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also permitted to transfer profits to a tax-free fund for equalizing market fluctuations in the business cycle. Another form of assistance to shipowners is the provision of state-guaranteed loans for new-ship construction.

In mid-1970, about 16,000 seafaring personnel were employed aboard Swedish merchant ships of 300 g.r.t. and over, including 6,000 foreign nationals. For many years the demand for workers ashore in highly industrialized Sweden has made it difficult to recruit native seafaring personnel. The large number of aliens employed on Swedish ships is attributed not only to the shortage of Swedish personnel but to superior wage rates.

Government-sponsored merchant marine schools provide training for officer cadets who must complete a period of practical shipboard experience prior to completing a variety of excellent courses. Swedish seamen are not required to have previous training and experience for unskilled jobs but are trained aboard ship. Swedish shipowners generally believe that quality rather than quantity is more important to manning their ships and thus are placing more emphasis on individual specialized and theoretical training to increase a seaman's competence for more qualified work.

Because of negotiation rather than imposition of law, there is an excellent relationship between shipowners and the Swedish maritime unions. Much shipowner success in reducing the number of employees is attributable to the understanding attitude and support of the maritime unions and organizations. Crew reduction has been accomplished primarily by introducing very specialized shore training, by improved planning and organization of work abroad ship, and by considerable changes made in manning structure.

H. Civil air (C)

Sweden's domestic civil aviation policies are designed to promote a balanced expansion of its internal air services in order to accommodate the growth in demand generated by the nation's expanding economy. These internal air links are especially significant in the northern areas where surface transportation is adversely affected by winter conditions. Because of its membership in the Scandinavian Airlines System (SAS) consortium with Denmark and Norway, Sweden pursues international aviation policies that are closely integrated with these two nations. These policies are aimed toward expanding SAS' worldwide services while insuring that the company remains the dominant carrier within Scandinavia.

As a result of the success of these policies, Sweden has excellent domestic and international scheduled passenger service. Two Swedish airlines serve 23 domestic points; daily high-frequency service links the major population centers.

SAS is the larger of the scheduled airlines and is the only one providing both domestic and international services. The Swedish participant in the SAS consortium is Aktiebolaget Aerotransport, a non-operating holding company owned jointly by the government and private interests. SAS serves 26 cities in Scandinavia, including seven in Sweden, and flies scheduled services worldwide to 90 cities in 46 countries. SAS operates through the U.S.S.R. from Stockholm via Moscow and Tashkent to the Far East. Flight operations are conducted with a fleet of 74 aircraft composed of two Boeing 747B's, six Douglas DC-8-63's, five Douglas DC-8-62's, three Douglas DC-8-62F's, 24 Douglas DC-9-40's, two Douglas DC-9-30F's, 10 Douglas DC-9-20's, 13 Aerospatiale Caravelles, and nine Convair 440/340's. Thirty of these aircraft are registered in Sweden; the remaining are registered in Denmark and Norway in accordance with the SAS consortium agreement. The SAS system employs about 14,300, in three countries, including 1,160 pilots, 80 navigators, and 3,700 maintenance and overhaul personnel.

SAS own 30% of Thai International, Thailand's international flag carrier, and has a 25% interest in Gronlandsfly A/S (Greenlandair), which provides domestic service within Greenland and performs coastal ice patrols. With its subsidiary, Scanair, SAS has entered the growing vacation charter market, and with another subsidiary, Linjeflug AB (LIN), SAS controls the Swedish domestic airline market. LIN serves 22 towns and cities in Sweden with a fleet of four Aerospatiale N-262's and 16 Convair CV 440/340's.

The general aviation sector of the Swedish civil aviation establishment is comprised of a large number of charter cargo and passenger and airwork companies. It is the fastest growing component of aviation because of the popularity of private flying and the necessity for developing specialized aviation enterprises to support the expansion of the domestic economy. For example, about 400 to 500 students per year are trained and receive private licenses, and the number of civil aircraft registered in Sweden is just under 1,000. Sweden has 19 operating charter companies; the largest of these are Scanair and Sterling Airways. Five large airwork companies perform various tasks such as aerial ambulance and mapping operations. Finally, some 130 gliding and flying clubs are active throughout the country.

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090023-1