balkan)Mountains in the center, and the Thracian Plain and the Rhodopeand Pirin Mountains in the south and southwest.  About one-third ofthe country lies at an altitude of 500 meters (1,640 ft.) above sealevel.  The average elevation is 480 meters (1,575 ft.) above sealevel.On the fringe of the humid continental climate zone, Bulgaria has aclimate similar to the U.S. Midwest.  The weather varies considerablyfrom year to year, as do the several climatic subzones within thecountry.  Summer temperatures average about 24 C (75 F); wintertemperatures average around 0 C (32 F).  Annual precipitationaverages 63 centimeters (25 in.).PEOPLEPartly due to its mountainous terrain, Bulgaria's population densityis one of the lowest in Eastern Europe, about 81 persons per squarekilometer (207/sq. mi.).  About two-thirds of the people live in urbanareas, compared to one-third in 1956. Sofia, the capital, is the largestcity. Other major cities are Plovdiv-site of a major annual internationaltrade fair, the Black Sea cities of Varna and Burgas, and Ruse on theDanube River.The principal religious organization is the Bulgarian OrthodoxChurch, to which most Bulgarians belong. Other religions includeIslam, Roman Catholicism, Protestantism, and Judaism. Before 1989,religious activity was discouraged by the Bulgarian Communist Party,but its new leadership has pledged to support the rights of allcitizens to worship freely.Bulgarian is the primary language spoken in the country, althoughsome secondary languages closely correspond to ethnic divisions.The most important of these is Turkish, which is widely spoken bythe Turkish minority.  From 1984-89, the government, in effect,banned the use of the Turkish language in public.  The newleadership has repudiated that policy.  Russian, which shares theCyrillic alphabet and many words with Bulgarian, is widelyunderstood.Education is free and compulsory to age 15.  Scientific, technical,and vocational training is stressed.HISTORYBulgaria's name is derived from a Turkic people, the Bulgars, whooriginated in the steppe north of the Caspian Sea. In the latter partof the seventh century, one branch of the Bulgars moved up theVolga River, establishing the Kingdom of the Volga Bulgars; the otherbranch moved westward along the Black Sea settling near the mouthof the Danube. Although the name Bulgaria is not of Slavic origin, theSlavic people, who had entered the Balkan Peninsula earlier,absorbed the invading Turkic people and were, in large measure, theprecursors of the present-day Bulgarians.Bulgarian kingdoms continued to exist in the Balkan Peninsula duringthe Middle Ages, following which the Ottoman Turks ruled Bulgariafor 500 years, until 1878. In that year, a Bulgarian principality wasestablished between the Danube River and the Balkan Mountainswhen Russia and Romania assisted the Bulgarians in defeating theOttomans. In 1885, the union of the Principality of Bulgaria withEastern Rumelia south of the Balkan Mountains created anautonomous Bulgarian state with roughly the same borders as thoseof present-day Bulgaria.A fully independent Bulgarian kingdom, proclaimed September 22,1908,  participated in an anti-Ottoman coalition that defeated theOttoman Empire in the First Balkan War (1912).  The coalition soondissolved over territorial disputes, however, and Bulgaria was isolatedand defeated quickly in the Second Balkan War (1913) by Greece,Serbia, Montenegro, Romania, and Turkey. It later allied itself withGermany in World Wars I and II and suffered defeats twice more.Bulgaria's involvement in these wars was partly due to its ambitionsfor an outlet to the Aegean Sea and its desire to annex Macedonianand Thracian territory held by Greece, Yugoslavia, and Turkey.Although Bulgaria declared war on the United States and the UnitedKingdom during World War II, it did not declare war on the SovietUnion. In August 1944, Bulgarian emissaries opened talks in Cairowith Allied representatives, seeking to take Bulgaria out of the war.On September 5, 1944, while these talks were still under way, theSoviet Union declared war on Bulgaria.Communist rule in Bulgaria began September 9, 1944, when acommunist-dominated coalition, called the Fatherland Front, seizedpower from the coalition government formed to arrange an armisticewith the Allies. At the same time, Soviet forces were marching intothe country without resistance. Communist power, consolidated inthe next 3 years, led to the adoption on December 4, 1947, of theso-called Dimitrov Constitution, modeled after that of the U.S.S.R.Yugoslavia's expulsion from the Cominform (a Soviet-led internationalsocialist organization) in June 1948 and the subsequentMoscow-dictated persecution of "national communists" throughoutEastern Europe also led to arrests and trials in Bulgaria. In 1949,Traicho Kostov, a Bulgarian communist leader, was executed oncharges of conspiring with theYugoslavs. He had remained in Bulgaria during the war and wassecond in rank only to Georgi Dimitrov, who had spent the war yearsin Moscow. Vulko Chervenkov, Dimitrov's brother-in-law, who alsohad spent the war years in Moscow, emerged as the "Stalin ofBulgaria" after Dimitrov's death in 1949.In 1954, following Stalin's death and separation in the U.S.S.R. of thepositions of party leader and head of government, Chervenkovyielded the position of party chief to Todor Zhivkov. In the next 7years, Zhivkov superseded his one-time mentor, blaming him for the"Stalinist excesses" and "violations of socialist legality" which hadcharacterized the 1948-53 period. Chervenkov was ousted finallyfrom his last leadership position in November 1961, and shortlythereafter Zhivkov took on the additional post of premier, thusrecombining the positions of party leader and head of government.In 1971, he gave up the premiership and took on the newly createdand more prestigious position of Chairman of the State Council (chiefof state).  He held this position and that of Bulgarian CommunistParty (BCP) Secretary General until November 1989.Petur Mladenov, who led the Politburo in its effort to oust Zhivkov,now also holds both these positions, despite his declarationsfavoring separation of party and State powers.  Mladenov is leadingthe BCP in its efforts to maintain a credible claim to politicalleadership in the country, despite a high level of opposition to theCommunist Party which is now appearing.  Elections, promised forMay 1990, will indicate how successful Mladenov has been in thateffort.GOVERNMENTThe paragraphs in Article One of the Bulgarian Constitution thatguaranteed the "leading role in society" of the BCP were removed bythe National Assembly on January 16, 1990.  Further changes in theconstitution are under consideration, and more, significant changesin the political structure of the country may follow.  As currentlywritten, the constitution provides for a unicameral 400-memberNational Assembly, described as "the supreme organ of statepower."  Each deputy in this body represents a particular district and,in the past, ran for election for a 5-year term on a single FatherlandFront list.  The government has pledged that the assembly electionscalled for May 1990 will permit competition by multiple candidatesrepresenting different parties.  The National Assembly is required tomeet three times a year.  Formerly, its sessions were typically proforma affairs, but since November it has  convened more frequentlyand has shown signs of independence.      The executive branch is the Council of Ministers (cabinet), thechairman of which-the prime minister-is head of government.  Thenumber of Cabinet-rank officials has varied over the years butgenerally is about 30. The Supreme Court is the highest judicialbody.  It is responsible for and reports on its activity to the NationalAssembly and, between assembly sessions, to the State Council.Judges are elected for a 5-year period.  The Bulgarian judicialsystem also has a chief prosecutor, elected for a 5-year term, whois constitutionally charged with seeing that laws are obeyed,particularly those concerning Bulgarian national and  economicinterests, independence, and sovereignty.Bulgaria has a three-tiered system of government. Below the centralgovernment are 27 provinces (okrugs) and one city, Sofia, whichalso has the status of a province. Subordinate to the 27 provincesare more than 1,100 urban and rural communities (obshtina),constituting the third level of government. The provinces andcommunities are governed by elected People's Councils andparty-appointed executive officials.Principal Government OfficialsChairman, Council of State; General Secretary of the BulgarianCommunist Party-Petur MladenovChairman, Council of Ministers-Georgi Atanasov (premier or primeminister)Chairman, National Assembly-Stanko TodorovMinister of Foreign Affairs-Boyko DimitrovPolitburo (Full Members)Petur MladenovGeorgi AtanasovAndrei LukanovAleksandur LilovBelcho BelchevDobri DzhurovPandeley PachovMincho YovchevPolitburo (Candidate Members)Petko DanevIvan StanevDimitar StanishevIvan IvanovAmbassador to the United States-Velichko VelichkovAmbassador to the United Nations-Aleksander K. StrezovBulgaria maintains an embassy in the United States at 1621-22dStreet NW., Washington, D.C. 20008 (tel. [phone]).POLITICAL CONDITIONSThe removal of long-time Bulgarian leader Todor Zhivkov fromgovernment and party positions on November 11, 1989, began aperiod of significant change in Bulgarian political life. Until this time,the BCP, with about 984,000 members, controlled all phases ofBulgarian life.  The Bulgarian constitution guaranteed it a role as theleading force in society. Petur Mladenov, former Foreign Minister,took over from Zhivkov as Head of State and Secretary General ofthe BCP.  In the period that followed, six of the nine full Politburomembers were dismissed, as were three of the six candidatemembers.  In most cases, these were individuals closely associatedwith former leader Zhivkov or with his most unpopular policies.There also were changes in the Central Committee (CC)membership, which were widely viewed as an effort to bring moreliberal and reform-minded party members into responsible positions.Most important, however, the CC of the BCP voted in December1989 to relinquish its monopoly on power.  On January 16, 1990, theNational Assembly formally removed the clauses guaranteeing theBCP's preeminence from the constitution.      The other political party that functioned in Bulgaria duringcommunist rule is the Bulgarian National Agrarian Union (BANU). Acoalition partner of the BCP, it could not have an independentprogram.  Its leadership also changed in November 1989, and someof its members have begun to take the initiative, in the NationalAssembly and elsewhere, to assume a more independent position.      Other political parties have begun to form since Zhivkov'sdismissal.  A new law on associations is expected to be consideredby the National Assembly early in 1990; this would set the guidelinesfor the functioning of other political parties.  In the meantime,independent parties are forming without benefit of legal guidelinesand have apparently been permitted to function without governmentinterference.  A Social Democratic Party has been formed, as has aGreen Party, among others.      The government has promised "free, democratic" elections forthe National Assembly before the end of May 1990.  Some of theopposition members have called for elections in May for part of theassembly seats, followed later in the year by further elections; this isin order to give the newly formed opposition parties more time toorganize.  The current National Assembly, generally considered to bea "rubber stamp" Parliament, has begun to take some tentative stepstoward independence.      The Bulgarian media, although still state-owned and controlled,has made some effort at keeping pace with the political changesunderway, and has reported accurately and objectively on oppositionpositions in many cases, although not in every instance. Afterdecades in which Bulgarian political development was marked bystability and lack of dissent, it has now entered a period in whichmany voices are being heard.  It has taken some important initialsteps toward greater freedom and respect for human rights, but itfaces a difficult task in achieving true democracy.ECONOMYAt the end of World War II, Bulgaria was among the leastindustrialized European countries.  In 1948, 18% of the work forcewas employed outside the agricultural sector.  Since then, however,the government has pursued a policy of rapid industrialization so thattoday about 80% of the work force is employed in sectors other thanagriculture.The national income grew rapidly in the 1960s and early 1970s,averaging more than 6% annually during the 1960s and reaching 9%in 1975.  Economic growth has slowed markedly since the late 1970sand has averaged only 1%-3% annually in recent years.  Bulgaria'sgross national product (GNP) was $67.6 billion in 1988, or $7,540 percapita.  The national currency, the lev, is not a convertible currencyand has been tied to the Soviet ruble.  The official lev-dollarexchange rate is, therefore, not necessarily an accurate index of thetrue value of the lev (BL).A major factor in Bulgaria's postwar growth rate was Sovietassistance, the dollar value of which cannot be accurately estimated.The assistance included raw materials at favorable prices, technicalassistance, and substantial credits, partly in hard (convertible)currency.  In contrast to some more developed East Europeancountries, which have suffered economically from their dependenceon the Soviet Union, Bulgaria's ties with the Soviet Union havebrought economic benefits during most of the post-World War IIperiod.  However, during the 1980s, reduced deliveries of Soviet rawmaterials and fuels, coupled with higher prices, have reduced thesebenefits to Bulgaria.Economic Reform and PlansBulgaria's command economic system has been patterned on theSoviet model.  For several years in the mid-1960s, it appeared thatBulgaria had launched a program of economic reform involvingdecentralization of decisionmaking, a greater reliance on marketforces, and even embryonic workers' councils.  In 1968, however,fears aroused by the course of developments in Czechoslovakia andby domestic abuses in the use of decentralized authority promptedthe BCP to reverse the trend toward decentralization.  Since 1971,productive enterprises have been grouped into more than 60 stateeconomic amalgamations responsible for almost all nonagriculturalproduction.  In the agricultural sector, state and collective farmsbegan to be combined in 1970 into "agrarian-industrial complexes"averaging 17,776-26,664 hectares (44,000-66,000 acres).  Since1979, halting attempts have been made to decentralize the economicplanning and decisionmaking process in both the industrial andagricultural sectors.  The most recent reform process, which beganin 1986, is intended to make the economy operate more efficiently,but so far, implementation haS been half-hearted and disappointing.Major features are:--  Decentralized management decisionmaking;--  Financial stimuli to workers;--  Creation of a commercial banking system;--  Greater emphasis on market forces and incentives; and--  More rational pricing policies.Decree 56 of January 1989 provides for the restructuring ofeconomic organizations as companies, with varying forms ofownership and liable to bankruptcy.  Theoretically, companies arefree to engage in foreign trade, ending the state's monopoly.  Thebasic legal code for self-managing entities is not expected to enterinto force until January 1991.  The beginnings of a commercialbanking system may have been established in late 1987 with thecreation of eight new commercial banks.  They are initially functioningonly as investment banks.  Price controls are to be lifted in stagesthrough the end of 1990.  It remains to be seen whether the marketwill play a greater role in the allocation of productive resources, butthe new political leadership has affirmed market-oriented reforms asa high priority and plans to reinvigorate the 1986 reform program,which is expected to extend over a period of 10-15 years.Bulgaria's economic strategy has been set forth in 5-yeardevelopment plans closely patterned after and coordinated with theSoviet Union's 5-year plans.  The current 1986-90 plan sets lowereconomic growth targets but continued strong emphasis on theindustrial sector, particularly electronics, machine-building, andbiotechnology.  The plan calls for approximately BL 54 billion incapital investment, roughly 70% slated for modernizing andreconstructing existing plants and equipment, rather than for newprojects.Industry and AgricultureIndustry has been the motor of Bulgarian economic growth for mostof the past 45 years.  However, by the early 1980s, it was clear thatthe process of extensive industrialization had carried the Bulgarianeconomy about as far as it could.  Bulgaria has, therefore, launchedits current campaign to modernize its aging industrial base, increaseefficiency, and introduce new technology (e.g. robotics).  The largestindustrial sector is "machine building" (heavy industry), whichaccounts for more than one-quarter of industrial production.  Thelargest single industrial plant is the Metallurgical Combine atKremilkovtsi (near Sofia), one of the largest iron and steel mills in theBalkans.Despite its lower priority, agriculture remains a key component of theeconomy.  Although only about 40% of the land is arable, Bulgariahas one of the highest ratios of arable land to population in EasternEurope.  Small private farms exist, mainly in the uplands.  The sizeof the private plots is based on the size of the household: one-halfhectare is the maximum in most places; in mountainous areas, 1hectare.  Climate and soil conditions are suitable for raising livestockand for growing various grain crops, vegetables, fruits, and tobacco.More than one-third of the cultivated land is devoted to growing theprincipal grain crops-wheat, corn, and barley.  Bulgaria is a majortobacco producer-the fourth largest exporter of tobacco and thelargest exporter of cigarettes (mainly to the Soviet Union).EnergyBulgaria's ambitious nuclear energy program is increasing the shareof total electric energy generated by nuclear power-36% in 1988.  Anuclear power plant at Kozloduy was recently completed, andconstruction of a second nuclear power complex has begun atBelene.  In northeastern Bulgaria, deposits of black and coking coalmay contribute to the effort to increase energy self-sufficiency.Estimated deposits are 1.2 billion metric tons, but great physicalobstacles, such as the depth of the deposits (between 1,375 and1,950 meters) and water-bearing rock strata, must be overcome ifthey are to be successfully exploited.TradeForeign trade is important to the Bulgarian economy.  In 1988,exports, which were $17.2 billion, constituted about a quarter ofGNP.  Since 1985, foreign trade has remained relatively stagnant.  Inthe late 1980s, exports and imports have been basically in balance.Bulgarian foreign trade is conducted principally with other communistcountries.  In 1987, 82.5% of Bulgaria's exports and 80.5% of itsimports were with communist partners.  Almost 60% of Bulgaria'strade was with the Soviet Union in 1988.  Bulgaria is a member ofCouncil for Mutual Economic Assistance (CEMA), an economic/tradeorganization of communist countries.The share of Bulgaria's trade with developed Western countries isrelatively modest: 6.8% of exports and 15.1% of imports in 1987.West Germany is the largest exporter to Bulgaria.  Bulgaria's maininterest in trade with the West is to import technology to modernizeits industrial base and to use more efficiently raw materials andenergy.  In many cases, Bulgaria has been able to pay in hardcurrency for its imports from the West.  Bulgaria's net debt to thedeveloped Western countries increased to $7-$7.5 billion by the endof 1989 because of growing purchases of Western goods.Since 1967, Bulgaria has been an observer in the General Agreementon Tariffs and Trade (GATT).  It is presently seeking accession to fullGATT membership on the grounds that it has now reformed itseconomy sufficiently along market lines to be able to accept both thebenefits and obligations of GATT membership.The Bulgarian Government promulgated a joint venture law (Decree535) in March 1980 to attract Western technology and investment.However, most Western businesses have responded cautiouslybecause of the vagueness of many of its provisions.  Decree 535, onpaper one of the most liberal joint venture laws in Eastern Europe,allows the formation of joint enterprises with unlimited foreignparticipation for operations in Bulgaria.FOREIGN RELATIONSThe first and overriding goal of Bulgarian foreign policy has been "tostrengthen and expand the unbreakable alliance, friendship, andall-round cooperation with the U.S.S.R. and the other fraternalsocialist countries." Bulgaria has supported consistently the Sovietposition on all major world issues. Within the Warsaw Pact andCEMA, Bulgaria has been an advocate of greater integration ofmilitary, economic, and political policies under Soviet leadership.Bulgaria participated in the 1968 Warsaw Pact invasion ofCzechoslovakia.Because of its geographic position, Bulgaria devotes particularattention to relations with the other Balkan states. It has achievedsubstantial progress in improving relations with Greece, but itsrelationship with Turkey has suffered because of the government'scampaign of forced cultural assimilation aimed at the Turkish minorityin Bulgaria.  The  end of this policy has led to some improvementsin the relations between the two countries. Relations with Yugoslaviaare troubled periodically by the Macedonian question. Relations withAlbania are not particularly close because of Albanian distrust ofBulgaria's close links to the Soviet Union.More recently, Bulgaria also has been more active in its relations withWest European countries and with certain developing countries,particularly in the Middle East and Africa. Bulgaria has been amember of the United Nations since 1955 and participates in someof its specialized agencies.</text>
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        <text>U.S. Department of State Background Notes:  Brunei, November 1995 Bureau of Public Affairs  November 1995 Official Name:  Brunei Darussalam  PROFILE  Geography  Area: 5,769 sq. km. (2,227 sq. mi.), slightly larger than Delaware. Cities: Capital--Bandar Seri Begawan. Terrain: East--flat coastal plains with beaches; west--hilly with a few mountain ridges. Climate: Equatorial; high temperatures, humidity, and rainfall.  People  Nationality: Noun and adjective--Bruneian(s). Population (1994): 285,000. Annual growth rate (1994): 2.7%. Ethnic groups: Malay, Chinese, other indigenous. Religion: Islam. Languages: Malay, English, Chinese; Iban and other indigenous dialects. Education: Years compulsory--nine. Literacy--77%. Health: Life expectancy--71 years. Infant mortality rate--25/1,000.  Government  Type: Sultanate. Independence: January 1, 1984. Constitution: 1959. Branches: Executive--Sultan is both head of state and prime minister, presiding over an 11-member cabinet. Judicial--(based on Indian penal code and English common law) magistrate's courts, High Court, Court of Appeals, Judicial Committee of the Privy Council (sits in London). Subdivisions: Four districts--Brunei-Muara, Belait, Tutong, and Temburong.  Economy  GDP (1993): $4.4 billion. Natural resources: Oil and natural gas. Trade: Exports--oil, liquefied natural gas, petroleum products, garments. Major markets--Japan, U.S. Imports--machinery and transport equipment, manufactured goods. Major suppliers--Singapore, U.K.  U.S.-BRUNEI RELATIONS  Relations between the United States and Brunei date from the last century. On April 6, 1845, the U.S.S. Constitution visited Brunei; the two countries concluded a Treaty of Peace, Friendship, Commerce and Navigation in 1850, which remains in force today. The United States maintained a consulate in Brunei from 1865 to 1867.  The U.S. welcomed Brunei Darussalam's receipt of full independence from the United Kingdom on January 1, 1984, and opened an embassy in Bandar Seri Begawan on that date. Brunei opened its embassy in Washington in March 1984. Brunei's armed forces engage in joint exercises, training programs, and other military cooperation with the U.S. A memorandum of understanding on defense cooperation was signed on November 29, 1994.  Principal U.S. Embassy Officials  Ambassador--Theresa A. Tull Economic/Political/Commercial Officer--vacant Administrative/Consular Officer--Naomi Edwards  The U.S. embassy in Bandar Seri Begawan is located on the third floor of Teck Guan Plaza, at the corner of Jalan Sultan and Jalan MacArthur; tel. [phone], 220384, 229785, 229786, 241645, or 235254; fax [phone].  GOVERNMENT AND POLITICAL CONDITIONS  Under Brunei's 1959 constitution, the sultan is the head of state with full executive authority, including emergency powers since 1962. The sultan is assisted and advised by five councils, which he appoints.  An 11-member Council of Ministers, or cabinet, assists in the administration of the government. The sultan presides over the cabinet as prime minister and also holds the position of minister of defense. Two of the sultan's brothers serve as ministers of foreign affairs and finance.  Brunei's legal system is based on English common law, with an independent judiciary, a body of written common law judgments and statutes, and legislation enacted by the sultan. Most cases are tried by the local magistrate's courts. More serious cases go before the High Court, which sits for about two weeks every few months. Brunei has an arrangement with the Government of Hong Kong whereby Hong Kong judges are appointed as the judges for Brunei's High Court and Court of Appeal. Final appeal can be made to the Judicial Committee of the Privy Council in London in civil but not criminal cases.  The Government of Brunei assures continuing public support for the current form of government by providing economic benefits such as subsidized food, fuel and housing, free education and medical care, and low-interest loans for government employees. The Sultan said in a 1989 interview that he intends to proceed, with prudence, to establish more liberal institutions in the country and that he will reintroduce elections and a legislature when he "can see evidence of a genuine interest in politics on the part of a responsible majority of Bruneians." In 1994, a constitutional review committee submitted its findings to the Sultan, but these have not been made public.  A tiny country with enormous oil and gas reserves--the economy is almost totally supported by exports of crude oil and natural gas--Brunei's financial reserves are reportedly more than $30 billion. The country's wealth, coupled with its membership in the Association of Southeast Asian Nations, give it influence in the world disproportionate to its size.  Principal Government Officials  Sultan and Yang di-Pertuan, Prime Minister, and Minister of Defense--His Majesty Sultan Hassanal Bolkiah Minister of Foreign Affairs--His Royal Highness Prince Mohamed Bolkiah Ambassador to the United States--Jaya bin Abdul Latif Ambassador to the UN--Pengiran Haji-Abdul Momin   Brunei Darussalam maintains an embassy in the United States at 2600 Virginia Ave., NW, Washington, DC 20037; tel. [phone].  TRAVEL AND BUSINESS INFORMATION  The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the Department of State recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. They can be obtained by telephone at [phone] or by fax at [phone]. To access the Consular Affairs Bulletin Board by computer, dial [phone], via a modem with standard settings. Bureau of Consular Affairs' publications on obtaining passports and planning a safe trip abroad are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Emergency information concerning  Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at [phone].  While planning a trip, travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at [phone] provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. [phone].  Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).  Upon their arrival in a country, U.S. citizens are encouraged to register with the U.S. embassy (see "Principal U.S. Embassy Officials" listing in this publication). Such information might assist family members in making contact en route in case of an emergency.  Further Electronic Information:  Consular Affairs Bulletin Board (CABB). Available by modem, the CABB provides Consular Information Sheets, Travel Warnings, and helpful information for travelers. Access at [phone] is free of charge to anyone with a personal computer, modem, telecommunications software, and telephone line.  Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official weekly magazine of U.S. foreign policy; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN is accessible three ways on the Internet:  Gopher:  dosfan.lib.uic.edu URL:  gopher://dosfan.lib.uic.edu/ WWW:  http://dosfan.lib.uic.edu/dosfan.html  U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Priced at $80 ($100 foreign), one-year subscriptions include four discs (MSDOS and Macintosh compatible) and are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call [phone] or fax [phone].  Federal Bulletin Board (BBS). A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial [phone]. For general BBS information, call [phone].  National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at [phone] for more information.  ============================== Background Notes Series -- Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC  This material is in the public domain and may be reproduced without permission; citation of this source is appreciated. (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  BRAZILPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Federative Republic of BrazilPROFILEGeographyArea:  8,511,965 sq. km. (3,290,000 sq. mi.).  Cities:  Capital--Brasilia (pop. 1.8 million).  Other cities:  Sao Paulo (11 million), Rio de Janeiro (6 million), Belo Horizonte (2.3 million), Salvador (2 million), Fortaleza (1.8 million), Recife (1.4 million), Porto Alegre (1.4 million), Curitiba (1.4 million).  Terrain:  Dense forests in northern regions, incl.  Amazon Basin; semiarid along northeast coast; mountains, hills, and rolling plains in the southwest (incl. Mato Grosso); and coastal strip.  Climate:  Mostly tropical or semitropical with temperate zone in the south.PeopleNationality:  Noun and adjective--Brazilian(s). Population:  155 million. Annual growth rate:  2.1%. Ethnic groups:  Portuguese, Italian, German, Japanese, African, Indians (principally Tupi and Guarani linguistic stock). Religion:  Roman Catholic (80%). Education:  Literacy--81% of adult population. Health:  Infant mortality rate--58/1,000. Life expectancy--66 yrs.  Work force (65 million):  Services--40%.  Agriculture--35%.  Industry--25%.  GovernmentType: Federative Republic.  Independence:  September 7, 1822. Constitution: Promulgated October 5, 1988. Branches:  Executive--president (chief of state and head of government) popularly elected to a single 5-year term.  Legislative--Senate (81 members popularly elected to 8-year terms), Chamber of Deputies (503 members popularly elected to 4-year terms).  Judicial--Supreme Federal Tribunal.Political parties:  Brazilian Democratic Movement Party (PMDB), National Reconstruction Party (PRN), Liberal Front Party (PFL), Democratic Social Party (PDS), Democratic Workers Party (PDT), Workers Party (PT), Brazilian Labor Party (PTB), Liberal Party (PL), Brazilian Socialist Party (PSB), Communist Party of Brazil (PC do B), Progressive Renewal Party (PPR), Progressive Party (PP), Popular Socialist Party (PPS), Progressive Renewal Party PRP, Progressive Party (PP), Popular Socialist Party (PPS).  Suffrage:  Compulsory from 18-70. Subdivisions:  26 states, Federal District of Brasilia.Economy (1993)GDP:  $456 billion.  Annual real growth rate:  5%. Per capita GDP:  $3,000. Natural resources:  Iron ore, manganese, bauxite, nickel, uranium, gemstones, oil. Agriculture (11% of GDP):  Products--coffee, soybeans, sugarcane, cocoa, rice, beef, corn, oranges, cotton, wheat.  Industry:  Types--steel, chemicals, petrochemicals, machinery, motor vehicles, consumer durables, cement, lumber, shipbuilding. Trade:  Exports--$38.7 billion.  Major markets--U.S. 21%, Argentina 9%, Japan 6%, Netherlands 6%, Germany 5%, France 4%, Italy 4%.  Imports--$25.7 billion.  Major suppliers--U.S. 24%, Argentina 9%, Germany 9%, Japan 8%, France 4%. Official exchange rate:  0.92 Reals=U.S.$1 (Rate stable). PEOPLE AND HISTORYWith an estimated population of nearly 155 million, Brazil is the most populous country in Latin America and ranks sixth in the world.  Most of the people live in the south-central area, which includes the industrial cities of Sao Paulo, Rio de Janeiro, and Belo Horizonte.  Urban growth has been rapid; by 1991 the urban sector represented 75% of the total population.  Increased urbanization has aided economic development but has also created serious social and political problems for major cities.Four major groups make up the Brazilian population:  the Portuguese, who began colonizing in the 16th century; indigenous Indians of Tupi and Guarani language stock; Africans brought to Brazil as slaves; and various Europeans and Asian immigrant groups that have settled in Brazil since the mid-19th century.  The Portuguese often intermarried with the Indians; marriage with slaves was common.  Although the major European ethnic stock of Brazil was once Portuguese, subsequent waves of immigration have contributed to a rich ethnic and cultural heritage.From 1875 until 1960, about 5 million Europeans emigrated to Brazil, settling mainly in the four southern states of Sao Paulo, Parana, Santa Catarina, and Rio Grande do Sul.  Immigrants have also come from Italy, Germany, Spain, Japan, Poland, and the Middle East.  The largest Japanese community outside Japan is in Sao Paulo.  Despite class distinctions, national identity is strong, and racial friction is a relatively new phenomenon.Indigenous full-blooded Indians, located mainly in the northern and western border regions and in the upper Amazon Basin, constitute less than 1% of the population.  Their numbers are declining as contact with the outside world and commercial expansion into the interior increase.  Brazilian Government programs to establish reservations for them and to provide other forms of assistance have existed for years but are controversial and often ineffective.Brazil is the only Portuguese-speaking nation in the Americas.  About 80% belong to the Roman Catholic Church, although many Brazilians adhere to Protestantism and spiritualism.    Some recent archeological research suggests that Brazil may have been inhabited for 30,000 to 40,000 years, but most archeologists agree on dates between 10,000 and 20,000 years.  In addition, speculation continues that the Brazilian coast may have been visited by 15th century Portuguese explorers who ranged widely in the South Atlantic, while trading with Africa and settling the Azores and Madeira Islands.Brazil was formally claimed in 1500 by the Portuguese navigator Pedro Alvares Cabral.  It was ruled from Lisbon as a colony until 1808, when the Portuguese royal family, having fled from Napoleon's army, established the seat of government in Rio de Janeiro.  Brazil became a kingdom under Dom Joao VI, who returned to Portugal in 1821, leaving his son, the prince Dom Pedro, as regent.  The prince successfully declared Brazil's independence on September 7, 1822, and became emperor with the title of Dom Pedro I.  His son, Dom Pedro II, ruled from 1831 to 1889, when a federal republic was established in a coup by Deodoro da Fonseca, marchal of the army.  Slavery had been abolished a year earlier by the acting Regent Princess Isabel while Dom Pedro II was in Europe.From 1889 to 1930, the government was a constitutional democracy, the presidency alternating between the dominant states of Sao Paulo and Minas Gerais.  This period ended with a military coup that placed Getulio Vargas, a civilian, in the presidency; Vargas remained as dictator until 1945.  From 1945 to 1961, Eurico Dutra, Vargas, Juscelino Kubitschek, and Janio Quadros were elected presidents.  When Quadros resigned in 1961, he was succeeded by Vice President Joao Goulart.Goulart's years in office were marked by high inflation, economic stagnation, and the increasing influence of radical political elements.  The armed forces, alarmed by these developments, staged a coup on March 31, 1964.  The coup leaders chose as president Humberto Castello Branco, followed by Arthur da Costa e Silva (1967-69), Emilio Garrastazu Medici (1969-74), and Ernesto Geisel (1974-79) all of whom were senior army officers. Geisel began a liberalization which was carried further by his successor, Gen. Jose Baptista de Oliveira Figueiredo (1979-85).  Figueiredo not only permitted the return of politicians exiled or banned from political activity during the 1960s and 1970s but also allowed them to run for state and federal offices in 1982.An electoral college, however, consisting of all members of congress and six delegates chosen from each state, continued to choose the president.  In January 1985, the electoral college voted Tancredo Neves from the opposition Brazilian Democratic Movement Party (PMDB) into office as President.  However, Tancredo Neves became ill in March and died a month later.  His Vice President, former Senator Jose Sarney, became President upon Neves' death.Brazil completed its transition to a popularly elected government in 1989, when Fernando Collor de Mello won 53% of the vote in the first direct presidential election in 29 years.  In 1992 a major corruption scandal led to the impeachment and ultimate resignation of President Collor de Mello.  Consistent with the Brazilian constitution, Vice President Itamar Franco took office and will govern for the remainder of his term in office culminating in the 1994 presidential elections.GOVERNMENT AND POLITICAL CONDITIONSBrazil is a federative republic with broad powers granted to the federal government.  A constituent assembly drafted a new constitution in late 1988.  At the national level, the constitution establishes a presidential system with three branches--executive, legislative, and judicial.The president is assisted by a vice president (elected with the president), a presidentially appointed cabinet, and specialized administrative and advisory bodies.  In national elections held October 3, 1994, Fernando Henrique Cardoso was elected President with 54% of the vote.  He will take office January 1, 1995.The bicameral National Congress consists of 81 Senators (three for each state and the federal district) elected to eight-year terms, and 503 deputies elected at large in each state to four-year terms.  The elections are based on proportional representation weighted in favor of less populous states.  The apex of the judicial system is the Supreme Federal Tribunal, whose 11 justices, including the chief justice, are appointed by the president to serve until age 70.Brazil is divided administratively into 27 states and a federal district, Brasilia.  The framework of state and local governments closely parallels that of the federal government.  Governors are elected for four-year terms.  A federal revenue sharing system, in place since the 1988 constitution, provides states with considerable resources.The federal district, which moved from Rio de Janeiro to Brasilia in April 1960, is governed by a governor and a vice governor, both of whom will be chosen in direct elections.Brazil's major parties are:  Brazilian Democratic Movement Party (PMDB): Brazil's largest party, a loosely-knit coalition of politicians from across the political spectrum.  It elected federal deputies in all 27 states and the federal district in 1990.Liberal Front Party (PFL):  the country's second largest party and the largest on the center-right.  The PFL is strongest in small and medium-sized towns, particularly in the impoverished northeast and Amazon regions.  The PFL was founded in 1985 by dissidents of the military-created Democratic Social Party.Brazilian Social Democracy Party (PSDB):  formed in 1988 by dissidents of the PMDB, the PSDB espouses a center-left social democratic agenda.  PSDB leaders, including Fernando Henrique Cardoso, support a free market economy with greater government involvement in such social areas as health care and education.  Workers' Party (PT):  formed in 1979, the PT is Brazil's European-style leftist party, with a clearly defined ideology, strict party discipline, hierarchical structure, and extensive grassroots organization.  It is strongest among intellectuals, organized labor, and the economically disadvantaged.  It draws considerable support from the liberation-theology wing of the Catholic Church and from the 4-million-member labor confederation, the Sole Workers Central.  The PT is headed by party founder Luis Ignacio Lula da Silva, a presidential candidate in 1989 and 1994.Progressive Renewal Party (PPR):  formed in 1993, the PPR represents a merger between Paulo Maluf's former Democratic Social Party and the Christian Democratic Party.  The party is based primarily in the more industrialized south and southeast and includes many former supporters of Brazil's military government.  The PPR is a center-right party that generally supports free market reforms.Progressive Party (PP):  founded in 1993 as a merger of the Renovating Workers' Party and the Social Workers' Party, two splinter center-right parties formed in 1990 to support the gubernatorial campaigns of several local politicians.  The PP claims to support market-oriented policies and is strong in a handful of states, such as Parana, and in the federal district.Democratic Workers Party (PDT):  a populist party founded by Leonel Brizola in 1980.  The PDT is strongest in Rio de Janeiro and Rio Grande do Sul, states where Brizola served as governor.  Much of its support come from urban and rural poor.   PDT members usually stress a greater role for the government in tackling Brazil's pressing social problems.Brazilian Labor Party (PTB):  founded in 1945, a populist party that no longer has a major national leader or following.  Its appeal is limited to several western states, such as Mato Grosso do Sul and Roraima.Liberal Party (PL):  a center-right party popular among small businessmen at the state and local level in Sao Paulo and Rio de Janeiro.  The party advocates a mini-mum role for the state in economic affairs and is a staunch proponent of a flat tax on businesses and individuals.National Reconstruction Party (PRN): formed in 1988 and Collor's personal vehicle for his 1989 presidential bid.  Following Collor's impeachment in late 1992, PRN membership in congress dropped considerably.Popular Socialist Party (PPS):  the former Brazilian Communist Party, renamed in 1992 in the wake of the collapse of the Soviet Union.  The PPS espouses Marxist doctrine but frequently cooperates with other center-left parties.Communist Party of Brazil (PC do B):  avoided modifying its Soviet-style platform since the end of the Cold War.  It has participated, though minimally, in the 1989 and 1994 electoral coalitions formed to support the PT presidential candidate.Brazilian Socialist Party (PSB):  founded in 1946, the PSB, a leftist party with one senator and 11 deputies.Brazil also has several dozen smaller parties, some of which (e.g. National Mobilization Party--PMN, and the Social Christian Party--PSC) command a following in a handful of states.Principal Government OfficialsPresident--Itamar FrancoVice President--VacantForeign Affairs--Celso Amorim Ambassador to the U.S.--Paulo Tarso Flecha de LimaAmbassador to the UN--Ronaldo SardenbergAmbassador to the OAS--Luis Agosto de Araujo CastroBrazil maintains an embassy in the United States at 3006 Massachusetts Avenue NW, Washington, DC 20008  (tel. [phone]).  Brazil maintains consulates general in New Orleans, New York, Chicago, and Los Angeles, and consulates in Miami, Houston, Dallas, San Francisco, and Atlanta.ECONOMYBrazil is a country rich in resources and natural advantages, but  its economic performance has lagged behind its potential.  Economically, it is a country of contrasts ranging from sophisticated economic centers around Sao Paulo to relatively undeveloped trading outposts in the northern region.  Industrial development has been concentrated in the southeastern states of Rio de Janeiro, Sao Paulo, Parana, and Rio Grande do Sul but is now expanding to include the northeast and center west.In 1993, Brazil's gross domestic product (GDP) totaled $456 billion, with an estimated per capita GDP of  $3,000.  In 1993, economic growth was 5%; growth for 1994 is estimated to reach 3%.Agriculture, Industry, and Natural ResourcesAbout one-half of Brazil is covered by forests.  The largest rainforest in the world is located in the Amazon Basin and is so impressive in character and extent that the entire Amazon region is identified with it.  Recent migrations into the Amazon and controversial large-scale burning of forests areas placed the international spotlight on Brazil.  The government has subsequently reduced incentives for such activity and has begun to implement an ambitious environmental plan.Eastern Brazil has tropical and semideciduous forests and soil of limited agricultural value; the nutrients in the small amount of humus usually are exhausted after only a few years of farming.  The softwood forests of the southern highlands still provide a substantial portion of the construction timber used in Brazil.  However, fears that these forests are being cut down so fast that they are in danger of extinction within the next few decades have led the industry to move north.  Major timber supplies for domestic and export markets now come from the tropical hardwoods of the Amazon.  The thorn forests of the northeast interior contain dry, cactus-infested, drought-resistant vegetation, its sparseness due as much to overgrazing and overcultivation as to the unreliability of rainfall.In Central Brazil, the states of Mato Grosso, Mato Grosso do Sul, Goias, and parts of Minas Gerais and Sao Paulo contain substantial areas of grassland, with only scattered trees.  Unlike the plains of North America, the Brazilian grasslands are less fertile, and large areas of these grasslands are best suited to pastures.The agricultural sector employs 35% of Brazil's population and accounts for about 11% of its GDP and almost 40% of the country's exports.  Except for wheat, Brazil is largely self-sufficient in food.  It is the world's leading exporter of coffee, orange juice concentrate, and tobacco, and is the second largest exporter of sugar and soybeans.  During the past decade, in an effort to expand its agricultural exports, Brazil began opening new regions to cultivation.  The most important of these are devoted to soybean production in Mato Grosso and Bahia, and, more recently, Minas Gerais and Goias.  Brazil also has expanded cultivation of sugarcane, the raw material used to produce ethyl alcohol fuel that powers 40% of the nation's cars.Brazil's power, transportation, and communications systems generally have kept pace with development.  However, in recent years,  facilities in some areas have not met demand, due to lack of investment and maintenance funds.  The country has a large and increasingly sophisticated industrial base, producing basic industrial products such as steel, chemicals, and petrochemicals and finished consumer goods and aircraft.  A computer industry is also emerging.  Within the past decade, industry has been the greatest contributor to economic growth.  Today, it accounts for nearly 36% of GDP and 75% of exports.Brazil is one of the world's leading producers of hydroelectric power, with a potential of 106,500 megawatts.  Existing hydroelectric plants provide 90% of the nation's electricity.  Two large hydro-electrical projects, the 12,600-megawatt Itaipu Dam on the Parana River--the world's largest dam--and the Tucurui Dam in Para in northern Brazil are in operation.Brazil's first commercial nuclear reactor, Angra I, located near Rio de Janeiro, has been in operation for more than 10 years.  Angra II and III are under construction.  With a combined capacity of 1,245 megawatts, these are the first of eight nuclear plants planned under the 1975 nuclear accord between Germany and Brazil.  However, continued troubles with Angra I and scarce funds have slowed construction of nuclear plants, limiting further expansion for the foreseeable future. Proven mineral resources are extensive.  Large iron and manganese reserves provide important sources of industrial raw materials and export earnings.  Deposits of nickel, tin, chromite, bauxite, beryllium, copper, lead, tungsten, zinc, and gold, as well as lesser known minerals, are exploited.  High-quality coal, especially of the coking grade required in the steel industry, is in short supply.The Brazilian Government has undertaken an ambitious program to reduce dependence on imported oil.  Imports previously accounted for more than 70% of the country's oil needs but now account for less than 50%.  In addition to developing hydroelectric, nuclear, and coal resources, Brazil has become a world leader in the development of alcohol fuel derived from sugarcane.  Brazilian automotive gasoline is a mixture containing up to 22% ethyl alcohol.  Its auto manufacturers began large-scale production of 100% alcohol-powered cars in 1979, and today more than 3 million are on the road.  Alcohol production has not always kept pace, however, leading to alcohol shortages in 1989-1990.  Alcohol subsidies were reduced in the early 1990s, and car makers have begun to increase production of gasoline-powered automobiles.Government Economic StrategyFollowing the 1964 coup, the Brazilian Government focused on two major economic goals, high growth rates and control of inflation.  Sustained economic growth continued into the 1970s.By the late 1970s, escalating oil prices, governmental indebtedness, and high interest rates brought the Brazilian economy to a virtual standstill.  Throughout the 1980s, these problems were attacked through a number of programs emphasizing reduced government expenditures and subsidies and income tax increases.  Nevertheless, budget deficits have persisted.  The combined public sector deficit in 1993 was at least 2% of GDP.On July 1, 1994, Brazil introduced its fifth currency in seven years, the "Real," as part of an economic stabilization plan designed to curb once-again rampant inflation, which reached an annual level of nearly 5,000% at the end of 1993.  Other facets of the plan include balancing the budget, privatization of state-run industries, and strict monetary controls.  Foreign direct investment represents a relatively small but important part of Brazil's capital base.  The share of foreign direct investment and reinvestment totals $8.7 billion, largely in manufacturing and finance.  The constitution restricts the entry of new foreign investors in the financial services area, although U.S. and other foreign institutions established before the prohibition continue to have a prominent share.  The constitution also contains provisions that restrict investment in petroleum and minerals exploration, health care, chemicals, biotechnology, and new materials.  It is believed by many economists, however, that long-term stabilization will require further structural reforms as well as revision of the constitution.Trade and InvestmentForeign direct investment and reinvestment in Brazil (registered with Central Bank as of June 30, 1993) is $41.9 billion.  Sources include the U.S. $13.6 billion (33%); Germany $6.1 billion (14%) Japan $4 billion (9%) U.K. $2.3 billion (5%), Canada $1.7 billion (4%), and Switzerland $1.7 billion (4%).Brazil's industrial development strategy contributed to significant growth and, in the late 1980s, to large trade surpluses.  The country recorded a $19 billion surplus in 1988 and $16 billion in 1989--a remarkable turnaround from the deficits experienced at the beginning of the decade.  Surpluses for 1992 and 1993 were $15 billion and $13 billion respectively.FOREIGN RELATIONSTraditionally, Brazil has been a leader in the inter-American community and has played an important role in collective security efforts as well as in economic cooperation in the Western Hemisphere.  Brazil aligned with the allies in both World Wars and, during World War II, its expeditionary force in Italy played a key role in the allied victory at Monte Castello.  It is a party to the Inter-American Treaty of Reciprocal Assistance (Rio Treaty) and the Organization of American States (OAS).  Recently, Brazil has given high priority to expanding relations with its South American neighbors and is a founding member of the Amazon Pact; the Latin American Integration Association (ALADI)--the successor to the Latin American Free Trade Association (LAFTA); and MERCOSUL (Spanish is MERCOSUR)--uniting Argentina, Uruguay, Paraguay, and Brazil.Brazil is a charter member of the United Nations and participates in many of its specialized agencies.  It holds a two-year Security Council seat through the end of 1994.  It has contributed troops to UN peacekeeping efforts in the Middle East, the former Belgian Congo, Cyprus, Mozambique, and Angola.As Brazil's domestic economy has grown and diversified, the country has become increasingly involved in international politics and economics.  The United States, Western Europe, and Japan are primary markets for Brazilian exports and sources of foreign lending and investment. Brazil's dependence on imported petroleum has resulted in more intensive political and economic ties with Middle Eastern countries.  In the 1970s, Brazil expanded its relations with sub-Saharan African countries.  In 1986, it introduced a proposal at the UN General Assembly to establish a Zone of Peace and Cooperation in the South Atlantic.  As an indication of Brazil's broader international role, trade with other developing countries increased from 9% of the total in the 1970s to nearly 30% in 1993.  In the past year, Brazil has also bolstered its commitment to nuclear non-proliferation through the signing of a full scale nuclear safeguard agreement with the International Atomic Energy Agency (IAEA) and through ratification of the Treaty of Tlatelolco.U.S.-BRAZILIAN RELATIONSThe United States was the first country to recognize Brazil's independence in 1822.  Brazil's 19th-century leader, Emperor Dom Pedro II, admired Abraham Lincoln and visited the United States during the 1876 centennial.  Presidents Roosevelt and Truman made earlier visits; President Carter visited in 1978, President Reagan in 1982, and President Bush in 1990.  President Sarney visited the United States in 1986, and President Collor came to Washington in 1991.In the 1950s and 1960s, Brazil received about $2.4 billion in U.S. economic assistance--$1.4 billion under the auspices of the U.S. Agency for International Development (USAID) and the remainder under P.L. 480 (Food for Peace) and Peace Corps programs.  In view of Brazil's impressive economic development and its increased ability to obtain loans and technical assistance from private and multilateral sources, U.S. assistance programs were phased out in the 1970s, major USAID activities in Brazil ended in 1979, and the Peace Corps program was ended in 1980.  Currently, USAID maintains a small advanced developing country program that emphasizes cooperation on environment, health, and family planning and responds to endemic disease, emergencies, and natural disasters.The United States is Brazil's most important commercial partner and largest investor.  The U.S. share of Brazilian trade averages 23%, and two-way trade amounted to $13.3 billion in 1993.  Brazil's lack of intellectual property protection (especially patents in certain areas) led to frictions with the United States and other major trading partners in 1993.  These came to a head in 1994, when the United States named Brazil in formal trade actions on two occasions under U.S. trade law.  The U.S. objective was to stimulate negotiations as well as appropriate action by Brazil to protect intellectual property rights.  For its part, Brazil is critical of the United States for high U.S. tariffs on products such as steel and orange juice, which Brazil exports.  Recent efforts by both sides have begun to reduce the tensions arising from these issues.Bilateral agreements between Brazil and the United States include a treaty of peace and friendship; an extradition treaty; a joint participation agreement on communication satellites; and, scientific cooperation, civil aviation, and maritime agreements.  Brazil and the United States exchange professors under Fulbright and other academic programs and carry out university cooperation projects.Principal U.S. Embassy OfficialsAmbassador--Melvyn LevitskyDeputy Chief of Mission--Mark LoreDefense Attache--Col. Layton Dunbar, U.S. ArmyEconomic Counselor--Paul WackerbarthCommercial Counselor--Richard AdesPolitical Counselor--Theodore WilkinsonScience Counselor--Roy SimpkinsPublic Affairs Counselor (USIS)--Carl HowardConsul General in Rio de Janeiro--David ZweifelConsul General in Sao Paulo--Philip TaylorThe U.S. embassy in Brazil is located at Avenida das Nacoes Sul, Quadra 801, Lote 3, Brasilia, DF, CEP 70403-900 (tel. [phone], telex 061-1091). U.S. consulates general are in Rio de Janeiro and Sao Paulo.  Consulates are at Porto Alegre and Recife. Consular agents are in Manaus, Sao Luis, Belem, and Salvador da Bahia.  Branch offices of the U.S. Information Service (USIS) are located in Brasilia, Rio de Janeiro, Sao Paulo, and Recife.  Branch offices of the U.S. Foreign Commercial Service are located in Brasilia, Sao Paulo, Rio de Janeiro, Belo Horizonte and Belem.  (###)</text>
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        <text>BACKGROUND NOTES:  BOTSWANA, FEBRUARY 1993PUBLISHED BY THE BUREAU OF PUBIC AFFAIRSBUREAU OF PUBLIC AFFAIRSFEBRUARY 1993Official Name:Republic of BotswanaPROFILEGeographyArea:  600,372  sq. km.  (231,804 sq. mi.), about the size of Texas.Cities:  Capital--Gaborone (pronounced Ha-bo-ro-neh, pop.134,000).  Other towns--Francistown (65,000), Selebi-Phikwe(40,000), Molepolole (37,000), Serowe (27,000), Maun (27,000),Lobatse (26,000), Palapye (17,000), Jwaneng (11,000), Tlokweng (12,000).Terrain:  Desert and savanna.Climate:  Mostly subtropical.PeopleNationality:  Noun and adjective--Motswana (sing.), Batswana (pl.).Population (1991):  1.3 million.Annual growth rate (1991):  3%.Ethnic groups:  Tswana 55-60%; Kalanga 25-30%;  Kgalagadi;Herero; Basarwa ("Bushmen"); Khoi ("Hottentots"); whites 5%.Religions:  Christianity 60%, indigenous beliefs 40%.Languages:  English (official), Setswana.Education:  Attendance--93%.  Adult literacy (1990, ages 15 andover)--23%.Health (1991):  Infant mortality rate--43/1,000.  Life expectancy--60 years.Work force (1991):  223,000 in formal sector.GovernmentType:  Republic, parliamentary democracy.Constitution:  March 1965.Independence:  September 30, 1966.Branches:  Executive--president (chief of state and head ofgovernment), cabinet.  Legislative--popularly elected NationalAssembly; advisory House of Chiefs.  Judicial--High Court, Courtof Appeal, local and customary courts.Administrative subdivisions:  5 town councils and 10 districtcouncils.Main political parties:  Botswana Democratic Party (BDP),Botswana National Front (BNF), Botswana Independence Party (BIP),Botswana Peoples Party (BPP), Botswana Freedom Party (BFP).Suffrage:  Universal adult.Flag:  Blue field with horizontal, white-edged black band in thecenter.EconomyGDP (1991):  $3 billion.Annual growth rate (1991):  9%.Per capita GDP (1991):  $2,500.Natural resources:  Diamonds, copper, nickel, coal, soda ash,salt, gold, potash.Agriculture (3% of GDP):  Livestock, sorghum, white maize,millet, cowpeas, beans.Industry:  Types--mining (45% of GDP): diamonds, copper, nickel,coal; beef; textiles; tourism.Trade (1991):  Exports--$1.7 billion:  diamonds, nickel, copper,meat products, hides and skins, textiles.  Partners--Switzerland,South Africa, Zimbabwe, European countries.  Imports--$1.6billion:  machinery, transport equipment, manufactured goods,food, chemicals, minerals, fuels.  Major suppliers--South Africa,Zimbabwe, US, EC countries.  Annual avg. economic aid received:$220 million.PEOPLE AND HISTORYMost Batswana live in the eastern part of the country, 50% within100 kilometers of Gaborone.  The nomadic population is about10,000, and 15,000 Batswana work in neighboring Africancountries, mainly South Africa.  Prior to European contact, thepopulation of what is now Botswana lived as herders and farmersor as hunters and gatherers under tribal rule.  European,especially English, missionaries arrived in the early 1800s, andDavid Livingstone traversed the country.In the late 19th century, hostilities broke out between theBatswana and Boer settlers from the Transvaal.  After appeals bythe Batswana for assistance, the British Government in 1885 put"Bechuanaland" under its protection.  The northern territoryremained under direct British administration and is today'sBotswana, but the southern territory became part of the CapeColony and is now part of the Cape Province of South Africa; themajority of Setswana-speaking people live in the "independent"homeland of Bophuthatswana, across the border in South Africa.Despite South African pressure, inhabitants of the BechuanalandProtectorate, Basutoland (now Lesotho), and Swaziland in 1909asked for and received British assurances that they would not beincluded in the proposed Union of South Africa.An expansion of British central authority and the evolution oftribal government resulted in the 1920 establishment of twoadvisory councils representing Africans and Europeans.Proclamations in 1934 regularized tribal rule and powers.  AEuropean-African advisory council was formed in 1951.  The 1961constitution established a consultative legislative council.In June 1964, Britain accepted pluralistic proposals forself-government.  The seat of government was moved to Gaborone inFebruary 1965.  The 1965 constitution led to the first generalelections and to independence in September 1966.  An independenceleader was elected as the first president, re-elected twice, anddied in office in 1980.  The presidency passed to the sittingvice president, who was elected in his own right in 1984 andre-elected in 1989.GOVERNMENT AND POLITICAL CONDITIONSBotswana has a flourishing, multiparty, constitutional democracy.Each of the elections since independence has been freely andfairly contested and has been held on schedule.  The country'ssmall white minority and other minorities participate freely inthe political process.  There are eight political parties.  In1989, the Botswana Democratic Party (BDP) won 31 of  34 NationalAssembly seats and the Botswana National Front (BNF) won 3.Opposition parties, with popular strength in urban areas, havemoved toward a common front.  The openness of the country'spolitical system has been a significant factor in Botswana'sstability and economic growth.  General elections are held atleast every 5 years.  The next national election is in 1994.The president has executive power and is chosen by nationalelection for a 5-year term.  The cabinet is presidentiallyselected from the National Assembly;  it consists of a vicepresident and a flexible number (currently 12) of ministers.  TheNational Assembly has 34 elected and 4 appointed members; it willbe expanded as a result of the 1991 census.  The advisory Houseof Chiefs represents permanently the eight principal sub-groupsof the Batswana tribe, and four other members are elected by thesub-chiefs of four of the districts.  A draft of any NationalAssembly bill of tribal concern must be referred to the House ofChiefs.Chiefs and other leaders preside over courts of local custom andenforce traditional law.  The roots of Botswana's democracy liein Tswana traditions, exemplified by the Kgotla, or villagecouncil, in which the powers of traditional leaders were limitedby custom and law.  Botswana's High Court has general civil andcriminal jurisdiction.  Judges are presidentially appointed andmay be removed only for cause and after a hearing.  Theconstitution has a code of fundamental human rights enforced bythe courts, and Botswana has a good human rights record.Local government is administered by 10 district councils and 5town councils.  District commissioners have executive authorityand are appointed by the central government and assisted byelected and nominated district councilors and districtdevelopment committees.  There has been much debate about themarginalization of the minority Basarwa (Bushmen), and thegovernment's development program for remote area dwellers isundergoing review.Although there is a government-owned newspaper and the governmentoperates the only national radio network, there is an active,independent press.  Foreign publications are readily available.Principal Government OfficialsPresident--Sir Ketumile MasireVice President--Festus G. MogaeAmbassador to the United States-- B. Kingsley SebeleAmbassador to the United Nations-- L. J. M. J. LegwailaBotswana maintains an embassy at 3400 International Drive NW,Suite 7-M, Washington, DC  20008 (tel. [phone];  FAX[phone]). Its mission to the United Nations is at 103 E.37th Street, New York, NY 10017 (tel. [phone];  FAX[phone]).ECONOMYSince independence, Botswana has had an impressive economicgrowth rate, reaching 9% in 1991.  Recently, the government hasmaintained budget surpluses and substantial foreign exchangereserves.  This record is a result of earnings from diamondmining, considerable international grant and loan aid, andprudent fiscal policy and economic management.Mining.  Two large mining companies, Debeers Botswana Mining(Debswana) and Bamangwato Concessions, Ltd. (BCL), both partlygovernment-owned, operate mining facilities in the eastern andcentral regions of the country.Since the early 1980s, the country has become the world's largestproducer of quality diamonds.  Three large diamond mines haveopened since independence.  DeBeers prospectors discovereddiamonds in northern Botswana in the early 1970s.  The first minebegan production at Orapa in 1972, followed by the smaller mineat Lethlakane.  What has become the single richest diamond minein the world opened in Jwaneng in 1982.  Botswana produced atotal of 17.4 million carats of diamonds from the three Debswanamines in 1991.  BCL, which operates a copper-nickel mine atSelebi-Phikwe, produced 48,300 tons of copper-nickel alloy forexport in 1991.Botswana's major coal mine at Morupule had a 1991 output of783,900 tons.  Production and sale of soda ash from the Sua Panoperation in 1991 were below expectations due to technicalproblems, with only 62,000 tons produced (of a target 130,000)and only 32,000 sold.  A small gold mine began production in1992.  Possible petroleum and natural gas deposits are beingstudied for exploitation.Agriculture.  More than two-thirds of the population live inrural areas and are largely dependent on subsistence crop andlivestock farming.  Although agriculture meets only 50% of foodneeds and contributes just 3% to GDP, it employs 80% of Batswana.Cattle raising historically dominated Botswana's economy andsocial structure.  The national cattle stock fell from more than3 million head at the onset of the 1981-86 drought to 2.3mil-lion, was gradually rebuilt, then fell again due to droughtin 1991-92.   The Botswana Meat Commission (BMC) is governmentowned.  It operates the largest African slaughterhouse--and somesmaller ones--and is Africa's largest meat exporter.Private Sector Development and Foreign Investment.  Botswanaseeks to diversify its economy to reduce dependence on earningsfrom mineral exports, which are expected to begin leveling off.It emphasizes private sector development and foreign investmentfor much-needed managerial and technical expertise.  Twoimportant sectors are light manufacturing and tourism.  Nationalparks and wildlife areas--more than 17% of Botswana's land--offerpotential for tourism development.US investment in Botswana is growing.  In 1987, two Americancompanies, H.J. Heinz and Colgate-Palmolive, set up facilities.Phelps-Dodge has bought into the nickel-copper mine atSelebi-Phikwe, and a Sheraton Hotel opened in Gaborone in 1991.A Lobatse brick-making plant in which Interkiln has major equitystarted up in 1992, and Lazare-Kaplan began a diamond-cutting and-polishing operation in Molepolole.Southern Africa Customs Union (SACU).  Because of history andgeography, Botswana long has had strong economic ties to SouthAfrica.  The Southern Africa Customs Union (SACU)--Botswana,Namibia, Lesotho, Swaziland, and South Africa--dates from the1910 formation of the Union of South Africa.  Under thisagreement, South Africa levies and collects most of the customs,sales, and excise duties for the four countries, paying out ashare of the collections to each based on their proportion ofimports.  Imports from outside the customs area are subject tocommon tariff rates and regulations.  The customs agreement wasrenegotiated in 1989, and Botswana's share of revenue increasedfrom $1.7 million in 1968 to almost $500 million in 1991,accounting for 25% of government revenues.  Botswana'scurrency--the pula--is fully convertible and is valued against abasket of currencies heavily weighted toward the South Africanrand.Southern Africa Development Community (SADC).  Gaborone is hostto the 10-nation Southern Africa Development Community (SADC).Like its predecessor, the 9-nation SADCC (Southern AfricaDevelopment Coordination Conference) organized in 1980, membernations seek to accelerate regional economic growth and reducetheir economic dependence on South Africa.  Because the region isso dependent on South Africa's transport and communicationsnetwork for imports and exports, the focus of SADC efforts hasbeen the development of shorter and cheaper alternates, althoughits location makes this of limited relevance to Botswana.Transportation and Communications.  Botswana has about 1,500 mi.of tarred roads, 950 mi. of engineered gravel roads, and 3,450mi. of earth and sand roads.  An "inner circle" highwayconnecting major towns and district capitals is being paved.  Theall-weather Trans-Kalahari Highway will soon stretch to theAtlantic coast at Walvis Bay.  A rail line links major populationcenters to Zimbabwe and South Africa.  Botswana depends on SouthAfrica for more than 85% of its imports and transshipments andfor beef and copper-nickel alloy export.  Botswana has nine pavedairfields and direct-dial telephone service;  direct-dial accessis being extended to remote rural areas.DEFENSEThe president is commander in chief of the Botswana Defense Force(BDF).  A defense council is presidentially appointed.  The BDFwas formed in 1977 in response to the Rhodesian conflict andraids into Botswana.  It has 6,500 members, 280 in the air wing.Botswana is modernizing and expanding the BDF and acquiring airdefense and anti-tank weapons.  The United States provides themost military aid--more than $30 million to date.  About 500 BDFpersonnel have received training in the United States.FOREIGN RELATIONSBotswana recognizes the importance of South Africa as the largestand most developed state in the region and maintains a range ofdiplomatic, economic (see "Economy"), and other relations withthat country.  Much foreign investment in Botswana is SouthAfrican.  Nonetheless, Botswana opposes apartheid in South Africaand does not recognize its "independent homelands."Botswana has formal diplomatic relations with most Africancountries and many European nations and Arab countries.  Mostambassadors accredited to Botswana reside in Harare, Zimbabwe, orin Lusaka, Zambia.  Botswana receives multilateral and bilateralaid from many sources.Botswana is a member of numerous international organizations,including the United Nations, and generally follows a nonalignedpolicy in international forums, voting with its Africancolleagues on most matters.US-BOTSWANA RELATIONSThe United States considers Botswana a force for stability inturbulent Southern Africa.  The Peace Corps program has 150volunteers, and the US Agency for International Development(USAID) mission provides development assistance and food aid.The US has an investment guarantee agreement with the governmentand encourages private sector growth in Botswana and expansion ofUS investment and trade.In FY 1992, total US aid was almost $28 million.  US assistancehas emphasized education and training in Botswana and abroad,including under-graduate and graduate study in the US.  TheUnited States operates a major Voice of America relay station inBotswana serving most of Africa and reaching the Middle East andinto the Indian Ocean.Principal US OfficialsAmbassador--David PassageDeputy Chief of Mission--Jimmy KolkerUSAID Mission Director--Howard R. HandlerPublic Affairs Officer--Alice C. LemaistrePeace Corps Director--Maureen CarrollOffice of Military Cooperation--Maj. Gary WalkerThe US embassy is on Embassy Drive off Khama Crescent--PO Box 90,Gaborone (tel. 353-982; FAX 356-947).  USIS is at the embassy.USAID is in Barclays House, on Khama Crescent--PO Box 2427,Gaborone.  Peace Corps is at 133 Independence Ave.--PO Box 93,Gaborone.  VOA Botswana Relay Station's address is Private Bag38, Selebi-Phikwe.Travel Notes:Customs:  US citizens do not need visas to enter Botswana.  Theymaystay up to 90 days without a residence permit.Health:  Tap water is potable in major towns.  Due toschistosomiasis risks, seek advice before swimming in lakes orrivers.  During the summer months in the south and year-round inthe north, malaria prevention is recommended.Transportation:  Botswana is served by Air Botswana, BritishAirways, UTA, Comair, Zambia Airways, and Air Zimbabwe.  Rentalcars are available in major towns.  Traffic moves on the left.Accommodations:  Hotel facilities are comfortable in all majortowns.Published by the United States Department of State -- Bureau ofPublic Affairs -- Office of Public Communication -- Washington,DC -- February 1993 -- Managing Editor:  Peter A. Knecht --Editor:  Marilyn J. BremnerDepartment of State Publication 8046Background Notes Series -- This material is in the public domainand may be reprinted without permission; citation of this sourceis appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  BOLIVIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994PROFILE Geography Area:  1.1 million sq. km. (425,000 sq. mi.); about the size of Texas and California.  Cities:  Capital--La Paz (administrative--pop. 713,400); Sucre (judicial--131,800).  Other cities--Santa Cruz (697,000), Cochabamba (407,800).  Terrain:  High plateau (altiplano), temperate and semitropical valleys, and the tropical lowlands.  Climate:  Varies with altitude--from humid and tropical to semi-arid and cold. People Nationality:  Noun and adjective--Bolivian(s).  Population:  6.95 million (1992 census).  Annual growth rate:  2%.  Ethnic groups:  56% indigenous (primarily Aymara and Quechua) and mixed, 42% European.  Religions:  Predominantly Roman Catholic.  Languages:  Spanish (official); Quechua, Aymara.  Education:  Years compulsory--ages 7-14.  Literacy--20%.  Health:  Infant mortality rate (1992)--92/1,000.  Work force:  3.6 million.  Industry and commerce--22%.  Services (including government)--67%. Government Type:  Republic.  Independence:  August 6, 1825. Constitution:  1967.Branches:  Executive--president and cabinet.  Legislative--bicameral Congress.  Judicial--five levels of jurisdiction, headed by Supreme Court.Subdivisions:  Nine departments.Major political parties:  Nationalist Revolutionary Movement (MNR), Nationalist Democratic Action (ADN), Movement of the Revolutionary Left (MIR), Conscience of the Fatherland (CONDEPA), Free Bolivia Movement (MBL), Civic Solidarity Union (UCS).Suffrage:  Universal adult.Economy GDP (1993):  $7.1 billion.  Annual growth rate (1993):  4%.  Per capita income (1993):  $1,017.  Natural resources:  Tin, natural gas, petroleum, zinc, tungsten, antimony, silver, lead, gold, iron (lithium, potassium, and borax are not yet exploited).Agriculture (17% of GDP):  Products--potatoes, corn, sugarcane, rice, wheat, coffee, beef, barley, and quinine.  Arable land--27%.Industry:  Types--manufacturing, commerce, extraction of minerals and hydrocarbons, textiles, food processing, chemicals, plastics, mineral smelting, and petroleum refining.Trade (1993):  Exports--$630 million.  Products--natural gas, tin, zinc, coffee, silver, tungsten.  Major markets--Latin American Integration Association (ALADI), U.S., European Union.  Imports--$1.1 billion.  Products--machinery and transportation equipment, consumer products, construction and mining equipment.  Major suppliers--ALADI, U.S., Japan, Brazil.Official exchange rate:  4.67 Bolivianos=U.S.$1.PEOPLEBolivia's ethnic distribution is estimated to be 56% indigenous Aymara and Quechua peoples and mestizo, and 42% European (primarily Spanish).  Among the limited number of foreign residents are about 700 Japanese and Okinawan families who emigrated to Bolivia after World War II and settled in the Santa Cruz area.  A small Mennonite community resides in the same region.  A number of immigrants recently have come from the former Yugoslavia.Bolivia is the least-developed country in South America.  About two-thirds of its people, many of whom are subsistence farmers, live in poverty.  Population density ranges from less than one person per square kilometer in the southeastern plains to about 10 per square km. (25 per sq. mi.) in the central highlands.  Bolivia's high mortality rate prevents the annual population growth rate from exceeding 2%.La Paz is at the highest elevation of the world's capital cities--3,600 meters (11,800 ft.) above sea level.  The fastest-growing major city is Santa Cruz, the commercial and industrial hub of the eastern lowlands.Almost 95% of Bolivians are Roman Catholic, although a number of Protestant denominations are also represented.  Many Indian communities interweave pre-Columbian and Christian symbols in their religious practices.  About half of the people speak Spanish as their first language.  About 90% of the children attend primary school, but often for a year or less.  The literacy rate is low in many rural areas.The cultural development of what is present-day Bolivia is divided into three distinct periods:  pre-Columbian, colonial, and republican.  The pre-Columbian period produced important archeological ruins, gold and silver ornaments, and ceramics and weavings of the great Aymara civilization at Tiahuanacu.  The later Inca conquest of the highlands left important ruins at Samaipata and Incallajta.  The Quechua (or Inca) culture originated a beautiful style in ceramics and weavings that has been preserved.The Spanish brought their own tradition of religious art which, in the hands of local Indian and mestizo builders and artisans, developed into a rich and distinctive style of architecture, painting, and sculpture known as "Mestizo Baroque."  The colonial period produced not only the paintings of Perez de Holguin, Flores, Bitti, and others but also the works of skilled, but unknown, stonecutters, goldsmiths, and silversmiths.  An important body of baroque music of the period was discovered recently.Bolivian artists of stature in the 20th century include Guzman de Rojas, Arturo Borda, and Maria Luisa Pacheco.  Marina Nunez del Prado is an internationally known sculptor.Bolivia has rich folklore.  Its regional folk music is distinctive and varied.  The devil dances at the annual carnival of Oruro are one of the great folkloric events of South America, as is the lesser known carnival at Tarabuco. HISTORYPeople probably have been inhabiting the Andean region since about 20,000 BC.  Between 100 BC and AD 900, an advanced culture developed at the southern end of Lake Titicaca.  This culture, centered around Tiahuanacu, developed complex agricultural and irrigation techniques.  It spread to surrounding areas and formed the Aymara empire.  In about 1450, the Quechua-speaking Incas entered the area of modern highland Bolivia and added it to their empire.  They controlled the area until the Spanish conquest in 1525.During most of the Spanish colonial period, this territory was called "Upper Peru" or "Charcas" and was governed from Lima.  The principal cities were Chuquisaca (modern Sucre) and Potosi.  Bolivian silver mines produced much of the Spanish empire's wealth, and Potosi, site of the famed Cerro Rico ("Rich Mountain"), was for many years the largest city in the Western Hemisphere.  As Spanish royal authority weakened during the Napoleonic wars, sentiment against colonial rule grew.  Independence was proclaimed in 1809, but 16 years of struggle followed before the establishment of the republic, named for Simon Bolivar, on August 6, 1825.Independence did not bring stability.  For nearly 60 years, coups and short-lived constitutions dominated Bolivian politics.  Bolivia's weakness was demonstrated during the War of the Pacific (1879-83), when it lost its seacoast and the adjoining rich nitrate fields to Chile.An increase in the world price of silver brought Bolivia a measure of relative prosperity and political stability in the late 1800s.  During the early part of the 20th century, tin replaced silver as the country's most important source of wealth.  Political parties that reflected the interests of the mine owners ruled until the 1930s with few outbreaks of violence.Living conditions of the Indians, who constituted most of the population, remained deplorable.  Forced to work under primitive conditions in the mines and in nearly feudal status on large estates, they were denied access to education, economic opportunity, or political participation.Bolivia's defeat by Paraguay in the Chaco War (1932-35) marked a turning point.  Great loss of life and territory discredited the traditional ruling classes, while service in the army produced stirrings of political awareness among the Indians.  From the end of the Chaco War until the 1952 revolution, the emergence of contending ideologies and the demands of new groups convulsed Bolivian politics.The Nationalist Revolutionary Movement (MNR) emerged as a broadly based party.  Denied its victory in the 1951 presidential elections, the MNR lead the successful 1952 revolution.  Under President Victor Paz Estenssoro, the MNR introduced universal adult suffrage, carried out a sweeping land reform, promoted rural education, and nationalized the country's largest tin mines.Twelve years of tumultuous rule left the MNR divided.  In 1964, a military junta overthrew President Paz Estenssoro at the outset of his third term.  The 1969 death of President Rene Barrientos, a former member of the junta elected President in 1966, led to a succession of weak governments.  Alarmed by public disorder, the military, the MNR, and others installed Col. (later Gen.) Hugo Banzer Suarez as President in 1971.  Banzer ruled with MNR support from 1971 to 1974.  Then, impatient with schisms in the coalition, he replaced civilians with members of the armed forces and suspended political activities.  The economy grew impressively during Banzer's presidency, but demands for greater political freedom undercut his support.  His call for elections in 1978 plunged Bolivia into turmoil once again.Elections in 1978, 1979, and 1980 were inconclusive and marked by fraud.  There were coups, counter-coups, and caretaker governments.  In 1980, Gen. Luis Garcia Meza carried out a ruthless and violent coup.  His government was notorious for human rights abuses, narcotics trafficking, and economic mismanagement.After a military rebellion forced out Garcia Meza in 1981, three other military governments in 14 months struggled with Bolivia's growing problems.  Unrest forced the military to convoke the Congress elected in 1980 and allow it to choose a new chief executive.  In October 1982--22 years after the end of his first term of office (1956-60)--Hernan Siles Zuazo again became President.  Severe social tension, exacerbated by economic mismanagement and weak leadership, forced him to call early elections and relinquish power a year before the end of his constitutional term.In 1985 elections, the Nationalist Democratic Action Party (ADN) of Gen. Banzer won a plurality of the popular vote, followed by former President Paz Estenssoro's MNR and former Vice President Jaime Paz Zamora's Movement of the Revolutionary Left (MIR).  But in the congressional run-off, the MIR sided with MNR, and Paz Estenssoro was chosen for a fourth term as President.When Paz Estenssoro took office in 1985, he faced a staggering economic crisis.  Economic output and exports had been declining for several years.  Hyperinflation had reached an annual rate of 24,000%.  Social unrest, chronic strikes, and unfettered operation by drug dealers were widespread.In four years, Paz Estenssoro's administration achieved an economic and social stability that remains the envy of Bolivia's neighbors.  The military stayed out of politics, and all major political parties publicly and institutionally committed themselves to democracy.  Human rights violations, which badly tainted some governments earlier in the decade, were not a problem.However, Paz Estenssoro's remarkable accomplishments were not won without sacrifice.  The collapse of tin prices in October 1985, coming just as the government was moving to nationalize its mismanaged mining company, forced the government to lay off over 20,000 miners.  The highly successful shock treatment that restored Bolivia's financial system also led to some unrest and temporary social dislocation.President Jaime Paz Zamora took office August 6, 1989, following the fairest elections in recent Bolivian history.  Since no candidate received a majority of votes, under the constitution, the Congress voted to determine who would be president.  In negotiations preceding the vote, Paz Zamora negotiated with the second-place finisher, Gen. Banzer, to share the leadership.  Paz Zamora's center-left MIR assumed the presidency and half the ministries.  Banzer's center-right ADN gained control of the National Political Council (CONAP), in addition to its ministries.Paz Zamora was a moderate, center-left president whose political pragmatism in office outweighed his Marxist origins.  Having seen the destructive hyper-inflation (24,000%) of the Siles Zuazo administration, he continued the neo-liberal economic reforms begun by Paz Estenssoro, codifying some of the reforms.  Paz Zamora took a fairly hard line against domestic terrorism, personally ordering the December 1990 attack on terrorists of the Nestor Paz Zamora Committee (CNP--named after his brother who died in the 1970 Teoponte insurgency) and authorizing the early 1992 crackdown against the Tupac Katari Guerrilla Army (EGTK).  Paz Zamora's regime was less decisive against narcotics trafficking.  The government broke up a number of trafficking networks but issued a 1991 surrender decree giving lenient sentences to the biggest narcotics kingpins.  Also, his administration was extremely reluctant to vigorously eradicate illegal coca.  It did not sign an updated extradition treaty with the U.S., although one trafficker was extradited to the U.S. in 1992.  (In early 1994, the Bolivian Congress investigated Paz Zamora's personal ties to major trafficker Isaac Chavarria; Paz Zamora then retired from politics.)The 1993 elections continued the tradition of open, honest elections and peaceful democratic transitions of power.  Gonzalo "Goni" Sanchez de Lozada's MNR defeated Gen. Banzer's ADN/MIR coalition by a 34% to 20% margin and was selected as President by the Congress.  GOVERNMENT AND POLITICAL CONDITIONSSince assuming office in August 1993, Sanchez de Lozada has pursued an aggressive economic and social reform agenda.  He has relied heavily on successful entrepreneurs-turned-politicians like himself and on fellow veterans of the Paz Estenssoro administration (during which Sanchez de Lozada was planning minister).  There have been some political difficulties, however, within Sanchez de Lozada's MNR party, his coalition, and the sectors most affected by his reforms, e.g., labor.  There was considerable labor-instigated social unrest in parts of Bolivia in early 1994.The 1967 constitution provides for traditional executive, legislative, and judicial powers.  The traditionally strong executive, however, tends to overshadow the Congress, whose role is generally limited to debating and approving legislation initiated by the executive.  The judiciary consists of the Supreme Court and departmental and lower courts.  Bolivia's nine departments have limited autonomy, although departmental officials have been appointed by the central government for many years.Since July 14, 1985, Bolivian cities and towns have been governed by elected mayors and councils.  The most recent municipal elections took place in December 1993. Principal Government OfficialsPresident--Gonzalo SANCHEZ DE LOZADAVice President--Victor Hugo CARDENASMinister of Foreign Affairs--Antonio ARANIBARAmbassador to the U.S.--Andres PETRICEVICAmbassador to the UN--Edgar CAMACHO OmisteAmbassador to the OAS--Carlos CASSAPBolivia maintains an embassy in the U.S. at 3014 Massachusetts Ave., NW, Washington, DC 20008 (tel. [phone]); consulates in Los Angeles, San Francisco, Miami, New Orleans, and New York; and honorary consulates in Atlanta, Chicago, Cincinnati, Houston, Seattle, St. Louis, and San Juan. ECONOMYGross domestic product (GDP) reached around $7 billion in 1993, with a per capita GDP of about $1,000.  This is one of the lowest per capita rates in Latin America, an indication of Bolivia's relative poverty.  Other indications can be seen in Bolivia's illiteracy rate, about 20% of the adult population, and in the infant mortality rate, about 92 per 1,000 live births.  Only 9% of children starting school complete high school.  Bolivia also has very limited infrastructure, with only about 1,000 miles of paved highways.  There are no fully paved roads to any of the neighboring countries, although external loans have been pledged to pave the routes to the Chilean and Peruvian borders.The economic growth experienced since 1986 is the result of a series of market-oriented economic reforms that were initiated in 1985 to stop inflation and economic decline.  Hyperinflation stopped almost immediately and private sector confidence in the economy was restored.  Deposits in the commercial banks grew from only $50 million in 1985 to nearly $2 billion by 1993.A 1993 banking law allows banks to hold deposits and make loans in foreign currencies.  Other laws passed in the early 1990s governing foreign investment, the mining industry, the hydrocarbons industry, and the environment have all locked into place market-oriented policies and have encouraged private investment.  Foreign investors are accorded national treatment, and foreign ownership of companies enjoys virtually no restrictions in Bolivia.Agriculture accounts for about 17% of GDP, with the amount of land cultivated by modern farming techniques increasing rapidly in the Santa Cruz area, where weather allows for two crops a year and soybean is the major cash crop.  The extraction of mineral and hydrocarbons accounts for another 8% of GDP.  Bolivia is self-sufficient in oil and exports natural gas to Argentina.  Manufacturing represents only 16% of GDP. External FinancingThe Government of Bolivia remains heavily dependent on foreign assistance to finance development projects.  At the end of 1993, the government owed almost $3.8 billion to its foreign creditors.  About $1.6 billion of this amount was owed to other governments, with the balance owed to multilateral development banks.  Most of the payments to other governments have been rescheduled on four separate occasions since 1987 through the Paris Club mechanism.  External creditors have been willing to do this because the Bolivian Government has generally achieved the monetary and fiscal targets set by IMF programs since 1987.  The current IMF program, which consists of soft balance-of-payments loans from the enhanced structural adjustment facility as the government achieves certain targets, was extended until May 31, 1994.  The government is in the process of negotiating another agreement with the IMF.Rescheduling agreements granted by the Paris Club have allowed the individual creditor countries to apply very soft terms to the rescheduled debt.  As a result, some countries have forgiven substantial amounts of Bolivia's bilateral debt.The Bolivian Government continues to pay its debts to the multilateral development banks on time and to receive soft loans.  Since 1986, loan disbursements have slightly exceeded repayments each year.  Foreign TradeFrom a low of $570 million in 1987, exports rose, then fell again to $630 million in 1993.  Export earnings have been hurt by lower prices for most minerals and for Bolivia's natural gas.  When the original 20-year gas purchase contract by the Argentine Government expired in 1992, the price of the gas fell by two-thirds.  Bolivia plans to export gas to Brazil and northern Chile, but there is no financing for the construction of pipelines.Imports have grown quickly, reaching $1.1 billion in 1993.  This growth has been caused by the gradual reduction of tariffs to a flat 10% (except for capital equipment, which has a 5% rate) and the economic recovery.  Only 19% of registered imports in 1993 were consumer products, with machinery and intermediate products making up the balance.  This suggests substantial new investment which will translate to new exports in the future.  Nonetheless, trade deficits of around $500 million, as in 1992 and 1993, are not sustainable.Bolivia's trade with its neighboring countries is growing, in part, because of several preferential trade agreements.  Bolivia is a member of the Andean Pact and has free trade with the other member countries (Peru, Ecuador, Colombia, and Venezuela).  Bolivia also has bilateral agreements with Brazil, Chile, Argentina, Paraguay, and Uruguay that eliminate or reduce tariffs on lists of products.  The Andean Trade Preference Act (ATPA) allows most Bolivian products to enter the U.S. free of duty on a unilateral basis.  Tariffs have to be paid on clothing and leather products only.In 1993, the U.S. exported $216 million of merchandise to Bolivia and imported $191 million, according to the U.S. Department of Commerce.  The U.S. accounts for about 30% of Bolivia's exports and 20% of its imports.  Bolivia's major exports to the U.S. are tin, gold, jewelry, and wood products.  Its major imports from the United States are computers, vehicles, wheat, and all sorts of machinery. FOREIGN RELATIONSBolivia traditionally has maintained normal diplomatic relations with all hemispheric states except Chile.  Relations with Chile, strained since Bolivia's defeat in the War of the Pacific (1879-83) and its loss of the coastal province of Atacama, were severed from 1962 to 1975 in a dispute over the use of the waters of the Lauca River.  Relations were resumed in 1975 but broken again in 1978 over the inability of the two countries to reach an agreement that might have granted Bolivia a sovereign access to the sea.  In the 1960s, relations with Cuba were broken following Castro's rise to power but resumed under the Paz Estenssoro administration in 1985.Sanchez de Lozada's administration pursues an active foreign policy, which has a heavy economic component.  He visited the U.S. even before assuming office and has concentrated in the region on thawing historically cool relations with Chile and Paraguay.  Bolivia has become more active in the OAS, the Rio Group, and in MERCOSUR (Southern Cone Common Market), where it is an observer.  Like other leaders in the region, Sanchez de Lozada aims to participate in the North American Free Trade Agreement (NAFTA).  In addition, he promotes Bolivia's policies on sustainable development and the empowerment of indigenous peoples as models for the hemisphere.Bolivia strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  Bolivia agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.Bolivia is a member of the UN and some specialized agencies and related programs; Organization of American States (OAS); Andean Pact; INTELSAT; Non-Aligned Movement; International Parliamentary Union; Latin American Integration Association (ALADI); General Agreement on Tariffs and Trade (GATT); Rio Treaty; Rio Group; MERCOSUR (observer status); Uruguay, Paraguay, Bolivia (URUPABOL--restarted in 1993). U.S.-BOLIVIAN RELATIONSIn 1991, the U.S. Government forgave all of the debt owed to the U.S. Agency for International Development ($341 million) as well as 80% (or $31 million) of the amount owed to the Department of Agriculture for food assistance.  Increased U.S. assistance since the late 1980s has been on a grant basis and aims to make Bolivia less dependent on the cocaine industry.U.S. economic and development assistance reached $110 million in FY 1994, in addition to another $42 million for military and counternarcotics assistance. The major issue in bilateral relations is illegal narcotics control.  Bolivia produces 30%-40% of the world's coca and is second only to Colombia in production of cocaine.  For generations, the traditional practice of chewing coca leaves served to alleviate the rigors of life on the altiplano, but during the past decades, an increasing percentage of coca cultivation has been diverted to the illegal market for the production of cocaine.  The corruption and disregard for law that accompanied the growth of the illegal trade have made narcotics trafficking not only a major domestic but an international problem for Bolivia.  The U.S. Andean strategy announced in February 1990 started cooperative programs in Bolivia and with neighbors Peru and Colombia to help combat the menace of narcotics production and trafficking.  The Sanchez de Lozada administration has continued bilateral cooperation on counternarcotics issues and has begun to tackle related domestic corruption in the court and political systems. Principal U.S. Officials Ambassador--Curtis W. KammanDeputy Chief of Mission--David B. DlouhyPolitical Counselor--W. Lewis AnselemEconomic Counselor--Paul B. LarsenConsul General--Jeanne SchulzDirector, USAID Mission--Carl LeonardPublic Affairs Officer, USIS--John S. WilliamsDefense Attache--Col. Terry Obermiller, USAFCommander, U.S. Military Group--Col. Claude Shelverton, USAThe U.S. embassy is located at Avenida Arce #2780, La Paz (tel. [phone]).  There are consular agents in the cities of Santa Cruz (tel. [phone]) and Cochabamba (tel. [phone]).(###)</text>
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        <text>BHUTAN BACKGROUND NOTES (MAY 1990)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSDEPARTMENT OF STATEMay 1990Official Name: Kingdom of BhutanPROFILEGeographyArea:  46,620 sq. km. (18,000 sq. mi.); about the size of Vermont and NewHampshire combined.  Cities:  Capital--Thimpu (population 20,000).  Terrain:Mostly mountainous--up to 7,000 m. (24,000 ft.), heavily forested; somearable land and savanna.  Climate:  Subtropical in south, temperate incentral region, alpine in north.PeopleNationality:  Noun and adjective--Bhutanese (sing. and pl.).  Population(1989 est.): 1.5 million.  Annual growth rate:  2.1%.  Ethnic groups:Ngalops and Sharchops 75%, Nepalese 25%.  Religions:  MahayanaBuddhism (state religion) 75%, Hinduism 25%.  Languages:  Dzongkha, aTibetan dialect (official), Sharchop, Bumthap, Nepali, English (medium ofinstruction in schools), and a number of dialects.  Education:  Yearscompulsory--none.  Primary enrollment--25%.  Adult literacy--15%.  Health:Life expectancy--47 yrs.  Work force:  Agriculture--90%.  Industry andcommerce--1%.  Other--9%.GovernmentType:  Monarchy.  Constitution:  None.Branches:  Executive--king (head of government and chief of state), Councilof Ministers (cabinet), Royal Advisory Council.  Legislative--Tshogdu(unicameral National Assembly, 150 members).  Judicial--Supreme Court.Administrative subdivisions:  18 districts.Political parties:  None.  Suffrage:  One vote per family.Central government budget (1989-90):  $107 million.National holiday:  December 17.Flag:  Divided diagonally with yellow on the left over orange on the right; awhite dragon in the center.EconomyGDP (1988):  $297 million.  Annual growth rate (1982-88):  8.3%.  Per capitaincome:  $217.  Avg. inflation rate (1988):  10%.Natural resources:  Timber, hydroelectric power.Agriculture and forestry (44% of GNP in 1988):  Products--rice, corn, wheat,buckwheat, barley, potatoes, oilseeds, cardamom, and timber.Industry (6% of GDP in 1988):  Types--handicrafts, cement, calcium carbideproduction, food processing, wood milling, distilling.Trade (1988-89):  Exports--$70.9 million:  cement, talc powder, fruitproducts, potatoes, alcoholic beverages, rosin, cardamom, sawn timber,pressboard, calcium carbide.  Major market--India.  Imports--$138.3 million:textiles, cereals,fuel, investment goods, including motor vehicles.  Major source--India.Official exchange rate (Avg. FY 88-89):  15.1 ngultrums= US$1.  Thengultrum is set at par with the Indian rupee.Fiscal year:  July 1-June 30.Membership in International OrganizationsUN and some of its specialized and related agencies, including theInternational Monetary Fund (IMF), the World Bank (IBRD), Economic andSocial Commission for Asia and Pacific (ESCAP), Food and AgricultureOrganization (FAO), UN Educational, Scientific, and Cultural Organization(UNESCO), World Health Organization (WHO), and the Universal PostalUnion (UPU); Colombo Plan; Nonaligned Movement; Group of 77; AsianDevelopment Bank (ADB), South Asian Association for RegionalCooperation (SAARC).PEOPLEThe people of Bhutan can be divided into three broad ethniccategories--Sharchops, Ngalops, and those of Nepali origin.  TheSharchops, believed to be the earliest major group of inhabitants, live ineastern Bhutan and appear to be closely related to the inhabitants ofnortheast India and northern Burma.  The Ngalops are said to be of Tibetanorigin, arriving in Bhutan in the 8th century A.D. and bringing with them theculture and Buddhist religion that prevail in the northern two-thirds ofBhutan.  The Nepalis, most of whom are Hindus, arrived in the late 19th andearly 20th centuries. They farm Bhutan's southern foothill region.The official language of Bhutan, Dzongkha, is related to classical Tibetanand is written partly in the classical Tibetan script, Choekay.  Nepalipredominates in southern Bhutan.  As many as 11 other vernacularlanguages are spoken.  English, the official working language and themedium of instruction in schools and colleges, is widely used.  Populationdensity is a relatively low 32 per sq. km. (83 per sq. mi.), contrasted withIndia's 255 per sq. km. (660 per sq. mi.).  Communities are clustered infertile valleys around dzongs, fortified monasteries that have served forcenturies as administrative as well as religious centers.HISTORYBhutan's early history is obscure.  The country may have been inhabited asearly as 2,000 B.C., but not much is known about it until Tantric Buddhismwas introduced in the 8th century A.D.  The country's political history isintimately tied to its religious history and relations among the variousmonastic schools and monasteries.The consolidation of Bhutan began 300 years ago.  Ngawang Namgyal, alama from Tibet, defeated three Tibetan invasions, subjugated rival religiousschools, codified anintricate and comprehensive system of laws, and established himself asruler (shabdung) over a system of ecclesiastical and civil administrators.After his death civil strife broke out, which, over the next 200 years, erodedshabdungs' power to the advantage of regional governors and localleaders.  In 1885, the central authority recruited Chinese aid to crush themost powerful governors.  This move was countered by a local Tongsaleader, Ugyen Wangchuck, who arranged for a British presence in the area.In 1907, after the shabdung's death, Ugyen became Bhutan's firsthereditary king.In 1910, King Ugyen and the British signed the Treaty of Punakha, whichprovided that British India would not interfere in the internal affairs of Bhutanif the country accepted British advice in its external relations.  Similarprovisions were included in the 1949 Indo-Bhutan Treaty signed withindependent India.GOVERNMENT AND POLITICAL CONDITIONSTraditionally a decentralized theocracy, and since 1907 a monarchy, Bhutanis moving gradually toward representative government.  The Tshogdu(National Assembly) is composed of not more than 150 members:  105village elders or family heads, 12 representatives of regional monasticbodies, and 33 senior government administrators appointed by the king.Members are elected for 3-year terms.  Any Bhutanese over 25 years of agecan stand for election to the assembly.The late King Jigme Dorji Wangchuck, who reigned from 1952 to 1972,guided his country toward constitutional monarchy and helped modernizepublic administration.  He established the assembly in 1953, the RoyalAdvisory Council (Lodoi Tsokde) in 1965, and the Council of Ministers in1968.  The Lodoi Tsokde is responsible for advising the king andgovernment ministers on important questions and for supervising theimplementation of programs and policies legislated by the Tshogdu.  Itconsists of a chairman appointed by the king, five representatives of thepeople, two of the monastic hierarchy, two southern Bhutaneserepresentatives, and a women's representative.  The Council of Ministers,composed of the ministers (lyonpos) of the government departments, ischarged with implementing policy.The present monarch, Jigme Singye Wangchuck, took the throne in 1972and pledged to continue his father's progressive policies.  Under JigmeDorji the king was subject to a vote of confidence every 3 years, but thispractice was dropped by Jigme Singye.  Heads of governmentdepartments, however, are required to subject themselves and their policiesto the scrutiny of the Tshogdu at least once a year.The spiritual head of Bhutan, the Je Khempo--the only person besides theking who wears the saffron scarf, an honor denoting his authority over allreligious institutions--is nominated by monastic leaders and appointed bythe king.  The monastic order is involved in government at many levels.No political parties function within the Bhutanese governmental structure.Bhutan is divided into 18 districts, each headed by a district officer(dzongdad) appointed by the king.  Each district is divided into subdistrictsheaded by an officer called a ramjam, who is assisted by a number ofvillage leaders.  Each leader (gup) controls several villages and is electedfor 3 years by the villagers, who cast one vote per family.  The gupconvenes village meetings to discuss local issues.Principal Government OfficialsKing--His Majesty Jigme Singye WangchuckMinister of Communication and Social Services--His Excellency (HE) LyonpoTashi TobgyelMinister of Finance--Her Royal Highness (HRH) Princess Sonam ChhodenWangchuckMinister of Foreign Affairs--HE Lyonpo Dawa TseringMinister of Home--HRH Prince Namagel WangchuckMinister of Trade, Industry, and Tourism--HE Dasho Om PradanChairman of Royal Advisory Council--HE Kungang TangbiChief of Royal Bhutan Army and Police--Goongleon (Maj. Gen.) Lam DorjiECONOMYBhutan's economy is largely rural-based.  More than 90% of the work forceis employed in subsistence farming and animal husbandry.  Although theUnited Nations identifies Bhutan as "least developed," economic welfarelevels and nutrition are probably above the average for Asia.  There is noshortage of land, and farmland generally is equitably distributed.Once self-sufficient in food, Bhutan now imports about 7% of its foodgrainsfrom India.  Terrace agriculture is extensive; rice paddies can be found atelevations above 8,000 feet.  Fruits grown in the inner valleys and on theplains are processed for local consumption and export.The country has an abundance of untapped natural resources.  Theseconsist mainly of the vast forests, rivers with excellent hydroelectricpotential, and various minerals in commercially exploitable quantities.Bhutanese forest resources could sustain a net annual yield of about400,000 cubic meters.In 1988, about 28,000 cubic meters were harvested.  Preliminary estimatesindicate that Bhutan possesses a potential for generating 20,000 megawattsof hydroelectric power.  The Jaldhaka River power project, a jointBhutanese-Indian venture begun in September 1961, provides 18megawatts to West Bengal and southwestern Bhutan.  At Chukha, amodern hydroelectric facility, completed in 1988 with Indian assistance, nowproduces 336 megawatts.Bhutan's mineral resources include dolomite, limestone, coal, graphite,gypsum, slate, marble, lead, zinc, and copper.  Of these, only dolomite,limestone, slate, and coal have been mined.Bhutan's industrial sector consists mainly of home-based handicrafts andsome 60 privately owned small- or medium-scale factories producing mostlyconsumer goods.  Cement, plastic pipe, and calcium carbide factories havebeen built recently.  The cement factory, near Samchi, makes Bhutanself-sufficient in cement and produces a surplus for export.  Another factoryproduces plywood, particle board, and furniture components.  A ferrosiliconproduction plant and a marble mine are planned.In 1987, the government opened a number of public enterprises to privateequity participation or partial divestiture.  The government limits foreignparticipation to selected agro-industry projects or projects that generateforeign exchange and technology transfers.The use of Bhutanese and Indian currency is replacing barter as theprincipal means of exchange.  In 1968, the Bank of Bhutan became theprincipal repository of the national currency.  The bank's main office is inPhuntsholing on the Indian border, and there are 23 branches throughoutthe country.Traditionally, Bhutan traded with Tibet.  Since the abortive 1959 Tibetanuprising against China, Bhutan has channeled most of its trade towardIndia.  The Royal Monetary Authority provides the services needed toconduct foreign exchange operations.  The country's largest source ofconvertible foreign exchange (1988-89: $1.8 million) is tourism.  In 1988-89,Bhutan had a total trade deficit of about $67 million, of which $26 millionwas with India.  In the same year, India provided foreign aid grants toBhutan of almost $23 million.  Other countries provided about $4 million.In 1961, India agreed to finance Bhutan's first development plan.  Theoutlay for Bhutan's fifth plan (1981-87) was $364 million (at the 1987exchange rate).  Of this amount, India provided $156 million in grants, andother foreign sources provided $76 million.Bhutan's sixth plan (1981-87) envisaged a total outlay of $635 million (at the1988 exchange rate).  Of this amount, Bhutan expects to obtain 31% frominternal sources, 37% from Indian grants, and the rest from other externalsources.  Emphasis in the sixth plan is on strengthening governmentadministration, preserving national identity, mobilizing internal resources,improving rural incomes and living standards, developing human resources,and promoting national self-reliance.  Given the economy's increasingmanpower requirements, primary education and technical training receivehigh priority.In addition to foreign assistance from India, Bhutan receives support fromthe following sources: Colombo Plan, UN Development Program (UNDP),International Monetary Fund, World Bank, and the Asian Development Bank.India, Japan, New Zealand, Australia, and Switzerland provide scholarshipsfor Bhutanese to study in those countries.DEFENSEThe Royal Bhutan Army was formed into a regular military force in the early1950s, following the Chinese invasion of Tibet.  The army consists of about8,000 lightly armed troops.  Conscript forces serve up to 15 years at thegovernment's discretion.  The officer corps is trained almost exclusively bythe Indian army, and virtually all arms and equipment are manufactured inIndia.  The Royal Bhutan Army assists the Royal Bhutan Police in internalsecurity in addition to defending the country's frontiers.FOREIGN RELATIONSUnder the 1949 treaty between Bhutan and India, Bhutan agreed to "beguided by the advice" of India in foreign affairs.  Bhutan does not interpretthe treaty as binding.  In 1971, Bhutan opened an office in New Delhi tohandle diplomatic matters with other countries.  In the same year, withIndian sponsorship, it became a UN member.  In 1978, the Bhutanesemission in New Delhi was raised to embassy status.  Bhutan is now amember of most Asian regional and international organizations, includingthe South Asian Association for Regional Cooperation, Asian DevelopmentBank, Colombo Plan, Nonaligned Movement, World Bank, InternationalMonetary Fund, and the Universal Postal Union.Bhutan has full diplomatic relations with India, Pakistan, Bangladesh, Nepal,Maldives, Kuwait, Switzerland, Norway, Netherlands, Denmark, EuropeanEconomic Community, Sweden, Japan, Sri Lanka, and Thailand.  OnlyIndia, Bangladesh, and the UN Development Program have missions inBhutan.  Bhutan maintains embassies in India, Bangladesh, Kuwait, NewYork (UN), and Geneva.  It also maintains honorary consuls general inHong Kong, Macao, Singapore, and South Korea.No formal diplomatic relations exist between the United States and Bhutan,although informal and friendly contact is maintained through the Bhutaneseembassy at New Delhi, through occasional visits to Bhutan by US officialsstationed in India, and by Bhutanese visitors to the United States such asthe foreign minister.  In 1986, the Bhutanese UN mission in New York (tel.[phone]) was accorded consular jurisdiction in the United States.  TheUS Embassy in New Delhi provides consular contact with Bhutan.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  BELIZEPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Belize  PROFILEGeographyArea:  22,963 sq. km. (8,867 sq. mi.); slightly larger than Massachusetts.  Cities:  Capital--Belmopan (pop. 3,800).  Other city--Belize City (47,700).  Towns--Dangriga, Orange Walk, Corozal, Punta Gorda, San Ingacio, Santa Elena, and San Pedro.  Terrain:  Flat and swampy coastline, low mountains in interior.  Climate:  Hot and humid.PeopleNationality:  Noun and adjective--Belizean(s).  Population (1993 est.):  205,000.  Annual growth rate:  About 3%.  Ethnic groups:  Creole, Garifuna, mestizo, Amerindian.  Religions:  Roman Catholic, Anglican, Methodist, other Protestant, Muslim, Hindu, Buddhist.  Languages:  English (official), Creole, Spanish, Garifuna, Mayan.  Education:  Years compulsory--9.  Attendance--55%.  Literacy--75%.  Health:  Infant mortality rate--35/1,000.  Life expectancy--60 yrs.  Work force (65,000):  Agriculture, hunting, forestry, and fishing--33%.  Industry and commerce--33%.  Services--11.5%.  Other--22.5%.GovernmentType:  Parliamentary.  Independence:  September 21, 1981.  Constitution:  September 21, 1981.Branches:  Executive--British monarch (head of state), represented by a governor general; prime minister (head of government, five-year term).  Legislative--bicameral National Assembly.  Judicial--Supreme Court, Court of Appeal, district magistrates.Subdivisions:  Six districts.Political parties:  People's United Party (PUP), United Democratic Party (UDP), National Alliance for Belizean Rights (NABR).  Suffrage:  Universal adult.EconomyGDP (1993):  $414 million.Annual growth rate (1993):  4.3%.  Per capita income:  $2,073.  Avg. inflation rate (1993):  1.7%.Natural resources:  Arable land, timber, seafood, minerals.Agriculture (13.6% of GDP):  Products--sugar, citrus fruits and juices, bananas, mangoes, papayas, honey, corn, beans, rice, cattle.Industry (13.4% of GDP):  Types--clothing, fruit processing, beverages.Tourism (17.8% of GDP):  Visitor arrivals (1993 est.)--260,056.Trade (1993 est.):  Exports--$143 mil-lion:  sugar, clothing, citrus concentrate, lobster, fish, bananas, farmed shrimp.  Markets--U.S., U.K., CARICOM.  Imports--$284 million:  food, consumer goods, building materials, vehicles, machinery, petroleum products.  Suppliers--U.S., Mexico, U.K.Official exchange rate:  Since 1976, Belizean banks have bought U.S. dollars at the rate of 2.0175 and sold them at 1.9825, making for an effective fixed rate of Belize $2=U.S. $1. PEOPLEBelize is the most sparsely populated nation in Central America.  Slightly more than half of the people live in six urban areas, primarily along the coast.  About one-fourth live in Belize City, the former capital, commercial center, and principal port.  Population has increased dramatically in the last few years from the inflow of Central American refugees and other immigrants--estimated at 40,000 in 1993 and mostly from Guatemala and El Salvador--more than offsetting the heavy emigration of the Creole population to North America.Most Belizeans are of multiracial descent.  About 30% are of African and Afro-European (Creole) ancestry; 44% of the population is of mixed local Indian and European descent (mestizo); about 18% is composed of Afro-Amerindian (Garifuna), Mayan, or other Amerindian ethnic groups.  The remainder, about 8%, includes European, East Indian, Chinese, Middle Eastern, and North American groups.English, the official language, is spoken by virtually all except the most recently arrived refugees.  Spanish is the native tongue of about 50% of the people and is spoken as a second language by another 20%.  The various Indian groups still speak their original languages, and an English Creole dialect, similar to the Creole dialects of the English-speaking Caribbean islands, is spoken by most.  The rate of functional literacy is about 75%.  About 60% of the population are Roman Catholic; the Anglican Church and Protestant Christian groups account for most of the remaining 40%.  Mennonite settlers number about 7,400.HISTORYThe Mayan civilization spread into the area of Belize between 1500 BC and AD 300 and flourished until about AD 1000.  Several major archeological sites--notably Caracol, Lamanai, Labaantun, Altun Ha, and Xunantunich--reflect the advanced civilization and much denser population of that period.  European contact began in 1502 when Columbus sailed along the coast.  The first recorded European settlement was begun by shipwrecked English seamen in 1638.  Over the next 150 years, more English settlements were established.  This period also was marked by piracy, indiscriminate logging, and sporadic attacks by Indians and neighboring Spanish settlements.Great Britain first sent an official representative to the area in the late 18th century, but Belize was not formally termed the "Colony of British Honduras" until 1840.  It became a crown colony in 1862.  Subsequently, several constitutional changes were enacted to expand representative government.  Full internal self-government under a ministerial system was granted in January 1964.  The official name of the territory was changed from British Honduras to Belize in June 1973, and full independence was granted on September 21, 1981.GOVERNMENT AND POLITICAL CONDITIONSBelize is a parliamentary democracy on the Westminster model and is a member of the Commonwealth.  Queen Elizabeth II is head of state and is represented in the country by Governor General Dr. Colville N. Young, Sr., a Belizean and Belize's second governor general.  The primary executive organ of government is the cabinet, led by a prime minister (head of government).  Cabinet ministers are members of the majority political party in parliament and usually hold elected seats in the National Assembly concurrently with their cabinet positions.The National Assembly consists of a House of Representatives and a Senate.  The 29 members of the House are popularly elected to a maximum five-year term.  Of the Senate's eight members, five are elected by the prime minister, two by the leader of the opposition, and one by the governor general.Currently, the Belize Government is controlled by a coalition of the United Democratic Party (UDP) and the National Alliance for Belizean Rights (NABR), which won 16 of the 29 seats in the House of Representatives on June 30, 1993.  The People's United Party (PUP) won the other 13 seats.  The PUP had governed Belize from September 1989 until June 1993, and the UDP from December 1984 until September 1989.  Before 1984, the PUP had dominated the electoral scene for over30 years.Members of the independent judiciary are appointed.  The judicial system includes local magistrates, the Supreme Court, and the Court of Appeal.  Cases may, under certain circumstances, be appealed to the Privy Council in London.  The country is divided into six districts:  Corozal, Orange Walk, Cayo, Belize, Stann Creek, and Toledo.National SecurityThe Belize Defence Force (BDF), established in January 1973, consists of a light infantry force of regulars and reservists along with small air and maritime wings.  The BDF, currently under the command of Brigadier General Alan Usher, assumed total defense responsibility from departing British Forces Belize (BFB) on January 1, 1994.  The United Kingdom continues to maintain the British Army Training Support Unit Belize (BATSUP) to assist in the administration of the Belize Jungle School.  The BDF receives military assistance from the United States and the United Kingdom.Principal Government OfficialsHead of State--Queen Elizabeth IIGovernor General--Dr. Colville N. Young, Sr.Prime Minister, Minister of Finance and Defense--Manuel E. EsquivelDeputy Prime Minister, Minister of Foreign Affairs and Economic Development, and Attorney General--Dean O. BarrowAmbassador to the United States and the OAS--Dean LindoAmbassador to the United Nations--Edward LaingBelize maintains an embassy in the United States at 2535 Massachusetts Avenue NW, Washington, DC 20008 (tel.:  [phone]; fax:  [phone]).ECONOMYForestry was the only economic activity of any consequence in Belize until well into the 20th century, when the supply of accessible timber began to dwindle.  Sugar then became the principal export and recently has been augmented by expanded production of citrus, bananas, seafood, and apparel.  The country has about 809,000 hectares of arable land, only a small fraction of which is under cultivation.  To curb land speculation and promote agriculture, the government enacted legislation in 1973 that requires non-Belizeans to complete a development plan on land they purchase before obtaining title to plots of more than 10 acres of rural land or more than one-half acre of urban land.  Domestic industry is limited, constrained by relatively high-cost labor and energy and a small domestic market.  Tourism, though, is a booming industry.A combination of natural factors--climate, the longest barrier reef in the Western Hemisphere, numerous islands, excellent fishing, safe waters for boating, jungle wildlife, and Mayan ruins--support the thriving tourist business.  Development costs are high, but the Government of Belize has designated tourism as its second development priority after agriculture.  Visitors totaled 260,056 in 1993; the tourist industry is worth $50 million per year.  Government policy is to reserve tourism development which is less capital intensive for Belizeans, but it welcomes foreign investor interest in larger projects.Belize's well-established policy of encouraging new foreign investment has been an important factor in attracting capital.  Promising opportunities for growth and investment include citrus, bananas, beef, aquaculture, tropical fruits, forest, tourism, forest products, and apparel.  Belize is one of only two Central American countries that share a land border with Mexico, which is a member of NAFTA; this may help future efforts to attract foreign investment.The U.S. Agency for International Development (USAID) program aims to help Belize plan the best use of its resources in agriculture, forestry--including tropical forestry and biodiversity protection--and tourism.  It includes technical assistance and training in these areas to help the Government of Belize manage agriculture and tourism growth in a rational and ecologically sound manner.InfrastructureEconomic growth in Belize is constrained by a lack of infrastructure.  Electric service is expensive and unavailable in some rural areas.  No roads exist to large tracts of potentially arable land and timber.  Some roads, including sections of major highways, are subject to damage or closure during the rainy season.  Inadequate roads and ports limit external marketing, although expansion of port handling facilities has been undertaken in Belize City, and a new deep-water port has been completed in Big Creek to complement facilities in Belize City and Commerce Bight.  Barges and lighters are used for sugar, bananas, and other shipments.The government recognizes the need to develop the country and has budgeted $92 million in fiscal years 1994-95 for capital expenditure.  Much of the government's operating expenses are derived from customs duties and taxes, but most of the capital expenses are met through foreign assistance.  The Government of Belize, U.S. assistance projects, and other donors are working to improve the country's infrastructure.  USAID, the European Union (EU), and the United Kingdom have projects to upgrade the quality of the Belizean road system.  Steel and concrete bridges are being constructed to ensure year-round passage to remote portions of the country.  Rural electrification is moving forward, with the construction of a multi-million-dollar hydroelectric project by an American firm, and urban electric power is becoming more dependable. Under aid agreements with the United Kingdom and the Caribbean Development Bank, a new international airport terminal has been built and the runway lengthened.  A new water and sewer system has been completed in Belize City with the help of the Canadian International Development Agency, and the construction of a new 100-bed hospital for Belize City is currently underway with EU assistance.TradeBelize's economic performance is highly susceptible to external market changes.  Although outstanding growth has been achieved in recent years, the successes are vulnerable to world commodity price fluctuations and the continuation of trade preferences.  Belize consistently has had a substantial trade deficit, reaching $141 mil-lion in 1993.  The deficit is financed primarily by foreign aid, foreign investment, and remittances from Belizeans working in the United States.  Imports in 1993 totaled $284 million, while exports were only $143 million.  In 1992, the United States accounted for 58% of Belize's imports and 51% of exports.  Belize is the highest per capita importer of U.S. consumer-ready food products of any Central American country.  Other major trading partners are the European Union (14.7% of imports, of which the United Kingdom accounts for 8%), and Mexico (8.8% of imports).Belize aims to stimulate the growth of commercial agriculture through the Caribbean Community and Common Market (CARICOM).  However, Belizean trade with the rest of the Caribbean is limited compared to that with the United States and Europe.  The country is a beneficiary of the Caribbean Basin Initiative (CBI), a U.S. Government program to stimulate investment in Caribbean nations by providing duty-free access to the U.S. market for most Caribbean products.  Significant U.S. private investments in citrus and shrimp farms have been made in Belize under CBI.  U.S. trade preferences allowing for duty-free re-import of finished apparel cut from U.S. textiles have significantly expanded the apparel industry.  EU and U.K. preferences also have been vital for the expansion and prosperity of the sugar and banana industries.FOREIGN RELATIONSBelize's principal external concern has been the dispute involving the Guatemalan claim to Belizean territory.  This dispute originated in imperial Spain's claim to all "New World" territories west of the line established in the Treaty of Tordesillas.  Nineteenth-century efforts to resolve the problems led to later differences over interpretation and implementation of an 1859 treaty intended to establish the boundaries between Guatemala and Belize, then named British Honduras.  Guatemala contends that the 1859 treaty is void because the British failed to comply with all its economic assistance clauses.  Neither Spain nor Guatemala ever exercised effective sovereignty or control over the area.Negotiations proceeded for many years, including one period in the 1960s in which the U.S. Government sought unsuccessfully to mediate.  A 1981 trilateral (Belize, Guatemala, and the United Kingdom) "Heads of Agreement" was not implemented due to disagreements.  Thus, Belize became independent on September 21, 1981, with the territorial dispute unresolved.  Significant negotiations between Belize and Guatemala, with the United Kingdom as an observer, resumed in 1988.  Guatemala recognized Belize's independence in 1991, and diplomatic relations were established.  The Guatemalan claim remains unresolved, however.In order to strengthen its potential for economic and political development, Belize has sought to build closer ties with the Spanish-speaking countries of Central America to complement its historical ties to the English-speaking Caribbean states.  Belize already was a member of CARICOM, which was founded in 1973; in 1990, the country became a member of the Organization of American States (OAS).As a member of CARICOM, Belize strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994, and to the United Nations Mission in Haiti (UNMIH).U.S.-BELIZEAN RELATIONSThe United States and Belize traditionally have had close and cordial relations since they were established in the 1930s.  The United States is Belize's principal trading partner and major source of investment funds and is also home to the largest Belizean community outside Belize.  An estimated 35,000 Belizeans live in the United States.  Because Belize's economic growth and accompanying democratic political stability are important U.S. objectives in an often troubled region, Belize benefits from the Caribbean Basin Initiative.  Through its active USAID program, the United States is now the largest provider of economic assistance to Belize.  The Peace Corps has 43 volunteers in the country.  American investment and tourism are growing rapidly.  Excellent air and shipping links to the United States facilitate trade and travel.  Principal U.S. Embassy OfficialsAmbassador--George C. BrunoDeputy Chief of Mission--Gerard M. GallucciUSAID Director--Robert T. DakanPolitical Officer--John ConnerleyEconomic/Commercial Officer--Robert MerriganConsul--Michael SchimmelAdministrative Officer--Sylvie MartinezThe U.S. embassy is located in Belize City at the corner of Gabourel Lane and Hutson Street.  The mailing address is P.O. Box 286, Belize City, Belize, Central America; tel.:  [phone] from the U.S., or 77161 locally; fax to embassy:  011-501-2-30802/35321 (24-hour coverage).  (###)</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  BARBADOSPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  BarbadosPROFILEGeographyArea:  431 sq. km. (166 sq. mi.); about three times the size of Washington, DC.Cities:  Capital--Bridgetown.Terrain:  Flat, rising to a ridge in the center.Climate:  Tropical.PeopleNationality:  Noun and adjective--Barbadian(s); also "Bajan(s)."Population:  264,000.Average annual growth rate:  0.2%.Ethnic groups:  African 80%, mixed 16%, European 4%.Religions:  Anglican 70%, Roman Catholic, Methodist, Baptist, and Moravian.Language:  English.Education:  Attendance--primary school 100%, secondary school 93%.  Adult literacy--99%.Health:  Infant mortality rate (1993)--21/1,000.  Life expectancy--73 yrs. men, 75 yrs. women.Work force (124,800, 1992):  Commerce and tourism--25%.  Government--23%.  Manufacturing--11%.  Agriculture and fishing--6%.GovernmentType:  Parliamentary democracy; independent sovereign state within the Commonwealth.Independence:  November 30, 1966.Constitution:  1966.Branches:  Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), cabinet.  Legislative--bicameral parliament.  Judicial--magistrate's courts, Supreme Court (High Court and Court of Appeals), privy council.Subdivisions:  11 parishes and the city of Bridgetown.Political parties:  Democratic Labor Party, Barbados Labor Party, National Democratic Party.Suffrage:  Universal at 18.EconomyGDP (1993):  $1.64 billion.Real GDP growth rate:  1%.Per capita GDP:  $6,200.Average inflation rate:  1.1%.Natural resources:  Petroleum, limestone.Agriculture (8% of GDP):  Sugar accounts for 3.4% of GDP and 80% of arable land.Industry:  Manufacturing (10% of GDP)--food, beverages, textiles, paper, chemicals, fabricated products.  Services--tourism.Trade:  Exports--$194 million.  Major markets--CARICOM 31%, U.K. 17%, U.S. 13%.  Imports--$704 million.  Major suppliers--U.S. 34%, European Union 19% (U.K. accounts for 11% of all suppliers), CARICOM 16%, Japan 3%.Official exchange rate:  U.S. $1=BDS $2.  PEOPLEBarbados' population is about 80% African descent, 4% European descent, and 16% mixed.  About 70% of Barbadians are Anglican, and the rest mostly Roman Catholic, Methodist, Baptist, and Moravian.  There also are small Jewish and Muslim communities.  Barbados' population growth rate has been very low--less than 1% since the 1960s--largely due to family planning efforts and a high emigration rate.HISTORYBritish sailors who landed on Barbados at the site of present-day Holetown in 1624 or 1625 found it uninhabited.  Arawak Indians may have been native to the island but were later annihilated--apparently by marauding Caribs, who are believed to have subsequently abandoned the island.From the arrival of the first British settlers in 1627-28 until independence in 1966, Barbados was under uninterrupted British control.  Nevertheless, Barbados always enjoyed a large measure of local autonomy.  Its House of Assembly, which began meeting in 1639, is the third-oldest legislative body in the Western Hemisphere--preceded only by Bermuda's legislature and the Virginia House of Burgesses.As the sugar industry developed into the main commercial enterprise, Barbados was divided into large plantation estates.  To work these plantations, slaves were brought from Africa; the slave trade ceased a few years before the abolition of slavery throughout the British Empire in 1834.Local politics were dominated by a group of British plantation owners and merchants.  It was not until the 1930s that a movement for political rights was begun by the descendants of emancipated slaves.  One of the leaders of this movement, Sir Grantley Adams, founded the Barbados Labor Party in 1938.Progress toward more democratic government for Barbados was made in 1951, when universal adult suffrage was introduced.  This was followed by steps toward increased self-government, and in 1961, Barbados achieved internal autonomy.From 1958 to 1962, Barbados was one of 10 members of the West Indies Federation, and Sir Grantley Adams served as its first and only prime minister.  When the federation was terminated, Barbados reverted to its former status as a self-governing colony.  Following several attempts to form another federation composed of Barbados and the Leeward and Windward Islands, Barbados negotiated its own independence at a constitutional conference with the United Kingdom in June 1966.  After years of peaceful and democratic progress, Barbados became an independent state within the British Commonwealth on November 30, 1966.GOVERNMENTUnder its constitution, Barbados is a parliamentary democracy modeled on the British system.  The governor general represents the British crown.  Control of the government rests with the cabinet--headed by the prime minister--which is responsible to the parliament.The bicameral parliament consists of the House of Assembly and Senate.  The 28 members of the House are elected by universal suffrage to five-year terms.  Elections may be called at any time it wishes to seek a new mandate or if the government suffers a vote of no confidence in parliament.  The Senate's 21 members are appointed by the governor general--12 with the advice of the prime minister, two with the advice of the leader of the opposition, and seven at the governor general's discretion.Barbados has an independent judiciary composed of magistrate courts, which are statutorily authorized, and a Supreme Court, which is constitutionally mandated.  The Supreme Court consists of the high court and the court of appeals, each with four judges.  The Chief Justice serves on both the high court and the court of appeals.  The court of last resort is the Judicial Committee of Her Majesty's Privy Council, whose decisions are binding on all parties.  Judges of the Supreme Court are appointed by the governor general on the recommendation of the prime minister after consultation with the leader of the opposition.The island is divided into 11 parishes and the city of Bridgetown.  There is no local government; all divisions are administered by the central government.  Barbados' defense expenditures account for about 2.5% of the government budget.POLITICAL CONDITIONSThe three political parties--the Barbados Labor Party (BLP), the Democratic Labor Party (DLP), and the National Democratic Party (NDP)--all are moderate and have no real ideological differences; electoral contests and political disputes often have personal overtones.  The major political problems facing Barbados today are in promoting economic growth:  creating jobs, encouraging agricultural diversification, attracting small industry, and promoting tourism.In parliamentary elections held on September 6, 1994, the BLP won a decisive victory over the outgoing DLP and the government of Erskine Sandiford.  The BLP won 19 seats to the DLP's eight; one seat went to the NDP.  The new Prime Minister, 44-year-old economist Owen Arthur, has brought new faces and new economic theories to his government.Principal Government OfficialsHead of State--Queen Elizabeth IIGovernor General--Dame Nita BarrowPrime Minister--Owen ArthurAmbassador to the U.S. and the OAS--Dr. Rudi WebsterAmbassador to the UN--Besley MaycockBarbados maintains an embassy in the United States located at 2144 Wyoming Avenue, NW, Washington, DC  20008 (tel. [phone]) and a consulate general in New York City at 800 2nd Avenue, 18th floor, New York, NY 10017 (tel. [phone]).ECONOMYAfter three years of steady decline brought on by fundamental macro-economic imbalances that had begun to emerge in the 1980s, Barbados in 1993 experienced a real growth rate of nearly 1%.  This trend continued into the first half of 1994, with an increase in GDP of 3.8%.  Most of the growth was in the domestic sector--with the exception of tourism revenues, which grew at an estimated 14%.  The number of visitors from the U.S. declined slightly but still constituted the largest share (29%) of that market.Contributing to this improved economic picture were stringent measures taken in 1991-93 under a significant, albeit not yet completed, International Monetary Fund (IMF) structural adjustment program.  In addition, a tripartite social compact among government, labor, and the private sector in 1993 served to stabilize prices and wages, holding inflation to an estimated 1.1%.The exchange rate was steady at U.S. $1=BDS $2.  As Barbados made a concerted effort to increase debt payments, its foreign debt declined for the third year in a row.  The national debt, though, increased by 18% to $1.13 billion at the end of 1993, as a greater share of public expenditure was financed locally.Traditionally, sugar was Barbados' largest industry, but in recent years, tourism and light industry have overtaken it.  Sugar production declined for the third consecutive year in 1993--to 48,500 metric tons--as new management was brought in to reverse the trend.  Estimates for the 1994 crop are 50,000 metric tons.  Export earnings from sugar--all is sold to the U.K.--fell by 15% to $28.4 million.Unemployment increased to 25% at the end of 1993, making job creation a central issue in the political campaign of 1994.FOREIGN RELATIONSAs a small nation, the primary thrust of Barbados' diplomatic activity has been within international organizations.  The island is a member of the Commonwealth and participates in all its activities.  Barbados was admitted to the United Nations in December 1966.  Wishing to participate fully in the inter-American system, it joined the Organization of American States (OAS) in 1967 and the Association of Caribbean States (ACS) on July 25, 1994.On July 4, 1973, Barbados, Trinidad and Tobago, Guyana, and Jamaica signed a treaty in Trinidad to found the Caribbean Community and Common Market (CARICOM).  In May 1974, most of the remaining English-speaking Caribbean states joined CARICOM, which now has 13 members.  Barbados is also a member of the Caribbean Development Bank, established in 1970 with headquarters in Bridgetown.As a member of CARICOM, Barbados strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.Barbados has diplomatic missions headed by resident ambassadors or high commissioners in Canada, the U.K., the U.S., and Venezuela and at the European Union (Brussels) and the UN.  It also has resident consuls general in Toronto, Miami, and New York City.  Brazil, Cuba, Canada, Columbia, Costa Rica, China, the U.K., the U.S., and Venezuela have ambassadors or high commissioners resident in Barbados.U.S.-BARBADIAN RELATIONSIn 1751, George Washington visited Barbados, making what is believed to have been his only trip abroad.  The U.S. Government has been represented on Barbados since 1824.As a relatively high-income country, Barbados receives only limited economic assistance from the United States.  The U.S. supports economic development programs regionally that benefit Barbados and encourages full participation in the Caribbean Basin and Enterprise for the Americas Initiatives.  The CARICOM nations, including Barbados, have signed a framework agreement with the United States to promote trade and investment in the region.Principal U.S. Embassy OfficialsAmbassador--Jeanette W. HydeDeputy Chief of Mission--Tain P. TompkinsPolitical/Economic Counselor--Thomas R. HutsonConsul General--Dale ShafferRegional Labor Attache--Peggy ZabriskieEconomic-Commercial Officer--Carole JacksonPublic Affairs Officer--Tyrone KempUSAID Regional Director--Mosina JordanPeace Corps Director--James Scanlon (resident in St. Lucia)The U.S. embassy in Barbados is located in the Canadian Imperial Bank of Commerce Building, Broad Street, Bridgetown (tel:  [phone]; fax:  [phone]).   (###)</text>
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        <text>BACKGROUND NOTES:  BANGLADESHPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEDECEMBER 1992Official Name:  People's Republic of BangladeshPROFILEGeographyArea:  143,998 sq. km. (55,813 sq. mi., about the size ofWisconsin).  Cities: Capital--Dhaka (pop. 7 million).  Othercities--Chittagong (2.8 million), Khulna (1.8 million), Rajshahi(1 million).  Terrain:  Mainly flat alluvial plain, with hills inthe southeast.  Climate:  Semitropical, monsoon.PeopleNationality:  Noun and adjective--Bangladeshi(s).  Population(1991):  116 million.  Annual growth rate:  2.4%.  Ethnic groups:Bengali 98%, tribals, non-Bengali Muslims.  Religions:  Muslim83%; Hindu 16%; Christian, Buddhist, others 1%.  Languages:Bangla (official, also known as Bengali), English.  Education:Attendance--73% (primary school), 26% (secondary school).Literacy--47% for males; 22% for females.  Health (1991): Lifeexpectancy--54 yrs. male, 52 yrs. female.  Work force (35million):  Agriculture--74%.  Services--15%.  Industry--11%.GovernmentType:  Parliamentary democracy.  Independence (in present form):1971.  Constitution:  1972 (as amended).Branches:  Executive--prime minister, president.Legislative--unicameral parliament (330 members).Judicial--civil court system on British model.Administrative subdivisions:  divisions, districts, subdistricts,unions, villages.Political parties:  30-40 active political parties.  Only 4parties have more than 10 members in the current parliament:  theBangladesh Nationalist Party (BNP), the Awami League (AL), theJamaat-E-Islami (JI), and the Jatiyo Party (JP).  Suffrage:Universal at 18.Flag:  Red circle on dark green field.EconomyGDP (1991):  $23 billion.  Real annual growth rate (1991):  3.6%.Per capita GDP:  $198.Natural resources:  Natural gas, water.Agriculture (37% of GDP):  Products--rice, jute, tea, sugar,wheat.Industry (17% of GDP):  Types--jute goods, garments, frozenshrimp, textiles, fertilizer, sugar, tea, leather, metalre-processing, pharmaceuticals, newsprint.Trade (1991):  Exports--$1.7 billion:  ready-made garments, jutegoods, leather, frozen fish, shrimp, raw jute, tea.  Exports toUS (1991 est.)--$515 million.  Imports--$3.5 billion:  capitalgoods, foodgrains, petroleum, consumer goods, fertilizer,chemicals, vegetable oils, textiles.  Imports from US (1991est.)--$140 million.Official exchange rate  (1992): Taka 39=US$1.PEOPLEBangladesh, or "Bengal Nation," is the most densely populatedagricultural country in the world.  With a per capita grossdomestic product of $198 (1991), it is also one of the poorest.Bangladesh's 116 million people are concentrated in an area aboutthe size of Wisconsin.  Its population growth rate is currentlyestimated at 2.4% annually; a conservative estimate projects apopulation of 140 million by the year 2000.  At present, 44% ofthe population is under 15 years of age.  Urbanization isproceeding rapidly, and it is estimated that only 30% of thepopulation entering the labor force in the future will beabsorbed into agriculture, although many will likely find otherkinds of work in rural areas.  The areas around the capital city,Dhaka, and around Comilla are the most densely settled.  TheSundarbans, an area of thick tropical jungle inland from thecoastline on the Bay of Bengal, and the Chittagong Hill Tracts onthe southeastern border with Burma and India, are the leastdensely populated areas.About 98% of Bangladeshis are ethnic Bengali and speak Bangla.Urdu-speaking, non-Bengali Muslims of Indian origin and varioustribal groups, mostly in the Chittagong Hill Tracts, comprise theremainder.  Most Bangladeshis (about 83%) are Muslims, but Hindusconstitute a sizable (16%) minority.  There are also a smallnumber of Buddhists, Christians, and animists.  English is spokenin urban areas and among the educated.HISTORYThe area which is now Bangladesh has a rich historical andcultural past, the product of the repeated influx of variedpeoples, bringing with them the Dravidian, Indo-Aryan,Mongol-Mughul, Arab, Persian, Turkic, and European cultures.About 1200 A.D., Muslim invaders under Sufi influence, supplantedHindu and Buddhist dynasties, and converted most of thepopulation of the eastern areas of Bengal to Islam.  Since then,Islam has played a crucial role in the region's history andpolitics.  In the 16th century, Bengal was absorbed into theMughul Empire.Portuguese traders and missionaries reached Bengal in the latterpart of the 15th century.  They were followed by representativesof the Dutch, the French, and the British East India Companies.During the 18th and 19th centuries, especially after the defeatof the French in 1757, the British gradually extended theircommercial contacts and administrative control beyond Calcuttainto the remainder of Bengal and northwesterly up the GangesRiver valley.  In 1859, the British Crown replaced the East IndiaCompany, extending British dominion from Bengal in the east tothe Indus River in the west.In the late 19th and early 20th centuries, Muslim and Hinduleaders began to press for a greater degree of independence.  Atthe movement's forefront was the largely Hindu Indian NationalCongress.  Growing concern about Hindu domination of the movementled Muslim leaders to form the All-India Muslim League in 1906.In 1913, the League formally adopted the same goal as the IndianNational Congress:  self-government for India within the BritishEmpire.  The Congress and the League were unable, however, toagree on a formula to ensure the protection of Muslim religious,economic, and political rights.  Over the next 2 decades,mounting tension between Hindus and Muslims led to a series ofbitter intercommunal conflicts.Pakistan and PartitionThe idea of a separate Muslim state emerged in the 1930s.  Itgained popularity among Indian Muslims after 1936, when theMuslim League suffered a decisive electoral defeat in the firstelections under the 1935 constitution.  On March 23, 1940,Muhammad Ali Jinnah, leader of the Muslim League, publiclyendorsed the "Pakistan Resolution" that called for the creationof an independent state in regions where Muslims were a majority.At the end of World War II, the United Kingdom, underconsiderable international pressure to reduce the size of itsoverseas empire, moved with increasing urgency to grant Indiaindependence.  The Congress Party and the Muslim League couldnot, however, agree on the terms for drafting a constitution orestablishing an interim government.  In June 1947, the UKdeclared it would grant full dominion status to two successorstates--India and Pakistan.  Pakistan would consist of thecontiguous Muslim-majority districts of western British India,plus parts of Bengal.  The various princely states could freelyjoin either India or Pakistan.  These arrangements resulted in abifurcated Muslim nation separated by more than 1,600 kilometers(1,000 mi.) of Indian territory.  West Pakistan comprised fourprovinces and the capital, Lahore.  East Pakistan was formed of asingle province.  Each province had a legislature.East and West PakistanPakistan's history for the next 26 years was marked by politicalinstability and economic difficulties.  Dominion status wasrejected in 1956 in favor of an "Islamic Republic within theCommonwealth."  Attempts at civilian political rule failed, andthe government imposed martial law between 1958 and 1962 and 1969and 1972.  Frictions between West and East Pakistan culminated ina 1971 army crackdown against the East Pakistan dissidentmovement led by Sheikh Mujibur Rahman, whose Awami League (AL)Party had won 167 seats out of 313 National Assembly seats on aplatform of greater autonomy for the eastern province.Mujibur Rahman was arrested and his party banned.  Many of hisaides and more than 1 million Bengali refugees fled to India,where they established a provisional government.  India andPakistan went to war in late November 1971.  The combinedIndian-Bengali forces soon overwhelmed Pakistan's small armycontingent in the East.  By the time Pakistan's forcessurrendered on December 16, 1971, India had taken numerousprisoners and gained control of a large area of East Pakistan,which is now Bangladesh.BangladeshSheikh Mujibur Rahman.  Mujib came to office with immensepersonal popularity but had difficulty quickly transforming thissupport into political legitimacy.  The 1972 constitution createda strong prime ministership, an independent judiciary, and aunicameral legislature on a modified British model.  Moreimportantly, it enunciated as state policy the Awami League'sfour basic principles--nationalism, secularism, socialism, anddemocracy. The Awami League won a massive majority in the firstparliamentary elections in March 1973.  It continued as a massmovement, espousing the cause that brought Bangladesh into beingand representing disparate and often incoherent elements underthe banner of Bangla nationalism.  No other political party inBangladesh's early years was able to duplicate or challenge itsbroad-based appeal, membership, or organizational strength.The new government focused on relief, rehabilitation, andreconstruction of the country's war-ravaged economy and society.Economic conditions remained tenuous, however, and food andhealth difficulties continued to be endemic.  In 1974, Mujibproclaimed a state of emergency and amended the constitution tolimit the powers of the legislative and judicial branches,establish an executive presidency, and institute a one-partysystem.  Calling these changes the "Second Revolution," Mujibassumed the presidency.  All political parties were dissolvedexcept for a single new party, the Bangladesh Krishak SramikAwami League (BAKSAL), which all members of parliament wereobliged to join.Implementation of promised political reforms was slow, and Mujibincreasingly was criticized.  In August 1975, he was assassinatedby mid-level army officers, and a new government, headed by aformer associate, Khandakar Moshtaque, was formed.  Successivemilitary coups occurred on November 3 and 7, resulting in theemergence of Army Chief of Staff Gen. Ziaur Rahman (Zia), asstrongman.  He pledged the army's support to the civiliangovernment headed by the president, Chief Justice Sayem.  Actingat Zia's behest, Sayem then promulgated martial law, naminghimself Chief Martial Law Administrator (CMLA).Ziaur Rahman.  Ziaur Rahman was elected for a 5-year term aspresident in 1978.  His government removed the remainingrestrictions on political parties and encouraged oppositionparties to participate in the pending parliamentary elections.More than 30 parties vied in the parliamentary elections ofFebruary 1979, but Zia's Bangladesh Nationalist Party (BNP) won207 of the 300 elected seats.In 1981, Zia was assassinated by dissident elements of themilitary.  Vice President Justice Abdus Sattar wasconstitutionally sworn in as acting president.  He declared a newnational emergency and called for elections within 6 months.Sattar was elected president and won.  Sattar was ineffective,however, and Army Chief of Staff, Lt. Gen. H.M. Ershad assumedpower in a bloodless coup in March 1982.Hussain Mohammed Ershad.  Like his predecessors, Ershad dissolvedparliament, declared martial law, assumed the position of CMLA,suspended the constitution, and banned political activity.Ershad reaffirmed Bangladesh's moderate, non-aligned foreignpolicy.In December 1983, he assumed the presidency.  Over the ensuingmonths, Ershad sought a formula for elections while dealing withpotential threats to public order.On January 1, 1986, full political rights, including the right tohold large public rallies, were restored.  At the same time, theJatiyo (People's) Party (JP), designed as Ershad's politicalvehicle for the transition from martial law, was established.Ershad resigned as chief of army staff, retired from militaryservice, and was elected president in October 1986.  (Both theBNP and the AL refused to put up an opposing candidate.)In July 1987, the opposition parties united for the first time inopposition to government policies.  Ershad declared a state ofemergency in November, dissolved parliament in December, andscheduled new parliamentary elections for March 1988.All major opposition parties refused to participate.  Ershad'sparty won 251 of the 300 seats; three other political partieswhich did participate, as well as a number of independentcandidates, shared the remaining seats.  This parliament passed alarge number of legislative bills, including a controversialamendment making Islam the state religion.By mid-1990, opposition to Ershad's  rule had escalated.November and December 1990 were marked by general strikes,increased campus protests, public rallies, and a generaldisintegration of law and order.  Ershad resigned in December1990.GOVERNMENTOn February 27, 1991, an interim government oversaw what may bethe most free and fair elections in the nation's history.  Thecenter-right Bangladesh Nationalist Party won a plurality ofseats and formed a coalition government with the Islamicfundamentalist party Jamaat-e-Islami (JI).The new Prime Minister, Begum Khaleda Zia, was the widow of theassassinated former president Ziaur Rahman.  Before the death ofher husband in 1981, her participation in politics was minimal.She joined the BNP in 1982 and became chairman of the party in1984.  Besides presently serving as Prime Minister, she holds theDefense and Establishment ministries.In September 1991, the electorate approved changes to theconstitution, formally creating a parliamentary system andreturning governing power to the office of the prime minister, asin Bangladesh's original constitution.  In October 1991, membersof parliament elected a new head of state, President Abdur RahmanBiswas.Principal Government OfficialsPrime Minister--Begum Khaleda ZiaPresident (head of state)--Abdur Rahman BiswasForeign Minister--Mustafizur RahmanAmbassador to the United States--Abul AhsanAmbassador to the United Nations--Humayun KabirBangladesh maintains an embassy in the United States at 2201Wisconsin Avenue, NW, Washington, DC  20007 (tel. [phone];fax. [phone]) and a consulate general at the BangladeshMission to the United Nations, 821 UN Plaza, New York, NY  10017(tel. [phone]).ECONOMYAs one of the world's poorest and most densely populatedcountries, Bangladesh  struggles constantly to produce or importenough food for its rapidly increasing population.  An estimated10-15% of the population is at serious nutritional risk; themajority faces food insecurity.  Bangladesh's predominantlyagricultural economy depends heavily on an erratic monsoonalcycle, which leads to periodic flooding and drought.  Althoughimproving, Bangladesh's transportation, communications, and powersystems are poorly developed.  Bangladesh has virtually nomineral resources except for an estimated 17 trillion cubic feetof proven natural gas reserves (which meets two-thirds ofBangladesh's commercial energy needs); coal reserves estimated at250 million metric tons in the northwest; and estimated oilreserves of 7.5 million barrels.  It has a weak industrial baseand a largely unskilled labor force.At its founding in 1971, Bangladesh, with the help of massiveinfusions of donor relief and development aid, slowly began toturn its attention again to developing new industrial capacityand rehabilitating its economy.  The statist economic modeladopted by its early (Pakistani and Bangladeshi) leadership,however, including the nationalization of the key jute industry,had resulted in inefficiency and economic stagnation.  Beginningin 1975, the government gradually increased private sectorparticipation in the economy, including privatization of morethan 30 state enterprises.  However, rapid population growth,inefficiency in the public sector, and restricted naturalresources and capital hindered development.In the mid-1980s encouraging, if halting, signs of progressappeared.  Economic policies to encourage private enterprise andinvestment, denationalize public industries (including jute,textiles, and banking), reinstate budgetary discipline, andliberalize the import regime were accelerated.  In 1985, thegovernment also began an economic structural adjustment programwith the International Monetary Fund.Economic reform efforts have continued under the Zia Government.Inflation fell in 1992 to an estimated 5%--down from 8% in 1991.Foreign exchange reserves ($1.5  billion in May 1992) are higherthan had been expected, because of improving export performanceand continued high levels of remittances from overseas workers.The exchange rate has remained generally stable, although thetaka was devalued by about 8% in 1991 to compensate for theeffect of inflation.  The new government has improved revenuecollection by means of a value-added tax.On the other hand, privatization of public-sector industriescontinues at a slow pace, due in part to worker unrest inaffected industries.  The government also has proven unable toresist demands for wage hikes in government-owned industries.Growth has been slowed by an antiquated banking system which hasimpeded access to capital, a serious problem in rural areas,where many farmers have difficulty getting access to credit atreasonable rates.AgricultureMost Bangladeshis earn their livings directly or indirectly fromagriculture.  Rice and jute are the primary crops; wheat isassuming greater importance; and tea is grown in hilly regions ofthe northeast.  Bangladesh's fertile soil and normally amplewater supply yield three rice crops in many areas.  Throughbetter flood control and irrigation measures, more intensive useof fertilizers and high-yielding seed varieties, increased priceincentives, and improved distribution and rural credit networks,Bangladesh's labor-intensive agricultural sector has achievedsteady increases in foodgrain production.  Foodgrain productionin 1992 was about 20 million metric tons, a 5% increase over theprevious year.  Rice is Bangladesh's principal crop, althoughyields per hectare are among the lowest in Asia.  While riceoutput rose 3.2% in 1992, much recent growth in foodgrain outputcan be attributed to the irrigated spring crop, which hasincreased steadily due to the greater availability of fertilizerand irrigation equipment.  Wheat production also is expected torise from 900,000 to about 1 million metric tons in 1992.  Jute,which historically has accounted for the bulk of Bangladesh'sexport receipts, faces an uncertain future due to competitionfrom synthetic fiber substitutes.  Fishing, especially forshrimp, has become an increasingly important source of exportearnings.Overpopulation and underemployment remain serious problems, andfinding alternative sources of employment for landless peasantsis a continuing challenge.IndustryAlthough small, the industrial sector contributes significantlyto export receipts; it also provides employment and a market forcash crops.  Jute products--mainly burlap sacking and carpetbacking for export--and cotton textiles for domestic consumptionpredominate.  Since the early 1980s production of ready-madegarments for the US market has grown rapidly.  Bangladesh is thefifth largest supplier of cotton apparel to the United States,and it has begun exporting  to West European markets.  Breakingup ships for scrap, using methods that are highly laborintensive, now meets most of Bangladesh's domestic steel needs.Other industries include sugar, tea, leather goods, newsprint,pharmaceuticals, and fertilizer production.  The industrial (andforeign exchange) impact of the discovery of modest reserves ofoil in 1986 remains to be assessed.The government continues to court foreign investment.  To thisend, the United States and Bangladesh signed a bilateralinvestment treaty which took effect in 1989.  Bangladesh also hasestablished an export processing zone (EPZ) in Chittagong andplans to create additional zones.  The government has offeredspecial incentives and simplified procedures for potentialinvestors.Aid and TradeSince independence in 1971, Bangladesh has received more than $22billion in grant aid and loan commitments from foreign donors,about $15 billion of which has been disbursed.  Major donorsinclude the World Bank, the Asian Development Bank, the UNDevelopment Program, the United States, Japan, Saudi Arabia,  anda number of West European countries.  As of 1991, the UnitedStates had provided more than $3.3 billion in food anddevelopment assistance.  Food aid provides food, promotesproduction, and helps stabilize prices.  Other US programs targetfamily planning and health, agricultural development, and ruralunemployment.  In 1991, the US forgave Bangladesh $293 million ofdevelopment assistance debt.Bangladesh historically has run a large trade deficit, about $1.5billion annually during the late 1980s.  This was financedlargely through foreign assistance.  The balance of paymentsswung into surplus in 1990-91 because of increased exports ofgarments and depressed domestic demand for imports.  In recentyears, remittances from workers in the Middle East have beenBangladesh's most important source of foreign exchange earnings.The US trade balance with Bangladesh has been negative since1986, due largely to  imports of ready-made garments.  Jutecarpet backing is the other major US import.  US exports toBangladesh include wheat, fertilizer, cotton, communicationsequipment, and aircraft and medical supplies, some of which isfinanced by the US Agency for International Development (USAID).DEFENSEThe 100,000-member, 6-division army is organized along Britishlines.  It is supported by artillery, armor, and combat units.In addition to traditional defense roles, the army has beencalled on to provide support to civil authorities for internalsecurity.Recognition of economic and fiscal constraints has led to theestablishment of paramilitary and auxiliary forces.  In additionto in-country military training, some advanced and technicaltraining is done abroad, including grant aid training in theUnited States.  China and Pakistan are major defense suppliers toBangladesh.FOREIGN RELATIONSBangladesh pursues a moderate foreign policy, emphasizingmultinational diplomacy, especially at the United Nations.Bangladesh was admitted to the United Nations in 1974 and servedon the Security Council in 1978.  Dhaka actively  participates ininternational conferences, especially those dealing withpopulation, food, and development issues.  In 1982-83, Bangladeshchaired the "Group of 77," an informal association encompassingmost of the world's developing nations.Since 1975, Bangladesh has sought close relations with otherIslamic states and friendly relations with the Association ofSoutheast Asian Nations (ASEAN).  In 1983, it hosted the foreignministers meeting of the Organization of the Islamic Conference(OIC).  It contributed 2,300 troops to the Gulf war coalition in1991 and has taken a leading role in the Group of 42 LeastDeveloped Countries.Other NationsIndia.  India is Bangladesh's most important neighbor;geographic, cultural, historic, and commercial ties are strong.During and immediately after the Bangladesh independence strugglein 1971, India supported the East Bengali nationalists, assistedrefugees from East Pakistan, intervened militarily to help bringabout the independence of Bangladesh, and furnished relief andreconstruction aid.Indo-Bangladesh relations have not been without strains.Long-standing transborder water resource issues are contentiousissues, particularly control of river flooding and the equitabledivision of dry-season water on which both countries' economiesdepend.  A bilateral water-sharing agreement for the Ganges Riverlapsed in 1988 and has not been renewed.  Both nations have,however, begun to cooperate on the issue of flood warning andpreparedness.  Discussions on the return to Bangladesh of tribalrefugees, who fled into India beginning in 1986 to escapeviolence caused by an insurgency in their homeland in theChittagong Hill Tracts, continue as well.Pakistan.  Bangladesh enjoys warm relations with Pakistan,despite the inauspicious early days of their relationship.Landmarks in their reconciliation are:-- An August 1973 agreement between India and Pakistan onrepatriation, including 90,000 Pakistani prisoners of warstranded in 1971;--  A February 1974 accord by Dhaka and Islamabad on mutualrecognition (followed more than 2 years later by establishment offormal diplomatic relations);--  The organization by the UN High Commissioner for Refugees ofan airlift that moved almost 250,000 Bengalis from Pakistan toBangladesh and non-Bengalis from Bangladesh to Pakistan; and--  Exchanges of high-level visits, including a visit by theformer Prime Minister of Pakistan, Benazir Bhutto, to Bangladeshin 1989 and a visit by Prime Minister Zia to Pakistan in 1992.Still to be resolved are the division of assets from the pre-1971period and the status of more than 250,000 non-Bengali Muslims(known as "Biharis" or "stranded Pakistanis") remaining inBangladesh but seeking resettlement in Pakistan.Other South Asian Countries.Bangladesh maintains friendly relations with Bhutan, Maldives,Nepal, and Sri Lanka.  It strongly opposed the Soviet invasion ofAfghanistan.  Dhaka played an instrumental role in theestablishment of SAARC, and at the Bangalore summit in November1986, Abul Ahsan, now Ambassador to the US, was chosen theorganization's first Secretary General.  Bilateral ties withBurma are also good, despite border strains near the ChittagongHill tracts and a recent influx of over 270,000 Muslim refugeesfrom predominantly Buddhist Burma.Russia.  The former Soviet Union supported India's actions duringthe 1971 Indo-Pakistan war and was among the first to recognizeBangladesh.  Moscow initially contributed considerable relief andrehabilitation aid to the new nation.  After Sheikh Mujib wasassassinated and replaced by military regimes, however,Soviet-Bangladesh relations cooled.  In 1989, the USSR ranked14th among total aid donors to Bangladesh.  The Soviet-financedGhorasal thermal power station is Bangladesh's largest electricpower station.  Several barter trade agreements have been allowedto lapse since the dissolution of the Soviet Union in 1991.Bangladesh cautiously began to open diplomatic relations with theCentral Asian states in the spring of 1992.China.  China traditionally has been more important to Bangladeshthan the former USSR.  Since China recognized Bangladesh in 1975,relations have centered on trade, cultural activities, militaryand civilian aid, and exchanges of high-level visits, beginningin January 1977 with President Zia's trip to Beijing.  Thelargest and most visible symbol of bilateral amity is theBangladesh-China "Friendship Bridge" completed in 1989, nearDhaka.US-BANGLADESH RELATIONSAlthough the US relationship with Bangladesh was initiallyconstrained due to strong US ties with Pakistan, US-Bangladeshfriendship and support developed quickly.  Currently,US-Bangladesh relations are excellent, as demonstrated by thevisits to Washington in August 1980 by President Zia, in 1983,1988, and 1990 by President Ershad, and in May 1992 by PrimeMinister Khaleda Zia.  US policies have focused primarily onefforts to promote Bangladesh's economic development and thestrength of its democratic institutions.This US economic aid program totaled about $133 million in 1992(1972-91 the US provided more than $3.3 billion).  In addition tosymbolizing long-standing American humanitarian concern for thepeople of Bangladesh, US economic and food aid programs, whichbegan as emergency relief following the 1971 war, now concentrateon long-term development.  Objectives of US assistance includeincreasing agricultural production, providing new employmentopportunities, and helping reduce population growth.Relations between Bangladesh and the United States were furtherstrengthened by the participation of Bangladeshi troops in theGulf war coalition, and the assistance of a US naval task forceis credited with having saved as many as 200,000 lives after adisastrous cyclone in March 1991.Principal US OfficialsAmbassador--William B. MilamDeputy Chief of Mission--Lee O. ColdrenPolitical Counselor--Jeffrey J. LunsteadEconomic/Commercial Counselor--Philip CarterAdministrative Counselor--Allan V. EllsburyConsular Officer--Edward J. WehrliAID Director--Mary KilgourPublic Affairs Officer--Michael KorffDefense Attache--LTC Steven R. RobinsonAgricultural Attache--Daniel Conable (Resident in New Delhi)</text>
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        <text>BAHRAIN BACKGROUND NOTES, NOVEMBER 1991PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATENOVEMBER 1991PROFILEGeographyArea:  693 sq. km. (268 sq. mi.); about four times the size ofWashington, DC.  Bahrain is an archipelago consisting of 33 islands,only 5 of them inhabited.  Cities:  Capital--Manama (pop. 122,000--1985est.).  Other city--Al Muharraq.  Terrain:  Low interior plateau andhill on main island.  Climate:  Hot and humid from April-October,temperate from November-March.PeopleNationality:  Noun and adjective--Bahraini(s).  Population (1989 est.):500,000 (66% indigenous).  Ethnic groups:  Arab 73%, Iranian 9%,Pakistani, Indian.  Religions:  Shi'a and Sunni Muslim.  Languages:Arabic (official), English, Farsi, Urdu.  Education:  Attendance--73%.Literacy--about 74%.  Work force (1987 est.):  197,000 (about 44%indigenous, 56% expatriate).  Agriculture--4%.  Industry andcommerce--74%.  Services--19%.  Government--3%.GovernmentType:  Traditional emirate (cabinet-executive system).  Independence:August 15, 1971.  Constitution:  May 26, 1973.Branches:  Executive--amir (chief of state), prime minister (head ofgovernment), Council of Ministers (cabinet).  Judicial--independentjudiciary with right of judicial review.Subdivisions:  6 towns and cities.Political parties:  None.  Suffrage: None.Central government budget (1986-87):  $2.6 billion.Defense (1986):  $134 million, or 9% of the published budget.Flag:  Three-fourths red field with serrated line separating white fieldon staff side.EconomyGDP (1989 est.):  $3.4 billion.  Real growth rate (est.):  3%.  Percapita income (1989 est.): $7,300.  Avg. inflation rate (1988 est.):2%.Natural resources:  Oil, associated and non-associated natural gas,fish.Agriculture (1% of GDP):  Products--eggs, vegetables, dates, fish.Industry (36% of GDP):  Types--manufacturing (19% of GDP), oil (16%),aluminum, ship repair, natural gas, fish.Services (62% of GDP):  Banking, real estate, insurance.Trade (1989 est.):  Exports--$2.7 billion: oil, aluminum, fish.  Majormarkets--Saudi Arabia, US, Japan.  Imports--$3 billion:  machinery,industrial equipment, motor vehicles, foodstuffs, clothing.  Majorsuppliers--US, UK, Japan.Official exchange rate:  0.38 Bahraini dinar=US $1 (fixed rate set in1971).Economic aid received:  Significant budgetary support and project grantsfrom Saudi Arabia, Kuwait, and the United Arab Emirates.International AffiliationsUN and most of its specialized agencies, Arab League, Organization ofArab Petroleum Exporting Countries (OAPEC), Gulf Cooperation Council(GCC).PEOPLEMost of the population of Bahrain is concentrated in the two principalcities, Manama and Al Muharraq.  The indigenous people--66% of thepopulation--are from the Arabian Peninsula and Persia.  The mostnumerous minorities are South and East Asians, and Europeans.Islam is the dominant religion.  Though Shia Muslims make up more thantwo-thirds of the population, Sunni Islam is the prevailing belief heldby those in the government, military, and corporate sectors.  RomanCatholic and Protestant churches, as well as a tiny indigenous Jewishcommunity, also exist in Bahrain.  Bahrain has traditionally boasted anadvanced educational system.  Schooling and related costs are entirelypaid for by the government and primary and secondary attendance ratesare high.  Bahrain also encourages institutions of higher learning,drawing on expatriate talent and the increasing pool of Bahrainisreturning from abroad with advanced degrees.  As a result, BahrainUniversity has been created for standard undergraduate and graduatestudy and the College of Health Sciences, operating under the directionof the Ministry of Health, trains physicians, nurses, pharmacists, andparamedics.HISTORYBahrain was once part of the ancient civilization of Dilmun and servedas an important link in trade routes between Sumeria and the IndusValley as much as 5000 years ago.  Since the late 18th century, Bahrainhas been governed by the Al-Khalifa family, which created close ties toBritain by signing the General Treaty of Peace in 1820.  A bindingtreaty of protection, known as the Perpetual Truce of Peace andFriendship, was concluded in 1861 and further revised in 1892 and 1951.This treaty was similar to those entered into by the British Governmentwith the other Persian Gulf principalities.  It specified that the rulercould not dispose of any of his territory except to the United Kingdomand could not enter into relationships with any foreign government otherthan the United Kingdom without British consent.  The British promisedto protect Bahrain from all aggression by sea and to lend support incase of land attack.After World War II, Bahrain became the center for British administrationof treaty obligations in the lower Persian Gulf.  In 1968, when theBritish Government announced its decision (reaffirmed in March 1971) toend the treaty relationships with the Persian Gulf sheikdoms, Bahrainjoined the other eight states (Qatar and the seven Trucial Sheikhdoms,which are now called the United Arab Emirates) under British protectionin an effort to form a union of Arab emirates.  By mid-1971, however,the nine sheikhdoms still had not agreed on terms of union.Accordingly, Bahrain sought independence as a separate entity and becamefully independent on August 15, 1971, as the State of Bahrain.GOVERNMENT AND POLITICAL CONDITIONSIn 1973, the Amir enacted a new constitution, setting up an experimentalparliamentary system and protecting individual liberties.  In August1975, however, the Amir disbanded the National Assembly.  No date hasbeen announced for the reintroduction of representative institutions.Bahrain is a constitutional emirate under the rule of the Al-Khalifafamily.  The Amir, Sheikh Isa bin Sulman Al-Khalifa, and his brother,Prime minister Khalifa bin Sulman Al-Khalifa, govern Bahrain inconsultation with a council of ministers.Bahrain's six towns and cities are administered by one central municipalcouncil, the members of which are appointed by the Amir.  A complexsystem of courts, based on diverse legal sources including Sunni andShi'a Sharia (religious law), tribal law, and other civil codes andregulation, was created with the help of British advisers in the early20th century.  This judiciary administers the legal code and reviewslaws to ensure their constitutionality.Principal Government OfficialsAmir--Sheikh Isa bin Sulman Al- KhalifaCrown Prince and Commander in Chief of Bahrain Defense Force--SheikhHamad bin Isa Al-KhalifaMinister of Foreign Affairs--Sheikh Mohammad bin Mubarak Al-KhalifaAmbassador to the United Nations--Hussein Al-SabbaghAmbassador to the United States--Sheikh Mohammad bin Faris Al-KhalifaBahrain maintains an Embassy in the United States at 3502 InternationalDrive NW, Washington, DC 20008 (tel. [phone]).  The Bahraini UNMission is located at 747 3rd Avenue, New York, NY  10017, (tel.[phone]).DEFENSEUnder the Ministry of Defense, the Bahrain Defense Force (BDF) numbersabout 9,000 personnel, and consists of army, navy, air force, and amiriguard units.  Separate from the BDF, the public security forces and thecoast guard report to the Ministry of the Interior.  Bahrain, inconjunction with its GCC partners (Kuwait, Oman, Qatar, Saudi Arabia,and the United Arab Emirates), has moved to upgrade its defenses overthe last 10 years in response to the threat posed by the Iran-Iraq andGulf wars.  Defense spending has increased by as much as 30% each yearsince 1980.  In 1982, the GCC gave Bahrain $1.7 billion to help improveits defenses.  In the wake of the Gulf war, Bahrain has receivedadditional military support from the United States, including the saleof eight Apache helicopters in the summer of 1991.  Joint air and groundexercises have also been planned to increase readiness throughout theGulf.  Bahrain and the United States signed an agreement in October 1991granting US forces access to Bahraini facilities and ensuring the rightto pre-position material for future crises.ECONOMYBahrain benefited from the region's economic boom in the late 1970s and1980s.  During that time, the government emphasized infrastructuraldevelopment and other projects to improve the standard of living;health, education, housing, electricity, water, and roads all receivedattention.Petroleum and natural gas, the only significant natural resources inBahrain, dominate the economy and provide about 60% of budget revenues.Bahrain was one of the first Persian Gulf states to discover oil and wasthe first with a refinery.  Because of limited reserves, Bahrain hasworked to diversify its economy over the past decade.  Bahrain hasstabilized its oil production at about 40,000 barrels per day (b/d), andreserves are expected to last 10-15 years.  The Bahrain Oil Companyrefinery was built in 1935, has a capacity of about 250,000 b/d, and wasthe first in the Gulf.  After selling 60% of the refinery to thestate-owned Bahrain National Oil Company in 1980, Caltex, a US company,now owns 40%.  Saudi Arabia provides most of the crude for refineryoperation via pipeline.  Bahrain also receives one-half of the netoutput and revenues from Saudi Arabia's Abu Saafa offshore oilfield.The Bahrain National Gas Company operates a gas liquefication plant thatutilizes gas piped directly from Bahrain's oilfields.  Gas reservesshould last about 50 years at present rates of consumption.The Gulf Petrochemical Industries Company is a joint venture of thepetrochemical industries of Kuwait, the Saudi Basic IndustriesCorporation, and the Government of Bahrain.  The plant, completed in1985, produces ammonia and methanol for export.Bahrain's other industries include Aluminum Bahrain, which operates analuminum smelter with an annual production of about 176,000 metric tons(mt), and related factories, such as the Aluminum Extrusion Company andthe Gulf Aluminum Rolling Mill.  Other plants include the Arab Iron andSteel Company's iron ore pelletizing plant (4 million tons annually) anda shipbuilding and repair yard.Bahrain's development as a major financial center has been the mostwidely heralded aspect of its diversification effort.  In 1973, theBahraini Monetary Agency was formed to provide oversight for the bankingand financial sector.  Since 1983, the regional economic climate inwhich these institutions operate has become less favorable because ofthe region's economic downturn.  Banks, including some from the UnitedStates, have reacted by scaling back their operations or leaving thearea.  This decrease in business confidence was exacerbated by the Gulfwar.  Nevertheless, more than 100 offshore banking units andrepresentative offices are located in Bahrain.FOREIGN RELATIONSBahrain plays a modest, moderating role in regional politics and adheresto the views of the Arab League on Middle East peace and Palestinianrights.  Bahrain is a member of the GCC, established in May 1981 withfive other Gulf states.  The country has fully complied with steps takenby the GCC to coordinate economic development and defense and securityplanning.Because of its small size and limited wealth, Bahrain has not taken aleading role in regional or international affairs.  Rather, it generallypursues a policy of close consultation with neighboring states and worksto narrow areas of disagreement.  During the Gulf war, Bahraini pilotsflew strikes in Iraq, and the island was used as a base for militaryoperations in the Gulf.Since achieving independence in 1971, Bahrain has maintained friendlyrelations with its neighbors and the world community.  One notableexception is Bahrain's relations with Iran, which have been strainedsince the Iranian revolution and the 1981 discovery of a plannedIran-sponsored coup in Bahrain.  However, with the removal of Iraq as aregional power broker, Bahrain has taken steps, such as encouragingBahrain-Iran trade, to improve relations and increase regional harmony.US-BAHRAINI RELATIONSWhen Bahrain became independent, the traditionally excellent US-Bahrainrelationship was formalized with the establishment of diplomaticrelations.  The US embassy at Manama was opened September 21, 1971, anda resident ambassador was sent in 1974.  The Bahraini Embassy inWashington, DC, opened in 1977.  In October 1991, Amir Isa bin Sulmanmade a state visit to Washington, after which he visited other parts ofthe US as well.In 1977, the agreement establishing Bahrain as the home port for the USNavy's Middle East Force (MIDEASTFOR) was terminated.  Arrangements havebeen made that allow the MIDEASTFOR ships to call at Bahrain.  The USDepartment of Defense-sponsored Bahrain School remains, along with asmall, administrative support unit.  After the Gulf war, closecooperation between the two nations helped to stabilize the region.Bahrain expressed a willingness for cooperation with proposed plans forjoint exercises, increased US naval presence in the Gulf and futurecooperation on security matters.US-Bahraini economic ties have grown steadily since 1932, when Americansbegan to help develop Bahrain's oil industry.  Currently, many Americanbanks and firms use Bahrain as a base for regional operations.  In 1986,the United States displaced Japan to become the top exporter to Bahrain.Principal US OfficialsAmbassador--Charles W. HostlerDeputy Chief of Mission--David S. RobinsEconomic/Commercial Officer--Steven M. BrattainPolitical Officer--Thomas E. Williams, Jr.Consular Officer--Stephanie KronenburgPublic Affairs Officer--Rick RobertsAgricultural Trade Officer--Philip A. LetarteAdministrative  Officer--Lyle A. Dittmer       The US Embassy in Bahrain is  located off Sheikh Isa Highway,Building 979, Road 3119, Block 331, Zinj, Manama, Bahrain.  The mailingaddress is PO Box 26431, Manama, Bahrain, or FPO New York 09526-6210,tel. [phone], after hours 715126; telex 9398 USNATO BN; fax [phone].  The Embassy's hours are 8:00 a.m.-4:00 p.m.,Saturdays-Wednesdays. Travel NotesClimate and clothing:  Wear summer clothes from May to mid-October andspring and fall attire from mid-October through April.  Always dressconservatively in public.Customs:  A visa is required for entry.  US citizens may purchasetransit visas with 72-hour validity at Bahrain's international airport.A 7-day visa is also available.  Single women traveling to Bahrainsometimes encounter difficulty obtaining airport visas; they arestrongly advised to secure their visas before traveling.  Travelers withIsraeli visas and/or entry/exit stamps in their passports will be barredfrom entry.Health:  No immunizations are required for entry, but malariasuppressants are recommended.  Health requirements change; check latestinformation.  Tapwater is potable but highly saline in most areas;persons with sodium restrictions should drink bottled water.  No unusualprecautions regarding food and drink are necessary.  Modern healthservices are provided in several hospitals and health centers.Telecommunications:  Telephone connections are excellent becauseinternational calls enter the satellite communications system fromBahrain.  Bahrain is 8 hours ahead of eastern standard time.  Cable andtelex connections to leading hotels and businesses are good.  Bahrainitelevision features Arabic-and-English-language programs.Transportation:  Many major airlines serve Bahrain's moderninternational airport.  Taxis and rental cars are available in Manama.National Holidays: Businesses and shops may be closed on the followingholidays.  Actual dates depend on lunar calendar: Prophet's Birthday,November 3; Eid al-Fitr, May 29-30; Eid al-Adha, August 5-7; Islamic NewYear, August 25; Ashura, September 3-6; National Day, December 16 (fixeddate).Further information available from the Superintendent of Documents,United States Government Printing Office, Washington, DC 20402.Published by the United States Department of State --  Bureau of PublicAffairs -- Office  of  Public Communication --  Washington,  DC --November 1991 -- Editor:  Andrew KnightonDepartment of State Publication 8013Background Notes Series -- This material is in the public domain and maybe reprinted without permission; citation of this source is appreciated.For sale by the Superintendent of Documents, US Government PrintingOffice, Washington, DC  20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  THE BAHAMASPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994PROFILEGeography Area:  13,939 sq. km. (5,382 sq. mi.); slightly larger than Connecticut and Rhode Island combined.  Cities:  Capital--Nassau, New Providence.  Second-largest city--Freeport, Grand Bahama.  Terrain:  Low and flat.  Climate:  Semitropical.PeopleNationality:  Noun and adjective--Bahamian(s). Population (1993):  269,300.  Annual growth rate:  2%.  Ethnic groups:  Black African 85%, European 12%, Asian and Hispanic 3%.  Religions:  Baptist predominant (35%), Roman Catholic, Anglican, Evangelical Protestants, Methodist, Church of God.  Languages:  English; some Creole among Haitian groups.  Education:  Years compulsory--through age 14.  Attendance--95%.   Literacy--93%.  Health (1993):  Infant mortality rate--24 per 1,000.  Life expectancy--men 64 years., women 72 years.  Work force:  136,900;  majority employed in the tourism, government, and financial services sectors.Government Type:  Independent commonwealth.  Independence:  July 10, 1973.  Suffrage: Universal over 18; 122,939 registered voters in 1992. Branches:  Executive--British monarch (nominal head of state), governor-general (representative of the British monarch), prime minister (head of government), and cabinet.  Legislative--bicameral parliament (49-member House of Assembly, 16-member Senate).  Judicial--Privy Council in U.K., Court of Appeal, Supreme Court, and magistrates' courts.  Political parties:  Free National Movement (FNM), Progressive Liberal Party (PLP).  Economy GDP (1993):  $3.1 billion. Growth rate:  3%.  Per capita GDP (1993):  $11,610.Natural resources:  Salt, aragonite, timber.  Agriculture (1993):  4% of GDP.  Products--vegetables, lobster, fish.Tourism (1993):  50% of GDP.  Banking (1993):  12% of GDP.  Manufacturing (1993):  4% of GDP.  Products--pharmaceuticals, rum.Trade (1993):  Exports--$256.8 million(1): salt, aragonite, chemicals, lobster, fruits, vegetables.  Major markets--U.S. (50%), U.K., other EU countries, Canada.  Imports--$1.1 billion:  foodstuffs and manufactured goods; vehicles and automobile parts; hotel, restaurant, and medical supplies; and computers and electronics.  Major suppliers--U.S (70%), U.K., other EU countries, Canada.Exchange rate:  1 Bahamian dollar=U.S.$1.  _______(1) Bahamas' export statistics do not include oil transshipments or the large transactions from the Syntex pharmaceutical plant located in the Freeport free trade zone._______PEOPLE AND HISTORYEighty-five percent of the Bahamian population is of African heritage.  About two-thirds of the population reside on New Providence Island (the location of Nassau).  Many ancestors arrived in the Bahama Islands when they served as a staging area for the slave trade in the early 1800s.  Others accompanied thousands of British loyalists who fled the American colonies during the Revolutionary War. School attendance is compulsory between the ages of five and 14.  The government fully operates 177 of the 220 primary and secondary schools in The Bahamas.  The other 43 schools are privately operated.  Enrollment for state and private primary and secondary schools amounts to more than 60,000 students. The College of The Bahamas, established in Nassau in 1974, provides programs leading to bachelors and associates degrees.  The college is now converting from a two-year to a four-year institution. Several non-Bahamian colleges also offer higher-education programs in The Bahamas.In 1492, Christopher Columbus made his first landfall in the Western Hemisphere at either Samana Cay or San Salvador Island in The Bahamas.  Spanish slave traders later captured native Lucayan Indians to work in gold mines in Hispaniola, and, within 25 years, all Lucayans perished.  In 1647, a group of English and Bermudan religious refugees, the Eleutheran Adventurers, founded the first permanent European settlement in The Bahamas and gave Eleuthera Island its name.  Similar groups of settlers formed governments in The Bahamas until the islands became a British crown colony in 1717.The first royal governor, a former pirate named Woodes Rogers, brought law and order to The Bahamas in 1718, when he expelled the buccaneers who had used the islands as hideouts.  During the American Civil War, The Bahamas prospered as a center of Confederate blockade-running.  After World War I, the islands served as a base for American Prohibition rumrunners.  During World War II, the Allies centered their flight training and anti-submarine operations for the Caribbean in The Bahamas.  Since the war, The Bahamas has developed into a major tourist and financial services center. Bahamians achieved self-government through a series of constitutional and political steps, attaining internal self-government in 1964 and full independence within the Commonwealth on July 10, 1973.GOVERNMENT AND POLITICAL CONDITIONSThe Bahamas is an independent member of the Commonwealth of Nations.  It is a parliamentary democracy with regular elections.  As a Commonwealth country, its political and legal traditions closely follow those of the United Kingdom.  The Bahamas recognizes the British monarch as its formal head of state, while an appointed governor-general serves as the Queen's representative in The Bahamas.  A bicameral legislature enacts laws under the 1973 constitution.  The House of Assembly consists of 49 members, elected from individual constituencies for five-year terms.  As under the Westminster system, the government may dissolve the parliament and call elections at any time.  The House of Assembly performs all major legislative functions.  The leader of the majority party serves as prime minister and head of government.  The cabinet consists of at least nine members, including the prime minister and ministers of executive departments.  They answer politically to the House of Assembly. The Senate consists of 16 members appointed by the governor-general, including nine on the advice of the prime minister, four on the advice of the leader of the opposition, and three on the advice of the prime minister after consultation with the leader of the opposition.  The Free National Movement (FNM), led by Prime Minister Hubert A. Ingraham, has governed The Bahamas since August 1992. For decades, the white-dominated United Bahamian Party (UBP) ruled The Bahamas, then a dependency of the United Kingdom, while a group of influential white merchants, known as the "Bay Street Boys," dominated the local economy.  In 1953, Bahamians dissatisfied with UBP rule formed the opposition Progressive Liberal Party (PLP).  Under the leadership of Lynden Pindling, the PLP won control of the government in 1967 and led The Bahamas to full independence in 1973. A coalition of PLP dissidents and former UBP members formed the FNM in 1971.  Former PLP cabinet minister and member of parliament Hubert Ingraham became leader of the FNM in 1990, upon the death of Sir Cecil Wallace-Whitfield.  Under the leadership of Ingraham, the FNM won control of the government from the PLP in the August 1992 general elections.  The ruling FNM controls 32 seats in the House of Assembly, while the PLP controls 17 seats and serves as the official opposition.The governor-general appoints the chief justice of the Supreme Court on the advice of the prime minister and the leader of the opposition.  The governor-general appoints the other justices with the advice of a judicial commission.  The Privy Council of the United Kingdom serves as the highest appellate court.Principal Government Officials Governor-General--Sir Clifford Darling, KT., J.P. Prime Minister and Minister of Finance--Hubert A. Ingraham, P.C., M.P. Deputy Prime Minister, Attorney General, and Minister of Foreign Affairs--Orville A. Turnquest, Q.C., LL.B., M.P. Ambassador to the United States and to the Organization of American States (OAS)--Timothy Baswell DonaldsonAmbassador to the United Nations--Harcourt TurnquestThe Bahamas maintains an embassy in the United States at 2220 Massachusetts Ave. NW, Washington, DC 20008 (tel. [phone]) and consulates general at 767 Third Ave., 9th floor, New York, NY 10017 (tel. [phone]) and at Suite 818, Ingraham Building, 25 SE Second Ave., Miami, FL 33131 (tel. [phone]).ECONOMYThe Bahamian economy is almost entirely dependent on tourism and financial services to generate foreign exchange earnings.  Tourism alone provides an estimated 50% of the gross domestic product and employs about half the Bahamian work force.  In 1993, over 3.6 million tourists visited The Bahamas, 81% of them from the United States.    Economic growth in The Bahamas will likely remain slow as The Bahamas tries to recover from the decline in tourism expenditures experienced in the late 1980s and early 1990s.  Recovery is complicated by continuing high prices, intense competition from newer tourist destinations in the region, continuing economic uncertainties in North America, and the continuing structural shift of Caribbean tourism toward cruise travel (which generates considerably less income for the tourist destination than do stopover visits).  The projected opening in early 1995 of a renovated resort complex on Paradise Island may boost the number of stopover visitors.  In an effort to increase the number of stops available to cruise ship passengers and to spread their spending more widely, the Bahamian Government has earmarked funds for the expansion of harbor facilities on islands beyond New Providence to offer cruise lines options other than the two major ports-of-call in Freeport and Nassau.Financial services constitute the second-most important sector of the Bahamian economy, accounting for just over 10% of GDP, due to the country's status as a tax haven and off-shore banking center.   The Bahamas promulgated the International Business Companies (IBC) Act in January 1990 to enhance the country's status as a leading financial center; about 25,000 companies have been established under this act.  The act served to simplify and reduce the cost of incorporating off-shore companies in The Bahamas.In February 1991, the government legalized the establishment of asset protection trusts in The Bahamas.  In 1993, the government licensed more than 400 banks and trust companies in The Bahamas.Agriculture and industry together account for less than 10% of GDP.  The Bahamas exports lobster and some fish but does not raise these items commercially.  There is no large-scale agriculture, and most agricultural products are consumed domestically.  The Bahamas imports over $250 million in foodstuffs per year, representing about 80% of its food consumption.  The government aims to expand food production to reduce imports and generate foreign exchange.  It actively seeks foreign investment aimed at increasing agricultural exports, particularly specialty food items.  The government officially lists beef and pork production and processing, fruits and nuts, dairy production, winter vegetables, and mariculture (shrimp farming) as the areas in which it wishes to encourage foreign investment.The Bahamian Government maintains the value of the Bahamian dollar on a par with the U.S. dollar.  The Bahamas' proximity to the U.S. provides access to both the U.S.-Canadian market under terms of the Caribbean Basin Initiative and to the European Union under the Lome Convention.The Bahamas has a few notable industrial firms, including the pharmaceutical firm Syntex, which recently streamlined its production, and the BORCO oil facility, also in Freeport, which transships oil in the region.  Commonwealth Brewery in Nassau produces Heineken, Guiness, and Kalik beers.  Barcardi distills rum in Nassau for shipment to the U.S. and European markets.  Other industries include sun-dried sea salt in Great Inagua, a wet dock facility in Freeport for repair of cruise ships, and mining of aragonite (a type of limestone with several industrial uses) from the sea floor at Ocean Cay.The Hawksbill Creek Agreement established a duty-free zone in Freeport, The Bahamas' second-largest city, with a nearby industrial park to encourage foreign industrial investment.  The Bahamian parliament approved legislation in 1993 that extended most freeport tax and duty exemption through 2054.FOREIGN RELATIONSThe Commonwealth of The Bahamas belongs to the United Nations (UN) and some specialized and related agencies, including Food and Agriculture Organization (FAO), International Civil Aviation Organization (ICAO), International Labor Organization (ILO), International Monetary Fund (IMF), International Telecommunication Union (ITU), World Bank, World Meteorological Organization (WMO), and World Health Organization (WHO); Organization of American States (OAS) and related agencies, including Inter-American Development Bank (IDB), Caribbean Development Bank (CDR), and Pan-American Health Organization (PAHO); the Caribbean Community and Common Market (CARICOM), excluding its Common Market; the International Criminal Police Organization (INTERPOL); Universal Postal Union (UPU); and World Intellectual Property Organization (WIPO).The Bahamas most often takes a unified position with the Caribbean region on foreign affairs.  As a member of CARICOM, The Bahamas strongly backed efforts by the U.S. to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The Bahamas agreed to contribute personnel to the Multinational Force, which restored the democratically elected government of Haiti in October 1994.U.S.-BAHAMIAN RELATIONSThe United States historically has had close economic and commercial relations with The Bahamas.  The two countries cooperate closely on law enforcement, marine research, meteorology, civil aviation, maritime safety, and agricultural issues.  The U.S. and The Bahamas cooperate extensively on counter-narcotics efforts.  Operation Bahamas and Turks and Caicos is a major interdiction operation jointly sponsored by the U.S., The Bahamas, and the Turks and Caicos Islands.  The Bahamas receives about $750,000 in counter-narcotics assistance from the State Department's Bureau of International Narcotics Matters.The two countries enjoy close ethnic and cultural ties, especially in education and sports.  The U.S. Navy operates an underwater research facility near Andros Island.  U.S. preclearance facilities (U.S. Customs, Immigration, and Agriculture) for travelers to the U.S. operate at international airports in Nassau, Paradise Island, and Freeport.Principal U.S. Embassy OfficialsAmbassador--Sidney Williams Deputy Chief of Mission--John S. Ford Administrative Officer--Bryan Mcintosh Consul--Vincent Principe Political-Economic Section Chief--James P. McAnulty Public Affairs Officer (acting)--Mary Eileen Earl U.S. Naval Liaison Officer--Lt. Cmdr. Michael Doles, USN U.S. Coast Guard Liaison Officer--Lt. Cmdr. James Maes, USCG U.S. Customs Service--Frank Mullins U.S. Drug Enforcement Administration--Richard Stuart U.S. Immigration and Naturalization Service--James WardThe U.S. embassy is located in the Mosmar Building, Queen Street, Nassau (tel. [phone]; telex 20-138); the local postal address is P.O. Box N-8197,  Nassau. (###)</text>
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        <text>BACKGROUND NOTES:  AUSTRIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEOCTOBER 1992Official Name:  Republic of AustriaPROFILEGeographyArea:  83,857 sq. km. (32,377 sq. mi.); slightly smaller thanMaine.  Cities:  Capital--Vienna (pop. 1.7 million).  Othercities--Graz, Linz, Salzburg, Innsbruck.  Terrain:  Mountainousand hilly.  Climate:  Continental temperate.PeopleNationality:  Noun and adjective--Austrian(s).   Population(1991):  7.8 million.  Annual growth rate:  1.2%.  Ethnic groups:German 98%, Croatian, Slovene.  Religion: Roman Catholic 89%.Language:  German 98%.  Education:  Years compulsory--9.Attendance--95%.  Literacy--98%.  Health:  Infant mortalityrate--8/1,000.  Life expectancy--72 yrs. men, 79 yrs. women.Work force (3.4 million):  Industry and commerce--35%.Agriculture and forestry--7%.GovernmentType:  Parliamentary democracy.  Constitution:  1920 (reinstatedDecember 1945).Branches:  Executive--Federal President (chief of state),chancellor (head of government), cabinet.  Legislative--bicameralFederal Assembly (parliament).  Judicial--Constitutional Court,Administrative Court, Supreme Court.Political parties (in parliament):  Social Democratic Party,People's Party, Freedom Party, Green-Alternative Movement(environmental party).  Suffrage:  Universal over 19.Administrative subdivisions:  Nine Laender (provinces).Defense (est.):  1% of GDP.Flag:  Three horizontal bands--red, white, and red; flag may alsohave the national emblem, a black eagle, centered in the whiteband.EconomyGDP (1991):  $163 billion.  Per capita income (1991):  $20,820.Natural resources:  Iron ore, crude oil, natural gas, timber,tungsten, magnesite, lignite, cement.Agriculture (3.3% of 1991 GDP):  Products--livestock, forestproducts, grains, sugar beets, potatoes.Industry (40% of 1991 GDP):  Types--iron and steel, chemicals,capital equipment, consumer goods.Services:  58% of 1990 GDP.Trade (1991):  Exports--$41 billion:  iron and steel products,timber, paper, textiles, electro-technical machinery,construction and industrial machinery, chemical products.Imports--$51 billion:  machinery, vehicles, chemicals, iron andsteel, metal goods, fuels, raw materials, foodstuffs.Principal partners--European Community, European Free TradeAssociation, United StatesExchange rate (1991 avg.): 11 Austrian schillings=US$1.PEOPLEAustrians are a homogenous people; 98% are native Germanspeakers.Only two significant minority groups exist--about 15,000 Slovenesin Carinthia (south-central Austria) and some 18,000 Croatians inBurgenland (on the Hungarian border).  The Slovenes form aclosely knit community.  Although their rights are protected bylaw and respected in practice, there has been some controversyover the use of the Slovenian language in schools where there isa Slovene majority.The present boundaries of Austria--once the center of the empirewhich was the second largest state in Europe--were established inaccordance with the Treaty of  St. Germain in 1919.  ManyAustrians, particularly near Vienna, still have relatives inCzechoslovakia and Hungary.About 89% of all Austrians are Roman Catholic.  The churchabstains from political activity; however, lay Catholicorganizations are aligned with the conservative People's Party.The Social Democratic Party long ago shed its anti-clericalstance.  A small Protestant minority is located mainly in Vienna,and in the Carinthian Mountains and Burgenland.HISTORYThe Austrian Empire played a decisive role in Central Europeanhistory.  It occupied a strategic position astride thesoutheastern approaches to Western Europe and the north-southroutes between Germany and Italy.  Although present-day Austriais only a tiny remnant of the old empire, it still occupies thisstrategic position.Soon after the Republic of Austria was established at the end ofWorld War I, it not only had to redesign a government meant torule a great empire into one that would govern only 6 millioncitizens but also faced catastrophic inflation.  In the early1930s, worldwide depression and unemployment added to thesestrains and shattered traditional Austrian society.  Theseeconomic and political conditions led in 1933 to a dictatorshipunder Engelbert Dollfuss.  In February 1934, civil war broke out,and the Social Democratic Party was suppressed.  In July, theNational Socialists attempted unsuccessfully to seize power andassassinated Dollfuss.  In March 1938, Austria was incorporatedinto the German Reich through the Anschluss.At the Moscow conference in 1943, the Allies declared theirintention to liberate Austria and reconstitute it as a free andindependent state.  In April 1945, both East and West forcesliberated the country.Subsequently, Austria was divided into zones of occupationsimilar to Germany's.  A Socialist elder statesman, Dr. KarlRenner, successfully organized an Austrian administration.General elections were held in November 1945, and theconservative People's Party obtained 50% of the vote and 85 seatsin the National Council (lower house of the parliament).  TheSocialists won 45% and 76 seats, and the Communists won 5% and 4seats.  The ensuing three-party government held office until1947, when the Communists left the government.  During that year,the People's Party and the Socialists formed a coalition thatgoverned until 1966.Under the 1945 Potsdam agreements, the Soviets took control ofGerman assets in their zone of occupation.  These includedmanufacturing plants, constituting 7% of all Austrian industry;oil resources, which accounted for 95% of the nation's oilproduction; and refineries, which accounted for about 80% ofAustria's refinery capacity.  These properties were returned toAustria under the Austrian State Treaty, signed at Vienna on May15, 1955.  The treaty came into effect on July 27 of that year.Under its provisions, all occupation forces were withdrawn byOctober 25, 1955.  Austria became free and independent for thefirst time since 1938.GOVERNMENTThe Austrian president convenes and discontinues parliamentarysessions and, subject to certain conditions, can dissolveparliament.  However, no Austrian president has dissolvedparliament in the Second Republic.  The custom is for parliament,itself, to enact a law calling new elections. The presidentrequests a party leader, usually the leader of the strongestparty, to form a government.  Upon the recommendation of thefederal chancellor, the president also appoints cabinetministers.   No one can become a member of the government withoutthe approval of the president. The Federal Assembly (parliament) is composed of two houses--theNational Council (Nationalrat), or lower house, and the FederalCouncil (Bundesrat), or upper house.  Virtually all legislativeauthority is concentrated in the National Council.  Its 183members are elected for a maximum  4-year term from nineelectoral districts, according to a complicated system ofproportional representation.  The National Council may dissolveitself by a simple majority vote or it may be dissolved by thepresident on the recommendation of the chancellor. The FederalCouncil consists of 63 members elected by the legislatures of thenine provinces for  4- to 6-year terms.  Seats are allocated onthe basis of population, with each province guaranteed at leastthree.  The Federal Council is restricted to reviewinglegislation passed by the National Council, and has onlydelaying, not absolute veto, powers. The highest courts of Austria's independent judiciary are theConstitutional Court, which has jurisdiction over constitutionalmatters; the Administrative Court, which handles bureaucraticdisputes; and the Supreme Court, for civil and criminal cases.Cases in the Administrative and Supreme Courts concerningconstitutional issues can be appealed to the ConstitutionalCourt.  Justices of the three courts are appointed by thepresident for specific terms.Austria's nine Laender (provinces) are headed by governorselected by the provincial legislatures.  Although most authority,including police, rests with the federal government, theprovinces have considerable responsibility for welfare mattersand supervision of local administration.  Strong provincial andlocal loyalties are based on tradition and history.Principal Government Officials:Federal President--Thomas KlestilFederal Chancellor--Franz VranitzkyVice Chancellor--Gerhard BusekForeign Minister--Aolis MochAmbassador to the United States--Friedrich HoessAmbassador to the United Nations--Peter HohenfellnerAustria maintains an embassy in the United States at 3524International Court, NW, Washington, DC  20008 (tel.[phone]).  Consulates general are located in New York,Chicago, and Los Angeles, with honorary consulates in Atlanta,Boston, Buffalo, Cleveland, Denver, Detroit, Honolulu, Houston,Miami, New Orleans, Newark, Philadelphia, San Francisco, SanJuan, Seattle, and St. Paul.POLITICAL CONDITIONSSince World War II, Austria has enjoyed political stability.  Thetwo major parties--People's Party and Social Democrats--whichformed the governing coalition during the period 1947-66, havethe support of about 75% of the electorate.  Extremist parties ofthe right and left have had virtually no influence on governmentpolicy and usually receive less than 1% of the vote.The Socialist Party, renamed the Social Democratic Party in June1991, traditionally draws its constituency from blue- andwhite-collar workers, so that much of its strength lies in theurban and industrialized areas.  In the past, the party advocatedheavy state involvement in Austria's key industries, theextension of social security benefits, and a full-employmentpolicy.  In the mid-1980s, the party began to swing toward freemarket-oriented economic policies and balancing the federalbudget, and is now working to bring the country into the EuropeanCommunity (EC).The People's Party's traditional constituency has been amongliberal farmers, big and small businesses, and lay Catholicgroups.  Its centers of strength are the rural regions ofAustria.  In economic matters, the party advocates conservativefinancial policies and privatization of much of Austria'snationalized industry.The Freedom Party has been a small- to medium-sized right leaningparty that attracts those who desire no association with the twomajor parties. Recently, the party's mixture of populism andanti-establishment themes have won increased support.  Inprovincial elections in Vienna in 1991 the Freedom Partydisplaced the People's Party to move into second position in citygovernment. Nationally it attracts approximately 15% of the vote.The most recent Austrian parliamentary elections were held inOctober 1990 and produced a Socialist/People's Party coalitiongovernment.  In these elections, the Social Democratic Partyunder its popular chairman, Chancellor Franz Vranitzky,maintained its 43% plurality from 1986.  The People's Party,however, dropped from 41% to 32% of the vote.  The Freedom Party,under Joerg Haider, substantially increased its share of theelectorate from 10% to 17%.  Because of the new voting patterns,the new government included a larger number of Socialist cabinetmembers.ECONOMYAustria has a social market economy in which the government playsan important role.  Many of the country's largest firms werenationalized in the early post-war period to protect them fromSoviet takeover as war reparations.  Currently, these state-ownedcorporations are intended to operate largely as privatebusinesses, and a number are being wholly or partiallyprivatized.  The government operates various state monopolies,utilities, and services.  Austrian industry, banking,transportation, services, and commercial facilities are welldeveloped.Although the nationalized industries, which include several ironand steel works and chemical plants, are large industrialenterprises employing thousands of people, most industrial andcommercial enterprises are smaller.Austrian farms, like those of other West European mountainouscountries, are small and fragmented.  Their products arerelatively expensive. Although Austrian farmers provide about 80%of domestic food requirements, the agricultural contribution togross domestic product (GDP) has declined since 1950 to about3.5%.Austria has achieved sustained economic growth in the post-warperiod.  During the 1950s, the average annual growth rate wasmore than 5% in real terms and averaged about 4.5% through mostof the 1960s.  Austria's economy through 1979 grew by 4.7% butbegan to taper off in 1980. The growth rate during the pastdecade was still one of the highest in the West. GDP increased by3% in real terms in 1985.  After a short fall to 1.2% in 1986,Austria's percentage growth climbed to a healthy 4.6% in 1990 butfell to 3% in 1991.  Future GDP growth is expected to be about 3%through 1996, and then to remain slightly above the 2.2% growthexpected for Europe.  The Central Bank's hard schilling policyhas helped to keep "imported" inflation to a minimum--3.2% in1985, and 1.4% in 1987.  In recent years, inflation has remainedrelatively stable.  Prices rose 3.3% in both 1990 and 1991.Inflation is anticipated at 3%-4% for the next several years.The reduction in the trade deficit,  the traditional surplus inservices, and high revenues from transit trade have resulted in a$1 billion schilling current account surplus for 1990.Unemployment in Austria remained at 4.5% in 1983-84 but increasedslightly to 4.8% in 1985.  Unemployment reached 5.2% and remainedabove the 5% level through the end of the decade.  Levels haveincreased to 5.4% in 1990 and 5.8% in 1991 and are expected torise slightly over the next few years.Austria has a strong labor movement.  The Austrian Trade UnionFederation (ATUF) comprises constituent unions with a totalmembership of more than 1.6 million, representing almosttwo-thirds of the country's wage and salary earners.  Since 1945,the ATUF has followed moderate policies and generally hascooperated with industry and government anti-inflationarymeasures in what is known as Austria's "social partnership."Exports of goods and services account for more than 40% of GDP.Austria's main trading partners are members of the EuropeanCommunity (EC), which accounted for 66% of Austrian merchandiseexports and 68% of its imports in 1991.  Since July 1, 1977, theexchange of nearly all industrial goods between Austria and theEC has been free from tariff barriers.  In order to share in thebenefits of the EC's internal market, Austria applied to join inJuly 1989. Membership in the European Free Trade Association (EFTA), oncean important element in Austrian foreign trade, has lost much ofits glamor since Austria and its EFTA partners concludedbilateral free trade agreements with the EC.  In 1991, EFTAcountries accounted for 7% of Austrian imports and 5% of exports.Total trade with the United States in 1991 reached $3.2 billion.Imports from the United States amounted to $2 billion,constituting a US market share in Austria of 3.5%.  Austrianexports to the United States in 1991 were $1.2 billion or 3% oftotal Austrian exports.  As a rule, Austria has experienceddeficits in its merchandise trade, offset somewhat by earningsfrom tourism and by long-term private capital.FOREIGN RELATIONSThe 1955 Austrian State Treaty ended the four-power occupationand recognized Austria as an independent and sovereign state.  InOctober 1955, the Federal Assembly passed a constitutional law inwhich "Austria declares of her own free will her perpetualneutrality."  The second section of this law stated that "in allfuture times Austria will not join any military alliances andwill not permit the establishment of any foreign military baseson her territory." In line with its desire to join the EuropeanCommunity, and with the demise of the Warsaw Pact, Austria hasbegun reassessing its definition of its neutrality.Austria shapes its foreign policy on the basis of neutrality.Austrian leaders also emphasize the unique role the country playsas a link between East and West and as a moderator between theindustrialized and developing countries.  Austria is active inthe United Nations and in UN peacekeeping efforts.  It attachesgreat importance to participation in the Organization forEconomic Cooperation and Development  and other internationaleconomic organizations, and has played an active role in theConference on Security and Cooperation in Europe (CSCE).Vienna is headquarters of the International Atomic Energy Agencyand the UN Industrial Development Organization.  Otherinternational organizations based in Vienna include theOrganization of Petroleum Exporting Countries and its Fund forInternational Development, and the International Institute forApplied Systems Analysis.  Vienna hosted the mutual and balancedforce reduction talks, which resulted in the November 1990signing of the Treaty on Conventional Armed Forces in Europe.  In1986, Vienna hosted the follow-up meeting of the CSCE.Austria traditionally  has been active in what the Austrians call"bridge building to the East," involving increasing contacts atall levels with Eastern Europe and the states of the formerSoviet Union.  Austrians maintain a constant exchange of businessrepresentatives, political leaders, students, cultural groups,and tourists, with the countries of Central and Eastern Europe.As a result, Austrian companies are very active in investing andtrading with the countries of Central and Eastern Europe.  Inaddition, the Austrian Government and various Austrianorganizations provide assistance and training to support thechanges underway in the region.  They believe also that theircountry, as gateway to the Danube River basin, is uniquelyqualified for this role.US-AUSTRIAN RELATIONSAustria's political leaders and people recognize and appreciatethe essential role played by US economic assistance through theMarshall Plan in the rehabilitation of their country after WorldWar II, and by the United States in promoting the conclusion ofthe Austrian State Treaty.  It is in the interest of the UnitedStates that:--  The present friendly relations be maintained andstrengthened;--  Austria remain free and independent; and--  Its political and economic stability be maintained.Principal US Officials:Ambassador--Roy Michael HuffingtonDeputy Chief of Mission--James W. SwihartCounselor for Political Affairs--Alfreda E. MeyersCounselor for Economic Affairs--Edward B. O'DonnellCounselor Public Affairs (USIS)--Craig B. SpringerCounselor for Commercial Affairs--Benjamin N. BrownCounselor for Administrative Affairs--Warren P. NixonCounselor for Agricultural Affairs--Robert J. SvecConsul General--Mary McAteer-LeLaumierDefense and Army Attache--Col. Peter S. Hoffman, USAConsul General, Salzburg--Maryanne H. MartinezThe US embassy in Austria is located at Boltzmanngasse 16, Vienna1091 tel. (43) (1) 313-39 [After office hours: (43) (1)319-5523].  The US Consulate General in Salzburg is located at 51Giselakai, 5020 Salzburg tel. (43) (662) 28-6-01.TRAVEL NOTESClimate and clothing:  Vienna's climate is similar to that of thenortheastern US; clothing needs and tastes are about the same.Wear sweaters and light woolens during possible cool spells insummer.Health:  Local pharmacies are well stocked, and hospitals areadequate. The US embassy can provide a list of English-speakingphysicians and dentists in Vienna.  Community health andsanitation are similar to that in the United States; the Vienneseare proud of their city's water, piped in from mountain springs.Telecommunications:  Telegraph and telephone services areefficient. Vienna is 6 hours ahead of eastern standard time.Transportation:  Public transportation in Vienna and other citiesvia bus, streetcar, and subway is good.  Taxis are available 24hours a day at stands throughout Vienna.  Roads are good, thoughoccasionally steep on alpine passes.  Highways connect Viennawith Graz, Salzburg, Innsbruck, and the German border.  TheAustrian State Railway provides service throughout the countryand connections to Eastern and Western Europe.Tourist attractions:  Austria has a number of widely differingtourist areas:  Vienna and Salzburg; the  lake and mountaindistrict of the Salzkammergut; the Danube Valley, known for itsvineyards, castles, and monasteries; Burgenland, the easternmostprovince, centering on the Lake Neusiedler Lake; Carinthia andthe Alpine Provinces, for hunting, fishing, and skiing.Further InformationAvailable from the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402:Key Officers of Foreign Service Posts   (Guide for BusinessRepresentatives).  Revised biannually.For information on economic trends, commercial development,production, trade regulations, and tariff rates, contact theAustrian desk, IEP/EUR/OWE, Room 3411, International TradeAdministration, US Department of Commerce, Washington, DC 20230,(tel. [phone].)Published by the United States Department of State  --  Bureau ofPublic Affairs  Office of  Public CommunicationWashington, DC  --  October 1992Department of State Publication 7955Background Notes Series  --  This material is in the publicdomain and may  be reprinted without permission; citation of thissource is appreciated.For sale by the Superintendent of Documents, US GovernmentPrinting Office, Washington, DC  20402.</text>
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        <text>BACKGROUND NOTES:  AUSTRALIAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSUS DEPARTMENT OF STATEFEBRUARY 1994Official Name:  Commonwealth of AustraliaPROFILEGeographyArea:  7.7 million sq. km. (3 million sq. mi.); about the size of thecontinental United States.Cities:  Capital--Canberra (pop. 310,000).  Other cities--Sydney (3.7million), Melbourne (3.1 million), Brisbane (1.3 million), Perth (1.2million).Terrain:  Varied, but generally flat.Climate:  Relatively dry; temperate in the south; tropical in thenorth.PeopleNationality:  Noun and adjective--Australian(s).Population (1993):  17.7 million.Annual growth rate:  1.3%.Ethnic groups:  European 94%, Asian 5%, Aboriginal 1%.Religions:  Anglican 24%, Roman Catholic 26%.Languages:  English.Education:  Years compulsory--to age 15 in all states exceptTasmania, where it is 16.  Literacy--89%.Health:  Infant mortality rate--9/1,000.  Life expectancy--men 74yrs.; women 80.Work force:  8.6 million.  Services--70%.  Mining, manufacturing, andutilities--21%.  Agriculture--5%.  Public administration andDefense--4%.GovernmentType:  Democratic, federal-state system with British monarchsovereign.Constitution:  July 9, 1900.Independence (federation):  January 1, 1901.Branches:  Executive--prime minister and cabinet responsible toparliament.  Legislative--bicameral parliament (76-member Senate,148-member House of Representatives).  Judicial--independentjudiciary.Administrative subdivisions:  Six states and two territories.Political parties:  Liberal, National, Australian Labor, AustralianDemocrats.Suffrage:  Compulsory at 18.Flag:  On a blue field, Union Jack in the top left corner, a large whitestar and five smaller white stars on the right half.EconomyGDP (1993):  $270 billion.Per capita income:  $10,300.Natural resources: Bauxite, coal, iron ore, copper, tin, silver,uranium, nickel, tungsten, mineral sands, lead, zinc, diamonds,natural gas, oil.Agriculture (4% of GDP):  Products--livestock, wheat, wool, sugar.Arable land--9%.Industry (27% of GDP):  Types--mining, manufacturing, andtransportation.Trade:  Exports--$51 billion:  coal, wool, wheat, meat, iron ore andconcentrates, alumina, aluminum, petroleum products, gold.  Majormarkets--Japan, U.S. ($3.3 billion in 1993), U.K., Korea, P.R.C., HongKong, Taiwan, Germany.  Imports--$52 billion:  transportationequipment, capital goods, industrial supplies, petroleum products.Major suppliers--Japan, U.S. ($9 billion in 1993), Germany, U.K.,Taiwan, New Zealand, Italy, Korea.Official exchange rate:  The Australian dollar floats freely.  The ratein January 1994 was US$.70=Australian $1.PEOPLEAustralia's aboriginal inhabitants, a hunting-gathering peoplegenerally referred to as Australoids, have lived on the islandcontinent for some 40,000 years.  Although their technical cultureremained static--depending on wood, bone, and stone tools andweapons--their spiritual and social life was highly complex.  Mostspoke several languages, and confederacies sometimes linked widelyscattered tribal groups.Aboriginal population density ranged from one person per squaremile along the coasts to one person per 35 square miles in the aridinterior.  They had no agriculture and nuclear families subsisted ashunter-gatherers.When Europeans arrived in the 18th century, the native populationmay have numbered 300,000 in as many as 500 tribes.  Theaboriginal population currently numbers about  230,000,representing about 1.4% of the population.  Since the end of WorldWar II, efforts have been made to be more responsive to aboriginalrights and needs.  Today, tribal aboriginals lead a settled traditionallife in remote areas of northern, central, and western Australia.  Inthe southern states, where interracial contacts are most extensive,aborigines of mixed parentage are moving to the cities in increasingnumbers.Immigration has been essential to Australia's development since thebeginning of European settlement in 1788.  For generations, mostsettlers came from the British Isles, and the people of Australia arestill predominantly of British or Irish origin, with a culture andoutlook similar to those of Americans.Since World War II, the population has more than doubled.  Theincrease reflects, in part, an influx of newcomers through anextensive, planned immigration program.  In the last 50 years, about5 million immigrants have come to Australia; about 80% haveremained.  One of every five Australians is foreign-born.  Britain andIreland have been the largest sources of post-war immigrants,followed by Italy, Greece, and Yugoslavia.  Immigration from theMiddle East, Asia, and Latin America has increased since the late1960s.In 1990, Australia accepted about 121,000 regular immigrants.  Inaddition, during the last decade, about 20,000 New Zealanders havesettled in Australia each year.  Australia's refugee admissions ofabout 10,000 per year are in addition to the normal immigrationprogram.  Forty percent of the refugees are from Indochina and makeup the largest single element in Australia's refugee program inrecent years.  Since 1975, the country has accepted more than125,000 refugees from Vietnam, Laos, and Cambodia; it now has, ona per capita basis, more Indochinese refugees as permanentresidents than any other country.Although Australia has a population density of scarcely more thantwo per square kilometer, it is one of the world's most urbanizedcountries.  About 15% of the population live in rural areas.HISTORYAustralia was uninhabited until about 40,000 years ago,  stone-culture peoples arrived, perhaps by raft across the watersseparating the continent from the Indonesia archipelago.Portuguese, Spanish, Dutch, and English explorers observed theisland before 1770, when Capt. James Cook explored the east coastand claimed it for Great Britain (three American colonists werecrew members aboard Cook's ship, the Endeavor).  On January 26,1788 (now celebrated as Australia Day), the First Fleet underCaptain Arthur Phillip landed at Sydney.  Formal establishment ofthe Colony of New South Wales followed, on February 7.Many of the first English settlers were convicts, condemned foroffenses that today often would be considered to be trivial.  Themid-19th century saw the beginning of government policies toemancipate convicts and accelerate immigration.The discovery of gold in 1851 spurred population growth and tradeand generated unprecedented wealth.  The six colonies that nowconstitute the states of the Australian Commonwealth wereestablished in the following order:  New South Wales, 1788;Tasmania, 1825;  Western Australia, 1830; South Australia, 1836;Victoria, 1851; and Queensland, 1859.Discussions between Australian and British representatives led toadoption by the British Government of an act to constitute theCommonwealth of Australia in 1900.  The first federal parliamentwas opened at Melbourne in May 1901 by the Duke of York (later KingGeorge V).  In May 1927, the seat of government was transferred toCanberra, a planned city designed by an American, Walter BurleyGriffin.  The first session of Parliament in that city was opened byanother Duke of York (King George VI).Australia passed the Statute of Westminster Adoption Act inOctober 1942, which officially established Australia's completeautonomy in both internal and external affairs.  Its passageformalized a situation that had existed for years.  The Australia Act(1986) eliminated the last vestiges of British legal authority.GOVERNMENTThe Commonwealth Government was created with a constitutionpatterned partly on the U.S. Constitution.  The powers of theCommonwealth are specifically defined in the constitution, andresidual powers remain with the states.Queen Elizabeth II is the sovereign and since 1973 is officially"Queen of Australia."  The Queen is represented throughout Australiaby a governor general and in each state by a governor.  The federalparliament consists of a Senate and a House of Representatives.Twelve senators from each state and two from each territory areelected for 6-year terms, with half elected every three years.  The148 seats of the House of Representatives are allocated among thestates and territories roughly in proportion to population.In ordinary legislation, the two chambers have coordinate powers,but all proposals for appropriating revenue or imposing taxes mustbe introduced in the House of Representatives.  Under the prevailingWestminster parliamentary system, the leader of the political partyor coalition of parties that wins a majority of the seats in the Houseof Representatives is named prime minister.  The prime minister andthe cabinet wield actual power and are responsible to theparliament, of which they must be elected members.  Generalelections are held at least once every 3 years; the last generalelection was in March 1993.  Each state is headed by a premier, whois the leader of the majority party in the lower house of the statelegislature.Australia also has two self-governing territories, the AustralianCapital Territory (where Canberra is located) and the NorthernTerritory, with political systems similar to those of the states.  Atthe apex of the court system is the High Court of Australia.  It hasgeneral appellate jurisdiction over all other federal and state courtsand possesses the power of constitutional review.Principal Government OfficialsGovernor General--William G. HaydenPrime Minister--Paul J. KeatingForeign Minister--Gareth EvansAmbassador to the United States--Don RussellAmbassador to the United Nations--Richard W. ButlerAustralia maintains an embassy  in the United States at 1601Massachusetts Avenue NW, Washington, DC 20036 (tel. [phone]), and consulates general in New York (212-245-4000), Atlanta(404-880-1700), San Francisco (415-362-6160), Honolulu (808-524-5050), Los Angeles (213-469-4300), and Houston (713-629-9131).POLITICAL CONDITIONSThree political parties dominate the center of the Australianpolitical spectrum:  the Liberal Party (LP), nominally representingurban business-related groups; the National Party (NP), nominallyrepresenting rural interests; and the Australian Labor Party (ALP),nominally representing the trade unions and liberal groups.All political groups are tied by tradition to turn-of-the-centurydomestic welfare policies, which have kept Australia in theforefront of societies offering extensive social welfare programs.There is strong bipartisan sentiment on many international issues,including Australia's commitment to its alliance with the UnitedStates.The ALP came to power in a sweeping victory in March 1983 behindBob Hawke, the former head of the Australian Council of TradeUnions, who went on to become Prime Minister.  Under the leadershipof Paul Keating, the ALP was returned for a fifth consecutivevictory.Although embracing some leftists, the ALP traditionally has beenmoderately socialist in its policies and approaches to social issues.The current ALP government, however, generally has pursuedmarket-oriented, competitive economic policies.The ALP, as of 1993, holds 80 seats in the House of Representativesagainst 49 for the Liberal Party, 16 for the National Party, and twofor independents.  In the Senate, the Australian Labor Party holds 30of the 76 seats, the Liberal Party holds 30, and the National Partyholds 6.  The Australian Democrats--a small party originally linkedto the Liberal Party--has seven, and there is one independent.  Thus,the ALP lacks a majority in the Senate.  This can be importantbecause budgetary legislation, while originating in the House, mustbe approved by the Senate.  Repeated refusal by the Liberal/Nationalopposition in the Senate to approve the budget in 1975 led todissolution of the then-Labor government by the governor general.ECONOMYThe Australian economy consists of export-oriented agricultural andmining sectors coupled with a diverse manufacturing sectordedicated to domestic requirements.  Balance of payments arestrongly affected by world prices of primary products:  In 1993, 62%of all exports were primary agricultural or mineral products.Australia is one of the world's leading producers and exporters ofminerals such as aluminum, alumina, bauxite, cobalt, copper,industrial diamonds, gold, iron, lead, nickel, and silver.  In addition,abundant supplies of coal, natural gas, liquid, petroleum gas, anduranium make Australia a leading exporter of energy products.Historically, the manufacturing sector has been protected fromforeign competition by trade barriers and subsidies, which havediscouraged industrial modernization and productivity as well asexports.  This sector is diversified but has a small domestic marketand labor force and relatively high labor costs fostered by strongunions.Since 1984, the government has moved to reduce or eliminate tariffsand sectoral assistance.  Under the government's tariff reductionprogram, most tariffs will be reduced to 5% by 1996.  Corporatetaxes have been cut significantly.  Unions have agreed to gradualreductions in real wages.  The financial sector was liberalized andopened to international competition.  Exports of manufacturedproducts have increased, and the percentage of primary agriculturalor mineral exports has decreased by 5% since 1990.Foreign investment has been vital in the development of Australianranching, transportation, and manufacturing.  The governmentwelcomes foreign investment, particularly if it is for export-oriented industries and creates employment opportunities.  Somerestrictions on foreign ownership exist for the media, civil aviation,mining, and certain kinds of real estate.  In 1992-93, cumulative U.S.investment in Australia totaled more than $48 billion and accountedfor 21% of total foreign investment.Australia is still recovering from a 1990-91 recession.  The realgross domestic product grew by 2.5% in 1992, and businessinvestment is improving.  Inflation has been reduced from 8% to 3%.However, unemployment remains at about 11%.Over the long term, Australia's economic prospects generally arebright.  The successful conclusion of the General Agreement onTariffs and Trade Uruguay Round of trade liberalization negotiationsshould boost overall economic activity, exports, and employment.  Inaddition, the integration of the Australian economy into the rapidlygrowing Asia-Pacific region and the increasing emphasis on usingthe Asia-Pacific Economic Cooperation (APEC) forum to advanceregional economic liberalization should boost future growth.FOREIGN RELATIONSAustralia has been active in international affairs since World War II.Its first major independent foreign policy action was to conclude anagreement in 1944 with New Zealand dealing with the security,welfare, and advancement of the people of the independentterritories of the Pacific (the ANZAC pact).After the war, Australia played a role in the Far Eastern Commissionin Japan and supported Indonesian independence during that country'srevolt against the Dutch (1945-49).  Australia was one of thefounders of the South Pacific Commission (1947), and in 1950, itproposed the Colombo Plan to assist developing countries in Asia.  Inaddition to contributing to UN forces in Korea (it was the firstcountry after the United States to announce it would do so),Australia sent troops to assist in putting down the communistrevolt in Malaya in 1948-60 and later to combat the Indonesian-supported invasion of Sarawak in 1963-65.  Australia also senttroops to assist South Vietnamese and U.S. forces in Vietnam andjoined coalition forces in the Persian Gulf war in 1991.Australia has been active in the Australia-New Zealand-U.K.agreement and the Five-Power Defense Arrangement, successivearrangements with Britain and New Zealand to ensure the security ofSingapore and Malaysia.One of the drafters of the UN Charter, Australia has given firmsupport to the United Nations and its specialized agencies.  It was amember of the Security Council in 1986-87, a member of theEconomic and Social Council for 1986-89, and currently is a memberof the UN Human Rights Commission.Australia takes a prominent part in many other UN activities,including peacekeeping, disarmament negotiations, and narcoticscontrol.  Australia also is active in meetings of the CommonwealthRegional Heads of Government and the South Pacific Forum and hasbeen a leader in the Cairns Group (countries pressing for agriculturaltrade reform in the Uruguay Round of GATT and in the APECgrouping).Australia has devoted particular attention to relations betweendeveloped and developing nations, with emphasis on the countries ofthe Association of Southeast Asian Nations--Indonesia, Singapore,Malaysia, Thailand, the Philippines, and Brunei--and the islandstates of the South Pacific.Australia has a large bilateral aid program (about $1.3 billion for1991-92, mostly as grants) under which some 80 countries receiveassistance.  Papua New Guinea, a former Australian trust territory,is the largest recipient of Australian assistance.ANZUS AND DEFENSEThe Australia, New Zealand, United States (ANZUS) security treatywas concluded at San Francisco in September 1951, and entered intoforce in April 1952.  The treaty bound the signatories to recognizethat an armed attack in the Pacific area on any of them wouldendanger the peace and safety of the others.  It committed them toconsult in the event of a threat and, in the event of an attack, tomeet the common danger in accordance with their respectiveconstitutional processes.  The three nations also pledged to maintainand develop individual and collective capabilities to resist attack.In 1985, the nature of the ANZUS alliance changed after theGovernment of New Zealand refused access to its ports by nuclear-weapons-capable and nuclear-powered ships of the U.S. Navy.  TheUnited States suspended defense obligations to New Zealand, andannual bilateral meetings between the U.S. Secretary of State andthe Australian Foreign Minister replaced annual meetings of theANZUS Council of Foreign Ministers.  The first bilateral meeting washeld in Canberra in 1985.  At the second, in San Francisco in 1986,the United States and Australia announced that the United Stateswas suspending its treaty security obligations to New Zealandpending the restoration of port access.  Subsequent bilateralministerial meetings have alternated between Australia and theUnited States.The U.S.-Australia alliance under the ANZUS treaty remains in fullforce.  Defense ministers of one or both nations often have joinedthe annual ministerial meetings, which are supplemented byconsultations between the U.S. Pacific Commander and theAustralian Chief of Defense Force.  There also are regular civilianand military consultations between the two governments at lowerlevels.Unlike NATO, ANZUS has no integrated defense structure or dedicatedforces.  However, in fulfillment of ANZUS obligations, Australia andthe United States conduct a variety of joint activities.  Theseinclude military exercises ranging from naval and landing exercisesat the task-group level to battalion-level special forces training,assigning officers to each other's armed services, and standardizing,where possible, equipment and operational doctrine.The two countries also operate several joint defense facilities inAustralia. The active duty Australian Defense Force numbers about66,000.  Personnel strength is 31,000 in the army, 15,000 in thenavy, and 22,000 in the air force.  Another 13,000 are involved insupport, development, and command activities.  The Royal AustralianNavy's frontline fleet has three guided-missile destroyers, sixguided-missile frigates, three destroyer escorts, and five Oberon-class submarines.  The F/A-18 fighter, built in Australia underlicense from the manufacturer, is the principal combat aircraft ofthe Royal Australian Air Force.U.S.-AUSTRALIAN RELATIONSThe World War II experience, similarities in culture and historicalbackground, and shared democratic values have made U.S. relationswith Australia exceptionally close.  Ties linking the two nationscover the entire spectrum of international relations, fromcommercial and cultural contacts to political and defensecooperation.Traditional friendship is reinforced by the wide range of commoninterests and similar views on most major international questions.For example, both countries called for the Soviet Union to withdrawits troops from Afghanistan; both sent military forces to thePersian Gulf in support of UN Security Council resolutionsresponding to Iraq's occupation of Kuwait; and both attach highpriority to controlling and eventually eliminating chemical weapons.The Australian Government and the opposition share the view thatAustralia's security depends on firm ties with the United States, andthe ANZUS treaty enjoys broad bipartisan support.Frictions sometimes arise in trade relations, however.  In recentyears, the Australians have protested what they consider U.S.protectionist barriers against their exports of wool, meat, dairyproducts, lead, zinc, and uranium.  At various times, Australia hasexpressed concern about the spillover effect on world trade of U.S.inflation, government deficits, and agricultural policies.Multilaterally, Australia and the United States work together veryclosely in the General Agreement on Tariffs and Trade for theelimination of subsidies and import barriers in world agriculturalmarkets.  In addition, both are active members of the Asia-PacificEconomic Cooperation group.A number of U.S. institutions conduct scientific activities inAustralia because of its geographical position, large land mass,advanced technology, and, above all, the ready cooperation of itsgovernment and scientists.  The U.S. and Australia are nownegotiating a new science and technology agreement to replace onedating back to 1968.  Under a separate agreement concluded in thesame year, and since renewed, the U.S. National Aeronautics andSpace Administration maintains in Australia its largest and mostimportant program outside the United States, including a number oftracking facilities vital to the US space program.Principal U.S. Embassy OfficialsAmbassador--Edward J. PerkinsDeputy Chief of Mission--Marilyn A. MeyersEconomic Counselor--Stuart AllanPolitical Counselor--Mort DworkenAdministrative Counselor--George E. KnightPublic Affairs Officer--Guy W. FarmerDefense and Air Attache and Representative of the U.S. PacificCommander--Col. Max Marosko, USAFAgricultural Counselor--James TruranNASA Representative--Ted AnkrumSenior Commercial Officer--Michael Hand (resident in Sydney)The U.S. embassy in Australia is located at Moonah Place,Yarralumla, Canberra, Australian Capital Territory 2600 (tel. [phone]).  Consulates general are in Sydney (2-373-9200), Melbourne(3-526-5900), and Perth (9-231-9400).  There is a consulate inBrisbane (7-839-8955).Further InformationAvailable from the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC 20402:American University:  Area Handbook for Australia.  1974.For information on foreign economic trends, commercialdevelopment, production, trade regulations, and tariff rates, contactthe International Trade Administration, U.S. Department ofCommerce, Washington, DC 20230.This information also is available from any Commerce Departmentdistrict office.Travel NotesClimate and clothing:  Most of southern Australia has warm summersand mild winters (seasons are the reverse of those in the NorthernHemisphere).  Lightweight clothing can be worn year-round except inthe more temperate regions during winter; warmer clothes and anovercoat are then required.Customs: In general, when visitors arrive in Australia they mustpresent a visitor's visa (usually valid for multiple entries within 5years of issue or until passport expires) and a return or onwardpassage ticket.  Stays of 6 months per entry may be permitted.Immunizations are not usually required for travelers when arrivingdirectly from the United States, New Zealand, or Europe.  Healthrequirements change; before departure, check with an airline ticketoffice, the Australian Embassy in Washington, DC, or the nearestAustralian consulate general. No restrictions are placed on bringingU.S. dollars into or out of Australia; however, no more than 5,000Australian dollars in Australian currency notes may be taken out.Letters of credit, travelers checks, and U.S. currency are freelynegotiable.  A tourist's personal property generally is exempt fromcustoms duty.  Pets are allowed entry only after long periods ofquarantine outside Australia, if at all.Health: Australia has no unusual health problems or serious endemicdiseases, and no special health precautions are necessary fortourists.  Hospitals are modern.Telecommunications:  Reliable international telephone, telegraph,telex, and postal services are available.Time zones:  Australia has three time zones.  When the U.S. eastcoast is on daylight saving time, the Australian east coast is 14hours ahead, i.e., 6 p.m. eastern daylight time is 8 a.m. the next dayon the Australian east coast.  When the U.S. resumes standard time,the difference generally becomes 16 hours.Published by the U.S. Department of State -- Bureau of PublicAffairs, Office of Public Communication -- Washington, DC, 20520.February 1994 -- Managing Editor:  Peter A. KnechtDepartment of State Publication 8149 -- Background Notes SeriesContents of this publication are not copyrighted unless indicated.  Ifnot copyrighted, the material may be reproduced without consent;citation of the publication as the source is appreciated.  Permissionto reproduce any copyrighted material (including photos andgraphics) must be obtained from the original source.For sale by the Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, DC 20402.</text>
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  ARGENTINAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Republic of ArgentinaPROFILEGeographyArea:  2.8 million sq. km. (1.1 million sq. mi.); about the size of the U.S. east of the Mississippi River.  Cities:  Capital--Buenos Aires (city 3 million:  metropolitan area 12 million).  Other major cities--Cordoba, Rosario, La Plata, Mendoza.  Terrain:  Andes Mountains to long coastal regions; vast grassy plains (pampas).  Climate:  Varied, predominantly temperate.PeopleNationality:  Noun and adjective--Argentine(s).  Population:  33 million.  Annual growth rate:  1.4%.  Ethnic groups:  European 97%, mostly Spanish and Italian.  Religions:  Roman Catholic 92%, Protestant 2%, Jewish 2%, other 4%.  Languages:  Spanish (official), English, Italian, German, French.  Education:  Years compulsory--7.  Adult literacy--95%.  Health:  Infant mortality rate--31/1,000.  Life expectancy--68 yrs. male, 74 yrs. female.  Work force:  Industry and commerce--36%.  Services--20%.  Agriculture--19%.  Transport and communications--6%.GovernmentType:  Republic.  Independence:  July 9, 1816.  Constitution:  1853.Branches:  Executive--president, vice president, cabinet.  Legislative--bicameral congress (48-member Senate, 257-member Chamber of Deputies).  The Senate will expand to 72 members in 1995.  Judicial--Supreme Court.Subdivisions:  23 provinces and one federal capital district.Political parties:  Justicialista, Radical Civic Union, Broad Front, Movement for National Independence and Dignity, numerous smaller national and provincial parties.Suffrage:  Universal adult.Economy (1993)GDP:  $255 billion.Annual growth rate:  6.4%.Per capita GDP:  $7,600.Natural resources:  Fertile plains (pampas).  Minerals--lead, zinc, tin, copper, iron, manganese, oil, uranium.Agriculture (70% of GDP, about 70% of exports by value):  Products--grains, oilseeds and by-products, livestock products.Industry (21% of GDP):  Types--food processing, motor vehicles, consumer durables, textiles, metallurgy, chemicals.Trade:  Exports--$13 billion (U.S.--10%):  grains, meats, oilseeds.  Imports--$16.8 billion (U.S.--23%):  machinery, fuel and lubricating oils, iron and steel products, wood and lumber, automotive equipment and parts, chemicals.  Major trading partners--European Union, Japan, U.S., Brazil.Exchange rate:  U.S. $1=1 peso.  PEOPLEArgentines are a fusion of diverse national and ethnic groups.  Descendants of Italian and Spanish immigrants predominate.  Waves of immigrants from many European countries arrived in the late 19th and early 20th centuries.  Syrian, Lebanese, and other Middle Eastern immigrants number about 500,000, mainly in urban areas.  In recent years, there has been a substantial influx of immigrants from neighboring Latin American countries.  The native Indian population, now estimated at 50,000, is concentrated in the peripheral provinces of the north, northwest, and south.  The Argentine population has one of Latin America's lowest growth rates (1.4%).  Eighty percent of the population resides in urban areas of more than 2,000 with more than one-third of the population living in the greater Buenos Aires area.  This sprawling metropolis, with about 12 million inhabitants, serves as the focus for national life.  Argentines enjoy comparatively high standards of living; half the population considers itself middle class.  More than 90% of Argentines are Roman Catholic.  Religious freedom is practiced, although all non-Catholic denominations are required to register with the government.  The Protestant community is small but active.  Argentina's Jewish community of about 350,000 is concentrated in Buenos Aires.The Argentine educational system is compulsory for grades one through seven, starting at age six.  The adult literacy rate is 95%--one of Latin America's highest.  Literary and artistic tastes have been influenced mainly by Western Europe and, more recently, by the United States.A large number of Spanish-language daily newspapers are published in the greater Buenos Aires area.  A dozen community newspapers are published in English, French, German, Greek, Hungarian, Italian, Japanese, Polish, Ukrainian, and Yiddish.  All the community newspapers are periodicals except the daily English-language Buenos Aires Herald.HISTORYEuropeans arrived in the region with the 1502 voyage of Amerigo Vespucci.  Spanish navigator Juan Diaz de Solis visited what is now Argentina 1516.  Spain established a permanent colony on the site of Buenos Aires in 1580.  They further integrated Argentina into their empire following the establishment of the Vice-Royalty of Rio de la Plata in 1776, and Buenos Aires became a flourishing port.Buenos Aires formally declared independence from Spain on July 9, 1816.  Argentines revere Gen. Jose de San Martin, who campaigned in Argentina, Chile, and Peru, as the hero of their national independence.  Following the defeat of the Spanish, centralist and federalist groups waged a lengthy conflict between themselves to determine the future structure of the nation.  National unity was established and the constitution promulgated in 1853.Two forces combined to create the modern Argentine nation in the late 19th century:  the introduction of modern agricultural techniques and the integration of Argentina into the world economy.  Foreign investment and immigration from Europe aided this economic revolution.  The investment, primarily British, came in such fields as railroads and ports.  The migrants who worked to develop Argentina's resources came from throughout Europe, but mostly from Italy and Spain.Conservative forces dominated Argentine politics until 1916, when their traditional rivals, the Radicals, won control of the government through a democratic election.  The Radicals, with their emphasis on fair elections and democratic institutions, opened their doors to Argentina's expanding middle class as well as to elites previously excluded from power for various reasons.  The Argentine military forced aged Radical President Hipolito Yrigoyen from power in 1930 and ushered in another decade of Conservative rule.  Using fraud and force when necessary, the governments of the 1930s attempted to contain forces for economic and political change that eventually helped produce the governments of Juan Domingo Peron, who lived from 1897 to 1974.  New social and political forces were seeking political power.  These included the modern military and the labor movement that emerged from the growing urban working class.The military ousted Argentina's constitutional government in 1943.  Peron, then an army colonel, was one of the coup's leaders, and he soon became the government's dominant figure as minister of labor.  Elections carried him to the presidency in 1946.  He aggressively pursued policies aimed at giving an economic and political voice to the working class and greatly expanded the number of unionized workers.  In 1947, Peron announced the first five-year plan based on nationalization and industrialization.  He presented himself as a friend of labor and assisted in establishing the powerful General Confederation of Labor (CGT).  Peron's dynamic wife, Eva Duarte de Peron (1919-52), helped her husband develop his appeals to labor and women's groups and helped women obtain the right to vote in 1947.Peron won re-election in 1952, but the military deposed him in 1955.  He went into exile, eventually settling in Spain.  In the 1950s and 1960s, military and civilian administrations traded power.  They tried, with limited success, to deal with diminished economic growth and continued social and labor demands.  When military governments failed to revive the economy and suppress escalating terrorism in the late 1960s and early 1970s, the way was open for Peron's return.On March 11, 1973, Argentina held general elections for the first time in 10 years.  Peron was prevented from running, but voters elected his stand-in, Dr. Hector J. Campora, to the presidency.  Peron's followers also commanded strong majorities in both houses of the National Congress, which assumed office on May 25, 1973.  Campora resigned in July 1973, paving the way for Raul Lastiri, a Peronist loyalist, to assume the presidency and call for new elections.  Peron won a decisive victory and returned as President in October 1973 with his third wife, Maria Estela Isabel Martinez de Peron, as Vice President.During this period, extremists on the left and right carried out terrorist acts with a frequency that threatened public order.  The government resorted to a number of emergency decrees, including the implementation of special executive authority to deal with violence.  This allowed the government to imprison persons indefinitely without charge.Peron died on July 1, 1974.  His wife succeeded him in office, but her administration was undermined by economic problems, Peronist intraparty struggles, and growing terrorism from both left and right.  A military coup removed her from office on March 24, 1976.  Until December 10, 1983, the armed forces formally exercised -power through a junta composed of the three service commanders.The armed forces applied harsh measures against terrorists and their sympathizers.  They silenced armed opposition and restored basic order.  Yet the costs were high in terms of lives lost and basic human rights violated.Serious economic problems, defeat by the U.K. in 1982 after an unsuccessful Argentine attempt to forcibly take control of the Falkland/Malvinas Islands, public revulsion in the face of severe human rights abuses, and mounting charges of corruption combined to discredit and discourage the military regime.  This prompted a period of gradual transition and led the country toward democratic rule.  Acting under public pressure, the junta lifted bans on political parties and restored other basic political liberties.  Argentina experienced a generally successful and peaceful return to democracy.On October 30, 1983, Argentines went to the polls to choose a president; vice president; and national, provincial, and local officials in elections international observers found to be fair, open, and honest.  The country returned to constitutional rule after Raul Alfonsin, candidate of the Radical Civic Union (UCR), received 52% of the popular vote for president.  He began a six-year term of office on December 10, 1983.  In 1985 and 1987, large turnouts for mid-term elections demonstrated continued public support for a strong and vigorous democratic system.  The UCR-led government took steps to resolve some of the nation's most pressing problems, including accounting for those who disappeared during military rule, establishing civilian control of the armed forces, and consolidating democratic institutions.  Constant friction with the military, failure to resolve endemic economic problems, and an inability to maintain public confidence undermined the Alfonsin Government's effectiveness.GOVERNMENT AND POLITICAL CONDITIONSIn May 1989, Justicialista Party (PJ) candidate Carlos Saul Menem defeated the UCR's Eduardo Angeloz to win the Argentine presidency with 47% of the vote and a clear majority in the nation's electoral college.  The PJ is the inheritor of the Peronist political tradition.  Menem began his six-year term of office in June 1989.  The PJ and its allies also won control of congress.  Menem was to have succeeded Alfonsin in December 1989, but a rapidly deteriorating economy and resulting loss of confidence in the national government led Alfonsin to resign in July.  Menem succeeded to the presidency five months earlier than planned.  Despite the irregular nature of the transition, it marked the first transfer of power between democratically elected presidents in over 60 years.Menem surprised most observers, including members of his own party, by adopting policies diverging dramatically from Argentina's (and Peronism's) statist economic traditions.  On taking office, he initiated emergency economic and state reform legislation that cut government spending, increased revenues, and reduced state involvement in the economy.  In April 1991, the congress enacted a convertability law which fixed the Argentine currency to the U.S. dollar, prohibited financing of the government's fiscal deficit by the central bank, and declared all indexation schemes illegal.  Menem also moved quickly to privatize government-owned industries, such as the national airline and the telephone company.Building on a record of economic success, the  Justicialista Party won mid-term election in 1991 and 1993.  Menem struck a deal with UCR leader Alfonsin in December 1993 which prompted April 1994 elections for a constituent convention to revise the Argentine federal constitution.  The PJ won a plurality of seats at the convention, which met from May to August 1994.  The UCR suffered severe defeats in many traditional party strongholds.  The election saw the rise of a new political movement, the Broad Front, to national prominence.  The Broad Front, a center-left alliance, won the April election in the federal capital and the southern province of Neuquen and showed strength elsewhere in the country.  The convention abolished the traditional ban on an Argentine president succeeding him or herself in office.  Menem has announced he will seek reelection in 1995. Argentina is a republic.  The constitution of 1853 mandates a separation of powers into executive, legislative, and judicial branches at the national and provincial level.  Each province also has its own constitution which roughly mirrors the structure of the national constitution.The president and vice president have traditionally been indirectly elected to a single six-year term through an electoral college.  They have not been allowed to immediately run for re-election.  Constitutional reforms adopted in August 1994 reduced the presidential term to four years, abolished the electoral college in favor of direct election, and allowed a sitting president to stand for re-election after his or her first term.  Cabinet ministers are appointed by the president.  The constitution grants the president considerable power, including a line-item veto.  Provinces traditionally sent two senators, elected by provincial legislatures, to Congress.  Voters in the federal capital of Buenos Aires elected an electoral college which elected the city's senators.  The constitution now mandates a transition to direct election for all senators and the addition of a third senator from each province and the capital.  The third senator will represent the electoral district's largest minority party.  The revised constitution reduces senatorial terms from nine to six years in office.  One-third of the Senate stands for re-election every three years.  Members of the Chamber of Deputies are directly elected to four-year terms, with voters electing half the members of the lower house every two years through a system of proportional representation.Other important changes to the constitutional system included the creation of a senior coordinating minister to serve under the president and the popular election of the mayor of the city of Buenos Aires.The constitution establishes the judiciary as a separate and independent entity of government.  The president appoints members of the Supreme Court with the consent of the Senate.  Other federal judges are appointed by a special judicial commission.  The Supreme Court has the power, first asserted in 1854, to declare legislative acts unconstitutional.National SecurityThe president and a civilian minister of defense control the Argentine armed forces.  The paramilitary forces under the control of the ministry of defense are the gendarmeria, or border police, and the naval prefectura, or coast guard.The Argentine armed forces maintain close defense cooperation and military supply relationships with the United States.  Other countries also have military relationships with the Argentine forces, principally Israel, Germany, France, Spain, and Italy.  The lack of budgetary resources is the most serious problem facing the Argentine military.  Current economic conditions and the government's commitment to reduce public sector spending have slowed modernization and restructuring efforts.Principal Government OfficialsPresident--Carlos Saul MenemMinister of External Relations and Worship--Guido DiTellaAmbassador to the United States--Raul Enrique Granillo OcampoAmbassador to the OAS--Hernan Patino MayerAmbassador to the UN--Emilio Jorge CardenasArgentina maintains an embassy in the United States at 1600 New Hampshire Ave., NW, Washington, DC 20009 (tel. [phone]; FAX:  [phone]).  Argentina has consulates general in Houston, Miami, New York, New Orleans, San Francisco, and San Juan and consulates in Baltimore, Chicago, and Los Angeles.ECONOMYArgentina has impressive human and natural resources, but political conflict and uneven economic performance over the last 50 years have impeded full realization of its potential.  Nonetheless, it remains one of Latin America's richest countries.President Menem took office in July 1989 and, amid hyperinflation (198% that month), moved quickly to re-establish economic stability.  He has brought the fiscal deficit under control and reduced the intrusive role the state had played for decades in all aspects of Argentina's economic life.  Since February 1991, Domingo Cavallo, Minister of Economy, has implemented economic reform and pursued fiscal responsibility that has reduced inflation to 10.6% and reversed decades of economic decline.Argentina's successes have generated international support.  The International Monetary Fund approved a stand-by program in June 1991 and an extended funding facility in March 1992.  Argentina also received substantial support from  other international lenders.  Its debt with commercial banks, including $7 billion in arrears, has been restructured under the U.S. Brady Plan for assisting developing countries in reducing debt.Argentina's richest natural resource is the fertile, temperate plain known as the pampas, which fans out almost 800 km. (500 mi.) west of Buenos Aires.  It produces large quantities of wheat, corn, sorghum, soybeans, and sunflower seeds and offers year-round pasturage for Argentina's cattle industry.  Argentina is one of the world's largest exporters of foodstuffs.  Argentina exports to a variety of worldwide buyers.  Iran, Brazil, and China are major buyers.  Argentina also exports agricultural goods to the United States (primarily canned, precooked, and frozen beef; tobacco; and fruits and fruit products).Argentina obtains about 23% of its imports from the United States.  Total imports in 1993 were $16.8 billion, of which $3.8 billion was from the United States.  Capital equipment, computers and peripherals, telecommunications, chemicals, and electronic components were the principal U.S. items sold to Argentina.  In 1993, Argentina exported $13 billion worth of goods and services, petroleum products and manufactured goods as well as agricultural goods and primary resources; $1.3 billion (10%) went to the United States.Argentina was a net energy exporter in 1993.  It has significant reserves of petroleum and natural gas.  The Menem Government opened the petroleum sector to private development and, as a result, petroleum production has expanded greatly.  Significant deregulation of the petroleum sector, including price controls, took effect in 1991.  In July 1993, Argentina privatized YPF, the state oil company and the country's biggest corporation, via the largest initial stock offering in the New York Stock Exchange, which brought in more than $3 billion.Argentina also has a large electric production capacity, mostly from hydroelectric sources.  The first of 20 generators at Yacyreta, the massive hydroelectric project (2,400 megawatts) being constructed with Paraguay and scheduled for completion in 1998, was activated in early September 1994.  Argentina has the most advanced nuclear program in Latin America; nuclear power provides some 13% of the country's electrical needs.  Two nuclear power plants are completed, and a third is under construction.  Argentina also exports nuclear technology and assistance.  The Menem Government which has already privatized most federally-owned electric generation, transmission, and distribution facilities, also plans to privatize the nuclear energy sector.FOREIGN RELATIONSArgentina increasingly pursues a pragmatic foreign policy and maintains relations with almost all countries.  Support for democracy and the promotion of increased trade and investment are major priorities.  Argentina's relations have traditionally been closest with Western Europe, the United States, and its Latin American neighbors.  President Menem has worked hard to improve relations with the United States and Europe while encouraging Latin American regional integration.Argentina settled its Beagle Channel dispute with Chile in 1984-85.  The two countries have also submitted a dispute over an ill-defined section of their border in the southern Andes to international arbitration.  A settlement is likely in 1995.  Argentina's one active territorial dispute is with the United Kingdom over a group of islands northeast of Cape Horn.  The Argentines refer to the islands as the Malvinas Islands.  The U.K. calls them the Falkland Islands.  Historically, European powers, notably the U.K. and Spain, claimed the islands.  In the early 1800s, Spanish and the Argentine authorities administered them.  However, in 1833, the U.K. reasserted sovereignty and made the islands first a crown colony and later a self-governing dependency.In an effort to reestablish Argentina's sovereignty claim, Argentine military forces occupied the islands on April 2, 1982.  After a brief and costly war, the Argentine forces were defeated and expelled.  Direct talks between the Argentine and U.K. Governments leading to the reestablishment of diplomatic relations began in September 1989. The talks took place under a formula that separated the sovereignty question from matters affecting other bilateral relations.  The two governments restored diplomatic ties in February 1990.  Argentina continues to claim sovereignty over the islands and presses its case in a variety of international forums, but it has foresworn force as a means of recovering the islands.  The United States has taken no position on the merits of the two countries' sovereignty claims but supports a peaceful resolution of the dispute.U.S.-ARGENTINE RELATIONSThe United States and Argentina have maintained diplomatic relations since 1823.  Both countries have sought a constructive relationship based on reciprocal respect and understanding, but bilateral relations have often been turbulent.In the 1970s, U.S.-Argentine relations entered a particularly difficult period.  The U.S. Government, concerned about serious human rights violations by the Argentine military government in the campaign against terrorism, restricted both military assistance and the sales of military and other controlled-export items to Argentina.  The U.S. Congress prohibited both military sales and assistance.  The Argentine Government consistently maintained that these actions were attempts to influence domestic politics.  In the early 1980s, better relations seemed possible as the Argentine military authorities demonstrated some improvements in their human rights record.  The Falklands/Malvinas War, however, placed additional strains on bilateral relations.  The U.S. position on the non-use of force for the resolution of disputes led the United States to impose new sanctions on Argentina and to provide limited assistance to the United Kingdom in its campaign to regain the islands.Relations improved after the war.  Sanctions imposed during the fighting were lifted, and the United States supported Argentine-sponsored UN resolutions calling for renewed negotiations on the Falklands/Malvinas dispute.  The United States encouraged resumption of a direct dialogue between Argentina and the United Kingdom.The Argentine human rights situation and political climate improved dramatically following the military's mid-1982 decision to return the country to democracy.  During 1983, all remaining political prisoners being held without trial under state-of-siege powers were released.  Also in 1983, the nine-year-old state of siege was lifted, and restrictions on trade union activities and press censorship virtually ceased.  The U.S. Government removed legal prohibitions on military sales upon the inauguration of the democratically elected government of President Alfonsin in December 1983.  Since the return of democratic government, the United States and Argentine armed forces have developed a mutually beneficial defense relationship through professional exchanges, visits, training, and joint exercises.  There are modest military education, training, and military sales programs.Since 1983, bilateral relations, based on shared democratic values, have improved.  President Alfonsin made a state visit to the United States in March 1985, the first such visit by an Argentine President in 24 years.  President Menem, who succeeded Alfonsin in 1989, also made a state visit to the U.S. in November 1991, reciprocating President Bush's visit to Argentina in December 1990.Argentina maintains an independent and pro-Western stance in world affairs and cooperates with the United States in resolving bilateral differences.  The countries consult frequently on hemispheric and other international issues.  Argentina has agreed with the U.S. position on human rights in Cuba and the 1991 coup in Haiti.  In recent years, Argentina also sent ships from its Navy to participate in the UN-coordinated military action in the Persian Gulf and the UN-sponsored embargo of Haiti.  Argentina strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  Argentina agreed to contribute personnel to the Multinational Force, which restored the democratically-elected Government of Haiti in October 1994.  It has contributed peace-keeping forces to UN operations in, among other places, Croatia and Mozambique.As a result of Argentina's relative prosperity by 1971, the United States phased out bilateral economic assistance.  U.S.AID currently finances a small administration of justice program in Argentina.  From 1992 to 1994 a small group of Peace Corps volunteers worked in Argentina.Many U.S. industrial firms and banks maintain subsidiaries in Argentina.  Licensing agreements with local companies are common.  U.S. private investment totals more than $8 billion, primarily in the manufacturing of chemicals, agricultural equipment, transportation equipment; banking and petroleum.  Several thousand U.S. citizens reside in Argentina.Principal U.S. Embassy OfficialsAmbassador--James R. CheekDeputy Chief of Mission--Ronald D. GodardCounselor for Agricultural Affairs--Max BowserCounselor for Public Affairs--Ernesto UribeCounselor for Scientific and Technological Affairs--Kenneth D. CohenCounselor for Political Affairs--William J. BrencickCounselor for Consular Affairs--Nicholas J. RicciutiCounselor for Economic Affairs--Peter D. WhitneyLabor Attache--Randolph I. MarcusCounselor for Administrative Affairs--John M. SalazarCounselor for Commercial Affairs--Arthur A. AlexanderDefense Attache and Air Attache--Col. Wayne Fisher, USAFDrug Enforcement Administration--Terry ParhamMilitary Group--Col. Jose A. RodriguezThe U.S. embassy in Argentina is located at 4300 Colombia, Buenos Aires 1425.  The APO address for the embassy is APO, AA 34034-0001 (tel. [phone]; FAX:  [phone]. (###)</text>
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card_4351.xml
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        <text>U.S. DEPARTMENT OF STATEBACKGROUND NOTES:  ANTIGUA AND BARBUDAPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSNOVEMBER 1994Official Name:  Antigua and BarbudaPROFILEGeography Area:  Antigua--281 sq. km. (108 sq. mi.);  Barbuda--161 sq. km. (62 sq. mi.).  Cities:  Capital--St. Johns (pop.  30,000).Terrain:  Generally low-lying, with highest elevation 405 m. (1,330 ft.).Climate:  Tropical maritime. PeopleNationality:  Noun and adjective--Antiguan(s), Barbudan(s).Population:  64,000.Annual growth rate:  1%.Ethnic groups:  Almost entirely of African origin; some of British, Portuguese, Lebanese, and Syrian origin.Religions:  Principally Anglican, with evangelical Protestant and Roman Catholic minorities.Language:  English (official), local dialects.Education:  Years compulsory--9.  Literacy--about 90%.Health:  Life expectancy--71 yrs. male, 75 yrs. female.  Infant mortality rate--19/1,000.Work force (32,000):  Sectors--commerce and services, agriculture, other industry.GovernmentType:  Constitutional monarchy with Westminster-style parliament.Constitution:  1981.Independence:  November 1, 1981.Branches:  Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), and cabinet.  Legislative--a 17-member Senate appointed by the governor general (mainly on the advice of the prime minister and the leader of the opposition) and a 17-member popularly elected House of Representatives.  Judicial--Court of Appeal, chief justice, five justices.Administrative subdivisions:  Six parishes and two dependencies (Barbuda and Redonda).Political parties:  Antigua Labor Party (ruling), United National Democratic Party, Antigua Caribbean Liberation Movement.Suffrage:  Universal at 18.Economy GDP (1991):  $411 million.Annual growth rate (1991):  2.6%.Per capita GDP:  $6,500.Natural resources:  Negligible.Agriculture (4% of GDP):  Products--cotton, livestock, vegetables.Industry:  Types--tourism 40%, transport 12%, construction 9%, manufacturing 3%.Trade (1991 est.):  Exports--$32 mil-lion.  Trading partners--CARICOM, U.S.  Imports--$353 million.  Trading partners--U.S., CARICOM, U.K.Official exchange rate:  Eastern Caribbean $2.70=U.S. $1.  PEOPLE AND HISTORYAntigua was first inhabited by the Siboney ("stone people"), whose settlements date at least to 2400 BC.  Between 35 and 1100 AD, the Arawak people resided on Antigua.  This group originated in Venezuela and gradually migrated up the chain of islands now called the Lesser Antilles.  The warlike Carib people drove out the Arawak from strongholds on neighboring islands but apparently did not settle on either Antigua or Barbuda.Christopher Columbus landed on the islands in 1493, naming the larger one "Santa Maria de la Antigua."  The English colonized in 1632.  Sir Christopher Codrington established the first large sugar estate in Antigua in 1674 and leased Barbuda to raise provisions for his plantations.  Barbuda's only village is named for him.  Codrington and others brought slaves from Africa's west coast to work the plantations.Antiguan slaves were emancipated in 1834 but remained bound to their plantation owners.  Economic opportunities for the new freedmen were limited by a lack of surplus farming land, no access to credit, and an economy built on agriculture rather than manufacturing.  Poor labor conditions persisted until 1939, when a member of a royal commission urged the formation of a trade union movement.The Antigua Trades and Labor Union, formed shortly afterward, became the political vehicle for Vere Cornwall Bird, who became the union's president in 1943.  The Antigua Labor Party (ALP), formed by Bird and other trade unionists, first ran candidates in the 1946 elections, beginning a long history of electoral victories.Voted out of office in the 1971 general elections that swept the Progressive Labor Movement into power, Bird and the ALP returned to office in 1976; the party won renewed mandates in the general elections in 1984 and 1989.  In the 1989 elections, the ruling ALP won all but two of the 17 seats.During elections in March 1994, power passed from Vere Bird to his son Lester Bird but remained within the Antigua Labor Party.  The ALP won 10 of the 17 parliamentary seats.GOVERNMENT AND POLITICAL CONDITIONSAs head of the Commonwealth, Queen Elizabeth II is represented in Antigua and Barbuda by a governor general who acts on the advice of the prime minister and the cabinet.Antigua and Barbuda has a bicameral legislature:  a 17-member Senate appointed by the governor general--mainly on the advice of the prime minister and the leader of the opposition--and a 17-member popularly elected House of Representatives.  The prime minister is the leader of the majority party in the House and conducts affairs of state with the cabinet.  The prime minister and the cabinet are responsible to the parliament, which normally has a life of five years.Antiguans have enjoyed a long history of free and fair elections with peaceful changes of government. Constitutional safeguards include freedom of speech, press, worship, movement, and association.  Like its neighbors in the English-speaking Caribbean, Antigua and Barbuda has an excellent human rights record.  Its judicial system is modeled on British practice and procedure and its jurisprudence on English Common Law. Principal Government Officials Chief of State--Queen Elizabeth IIGovernor General--Sir Wilfred Ebenezer Jacobs Prime Minister and Minister of Foreign Affairs--Lester Bryant BirdAmbassador to the U.S. and the OAS--Patrick Albert Lewis Ambassador to the United Nations--Lionel A. Hurst Antigua and Barbuda maintain an embassy in the United States at 3216 New Mexico Ave., NW, Washington, DC 20016 (tel. [phone]).ECONOMYSugar cultivation was Antigua and Barbuda's major export earner until 1960, when prices fell dramatically and crippled the industry.  By 1972, the industry was largely dismantled.  The agricultural pattern in Antigua has shifted to a multiple cropping system.  Fruit and vegetable production predominates, but the Antiguan Government has encouraged investment in livestock, cotton, and export-oriented food crops.Currently, the economy is based on services rather than manufacturing.  Tourism is the backbone of the economy, and the major source of visitors is the United States.  Tourism is the principal source of foreign exchange for the country and directly produces about 17% of the gross domestic product and indirectly at least 40%.  Antigua and Barbuda have more than 3,300 hotel rooms to accommodate tourists.For the most part, the environment for private sector investment and business activity in Antigua is excellent.  The government encourages both domestic and foreign private investment.  Government policies provide liberal tax holidays, duty-free import of equipment and materials, and subsidies for training provided to local personnel.  Private business also benefits from a stable political environment, good transportation to and from the island, a relatively low-cost work force, and a pleasant climate.  The country also has a reasonably sound infrastructure.Nontraditional exports have grown in importance in recent years.  Foreign investors, lured by Antigua's good transportation connections to North America and Europe, have set up light manufacturing industries on the island, primarily in the finished textile and electronic component assembly sectors. Antigua and Barbuda are beneficiaries of the U.S. Caribbean Basin Initiative.  They also belong to the 13-member Caribbean Community and Common Market (CARICOM), which has signed a framework agreement with the United States to promote trade and investment in the region.FOREIGN RELATIONSAntigua maintains diplomatic relations with the United States, Canada, the United Kingdom, and China, as well as with many Latin American countries and neighboring Eastern Caribbean states.  It is a member of the Commonwealth, the United Nations, the Organization of American States, the Organization of Eastern Caribbean States, and the Caribbean Regional Security System.As a member of CARICOM, Antigua and Barbuda strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power.  The country agreed to contribute personnel to the Multinational Force, which restored the democratically elected Government of Haiti in October 1994.U.S.-ANTIGUA AND BARBUDA RELATIONS Since Antigua's independence in 1981, U.S. relations with the island nation have been very friendly.  The United States seeks to help Antigua develop economically and to help strengthen its democratic political system.  Antigua and Barbuda is strategically placed in the Leeward Islands near maritime transport lanes of major importance to the United States.  Antigua affords U.S. citizens the same legal protections that its own citizens enjoy.  It is visited by more than 170,000 tourists from the United States and elsewhere each year and has become more popular with U.S. retirees.Antigua long has hosted a U.S. military presence.  Currently, a U.S. Air Force tracking facility and a naval training facility provide useful services for the United States, as well as jobs and income for Antiguans.  Antigua also benefits from a number of regional U.S. Agency for International Development (USAID) programs, although these programs will diminish with the FY 1996 closure of the regional USAID office in Barbados.Principal U.S. Embassy OfficialsAmbassador-designate--Jeanette W. HydeDeputy Chief of Mission--Tain P. TompkinsPolitical/Economic Counselor--Thomas R. HutsonConsul General--Dale ShafferRegional Labor Attache--Peggy ZabriskieEconomic-Commercial Officer--Carole JacksonPublic Affairs Officer--Tyrone KempUSAID Regional Director--Mosina JordanPeace Corps Director--James Scanlon (resident in St. Lucia)The United States maintains no official presence in Antigua.  The ambassador and embassy officers are resident in Barbados and travel to Antigua frequently.The U.S. embassy in Barbados is located in the Canadian Imperial Bank of Commerce Building, Broad Street, Bridgetown (tel:  [phone]; fax:  [phone]).   (###)</text>
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        <text>BACKGROUND NOTES:  AFGHANISTAN (CONTINUED)PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJULY 1994FOREIGN RELATIONSBefore the Soviet invasion, Afghanistan pursued a policyof neutrality and nonalignment in its foreign relations.In international forums, Afghanistan generally followedthe voting patterns of Asian and African non-alignedcountries.  Following the Marxist coup of April 1978, theTaraki Government developed significantly closer tieswith the Soviet Union and its communist satellites.After the December 1979 invasion, Afghanistan's foreignpolicy mirrored that of the Soviet Union.  Afghan foreignpolicy-makers attempted, with little success, to increasetheir regime's low standing in the non-communist world.With the signing of the Geneva accords, Najibullahunsuccessfully sought to end Afghanistan's isolationwithin the Islamic world and in the Non-Aligned Movement.Most Western countries, including the United States,maintained small diplomatic missions in Kabul during theSoviet occupation.  Many subsequently closed theirmissions due to instability and heavy fighting in Kabul.Although a few states have reestablished a diplomaticpresence in Kabul, most embassies, including that of theUnited States, remain closed.PakistanTwo areas--Pashtunistan and Baluchistan--have longcomplicated Afghanistan's relations with Pakistan.Controversies involving these areas date back to theestablishment of the Durand Line in 1893 dividing Pashtunand Baluch tribes living in Afghanistan from those livingin what later became Pakistan.  Afghanistan vigorouslyprotested the inclusion of Pashtun and Baluch areaswithin Pakistan without providing the inhabitants with anopportunity for self-determination.  Since 1947, thisproblem has led to incidents along the border, withextensive disruption of normal trade patterns.  The mostserious crisis lasted from September 1961 to June 1963,when diplomatic, trade, transit, and consular relationsbetween the countries were suspended.The 1978 Marxist coup further strained relations betweenthe two countries.  Pakistan took the lead diplomaticallyin the United Nations, the Non-Aligned Movement, and theOrganization of the Islamic Conference in opposing theSoviet occupation.  During the war against the Sovietoccupation, Pakistan served as the primary logisticalconduit for the Afghan resistance.  Pakistan, aided by UNagencies, private groups, and many friendly countries,continues to provide refuge to about 1.4 million Afghans.Much of Afghanistan remains dependent on Pakistani linksfor trade and travel to the outside world, and Pakistanviews Afghanistan as eventually becoming its primaryroute for trade with Central Asia.IranAfghanistan's relations with Iran have fluctuated overthe years, with periodic disputes over the water rightsof the Helmand River as the main issue of contention.Following the Soviet invasion, which Iran opposed,relations deteriorated.  The Iranian consulate in Heratclosed, as did the Afghan consulate in Mashhad.  TheIranians complained of periodic border violationsfollowing the Soviet invasion.  In 1985, they urgedfeuding Afghan Shi'a resistance groups to unite to opposethe Soviets.  Iran supported the cause of the Afghanresistance and provided limited financial and militaryassistance to rebel leaders who pledged loyalty to theIranian vision of Islamic revolution.  Iran providesrefuge to about 2 million Afghans.RussiaIn the 19th century, Afghanistan served as a strategicbuffer state between czarist Russia and the BritishEmpire in the sub-continent.  Afghanistan's relationswith Moscow became more cordial after the BolshevikRevolution in 1917.  The Soviet Union was the firstcountry to establish diplomatic relations withAfghanistan after the Third Anglo-Afghan war and signedan Afghan-Soviet non-aggression pact in 1921, which alsoprovided for Afghan transit rights through the SovietUnion.  Early Soviet assistance included financial aid,aircraft and attendant technical personnel, and telegraphoperators.The Soviets began a major economic assistance program inAfghanistan in the 1950s.  Between 1954 and 1978,Afghanistan received more than $1 billion in Soviet aid,including substantial military assistance.  In 1973, thetwo countries announced a $200-million assistanceagreement on gas and oil development, trade, transport,irrigation, and factory construction.  Following the 1979invasion, the Soviets augmented their large aidcommitments to shore up the Afghan economy and rebuildthe Afghan military.  They provided the Karmal regime anunprecedented $800 million.  The Soviet Union supportedthe Najibullah regime even after the withdrawal of Soviettroops in February 1989.  Today, unresolved questionsconcerning Soviet MIA/POWs in Afghanistan remain an issuebetween Russia and Afghanistan.Tajik rebels based in Afghanistan in July 1993 attacked aRussian border outpost in Tajikistan, killing 25 Russiansand prompting Russian retaliatory strikes which causedextensive damage in northern Afghanistan.  Reports ofAfghan support for the Tajik rebels have led to coolrelations between the two countries.TajikistanAfghanistan's relations with newly independent Tajikistanhave been complicated by ongoing political upheaval andcivil war in Tajikistan which spurred some 100,000 Tajiksto seek refuge in Afghanistan in late 1992 and early1993.  Tajik rebels seeking to overthrow the regime ofRussian-backed former communist Imamali Rahmanov beganoperating from Afghan bases and recruiting Tajik refugeesinto their ranks.  These rebels, reportedly aided byAfghans and a number of foreign Islamic extremists,conduct cross-border raids against Russian and Tajiksecurity posts and seek to infiltrate fighters andmateriel from Afghanistan into Tajikistan.U.S.-AFGHAN RELATIONSThe first extensive American contact with Afghanistan wasmade by Josiah Harlan, an adventurer from Pennsylvaniawho was an adviser in Afghan politics in the 1830s andreputedly inspired Rudyard Kipling's story, "The Man WhoWould be King."After the establishment of diplomatic relations in 1934,the U.S. policy of helping developing nations raise theirstandard of living was an important factor in maintainingand improving U.S.-Afghan ties.  From 1950 to 1979, U.S.foreign assistance provided Afghanistan with more than$500 million in loans, grants, and surplus agriculturalcommodities to develop transportation facilities,increase agricultural production, expand the educationalsystem, stimulate industry, and improve governmentadministration.In the 1950s, the U.S. declined Afghanistan's request fordefense cooperation but extended an economic assistanceprogram focused on the development of Afghanistan'sphysical infrastructure--roads, dams, and power plants.Later, U.S. aid shifted from infrastructure projects totechnical assistance programs to help develop the skillsneeded to build a modern economy.  The Peace Corps wasactive in Afghanistan between 1962 and 1979.After the April 1978 coup, relations deteriorated.  InFebruary 1979,  U.S. Ambassador Adolph Dubs was murderedafter Afghan security forces burst in on his kidnapers.The U.S. then reduced bilateral assistance and terminateda small military training program.  All remainingassistance agreements were ended after the Sovietinvasion.Following the Soviet invasion, the United Statessupported diplomatic efforts to achieve a Sovietwithdrawal.  In addition, generous U.S. contributions tothe refugee program in Pakistan played a major part inefforts to assist Afghans in need.  U.S. efforts alsoincluded helping Afghans living inside Afghanistan.  Thiscross-border humanitarian assistance program increasedAfghan self-sufficiency and helped Afghans resist Sovietattempts to drive civilians out of the rebel-dominatedcountryside.  During the period of Soviet occupation ofAfghanistan, the U.S. provided about $3 billion inmilitary and economic assistance to Afghans and theresistance movement.The U.S. Embassy in Kabul was closed in January 1989 forsecurity reasons.  The U.S. has supported the peacefulemergence of a broad-based government representative ofall Afghans and has been active in encouraging a UN rolein the national reconciliation process in Afghanistan.The U.S. provides financial aid for mine-clearingactivities and other humanitarian assistance to Afghansthrough international organizations.In addition to the efforts of the UN and other donors,the U.S. has provided $328 million in direct bilateralassistance to Afghanistan since 1985 through its cross-border program based in Islamabad, Pakistan.  However,assistance levels have fallen dramatically in recentyears due to overall budgetary constraints in the U.S.and the difficulties inherent in administering a cross-border aid program.  For these reasons, the program isscheduled for closure by the end of 1994.UN EFFORTSDuring the Soviet occupation, the United Nations washighly critical of the U.S.S.R.'s interference in theinternal affairs of Afghanistan and was instrumental inobtaining a negotiated Soviet withdrawal under the termsof the Geneva accords.In the aftermath of the accords and subsequent Sovietwithdrawal, the United Nations has assisted in therepatriation of refugees and has provided humanitarianaid such as health care, educational programs, and foodand has supported mine-clearing operations.  The UNDP andassociated agencies have undertaken a limited number ofdevelopment projects.  However, the UN reduced its rolein Afghanistan in 1992 in the wake of fierce factionalstrife in and around Kabul.  The UN Secretary General hasdesignated a personal representative to head the Officefor the Coordination of Humanitarian Assistance toAfghanistan (UNOCHA) and the Office of the SecretaryGeneral in Afghanistan and Pakistan (OSGAP), both basedin Islamabad, Pakistan.TRAVEL NOTESTravel advisory:  The U.S. Department of State warns allU.S. citizens not to travel to Afghanistan.  Westernersremain vulnerable to politically and criminally motivatedattacks and violence, including robbery, kidnaping, andhostage-taking.  Landmines are still prevalent throughoutthe countryside.  There is no U.S. embassy inAfghanistan, and no other diplomatic mission representsU.S. interests or provides consular services.Climate and clothing:  Kabul's climate is similar toDenver's, but drier and dustier.  Winter lasts fromDecember through February; summer, mid-May to mid-September.  Because of cultural sensitivities,conservative attire is essential.Customs:  Visas required.  No immunization requirementsat present, but this is subject to change.  Check latestinformation.Health:  No health controls or sanitation regulationsgovern the safety of foods in markets and restaurants.Travelers and foreign residents are advised to boildrinking water, cook fruits, vegetables, and meatsthoroughly, and not to consume local dairy products.Transportation:  Ariana Airlines provides internationalflights to and from Afghanistan.  Bakhtar Airlinesprovides internal flights between Kabul and regionalcenters such as Herat, Mazar-i-Sharif, and Kandahar.Taxis are available in Kabul; buses are often overcrowdedand uncomfortable.Telecommunications:  The reliability oftelecommunications into and out of Afghanistan is erraticat best.  Kabul is 9-1/2 hours ahead of Eastern standardtime.  Commercial cables from the U.S. may take severaldays to arrive under the best of circumstances.Published by the United States Department of State --Bureau of Public Affairs -- Office of  PublicCommunication -- Washington, DCManaging Editor:  Peter Knecht -- Editor:  Peter FreemanDepartment of State Publication 7795 -- Background NotesSeriesFor sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC  20402.</text>
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        <text>BACKGROUND NOTES:  AFGHANISTANPUBLISHED BY THE BUREAU OF PUBLIC AFFAIRSU.S. DEPARTMENT OF STATEJULY 1994Official Name:  Islamic State of AfghanistanPROFILEGeographyArea:  648,000 sq. km. (252,000 sq. mi.); slightlysmaller than Texas.  Cities (1993 est.):  Capital--Kabul(est. 800,000).  Other cities--Kandahar (226,000); Herat(177,000); Mazar-e-Sharif (131,000);  Jalalabad (58,000);Konduz (57,000).Terrain:  Landlocked;  mostly mountains and desert.Climate:  Dry, with cold winters and hot summers.PeopleNationality:  Noun and adjective--Afghan(s).Population:  17.7 million (1993 estimate, including about1.4 million refugees in Pakistan and 2 million refugeesin Iran).  Annual growth rate:  2.5% (1993 est.).Ethnic groups:  Pashtun, Tajik, Uzbek, Hazara, Aimaq,Turkmen, Baluch, Nuristani.Religions:  Sunni Muslim 84%, Shi'a Muslim 15%.Languages:  Pashto, Dari (Afghan Persian).Education: Years compulsory--6.  Literacy--about 29%.Health: Infant mortality rate (1993)--169 /1,000.  Lifeexpectancy (1992 est.)--45 yrs. (male); 43 yrs. (female).Work force:  Mostly in rural agriculture; number cannotbe estimated due to conflict.GovernmentType:  Afghanistan identifies itself as an "Islamicstate."Independence:  August 19, 1919 (from U.K.).Organization:  Interim government is a presidentialsystem with a prime minister and cabinet.Political parties:  The 10 major Afghan politicalfactions are largely based on the former resistanceorganizations.  About half are Islamist in orientation;the other are more traditional or secular.  PresidentBurhanuddin Rabbani's Jamiat-i-Islami (Islamic Society)and Prime Minister Gulbuddin Hekmatyar's Hezb-i-Islami(Islamic Party) have been bitter rivals for politicalinfluence in Afghanistan.Flag:  Adopted in 1992, the flag has three horizontalbands--green, white, and black--with the great seal ofAfghanistan superimposed on the bands.EconomyGDP:  $3 billion (1991 est.).Natural resources:  Natural gas, oil, coal, copper, talc,barites, sulfur, lead, zinc, iron, salt, precious andsemiprecious stones.Agriculture (at least 65% of GDP):  Wheat, corn, barley,rice, cotton, fruit, nuts, karakul pelts, wool, mutton.Industry (estimated 20% of GDP):  Small-scale productionfor domestic use of textiles, soap, furniture, shoes,fertilizer, and cement; handwoven carpets for export.Trade (1992 est.):  Exports--$1 billion:  carpets, rugs,fruit and nuts, natural gas, cotton, oil-cake, karakul.Major markets--Central Asian Republics, EEC, India,Pakistan.  Imports--$1.7 billion:  petroleum products,sugar, manufactured goods, edible oils, tea.   Majorsuppliers--Central Asian Republics, Japan, Singapore,France, India, Pakistan.1994 market exchange rate:  2,400 Afghanis=U.S. $1.PEOPLEAfghanistan's ethnically and linguistically mixedpopulation reflects its location astride historic tradeand invasion routes leading from Central Asia into Southand Southwest Asia.  Pashtuns are the dominant ethnicgroup, accounting for about 38% of the population.  Tajik(25%), Hazara (19%), Aimaq (6%), Uzbek (6%), Turkmen(2%), and other small groups are also represented.  Dari(Afghan Persian) and Pashto are official languages.  Dariis spoken by more than one-third of the population as afirst language and serves as a lingua franca for mostAfghans.  Tajik, Uzbek, and Turkmen are spoken widely inthe north.  More than 70 other languages and numerousdialects are also spoken by smaller groups throughout thecountry.Afghanistan is an Islamic country.  An estimated 84% ofthe population is Sunni;  the remainder is predominantlyShi'a, including Isma'ilis, Hazaras, and the Qizilbash.Despite attempts during the years of communist rule tosecularize Afghan society, Islamic practices stillpervade all aspects of life.  Likewise, Islamic religioustradition and codes provide the principal means ofcontrolling personal conduct and settling legal disputes.Excluding urban populations in the principal cities, mostAfghans are divided into clans and tribal groups, whichfollow centuries-old customs and religious practices.HISTORYAfghanistan, often called the crossroads of Central Asia,has had a turbulent history.  In 328 BC, Alexander theGreat entered the territory of present-day Afghanistan,then part of the Persian Empire, to capture Bactria(present-day Balkh).  Invasions by the Scythians, WhiteHuns, and Turks followed in succeeding centuries.  In AD642, Arabs invaded the entire region and introducedIslam.Arab rule quickly gave way to the Persians, whocontrolled the area until conquered by the TurkicGhaznavids in 998.  Mahmud of Ghazni (998-1030)consolidated the conquests of his predecessors and turnedGhazni into a great cultural center as well as a base forfrequent forays into India.  Following Mahmud's short-lived dynasty, various princes attempted to rule sectionsof the country until the Mongol invasion of 1219.  TheMongol invasion, led by Genghis Khan, resulted in thedestruction of many cities, including Herat, Ghazni, andBalkh, and the despoliation of fertile agriculturalareas.Following Genghis Khan's death in 1227, a succession ofpetty chieftains and princes struggled for supremacyuntil late in the 14th century, when one of hisdescendants, Tamerlane, incorporated Afghanistan into hisown vast Asian empire.  Babur, a descendant of Tamerlaneand the founder of India's Moghul dynasty at thebeginning of the 16th century, made Kabul the capital ofan Afghan principality.In 1747, Ahmad Shah Durrani, the founder of what is knowntoday as Afghanistan, established his rule.  A Pashtun,Durrani was elected king by a tribal council after theassassination of the Persian ruler Nadir Shah atKhabushan in the same year.  Throughout his reign,Durrani consolidated chieftainships, pettyprincipalities, and fragmented provinces into onecountry.  His rule extended from Mashhad in the west toKashmir and Delhi in the east, and from the Amu Darya(Oxus) River in the north to the Arabian Sea in thesouth.  All of Afghanistan's rulers until the 1978Marxist coup were from Durrani's Pashtun tribalconfederation, and all were members of that tribe'sMohammadzai clan after 1818.European InfluenceCollision between the expanding British and RussianEmpires significantly influenced Afghanistan during the19th century.  British concern over Russian advances inCentral Asia and growing influence in Persia culminatedin two Anglo-Afghan wars.  The first (1839-42) resultednot only in the destruction of a British army, but isremembered today as an example of the ferocity of Afghanresistance to foreign rule.  The second Anglo-Afghan war(1878-80) was sparked by Amir Shir Ali's refusal toaccept a British mission in Kabul.  This conflict broughtAmir Abdur Rahman to the Afghan throne.  During his reign(1880-1901), the British and Russians officiallyestablished the boundaries of what would become modernAfghanistan.  The British retained effective control overKabul's foreign affairs.Afghanistan remained neutral during World War I, despiteGerman encouragement of anti-British feelings and Afghanrebellion along the borders of British India.  The Afghanking's policy of neutrality was not universally popularwithin the country, however.Habibullah, Abdur Rahman's son and successor, wasassassinated by members of an anti-British movement in1919.  His third son, Amanullah, regained control ofAfghanistan's foreign policy after launching the ThirdAnglo-Afghan war with an attack on India in the sameyear.  During the ensuing conflict, the war-weary Britishrelinquished their control over Afghan foreign affairs bysigning the Treaty of Rawalpindi in August 1919.  Incommemoration of this event, Afghans celebrate August 19as their Independence Day.Reform and ReactionKing Amanullah (1919-29) moved to end his country'straditional isolation in the years following the ThirdAnglo-Afghan war.  He established diplomatic relationswith most major countries and, following a 1927 tour ofEurope and Turkey--which had seen modernization andsecularization under Attaturk--introduced several reformsintended to modernize the country.  Some of these, suchas the abolition of the traditional Muslim veil for womenand the opening of a number of coeducational schools,quickly alienated many tribal and religious leaders.  Theweakness of the army under Amanullah further jeopardizedhis position.  He was forced to abdicate in January 1929after Kabul fell to forces led by Bacha-i-Saqao, a Tajikbrigand.  Prince Nadir Khan, a cousin of Amanullah's, inturn defeated Bacha-i-Saqao in October of the same year.With considerable Pashtun tribal support, Khan wasdeclared King Nadir Shah.  Four years later, however, hewas assassinated in a revenge killing by a Kabul student.Mohammad Zahir Shah, Nadir Khan's 19-year-old son,succeeded to the throne and reigned from 1933 to 1973.In 1964, King Zahir Shah promulgated a liberalconstitution providing for a two-chamber legislature towhich the king appointed one-third of the deputies.  Thepeople elected another third, and the remainder wereselected indirectly by provincial assemblies.  AlthoughZahir's "experiment in democracy" produced few lastingreforms, it permitted the growth of unofficial extremistparties of both left and right.  This included thecommunist People's Democratic Party of Afghanistan(PDPA), which had close ideological ties to the SovietUnion.  In 1967, the PDPA split into two major rivalfactions:  the Khalq (Masses) faction headed by NurMuhammad Taraki and supported by the military, and theParcham (Banner) faction led by Babrak Karmal.  The splitreflected deep ethnic, class, and ideological divisionswithin Afghan society.Zahir's cousin, Sardar Mohammad Daoud, served as hisPrime Minister from 1953 to 1963.  During his tenure asPrime Minister, Daoud solicited military and economicassistance from both Washington and Moscow and introducedcontroversial social policies.  Daoud's alleged supportfor the creation of a Pashtun state in the Pakistan-Afghan border area heightened tensions with Pakistan andeventually resulted in Daoud's dismissal in March 1963.Daoud's Republic (1973-78) and the April 1978 CoupAmid charges of corruption and malfeasance against theroyal family and poor economic conditions caused by thesevere 1971-72 drought, former Prime Minister Daoudseized power in a military coup on July 17, 1973.  Daoudabolished the monarchy, abrogated the 1964 constitution,and declared Afghanistan a republic with himself as itsfirst President and Prime Minister.  His attempts tocarry out badly needed economic and social reforms metwith little success, and the new constitution promulgatedin February 1977 failed to quell chronic politicalinstability.Seeking to exploit more effectively mounting populardisaffection, the PDPA reunified with Moscow's support.On April 27-28, 1978, the PDPA initiated a bloody coupwhich resulted in the overthrow and death of Daoud andmost of his family.  Nur Muhammad Taraki, SecretaryGeneral of the PDPA, became President of theRevolutionary Council and Prime Minister of the newlyestablished Democratic Republic of Afghanistan.Opposition to the Marxist government emerged almostimmediately.  During its first 18 months of rule, thePDPA brutally imposed a Marxist-style "reform" programwhich ran counter to deeply rooted Islamic traditions.Decrees advocating the abolition of usury, changes inmarriage customs, and land reform were particularlymisunderstood and upsetting to highly conservativevillagers.  In addition, thousands of members of thetraditional elite, the religious establishment, and theintelligentsia were imprisoned, tortured, or murdered.Conflicts within the PDPA also surfaced early andresulted in exiles, purges, imprisonments, andexecutions.By the summer of 1978, a major revolt in the Nuristanregion of eastern Afghanistan spread into a country-wideinsurgency.  In September 1979, Hafizullah Amin, who hadearlier been the Prime Minister and minister of defense,seized power from Taraki after a palace shootout.  Overthe next two months, instability plagued Amin's regime ashe moved against perceived enemies in the PDPA.  ByDecember, party morale was crumbling, and the insurgencywas growing.The Soviet InvasionThe Soviet Union moved quickly to take advantage of theApril 1978 coup.  In December 1978, Moscow signed a newbilateral treaty of friendship and cooperation withAfghanistan, and the Soviet military assistance programincreased significantly.  The regime's survivalincreasingly was dependent upon Soviet military equipmentand advisers as the insurgency spread and the Afghan armybegan to collapse.By October 1979, however, relations between Afghanistanand the Soviet Union were tense as Hafizullah Aminrefused to take Soviet advice on how to stabilize andconsolidate his government.  Faced with a deterioratingsecurity situation on December 24, 1979, large numbers ofSoviet airborne forces, joining thousands of Soviettroops already on the ground, began to land in Kabulunder the pretext of a field exercise.  On December 26,these invasion forces killed Hafizullah Amin andinstalled Babrak Karmal, exiled leader of the Parchamfaction, as Prime Minister.  Massive Soviet ground forcesinvaded from the north on December 27.Following the invasion, the Karmal regime, althoughbacked by an expeditionary force of about 120,000 Soviettroops, was unable to establish authority outside Kabul.As much as 80% of the countryside, including parts ofHerat and Kandahar, eluded effective government control.An overwhelming majority of Afghans opposed the communistregime, either actively or passively.  Afghan freedomfighters (mujahidin) made it almost impossible for theregime to maintain a system of local government outsidemajor urban centers.  Poorly armed at first, in 1984 themujahidin began receiving substantial assistance in theform of weapons and training from the U.S. and otheroutside powers.In May 1985, the seven principal Peshawar-based guerrillaorganizations formed an alliance to coordinate theirpolitical and military operations against the Sovietoccupation.  Late in 1985, the mujahidin were active inand around Kabul, launching rocket attacks andassassinating high government officials.  The failure ofthe Soviet Union to win over a significant number ofAfghan collaborators or to rebuild a viable Afghan armyforced it to bear an increasing responsibility forfighting the resistance and for civilian administration.Soviet and popular displeasure with the Karmal regime ledto its demise in May 1986.  Karmal was replaced byMuhammad Najibullah, former chief of the Afghan secretpolice (KHAD).  Najibullah had established a reputationfor brutal efficiency during his tenure as KHAD chief.As Prime Minister, though, Najibullah was ineffective andhighly dependent on Soviet support.  Undercut by deep-seated divisions within the PDPA, regime efforts tobroaden its base of support proved futile.The Geneva Accords and AftermathBy the mid-1980s, the tenacious Afghan resistancemovement--aided by the United States, Saudi Arabia,Pakistan, and others--was exacting a high price from theSoviets, both militarily within Afghanistan and bysouring the U.S.S.R.'s relations with much of the Westernand Islamic world.  Although informal negotiations for aSoviet withdrawal from Afghanistan had been underwaysince 1982, it was not until 1988 that the Governments ofPakistan and Afghanistan, with the United States andSoviet Union serving as guarantors, signed an agreementsettling the major differences between them.  Theagreement, known as the Geneva accords, included fivemajor documents, which, among other things, called forU.S. and Soviet non-interference in the internal affairsof Pakistan and Afghanistan, the right of refugees toreturn to Afghanistan without fear of persecution orharassment, and, most importantly, a timetable thatensured full Soviet withdrawal from Afghanistan byFebruary 15, 1989.  About 14,500 Soviet and an estimatedone million Afghan lives were lost between 1979 and theSoviet withdrawal in 1989.Significantly, the mujahidin were neither party to thenegotiations nor to the 1988 agreement and, consequently,refused to accept the terms of the accords.  As a result,civil war did not end with the Soviet withdrawal,completed as scheduled in February 1989.  Instead, itescalated.  Najibul-lah's regime, though failing to winpopular support, territory, or international recognition,was able to remain in power until 1992.GOVERNMENT AND POLITICAL CONDITIONSThe Soviet-supported Najibullah regime did not collapseuntil the defection of General Abdul Rashid Dostam andhis Uzbek militia in March 1992.  However, as thevictorious mujahidin entered Kabul to assume control overthe city and the central government, a new round ofinternecine fighting began between the various militias,which had coexisted only uneasily during the Sovietoccupation.  With the demise of their common enemy, themilitias' ethnic, clan, religious, and personalitydifferences surfaced, and the civil war continued.Seeking to resolve these differences, the leaders of thePeshawar-based mujahidin groups agreed in mid-April toestablish a 51-member interim Islamic Jihad Council toassume power in Kabul.  Moderate leader ProfessorSibghatullah Mojaddedi was to chair the council for threemonths, after which a 10-member leadership councilcomposed of mujahidin leaders and presided over by thehead of the Jamiat-i-Islami, Professor BurhanuddinRabbani, was to be set up for a period of four months.During this six-month period, a Loya Jirga, or grandcouncil of Afghan elders and notables, would convene anddesignate an interim administration which would holdpower up to a year, pending elections.But in May 1992, Rabbani prematurely formed theleadership council, undermining Mojaddedi's fragileauthority.  In June, Mojaddedi surrendered power to theLeadership Council, which then elected Rabbani asPresident.  Nonetheless, heavy fighting broke out inAugust 1992 in Kabul between forces loyal to PresidentRabbani and rival factions, particularly those whosupported Gulbuddin Hekmatyar's Hezb-i-Islami.  AfterRabbani convened a highly controversial council to extendhis tenure in December 1992, fighting in the capitalflared up in January and February 1993.  The Islamabadaccord, signed in March 1993, which appointed Hekmatyaras Prime Minister, failed to have a lasting effect.  Afollow-up agreement, the Jalalabad accord, called for themilitias to be disarmed but was never fully implemented.Through 1993, Hekmatyar's Hezb-i-Islami forces, alliedwith the Shi'a Hezb-i-Wahdat militia, clashedintermittently with Rabbani and Masood's Jamiat forces.Cooperating with Jamiat were militants of Sayyaf'sIttehad-i-Islami and, periodically, troops loyal toethnic Uzbek strongman Abdul Rashid Dostam.  On January1, 1994, Dostam switched sides, precipitating large-scalefighting in Kabul and in northern provinces, which causedthousands of civilian casualties in Kabul and elsewhereand created a new wave of displaced persons and refugees.The central government exercises only limited controlover the countryside, where local leaders and militiacommanders, some with only nominal allegiance to any ofthe national figures battling for power in Kabul, holdsway.  A date for elections in Afghanistan has yet to beestablished.Principal Government OfficialsPresident--Burhanuddin RabbaniPrime Minister--Gulbuddin HekmatyarMinister of Finance--Abdul Karim KhaliliMinister of Foreign Affairs--Hidayat Amin ArsalaCharge d'Affaires to the U.S.--Abdul RahimAfghanistan maintains an embassy in the United States at2341 Wyoming Avenue, NW, Washington, DC 20008 (tel. [phone]).ECONOMYHistorically, there has been a dearth of information andreliable statistics about Afghanistan's economy.  Thiswas exacerbated by the Soviet invasion and ensuing civilwar, which destroyed much of the underdeveloped country'sinfrastructure and disrupted normal patterns of economicactivity.AgricultureThe Afghan economy continues to be overwhelminglyagricultural, despite the fact that only 15% of its totalland area is arable and less than 6% currently iscultivated.  Agricultural production is constrained by analmost total dependence on erratic winter snows andspring rains for water; irrigation is primitive.Relatively little use is made of machines, chemicalfertilizer, or pesticides.Grain production is Afghanistan's traditionalagricultural mainstay.   Overall agricultural productiondeclined an average of 3.5% per year between 1978 and1990.  This can be attributed to sustained fighting,instability in rural areas, prolonged drought, anddeteriorated infrastructure.  Soviet efforts to disruptproduction in resistance-dominated areas also contributedto this decline.  Furthermore, Soviet efforts tocentralize the economy through state ownership andcontrol and consolidation of farmland into largecollective farms contributed to lower production.The war against the Soviet Union and the ensuing civilwar also led to migration to the cities and refugeeflight to Pakistan and Iran, further disrupting normalagricultural production.  Recent studies indicate thatagricultural production and livestock numbers are lessthan one-half of what they were in 1978.  It is estimatedthat Afghanistan's food production levels are about 15%lower than what is necessary to feed the population.Shortages are exacerbated by the country's alreadylimited transportation network, which has deteriorateddue to damage and neglect resulting from war and theabsence of an effective central government.Opium is increasingly becoming a source of cash for manyAfghans, especially since the breakdown in centralauthority after the Soviet withdrawal.  Opium is easy tocultivate and transport and offers a quick source ofincome for returning refugees and other impoverishedAfghans.  Afghanistan is the second-largest producer ofraw opium in the world, after Burma.  In 1993, despiteefforts by the U.S. and others to encourage alternativecrops, poppy and opium production increased 8% and 7%,respectively, from a year earlier.  Much of Afghanistan'sopium production is shipped to laboratories in Pakistanand refined into heroin which is either consumed by agrowing South Asian addict population or exported,primarily to Europe and North America.Trade and IndustryTrade accounts for a small portion of the Afghan economy,and there are no reliable statistics relating to tradeflows.  Since the Soviet withdrawal and the collapse ofthe Soviet Union, other limited trade relationshipsappear to be emerging with Iran, Pakistan, and the West.Afghanistan trades little with the United States; its1992 trade is estimated at  $6 million.  Afghanistan doesnot enjoy U.S. most-favored-nation (MFN) trading status,which was revoked in 1986.Afghanistan is endowed with a wealth of naturalresources, including extensive deposits of coal, salt,chromium, iron ore, gold, fluorite, talc, copper, andlapis lazuli.  Unfortunately, the country's remote andrugged terrain, and inadequate transportation network,usually have made mining these resources unprofitable.The most important resource has been natural gas, firsttapped in 1967.  At their peak during the 1980s, naturalgas sales accounted for $300 million a year in exportrevenues (56% of the total).  Ninety percent of theseexports went to the Soviet Union to pay for imports anddebts.  However, during the withdrawal of Soviet troopsin 1989, Afghanistan's natural gas fields were capped toprevent sabotage by the mujahidin.  Restoration of gasproduction has been hampered by internal strife and thedisruption of traditional trading relationships followingthe collapse of the Soviet Union.TransportationLandlocked Afghanistan has no rail-ways, but the AmuDarya (Oxus) River, which forms part of Afghanistan'sborder with Turkmenistan, Uzbekistan, and Tajikistan, hasbarge traffic.  During their occupation of the country,the Soviets completed a bridge across the Amu Darya andbuilt a motor vehicle and railroad bridge between Termezand Jeyretan.Most roadbuilding occurred in the 1960s, funded by theU.S. and the Soviet Union.  The Soviets built a road andtunnel through the Salang Pass in 1964, connectingnorthern and southern Afghanistan.  A highway connectingthe principal cities of Herat, Kandahar, Ghazni, andKabul forms the primary road system.The highway system requires significant reconstruction,and regional roads are in a state of disrepair.  The poorstate of the Afghan transportation and communicationnetworks has further fragmented and hobbled thestruggling economy.Economic Development and RecoveryAfghanistan embarked on a modest economic developmentprogram in the 1930s.  The government founded banks,introduced paper money, established a university,expanded primary, secondary, and technical schools, andsent students abroad for education.  In 1956, the AfghanGovernment promulgated the first in a long series ofambitious development plans.  By the late 1970s, thesehad achieved only mixed results due to flaws in theplanning process as well as inadequate funding and ashortage of the skilled managers and technicians neededfor implementation.These constraints on development have been exacerbated bythe flight of refugees and the disruption and instabilitystemming from the Soviet occupation and ensuing civilwar.  Today, economic recovery and long-term developmentwill depend on establishing an effective and stablepolitical system.The UN and the international donor community continue toprovide considerable humanitarian relief.  Since itsinception in 1988, the umbrella UN Office for theCoordination of Humanitarian Assistance to Afghanistan(UNOCHA) has channeled $512 million in multilateral cashassistance to Afghan refugees and vulnerable per-sonsinside Afghanistan.  The U.S. and Japan are the leadingcontributors to this relief effort.  One of its key tasksis to eliminate from priority areas (such as villages,arable fields, and roads) some of the estimated 10million land-mines which continue to litter the Afghanlandscape.  Afghanistan is the most heavily mined countryin the world; mine-related injuries number up to 100 permonth.  Without successful mine clearance, refugeerepatriation, political stability, and economicreconstruction will be severely constrained.The UN, through the UN Development Program (UNDP), isexpected to play a major role in post-war recovery andreconstruction of Afghanistan.  In November 1993, theUNDP Action Plan for the Immediate Rehabilitation ofAfghanistan identified more than $600 million in quick-impact development projects which could be implementedwithin two years where security conditions permit.</text>
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        <text><span class="style2">FGHANIS.BKGAFGHANIS.BKHANTIGUA_.BKGARGENTIN.BKGAUSTRALI.BKGAUSTRIA.BKGTHE_BAHA.BKGBAHRAIN.BKGBANGLADE.BKGBARBADOS.BKGBELIZE.BKGBHUTAN.BKGBOLIVIA.BKGBOTSWANA.BKGBRAZIL.BKGBRUNEI.BKGBULGARIA.BKGBULGARIA.BKHBURKINA.BKGBURUNDI.BKGCAMBODIA.BKGCameroon.BKGCANADA.BKGChad.BKGCHILE.BKGCHINA.BKGCOLOMBIA.BKGCOMOROS.BKGCOSTA_RI.BKGCOTE_D_I.BKGCUBA.BKGCUBA.BKHCYPRUS.BKGCZECH_RE.BKGDENMARK.BKGDJIBOUTI.BKGDOMINICA.BKGDOMINICR.BKGECUADOR.BKGEGYPT.BKGegypt.bkhEL_SALVA.BKGEL_SALVA.BKHESTONIA.BKGestonia.bkhFINLAND.BKGFRANCE.BKGGABON.BKGthe_GAMB.BKGGERMANY.BKGgermany.bkhGHANA.BKGghana.bkhGREECE.BKGgreece.bkhGRENADA.BKGGUATEMAL.BKGGUYANA.BKGHAITI.BKGHOLY_SEE.BKGHONDURAS.BKGHONG_KON.BKGHungary.BKGINDIA.BKGindia.bkhIRAN.BKGIRELAND.BKGISRAEL.BKGITALY.BKGJAMAICA.BKGJAPAN.BKGJORDAN.BKGKENYA.BKGKIRIBATI.BKGKorea__S.BKGkorea__s.bkhKUWAIT.BKGLAOS.BKGLATVIA.BKGLEBANON.BKGlebanon.bkhLESOTHO.BKGLIBYA.BKGLITHUANI.BKGlithuani.bkhMADAGASC.BKGMALAYSIA.BKGMALDIVES.BKGMALI.BKGmarshall.BKGMAURITAN.BKGMAURITIU.BKGMEXICO.BKGMONGOLIA.BKGMOROCCO.BKGNEPAL.BKGNETHERL.BKGNEW_ZEAL.BKGNICARAGU.BKGNiger.BKGNORWAY.BKGOMAN.BKGPAKISTAN.BKGpakistan.bkhPANAMA.BKGpanama.bkhPAPUA_NE.BKGPARAGUAY.BKGPERU.BKGPOLAND.BKGpoland.bkhPORTUGAL.BKGQatar.BKGRUSSIA.BKGrussia.bkhRUSSIA.BKISAINT_KI.BKGSAINT_LU.BKGSAINT_VI.BKGSAO_TOME.BKGSAUDI_AR.BKGSENEGAL.BKGSIERRA_L.BKGSINGAPOR.BKGSOUTH_AF.BKGSOUTH_AF.BKHSPAIN.BKGSRI_LANK.BKGSUDAN.BKGSURINAME.BKGSWAZILAN.BKGSYRIA.BKGsyria.bkhTANZANIA.BKGTANZANIA.BKHTHAILAND.BKGTOGO.BKGTRINIDAD.BKGTUNISIA.BKGTURKEY.BKGUGANDA.BKGUNITED_A.BKGUNITED_K.BKGURUGUAY.BKGVENEZUEL.BKGVIETNAM.BKGYEMEN.BKGZAMBIA.BKGTAIWAN.BKG</span></text>
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        <text><span class="style2">fghanistan        Antigua and Barbuda    Argentina    Australia    Austria    The Bahamas    Bahrain    Bangladesh    Barbados    Belize    Bhutan    Bolivia    Botswana    Brazil    Brunei    Bulgaria        Burkina    Burundi    Cambodia    Cameroon    Canada    Chad    Chile    China    Colombia    Comoros    Costa Rica    Cote d'Ivoire    Cuba        Cyprus    Czech Republic    Denmark    Djibouti    Dominica    Dominican Republic    Ecuador    Egypt        El Salvador        Estonia        Finland    France    Gabon    The Gambia    Germany        Ghana        Greece        Grenada    Guatemala    Guyana    Haiti    Holy See (Vatican City)    Honduras    Hong Kong    Hungary    India        Iran    Ireland    Israel    Italy    Jamaica    Japan    Jordan    Kenya    Kiribati    Korea, South        Kuwait    Laos    Latvia    Lebanon        Lesotho    Libya    Lithuania        Madagascar    Malaysia    Maldives    Mali    Marshall Islands    Mauritania    Mauritius    Mexico    Mongolia    Morocco    Nepal    Netherlands    New Zealand    Nicaragua    Niger    Norway    Oman    Pakistan        Panama        Papua New Guinea    Paraguay    Peru    Poland        Portugal    Qatar    Russia            Saint Kitts and Nevis    Saint Lucia    Saint Vincent and the GrenadinesSao Tome and Principe    Saudi Arabia    Senegal    Sierra Leone    Singapore    South Africa        Spain    Sri Lanka    Sudan    Suriname    Swaziland    Syria        Tanzania        Thailand    Togo    Trinidad and Tobago    Tunisia    Turkey    Uganda    United Arab Emirates    United Kingdom    Uruguay    Venezuela    Vietnam    Yemen    Zambia    Taiwan    </span></text>
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        <text>Welcome to the Background Notes from the State DepartmentUse the arrow keys in the lower right corner to move around.</text>
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