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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090017-8

accepted practices. Sweden remains virtually self sufficient in food production—no small accomplishment considering the harsh climate, poor soil, and amplitude of the Swedish diet.

Sweden's avoidance of hostilities in World War II and its policy of neutrality today have been secured—at least theoretically—by a very significant armaments industry. The "neutral porcupine" as the nation has been characterized, has not only developed a very efficient, albeit small, military force, but has also become one of the world's more significant producers of armaments. Professed moral inhibitions notwithstanding, A fair segment of the production is for export beyond the Nordic area. The Bofors Company, whose rapid-fire, exceptionally accurate antiaircraft guns were in demand by both sides during World War II, is today one of the largest private producers of big guns and powder in the world, while the SAAB-produced STOL jet fighters and reconnaissance aircraft are among the most sophisticated in the world. Because of the versatility of the SAAB design—one basic aircraft used for attack, reconnaissance, and interception—the production cost may be kept down, making the aircraft competitively priced on the world market. Other major Swedish firms with large domestic and foreign defense contracts are Volvo, Ericsson SKT Ball Bearings, and Kockums Shipyards. With defense imports confined to U.S. and U.K. ground-to-air and air-to-air missiles and some U.S. electronic equipment. Sweden is almost self-sufficient in providing itself with modern creditably defense armaments.

Sweden's avoidance of war has not only helped the steady cultivation of an armaments industry, with

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090017-8