U.S. DEPARTMENT OF STATE DISPATCH VOLUME 5, NUMBER 1, JANUARY 3, 1994 PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS ARTICLES IN THIS ISSUE: 1. Ambassador Strobe Talbott Nominated As Deputy Secretary of State 2. Fact Sheet: Gore-Chernomyrdin Commission 3. Focus on Russia: Highlights of Successful U.S. Support for Market Reform 4. Fact Sheet: Safe and Secure Dismantlement of Nuclear Weapons in the New Independent States 5. Fact Sheet: The Visegrad Group 6. Country Profile: Czech Republic 7. Country Profile: Hungary 8. Country Profile: Poland 9. Country Profile: Slovakia ARTICLE 1. Ambassador Strobe Talbott Named as Deputy Secretary of State Secretary Christopher, Ambassador Talbott Remarks at a news conference, Los Angeles, California, December 28, 1993 Secretary Christopher. Good morning. It's a wonderful pleasure for me to be back home, and a day like this is a very happy one for me in many respects. I'm very pleased to announce that I have recommended--and the President has agreed to nominate--Ambassador Strobe Talbott to be the next Deputy Secretary of State. The President and I are both very enthusiastic about this announcement. We believe that Strobe will bring to the office of Deputy Secretary the same kind of inspired leadership that he has shown as Ambassador-at-Large and Special Adviser on Russia and the New Independent States. Strobe, as you know, has been the chief architect of our Administration's policy toward Russia. He has guided us through a complex and unprecedented set of challenges and, in the process, he has shown himself to be a gifted strategic thinker and manager. Working closely with me, Strobe will continue to have a special responsibility for Russia and the New Independent States as he takes on his many other duties as Deputy Secretary. Strobe is splendidly suited for this position. In an accomplished career as a journalist and author, he's made his mark not only as an authority on Russia and arms control, but as a thoughtful commentator on foreign policy generally and on American politics. In the course of his 21 years at Time magazine, Strobe was diplomatic correspondent, a columnist on foreign affairs, and Washington Bureau Chief. He knows more than simply the workings of American foreign policy; he knows how Washington works as well. Strobe and I have been friends for 15 years. I admired his work as a journalist, we served together on the Board of the Council on Foreign Relations, and now, of course, we have worked very closely together over the course of the last year. I recommended him to the President because I have great confidence in his ability, his knowledge of foreign affairs, his integrity, and his character. Having served as Deputy Secretary myself, I can say with much assurance that Strobe Talbott will make a lasting and unique contribution to the architecture and the execution of American foreign policy. It's with great pleasure that I introduce to this audience Strobe Talbott. Strobe, congratulations. Ambassador Talbott. Thank you very much, Mr. Secretary. Your confidence gives me hope that I can fulfill this assignment. Over the years that Secretary Christopher and I have worked together in very close quarters and on some fairly tough issues, I have had numerous occasions to admire his judgment. I just hope that his judgment is up to its usual high standard in the personnel decision that he is announcing today. Mr. Secretary, I will do my best to vindicate the wisdom of your selection of a Deputy, just as I will try to help you in your difficult and important job in any other way that I can. In my career, I have been blessed with good bosses but I have never had a better boss--and, indeed, I cannot imagine a better boss--than Warren Christopher. I would like to make two more points. For me, one of the best things about my experience in government has been collaboration with the professionals of the Department of State and the Foreign Service. My new assignment will enable me to broaden and deepen that collaboration across a wider range of issues and I relish that prospect. Finally, let me say just a word about what we bureaucrats call "the inter-agency process." This Administration has attained and sustained a remarkable degree of collegiality, of common purpose and good will among the various departments and agencies dealing with foreign and national security policy. This has been largely a credit to Tony Lake, the President's National Security Adviser, who, like Secretary Christopher, is an old friend. It gives me an added--and I might say, much needed--reinforcement of confidence that my new assignment will permit me to work even more closely with Tony Lake; with his Deputy, Sandy Berger; and with their colleagues at the National Security Council staff to ensure that the American people have the best possible stewardship of their national interest. Thank you. (###) ARTICLE 2 Fact Sheet: Gore-Chernomyrdin Commission At their summit meeting in Vancouver, Canada, April 3-4, 1993, President Clinton and Russian President Yeltsin pledged to jettison the vestiges of the Cold War and forge a new partnership between the United States and Russia. They particularly aimed to develop a program to advance a new joint agenda in energy, space, and science and technology to the benefit of both countries. To initiate this new cooperative venture, the two Presidents agreed at Vancouver that both countries would focus high- level attention on it. This was the genesis of the commission headed by Vice President Albert Gore and Russian Prime Minister Victor Chernomyrdin. First Gore-Chernomyrdin Commission Meeting, September 1993 On September 1-2, 1993, in Washington, DC, Vice President Gore and Prime Minister Chernomyrdin initiated the new cooperative venture. Its broad agenda included economic and foreign policy issues, as well as the evolution of a commercial partnership for the future. During this round of successful meetings, they accomplished a great deal in the fields of space and energy. Agreements signed represent the leading edge of U.S.-Russian cooperation-- aimed at achieving broad market access for Russian high- technology goods and efficient and low-cost cooperation on long-term, complex projects. They also agreed to establish additional subcommittees to focus specifically on environmental, scientific, energy policy, and defense diversification issues. Space Cooperation. The two sides signed three joint statements: one on space cooperation, outlining a phased approach for cooperation on human space flight and development of a unified space station; a second on cooperative environmental monitoring from space, involving a joint study to determine the feasibility of such programs; and a third on aeronautical sciences. These agreements set a broad strategy for cooperation on global environmental change and in the design of future aircraft. They also signed a commercial launch agreement giving Russia access to the international launch services market and a Memorandum of Understanding on the Missile Technology Control Regime (MTCR) committing Russia to the MTCR guidelines on the sale of high-technology goods and services. Energy and Investment Cooperation. The agreements signed in this area represent the joint intention of the parties to strengthen economic cooperation and to increase trade and investment significantly, especially in energy- related projects. The U.S. Overseas Private Investment Corporation (OPIC) announced two major projects for Russia to establish the first U.S.-Russian Investment Fund to support privatization and to assist in oil well restoration in western Siberia. The two sides agreed that each government would name an ombudsman to work together to overcome obstacles to specific trade and investment projects. They also signed a memorandum to facilitate cooperation in fossil energy development and a memorandum of understanding that will lead to an expansion of exports to Russia currently financed by Eximbank. Finally, they agreed to launch a joint study on nuclear reactor safety issues to determine the most potentially productive joint work in the area of nuclear safety. Second Gore-Chernomyrdin Meeting, December 1993 Following up on the successful September meeting, the Gore-Chernomyrdin Commission met again on December 15-16, 1993, in Moscow. At this meeting, many of the programs and joint projects set in motion the previous September began to take on concrete shape. Major accomplishments were achieved in five broad areas. Space Cooperation. One of the highlights of the meeting was a joint statement issued on space station cooperation. The statement, signed by Vice President Gore and Prime Minister Chernomyrdin, covers activities involving the U.S. space shuttle and the Russian Mir space station, Russian participation in the International Space Station, and contractual arrangements to facilitate these programs. The two sides signed a protocol calling for additional manned flights to the Russian Mir space station and extended time for U.S. astronauts there. They also signed a joint statement on aeronautics and space cooperation, noting potential cooperation in the areas of earth sciences and environmental monitoring and space science. The joint statement was accompanied by a memorandum of understanding describing eight areas of cooperation in fundamental aeronautical sciences. Trade and Business Development. In this area, the Vice President and Prime Minister Chernomyrdin exchanged instruments of ratification for a double taxation treaty, effective January 1, 1994. OPIC agreements totaling $135 million were signed, providing the financial muscle to stimulate significant U.S. private investment in the Russian economy. The two sides released a joint communique on conformity of product standards to facilitate trade in both directions. They also signed an interim memorandum for establishing American business centers in Russia and issued a joint statement on the future tasks of the Business Development Committee aimed at identifying opportunities, resolving problems, and expanding contracts leading to new trade and investment projects. Finally, they announced a joint energy project to create a model Russian retail gasoline corporation, to determine the commercial and legal conditions needed to establish a privately owned and financed corporation. Energy, Nuclear Safety, and Environment. The Vice President and the Prime Minister signed a milestone statement of principles for nuclear safety cooperation, with both governments committed to support and expand bilateral and multilateral efforts to promote nuclear safety. The two sides also signed a nuclear liability agreement providing a legal framework for U.S. corporations involved in improving the safety of Russian nuclear reactors. An agreement for the Commodity Import Program provides $125 million in grants for importing U.S. gas technology and equipment to improve Russian energy production and diminish the environmental impact of gas production. They also announced the formation of an oil and gas technology center in the city of Tyumen, a key Russian energy production site, to improve the recovery of oil and gas and reduce production costs. Finally, they signed a joint statement on environmental cooperation involving 15 technical assistance projects to begin immediately and another on alternative energy studies. Defense Conversion. The Vice President and the Prime Minister signed a memorandum spelling out the principles guiding U.S. and Russian cooperation in the conversion and diversification of defense industries. The two sides followed this with a protocol to the existing Nunn-Lugar defense conversion implementation agreement that provides up to $20 million for direct conversion assistance for the transition to civilian production of modular housing. Science and Technology. Vice President Gore and Prime Minister Chernomyrdin signed a historic agreement providing, for the first time, a framework for cooperation in all fields of science and technology for a 10-year period. A major achievement of the agreement is a new bilateral framework to protect intellectual property resulting from cooperative research and development programs. The two sides also signed a related memorandum of understanding on cooperation in the fields of mining research and minerals information for a five- year period. (###) ARTICLE 3 Focus on Russia: Highlights of Successful U.S. Support for Market Reform Immediate support for key market and democratic reforms in Russia and the other new independent states of the former Soviet Union is fundamental to a more secure world now and throughout the next century. U.S. assistance focuses on the difficult transitions from centralized economic control to market-based decision-making and from centralized political structures to democratic government currently underway in Russia. Programs range from sending long-term advisers to providing equipment and financial assistance. Supported by the Russian Government and people, the U.S. assistance effort already has had a positive impact on promoting market reform and democracy. Following are highlights of the success stories that typify U.S. support for market reform. Privatization of Russian Businesses. Seventy-seven of 89 Russian regions receive direct U.S. support through the Russian Government's privatization program. The U.S. Agency for International Development (USAID) provides local grants to non-governmental organizations, such as the Center for Citizen Initiatives of San Francisco that organizes successful small business training programs. Such efforts help develop policies and programs to divest government assets and create regulatory environments to promote foreign investment. The best example of how Russia's economy is moving toward an open market system is the progress in business privatization: More than 200 companies are being privatized every week. By the end of 1993, an estimated 70,000 small businesses will have been privatized. For further information, contact: Russell Porter, USAID, 202-647-4274. Russian-American Enterprise Fund. The U.S. plans to capitalize the fund, created in September 1993, with more than $300 million in foreign assistance appropriations over the next three to five years. The fund provides capital vital to a growing private sector which now lacks adequate financial services. One focus will be on the Russian Far East, to help catalyze the region's vast business potential, including joint ventures with American firms. For further information, contact: Russell Porter, USAID, 202-647-4274. Peace Corps Volunteers in Business Development. The U.S. Peace Corps has 70 volunteers in Russia assisting in small business development throughout the country. The primary focus of their work is to provide advice to small and medium-size Russian businesses and to teach general business skills, from accounting practices to marketing. They also help organize seminars and trade shows and teach classes on stocks, bonds, writing business proposals, etc. For example: -- In July 1993, the Peace Corps sponsored an international trade conference in Nizhniy-Novgorod in which more than 200 Russian business representatives participated in seminars with U.S. business leaders from DuPont, Sprint, Apple Computer, and General Motors. -- A Peace Corps volunteer in Artyom, just outside Vladivostok, works with a Russian counterpart in a small business center under city supervision to provide one-on- one business counseling for local businesses. -- Other volunteers assist local banks in Khabarovsk in advertising, establishing correspondent banking relationships, and developing a share prospectus. For further information, contact: Kristin Wennberg, Peace Corps, 202-606-3010. Risk Reduction and Alternative Financing. The U.S. Overseas Private Investment Corporation (OPIC) works to reduce risks for U.S. businesses overseas and to provide alternative financing. Notably, several U.S. companies have pioneered projects in Russia: -- OPIC, along with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), helped finance the first new major oil field (the Ardalin oil field near the Barents Sea) developed by a U.S.-Russian joint venture between Conoco, Inc., and Arkhangelskogeologia. This joint venture is expected to generate $100 million in U.S. exports as well as to create new American and Russian jobs. -- OPIC provided $28 million in political risk insurance and financial support for Texaco's $80 million investment in an oil-well restoration project in western Siberia. -- Paine Webber's Russia Country Fund is the first U.S. Government-sponsored private investment fund. It is expected to generate about $300 million of investment in Russia. OPIC is contributing $50 million toward a $75 to $100-million private investment fund sponsored by Paine Webber to provide equity investment to new businesses in Russia, with particular emphasis on energy and environmental projects. Final discussions are underway concerning the Russian Government's contribution of an additional $25 million to the fund which would then make it the first joint Russian-American investment fund. -- With OPIC insurance assistance and a $6-million grant from USAID's Food Systems Restructuring Project, TPC Foods has formed a joint venture with two Russian partners, KPRS and Dolryba, to establish and operate retail and wholesale food distribution complexes in the Russian Far East. The project is expected to generate $23 million in U.S. exports. It also will create new jobs in the U.S. and Russia and will dramatically improve the availability of food products in the Russian Far East. For further information, contact: Jon Haber, OPIC, 202- 336-8409; Russell Porter, USAID, 202-647-4274. Banking System. The chairman of the Russian-American Enterprise Fund (and former president of New York's Federal Reserve Bank) organized a seminar on market banking principles for more than 250 senior-level banking officials from the new independent states in 1993. This was part of a $5-million bankers' training program to promote the development of a stable banking system, a fundamental requirement for integration into the world economy. For further information, contact: Russell Porter, USAID, 202-647-4274. Energy Use and Safety. The U.S. Department of Energy (DOE) and the Nuclear Regulatory Commission (NRC) aim to improve the energy efficiency of all energy production areas as well as safety standards and practices in the nuclear power industry. In particular: -- The NRC works closely with its Russian counterpart Federal Nuclear and Radiation Safety Authority (GAN). It has helped GAN to keep at least one unsafe plant from restarting until corrective action was taken; to deliver and install previously unavailable computer and communications equipment; and to develop an emergency support center to improve regulatory enforcement and analyze serious accidents. -- The Department of Energy has been key to developing emergency operating instructions for nuclear reactor models (VVER-440/213, VVER-1000, and RBMK) with marginal safety factors. It also is heavily involved in providing training and equipment for use in nuclear safety programs. For further information, contact: Jim Noble, State Department, 202-647-5649. Special American Business Internship Training (SABIT) Program. This Department of Commerce program provides hands-on business training in U.S. firms to managers and scientists from the new independent states. With USAID funding, Commerce awards grants to American companies to defray costs of hosting an executive intern for three to six months of business training. Of 165 executives who came to the U.S. for SABIT training, 123 completed their training, and many more are scheduled. The Vice President of R.S. Means Company, which hosted an intern from the Moscow-based company Co-Invest, stated that "this very modest program will very likely pay major dividends for our company and will result in a substantial service to the construction industry in Russia. . . ." The Co-Invest intern organized a conference after her return to Russia to share her new knowledge with her Russian colleagues. For further information, contact: Cynthia Anthony, Commerce Department, 202-482-0073. Business Feasibility Studies. U.S. Government support for feasibility studies is an effective way to help U.S. firms gain access to the export opportunities represented by capital projects. For example: -- The U.S. Trade and Development Agency (TDA) awarded a $200,000 feasibility study to AMO Zil, a major Russian truck manufacturer. This support was key to AMO Zil's subsequent joint ventures (announced in December 1993) with a major U.S. manufacturer, Caterpillar, which faced competition from Renault (supported by the French Government). One joint venture will provide fuel-system components and the other will manufacture diesel engines in Russia. Each will stimulate U.S. exports by providing major components and capital equipment from Caterpillar plants in York, Pennsylvania, and Pontiac, Illinois. -- In July 1993, the TDA provided a grant to Permnefteorgsintez (PERM) for hiring ABB Lummus Crest of Bloomfield, New Jersey, to conduct a feasibility study on modernizing the PERM Refinery. In this case, the U.S. company faced competition from Italian and German firms. As a result of the feasibility study, PERM chose to use U.S. technology to modernize two major process units and awarded major engineering contracts to Texaco Development Corporation and Lummus Crest. Lummus Crest expects to negotiate additional engineering contracts and to source much of the equipment and materials from the United States. For further information, contact: Ted Arnstein, TDA, 703- 875-4357. -- Through cooperative efforts of the U.S. Department of Commerce, OPIC, and TDA, a TDA feasibility study was awarded to the mayor's office of Cherepovets, Russia, in October 1993 for a housing project using expertise from a U.S. company, Delta Heights, and steel from the company's mill. As a result, several other potential commercial projects are being discussed with city representatives. -- A small, female-owned Minnesota company, Cornerstone International Group, has begun exporting commercial popcorn equipment and supplies to Russian entrepreneurs with marketing assistance from the U.S. Department of Agriculture (USDA) and the Commerce Department's Business Information Service for the Newly Independent States (BISNIS). Last year, it expanded operations to begin growing and processing U.S. hybrid popcorn in Russia. The first crop was harvested successfully in October 1993 outside Krasnodar. The company also has a pending request for agribusiness financing with USAID's Food Systems Restructuring Program. -- With BISNIS marketing assistance, a small U.S. company, Eagle Bear Associates, organized the establishment of American Farm Centers in several regions in Russia by forming a partnership with Chrysler Corporation, Emerson Electric, Grain Systems, Inc., and the National Steel Corporation. These centers will use U.S. technology, equipment, and management expertise to improve grain yields, storage methods, and repair facilities. They also will employ military personnel to construct low-cost housing and livestock shelters throughout Russia. For further information, contact: BISNIS, Commerce Department, 202-482-4655; Dan Stein, TDA, 703-875-4357. Private Sector Farms and Agribusiness. One of the largest components of U.S. technical assistance has been in agricultural and related agribusiness projects. About 800 U.S. volunteers in USAID's Farmer-to-Farmer Program are being placed in Russia during 1992-94. This program develops innovative, grassroots approaches to marketing, processing, distribution, storage, and credit problems facing Russian farmers and rural entrepreneurs. For example, -- Farmer-to-Farmer volunteers under the Tri-Valley Growers agribusiness grant from USAID arranged for the successful shipment of poultry breeding eggs to a new private hatchery at the Lobenko farm in the Sakhalin oblast of the Russian Far East. These volunteers provided training, identified and reduced risk factors, and initiated use of the incubation equipment. This effort led to the first competition faced by the state- owned poultry monopoly. The volunteers also recommended improved livestock production practices for cattle and swine that have resulted in increased efficiency. For further information, contact: John Fasullo, USAID, 703-351-0227. (###) ARTICLE 4 Fact Sheet: Safe and Secure Dismantlement of Nuclear Weapons in the New Independent States The U.S. Congress established the Nunn-Lugar program authorizing Department of Defense funds to be spent in the new independent states of the former Soviet Union for the non-proliferation and safe and secure dismantlement (SSD) of nuclear weapons. The Defense Department has notified Congress of intent to commit a total of $790 million (as of November 1993) in the form of 36 implementing agreements with Belarus, Kazakhstan, Russia, and Ukraine, and Congress has authorized additional funds. SSD assistance is an important tool in facilitating the denuclearization of Belarus, Kazakhstan, and Ukraine and the dismantlement of weapons in Russia. Preventing proliferation of weapons of mass destruction is another important goal; the U.S. will continue to use its assistance for this critical problem as well. Belarus. Following Belarus' ratification of the Strategic Arms Reduction Treaty and the nuclear Non- Proliferation Treaty, the U.S. offered $65 million in SSD assistance in addition to the $11 million provided by agreements already concluded. As a result, the U.S. signed agreements with Belarus in August 1993 on export control, environmental restoration, and defense conversion totaling $59 million and is continuing to explore with Belarus the best use of the remaining $6 million of the package. Kazakhstan. In December, the U.S. and Kazakhstan signed an umbrella agreement and implementing agreements on export control, government-to-government communication links, material controls and accounting, strategic nuclear delivery vehicle (SNDV) dismantlement, and emergency response for a total of $85 million. The two sides also signed a joint letter of intent that calls for a U.S.-led survey of the damage at the former nuclear test site near Semipalatinsk. The first meetings in this effort were held in November 1993. Russia. The U.S. has signed 11 agreements with Russia totaling $374 million in assistance. The two top priorities for this assistance have been strategic nuclear delivery vehicle dismantlement and construction of a storage facility for fissile material removed from dismantled weapons. Recent discussions have focused on concluding agreements on export control, as well as a chemical weapons destruction lab. Ukraine. Following the signing of the SSD umbrella agreement in October, the U.S. signed five implementing agreements with Ukraine in November and December: export control, government-to-government communication links, material controls and accounting, strategic nuclear delivery vehicle dismantlement, and emergency response. The SSD umbrella agreement recently entered into force through an exchange of diplomatic notes; assistance in specific project areas will begin soon. n SSD Projects by Country Obligations* ($ millions) RUSSIA Armored blankets 5.00 Railcar security 20.00 Emergency response 15.00 Material controls 10.00 Storage containers 50.00 Facility design 15.00 Facility support 75.00 Export controls 2.26 Science center 25.00 Chemical weapons 25.00 SNDV dismantlement 130.00 Military to military contacts 9.20 Arctic nuclear waste 10.00 Chemical demilitarization lab 30.00 Defense conversion 20.00 Subtotal 441.46 UKRAINE Emergency response 5.00 Communications 2.40 Export controls 2.26 Material controls 7.50 Science center 10.00 SNDV dismantlement 135.00 Military to military contacts 3.90 Reactor safety 11.00 Subtotal 177.06 BELARUS Emergency response 5.00 Export controls 16.26 Communications 2.30 Environmental restoration 25.00 (Project Peace) Defense conversion 20.00 SNDV dismantlement 6.00 Military to military contacts 1.50 Subtotal 76.06 KAZAKHSTAN Emergency response 5.00 Communications 2.30 Export controls 2.26 Material controls 5.00 Military to military contacts 0.40 SNDV dismantlement 70.00 Subtotal 84.96 GENERAL Support/assessment 10.00 TOTAL 789.54 *Proposed as of November 10, 1993. (###) ARTICLE 5 Fact Sheet: The Visegrad Group On February 15, 1991, the leaders of Poland, Czechoslovakia, and Hungary signed a declaration at a summit in Visegrad, Hungary, pledging cooperation on matters of common concern. Though never formally institutionalized in a permanent structure, that cooperation nevertheless has yielded results in ministerial consultations, cooperation on border issues, and, most notably, a regional free-trade agreement signed in 1992. The Visegrad partners have progressed significantly in the transformation to free-market economies and viable democracies. They have attracted considerable Western investment in the region and have seen significant growth in their respective private sector economies. This progress has not been trouble-free: Unemployment remains a problem, and some reforms, including those of banking systems and privatization of the largest state enterprises, still lie ahead. Following the January 1, 1993, dissolution of Czechoslovakia, both the Czech Republic and Slovakia became participants in the Visegrad group. The group also has become attractive to countries not currently part of it: Ukraine and Slovenia have expressed interest in closer association with Visegrad members. The Visegrad members also have formed the Central European Free Trade Agreement (CEFTA). It is intended to stimulate trade in Central Europe by lowering remaining tariff barriers among members as they open their markets to the European Union and the European Free Trade Agreement through associations and trade agreements. CEFTA's transitional trade provisions are being phased in from March 1993 through January 2001, when all non- agricultural tariffs and all non-tariff barriers will be eliminated. The U.S. has commended Visegrad and CEFTA as valuable initiatives in regional cooperation that might serve as models for others. The U.S. views such cooperation as enhancing the value of each of the participating states as a potential partner in broader European and transatlantic institutions. (###) ARTICLE 6 Country Profile: Czech Republic Geography Area: 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 mountains to the north and south, hills in the west. Climate: Temperate. People Nationality: Noun and adjective--Czech(s). Population (est.): 10.5 million. Annual growth rate: 0.1%. Ethnic groups: Czech (95%), German, Romany, Polish, Silesian, Slovak. Religions: Roman Catholic, Protestant. Language: Czech. Education: Literacy--99%. Health: Life expectancy--males 68 yrs., females 75 yrs. Work force (5.2 million): Industry, construction, and commerce--47%. Government and other services--41%. Agriculture--11%. Government Type: Parliamentary republic. Independence: The Czech Republic was established January 1, 1993 (former Czechoslovak state established 1918). Constitution: Signed December 16, 1992. Branches: Executive--president (chief of state), prime minister (head of government), cabinet. Legislative-- Chamber of Deputies (formerly the Czech 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 Democratic Party (CSSD), 16 seats; Liberal Social Union (LSU), 16 seats; Christian Democratic Union-Czech People's Party (KDU- CSL), 15 seats; Association for the Republic-Republican Party of the Czech Republic (SPR-RSC), 14 seats; Civic Democratic Alliance (ODA), 14 seats; Movement for Autonomous Democracy in Moravia and Silesia (HSDMS), 14 seats. Suffrage: Universal at 18. Administrative subdivisions: Two regions--Bohemia and Moravia; seven administrative districts and Prague. Flag: Blue triangle on staff side; upper white band, lower red band. Economy GDP (1993 est.): $30 billion. Nominal per capita income (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, sheet glass, motor vehicles, armaments, chemicals, ceramics, wood, paper products, footwear. Trade (1993 est.): Exports--$9 billion: machinery iron, steel, chemicals, raw materials, consumer goods. Imports--$10.6 billion: crude oil and petroleum products, chemicals, manufactured goods, food stuffs. Major markets/suppliers--Austria, Belgium, Common- wealth of Independent States, France, Germany, Hungary, Poland, Switzerland, United States. Exchange rate (January 1994): 30 Czech crowns=US$1. Principal Government Officials President--Vaclav Havel Prime Minister--Vaclav Klaus Foreign Minister--Josef Zieleniec Ambassador to the United States--Michael Zantovsky (###) ARTICLE 7 Country Profile: Hungary Geography Area: 93,000 sq. km. (36,000 sq. mi.); about the size of Indiana. Cities: Capital--Budapest (est. pop. 2 million). Other cities--Debrecen (220,000), Miskolc (208,000), Szeged (189,000), Pecs (183,000). Terrain: Much of Hungary is flat, with low mountains in the north and northeast and north of Lake Balaton. Climate: Temperate. People Nationality: Noun and adjective--Hungarian(s). Population (1991 est.): 10 million. Ethnic groups: Magyar 92%, Romany 3%. Religions: Roman Catholic 68%, Calvinist 20%, Lutheran 5%. Languages: Magyar 98%. Education: Years compulsory--to age 16. Attendance-- 96%. Literacy--99%. Health: Infant mortality rate--15/1,000. Life expectancy--males 67 yrs., females 75 yrs. Work force (5 million): Industry and commerce--49%. Services--27%. Agriculture--19%. Government--5%. Government Type: 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. Principal political parties: Hungarian Democratic Forum (center); Alliance of Free Democrats (center left); Independent Smallholders' Party (center right); Socialists (reform communists); Federation of Young Democrats (center left); Christian Democratic People's Party (center right). Administrative subdivisions: 19 counties plus capital region of Budapest. Flag: Three horizontal stripes--red, white, and green. Economy GDP (1992): $32 billion. Annual growth rate (1992): -4.5%. Per capita income (1992): $3,200. Natural resources: Fertile land, bauxite, brown coal. Agriculture/forestry (16% of GDP): Products--meat, corn, wheat, potatoes, sugar beets, vegetables, fruits, sunflower seeds. Arable land--51%, of which 71% is cultivated. Industry/construction (40% of GDP): Types--machinery, buses, and other transportation equipment; precision and measuring equipment; textiles; medical instruments; pharmaceuticals. Trade (1992): Exports--$10.7 billion: machinery, buses, and other transport equipment, medical instruments; pharmaceuticals; textiles, other consumer manufactures; agricultural products. Major markets--Germany, Austria, Slovakia, Italy, U.S., France, Commonwealth of Independent States. Imports--$11 billion: raw materials, energy, machinery, transport equipment. Major suppliers--Germany, Slovakia, Austria, Commonwealth of Independent States. Official exchange rate (1992): About 83 forints=US$1. Principal Government Officials President--Arpad Goncz Prime Minister--Peter Boross Foreign Minister--Geza Jeszenszky Ambassador to the United States--Pal Tar Ambassador to the United Nations--Andre Erdos (###) ARTICLE 8 Country Profile: Poland Geography Area: 312,680 sq. km. (120,725 sq. mi.); about the size of New Mexico. Cities: Capital--Warsaw (pop. 1.7 million). Other cities--Lodz (851,000), Krakow (744,000), Wroclaw (637,000), Poznan (586,000), Gdansk (461,000). Terrain: Flat plain, except mountains along southern border. Climate: Temperate continental. People Nationality: Noun--Pole(s). Adjective--Polish. Population: 38 million. Annual growth rate: 0.4%. Ethnic groups: Polish 99%, Ukrainian, Belorussian, Jewish. Religions: Roman Catholic 95%, Eastern Orthodox, Uniate, Protestant. Language: Polish. Education: Years compulsory--8. Attendance--97%. Literacy--98%. Health: Infant mortality rate--13/1,000. Life expectancy--males 68 yrs., females 77 yrs. Work force (17 million): Industry and construction--37%. Agriculture--28%. Trade, community services, transport, communications--18%. Government and other--17%. Government Type: Republic. Constitution: July 22, 1952 (as amended). Branches: Executive--head of state (president), head of government (prime minister), council of ministers (cabinet). Legislative--bicameral parliament: lower house--Sejm, upper house--Senate. Judicial--Supreme Court, provincial and local courts. Political parties: Poland held parliamentary elections in September 1993. Government formed by coalition of SLD and Polish Peasants Party. Suffrage: Universal at 18. Administrative subdivisions: 49 provinces (voivodships). Flag: Two equal-sized horizontal bands of white (upper) and red (lower). Economy GNP (1992 est.): $69 billion. Economic growth rate: 4%. Per capita GNP: $1,800. Natural resources: Coal, sulfur, copper, natural gas, silver, lead, salt. Agriculture: Products--grains, sugarbeets, potatoes, livestock, oilseed. Industry: Types--machine-building, iron and steel, extractive industries, chemicals, ship-building, food- processing, glass, beverages, textiles. Trade (1992): Exports--$16 billion: machinery and equipment, coal, minerals, metals. Major markets-- Germany, U.S., U.K., Switzerland. Imports--$15 billion: machinery and equipment, fuels, minerals, metals, agricultural and forestry products. Major suppliers-- Germany, Russia, U.S., U.K., Italy, Switzerland. Exchange rate: 21,000 zlotys=US$1. Principal Government Officials President--Lech Walesa Prime Minister--Waldemar Pawlak Foreign Minister--Andrzej Olechowski Ambassador to the United States--vacant Ambassador to the United Nations--Zbigniew M. Mlosowicz (###) ARTICLE 9 Country Profile: Slovakia Geography Area: 49,030 sq. km. Cities: Capital--Bratislava (pop. 445,100). Other cities--Kosice (237,000), Nitra (90,100), Presov (89,700). Terrain: High mountains to the north, low mountains in the center, hills to the west, Danube river basin in the south. Climate: Temperate. People Nationality: Noun and adjective--Slovak(s). Population: 5.3 million. Annual growth rate: 0.4%. Ethnic groups: Slovak 86%, Hungarian 11%, Romany 1.5%, Czech 1%, Ruthenian, Ukrainian, German, Moravian, Polish. Religions: Roman Catholic 60%, Protestant, others. Language: Slovak. Education: Literacy--99%. Health: Life expectancy--males 67 yrs., females 75 yrs. Work force ( 2.3 million): Industry, construction, commerce--61%. Government and other services--29%. Agriculture--9.5%. Government Type: Parliamentary republic. Independence: Slovakia was established on January 1, 1993 (former Czechoslovakia established in 1918). Constitution: September 3, 1992. Branches: Executive--president (chief of state), prime minister (head of government), cabinet. Legislative-- National Council of the Slovak Republic (150 seats). Judicial--Supreme Court, Constitutional Court. Political parties: Movement for a Democratic Slovakia (HZDS), 66 seats; Democratic Left Party (SDL), 28 seats; Christian Democratic Movement (KDH), 18 seats; Slovak National Party (SNS), 14 seats; Coalition of Hungarian Parties (Coexistence plus Hungarian Christian Democratic Movement (MKDH)), 14 seats; Alliance of Democrats (AD), 8 seats; independent deputies, 2 seats. Suffrage: Universal at 18. Administrative subdivisions: Three administrative districts and Bratislava. Flag: Three horizontal bands of white (upper), blue (middle), and red (lower), with heraldic insignia near staff consisting of double white cross on red field above blue base. Economy GDP (1992): $9.3 billion. Nominal per capita income (1992 est.): $1,900. Natural resources: Antimony, mercury, iron, copper, lead, zinc, magnesite, limestone, lignite. Agriculture: Products--milk, eggs, poultry, cattle, hogs, potatoes, oils, grains, vegetables. Industry: Types--iron and steel, chemicals, light industry, food processing, engineering, building materials. Trade (1993 est.): Exports--$5 billion: iron and steel, chemicals, plastics, nuclear power equipment, vehicles, textiles, oils, cement. Imports--$4.8 billion: crude oil and petroleum products, manufactured goods. Major markets/suppliers--Czech Republic, Germany, Austria, Russia, Hungary, Italy, Ukraine. Exchange rate (1993): 33 Slovak crowns (Sk)=US$1. Principal Government Officials President--Mihal Kovac Prime Minister--Vladimir Meciar Foreign Minister--Jozef Moravcik Ambassador to the United States-- Vacant (designee-- Branislav Lichardus) (###) END OF DISPATCH VOL 5, NO 1.
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